Evan Hendricks - Credit and Credit Report Answers from Expert

November 2, 2004
Identify Theft
Someone used my social security to open up two phone services (cell and land line). I was not aware of this until I went to purchase a car. The dealership said my credit score was low and indicated why. I called the two phone companies and I had to submit tons of forms and information disputing the charges. Well, all they did was send it to another collection agency and they want me to re-submit. It has been two years now and I still can not get a car in my name. It is embarrassing. I am 26 and a college professor. I do not know what else to do. HELP???????? -Tammy

EVAN SAYS: This is a very dangerous situation. Its cases like yours that I have seen the only way one gets their credit report cleaned up, and credit score restored, is by filing an FCRA lawsuit. But you need to make sure you dispute inaccuracies on your credit report with the three major credit bureaus (Chapter 6). If you haven't done that yet, do so immediately. At the same time, find an attorney specializing in consumer law.

October 20, 2004
Credit Fraud
I recently pulled my credit report and found there were numerous inquires from my fiancé and they were made by someone saying they were my fiancé and classified as personal. This greatly alarms me as I do not have a fiancé. How can I find out who has been doing this, what are my rights, and can I prosecute this person if I find out who he is?-JC

EVAN SAYS: What's odd here is that usually the inquiries on credit reports don't specify that your report was pulled by a "fiancé." Maybe by the "XYZ Finance Co." It is clearly illegal under the FCRA to pull credit reports for impermissible purposes. (Chapter 19) The inquiry should specify what company did the pull. Contact that company and demand to know the permissible purpose. It's even better if you can find a lawyer specializing in consumer law. The FCRA gives you the right to sue for damages when this happens.

October 26, 2004
Bad Credit Home Loan
How can I get a loan to buy a house with very bad credit and a bankruptcy?-Keith

EVAN SAYS: Of course it's not easy. But several professionals have told me that you can rebuild your credit, by getting smaller credit first (secured cards, store cards) paying on time, until you can get bigger credit - like climbing a ladder. Staying patient and disciplined, individuals have been known to qualify for mortgages 9 months to 1 ½ years after bankruptcy. But there are no quick fixes that I know of.

October 12, 2004
Credit Score Increase Time
I just graduated from veterinary school 5 months ago. I have around $85,000 worth of student loans (I have consolidated them and have made the payments on time) and I have a car payment that has never been late. My problem is with credit cards. I had a really bad habit of paying them off very late while I was still a student. I know this was terribly irresponsible. Now that I'm a doctor and actually making money I've managed to pay two of them completely off, and still have 2 left. I just checked my credit scores. Awful! Equifax gave me a 527 and Experian gave me a 561. Since I've graduated I live in an upstairs apt. with family that live in the same town until I could get on my feet and think of buying a house. Is there any hope for me with these credit scores? It's so embarrassing! If I make perfect payments for the next 6 months or so will it affect my scores at all? Please help!-Allison

EVAN SAYS: Be patient and pay down those debts, with no more late payments! You're score will steadily rise as your late payments get older and you improve your balance to credit limit ratio. Pay special attention to the charts in Chapter 2 - they'll tell you a lot of what you'll need to remember. Set a goal of checking your score 6 months from now.

September 27, 2004
Credit Report Check Frequency
I am shopping for a mortgage and would like to obtain a free credit/score report. Will my inquiry affect my credit score negatively? Also, will several credit report pulls from different mortgage companies affect me negatively?-Lori

EVAN SAYS: Not if the pulls are all mortgage related, and within the same 30 day period, according to Fair Isaac (Chapters 1 and 2).

September 1, 2004
Reporting Information to Credit Bureaus
I have acted as a lender by extending personal loan credit to clients for the purchase of automobiles. Once my clients have repaid their loans how can I (or they) provide this information to credit reporting agencies to improve their credit rating?-Kate

EVAN SAYS: You have to enter into a formal relationship with one or, to be complete, all three of the major credit reporting agencies: Equifax, Experian and Trans Union. They have contracts ready for you to sign that spell out your obligations. Also, the federal law, the Fair Credit Reporting Act requires lenders (furnishers) to report information accurate and to reinvestigate information disputed by consumers. (Chapters 6 & 9)

August 30, 2004
Unknown Vendor on Credit Report
I have a debt listed on my credit report that I do not know what it is. It is listed as first federal credit and it does not have a phone number or address. Do you know how I would find that information?-Katie

EVAN SAYS: Debts and credit accounts can often "morph" into unknown names because of corporate mergers and takeovers, name changes, and the like. It could also be a mistake. Unfortunately, my Web search turned up several entries under "First Federal Credit." You can either continue investigating and narrow down the field, and contact the most likely suspect directly, and/or, 2) dispute the entry with the Credit bureaus. Normally, it's best to dispute errors in writing, but you might consider disputing via the 800 phone numbers and asking the credit bureau operator if they could tell you who the heck is First Federal Credit. (Chapters 6 & 12)

August 29, 2004
Credit Score Drop - Late Payment
How many points does your credit score drop when a payment is late by 30 days occurring this year? -Michael

EVAN SAYS: No one can say exactly how much a credit score will rise or drop because of one entry. The score is calculated by weighing both the "parts," and the "whole." However, we do know that the biggest negative impact, 87%, occurs when the negative entry is within the last 11 months. In the book, we call this the "Importance of Being Recent." Chapters 1-3.

