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Credit Bureaus Reveal What Cardholders Must Know About

By Faye Mergel
Published: Tuesday, June 29th, 2010

5Credit Reports are the resume for future credit loan approvals. It is an excellent credit tool to determine whether a potential credit holder is capable of abiding with the credit terms or not. The three main credit bureaus – Equifax, TransUnion and Experian – have their say on credit card management. TransUnion laid down five simple to managing errors in credit reports. Get the facts.

Customer must know their own credit history. This will allow them to spot for errors and possible signs for identity theft. Right the wrongs. For the errors or identity theft symptoms, the customer must contact the bureaus to correct the inaccuracies. The credit bureaus are given 30 days to investigate the report and make the proper action to correct them. Identify problem areas. Managing the credit reports by knowing the problems area, make the customers aware of their weakness and how to strengthen them. Follow up. The credit must be checked again after 30 – 60 days for errors. Customers should make sure that they are already provided an accurate report. Monitor your credit. Credit cardholders must keep monitoring their credit history to ensure its health.

In an article by Robin Holland from Equifax, not learning to understand a credit report is a lifelong problem. Though all bureaus have been emphasizing the importance of checking credit reports regularly, many can’t have the urge to do so or if they do, they don’t know what those written information are all about. Holland states four Myths about Credit History.

 “The credit-reporting agency is responsible for my debt rejection.” The lenders also have their own set of criteria and do not base on the reports alone. It’s up to the customer to build a good credit history by paying on time and having a good mix of credit.

 “The credit-reporting agency put the negative information on my credit file.” It is the responsibility of the agencies to report all unbiased information regarding a person’s credit history.

 “My credit score is a part of my credit report.” Credit scores are not included in the report unless the customer avails of credit report and score product.

 “Credit-reporting agencies make the rules on how your credit history is reported and how long information stays on your credit report.” Agencies are not decision makers. They just compile and report information about the holders’ credit history.

Preventive measures must be part of the cardholder education. But what if the holders are already in the verge of financial failure? Experian advises on ways how cardholders can get help when they fall in debt: Contact your lenders.  Customers should inquire on the possibility of changing the rate and the payment schedules. Pay your bills on time. Customers must pay off overdue bills, unpaid debts or tax lien. Stop using credit until your finances are under control. Ask for Credit Counseling. Being an educated cardholder is important. The more the holder knows his credit history, the better he can take control of his finances.

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