As people up and down the eastern seaboard continue to clear up in the wake of Hurricane Irene, many are likely to be looking to their credit cards to help pay for repairs and the replacement of wrecked household goods. It’s depressing work, and especially distressing for those who are uninsured, either completely or just for flood damage. Business Insider recently quoted one source that suggested that up to 95 percent of all affected homeowners fall into this group.

Low interest credit cards versus rewards credit cards

Wow! That’s a colossal and genuinely shocking figure. And it suggests that huge numbers of victims may be forced to fall back on their plastic just to restore their lives to something approaching normalcy.

If you’re one of them, you’re likely to be pretty short on silver linings at the moment, and might be attracted by even the minor one offered by rewards credit cards. While you’re spending all that money, you may think, you might just as well get some cash back, travel miles, points or whatever.

Good idea. But it may not be the smartest move for all your purchases. For many of those, you should probably be pulling your low interest credit cards from your wallet instead.

Credit card rates, rewards credit cards and credit card calculators

That’s because, on average, interest rates are higher for rewards credit cards than those for ordinary ones. Indeed, at the time of writing, IndexCreditCard.com’s credit card rates monitor says that the average annual percentage rate (APR) for consumer non-rewards cards is 14.72 percent, while that for consumer rewards cards is 17.30 percent.

You’d need a spectacularly generous rewards card for it to make sense for you to charge items to it that you know you won’t be able to pay down for a long time. Generally speaking, the rule is that it’s good to use rewards credit cards for purchases that you know you can clear quickly, and low interest credit cards for those that are going to take you longer.

You can use credit card calculators to see how long it should take you–and how much it should cost you–to pay down balances at your own cards’ different interest rates. Then you can work out what your personal strategy should be.

Balance transfer credit cards

If your credit’s good and you’re having to load your cards a lot post-Irene, then you might want to consider applying for a balance transfer credit card. There are two reasons why this could be a good idea:

1. A number of these–mostly from Citi–offer zero percent APR on transferred balances for 21 months. Others make a similar offer for 15 months. That could provide you with just the breather that you need to get over the hurricane.
2. Your credit score could suffer if the balance on any of your cards is higher than 30 percent of its credit limit. So even if you can manage paying down your credit card debt easily, you could be better off spreading the load across more plastic.

Credit card companies human!

One tiny positive revelation that emerged in the aftermath of Irene is that credit card companies are human. That’s not necessarily in the sense that the U.S. Supreme Court thinks, namely that corporations are people. No, it’s in the sense that they’re run by real-life, breathing and occasionally sentient human beings. Many of them announced that those affected by the hurricane could see their late payment and/or other penalty fees waived, though only for a strictly limited time. Awww. Ain’t they sweet?

It’s a recurring theme of this blog that manageable credit card debt can in some circumstances be good. It can tide a family over during a short-term crisis, and it can give a significant boost to an economic recovery. Some experts reckon that 60 to 70 percent of the U.S. economy is based on consumer spending, so raising that level of activity could prove a prerequisite of a return to good times.

Credit card debt and obvious dangers

However, unmanageable credit card debt can, of course, be a disaster. On a micro level (and especially when coupled with high credit card rates), it can launch families into vicious, downward spirals of despair and ruin. And, as we’ve all seen very recently, it can on a macro level contribute to huge and unsustainable credit bubbles that, when they burst, do incalculable harm to the nation’s prosperity.

What’s needed is a way of encouraging responsible credit card use while steering those who can’t handle debt away from running up balances.

Credit reports that reveal more

On August 2, FICO, the company behind the systems that calculate most credit scores in the U.S., unveiled its Bankcard Growth Solution, which it described as a “unique new analytic solution designed…to help lenders improve decisions based on deeper analytic insight and accelerated learning across all stages of bankcard acquisitions and originations.”

In other words, it’s supposed to help credit card companies be smarter about whom they choose to issue cards and lend money. And it couldn’t have come at a better time. Credit card use is up, and the rate at which consumers are paying down card debt is slowing and may be reversing (see Credit card debt makes a rare uptick). Meanwhile, card issuers are falling over each other to attract new customers.

