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Essential protection against costly repairs.

Drive with confidence, knowing we have got your back.

A breakdown can be troubling enough without the added worry of expensive repairs. That is why we are pleased to bring you Mechanical Repair Coverage:

As your vehicle gets older, the risk and cost of repairs increases. And the average cost of those repairs can be expensive. Actual costs may vary by vehicle year, make, model. Prices are based on actual claim experience of Consumer Program Administrators Inc. and its affiliated companies’ customers as of September 2022. Your experience may be different.

Mechanical Repair Coverage

May help limit unexpected, covered repair costs as your vehicle ages, potentially saving you thousands of dollars in repairs. What is more, it works at any authorized repair facility in the continental United States of America, Alaska, Hawaii, and Canada.

Coverage Benefits

  • Substitute Transportation: up to $50.00 per day (10-day maximum) available on the first day of a covered repair; benefit is rental reimbursement and is limited to $35.00 a day in CA (5-day maximum, 10-day maximum for parts delay).
  • 24-hour emergency roadside assistance: up to $125.00 per occurrence; includes towing, battery jumpstart, fluid delivery, flat tire assistance, extraction assistance and lock-out service; benefit does not include extraction assistance and is limited to $100.00 per occurrence in CA.
  • Travel expense reimbursement: up to $200.00 per day (5-day maximum) for lodging, food, and transportation expenses when a covered breakdown occurs 100 miles or more from home and your vehicle is held overnight at a repair facility; not available to residents of NY.
  • Key replacement: up to $800.00 per occurrence for repair or if nonrepairable, the replacement of lost, stolen, or damaged keys (including fob and/or remote) including any programming; not available to residents of CT, MA, PA, and VT.
  • Paintless dent repair: provides for the repair of dings and dents, no larger than 4 inches in length/diameter, that are within an accessible area on a body panel of your vehicle and that are repairable through existing paintless dent repair techniques: not available to residents of CT.
  • Commercial use: pays for covered breakdowns when your vehicle is used for permitted commercial purposes.
  • Rideshare: pays for covered breakdowns when your vehicle is used for ride-sharing purposes such as Uber or Lyft.
  • Lift Kit, Leveling Kit & Lowering Kit: pays for covered breakdowns when your vehicle is equipped with a lift kit not to exceed 6 inches, leveling kit not to exceed 2.5 inches or lowering kit not to exceed 2 inches (lift kit, leveling kit, or lowering kit components themselves are not covered).
  • Mobility equipment: provides coverage for mobility equipment components when installed by the manufacturer or a licensed installer.
  • Good at any authorized repair facility: in the continental United States of America, Alaska, Hawaii, and Canada.
  • No out-of-pocket expense (except for any deductible): the administrator pays the repair facility directly for the covered repair.
  • Transferable: if you sell your vehicle privately, the coverage can be transferred (for an administrative fee), may add resale value and appeal.
  • Cancelable: receive a full refund for an unused agreement within the first 60 days, or a prorated refund thereafter less an administrative fee. Cancellation provision and administrative fees vary by state.

Filed Under: Uncategorized

Essential protection for your vehicle – and your finances.

Vehicle loan protection for what your auto insurance may not cover for a wrecked vehicle.

Fair market insurance value is not always fair. There may be a gap.

That is where Guaranteed Asset Protection Plus comes in.

If your vehicle is deemed a total loss due to an accident or stolen, there can be a significant gap between what you owe on your loan and what your insurance will cover. GAP may reduce or even eliminate the shortfall in the event your vehicle is deemed a total loss. GAP Plus can help reduce you next loan at the credit union, making it easier to get the replacement vehicle you will need.

Protect your vehicle loan – purchase GAP today!

Your purchase of Members Choice Guaranteed Asset Protection (GAP) is optional and will not affect your loan application for credit or the terms of any credit agreement you have with us. Certain eligibility requirements, conditions, and exclusions may apply. You will receive the contract before you are required to pay for GAP. You should carefully read the contract for a full explanation of the terms. If you choose GAP, adding the GAP fee to your loan amount will increase the cost of GAP. You may cancel GAP at any time. If you cancel GAP within 90 days, you will receive a full refund of any fee paid.

