Credit Reports In Los Angeles

New Consumer Law 2012

AB 22–
Chapter 724 – Civil Code §1785.20.5; Lab. Code §1024.5

Effective
January 1, 2012

Summary: Prohibits an employer or
prospective employer from using a consumer credit report for employment
purposes (with certain exceptions when it is allowed).

Background: The federal Fair Credit
Reporting Act and the California Consumer Credit Reporting Agencies Act
authorizes the use of consumer credit reports for employment purposes under
certain requirements. For many years, employers from various sectors have run
credit checks on job applicants.

The New Law: Prohibits a current or
prospective employer to use a consumer credit report for employment purposes
unless applicant is applying for or is currently holding the following
positions:

• Managerial position.
• Position with the California Department of Justice.
• Sworn peace officer or other law enforcement position.
• Position that involves regular access to the bank or
  credit card information, social security number, and date of birth of any
  one person.
• Position in which the person is named a signatory on
  the bank or credit card account of the employer.
• Position involving the authority to conduct certain
  financial transactions on behalf of the employer.
• Position that involves access to confidential or
  proprietary information.
• Position that involves regular access to cash totaling
  $10,000 or more.
• Position for which the information contained in the
  report is required by law to be disclosed or obtained.

Empower – Educate – Take Action
H & I Credit Solutions

Did you know that automobiles have a credit score? Well, it’s not really a credit score, but it might as well be. Automobiles have a specific score that enables consumers to decide if the vehicle is worth purchasing.

Just like credit reports and credit scores on consumers, vehicles have what is called an AutoCheck report and AutoCheck score. AutoCheck A Part of Experian is a automobile history report that includes the AutoCheck score. This tool enables consumers to view past history quick and easy and allows you to compare it to other automobiles. This lowers the risk of purchasing an automobile with unknown defects or problems. You can view the vehicles history and score on one report just like you can review your credit history and score.

Much like a consumers credit history and score, the AutoCheck Score performs the same way. This report and score will be affected by many factors. Look below and see the factors that affect the AutoCheck score.

• Accidents
• Mileage
• Age
• Automobile Class
• Number of Owners
• Title brands such as rebuilt title or salvaged
• Issues with the odometer (broken or rolled back)
• Damage to the frame
• Damage by water
• Lemon branded information
• Repossessed or stolen information
• Has the automobile been used as a police or taxi vehicle

The AutoCheck will provide you all this information along with the score that the vehicle is awarded. Data is gathered from the Department of Motor Vehicles, junk yards or salvage yards, recycling sites, auctions and insurance companies. They also gather information from police reports in all 50 states including the District of Columbia.

The AutoCheck score has a range between one and one hundred, but, you have to make sure you understand what you are looking at. While this score is based on the information in the report, it is just like your credit report and it may be confusing. The AutoCheck will provide the score range for the particular vehicle that is in question. Each vehicle will have a specific range that it is graded on.

Example:

2004 Ford Escape
Score: 92
Score Range: 86 – 90

2005 Chevy Trailblazer
Score: 93
Score Range: 94 – 98

In the example above you can clearly see that the Chevy Trailblazer has a higher score, however, if you look closely at the Score Range you may see a different opinion. The Ford Escape only has a Score of 92, but the range is from 86 to 90, this vehicle scores higher on the Score Range. The Chevy Trailblazer actually scores lower on it’s Score Range. So you may ask yourself, which one will be the better purchase based on the AutoCheck score.

Now, If you were basing your decision clearly on the AutoCheck score your best choice would be the Ford Escape. But some consumers are die hard Chevy lovers and some are die hard Ford lovers. To bad lenders do not base their decision on appearance and personality, rather than score.

Empower – Educate – Take Action

H & I Credit Solutions

A Merged Credit Report can happen very easily and is kind of scary when it happens to you. Especially when you didn’t even know it happened. The most common that this happens is when you apply for credit.

I’ll explain how this can happens. When you apply for credit in a local department store, the application for credit is approved/denied by specific items.

