Different kinds of frauds and scams
There are endless cases where frauds and scams have lead to debtors going bankrupt. Mostly the causes for these are the lenders or the debt consolidation companies. They manipulate the debts repaid by the debtors and claim that they have not been paid for the same. Even the non accredited debt consolidation companies suggest high interest options like refinancing which can be an additional financial burden for the debtor. Besides these there are frauds where the lenders do not inform the credit reporting bureaus about the debts cleared by debtors. As a result the credit reports continue to reflect poor credit repayment histories.
Track frauds through credit reports
The credit reports are not only used for generating credit scores but also for keeping a track of the payment histories. These reports include all previous debts and dues, along with payments. These reports are the ideal way to track frauds. The most common fraud by lenders is not to report the payments by debtors to the credit reporting agencies. This results in a poor impact on the credit report or no change in the payment history of the credit report. A regular check on these reports can ensure that lenders inform the credit reporting agencies about the various debts cleared by debtors. This also helps the debtors to be in better control of their finances.
How to get your credit report?
The credit reports are provided for free every 12 months by the three main credit reporting agencies. These credit reports should be availed at intervals so that debtors can get at least one free report, every 4 months from each of these bureaus. These credit reports are hence updated more often and also help debtors to check their recent payments and cleared bills. In case the debtors notice that certain bills or cleared debts have not been included in the report then they can dispute the same. A copy of the report and the receipt for the cleared bills should be sent to the bureaus. The bureaus then send back a fresh credit report within 30 days.
Why are credit reports reliable, safe and fast?
The credit reporting agencies are under strict surveillance of the federal government. Hence the risks of frauds by any of these agencies are almost negligible. These credit reports are usually sent within 30 days of the request and can also be availed online. These reports are reliable and safe. If there are any instances of misinformation or incorrect facts, then these reports can also be disputed.