Filed Under: Uncategorized

Your Safeguard against the unexpected.

Do everything you can to take care of the ones you love.

Debt Protection

Your family means everything to you. And if the unexpected happens, you do not want an emotionally trying situation to be compounded by financial worry. That is why there’s Debt Protection, which may cancel your loan balance in case of:

  • Involuntary unemployment
  • Disability
  • Death

Life Plus

For additional protections, Life Plus can extend your Debt Protection to address a wide range of circumstances, giving you the reassurance of knowing you have taken steps to help secure your finances.

  • Accidental dismemberment
  • Terminal illness
  • Hospitalization or family medical leave
  • Death of a non-protected dependent

Things to know about Debt Protection:

  • It is easy. Simple to apply for and takes effect immediately.
  • It is budget friendly. Comfortably fits into your monthly payment.
  • It puts you at ease. Rest easy, knowing you are taken care of in so many problem situations.

Take an important step toward financial security. Ask us about Debt Protection with Life Plus today.

Your purchase of Debt Protection with Life Plus is optional and will not affect your application credit or the terms of any credit agreements required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative or refer to the Member Agreement for a full explanation of the terms of Debt Protection with Life Plus. You may cancel the protection at any time. If you cancel within 30 days, you will receive a full refund of any fee paid.

Filed Under: Uncategorized

Only 4 in 10 consumers have saved money for unexpected expenses.

There is no predicting when the unexpected will happen:

  • Job Loss
  • Illness or Injury
  • Vehicle Repair Costs
  • Disability
  • Death

Consumers feelings around financial uncertainty and protection.

  • 49% are worried about their ability to pay their bills over the next 90 days.
  • 76% had more interest in financial protection products since the start of the pandemic.
  • 55% saw financial protection insurance as “good financial planning.”

Financial protection for you and your loved ones.

Given life’s uncertainties, it is easy to see why more people are turning to financial protection to safeguard their family’ financial well-being.

Ask your Credit Union what options are available to you.

Filed Under: Uncategorized

To help you maintain a certain level of privacy on social media sites, here are some tips:

  1. Please read Terms and Conditions carefully. It is a bit difficult and time-consuming task, but at least have a look.
  2. Go through privacy settings in your account. Don’t rely on default settings.
  3. Stop clicking on useless posts like “Check your death day”, “Find which celebrity do you look like” and so on.
  4. Install a good antivirus software in your laptop and phone.
  5. Turn off your location. Some sites even keep track of your activities in the offline world, but turning off location will at least do the least possible loss.
  6. Do not forget to set up Security Answers.
  7. Never leave your account logged in. You are in a way inviting cyber criminals to hack your account or act as an impostor.
  8. Always check and analyze your post before posting. Try not to put too much revealing photos online.
  9. Always try to create strong password for a site and try to change it in regular interval of time. Never ever set same passwords for multiple sites.

Below is the list of few security threats that you might face in social media accounts:

Most social networking sites have information like Birthday or Email address. Hackers can hack your email account by using social information and can have access to all the information he/she wants. You don’t need to hide all information. You just need to take the following precautions: 

-Always set strong passwords. Don’t go for the easy passwords built using your Birthday or child’s name etc. i.e., from the information that is easily accessible from the social media account.

-Do not reveal too much information in a post. Be careful with what you post online. For example, if I write “Happy Mother’s Day “Lisa Money Cardholder.” Now you see someone can guess an answer to a security question “What is your Mother’s Maiden Name?”. This how it works for the thieves to get information by just analyzing your posts. They get so much information that they can even compromise your account.

-Do not reveal your location. Try to keep the location section either blank or set it to a false location.

-Do not use social media accounts from untrusted devices and networks in hotels, cafés, hospitals etc.

-Do not elect to remember passwords for social media accounts when offered by web browsers.

