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Unformatted text preview: rd to lower other balances * * These actions may not be in your best economic interest if you can save money with a lower rate 34 Fair Credit Reporting Act Is your credit report accurate? If you are denied credit based on your report, you can get a copy free within 60 days Inaccurate information must be corrected within 30 days Only authorized persons have access to your report Adverse data can be reported for seven years and bankruptcy for ten years 35 What If You are Denied Credit? Ask the creditor to clarify the reason Check your credit report file Apply to another creditor with different standards Take steps to improve your creditworthiness You have the right to provide a 100 word explanation in your file (e.g. illness) Seek help if you think there is discrimination
36 What Creditors Look For: 5 Cs Character Do you pay bills on time? Capacity Can you repay the loan? Capital What are your assets and net worth? Collateral What do you have of value that the lender can take if you don’t repay? Conditions What economic conditions could affect your repayment of the loan?
37 Avoiding and Correcting Credit Mistakes
Fair Credit Billing Act Notify creditor of error in wr...
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- Spring '14