Page 7 - Credit Builidng Toolkit By Adrean Yancy jr 3
P. 7
Credit Buildin Toolkit
· Free Annual Credit Report Request · Late Fees: If you are extremely late with
When you request a free annual credit a payment of 30 days or more after the due
report, they'll send it to the address on your date, they may charge an extra fee for that
file with them (occasionally, this will be an late payment which could be around $35 per
old or incorrect address). To update this month. The CRA reports this as "late fees,"
information, visit the websites of the three and it stays on your account for seven years,
major credit bureaus and enter your Social or until the last time, it was reported.
Security Number to access all of the · Collection Accounts: When accounts go
information on your credit file and update it. into collections either because you ignored
them or didn't pay them off enough before
· Disputing Errors being 90 days late, this will show up on your
If you find any errors when reviewing your credit report and stay there for seven years.
report, it's possible to dispute the error with · Bankruptcy: A bankruptcy will stay on
that CRA. The higher the dollar value of a your report for six years, and it will continue
disputed item, the more likely it will be to show even after you are discharged.
investigated by that CRA and removed from
your account if found inaccurate or . Delinquent Accounts: If you do not pay
unverifiable. You can also dispute an error your bills, it will show that you are
via the three major credit bureaus online or "Delinquent" on your credit report, and your
through phone: Experian (888) 397-3742; score will go down. It can go down by 50
Transunion (800) 916-8800; and Equifax points. If you are late for payment, your
(866) 349-519.
credit score could go down by 20 more
points each time. If you are late for 90 days,
· Credit Score Impacted by too Many then the negative information on your credit
Inquiries report can worsen.
When applying for loans or lines of credit
(such as mortgages), some lenders may not It can affect your score by -20 points each
approve requests based on too many time. If you have a lot of delinquency (late
inquiries in a short period, especially if there payments) on your cards, it will affect all
are several from different sources within three scores, but if you ignore the
one month. To avoid this issue, space out delinquency on one card, it only affects that
those inquiries. one score.
Also, not paying your bills on time is going to Pro Tip: So you don't incur these negative
have a negative impact. Most importantly, the consequences. You must pay all of your bills
credit bureaus will report this delinquency to
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