Dear Experian,

I recently looked at my credit report and saw that I owe two debts, and Experian is the collector. My question is where do I send the payment? I have been trying to pay it for a while now with no luck. Can you help?

- PDR

Dear PDR,

Experian does not collect debts on behalf of creditors, and you should never send debt payments to Experian.

Collection agencies may have reported the debts to Experian, resulting in them appearing on your Experian credit report, but Experian would not be listed as a creditor. Any payments you make should go to the current owner of the debt – either the original creditor, or if the debt was charged off and sold, to the collection agency.

If you have not already done so, order a copy of your personal Experian credit report. You are entitled to one free copy of your credit report every 12 months from each of the national credit reporting companies. To learn more about requesting your personal credit report visit http://www.experian.com/assistance/free-annual-credit-report.html.

When you receive the report, each account listing will show the name of the creditor as well as their mailing address and phone number, if it was provided. Collection agency accounts will also show the name of the original creditor that sold the debt.

You can contact collection agencies listed in your report either by using the information provided, or by searching online for additional contact information. You may want to call the company and verify the correct address before you send your payment to ensure that it is applied correctly to your account.

Thanks for asking.

The “Ask Experian” team

Dear Experian,

We filed for Chapter 13 Bankruptcy in June 2009. The Bankruptcy was never approved or discharged, but was dismissed a few months later. We dealt with all of our creditors individually after that. Does the Chapter 13 stay on our credit report even though it was never approved by the court?

- DLV

Dear DLV,

Even though your bankruptcy was dismissed, once filed the case is a matter of public record and appears in your credit history.

The public record listing for a Chapter 13 bankruptcy remains for seven years from the filing date. For Chapter 7 it remains for 10 years from the filing date. The entry will indicate that the bankruptcy was filed and then dismissed, rather than discharged.

Thanks for asking.

The “Ask Experian” team

Dear Experian,

I recently filed a dispute to get the status of my federal student loans changed. They were reported as delinquent because of missed payments. However there was a forbearance put on the account, and after the dispute, the status was updated to transferred/closed. Should my score improve with this update?

- CMW

Dear CMW,

A status of “transferred/closed” on your student loan account indicates that the debt was transferred or sold to another lender. If so, the original account will no longer show a balance because you no longer owe a debt to that company.

However, your credit report will still show the history of the account. Any late payments made before it was transferred or granted forbearance will remain on the report for up to seven years from the date the debt first became delinquent. While the old accounts will no longer show a balance, the payment history will still affect your credit scores.

New account entries will show the debts under the lender to whom the account was transferred along with the balance you owe. If these accounts are currently in forbearance or deferment, the status should reflect that fact as well.

Thanks for asking.

The “Ask Experian” team

Dear Experian,

I placed a security freeze on my account and have misplaced the PIN needed to temporarily remove the freeze. How do I get a replacement PIN?

- MCH

Dear MCH,

When you request a security freeze the credit reporting company issues a PIN number. The number enables Experian to verify that you are not the identity thief when we receive a request to remove the freeze.

If you lose your PIN, you can request a PIN reminder by visiting Experian’s online Security Freeze Center. Simply select “Request a Personal Identification Number” and then “Request a PIN Reminder.” You may be asked to provide documentation to verify your identity before a new PIN can be issued.

You can also request a PIN reminder by telephone using our automated system. Call 1 888 EXPERIAN (1 888 397 3742) and following the prompts to have a PIN reminder mailed to you.

Because security freeze requirements vary from state to state, our online Security Freeze Center provides state-specific information on how to apply and lift a security freeze.

If you have placed a security freeze on your credit files with Equifax and Trans Union, you will need to contact them directly regarding their processes for replacing your PIN.

Thanks for asking.

The “Ask Experian” team

Dear Experian,

Am I still liable for an account that I disputed and that was deleted from my credit report?

- MGB

Dear MGB,

Just because an account no longer appears in your credit report does not mean you no longer are responsible for paying it. It depends on why the account was removed.

It may have been removed by Experian because the lender failed to respond to the dispute within the required timeframe of 30-45 days. If so, you may still owe the debt.

If the account was deleted because the lender agreed with your dispute, you may not owe it any longer. The only way to know for sure is to contact your lender. They will be able to provide details of the account you have with them and confirm whether or not you still have an outstanding balance you must pay.

Thanks for asking.

The “Ask Experian” team

How long does ChexSystems information remain on file? Why does it prevent one from opening a CD, savings account or mutual fund?

- SHF

Dear SHF,

ChexSystems is a type of consumer reporting agency called a debit bureau. Debit bureaus specialize in collecting information on accounts held at banking institutions, such as checking and savings accounts.

