Your credit reports and credit scores have a tremendous influence over your financial life. Good credit can open doors to competitive financing, inexpensive insurance premiums, and even job opportunities.
Bad credit, on the other hand, can make it difficult for you to qualify for even the most expensive extensions of credit. Even if you do qualify for financing or services with existing credit problems, you’re going to pay more.
It is critical that you check all three of your credit reports furnished by the major credit reporting agencies and do so often. They are simply too important to turn your back on them for an extended period.
The good news is that checking your credit reports is easy and free if you know where to get them.
You have several ways to access your credit reports online, free of charge. For starters, federal law requires the credit reporting agencies give you free copies of your credit reports once every 12 months, but only when you ask for them.
The credit bureaus are not required to sneak up behind you and stick a credit report in your back pocket.
You can access your free federally mandated reports from Experian, TransUnion, and Equifax online at AnnualCreditReport.com. These free reports are one of the rights afforded to you under the Fair Credit Reporting Act (FCRA), thanks to a 2003 amendment to that Act called FACTA.
Normally, you have the right to only one credit report per credit bureau every 12 months, but that has temporarily changed. On April 20, 2020, the three credit bureaus announced they would allow consumers even more free credit reports than required in response to the Coronavirus pandemic.
You can access your credit reports for free each week through April 2021.
All three major credit reporting agencies are offering consumers free weekly access to their credit reports through April 2021. Again, you must make the request to take advantage of the offer.
In addition to your federally mandated free reports, you can find numerous websites that may offer you free credit report summaries. These so-called “freemium” sites will give you free monthly or even weekly access to one or more of your credit reports.
In exchange, however, you may need to agree to allow the company to market services or products to you.
Automated credit monitoring services exist as well, including some that will give you access to all three of your credit reports and your credit scores. Keep in mind, however, that while accessing all three of your reports and scores together may be convenient, such services often charge a recurring monthly fee.
Wherever you opt to access your credit reports, you should review all three of them often and make sure they are accurate. The credit reporting agencies work hard to make sure your reports contain accurate information.
Still, fraud and credit mistakes can occur. The only way to make sure your reports reflect a true picture of your credit history is to review these documents periodically on your own.
When you review your credit reports, be sure to keep an eye out for any potential red flags such as:
accounts that do not belong to you
inaccurate information about your accounts, such as balances or late payments
negative accounts that are too old to still be on your reports
Highlight any suspicious information you find and make a list. Should you discover any credit reporting errors, you’ll need to be able to explain the problem to the credit bureaus if you want to try to correct the problem.
In addition to your free annual credit reports, the FCRA gives you many other rights where your credit reports are concerned. One of the most important rights this federal law confers to you is the right to dispute any information on your credit report that you believe is wrong or questionable.
You can dispute incorrect information on a credit report in several ways. All three credit reporting agencies will allow you to submit credit disputes via mail, online, or over the phone, based on your preference.
Experian P.O. Box 4500 Allen, TX 75013
TransUnion Consumer Solutions P.O. Box 2000 Chester, PA 19016-2000
Equifax Information Services, LLC P.O. Box 740256 Atlanta, GA 30374-0256
The FCRA requires the credit bureau to investigate your claim when it receives your dispute. In general, a credit bureau needs to complete its investigation into your claim within 30 days, but the process has become much more effective and efficient over time with automation. Most credit report investigations take no longer than 14 days.
At the end of the investigation period, the data furnisher (that’s the creditor, lender, or collection agency that reported the information to the credit bureau) can take one of three actions. The data furnisher can:
confirm that the account is accurate, and the item you dispute will remain on your credit reports.
inform the credit bureau to delete its account from your report.
give the credit bureau new or different information and ask it to update the account.
Finally, if the data furnisher doesn’t respond to your dispute at all, the credit bureau will delete the account from your credit report because it is not verifiable. Whatever the outcome of your dispute, the credit bureau will notify you at the end of the process.