And all this is happening at a time when nothing about the economy is certain. As Andrew Jennings, FICO’s senior vice president and chief analytics officer, observed in a statement:

The ‘new normal’ in the banking industry is characterized by economic uncertainty and changing consumer behaviors, so banks have to figure out how to grow profitably despite the lack of stability. The most forward-looking banks are adopting analytic solutions that increase their capacity to learn, adapt and innovate. With its Analytic Learning Hub, the FICO Bankcard Growth Solution helps lenders make the decision that’s appropriate for each customer, learn from that decision’s results, and improve future decisions, in much faster cycles.

Much more needed

It’s unlikely that even FICO would suggest that its new offering is going to eliminate problem credit card use. To start with, Jennings says that only “forward-looking banks” are likely to adopt it, and, judging by Wall Street’s performance over the last decade, there are precious few of those around. More importantly, no profiling/data-mining IT solution is currently capable of predicting an individual consumer’s behavior with any great accuracy.

But it’s encouraging that FICO believes there are enough credit card companies out there that are taking credit risk management sufficiently seriously to make its new launch worthwhile. Perhaps they really have learned their lesson.

Do you know Libby and Connie Washington? They’re a very wealthy couple of sweet old sisters, and their credit score currently sits at 850, the best you can get.

Unfortunately, they also have a lot of obligations. They pay for their elderly relatives’ long-term care and medical bills. Their grandkids’ education is costing them a fortune. And just keeping their piece of prime real estate and their possessions secure is ruinously expensive.

All this was fine when times were good, but things have gotten tough recently, and Libby and Connie agreed they had to cut back. They settled on a household budget, but they’re still not happy with the size of their bills.

Credit score could take a hit

Of course, that’s not in itself a problem because their credit’s so good, but now they’re arguing over how they’re going to pay the credit card bills they charged all that spending to. Connie thinks the only way to keep their future expenditure under control is to tell their credit card companies where to stick their statements. Libby says that default and the consequent hit to their credit scores is going to make all their borrowing–past and future–ruinously more expensive.

Apologies for the clunky metaphor; you probably guessed in line one that Libby and Connie represent the divided U.S. Congress. And, of course, metaphors tend to be inherently flawed, and you won’t have too much trouble picking holes in this one. But it is true that the debt ceiling currently being debated is all about paying for spending that Congress has already approved, and little to do, at least directly, with future expenditure.

And it really could ruin America’s perfect “credit score.” Moody’s has already threatened to cut America’s current AAA rating, and as The Washington Times said on Saturday: “All agree the debt ceiling must be raised or the U.S. credit rating will be downgraded resulting in higher interest payments on the $14.5 trillion [already owed] and a downward spiral in the stock market again.”

Credit card rates at stake

It would be bad enough if it were only interest rates on government debt that were likely to rise in the event of default, which the U.S. Treasury believes will occur on August 2 absent an agreement to raise the ceiling. But consumer rates are tied to Federal rates, and everyone who owes on an adjustable- or variable-rate loan stands to pay significantly more for their borrowing.

That includes some mortgages, student loans, auto loans, personal loans, and home equity lines of credit. And it probably includes most credit card debt, which nowadays is usually lent on variable rates. As Sunday’s Washington Post observed: “Higher borrowing costs for the United States would mean higher interest rates on your credit cards, car and business loans and mortgages.”

So what’s likely to happen on August 2? The answer was summed up by Professor Matt Slaughter of Dartmouth’s Tuck School of Business: “Frankly, no one knows,” he told CNN Money on Saturday. “There’s no historical precedent for what happens if the U.S. defaults on part of its outstanding debt obligations.”

But the scenarios range from the vague (CBS News reckons: “Default likely would produce higher interest rates for consumers on mortgages, car loans and credit cards”) to the apocalyptic. Writing in The Detroit Free Press on Sunday, Mike Thompson predicted:

Failure to reach a debt ceiling agreement before the August 2 deadline would mean that legions of Social Security recipients would be without income, interest rates would shoot to the moon, America would plunge back into a deep recession, our military’s ability to protect the country would be placed in jeopardy and the global economy could crash and burn.

Credit card calculators help financial planning

Of course, if you have no variable-rate loans or credit card debt (and you don’t receive Federal benefits or have stocks and shares), you may escape the earliest impacts of default. But supposing you do. What might higher credit card rates mean to you?

At the time of writing, IndexCreditCards.com’s credit card rates monitor says that the average rate for consumer rewards cards stands at 17.09 percent. So let’s use some of the same website’s credit card calculators to model a possible scenario.

