Category: Credit Report

What Percentage of Young People (Age 18–24) Have Never Checked Their Credit Score? The Stats May Surprise You!

Posted on June 9, 2025 by - CREDIT BLOG, Credit Cards, Credit Report

What Percentage of Young People (Age 18–24) Have Never Checked Their Credit Score? The Stats May Surprise You!

A credit score can impact where you live, how much you pay for a car, and whether you get approved for a credit card, but nearly 4 in 10 young adults have never checked theirs. That’s not a small oversight. It’s a blind spot that can cost real money. If you’re in that 18–24 age range, this is your chance to get ahead. The sooner you understand your credit, the easier it is to shape it, and protect your future from expensive surprises. In this guide, we’re breaking down what percentage of young people (age 18–24) have never checked their credit score, why that matters, and what to do if you’re one of them.

Percentage of Young People (age 18–24) Have Never Checked their Credit Score

What Percentage of Young People (Age 18–24) Have Never Checked Their Credit Score?

According to a recent study by LendingTree, a whopping 40% of Gen Z adults (ages 18–24) have never checked their credit score. That’s a staggering number, especially when you consider how much your credit score affects your everyday life. From renting an apartment to qualifying for a credit card, buying a car, or even landing a job, your credit score plays a big role in the direction of your life. Yet millions of young adults are in the dark when it comes to this crucial three-digit number.

Why Young People Avoid Checking Their Credit Score

There are a few common reasons young people (ages 18-24) avoid checking their credit:

  • Lack of education. Credit isn’t always taught in school, and many people don’t understand how it works until there’s a problem.
  • Fear. Some worry they’ll discover bad news—like a low score or a forgotten bill in collections.
  • Assumption. Many assume they’re too young to have a credit history worth checking.
  • Access. Some simply don’t know where to go to check it for free.

But here’s the truth: you can’t fix what you don’t understand. And the earlier you start building credit awareness, the more power you have to shape your financial future.

Learn the Rules of Credit

Why Your Credit Score Matters, Even in Your 20s

Even if a mortgage is years away, your credit score still affects your life right now … and the banks would rather you not figure that out. Why? Because the worse your credit, the more money they make off you through high interest rates, fees, and deposits.

Here’s how your credit score shows up in real life:

    • The chance to get ahead:With excellent credit, you can qualify for rewards cards that earn you miles, points, and perks. Use them on your everyday spending (e.g., groceries, gas, takeout), and the perks will pile up.
    • Rental applications:Landlords check credit to decide if you’re a reliable tenant.
    • Vacations:Want to book a flight, rent a car, or grab a last-minute Airbnb without draining your savings? A solid score gives you access to credit cards that can help finance travel.
    • Job opportunities:Some employers review credit reports, especially for roles in finance, security, or leadership.
    • Auto loans:A strong score can save you thousands in interest over the life of a loan.
    • Cell phone plans and utilities:Companies may require a credit check or a hefty deposit.
    • Emergencies:A healthy score gives you access to credit when life hits unexpectedly.
The bottom line?
The less you know, the more they profit.
But when you understand how credit works, you flip the power dynamic and unlock a lot more freedom.

What Happens If You’ve Never Had Credit?

Another surprising stat: around 15% of young adults are “credit invisible,” meaning they have no credit history at all. That might sound better than having a low score, but in reality, no credit is just as damaging as poor credit.

This is because lenders need evidence that you can manage debt, and if you have no credit, lenders can’t assess your risk. They will think: Better safe than sorry, and they will deny your application outright.

That’s why it’s essential to start building a healthy credit file early.

But first …

How Can You Check Your Credit Score (for Free):

Curious where you stand? Here are a few ways to check your score without spending a dime:

  • Credit card company: Many credit cards offer free access to your FICO or VantageScore as a perk. Just keep in mind that there’s no single “official” score. You actually have dozens, based on different formulas (though most lenders use FICO).
  • Bank account dashboard: Some banks and credit unions show your credit score right on their website or mobile app.
  • com: You can get a free copy of your credit report (not your score) from each of the three bureaus every week.
  • Credit monitoring tools: Free apps like Credit Karma or Experian Boost give you regular score updates, tips, and insights to help you stay on track.

