A direct payday lender will not be reading your credit report, but all your other creditors will. Some peopel have never even seen their own credit report. Knowing how to read this important piece of information will give you the ability to see what everyone else is.
Did you know that you can get a free report every 12 months? This program is set up so everyone can have access to, keep track of, and have an opportunity to correct any mistaken information on there. Credit reports can be confusing to read if you have never seen one before.
Print out your report if possible so you can highlight or write notes in the margins as you go along. The first section you will want to read through is all of your identifying information. You are looking for any inaccuracies with your name, current address, social security number, your birth date and your spouse’s name if you are married. Any errors found in this section could create problems with accurate reporting.
The bulk of your report will be pertaining to your credit history. This section will list out who your creditors are and your history with each one. This section will take some time to go through, but it will be worth every minute if you find errors. Highlight any information which you believe to be wrong or fraudulent so it will be easier to find later. Each entry will follow the same format.
- The company name will identify the creditor.
- The account number will be listed. This is helpful especially if you have multiple accounts with the same company.
- The name of the individual who is responsible for the account is listed. If you are the sole user, joint account, authorized signer are examples of what may be listed next to the user.
- The date the account was opened, how many months the account has been reported and when the last activity was on the account.
- High credit is reported which will give a fast glimpse as to the highest amount charged, or if a loan, the original balance. If the amount is an installment loan, the number of months for the term will be listed as well.
- The balance at the time of reporting will be listed.
- Past due amounts will be listed at the time of the reporting.
- The status of the account will report the type of the account and the timeliness of payment. A current or paid as agreed status will show a zero, numbers will progress up to nine to show how well you paid on your account.
- The last piece of information to be found is the date in which the account was updated by the creditor.
Direct Payday Lender will report a defaulted loan to the collection accounts section.
Any accounts which an individual has defaulted on within the last seven years, will be referred to a collections agency and reported to the collection accounts section.the name of the collection agency will be found here along with the amount owed and often with contact information. Any information in this section which does not look familiar to you should be reported by phone and by letter. Contact the collections agency as well. You may have been mistaken and do owe the amount and payment arrangements can be made over the phone. When contacting the agency because the debt debt does not belong to you, request something in writing from the collector which will also be sent to the credit bureau.
There will be a public records section which will display any history the courthouse may have on file. Additional information will include former addresses and past employers.
The last section is the inquiry section. Here, will be a list of all companies who have looked into your credit. Only companies who have gotten your written authorization are allowed to check your history.
Spotya.com continues to promote responsible lending and borrowing. A direct payday lender will not make inquiries to your credit history, but will want other qualifying information in order to approve your loan.