We’re going to assume that you’re paying that average rate, and that your household’s credit card debt stands at $7,394 (the average credit card debt as of February 2010). And, plucking a figure from the air, let’s assume that credit card rates rise over a period after August 2 by 5 percent (to 22.09 percent), which is hardly “shooting to the moon,” although nobody knows whether that figure’s too high or too low.

Credit card debt could get seriously expensive

If today you wanted to pay off your card balance within a year, you’d have to find $674.68 each month. If rates jump 5 percent the same monthly figure would be $692.36. Meanwhile, also over a year, the cost of servicing a debt of that size without paying it down could increase by $441.81.

Of course, it’s too early to panic. If you have faith in your elected representatives, you may believe the danger could still be averted. If you have faith in credit card companies, you may believe that they won’t find ways to maximize their revenues when sooner or later they hike rates. And, if you have faith in those, you might just as well count on getting out of trouble by finding a leprechaun to lead you to a pot of gold.

Many people will recognize it: that dread sinking feeling in the pit of your stomach when your mortgage, auto loan or credit card application is refused. It’s almost as bad when a bank quotes a range of loan or credit card rates in its promotional literature, and you end up with a rate that’s uncomfortably high. You ask yourself: What have I done wrong now?

Credit score information disclosure to improve

Well, soon lenders will be required to tell you what they think you’ve done wrong. Your loan or credit card application may still be turned down, and your credit card rates may still be high, but at least you’re going to know why.

That’s because last year’s Dodd-Frank Wall Street Reform and Consumer Protection Act requires lenders to disclose information about your credit score and credit report when they either refuse your application or charge you rates above the norm. On July 6, the Federal Reserve published the rules that cover this disclosure, and they are due to go into effect 30 days after they’re published in The Federal Register. The Fed says that publication “is expected soon” so it’s likely they could apply starting some time in August.

Get your credit report before you apply

According to FICO, whose scoring system is used by many credit bureaus, the number of recent credit inquiries you have made can have an impact on your credit score. So if you’re wanting a new credit card, you probably shouldn’t start with your dream one, and work your way down your list of preferences until you finally get accepted. All those credit inquiries could drive down your score, and stop you getting one that you might have qualified for before you began the process.

Instead, you should look at your credit report first, and then apply for a card that you stand a good chance of getting. By law, you’re entitled to one free credit report every year, but–with 50-70 percent of credit reports containing errors, not to mention the prevalence of identity theft–many prefer to pay to monitor their reports as often as they like.

Credit score issues remain

These credit report monitoring services can be valuable for many. However, it seems that there are sometimes discrepancies between the scores consumers pay to access and the ones that lenders actually use. That’s why, according to a July 6 report in The Wall Street Journal, the Fed is planning to publish a study later this month that should examine how these discrepancies come about, and perhaps how they can be eliminated.

On July 21, the new Consumer Financial Protection Bureau is due to take over responsibility for regulating credit scores and reports. It’s yet to be seen how effective the CFPB is going to be, but one area that’s on its agenda is the difficulty that many encounter when they try to correct errors in their credit reports. For more information on this subject, see IndexCreditCards.com’s “Credit report inaccuracies can ruin your life” and “Five rules for fixing credit report errors.”

Credit reports important

Of course, credit scores and reports fulfill an essential role in our society, not only allowing lenders to avoid dodgy borrowers, but also protecting those people who are, in financial terms, their own worst enemies. However, the systems that credit bureaus employ have had serious flaws, and many may welcome the steps that are now being taken to correct those.

It’s generally a mistake to lose too much sleep over credit card fraud. Unlike other forms of payment, the law caps your liability for such crime at $50, and in practice many credit card companies waive even that.

A credit card offers protections, but…

This is not to say that you shouldn’t be vigilant in your credit card use. To start with, if your account is compromised, you’re likely to face some hassle, which can be inconvenient. But the real problems arise if you end up a victim of identity theft, which last year cost Americans $37 billion.

Then those hassles can take on mammoth proportions. Your credit report can be ruined, and your credit score can plummet to subprime levels. And a poor credit score is likely to make it harder for you borrow to buy a house or a car, to rent an apartment, to make successful credit card applications. Black marks on your credit can even impact your ability to find a job or get a promotion. Worse, you may well find it hard to prove the negative that you’re not the one who ran up debt in your name.

