More on credit on less than favorable terms…
On an existing credit account where the APR is increased by the lender upon review of the consumers credit report and score, also necessitates sending an Account Review Risk-Based Pricing Notice. The factors used in determining the rate increase by the lender are tabled in this report making it easier for consumers to understand “why.”
The intent of these new Notifications is to allow the individual to check the accuracy of his credit report and should mistakes be found, be better able to respond to the Credit Reporting Agency and make the necessary changes.
4. What to do upon Notice
The first thing to do is to read the notice and make sure you understand all that is printed there. Doing this will help make some sense of how your credit report/score affects the price you pay for borrowing. Your lender can help explain the details.
Review a copy of your credit report especially if the score the lender has given you is quite a bit lower than. You are allowed one free “pull” of your credit report on an annual basis from the CRA’s.
5. Right the Wrongs
Should you discover errors on your credit report, errors that lower your score, you may dispute the information and if successful have it deleted from your file or corrected.
Start this process by contacting the Credit Bureau that issued your report. To find out more about initiating a dispute or have questions answered Get Credit Healthy can assist.