What percentage of young people (Age 18–24) have never checked their credit score? A whopping 40 percent!

How to Start Building Your Credit Score

If you’ve never checked your credit score, or don’t have one yet, don’t panic. Everyone starts somewhere. These three steps will help you build credit the right way and set yourself up for long-term success:

  1. Get a Secured Card or Become an Authorized User
    A secured credit card works just like a regular credit card, but it requires a small deposit (usually a few hundred dollars) that acts as your credit limit. Because that deposit protects the lender, these cards are much easier to qualify for, even if you have no credit history.

Just remember: the deposit doesn’t pay your bill. You still have to make payments on time. If you’re late and the deposit gets used to cover what you owe, it will hurt your credit. So use it for small, regular purchases (like gas or groceries) and pay it off in full each month.

Another simple option? Become an authorized user on someone else’s credit card. This is one of the easiest and risk free ways of building your credit score. If a parent, sibling, or trusted friend adds you to an account in good standing, their history of on-time payments and low balances can give your score a boost, even if you never use the card.

Pro tip: If someone’s nervous about adding you, let them know they don’t have to give you a card at all. You’re just riding along for the credit-building benefit. And if their account ever goes delinquent, you can cancel the arrangement and your score will revert. Easy, low-risk, and super effective.
  1. Get the Credit Rebuilder Program
    If you want a shortcut to building positive credit, the Credit Rebuilder Program is designed to give you structure, guidance, and results. It’s especially helpful if you’re starting from scratch.

Here’s how it works: You make a small monthly payment ($39), and that payment gets reported to all three credit bureaus as an installment account. That means you’re building credit history just by enrolling. The program is built for people recovering from financial hardship, but it is also a great tool for young people. 100 percent of people are approved, and it has the same positive impact on your credit score as an auto loan..

You’ll also get access to:

  • The 7 Steps to a 720 Credit Score (keep reading for the details!)
  • Legal tools to help fix errors or unfair marks on your credit report
  • Ongoing support, even if you’re starting from zero.

This is one of the only programs out there that doesn’t require a credit check and still helps you move forward. Whether you’re rebuilding or just starting out, it’s a smart move that delivers real results.

3. Follow the 7 Steps to a 720 Credit Score

The 7 Steps to a 720 Credit Score is a credit-education program that’s included with the Credit Rebuilder Program. It’s not about disputing everything on your credit report or looking for loopholes. Instead, it teaches you the exact patterns of behavior that banks and credit bureaus reward so you can build a credit score that opens doors.

Because here’s the deal: the banks profit when you don’t know how the system works. They make money off people with low credit scores through high interest rates, fees, and penalties. The less you know, the more they earn.

You’ll learn things like:

  •  How to manage your “credit utilization”
  • What you should do if you are married
  • Which types of credit to open (and when)
  • How to avoid common mistakes that quietly drag down your score
  • How to build a score that makes you look creditworthy—even if you’ve had financial setbacks

These are the same rules lenders use to judge your worthiness, but they’re not exactly shouting them from the rooftops. We are. And the best part? Once you know how the system works, it’s not that hard to win at it.

Final Thoughts

So, what percentage of young people (age 18–24) have never checked their credit score? Close to 40%, but that doesn’t have to include you.

Checking your score is free, safe, and one of the smartest financial decisions you can make in your 20s. It’s the first step toward building a solid foundation and avoiding costly surprises down the road.

And if you’re not sure where to start, the Credit Rebuilder Program can help you take the guesswork out of growing your credit with confidence.

Enroll in the Credit Rebuilder Program

How Do Loan Terms Affect the Cost of Credit?