It would be rare for someone to be able to steal your identity armed just with your credit card details. Normally, a complete hijacking requires at least an address and social security number. However, card information could be a criminal’s starting point, so it’s worth using your plastic with care (see 10 ways to avoid being a victim of credit card crime).

Credit card companies’ roles

So, while you’re doing your bit to protect your identity, how hard are your credit card companies working to achieve the same objective? A new study, published yesterday by Javelin Strategy & Research, suggests that their level of commitment varies considerably.

Javelin didn’t look at “back-office” protections (things like database and network security) because for obvious reasons card issuers keep secret the safeguards they have in place. Instead, the researchers rated companies according to three criteria:

• Prevention–stopping criminals before they start
  
• Detection–identifying fraud while it’s happening
  
• Resolution–sorting out problems after the event

It turns out that most credit card companies are great at resolving issues after they’ve occurred but not so hot at preventing them arising in the first place. Yet Javelin’s Philip Blank said in a press release: “We have found that prevention features offer the highest return on investment, leading issuers to see that it is imperative to prioritize educating consumers on the current technologies needed for protection.”

Javelin made it clear that credit card issuers and users share responsibility for online security:

To find an effective means of ensuring consumers take the proper precautions when conducting financial transactions online, issuers should consider requiring a minimum amount of security software in order to access the full gamut of online financial activity.

Credit card companies: which are best at fraud prevention?

Javelin revealed what it believes are the top-five credit card issuers in identity fraud prevention, detection and resolution. In order of ranking, they are:

1. Discover
2. U.S. Bank
3. USAA
4. Capital One

Regardless of online security measures provided by the credit card issuer, the credit card user can do his or her part by being aware of security risks and taking appropriate precautions when conducting financial transactions online.

Yesterday, The Wall Street Journal introduced its readers to Pete D’Arruda, a man who must give his tailor nightmares. How can his suits look good when he’s carrying a wallet containing 25 different MasterCard and Visa credit cards? Still, at least he doesn’t have to worry about how to pay his clothing bills; he has more than $300,000 in available credit on those cards.

Credit scores boosted by credit cards

Mr. D’Arruda writes and consults on personal-finance matters, and sees his plastic project as an experiment. As a scientist, he may have more in common with Victor Frankenstein than Stephen Hawking, but he’s made some interesting discoveries.

One of these concerns credit scores. In the standard FICO scoring system, the amount you owe, especially as a proportion of the amount of credit you have available, is an important factor. Indeed, this “credit utilization ratio” can account for up to 30 percent of your total credit score.

The fact that D’Arruda uses only 10-25 percent of his available credit (Hang on. That’s $30,000-$75,000!) means that his ratio is well within acceptable limits, and this may have helped him achieve a stellar score, which he claims is in the 810-815 range. However, to have got there he must also have:

1. Maintained a spotless record of prompt payments
2. Had his credit for some time
3. Acquired some new credit relatively recently
4. Kept a good mix of different forms of credit (mortgage, auto loans, personal loans, credit cards and so on)

Credit card rewards and perks

D’Arruda says that he pays for virtually all his purchases using plastic. And, as a result, he quickly builds up worthwhile credit card rewards. This Thanksgiving, the Journal reports, he plans to cash in enough points from his Disney-branded Chase card to cover a Disney cruise for his family. Some–though not necessarily your blogger–would see that as sufficient reward for repeatedly presenting a card emblazoned with a picture of Buzz Lightyear.

Meanwhile, when he flies to meet his cruise ship, D’Arruda can use one of his prestige credit cards that offer airport lounge access to ease a wearisome journey. These tend to come with hefty annual fees, but he recently saved himself $495 by getting a card issuer to waive the charge because his credit score was so high. You might not be that lucky, but it’s worth remembering that credit card companies are often responsive to negotiations.

Credit card use best in moderation

Before becoming too envious of D’Arruda’s lifestyle, it’s worth remembering his administrative burden. Most of us struggle to manage two or three cards, what with tracking charges, reconciling statements and scheduling payments. Would we really want to do that for 25?

To be fair, Mr D’Arruda isn’t advocating that we should try. He’s conducting an experiment. What his experience may suggest is that responsible credit card use can enhance people’s lifestyles, even when it’s practiced on a much smaller scale than his.