With the advent of Social Media like Twitter, there comes URL Shorteners in picture. Twitter allows a post to be maximum of 280 characters. Thus limiting the size and amount of information that can be shared. Shortened URL’s can trick users into visiting harmful sites since full URL’s are not visible. It is best to keep the following points in mind before clicking on shortened URL to avoid being hacked.

-Before clicking a link, place the cursor on the shortened URL. This will show the complete URL and will give you an idea about where the full URL actually points.

Avoid posting too many details online. Will you ever stand in the middle of a crowd and shout where you are going on a vacation? So why post all the details of your trip on social media? You are clearly giving your house keys to burglars. Try to take following precautions while posting any information online:

-Avoid posting specific travel plans and itinerary. Never mention exact date and time.

-Never post photos during the trip. Try to post photos after your return home from the vacation.

-Try to stay offline during vacation.

-Use the highest privacy controls to let only selective groups like family, selected friends to view your status updates and photos.

Every time we visit a website, it puts invisible markers which we call Cookies in technical terms in our computer. The job of these cookies is to track the user activity as you navigate from one site to another. This is the reason we are able to see the advertisements of our interest on the new page that we open. Cookies are the major loophole in the entire secure scenario. Some sites provide an option to opt out of the tracking feature, but if you don’t get that option, please be careful to clear the cache and the cookies on your browser regularly.

Wheatland Federal Credit Union cares about your security and non-public personal information.

When/If corresponding with your credit union through social media please do not divulge any personal information. Call your credit union instead. Never use your account number, any type of dispute, services being used or other private account information. Also, never ask for a service to be completed during a conversation on social media.

Try to achieve Private and Secure Social Media Accounts.

Filed Under: Uncategorized

The internet makes many everyday tasks faster and more convenient, like shopping, researching products, banking, searching for health information, and communicating on the go. Learn more about how to stay safe while online.

Credit Union Website Legitimacy

Before you do anything on your credit union’s website, ensure the URL is correct. Many scammers use URLs that deliberately look very similar to a real credit union, but link to a copycat website. Scammers hope to lure you into the “evil twin” website to trick you into giving them personal information such as your account number and password.

Tips to Keep Your Personal Information Safe and Secure

Always be cautious! Keep your personal information personal and protect yourself from cyber criminals by following these ABCs:

Always

Protect your phone from hackers. Your cell phone holds some of your most sensitive personal information, such as your passwords and account numbers, emails, text messages, photos, and videos. If your phone ends up in the wrong hands, someone could steal your identity, buy things with your money, or hack into your email or social media accounts. To protect your phone, keep it locked when not in use.

Keep your software updated and keep your data backed up.

Secure your computer. Never leave it unlocked or unattended in public areas. Scammers can easily capture your data or hack into your system while you are not looking.

Keep your software up to date. Maintain your security settings to keep your information safe by turning on automatic updates, so you do not have to think about it and set your security software to run regular scans. Whether it is your computer, smartphone, game device, or other network devices, the best defense against viruses and malware is to update to the latest security software, web browser, and operating systems. Sign up for automatic updates, if you can, and protect your devices with anti-virus software.

Be aware of scams and phishing attempts. Think before you click! If the promise looks too good to be true, it probably is. Hackers and scammers may lure you to a website with a virus designed to steal your information. Cybercriminals also use phishing tactics using a familiar site to get you to click on links and attachments. Be vigilant about protecting your information from cyber criminals. When available. use the “junk” or “block” option to no longer receive messages from a particular sender.

Be diligent about password protocols. Use password managers to generate and remember different, complex passwords for each account.

Be a hard target by layering your security whenever possible. This means enabling and using two-factor or multi-factor authentication on your smartphone, an authenticator app, or a secure token.

Cautious

Do not log into your sensitive accounts on public networks that offer free Wi-Fi.

Do not put all your information on social media sites. Never click and tell. Limit what information you post on social media—from personal addresses to where you like to grab a coffee. What many people do not realize is that these random details are all those criminals need to know to target you, your loved ones, and your physical belongings—online and in the real world. Keep Social Security numbers, account numbers, and passwords private, as well as specific information about yourself, such as your full name, address, birthday, and even vacation plans. Disable location services that allow anyone to see where you are—and where you are not—at any given time.