Posted on June 3, 2025 by - CREDIT BLOG, Credit Cards, Credit Report, Credit Score

How Do Loan Terms Affect the Cost of Credit

When you take out a loan, it can be easy to focus on one number: the monthly payment. But there’s a much bigger question to ask: How do loan terms affect the cost of credit? 

A loan term is the amount of time you agree to repay the debt. It can range from a few months (like a payday loan or personal loan) to 30 years (like a mortgage). And while longer terms often mean smaller monthly payments, they can also cost you far more in the long run.

So in this article, we’re going to walk through how loan terms affect the cost of credit—and how you can make smart choices to protect your wallet and your credit score.

The Basics: What Is a Loan Term?

A loan term is simply the agreed-upon time period you have to repay a loan. Common loan terms include:

  • Auto loans: 36 to 84 months
  • Personal loans: 12 to 60 months
  • Mortgages: 15 to 30 years
  • Student loans: 10 to 30 years

The longer the loan term, the lower your monthly payment tends to be. But that doesn’t mean it’s cheaper. In fact, that extended timeline can cause the total cost of credit to balloon.

Let’s look at why.

Interest Over Time: The Longer You Borrow, the More You Pay

When you borrow money, you pay interest—which is the cost of using someone else’s money. Even if you have a low interest rate, the longer the loan term, the more months you’re paying that interest.

For example, imagine you borrow $10,000 at a 6% interest rate:

  • On a 3-year loan, your total interest might be around $950.
  • On a 5-year loan, your total interest might jump to $1,600.

Same loan amount. Same rate. But a longer term means you pay significantly more over time.

So when asking, How do loan terms affect the cost of credit?, one of the biggest answers is this: loan term determine how much interest accrues.

The Psychological Trap of Smaller Payments

Lenders often advertise lower monthly payments to make loans feel more affordable. And yes, those smaller payments might fit better into your monthly budget. But they also keep you in debt longer.

These long loan terms are like stretching out the pain instead of dealing with it upfront.

Let’s say you’re offered two options for a $20,000 car loan:

  • A 36-month term at $608/month
  • A 72-month term at $340/month

That $268/month difference sure makes the 72-month option tempting, doesn’t it! But you’ll end up paying thousands more in interest over the life of the longer loan. Plus, you’ll spend six years paying for a car that might not even last that long.

So how do loan terms affect the cost of credit? Loan terms can tempt you into longer, more expensive obligations with seemingly “affordable” payments.

Evaluating Bankruptcy: Is It the Right Choice for You?

Real-Life Example: The Mortgage Trade-Off

Mortgages are the most common example of long-term loans, and they illustrate this concept perfectly.

  • A 30-year mortgage comes with lower monthly payments, but you might pay over $100,000 more in interest compared to a 15-year mortgage.
  • A 15-year mortgage has higher payments but builds equity faster and saves a huge amount in interest.

Again, this is why understanding how loan terms affect the cost of credit is so important. You don’t just want a payment you can afford today—you want a financial future you can grow into.

Loan Terms and Your Credit Score

Now let’s talk about how loan terms affect your credit score—because that’s part of the cost of credit too, and it’s what our credit-education course and the Credit Rebuilder Program focus on.

Your credit score is based on several factors, including:

  • Payment history
  • Credit mix
  • Length of credit history
  • New credit inquiries
  • Amounts owed (aka utilization)

A longer loan term might seem like a good idea for keeping your credit score stable, especially if it helps you avoid missing payments. And that’s true to a point: on-time payments over time do help your score.

But a long-term loan can also make it harder to reduce your overall debt load. Because the repayment period is extended, you end up paying more in interest over time, which means you’re spending more money without significantly lowering the principal. That can trap you in a cycle of slow progress. And if you fall behind later, the impact on your credit will be even greater—because larger balances carry more weight.

Here’s why that matters: credit utilization (how much of your available credit you’re using) is one of the most important factors in your credit score. High balances can push your utilization rate above the recommended 30% threshold, signaling to lenders that you may be financially overextended. So if a long-term loan keeps your balances high, even with on-time payments, your score may still suffer. And if you start missing payments on top of that, the damage can compound quickly.

