Questions and Answers
Q. I have been refused credit. Can I do something about it?
A. Absolutely! Nearly 90% of Americans, just like you, have some “blemish” on their credit reports. Due to the nature of the credit reporting industry, those blemishes can be mistakenly included on your record. Frequently, credit reports contain outdated information, unverifiable negative items, or totally inaccurate entries. Under the law the credit reporting companies must remove such information. You should check your credit report and see why you were, or may be, denied credit. Then, as a R. Witt Customer, you can do something to correct the mistakes and have your report corrected.
Q. Are “credit reporting agencies” a part of government?
A. No. Credit reporting companies are just that-companies. They are in business to make money, just like the mega-billion-dollar banks that run the credit card businesses. The credit reporting business is a multi-billion dollar industry. They generate their income by selling credit reports to creditors.
Q. Is it illegal or immoral to have your credit profile cleared?
A. No. It is not illegal or immoral to eliminate mistakes on your credit reports. In fact the Federal government, under the 1970 Fair Credit Reporting Act, Section 1681e, protects your right to do so.
Q. How does the credit reporting system work?
A. Today, the credit reporting system is literally millions of computer files about individual consumers which are maintained by the three credit reporting agencies. The files contain personal information about you-how much you owe, how you have paid your debts, your employer, your social security number, public records, etc.
Q. How does information about me get into my credit report?
A. When you agree to accept credit from a bank, most retail stores, etc., or fill out an employment application-if a credit report is used as a background check-you give the creditor the right to provide information to any credit reporting company. Additional information about you comes from public records, such as court records, debt collection companies, and even the utility companies.
Q. How do the credit reporting agencies work?
A. The banks, retail stores, utility companies, etc., report your payment record to the credit reporting companies each month. The credit reporting companies then give that information to a second tier of regional reporting companies who sell it to retailers, banks-anyone who legitimately requests information about you.
Q. Why should I care what is in my credit file?
A. You’d better care. It is your credit report that creditors use to determine if they will extend credit to you. If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.
Q. Why do the credit reporting agencies have separate reports for husband and wife?
A. The credit reporting agencies collect information based on individual social security numbers. Only by checking both the wife’s and husband’s credit reports can we ensure accuracy.
Q. Who can request information about my credit file?
A. Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is:
- Granting credit, reviewing your account, or collecting on your account.
- Reviewing you for employment purposes
- Reviewing your application for insurance
- Reviewing your eligibility for a license or government- related benefits.
- Providing information for a business transaction, such as renting an apartment.
- A court order.
- An IRS subpoena
- Someone to whom you have given written permission.
Q. How often are mistakes entered into my credit file?
A. Frequently! Some experts say that as many as 90% of credit reports contain errors! That is inaccurate, erroneous, or obsolete information that can cost you the credit you deserve.
Q. Who will remove items from my credit report?
A. Only the credit reporting agencies have the power to remove items from your credit report. But, as required by law, the credit reporting agencies must delete inaccurate, erroneous, or obsolete information.
Q. Should I apply for credit while in the restoration process?
A. Do not apply for credit during the restoration period. Each time you apply for credit, an inquiry is recorded on you record and too many inquiries can be a cause for denial of credit.
Q. Does paying a past due debt remove the debt from your credit report?
A. Paying an old debt does not erase the fact that at one time you were not paying it as you agreed, but it is possible to update your payment history.
Q. What happens if new, negative information-information that was not on my original report-is added to my report after RWC has begun work on my behalf?
A. RWC will assist you in working on the information in your credit report as long as you are an RWC customer with no additional charge.
Q. How do I get my credit reports to RWC?
A. You may mail them to RWC; priority or overnight for faster delivery.
Q. How will I know the results following the credit reporting agencies review of my file?
A. You will be the first to know because the credit reporting agencies will write directly to you. |
