AFRC observes Credit Education Month every day Published March 16, 2010 By Barry L. Wilkinson 55th Force Support Squadron OFFUTT AIR FORCE BASE, Neb. -- Bad credit can cost you thousands of dollars over a lifetime and could possibly deny you your dream job. March is Credit Education Month and a good time to examine some of the most commonly asked questions about credit. Who has access to and uses credit reports? Anyone with a "legitimate business need" can access your credit history. These organizations include: · Businesses considering granting you credit · Landlords · Insurance companies and employers · Companies with which you have a credit account for account monitoring purposes · Those considering your application for a government license or benefit if the agency is required to consider your financial status · A state or local child support enforcement agency · Any government agency (limited usually to your name, address, former addresses, current and former employers) · Military and Department of Defense organizations for security clearances (subject to random checks, as well as periodic reinvestigations) Does it sound like a lot of people can look at your credit? On average, 92 percent of auto insurance companies place more weight on your credit report than your driving record. Much discussion has taken place over the reasons, but it seems that people with questionable credit histories file more nuisance claims against insurers. Insurance companies get specialized reports through choicetrust.com, which assist them in determining a person's risk for auto, homeowners and other insurance policies. If you see your rates rise without an explanation, you should ask your insurer to provide you with the reason for the increase. If you're denied credit, employment or another service or product you were seeking as a result of something in your credit report, the person who denied you has to tell you why and how to contact the credit bureau that provided the information. Thanks to the federal Fair and Accurate Credit Transactions, or FACT, Act, consumers nationwide are now able to get a free copy of their credit report annually from each of the three credit bureaus - Equifax, Experian and TransUnion - by calling 1-877-322-8228 or visiting www.annualcreditreport.com. Monitoring your credit report will not only provide you with current history, but possibly give you an indication if someone else is trying to use your identity. For this reason, credit experts suggest you space the ordering of the three credit reports throughout the year so that you can monitor a current report every four months. Even if someone is trying to steal your identity, you may catch it within a short period of time. Can I improve my credit report? Most lenders look at the most recent information on a report. If you've paid your accounts on time for the last two to three years, the lender may weigh that more heavily than a series of late payments from five years ago. Words of wisdom -- set up a budget and live within it. Stop using credit until your situation improves, paying your bills on time and contacting your lenders immediately if unable to meet a scheduled payment can help as well since ignoring the situation only adds to your problems. Most creditors are more than willing to work with you on restructuring payments. What about credit repair clinics? Going to a credit repair clinic won't help improve credit scores. There is nothing any credit repair clinic can legally do for you -- including removing inaccurate credit information -- that you can't do for free, and clinic fees can be substantial, ranging from hundreds to thousands of dollars. The Credit Repair Organizations Act is a federal law that prohibits credit repair clinics from taking a consumer's money until they have completed the services they promised. It also requires these firms to provide consumers with a written contract stating all the services to be provided and terms and conditions of payment. Consumers have three days to withdraw from the contract. Look to professionals if you need assistance. Offutt's Airman and Family Readiness Center has accredited financial counselors that can assist you with interpreting your credit reports and provide guidance to improve your overall financial health. Various educational classes are also offered to assist you with developing a personal financial plan, purchasing a home or automobile. Whatever the financial need, don't forget that the AFRC stands ready to assist all Offutt employees and their families. For more information, call the AFRC at 294-4329 or 294-5995.