Understanding Credit Reports: Essential Tips for Everyone

Welcome to Bankruptcy.Blog. I’m Professor Alex, and I’m here to help with the ever-important issue of credit reports. This video will focus on credit reporting errors and identity theft.

Here’s a detailed breakdown of my YouTube video on the subject, which you can see below, or click the video to be taken directly to my YouTube Channel, where hundreds of other videos are available to help you travel the path of being debt-free.

Why Credit Reports Matter

Credit reports are crucial for your financial health, but errors are common. These errors could cost you money, so reviewing your credit report regularly is essential. A recent data breach prompted me to check my credit report to make sure. Luckily, all is well.

• Identity Theft and Massive Data Breach

Recent Data Breaches and How to Protect Yourself

I’m the first one to admit that getting your credit report can sometimes be a hassle, especially with challenging security questions. For instance, I’ve had to answer questions on a property I lost to foreclosure in 2008. Answering questions on business phone lines I haven’t used in ages doesn’t help.

If that happens to you and your identity can’t be verified online, you can always request your credit report directly from the three major credit bureaus—Equifax, Experian, and TransUnion in writing. It will take longer, but trust me, if your identity is stolen, that would take up much more of your time to resolve. But at least start by trying to obtain your credit for free every twelve months from annualcreditreport.com.

Positive Changes in Credit Reporting

Recently, under the Biden Administration, medical debts under $500 won’t be reported anymore. Several states are passing similar laws, California being the most recent. It’s a step forward because, honestly, getting sick has nothing to do with one’s creditworthiness. Hopefully, student loans will see similar changes. However, under the Trump administration, with the dismantling of the Consumer Financial Protection Bureau, it’s likely to revert to reporting medical debt.

Dispute Credit Reporting Errors

If you spot errors in your report, and that’s possible, dispute them immediately through the credit bureaus’ websites. Regularly check for inaccuracies, especially concerning debts or old addresses. I also recommend setting up credit alerts to catch identity theft early.

For example, there have been endless times I have made a purchase, whether online or in person, and within seconds, I receive an alert that a purchase was made. That’s a simple and powerful tool to protect yourself. Those alerts can be set up directly with your bank or credit card company.

Consequences of Ignoring Your Credit Report

Ignoring your credit report can have serious consequences. For example, imagine you’re ready to buy a new car and get denied because you have poor credit due to five foreclosures. It can’t happen? Well, it happened to me. Apparently, I had five foreclosures in the Florida Keys. While I love the Florida Keys, Key Largo, and Key West, and have been there hundreds of times, I’ve never owned property there.

 I was able to fix the problem, but it’s better to check your credit score before applying for credit, whether because of identity theft or credit reporting errors.

Do You Like Saving Money? Watch Those Interest Rates

With recent interest rate reductions, it’s a great time to consider buying a home, refinancing a mortgage, or buying a new car. But before you make that step, ensure your credit report is error-free.

Protect Yourself!

Whether or not you’re seeking a new car loan or mortgage, check your credit report annually. Set up alerts so that you are notified of suspicious activity. Another way to protect yourself is by freezing your credit. New credit can’t be obtained unless you “unfreeze” your credit.

I hope you enjoy my video. Remember to like and subscribe to stay updated on financial insights and tips, and to be notified immediately when a new video is posted.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon books. To access my YouTube channel, click this link.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.