Protect yourself (and save money)

We’ve probably all seen the TV commercials with a guy singing about how he should have gotten his free credit report.  Of course, that particular site may eventually cost you some money if you end up signing up for their service, but there are a number of other free sites that will provide you with the copies of the information various financial institutions have stored in their databases on you.  All of the sites mentioned in this post are governed by the Fair Credit Reporting Act (FCRA) and thus allow you to get a copy of your report once a year.  You can also dispute incorrect data within your report by following the process specified on each site.

And correcting these reports can save you money, since adverse information may cause insurance companies to charge you higher rates (or not offer you coverage at all), could stop a landlord from renting you an apartment, or could even cause you to not be offered a job.

Here are some of the various organizations that are covered by FCRA and the websites or phone numbers that you can access to get a copy of your information (including financial, banking, public records, medical related, and insurance).

• www.annualcreditreport.com or 877-322-8228 – The authorized site and phone number for obtaining one copy per year of your credit report from each of the big three credit bureaus.  One suggestion, get one copy of your report from a single one of the three bureaus every 4 months.  That way you can always keep relatively current tabs on your credit report.
• www.choicetrust.com – Information on how to obtain a CLUE (Comprehensive Loss Underwriting Exchange) report from ChoicePoint.  Contains claims information reported by insurers.  Too many claims, and your homeowners insurance may be more expensive or even difficult to get.  If you are considering buying a home, ask the seller to obtain the property’s loss-history report for you.
• 800-627-3487 – A-PLUS report, sold by the Insurance Services Office, contains information reported by most insurerers to the Automobile Property Loss Underwriting Service.
• 866-692-6901 – Order your MIB report, which contains information from about 470 US and Canadian life, health, disability income, critical illness, and long term care insurers, including medical conditions reported on individual (not group) insurance applications, as well as test results from medical underwriting exams.  You actual medical records are not reported.
• 877-211-4816 – Order your IntelliScript report which contains information about the perscription drugs you’ve used over the last five years, including dosage, refills, and prescribing doctors.
• 888-206-0335 – Order your MedPoint report which contains information about the perscription drugs you’ve used over the last five years, including dosage, refills, and prescribing doctors.
• www.consumerdebit.com – Click on “Order Consumer Report” to obtain your Chex Systems report, which contains information on mishandled checking accounts, including information about overdrafts and accounts closed by a bank, including information including your driver’s license number, unpaid amounts, and who wasn’t paid, plus information concerning if the party was finally paid back.
• www.firstdata.com/support/telecheck_home.htm – Click on “TeleCheck Consumer Assistance” to get your TeleCheck report, which contains information on mishandled checking accounts, including information about overdrafts and accounts closed by a bank, including information including your driver’s license number, unpaid amounts, and who wasn’t paid, plus information concerning if the party was finally paid back.
• www.choicepoint.com – Click on “Access to Your Personal Information” to see the information this database has on you, including auto and homeowner CLUE reports, pre-employment background checks, an “Esteem” report if you ever admitted to or were convicting of shoplifting, eviction and public-records search results, as well as national criminal search results.
• www.lexisnexis.com/privacy/for-consumers/request-personal-information.aspx – LexisNexis Person reports, which includes non-public and publicly availalable information on all sorts of things.
• www.fadvsaferent.com/consumer_relations/index.php or 800-815-8664 – To obtain your First Advantage SafeRent report, containing information about your rent payment history, references, credit ratings, criminal records, etc.
• www.rentbureau.com – Click on “For consumers” to obtain information about your rent payment history, references, credit ratings, criminal records, etc.

Improve your credit score

Have you ever been late paying a bill? Your credit score might have been affected by just one skipped payment.

Whether you’re trying to repair your damaged credit or you just want to improve your credit standing, here are a few easy tips to get you to your ideal score.

1. Know your score

In order to improve your credit score, you should start with finding out where you stand. (Get your free credit report.) Credit scores range from 300 to 850–lenders believe that the higher your score, the lower your risk as a borrower.

You have three FICO® scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. Lenders use these scores to determine the amount and terms of your loans. A high score could save you thousands of dollars in interest.

Also remember that credit scoring is not just limited to banks. Other organizations, such as mobile phone and insurance companies and government departments use similar techniques. If you’re applying for a job, an employer may also run a credit check on you.

2. Pay your bills on time

Late and delinquent payments and collections can have a major negative impact on your credit score.

If you have any past-due bills, pay them now and then stay current with future payment cycles. If you cannot afford to make payments, call the lender and see if you can work out a payment plan. Most lenders are willing to work with borrowers to get current on their payments. If your home is in jeopardy, some lenders even offer loan modifications, so that you can stay in your home.

If you have trouble remembering to make payments on time, check with your bank to see if it offers e-mail or SMS alerts to remind you when a payment is due. Tech CU has this service in eNotifications.

Oh, and if you need more help, the Federal Trade Commission has tips for those who are knee-deep in debt.

3. Pay down your debt

High outstanding debt can also negatively impact your credit, so try to pay more than the minimum amount due each month. In fact, if you can significantly pay down–or even pay off–all your installment loans such as mortgage, auto, student, and credit lines, this can drastically improve your scores.

It may sound difficult at first, but there are several things you can do today to get those loan balances down. And, while we’re at it, be careful to avoid “dumb ways” to pay off debt that could actually get you into more financial trouble.

4. Review your credit report

You should review your credit report annually to check for inaccuracies and/or fraud activity.  Correct these issues as soon as possible. If too much time passes before you try to resolve an issue, it may be too late, and that inaccurate mark could stay on your credit report for as long as seven years.

• Make sure that your name, address, Social Security number, and all other personal information is correct.
• Make sure that there are no accounts, debts, bankruptcies, or court judgments on your report that don’t belong to you.
• Make sure that payment histories and balances are correct and that any errors you have reported have been fixed.

If you believe that you may be a victim of identity fraud, contact the U.S. Department of Justice immediately.

We also found a helpful Bloomberg video tutorial on improving your credit score:

Additional resources:
5 tips for improving your credit score
10 things you can do today to improve your credit
15 ways to establish and improve your FICO score