August 26, 2004
Check Old Credit Report
Can I have my credit report pulled for 1999? And will it show all the outstanding debts owed at that time, to whom, and the amount?-Karen

EVAN SAYS: Not really. Two of the three major credit bureaus keep historical monthly snapshots so they can check what was in their databases in years past. A few plaintiffs' attorneys have been able to obtain these in litigation through discovery, but it hasn't been easy (Chapter 8).

August 23, 2004
Raise Credit Score
How much will my credit score go up if I paid off two credit cards? I am applying for a loan and the company went past the deadline and had to pull a new credit report and I had fallen just below the limit so they suggested that I pay off two credit cards. They are doing a rapid repair right now. Will this raise the score enough to get the loan? I'm nineteen points shy of the requirement.-Sherri

EVAN SAYS: No one can say exactly how much your score will go up or down because of one or more actions. This is because the FICO scoring system weighs all of the parts against the whole in what's known as a "Scorecard" approach. (Chapters 1-2). In general, the rapid re-scorers are correct in saying that paying off credit cards will improve credit scores because it lowers the balance-to-credit limit ratios. There's no way of knowing whether this will be enough for your situation, but reputable re-scorers can really help (Chapter 3).

August 22, 2004
Remove Items From Credit Report
Is it possible to get paid collection accounts deleted from my credit reports? There are a couple that have been paid in full for over 3 years now but are still being reported while others have been deleted.-David

EVAN SAYS: Technically, negative data can stay on your credit report for seven years. As time goes by, it hurts your score less and less (Chapter 2). A few folks have been able to negotiate with either the creditors or collectors to get them to direct the credit bureaus to delete data. But that's generally a voluntary, case-by-case process. The law requires inaccurate data to be reinvestigated and removed after it is disputed.

August 21, 2004
Credit Report > Bankruptcy Removal
I filed bankruptcy over 10 years ago and it still appears on my credit report and I have been denied because of this. How can I get it off?-Neil

EVAN SAYS: Send a very stern letter, citing the Fair Credit Reporting Act, which only allows bankruptcies to stay on for 10 years. If that doesn't get the job done, find a attorney, preferably one specializing in consumer law, to send a demand letter.

August 17, 2004
No Credit History
I don't have a credit history as I always pay my credit card bills in full. What should I do to build a decent credit history and not pay a lot of money in finance charges?-Benjamin

EVAN SAYS: That's confusing. If you have credit cards, and you pay them off each month, your credit report should reflect that - meaning that you DO have a credit history. I wonder if you have a credit card company that doesn't report to the credit bureaus. (Chapter 4)

July 1, 2004
Bad Credit > Negative Info
I had really really bad credit a couple of years ago. I'm wondering how long that will show up on my credit report? - Jackie

EVAN SAYS: Negative information can stay on the credit report for seven years; bankruptcy can stay on for 10 years.  [Chapter 5]

June 25, 2004
Credit Report > Credit Fraud
I have checked my credit report once a year for the last 2 years, and both times that I've checked it, I've found errors. I'm not sure if someone is using my credit to buy stuff. What should I do? - Trent

EVAN SAYS: Certain kinds of error can indicate identity theft.  Look in the "Inquiry" section of your credit report, as it shows who has "looked" at your credit report or credit score.  If a car dealer or electronic store that you've never been to has pulled your credit report, that could mean that someone has applied for credit in your name.  Of course, if there are credit cards accounts or loans on your credit report that you've never heard of, that could mean that someone already has obtained credit in your name! This requires prompt corrective action.  It's no fun, and it's very complicated. [Chapter 7]

June 18 , 2004
Bad Credit > Employment
I've had bad credit in the past, and I've heard that employers can look at your credit report. Can this be a determining factor in me getting hired? I think this is very strange! - Dennis

EVAN SAYS: Yes, the Fair Credit Reporting Act makes "employment" a permissible purpose for using credit reports, along with granting credit and insurance.  It appears the credit reporting agencies are aggressively promoting credit reports to employers in order to screen job applicants.  You can expect them to argue that people who handle their credit reponsibly are better employees.  The insurance industry makes the same argument.

June 10 , 2004
Bad Credit > Home Loans
I wanted to buy a house recently, but I think my credit report may not look too great! What does this mean? Will it mean I won't get approved, or will I have to pay a lot more than someone with good credit? - Lorraine

EVAN SAYS:  "Really bad" credit means outright rejection of credit. "Bad" credit can mean you pay higher interest rates, and even commissions.  They say some lenders and mortgage brokers prefer people with "Bad" credit because they make a greater profit, and "Bad" credit consumers are easier to manipulate.  It's never too late to start rehabilitating your credit.  It takes time, discipline and patience.  But it will empower you to more and better choices in the market. [Chapters 1-3]

June 5 , 2004
Bad Credit > Identity Theft
My purse was stolen a couple of years ago. I think someone is using my social security number for work purposes. What should I do? How much can this affect me? - Jessica

EVAN SAYS: Check your credit report for fraud-related data. Write the Social Security Administration and Internal Revenue Service.  Investigate!  If you confirm your suspicion, file a police report. [Chapter 7]