Prepayment: Can You Pay Off a Loan Early?

One way to offset the cost of longer loan terms is to pay the loan off early. But here’s the catch: not all lenders allow it without penalty.

Some loans come with prepayment penalties that charge you for paying ahead of schedule. Why? Because early payoff means less interest income for the lender.

Never forget this: banks and lenders aren’t in the business of helping you reach your dreams—they’re in the business of making money off of you. Every interest charge, every late fee, every penalty is designed to take money out of your pocket and put it into theirs. That’s their business model.

So before you accept a longer loan term thinking you’ll just pay it off sooner, ask the lender: is there a penalty for early payment? If so, you might end up paying more than you planned—even if you do everything right.

Flexibility vs. Friction: Choosing the Right Term for You

There isn’t one right answer when it comes to loan terms. Sometimes a longer term is necessary to make a payment fit your budget. And in those cases, it might be a helpful tool.

But the more important question is: Do you know what it’s costing you?

When you understand how loan terms affect the cost of credit, you’re in a better position to:

  • Compare total interest costs
  • Decide if a shorter term (with higher payments) is worth it
  • Consider refinancing or early payoff
  • Avoid hidden fees or prepayment penalties

How to Choose the Right Loan Term

Here are a few guidelines to help you make a smart decision:

  1. Use a loan calculator. Plug in different terms and see how much interest you’ll pay overall.
  2. Choose the shortest term you can comfortably afford. This helps minimize total interest.
  3. Look for prepayment flexibility. Even if you choose a longer term, the ability to pay more when you can gives you control.
  4. Don’t forget to factor in your financial goals. If you’re planning to buy a house or start a business soon, minimizing long-term debt matters.

What If You’re Already Stuck in a Long-Term Loan?

If you’ve already taken out a long-term loan and regret the terms, don’t panic. You have options:

  • Refinance: Look into shorter terms or lower interest rates.
  • Make extra payments: Even $50/month toward the principal can save you thousands.
  • Call your lender: Ask if there are any programs to reduce your interest rate or term.

And if the debt has become unmanageable, it might be time to speak with a debt professional. We help people understand all their options, including whether they should explore reset strategies and debt-reduction options.

The Bottom Line

So, how do loan terms affect the cost of credit?

They impact how much interest you pay, how long you stay in debt, and how much financial flexibility you have going forward. Shorter terms usually cost less in the long run—but you have to balance that with what you can afford today.

The goal isn’t just to get approved. It’s to make decisions that support your future, not sabotage it.

Get Credit Report and Check for Costly Mistakes

Posted on April 14, 2025 by - Credit Report

Get Credit Report and Check for Costly Mistakes

Your credit report is like a financial report card—it tells lenders, landlords, and even potential employers how responsible you are with money. But here’s the thing: you should be checking it regularly too. Whether you’re applying for a loan, renting an apartment, or just staying ahead of identity theft, knowing how to get and interpret your credit report is a must. Let’s break down everything you need to know.

To boost your score quickly, be sure to check out the Credit Rebuilder Program. You’ll get free access to our credit-education program, 7 Steps to a 720 Credit Score, and you’ll start to see your credit score improve in about six months. 

What Is a Credit Report and Why Should You Get Yours?

A credit report is a detailed snapshot of your financial behavior. It includes information like:

  • Loans and credit cards: Every account you’ve opened, along with balances, credit limits, and your payment history, showing how consistently you pay your bills.
  • Public records: Bankruptcies, foreclosures, or tax liens (if applicable), which can significantly impact your credit standing.
  • Inquiries: A list of who’s checked your credit recently, such as lenders, landlords, or credit card companies.

This report is used by banks, landlords, and even some employers to decide if you’re trustworthy. Errors or signs of fraud on your report could lead to higher interest rates, rejected applications, or missed job opportunities.

Why check it yourself?