There is no guarantee a dispute will end the way you want it to. If you disagree with the outcome of the investigation, you can follow up with another dispute, submit a complaint to the Consumer Financial Protection Bureau (CFBP), or consider hiring a reputable attorney and pursue your FCRA rights.
Remember that checking your credit reports once, or even once a year, isn’t enough to ensure your credit reports remain accurate. Credit reports aren’t static documents. For most people, they change multiple times each month.
It’s smart to review your credit reports often, perhaps even once per month. When you keep an eye on your credit reports, it can help you to protect yourself from fraud and make sure that your reports and scores stay in good shape.
Checking your credit reports often is the best way to know you can count on your credit when you need it. And, for the foreseeable future, it’s free to do.
After 70 years in Monterey County, 87-year-old Mary Martinez moved in the middle of a pandemic, evicted from her modest one-bedroom, second-floor apartment at 1118 Parkside St. in north Salinas.
According to her former landlord, Martinez was evicted because she allowed a “violent man” to live with her, violating the conditions of her lease. Martinez said the man is her epileptic nephew.
Advocates say that while evictions like Martinez’s are rarer during the pandemic, landlords are feeling the financial squeeze. Some have sold rental properties to make up for lack of income. That can leave renters out in the cold when their new landlord raises the rent by hundreds of dollars or requires all renters move out before they take over the building.
“I don’t want to leave”
Nearly half the housing units in Monterey County are renter-occupied and of those renters, about half pay 35% or more of their monthly income in rental costs, according to American Community Survey (ACS).
The same data shows people of color tend to be renters rather than homeowners. People ACS data identified as Hispanic, Latino or Mexican –– such as Martinez –– make up the largest body of renters in the county.
Martinez does not deny violating her lease agreement but said her landlord was looking for an excuse to kick her out since March when he bought her building.
She also said she believed her status as a Section 8 recipient made her a target, an assertion her landlord denied.
According to Martinez, he soured on her after her epileptic nephew suffered a seizure in the bathroom, leaving emergency crews to break down the locked door. Martinez paid about $70 to replace the door, she said
In June, she received a 90-day notice to evict.
“I don’t want to leave,” Martinez said through tears during a July interview. Her voice quavered. She sat on her living room couch, her shoulders slumped.
In August, she closed the door to apartment 10 behind her for the last time.
“Keep the house housed”
At the state level, Assembly Bill 3088, co-authored by California State Senator Anna Caballero (D-Salinas), keeps renters facing hardship due to COVID-19 in their homes.
The legislation, signed by Gov. Gavin Newsom in August, states tenants who have provided qualifying declarations of hardship can’t be evicted before Feb. 1, 2021.
Monterey County, like other counties, passed a similar moratorium early in the pandemic, extending it multiple times to keep it alive until the state legislature could find a solution.
Martinez is not the only person to be evicted or lose their housing during the pandemic. The moratoriums dealt with eviction for nonpayment of rent, not of someone in violation of their lease, as Martinez was. Others saw their landlords sell to new owners who raised the rent an untenable amount.
Far fewer people have been evicted during the pandemic than anticipated, said Joel Hernández Laguna, the lead organizer for Center for Community Advocacy’s (CCA). But in recent months, CCA received a higher-than-usual number of calls about people being forced out of their homes due to rent increases.
“You have to see the other point of view,” said Hernández Laguna, who has worked for CCA for almost nine years. “Some landlords are struggling to make payments on properties they rent out.”
He suspects that resulted in higher property turnover than normal. New owners often stipulate in the purchase contract that all tenants must move out upon sale of the property, or raise the rents so much the current tenants can’t stay, Hernández Laguna said.
“Landlords aren’t able to evict people with the current ordinances so instead are (increasing) the rent,” he said. “Which is another way of pushing them out indirectly.”
Matt Huerta, Director of housing at the Monterey Bay Economic Partnership (MBEP), said housing stakeholders are raising the issue of eviction and housing in MBEP group discussions.