Do not assume that apps are not collecting your information in the background. Keep tabs on your apps. Most connected appliances, toys, and devices are supported by a mobile application. Your mobile device could be filled with suspicious apps running in the background or using default permissions you never realized that you approved. These apps gather your personal information without your knowledge while also putting your identity and privacy at risk. Check your app permissions and use the “rule of least privilege” to delete what you do not need or no longer use. Learn to just say “no” to privilege requests that do not make sense. Only download apps from trusted vendors and sources.

For more information, check out the FTC’s Online Privacy and Security guidance.

Protect Kids Online

Kids have lots of opportunities for socializing online, but they come with certain risks. Parents can help reduce these risks by talking to kids about making safe, responsible decisions.

The Children’s Online Privacy Protection Act (COPPA) helps you protect your children’s privacy. Enforced by the Federal Trade Commission (FTC), COPPA requires websites to get parental consent before collecting or sharing information from children who are under 13 years old.

Take advantage of your COPPA rights. Your child’s personal information is valuable, and you can do a lot to protect it.

The FTC offers an online toolkit of free resources to help you teach people in your community about kids’ online safety.

SUSPICIOUS EMAIL, TEXT, OR PHONE CALLS

WFCU will not text you about your account. Report any suspicious emails, phone calls or text messages representing itself as Wheatland Federal Credit Union or WFCU. Please notify WFCU by either sending the information to info@wheatlandcu.com or call 717-898-7673.

Filed Under: Uncategorized

Home Equity lines of credit (HELOC’s) and home equity loans are similar methods of borrowing money against the ownership stake you have in your home. A HELOC is a line of credit with a variable interest rate, while a home equity loan is paid back in fixed installments. Both typically allow you to tap up to 80% of the value of our home minus your outstanding mortgage balance.

Key differences between HELOCs and home equity loans:

  • A home equity loan is a secured installment loan that allows you to borrow a set amount against your equity at a fixed interest rate and repayment term.
  • A home equity line of credit (HELOC) is also a secured debt product. But it is a revolving debt that offers an amount of funds (a replenishable balance, similar to a credit card limit) tied to the level of equity in your home.

Home equity loans come with a fixed interest rate and repayment term. So, your monthly payment will remain the same over the life of the loan. By contrast, HELOCs have a variable interest rate, which can increase or decrease, along with your monthly payments, at preset times.

Some HELOCs come with low introductory rates for a period of time (for example, six months), then flip to a higher, but still fluctuating, rate. However, you will only pay interest on the funds you draw. This is not the case with home equity loans: The interest is calculated on the entire loan amount since you receive the funds in a lump sum.

HELOCs and home equity loans act as second mortgages, using your property as collateral for the debt. So, defaulting on the monthly loan payments means the lender could foreclose your home.

Both funding options allow you to use the funds however you see fit. Some use them to pay for major repairs or renovations, like finishing basement, remodeling a kitchen, or updating a bathroom. Others pay off high-interest credit card debt to save money.

You can expect closing costs whether you choose a home equity loan or HELOC. These expenses should be considered when deciding which option is best for your financial situation.

Pros and cons of a home equity loan.

Advantages:

  • You will have a fixed interest rate and predictable monthly payment.
  • You will get all of the loan proceeds at closing and can spend them however you see fit.
  • The interest paid on the loan might be tax-deductible. Contact a tax adviser for more information.

Disadvantages:

  • You will need to know exactly how much you want to borrow. If you do not you might end up with more or less than you need, which means you will either be stuck repaying the portion you did not use plus interest or need to borrow more money.
  • You will need a sufficient level of home equity to qualify – usually 20%.
  • You could lose your home if you fall behind on the loan payments.
  • If property values decline, your combined first mortgage and home equity loan might put you “upside down,” meaning you owe more than your home is worth.