  • Spot mistakes: A 2021 FTC study found that nearly 1 in 5 people had at least one error on their credit reports, potentially affecting their financial standing. If you have had a financial meltdown like bankruptcy, it’s more like 2 in 5 people. 
  • Catch identity theft: Unfamiliar accounts or inquiries could be signs that someone has stolen your information and is misusing it.
  • Prepare for big financial moves: Fixing errors before applying for a mortgage, car loan, or new credit card can save you money and increase approval chances.

The good news? Thanks to federal law, you can now access your credit report for free every week from all three major bureaus—Equifax, Experian, and TransUnion. No more waiting a year between checks!

How to Get Your Credit Report for Free

How to Get Your Credit Report for Free

Gone are the days of paying to see your credit history. Here’s how to get yours without spending a dime:

  1. Use AnnualCreditReport.com
    This is the only government-authorized site for free credit reports. To access your report, you’ll need to verify your identity by providing your Social Security number, birthdate, and address. Once verified, you can choose which credit bureau’s report you want or download all three at once.
  2. Visit the Bureaus Directly
    Each bureau also offers free weekly reports through their websites:

Pro tip: Space out your requests. For example, check one bureau’s report every month to monitor your credit year-round without hitting weekly limits.

Watch out for scams! Avoid sites like FreeCreditReport.com (they upsell subscriptions) or third-party apps that ask for payment. Stick to the official sources above.

Understanding What’s in Your Credit Report

Credit reports can feel overwhelming, but they’re easier to navigate once you know what to look for. Here’s a breakdown:

Personal Information

Your name, address, Social Security number, and other identifying details should all be correct. Even a minor typo can cause your report to be mixed with someone else’s, leading to inaccurate data affecting your creditworthiness.

Credit Accounts

  • Open/closed accounts: Ensure that all accounts listed under your name are accurate and that any closed accounts are properly marked.
  • Payment history: Late payments can stay on your report for up to seven years. If you see any incorrect late payment marks, dispute them as soon as possible.
  • Credit utilization: The ratio of your outstanding balances to your total available credit plays a big role in your score. Keeping this number low can improve your credit standing.

Public Records and Inquiries

  • Bankruptcies or liens: These negative marks can stay on your credit report for seven to ten years, impacting your ability to obtain credit.
  • Hard vs. soft inquiries: A hard inquiry occurs when you apply for a loan or credit card, and too many in a short period can lower your score. Soft inquiries, like checking your own credit, do not affect your score.

To boost your score quickly, be sure to check out the Credit Rebuilder Program. You’ll get free access to our credit-education program, 7 Steps to a 720 Credit Score, and you’ll start to see your credit score improve in about six months. 

Keeping Your Credit Report Accurate and Secure

Keeping Your Credit Report Accurate and Secure

Finding an error? Don’t panic—but act fast. Here’s how to fix mistakes and protect yourself:

Step 1: Dispute Errors

  • Contact the credit bureau (Equifax, Experian, or TransUnion) online, by phone, or by mail.
  • Include proof: Send copies (never originals) of supporting documents like bank statements, payment receipts, or identity theft reports.
  • Follow up: Credit bureaus have 30–45 days to investigate your claim. If they cannot verify the information, they are required to remove it.

Step 2: Guard Against Identity Theft

  • Freeze your credit: This prevents new accounts from being opened in your name until you choose to lift the freeze.
  • Set fraud alerts: Credit bureaus will flag your report, requiring extra identity verification before any new credit is issued.

Common red flags to watch for:

Common red flags to watch for include accounts that you don’t remember opening, payments incorrectly marked as late when you actually paid on time, and unfamiliar addresses or employers listed on your report.

Bonus tip: Use the free weekly reports to your advantage. Regular checks make it easier to catch issues before they spiral.

For guidance on disputing errors, check out the 7 Steps to a 720 Credit Score, free when you join the Credit Rebuilder Program.