Credit card companies started off looking down their noses at prepaid cards. According to Mercator Advisory Group, in 2008, Americans spent only $330 million on prepaid plastic. The research firm expects that figure to reach $552 billion next year. That’s nearly 170,000 percent growth in just four years, assuming that your blogger wasn’t overwhelmed by the number of zeros involved when he was making that calculation. No wonder everyone now wants a piece of the prepaid pie.

Why the growth?

There seem to be three main factors driving that growth:

1. State and federal governments are using prepaid cards to deliver tax rebates, unemployment compensation, disability benefits and so on.
2. Millions of Americans saw their credit scores take massive hits during the recession, leaving them unable to get mainstream credit cards or checking accounts.
3. Partly in response to the forthcoming cap on swipe fees (see Credit card companies likely winners in Senate battle this week), many banks have increased their charges and fees, and watered down their rewards programs, leaving checking accounts and their debit cards looking much less attractive.

Credit card companies and banks play catch-up

Last week, the Forbes website published a blog that explained how important those capped swipe fees are to credit card processors:

Card networks such as Visa and MasterCard have witnessed lost revenues due to declining fees charged per transaction after the Fed’s proposal in December last year to limit the debit card swipe fee at 12 cents per transaction. Prepaid cards can help Visa and MasterCard recover lost revenues as the Fed did not limit the swipe fees for most prepaid cards.

Meanwhile, earlier this week, American Express launched its own prepaid product. In a statement, Dan Schulman, group president of American Express’ Enterprise Growth Group, explained why it might appeal to consumers:

We listened to our Cardmembers and customers who told us that although they enjoyed the benefits of a prepaid card–safer than cash, no impact to their credit, no risk of overdraft–they felt having monthly and other maintenance fees undermined the value of the prepaid card. So the feedback from our Cardmembers really helped make a good product, great. We stripped away the nuisance fees and designed an everyday payment card with superb customer service and benefits.

Prepaid problems

Schulman put his finger squarely on the biggest problem with prepaid cards. They’re effectively unregulated, and don’t have to provide any of the safeguards and protections that proper debit and credit cards do.

Prepaids started off as “distress purchases” for people who had no access to mainstream financial products, and some unscrupulous card issuers saw these consumers as fair game. Those companies loaded their card agreements with hidden and often predatory fees and charges that could cripple the finances of many who were already vulnerable. It’s to be hoped that the entry into this market of ultra-respectable players such as American Express will force out less responsible providers.

Credit cards best

Unless your credit score is so battered that you have no choice, mainstream credit cards are likely to remain your best choice for most transactions. Legally speaking, the protections they must provide against fraud, loss, faulty goods and dodgy merchants are superior to debit cards, let alone prepaids. And, of course, they often come with generous rewards and other perks.

So credit card use is likely to make the best sense for most purchases, always providing you’re not one of those people who can’t resist the temptation of getting into unmanageable debt.

“Swipe fees” (a term that’s, er, interchangeable with “interchange fees”) are the cut of the transaction value that merchants have to pay to banks every time a debit or credit card is swiped. Research from a 2010 Federal Reserve Board survey showed that the average interchange fee on debit swipes was about 1.14 percent of the transaction total, and a bit higher for credit card transactions.

With the dramatic rise in the last decade of electronic transactions over paper checks, the level of interchange fees set by credit card networks have become a topic of hot debate–and big business, to the tune of $16.2 billion in bank revenues for debit interchange fees in 2009, according to the Federal Reserve Board.

Interchange fees were created to compensate and incentivize issuing banks for the trouble of taking debit and credit transactions, but merchants and their allies argue that the fees have become a gravy train for banks.

This week, the debate over interchange fees on debit cards heats up in Congress.

Credit card companies and banks up in arms

Last July, the President signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. This included a requirement for the Federal Reserve to review swipe fees, and to determine what a reasonable interchange fee might be. (This directive to the Fed excludes credit cards and only applies to interchange fees on debit cards.)

In December 2010, the Fed proposed rules that would cap debit card interchange fees at 12 cents per transaction. Given the revenues involved, it’s understandable that the banking sector is deeply unhappy. Its lobbyists are currently working overtime to delay, if not kill, this cap.

This week, their efforts may come to fruition if the Senate gets a chance to hear an amendment introduced by Senator John Tester (D-MT). Sen. Tester’s amendment would delay any changes to the fees and direct the Fed to study them further.