Pros and cons of a HELOC.

Advantages:

  • You do not have to use (and repay) all of the funds you have been approved for. Interest is charged on the amount you have borrowed, plus interest accrued between payments.

Disadvantages:

  • HELOCs have variable rates. In a rising-interest rate environment, which means you will pay more. This unpredictability could wreak havoc on your budget.
  • You could lose your home to foreclosure if you default on the loan payments.

Requirements for HELOCs and home equity loans. Each lender has its own eligibility criteria for home equity loans and HELOCs. However, here are some general guidelines to keep in mind:

  • Credit score: A credit score of 620 could be enough with some lenders but aim for 700 or higher to have the best approval odds (and get the best interest rates).
  • Income: Your income should be consistent and verifiable.
  • Debt-to-income (ratio): You will need an acceptable DTI to qualify for funding.
  • Equity: Lenders generally allow you to borrow 80% of your home equity, which is the difference between your home’s value and what you owe.
  • Appraisal: The lender will require an appraisal to determine how much your home is worth or its fair market value. (Note: The appraisal is arranged by the lender, and the fee is included in the closing costs).

Bottom line on home equity loans and HELOCs

  • Home equity loans and HELOCs both allow you to borrow money against your home equity, but they are not the same. Consider the purpose of the funds, how much you need and whether or not you will want to borrow more in the future. Once you decide, get your credit in good shape and shop around to secure the best rate.

Source: Bankrate

Filed Under: Uncategorized

When you apply for credit, whether it’s a credit card, car loan, or a mortgage, lenders want to know whether you are likely to repay your loan and make the payments on time. To determine if you are a good credit risk, lenders examine your credit score whenever you apply for credit. Your credit score is an important factor in determining whether creditors will approve your credit application and, if you are approved, the cost of your loan. Other factors that can affect your credit application include your income and employment history.

Your credit score is calculated based on information in your credit report, which is a profile of how you manage your credit (loan) accounts. Your credit report details how many credit accounts you have, how much you owe, the amount of your credit limits, when you opened the credit account, your repayment history (including late payments), and certain public records (for example, a bankruptcy filing or a tax lien). Each of the three national credit bureaus (Experian, Equifax, and TransUnion) maintains a credit report about you.

Your credit report is updated once a month by each of your creditors, who provide information to the three credit bureaus about your loans. Your report is also updated regularly based on any new negative information obtained from public records that indicate an increased credit risk. Consumers with a high credit score are likely to pay back their loans in full and on time, whereas consumers with low scores are likely to carry a high risk of default.

The information our creditors provide to the credit bureaus affects your credit score. For example, if a creditor reports that you made a late payment, it’s likely that your credit score will drop.

Most credit scoring models consider the following factors when calculating your score:

PAYMENT HISTORY

  • The number of late accounts.
  • The number of accounts paid on time.
  • Negative public records.
  • The amount past due on delinquent accounts or collection items.

AMOUNTS OWED

  • For credit cards and other revolving credit with credit limits, the percent of your credit limit that you currently are using.
  • The amount owed on all accounts, as well as on different types of accounts.
  • The number of accounts with balances.
  • The amount still owed on installment loans relative to the amount borrowed. For example, if you took out a car loan for $25,000, but currently only owe $2,000, the small remaining balance relative to the large amount originally borrowed will help raise your credit score.

TYPES OF CREDIT USED

  • The mixture of revolving credit and installment loans. A history of borrowing using different types of credit increases your score.

LENGTH OF CREDIT HISTORY

  • The average time since the accounts were opened.
  • The length of time since the accounts were opened, by account type.
  • How long since there was account activity.

NEW CREDIT

  • The number of recently opened accounts and inquiries by creditors.
  • The length of time since the last credit inquiry.
  • Re-establishment of a positive credit history following past payment problems.
  • The length of time since a new account was opened.

In calculating your credit score, most credit scoring models assign a higher weight to your payment history and amounts owed than to the other factors. These two factors will, therefore, have a greater effect on your score than the other factors. But it is important to try to do well on all of the factors so you can maximize your score.