“Our overarching message has been to keep the housed housed,” Huerta said. “Unless it’s a health and safety problem – in terms of the tenant creating a health and safety problem – everyone should be motivated to prevent a large health and safety problem to prevent evictions that will lead to crowded housing and homelessness.”
Phyllis Katz, directing attorney at California Rural Legal Assistance (CRLA) of Monterey County, said while CRLA had not seen any eviction cases during the pandemic, an eviction could lead to the same – or worse – consequences for someone.
“People acquire bad credit by being evicted,” Katz said in an email.
That bad credit can follow renters and can result in their wages being garnished to pay off debts or keep them from renting on their own. The cost of applying to apartments can be prohibitive, too.
“It costs $30-$50 for each application for housing,” Katz said. “People stay with relatives if they can, or in their car, if they can’t until they find housing.”
That can put people at risk, Katz noted.
“Families who go live in crowded conditions with another family are more prone to contracting COVID-19, and suffering illness as a result,” he said.
Health experts say this creates a prime environment for the coronavirus to spread throughout a household.
A June analysis by The Californian and CalMatters showed the hardest-hit neighborhoods had three times the rate of overcrowding and twice the rate of poverty as the neighborhoods that suffered the least. The neighborhoods with the most infections are disproportionately populated by people of color.
“People end up in that situation because they don’t want to become homeless,” Hernández Laguna said. “Families are willing to share an apartment complex or bring someone else into their home to pay the rent. One of the consequences of being evicted is having to overshare a property.”
Personal and financial loss
At first glance, you wouldn’t know Martinez is in the latter half of her ninth decade.
Before the pandemic, she walked to church almost every day for services. When she lived in Salinas, she’d walk to a nearby grocery store to purchase food, and carried it home herself, two blocks and up a flight of stairs.
Martinez’s age puts her at a higher risk of complications from COVID-19, should she contract the virus.
An eviction increases the odds she might encounter the virus, as she is no longer able to safely isolate herself, and moved three times in fewer than two months. Her sisters, who hosted Martinez following her eviction, are also at increased risk. Both women are in their 70s.
Martinez eventually moved to Pueblo, Colo. to stay with her younger sister, Esther, 76.
In the midst of all this, Martinez is struggling with the loss of her nephew, Greg Palacios.
Palacios was diagnosed with cancer shortly after his seizure in Martinez’s bathroom. He moved into hospice care and died over the summer.
Martinez cried as she talked about his death. She was unable to visit him while he was in care hospice due to pandemic-induced restrictions on visitors.
Martinez is wrestling with financial concerns as well.
She can’t afford a new apartment without the six weeks’ worth of rent, she told The Californian. She has little in the way of savings – she never married and worked mainly as a babysitter and a housekeeper.
While she hopes to keep her Section 8 status, she doesn’t know how moving out of state will impact her.
Furthermore, Martinez said she did not receive her deposit back when she moved out and was owed two weeks’ rent.
When reached by phone, her landlord introduced himself as “Pete.” He confirmed he had been Martinez’s landlord, but refused multiple times to give his last name, or say how long he had owned the property.
According to Monterey County Assessor records, 1118 Parkside St., the complex where Martinez used to live, was purchased by Ace Organic in March of 2020, which is headquartered in Salinas. An LLC-12 Statement of Information filed with the Secretary of State shows Peter Quinlan King as the owner of Ace Organic.
King told The Californian he worked in conjunction with the Housing Authority to evict Martinez, informing them on “everything, step by step.” He also pointed out that he had multiple Section 8 tenants on the premises.
“Mary had a violent and unauthorized tenant living there, so that was cause for eviction,” King said when reached for comment.
According to Monterey attorney David Brown, who handles civil matters between landlords and tenants, if Palacios had been on the lease with Martinez, it likely would have been unlawful to evict them due to his seizure.
As Martinez paid for the damage done to the door, Brown said, that might have violated the Americans with Disabilities Act.
