Not in charge - how to reestablish credit - Brief Article

Black Enterprise, June, 2000

Q What are the best ways to reestablish your credit? Also, are there any loop-holes that African Americans have missed out on because of lack of resources?

--J. Freemont III, Laurinburg, North Carolina

A There are no shortcuts to rebuilding your credit, so don't fall for any of the many credit repair scams that exist (see Verve, "Battling Online Credit Repair Scams," November 1999).

Order a copy of your credit report from each of the three major credit reporting agencies: Experian (www.experian.com or 800-422-4879), Equifax (www.equifax.com or 800-685-1111) and Trans Union (www.transunion.com or 800-916-8800). Check the Websites of each credit agency to determine whether there are conditions that may qualify you for a free report, such as if you've recently been refused credit. Otherwise, credit reports are about $8 each.

Inform the credit reporting agencies about any inaccuracies you find in your reports. By law they must investigate these claims and provide you with written verification from the creditor within 30 to 45 days or these claims must be erased. If you're still not satisfied with their response, file a complaint with the National Center for Financial Education (www.ncfe.org) or with the Federal Trade Commission (877-FTC-HELP or www.ftc.gov).

To avoid the credit trap in the future, only purchase items within your budget, pay off all credit card balances in full at the end of the billing period and pay your bills on time.

--M.R.B.

Mail your consumer questions to Ask Your Advocate, BLACK ENTERPRISE, 130 Fifth Ave., New York, NY 10011, or send an e-mail to brownmr@blackenterprise.com.