These items will vary and are based on variations of the following

• Name
• Address
• Social Security Number
• Birthday

Explanation:

Let’s say your social security number 555-55-5555 and the clerk entered in 555-55-5556 by accident. Your approval for credit would then be determined under the wrong number.

This applies to the above listed information as well. If  your name, birthday and address all match and there is a Social Security number variation, your credit file will have a high possibility of being merged with someone else.

A merged credit report can be separated by the dispute method; however, it takes time to separate.

Remember, the clerk behind the counter is not a credit expert, nor are they concerned with your credit report when they only make 7 to 10 dollars an hour. Be careful when you apply for store credit; don’t hesitate to reiterate your concern when you do apply for store credit.

You can say something like, “hey, make sure you type in the right information, because I just recently had a problem where I experienced a merged credit report.”

Only you can make sure your information is protected.

Empower – Educate – Take Action

H & I Credit Solutions

There are a lot of companies out there that offer a free credit report, or do they?

Why do they advertise that you get a free credit report when you actually have to pay for it?

Is there actually a place to get a free credit report?

Why is it so expensive to get your credit report through free credit report companies?

Let me explain, companies that offer you a free credit report, weirdly enough, it is actually free. But, there is a catch. The catch is, you have to sign up for a service. The service that they provide is a monitoring service. This monitoring service includes alerts of changes in your credit report, monthly newsletters about your credit report and the ability to refresh your credit report everyday if you want.

So the question is, is it really a free credit report? Well, considering the fact that your report may be free, however you are signing up for a service that is not free. The only way to truly obtain a free credit report online is to go to www.annualcreditreport.com. Consumers are entitled to a free credit report every year. Now you have to be careful, the trick is to print this report when you view it otherwise you will have to call them and have them mail it to you if you happen to close out of the window in your browser.

There are a lot of credit monitoring companies out there that do offer the service to monitor your credit report, but it’s not free. The great thing about signing up for a credit monitoring service is that you can pull your credit report more than once a year. Another way you can obtain a free credit report is to apply for a credit card and if you get denied then you can call up the “Big 3” credit reporting agencies and request your credit report. Because you were denied a line of credit, the credit agencies will send you a credit report free of charge, so you can review what is on your credit report. Of course you will take an inquiry hit on your report by applying for credit, so it’s a catch 22. Another way you can obtain your credit report for free, would be to apply for a home loan, yes again you take an inquiry hit on your credit report, but at least you will get detailed information of your credit report and you get to see what lenders see.

What I have listed above are definitely ways to get a free credit report, but some include consequences (the credit inquiry hit). When consumers pull their own credit report this does not affect their credit rating at all. That is the advantage of these free credit report companies, you, as a consumer, can “monitor” your credit report with no damaging affect to your credit file.

Thank you for reading and as always have a wonderful day,

H & I Credit Solutions

To begin, you have some personal information that is on your credit report. Your personal information will consist of your name, address, employer, and social security number. Your credit report also contains four categories of listings that are used to calculate your credit score.

Trade Lines
Trade lines include all regular credit lines such as retail store credit cards, auto loans, (home loans), and credit cards (such as a Visa or MasterCard). If there is a history of late payments, bankruptcy, charge off, or repossession, the listing will be considered negative by all loan originators when viewed on your credit report.

Collection Accounts
When an account is placed in collections to a collection agency because of delinquency, bad payment, or stop payment, it appears on the credit report as a collection account. Collection accounts can reflect two different statuses, either as a paid or unpaid account. Any type of collection account, whether paid or not, is considered negative by all credit granters when viewed on your credit report.

Court Records / Public Records
Court or Public records include bankruptcies, judgments, liens, divorce, satisfied judgments, and satisfied liens. All public / court records, including satisfactions, are considered negative by all credit granters when viewed on your credit report.

Inquiries
Every time a credit granter looks at your credit file, a credit inquiry appears on at least one of your credit bureau reports. If the numbers of inquiries are a small amount over the last two years, then there may be no negative effect on your credit worthiness. However, if there are many recent inquiries showing on your credit report, this raises a red flag and credit granters may deny you credit.

Empower – Educate – Take Action

H & I Credit Solutions