The information debit bureaus collect does not appear in your credit report. Instead, they produce their own report, called debit bureau reports.

Debit bureau reports are governed by the Fair Credit Reporting Act (FCRA), just like credit reporting agencies. In fact, the initials “CRA” stand for “Consumer Reporting Agency,” although most people think they mean “Credit Reporting Agency.”

Debit bureau reports inform banks and other financial institutions if you have a history of insufficient funds checks or overdrafts on other types of deposit accounts. That’s why they can affect a person’s ability to open a checking account, certificate of deposit (CD) or invest in mutual fund.

Financial institutions may transfer debts owed as a result of insufficient funds checks to a collection agency. In that case, banking information may show up in your credit report because the collection agency will likely report the account to one or more credit reporting companies. The debt can remain on the report for up to seven years; however, this is not the same as a report obtained through a debit bureau or check verification service.

If you were declined by a bank when applying to open an account you can obtain a report from the debit bureau the bank used. Your bank should have provided contact information for the debit bureau, such as ChexSystems, in the notice telling you that the application was declined.

Thanks for asking.

The “Ask Experian” team

Recently we were told my husband’s credit report with Experian was not reporting and that his credit score is not available. We received a message that says “Factor 9002, Risk Score not available due to model exclusion criteria.” What do we need to do to correct this?

- RCH

Dear RCH,

The risk factor code you mention indicates that there has not been enough activity on your husband’s report in the last six months to generate a score. In order to be calculated, scores require recent credit activity.

If you have not already done so, request a copy of your husband’s credit report to ensure that his credit accounts are being reported accurately. Because adverse action was taken based on his Experian credit report he can request a free copy. The lender should have provided instructions to do so. If not, go to www.experian.com/reportaccess, click “Get my report now,” and complete the form, including the section about adverse action.

If your husband still has open accounts, he should use each of them to make a small purchase each month and then pay the balance in full, which will reactivate his credit. If he has no open accounts, your husband may need to open an account so that he can build a new history. With no active credit history to score, he will likely have difficulty opening new accounts and he may need to become a joint account holder on one or more of your accounts.

In either instance, it may take several k months for activity to be sufficient to calculate credit scores.

Your husband’s situation is a good example of why it is important to maintain a strong, active credit history to serve as your financial reference. When you are not seeking credit and don’t plan to, your credit report doesn’t seem important. But if you have an emergency, or need access to credit unexpectedly, having an active credit history can be essential.

Thanks for asking.

The “Ask Experian” team

I have a “Foreclosure was started” comment on my Experian report. We have made our payments on time for the last 30 months. What should the comment be changed to in order to show that we are no longer in foreclosure and that we are now current? I have seen “Paid Foreclosure.” Would that be accurate?

- RJP

Dear RJP,

The account status and balance history should reflect that it is now current. However, the fact that foreclosure proceedings were started will remain part of the account history for seven years. A status of “Paid Foreclosure” would indicate that account is now closed, the mortgage balance is paid in full, but that the mortgage went into foreclosure, which was not the case.

We’re happy to hear you were able to reinstate your mortgage and keep your home. The good news is that the longer you remain on time and current with your mortgage payments, the less impact the negative account history will have on your creditworthiness.

Thanks for asking.

The “Ask Experian” team

Do items on my credit report in which I am listed as an “authorized user” contribute to my score?

- DRH

Dear DRH,

Any account that is listed on your credit report could factor in to your credit scores. While most scoring systems incorporate authorized user accounts into the calculation some may not weight them as strongly because the authorized user has no responsibility for repayment of the debt.

However, an authorized user account can be a great first step in establishing a credit report if you can be added to an account that is always paid as agreed.

Since you are not responsible for payments on the account as an authorized user, you can request the account be removed from your report if there is negative information in the payment history, such as late payments. You lose the history, but you avoid having a negative credit reference. That makes becoming an authorized user a fairly risk free way to establish a credit a credit history and begin building a positive payment record.

Thanks for asking.

The “Ask Experian” team

Is it true that if more than one mortgage lender requests my credit report within 30 days, it will show up as only one hard inquiry on my credit report?

- BSL

Dear BSL,

Not exactly true, but close. Your credit report will still show an inquiry for each mortgage lender that reviewed your credit report. They are just treated differently by the credit scoring systems.

When shopping for a mortgage loan, it is common for multiple lenders to review your report while shopping for the best interest rate and most favorable terms.

Because of this, most scoring models allow for multiple inquiries of the same type within a specified period of time (often14 days) to be counted as only one inquiry. Doing so lets you shop for the best terms without affecting your credit scores.

Thanks for asking.

The “Ask Experian” team