The banking lobby is one of the most powerful in the country. But this time it’s up against more than the usual worthy-but-dull not-for-profit consumer advocacy groups. That’s because big and rich (and small and poor) retailers and other merchants hate interchange fees with as much passion as banks and credit card companies love them.

Credit card use set to gain?

There are no prizes for guessing whose side Patrick S. Jury and John Sorensen were on when they were given space in Saturday’s Des Moines Register to argue their case. The first is president of the Iowa Credit Union League, while the second is CEO of the Iowa Bankers Association. They made a powerful argument:

Debit cards have become one of the most popular forms of payment for American consumers. More consumers now have debit cards than credit cards–and consumers use debit cards more often than cash, credit cards or checks. Unfortunately for all consumers, this convenient and preferred method of payment is about to get more expensive unless Congress takes action before July 21.

But if debit card use becomes so expensive that consumers avoid swiping them, what do Messrs Jury and Sorensen think will happen? Do they believe that people will start carrying around wads of cash? Or go back to using checks? Or return to gold coins or barter? What’s more likely is that credit card use is going to rise to fill the gap.

Credit card offers more

This might be a good thing for consumers, at least for those who can manage their finances responsibly. Last December, this blog demonstrated 7 ways in which credit cards beat debit cards. Credit cards provide better fraud liability and purchase protection, give you an interest-free period before repayment, can help you boost your credit score, and can offer perks such as credit card rewards, travel insurance and extended warranties. The average credit card offers more than a debit card to you as a consumer.

And an increase in credit card use could benefit the banks too. They’d still receive the same credit card swipe fees that they currently do on each transaction (unless financial reform turns its eye beyond debit cards). There might also be a small bump in the balances carried forward each month, providing them with additional revenue from the credit card rates they levy.

Of course, therein lies a danger. People use debit cards because they want to avoid credit card debt. And nobody wants to see a return to the bad old days when plastic was seen as a way to finance an irresponsible lifestyle. However, surely both consumers and banks have learned the lessons of the credit crunch, and won’t allow credit card debt to reach unmanageable proportions again.

Or will they? What do you think? Please do leave your comments below.

Maybe you’re not too worried about your credit report, which is the document used to calculate your credit score. Perhaps you’re not planning to get a mortgage or auto loan. Maybe you aren’t going to fill in a credit card application anytime soon. So you don’t think you should be concerned.

Well, think again. Your credit report isn’t just viewed by lenders. A poor one may make it difficult or impossible for you to rent an apartment, obtain phone service, get a job or land a promotion. Yes, many employers run credit checks before hiring people or promoting existing staff. These are all reasons to take your credit report seriously.

Credit report errors widespread

You should certainly monitor your credit report closely and regularly. The fact is that errors on credit reports are much more common than many think. Addressing this issue in December (Five rules for fixing credit report errors), this blog quoted experts’ estimates that between 50 percent and 70 percent of all reports in the U.S. contain at least one inaccuracy.

As a rule, everyone should check their record at least once a year. Many people are comfortable with services that provide continuing access, including Equifax 3-in-1 Monitoring and TransUnion’s TrueCredit Monitoring.

Credit report errors hard to shift

It’s a mistake to assume that credit bureaus are happy to correct any inaccuracies that arise on your report. They’re paid by credit providers, not you. Often, they won’t accept your word about anything. If you set out to correct an inaccuracy, start out with the assumption that you have a battle on your hands. Treat the credit bureau that has the error as the enemy. Having said that, being rude or confrontational could be counterproductive. Be polite but persistent.

Last week, Tara Siegel Bernard wrote a New York Times piece on this very subject, and her advice closely reflected this blog’s advice:

1. Don’t use a credit bureau’s online dispute resolution service.
2. Mail letters “certified mail, return receipt requested” and keep copies.
3. Don’t provide originals of documents that support your assertions (cancelled checks, old statements, proof of previous addresses, court papers and so on), but do enclose copies.
4. Copy everything, again using certified mail, return receipt requested, to the creditor (credit card company, auto loan provider, mortgage lender, etc.) that originally supplied the incorrect information to the credit bureau. As the bureau’s customer, its request for a change is more likely to succeed than yours.
5. Don’t give up if you fail to correct an error yourself. Find an attorney who has in-depth experience of the Fair Credit Reporting Act, and go to court if necessary. You can find a lawyer through the National Association of Consumer Advocates.