Final Thoughts

Getting your credit report isn’t just for loan applications—it’s a habit that keeps your financial life on track. With free weekly access now available, there’s no excuse not to stay informed. Remember: Your credit health impacts everything from your mortgage rate to your job prospects. By understanding your report, disputing errors, and monitoring for fraud, you’re not just protecting your score—you’re safeguarding your future.

So go ahead: Pull your report today. It’s easier than you think, and it might just save you thousands down the road

Removing a Bankruptcy From Your Credit Report

Posted on May 5, 2017 by - Bankruptcy, Credit Report

I host Question & Answer sessions for students who need help rebuilding their credit score. Removing a bankruptcy from a credit report and rebuilding credit after a bankruptcy are both frequently asked questions on these calls.
Below is one of the many questions I received and my response.
Question: Can you give me the specifics on how to remove a bankruptcy from my credit report?
Answer: Forget all you’ve heard about how to remove a bankruptcy from your credit report because I have a very different approach to this topic.
First of all, I assume your bankruptcy is legitimate. You, not someone else, are responsible for it. This simply means you are not a victim of identity theft and the bankruptcy on your credit report is legitimately yours.
With that assumption, here is my answer: You cannot get it removed and you should not worry about getting it removed. Wait! Before getting discouraged and losing hope, let me explain my approach to handling bankruptcies.
It isn’t necessary to remove a bankruptcy from your credit report. Yes, that’s right. Even though a bankruptcy is on your credit report, it will not prevent you from reestablishing your credit after bankruptcy.  Don’t believe the statement that your credit is ruined for seven years. You can have a 720 Credit Score in just two years after the bankruptcy.
Don’t search for someone to help you remove a bankruptcy from your credit report. Many people and/or organizations will say they can help you remove a bankruptcy for a fee. Don’t believe them! They will tell you they can remove a bankruptcy from your credit report and may offer a “100% money back guarantee.” The truth is that you won’t be able to get your money back. There are no legal ways to remove a legitimate bankruptcy from your credit report. Save your money and avoid these scams.
Removing a legitimate bankruptcy from your credit report is illegal! According to the FTC, it is illegal to get an item off your credit report that is correct.
Here is the one simple solution that works every time: Reestablish your credit after a bankruptcy the same way you established credit the first time.  Start now, don’t delay.
Learning to rebuild credit is simple, just keep in mind that it’s going to take you between 12-24 months to get a credit score over 720, assuming you do it the right way.  The biggest mistake people make is wiping their hands of all credit. Never do that because no credit is just as bad as bad credit.
Please check out my free ebook: “Rebuilding Your Life After Bankruptcy… It’s Easier Than You Think” You will learn a lot of very valuable information.

Correct Errors To Rebuild Your Credit Score

Posted on May 5, 2016 by - Credit Report, Credit Score, CREDIT SCORING

The first step to rebuilding your credit is getting a copy of your credit report. Yes, I know that’s an extremely simple first step, but it is an essential one. When rebuilding your credit, it is wise to review your credit report at least once every six months. If your credit score is low, you may want to pull your credit report quarterly. This won’t negatively affect your credit score. After getting your credit report, look for errors. If there aren’t any, good! You can now focus on rebuilding your credit score. If there are errors address them immediately if they are severe. In Step Five of my program, I explain that almost 80 percent of people have errors on their credit report, and 25 percent of these errors are severe enough to cause a person to lose a loan or a job opportunity. This is one reason it is essential to know what’s on your credit report. When finding an error on your credit report, what should you do? First and foremost, if you think you are a victim of identity theft, call the three credit bureaus right away to put a freeze on your credit account. This way, no one else can open credit in your name. If the mistake doesn’t seem to indicate you are a victim of identity theft, you can start by filing an online dispute at each of the three credit bureaus. Following are the three credit bureau links:

If a bank or credit card company is responsible for incorrect information on your credit report, contact them. Ask them to investigate the mistake they reported to the credit bureaus. Make sure you have documentation to support your statements. One of the most common (and dangerous) errors you will find is an inaccurate credit limit. So why does an inaccurate credit limit hurt your credit score? The credit-scoring agencies give higher credit scores to people with lower utilization rates (your credit card balance as a percentage of your limit.) If your limit is, for instance, $2,000, and your balance is $600, you have a utilization rate of 30 percent. Maintaining a 30 percent utilization rate is good. It should improve your credit score. If your credit card company is reporting your limit as $1,000 instead of $2,000, this is an error. Your utilization rate will appear to be 60 percent (a $600 balance on a $1,000 limit). This is a bad utilization rate because it may seem that you rely on credit. This will cause your credit score to drop. Notify the credit bureaus of the error on your credit limit by filing a dispute with all three credit bureaus. At the same time, place a call or send a letter to your credit card company demanding they report your correct limit. Correcting errors help rebuild your credit score. After all major errors are corrected, get another copy of your credit report to verify it is error-free. If it is, focus on rebuilding your credit to increase your credit score. FYI: Your credit score will not decrease if you get a copy of your credit report. Inquiries into your credit score by lenders will cause a dent in your score, but you are not penalized for getting your own credit report. This is considered responsible financial behavior. Therefore, get your credit report as often as you desire to check for errors and/or to rebuild your credit score.

How to Remove a Bankruptcy From Your Credit Report

Posted on October 18, 2013 by - Bankruptcy, Credit Report

One of my readers recently asked me if there was a way to get her bankruptcy removed from her credit report.
The answer is that no, there isn’t. At least not legally. But beyond that, there’s a deeper issue at play here. A lot of people worry about their credit scores and their credit reports. They worry about past delinquencies. They worry about their public records. They spend countless hours trying to get information removed from their credit reports.
My advice: You are worrying about the wrong thing.
You see, items that are older than two years—even major items like a bankruptcy—don’t matter nearly as much as the behavior you have taken in the past two years. A lot of credit “repair” companies have their clients spend hours and hours of their lives trying to suppress every single derogatory item on a credit report.
I don’t agree with that strategy. First off, it’s illegal. The Federal Trade Commission itself says, “No one can remove accurate negative information from your credit file. It’s illegal.”
Second of all, even if you do somehow manage to skirt the system and get negative information suppressed, it will rear its ugly head later on down the line. And in the future, the credit bureaus will be unlikely to spend their time helping you remove any true errors from your credit report.
My third point is that it’s just not where you should be spending your time. I know how attractive it is to think that you can erase your past, but you can’t. And if you spend your time trying to cover up the past, you will waste invaluable time living in the present and creating a better future.
There’s only one solution: Learn how to build credit. Educate yourself so that you have the tools to have a great score for life. Learn from your past, but don’t focus on what happened yesterday.