“I don’t know for sure but…assuming that was the landlord’s motivation, yeah, that would probably violate the ADA,” Brown said.
King declined to comment further on Martinez’s eviction, or if he planned to return her deposit.
Although Martinez reached out to the Housing Authority for help and spoke regularly with her caseworker, she found herself confused as to whether she truly had to move out, or if her eviction notice was just a warning.
She moved out in August but still had doubts at the time of her departure.
Hernández Laguna urged people facing eviction or unanticipated rent increases to reach out to his organization or CRLA for help.
“Seek help,” he said. “There are protections out there for families.”
In Pueblo, Martinez found a new home with her sister Esther, though she doesn’t like the cold that’s begun to settle in for the Colorado winter.
Esther says she hopes Martinez will stay with her. Pueblo had a low rate of COVID-19 compared to the rest of Colorado, but in recent weeks has seen cases rise. Still, Esther said she feels she and Mary are safe from the virus there.
“I think Mary’s going to stay here,” said Esther. “We’ll go to California to visit.”
Kate Cimini is a reporter with The Salinas Californian. This article is part of The California Divide, a collaboration among newsrooms examining income inequality and economic survival in California.
ATLANTA _ Many Black entrepreneurs struggle to get bank loans and professional help to launch new businesses. A new program aims to remove those stumbling blocks.
An Atlanta nonprofit and another business have committed $150 million to the 1 Million Black Businesses effort, which will make loans and provide financial and business advice to Black-owned startups and established small businesses. Atlanta-based nonprofit Operation Hope, which helps consumers improve credit scores, is kicking in $20 million, and Shopify, the online e-commerce is adding another $130 million for the loans and website-hosting services.
Other services firms providing expertise or help include Aprio, an Atlanta-based accounting firm, and First Horizon Bank.
It’s a package of products that many Black entrepreneurs couldn’t get through a bank or credit union, said John Hope Bryant, CEO of Operation Hope.
“A bank won’t lend you money unless you can prove that you don’t need it,” Bryant said. “That’s especially true with minority-owned small businesses.”
Small businesses with Black owners were half as likely to obtain business loans as whites, according to a Federal Reserve survey published earlier this year.
The initiative is the latest effort to help Black consumers and businesses enter the financial mainstream. Earlier this month, a group that includes rapper Killer Mike opened a digital bank aimed at Black and Latino consumers.
Banks and credit unions have tried for years to help Black consumers open checking and savings accounts. The efforts helped, as the number of U.S. households without bank accounts fell to 5.4% in 2019 from 6.5% in 2017, the Federal Deposit Insurance Corp. said Monday.
Consumers who own checking and savings accounts typically have access loans with better rates and a wider variety of financial services.
The federal government’s $660 billion loan initiative for businesses hit by COVID-19, the Paycheck Protection Program, also helped few Black-owned businesses, Bryant said. PPP loans were based on a company’s number of employees and its rent obligations. many Black-owned small businesses typically didn’t have enough workers to qualify and are based out of the owner’s residence.
Bryant said a bad credit history may not prevent applicants from receiving a loan.
He hopes more companies will contribute services such as insurance advice or software typically available only to well-established businesses.
Bryant noted that 1MBB is not a charitable organization, as participating companies like Shopify will likely get a pipeline of new business customers through the program.
“This is not pure philanthropy,” he said. “Shopify believes that Black-owned businesses are good businesses if they’re properly supported.”
The final days of October offer a chance to take advantage of outstanding model year-end deals. Most offers end November 2, which means there isn’t much time left to enjoy this month’s best lease deals and deepest new car discounts. We even found incentives that can help those with bad credit buy a new or used car.
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Shorter-mileage leases. More brands are offering shorter mileage allowances on car leases. Although this is typically used to offer consumers more flexibility, we’ve found cases in which you can end up getting less for your money. If you don’t read all the fine print, this could make comparison-shopping difficult.
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