filing claims

How to Read a Credit Report

Damian Davila — Thu, 11 May 2017 08:00:09 +0000

Building and maintaining your credit history takes time and dedication. While there are many things you can do when shooting for that perfect 850 FICO score, checking your free credit report every year from AnnualCreditReport.com is among the best personal finance habits. Once you have a copy of your credit report, let's review step-by-step what to look for.

1. Check your personal information

First things first: Make sure that your credit report correctly shows your name, Social Security Number (SSN), phone number, and address. The three credit bureaus (Equifax, Experian, and TransUnion) keep track of all variations of names and SSNs reported as belonging to you.

You can easily rectify a small error, such as a misspelling, absence of a hyphen in a last name, or transposition of a street number by contacting the credit bureau and providing supporting documentation. Keep an eye out for information that you don't recognize at all — this may be a sign of identity theft. (See also: Don't Panic: Do This If Your Identity Gets Stolen)

2. Verify it's really you

Even after checking that your full name and address are correct, you may recognize some accounts on your report that belong to somebody else in your household. In this case, you may be a victim of a mixed file — when the credit information of two individuals sharing the same name gets mixed up in a single report.

This can be a potential issue in multigenerational homes with several family members sharing the exact name. For example, John Smith Jr. opens a store card but the credit bureaus list the account on the father's report (John Smith Sr.) instead of the son's. That would be a mixed file.

3. Watch out for errors in account ownership

Going back to the example of the father and son, the father may have decided to open the store card in his name, and then add his son as an authorized user, or vice versa. Make sure that reported accounts are only the ones for which you are the owner.

4. Look out for accounts incorrectly reported as late or delinquent

Unless you were more than 30 days past due, you shouldn't have a late or delinquent note on any debt. So, report this right away. (See also: How to Clear Old Debt From Your Credit Report)

If you recently made a payment and your account is now current, keep in mind that there is often a lag when credit bureaus report such incidents. Follow up with the company owning your debt and verify that it has notified the credit bureaus. Keeping your accounts current is critical, because payment history makes up 35 percent of your FICO credit score.

5. Validate key account dates

The most important date to verify is the date that an account was opened, because the length of your credit history accounts for 15 percent of your FICO credit score. Other important dates to verify are date of last payment, and date of first delinquency.

6. Beware accounts listed twice

It can happen! Possible sources of this error are when you upgrade a credit card with the same company, or refinance a loan with the same financial institution. Another possibility is that somebody opened an account on your behalf without your consent.

You also need to watch out for companies transferring the ownership of a delinquent account over to collections agencies. While you're still responsible for paying back what you owe, you're definitely not liable to receive a double (or triple!) whammy on your credit score for the same mistake.

7. Double check credit limits and balances

Double check that your account balances are within a range you recognize, and that your credit card limits are up to date. After all, 30 percent of your FICO score is based on your credit utilization ratio — your total credit card balances divided by your total credit card limits. For example, an outstanding balance of $4,000 with total credit limit of $15,000 would put your credit utilization ratio at 26 percent. The more available credit you have, the lower your credit utilization ratio will be. Most experts recommend this ratio should not exceed 30 percent.

8. Keep an eye on public records

A bankruptcy isn't the only reason you might end up with a public record on your account. Unpaid driving violations, library fines, or other penalties from money owed to the government will come to haunt you on your credit report. Depending on many factors, public records can stay on your report for up to seven years, even after taking care of them. This means that the best time to take care of them is now. (See also: 4 Credit Report Mistakes That Could Be Costing You Big)

9. Corroborate that corrected information has been posted

Chances are at some point, you'll eventually have to report an error. When this happens, always follow up to check that the incorrect information has been replaced and corrected.

What to do if you find an error

If you find any errors in your credit report, refer to the instructions on your credit report to dispute inaccurate or missing data. Here is a useful template from the Consumer Financial Protection Bureau to initiate disputes with the credit bureaus by mail or fax. Or, you can file a dispute online with Equifax, Experian, or TransUnion.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Ways to Get the Most Out of a Home Warranty

Carrie Kirby — Wed, 15 Feb 2017 10:30:29 +0000

If you have ever bought a home with a real estate agent, chances are they told you they convinced the seller to include a home warranty in the deal.

Unfortunately, those home warranties often turn out to be difficult to use. I have a friend in Florida whose central air system failed twice while the home was still under warranty, and the company found a different reason each time to deny the claim. I myself have had home warranty companies (initially) deny a claim for a clogged drain and a broken garbage disposal. Even when the warranty does cover a problem, many consumers are disappointed with the quality of the repair service.

Is it impossible to get results from a home warranty? No, it's not. While I'm not a huge fan of the policies, I personally have had home warranties pay for themselves several times over. It wasn't easy, though. Here are some tactics for getting the most out of your home warranty.

Shop Around for Policies

Not all home warranties are created equal. If you're buying your own warranty, first check the company's reputation, and then look at the different levels of coverage it offers. If the warranty is being given to you with a home sale, you can ask your real estate agent the same questions.

When Something Breaks, Contact the Warranty Company First

You have no heat in the dead of winter! Shouldn't you call the furnace company first and worry about getting compensated for it later? Not so fast. The home warranty company may not cover a repair if you hire someone first, and later contact them.