The Faces of Identity Theft

Posted on September 26, 2013 by - Credit Report

About 80 percent of people have errors on their credit reports, and many of these are a result of identity theft. Identity theft can be a devastating event that gets in the way of learning how to build credit. Once a thief acquires your personal information s/he can quickly suck your account dry or steal your identity, resulting in not only a tremendous financial loss but a considerable outlay of time to put your affairs back in order.
Now, more than ever, you have to be careful about leaving any scrap of personal information available to scheming identity thieves. Take safeguards to avoid leaving yourself open to identity theft, and be aware of the many ways identity theft might occur.
Dumpster diving. One of the more common forms of identity theft is when thieves find pieces of personal information is to rummage through a victim’s rubbish. For example, the credit card offers that you discard without a thought might be used by a dumpster diver to set up credit accounts in your name. Bank account statements that have your credit card number or bank account might even be used to purchase items online or over the phone. To prevent this, purchase a shredder and use it on anything with your personal information.
Open-access mailboxes. If you have a mailbox that is not secured or is a community mailbox, beware of identity thieves snatching your mail and setting up bogus accounts in your name. If you’re going to be away on vacation, protect yourself from identity theft by asking the post office to put your mail on hold so no one can grab it.
Pickpockets and purse-snatchers. Make sure you never leave your purse or bag unattended. Having access to your credit card and driver’s license is an identity thief’s dream. For that reason, never, ever carry your Social Security card in your wallet.
Phishers and Phreakers. Be especially wary of phishers and phreakers, the newest form of identity theft. Phreakers are people who search for personal information by eavesdropping on telephone calls.  Phishers send cleverly disguised emails that ask you to provide personal account information. Using anti-virus software and a firewall is a good way to cut down on malignant attempts by criminals to access your information. Do not share your password with anybody and change it often to decrease the possibility someone may hack into your computer. Also watch out for spyware, which is often installed on your computer without your consent. It can monitor your computer for personal information, such as credit card numbers.
Keep a close lid on your Social Security number. This is your most sensitive personal information, and when an identity thief gets your Social Security number, s/he can easily steal your identity. Do not give out your number unless you started the call and can confirm the identity of the person/company you are calling.
Always keep track of your credit report. Regularly checking your credit report is the best weapon you have against identity theft. Request copies of your credit report at least four times a year. You can get a free annual credit report once a year, but remember, never buy your credit score from www.annualcreditreport.com. If you believe you are a victim of identity theft, you can start by placing a freeze on your credit report. Contact the three credit-scoring bureaus (here, here, and here) to request this credit freeze. Then make a police report, and submit this, along with all other evidence, to the credit-scoring bureaus.
If the credit-bureaus refuse to correct the errors on your credit report, fight back by hiring an attorney.

How to Fight a Collection Report

Posted on November 30, 2012 by - CREDIT BLOG, Credit Report

This letter asking for information about how to fight a collection account just came into my inbox:
“I am currently fighting a collection agency who suspiciously has me owing over $1,000 to a hospital that I have never heard about, and that is no longer in existence. The collection agency’s report states that I had a dog bite and visited the emergency room.”
My student went on to say that the collection company could not link his Social Security number or current address to the bill, and so the collection agency asked my student to send a letter to dispute the matter.
You know, to clear things up …
So my student sent a letter letting the collection agency know his SSN, his address, and his current employer. Guess what collection company did? It took the information from the letter and entered it into the database, linking my student’s Social Security number, address, and current employer to the bill.
That’s right: My student was trying to correct an error, and the collection agency used this information to make the error even worse! Boy does this have me steamed!
If a creditor or collection agency ever mistreats you, fight back! The Fair Credit Reporting Act is a set of laws that protects consumers from creditors and credit bureaus that is incorrectly reporting information.Under this act, you have the right to dispute any item on your credit report that you believe is wrong. And credit agencies must respond to your dispute.
Here are the steps you can follow to fight a collection report.
1) Upon identifying an error, send a “dispute letter” detailing the items listed incorrectly in your credit report. Since my student is dealing with a dishonest collection company, I suggest that he approach the credit bureaus directly.
The first letter should state, very simply, “I am writing to request that you remove information from my credit report. The information does not belong to me.
“Following are the details: [Insert the details of the mistaken account, and include a copy of your credit report with the incorrect account highlighted].
“Please investigate this claim and remove the inaccurate information from my credit report.”
2) Upon receiving the dispute letter, the bureau will contact the creditor and ask it to verify that the item in question is correct.
3) Expect a written response from the bureau within 30 days. The response will either provide the results of the investigation, or it will request more information from you, in which case it will have another 15 days to complete the investigation.
4) If you do not hear back within 30 days, fill out this form, which will help you fight back and protect your rights under the Fair Credit Reporting Act.
5) If the agency determines that the dispute is valid, or if it cannot verify the disputed item’s accuracy, it is required by law to remove (permanently or temporarily) the item you are disputing. Unless the agency receive information validating the account’s accuracy, the information should not reappear on your credit report.
6) Be sure to keep great records. Send letters via certified mail, return receipt requested. And pull your credit report a few months after the dispute has been resolved to make sure that the inaccurate information doesn’t make its way back onto your credit report.
Hope this helps. If you have more questions about how to fight a collection account, be sure to leave a comment below.