Here are some tips to increase your credit score:

  • At least once a year, review your credit reports from each of the three credit bureaus (Experian, Equifax, and TransUnion) for inaccuracies and file a dispute immediately if you find an error. You are entitled to obtain a free credit report once a year from each of the three bureaus. To obtain a free copy of your credit report, go to www.annualcreditreport.com or call 877-FACT-ACT (877-322-8228). It is important to note that your credit report does not contain your credit score. When you obtain your free credit report from each of the bureaus, you will be offered the option to purchase your credit score. However, you are not obligated to purchase your credit score to receive your free credit report.
  • Pay your bills on time. Late payments can hurt your score significantly. If you have missed payments, get current and stay current. The more you pay your bills on time, the better your score.
  • Keep credit card balances low relative to credit limits (30 percent or lower is recommended). “Maxing out” your credit cards means you have a very high utilization rate, which significantly lowers your credit score.
  • Pay off debt rather than move it around.
  • Open new credit accounts only as needed; new accounts decrease the average age of your total accounts. Having accounts that have been opened for a long time increases your credit score.
  • Avoid closing credit card accounts because this also decreases the average age of your accounts.
  • Apply for installment loans (mortgages, car loans, etc.) within a 30-day period because most credit scoring models will count multiple inquiries within a short period of time as only one inquiry.

Your credit score is presented as a number that can fall within a range – usually 300 to 850. However, some credit scoring products use different ranges – such as 501 to 990. If you obtain multiple scores and the same range was not used, you cannot directly compare the scores. For example, a credit score of 720 within the 300 to 850 range is not the same as a credit score of 720 using the 501 to 990 range.

Maintaining a high credit score is important because this is one of the factors that determine whether you will be approved for credit and the cost of your loan. Applicants with high credit scores typically are offered lower interest rates and better terms and conditions than applicants with lower scores. A low credit score reduces the chances that your loan application will be approved. And if it is approved, you will likely pay a higher interest rate for the loan than a borrower with a higher credit score.

If you apply for credit and are denied, you have the right to obtain a free copy of the credit report the creditor used when denying your application. You should obtain a copy of the credit report to make sure that it is accurate. If you find inaccuracies, you should file a dispute with the credit bureau. Here are the phone numbers and websites of the three major credit bureaus:

                Experian

                1-888-397-3742

                www.experian.com

                TransUnion

                1-800-916-8800

                www.transunion.com

                Equifax

                1-800-685-1111

                www.equifax.com

Source: Federal Reserve Bank of Philadelphia

Filed Under: Uncategorized

Wheatland FCU is always looking for volunteers to contribute to the success and growth of our unique financial institution. As a member owned, not-for-profit financial cooperative Wheatland FCU relies on the efforts of our volunteers.

The skill and dedication of all our volunteers has been an important part of our success, and we are hoping to find more good people to help lead us into the future. Could one of them be you? If you’re organized, motivated, enthusiastic and enjoy teamwork, a volunteer board member position at Wheatland FCU might be for you!

If you are interested in learning more about our Board of Directors and volunteering with your Credit Union, please contact our CEO, Kathy Rye, at 717-898-7673 or krye@wheatlandcu.com. *

Thank you for your membership and consideration.

*Email and other electronic forms of communication are not always safe. While email is protected at the Credit Union level, personal information, such as account numbers, date of birth, social security numbers, etc., should never be included in any email.

Filed Under: Uncategorized

Credit plays an important role in our daily lives. Many consumers use credit cards to pay for routine purchases such as gas and groceries and to obtain longer-term financing to purchase big-ticket items such as a home or a car. Many college students obtain loans to finance their education.

But lenders do not automatically extend credit to everyone. You must apply for credit and demonstrate to the lender that you are a good credit risk. Lenders use several tools to evaluate credit applications to determine if you are likely to repay a loan, including obtaining a copy of your credit report from one of the three national credit bureaus – Equifax, Transunion, and Experian. Therefore, it is important to understand the information in your credit report.

