Credit Bureaus Now Accepting Proof To Dispute Credit Errors

In news that will be sure to change the game, the credit bureaus have agreed to some of the following overhauls,

The credit-reporting firms will be required to use trained employees to review the documentation consumers submit when they believe there is an error in their files. If a creditor says its information is correct, an employee at the credit-reporting firm must still look into it and resolve the dispute. Source

Previously, credit bureaus would just enter a three digit code and contact the creditor. They wouldn't look at any documentation sent, even if it was the creditor that said it was an error (60 Minutes Story on this very scenario).  This new agreement changes that.

Another change will be coming to unpaid medical bills which is undoubtedly a good thing for consumers.

Unpaid medical bills—an increasingly common type of debt—will also be treated differently on credit reports. Some 43 million Americans have past-due medical debt on their credit reports, according to the CFPB. About 52% of all debt on credit reports is from medical expenses. Collection agencies typically report medical debt to the credit-reporting firms after they receive unpaid bills from hospitals, doctors and other medical professionals. While unpaid bills result from consumers not paying, they can often result when insurance companies delay payments.

Under the new agreement, the credit-reporting firms will have to wait 180 days before adding any medical-debt information to consumers’ credit reports. During that grace period, consumers will also have time to clear up discrepancies and catch up with other unpaid bills. When medical debts are paid by an insurance company, regardless of the time frame, they will have to be removed from the credit report soon after. Source

This no doubt will be a big change in helping consumers across this country. Now it is important that we keep vigilance of the credit bureaus and that they follow these changes.

Seven Ways You Can Hurt Your Credit Score

Here is an article from MSN that covers seven ways people will usually hurt their credit score.  Here is an excerpt from the article to give you an idea of what people typically do.

Opening too many accounts at once

Credit card new-account bonuses are certainly enticing, but you shouldn't be signing up for every card that's offering some cash back. Every application and subsequent credit review will generate a hard inquiry that will appear on your credit report. (Credit reviews that aren't used to decide whether you are actually getting a loan -- for instance, one conducted by a prospective landlord or by a bank when you are looking to get a checking account -- are considered soft inquiries and will have no impact on your score.)

Each hard inquiry will ding your score from three and five points and stay on your report for two years, although it will negatively impact your score only for about half the time it appears.

There is something in this article that isn't further expounded which is important for you to know regarding hard inquiries.  Hard inquiries that occur within two weeks while you are looking for a car or home as one hard inquiry instead of multiple ones.  This is called rate shopping and is something you should do.  Here are a few more answers from MyFico.

Basic Credit Info Is Back!!!

So after being offline for the last year or so, Basic Credit Info is back online.  I apologize for going offline but rest assured that I will continue to provide you the best information I can to help you learn about credit and how to build your credit score.

I will continue to post stories that relate to the consumer so that you can learn and avoid having too many issues.  If you have any questions don't hesitate to contact me.  I look forward to working with you and have a great day.