Think about this.  Suppose you are paying for a service like a phone line and it only works sometimes.  A likely thought is to not pay for this poor service because it was up to your standard.  But the phone company does not see it that way and consistently tries to collect from you.  This continues to escalate and now the amount due has been sent to collections.

There is not much you can do about it.  It will be on your credit report.  The only way to tell your side of the story is to add a 100 word statement regarding this item.  You send a letter to the credit bureaus and have a statement added.

This might make you feel like you are protecting yourself but is it really doing anything for you?  The facts are your credit score is unable to take into account any 100 word statements while calculating your score.  So while you might have been trying to protect yourself from a lower credit score, there is not much you can do.

Another factor to consider is creditors often overlook these 100 word statements.  They are not interested in them and are more interest in the quantitative data.  So that leaves you with a possible statement that will hardly help your credit standing and the item still on your credit report.

There is something though about being able to tell you side.  A feeling that is being record and written down to be read.  That is a good feeling especially when you have been wronged.  Also, a creditor could read it and it is there if a potential employer would like to read it as well.  But there is no telling what the effect will be.

Sometimes it is better off than spending the time drafting and submitting a 100 word statement to work with the account to come to a settlement on the debt.  This will have a  better effect on your credit.  Also, in the meantime if you have added a 100 word statement to your credit report and now have settled the debt, you should have it removed.  It will be a sign that you have in the past had a problem with a account.

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Now, you are entitled to a free credit report once per year through AnnualCreditReport.com, but this does not include your credit score.  You will have to either pay for a credit score or enroll in a credit monitoring service.

The way it is present between the two parties, AnnualCreditReport.com and FreeCreditReport.com, gives two different sides.  Annual Credit Report is almost stating don’t do these other guys, it isn’t worth it because it will have strings attached and you will get it for free from us.  FreeCreditReport.com has the position that you will get a free credit report and score if you enroll in our credit monitoring program, but we will hardly talk about triple advantage and what it really does.  We will instead stress the fact that you get a free credit report and score if you join.

So which is the better stance?

The full story should actually be told.  Credit monitoring is actually a worth wild product, but selling it using a free credit report and score is the industry norm.  Most every credit monitoring program you will find out there offers a free credit report and score to get you to sign up.  AnnualCreditReport.com is just confronting the most recognizable.

Also, as stated above a credit report is free, but a credit score is not.  A “free credit score” always will come with some strings attached.  These strings are signing up for a credit monitoring program.

Here is the consideration that must be made: If you are person concern about your credit, credit reports, credit scores, being protected from identity theft, and trying to improve your credit, credit monitoring is worth it.  If so you will want to check your credit report and credit score more than once per year.  Taking that into account the cheapest way and the best way to do this is credit monitoring.  Depending on the program, you will be given access a certain number of times to both your credit report and score.

Also, on the push to improve, many credit monitoring are going to give you assistance by analying your credit report to see what you can do to improve.  Many programs provide alerts to when changes are made to your credit report.  Also, some watch your score and alert you when you hit your credit score goal.

Identity theft is another reason why credit monitoring is worth it.  Millions of Americans each year are struck by this crime.   The average money per person lost is around $5,000.  Also, the time and effort needed to clean up your credit report is daunting.  Credit monitoring is a form of prevention.  They watch your credit report 24/7 365 days a year.  Also, most programs come with a form of identity theft insurance.

Conclusion

Maybe the choice needs to be made to sell credit monitoring for what it is.  For a person that wants to check their credit report and score more than once per year.  Also, a person who is concerned about their credit, wants to improve their credit standing, and does not want to be a victim of identity theft.  Selling the product biased on its real benefits not a bonus of getting a free credit report and score when you sign up.  This would more than likely not sell as well, but consumers might known what they are getting into from the beginning.

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The rules that are followed here are laid out by the Fair Credit Reporting Act.  It states employers do have the right to review your credit report as a form of a background check.  This does not happen without you knowing though.  The employer must receive your written permission before they can access your credit report and this will included the employee signing off on it.

When an employer has your permission they then will request your credit report from one or all of the three major credit bureaus.  What they get from them is what is known as an “employment report.”  This is report includes all the same information as a normal credit report, but it will not include your credit score.

So when you applying for a job and you are concern about your credit standing you should check your credit report.   Even though this is what really matters to the employer it would hurt to review your credit score when you are doing so.  Also, if you are concern it is not the cleanest report and could be a potential problem, you have a few options.  First would be to dispute credit report errors.  This will be one of the quickest ways to improve your credit standing.  Other methods could take some time, but paying your bills on time is one of the biggest.

If you are wanting to check out how you stand visit MyFICO to get your Fico Scores/Reports.  This is the best place to get both.

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The limit can also vary on the type of debt instrument.  Here is a brief description of each:

• Written Contracts – These are written agreements between lender and borrower.
• Oral Contracts – These are contracts that lack a written statement of payment.  They could be agreements made on a handshake.
• Promissory Note – This is a written contract for payment.  They must outline the amount of the loan, interest rate, and payment terms.  Today, a common use of promissory notes is in peer to peer loans.  Mortgages are the most commonly known form of promissory notes.
• Open - The recognized form of this type of account is a credit card.  There are no term to the agree and the debt is revolving.

When Does the Clock Start

That is not something that is entirely clear.  The idea is you have made an agreement with a creditor for a loan and if you violate the agreement the statue of limitations starts.  The violation would be you not paying your bill.  This makes the agreement that you have entered into the true determinate of when the statue of limitations begins.

Also is the consideration of what happens if you pay a portion of the outstanding bill.  I wrote a post in regards to paying old bills and it warned of the dangers of paying old debts.  This could restart or extend the stature of limitations.  This actually depends on the state.

Conclusion

The best practices of dealing with old debts is sometimes to consult a lawyer on how to procede. The last thing you want to face is being sued for an old debt.

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1. The Right To Dispute Investigation

If you think there are errors on your credit report you have the right to dispute errors.  Upon this dispute the credit bureaus must conduct an investigation.  They also must respond back to you within 30 days of the dispute.  The investigation usually includes the credit bureaus contacting your account or creditor about the possible error.

2. The Right To Have Errors Corrected

If the item disputed is reported by the account to be inaccurate, it has to be removed from your credit report.  Also, if your account does not respond back on a disputed item in the alloted time it will be removed from your credit report.

3. The Right To A Written Response

After the investigation is over the credit bureau owes you a response in writing.  If there was a change to your credit report, the credit bureau also owes you a free credit report with the new data.

4. The Right To Add a Statement To Your Credit Report

Often the error will not be removed.  If you think that this is still an error and after you have contacted your account and they haven’t removed it, you can add a 100 word statement to your report.  This basically explains your story, but it will not help your credit score.

5. Your Right To Sue

If any of your previous rights are violated you do have the right to sue.  This is done in a Federal Court.

You need to know your rights.  This will make you a better consumer.  Also, it will help you if you dispute errors on your credit report.

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