WHAT IS A CREDIT REPORT? A credit report is a document that contains a detailed history of your credit activities, including all of your credit accounts (e.g., credit cards, mortgages, car loans, etc.) and any negative public records relevant to your creditworthiness (e.g., tax liens, judgments, bankruptcies).

WHERE DO CREDIT REPORTS COME FROM? Credit reports are compiled by the credit bureaus. A credit bureau is an agency that collects information about the credit activities of individuals and businesses from creditors, public records, and other sources and then creates reports based on this information. The credit bureaus charge lenders a fee to obtain these credit reports. Although most creditors obtain credit reports from the three national bureaus, some smaller regional credit bureaus also provide these reports. Creditors typically obtain only one credit report when you apply for a relatively small credit amount (such as a credit card with a $3000 limit), while they will typically obtain copies of your credit report from all three national bureaus when you apply for a larger credit transaction (such as a home mortgage).

WHO IS ALLOWED TO SEE MY CREDIT REPORT? Under the Fair Credit Reporting Act, a federal law, credit bureaus can provide the information in your credit report only to the following requestors:

  1. creditors reviewing a new application for credit or conducting a review of an existing account;
  2. employers considering you for employment, promotion, reassignment, or retention;
  3. insurers considering you for an insurance policy or reviewing an existing policy;
  4. government agencies reviewing your financial status in connection with issuing you certain licenses or government benefits;
  5. a state or local child support enforcement agency for purposes of determining child support payments; and
  6. anyone else with a legitimate business reason for needing information in connection with a business truncation that you initiate.

Credit bureaus may also furnish reports in response to a court order or a federal grand jury subpoena. In addition, they will supply the report to a third party if you give them written instructions to do so.

WHAT TYPE OF INFORMATION IS ON MY CREDIT REPORT? There are usually four types of information:

  1. Identifying information: Your full name, nicknames, current and previous addresses, Social Security number, year of birth, current and previous employers, and if applicable, your spouse’s name.
  2. Credit information: The loan accounts you have with banks, retailers, credit card issuers, and other lenders. This information includes the type of loan, the date you opened the account, the original amount or credit limit, the current balance, any cosigners of the loan, and your payment pattern over the last two years. Other accounts you maintain that do not involve credit, such as a checking account or your account with a local utility, are not included because credit reports are limited to loans. However, if you are delinquent in paying any account including a noncredit account, and the account is referred to a debt collector, the debt collector can report your delinquency to the credit bureau, and it will remain in your credit report for seven years.
  3. Public record information: Federal and state court public records on bankruptcies, tax liens, or monetary judgments.
  4. Inquiries: Every instance in the past two years when you applied for credit and the creditor reviewed your credit report and score; this is known as a “hard” inquiry. If you obtain a copy of your report or score, or if an existing creditor obtains your report as part of its regular review of existing accounts it is considered a “soft” inquiry. For purposes of your credit score, only hard inquiries affect your score, soft inquiries are not considered.

WHERE DO THE CREDIT BUREAUS GET THEIR INFORMATION? Most lenders furnish information to the credit bureaus about your credit accounts. This occurs not only when you first apply for credit but also after an account is opened. Each month, your creditors update the bureaus about the information in your account, including the amount of your last payment, whether it was late, the remaining balance on your account, and for accounts with credit limits, the amount of your limit. Most creditors send information to all three national credit bureaus. Some creditors provide information to only one bureau.

DO THE CREDIT BUREAUS MAKE THE DECISION WHETHER TO GRANT ME CREDIT? No. The credit bureaus only supply the information about your credit history. It is the lenders themselves who make the decision whether to grant you credit.

WHY SHOULD I OBTAIN A COPY OF MY CREDIT REPORT? Not knowing what’s in your credit report can hurt you. Credit decisions, and in some cases employment and insurance decisions, are based, in part, on information in your credit report. Therefore, it is important that you periodically review the information in your credit report to ensure that all the information is accurate. For example, if a creditor incorrectly reported that you made a late payment on your credit card, you can file a dispute to have the error fixed. It is especially important to review your credit report before you apply for credit so that you can correct any inaccurate information. Also, for large loans, like home mortgages, lenders sometimes ask borrowers questions about information in their credit reports. By examining your report before you apply for a loan, you can be prepared to answer any questions that may arise while your application is being reviewed. Finally, checking your report periodically can help protect you against identity theft. If someone applies for credit using our name and credentials, a record of the transaction will appear in your credit report. If you review your report and see any credit inquiries or new accounts that you do not recognize, identity theft may have occurred; therefore, you will want to take appropriate action immediately. For more information about detecting and responding to identity theft, visit the Federal Trade Commission’s identity theft website at www.identitytheft.gov.

WHAT SHOULD I DO IF I FIND AN ERROR ON MY CREDIT REPORT? First, you should file a written dispute directly with the creditor that reported the error to the credit bureau. Your credit report will provide the creditor’s address for the purpose of mailing a dispute. Include copies (not originals) of any documentation that supports your position. For example, if a creditor reports that you made a late payment when you made the payment on time, you should include a copy of a canceled check showing your payment was received on time or a copy of your bank statement showing the date you made the payment electronically. You can call the creditor to find out what information is needed to refute the creditor’s claim. Under the Fair Credit Reporting Act, the creditor is required to investigate your complaint. If the creditor agrees that if reported incorrect information to the credit bureaus, the creditor must send corrected information to all the credit bureaus that were given the incorrect information.

Instead of filing a dispute directly with the creditor, you also have the option of notifying the credit bureau(s) that included the incorrect information in your credit report. The credit bureau will then conduct an investigation and notify you of its findings. If the bureau cannot confirm the information that you are disputing, it will be removed from your file and a corrected report will be sent to any parties you specify that have received our report within the past six months (or within two years if the report was requested for employment purposes). If you find an error on a report from one credit bureau, you should request a copy of your report from the other two bureaus because the error was most likely reported to all of the credit bureaus. If the other bureaus are also issuing incorrect information, you should file a dispute with them as well.

WHAT IF THE CREDIT BUREAU STANDS BY ITS REPORT? You have the right to present your side of the story in a brief statement, which the credit bureau must attach to your credit file. Anyone requesting a copy of your credit report would also automatically receive your statement unless the credit bureau deems the dispute irrelevant or frivolous.

WHAT SHOULD I DO IF I AM DENIED CREDIT BECAUSE OF SOMETHING IN MY CREDIT REPORT? The lender denying you must explain the reason for the denial and provide you with a notice listing the name, address, and telephone number of the credit bureau that provided the credit report. At that point, you have up to 60 days to request a free report. If the creditor relied on our credit score in making the decision to deny you credit it must disclose the score in the notice.

HOW LONG DOES INFORMATION STAY ON MY CREDIT REPORT? Generally, the credit bureaus must automatically delete negative information that is more than seven years old from your report and any bankruptcies that are more than 10 years old. For tax liens, the seven-year period does not start until after the lien is paid. However, there are exceptions. Negative information that is more than seven years old can be reported in the following cases:

  1. for a Perkins student loan;
  2. for credit transactions involving a principal amount of $150,000 or more;
  3. for the underwriting of life insurance involving a principal amount of $150,000 or more;
  4. and for employment of an individual with an annual salary of $75,000 or more.

HOW DO I GET A COPY OF MY CREDIT REPORT? Under federal law, you are entitled to receive a free copy of your credit report from each of the three national bureaus once a year. To obtain a free copy of your credit report from one or all three of the national credit bureaus, visit www.annualcreditreport.com or call 1-877-322-8228. To request your report(s) through the mail, visit www.annualcreditreport.com/manualRequestForm.action, download the form, print it, fill it out, then mail it to:

                Annual Credit Report

                Request Service

                P.O. Box 105281

                Atlanta, GA 30348-5281

Source: Federal Reserve Bank of Philadelphia

Filed Under: Uncategorized

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