Some warranty companies offer 24/7 support, but if the warranty company puts you on hold forever or can't send a technician for a week, you may be in a tough spot. What you do then comes down to how much you want your claim covered, and how much damage — like frozen pipes — might occur while you wait.

Read Your Contract Before Calling

When filing your claim, explain exactly how your problem qualifies for warranty coverage. For instance, say your warranty covers appliances but not plumbing. Your dishwasher failed and caused water damage to your kitchen floor. Don't call and simply tell them you have flood damage in your kitchen. Call and report that your warranty-covered dishwasher malfunctioned and damaged your floor.

Be Persistent, Both With Phone Agents and Service Providers

Continuing with the above scenario, if the phone agent tells you your floor damage isn't covered, have the contract handy so you can cite the passages that support your claim. And if the agent isn't helping you, ask to be transferred to a manager. Follow up in writing or by email if denied.

Once a service provider is dispatched, be present for the visit. Some providers will show up, charge the visit fee, and say that the repair isn't covered — without thoroughly investigating. If they try to say it's not covered, point out why it should be. Contact their supervisor if necessary before paying the fee.

Ask If You Have a Choice of Service Providers

Before agreeing to allow a service provider into your home, check their online reviews. In my experience, home warranty companies sometimes send low-rated providers. You can look up a provider on Angie's List or Yelp quickly while on the phone with the service company. If it's a terrible company, ask to have a better one dispatched.

Ask If You Have the Option of Taking a Cash Payment

Warranty companies do sometimes offer cash instead of replacing an appliance. On the downside, the cash they pay probably won't cover your true replacement cost. On the upside, if you get the cash, you can choose the model and installer you want.

My home warranty company offered a $500 check when our water heater broke shortly after we bought our current home. Our new water heater cost twice that with installation, but we were glad to have the flexibility to upgrade the unit and work with a more reputable plumber than the warranty company initially sent.

Be Persistent Even If You're Not Sure Who's Right

The home warranty initially refused to cover my clogged drain because it was in the basement, leading to the outside of the house, and they only covered the inside the house. Was this argument valid? I wasn't sure, but because it required jackhammering and repairing my basement floor, it was going to be a very expensive repair — so I just kept at them. I emailed, I faxed, I called. It took weeks, but I finally got the company to pay for the repair — probably just to get me off their back.

Don't Schedule Service If You Know the Repair Isn't Covered

When the home warranty company dispatches a service provider to your house, they'll charge you a visit fee of $35 to $100 — whether they fix anything or not. So there's no sense calling them for a repair that falls outside the coverage, and there's certainly no sense misrepresenting your repair. You'll just lose the service fee.

Keep a Close Eye on Older Appliances and Systems During the Warranty Period

Is your furnace making a funny noise, but you can live with it? If your warranty expires soon, it may be worth paying the visit fee to have a technician check it out, just in case that noise indicates a major problem that will come to a head just after the warranty expires.

Keep Your Expectations in Check

Don't get surprised or angry when your home warranty provider tells you they won't cover a claim. Go in with a lot of patience and persistence on tap, and try your best to get something out of them. In the end, if you end up with a less-than-perfect repair or a smaller-than-desired check, acknowledge that at least you got something. Life's too short to waste time fuming at a company that angered you.

This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Airline Lost Your Luggage. Now What?

Nick Wharton — Wed, 04 May 2016 09:30:21 +0000

The absolute worst thing that can happen to you when you arrive at the airport after a long trip is waiting at the luggage carousel and watching it stop as you stand there empty-handed. The airline has lost your bags and you're stranded in a foreign country with no toothbrush, no shampoo, and no clothing. I had the misfortune of living through this catastrophe on a recent trip, and it's not fun.

Here's what you can do if it happens to you.

Report Your Loss Right Away

In every airport, there will be a luggage lost and found counter. They are usually located right next the baggage carousels and are typically well-marked. As soon as you realize that you made it to your destination but your luggage did not, head to the lost and found area to make a claim.

Make sure you bring your baggage ticket as they will need to enter it in the system. They will usually go on the radio and contact the luggage handling staff at the airport to see if your bags were accidentally left somewhere.

If you're lucky, your bag is sitting on the tarmac or in the transit area and you'll get it back within an hour or so. If not, you'll have to file a lost luggage claim. The staff will give you a form to fill out with your name, home address, hotel address, passport number, phone number, luggage description, and baggage tag number as well as a brief description of what was in your bag.

They will then photocopy your luggage tag, your passport, and the information you gave them and hand you a piece of paper with a reference number.

At this time you can leave the airport and head to your hotel. The airline will search for your bag and call or text you when it is found. When they find your bag, they should send it to your hotel or wherever you are staying at the time. (See also: What to Do If You Don't Have Your ID at the Airport)

Check the Status

If, after 24 hours or more, you still haven't heard from the airline, go online to the airline's website and click on the "Lost Luggage" section. Enter your reference number and last name and check the status of your claim.

Follow Up

Most airlines will update your status as soon as they find your luggage, but sometimes they can be slow and unreliable. Some people have had to go without their bags for months, while others never saw their precious luggage again.

Go on the airline's website and look for a customer service number. Call them and navigate the automated telephone menu until you get to a luggage lost and found representative. Give them your reference number and tell them your situation. Ask them to do everything they can to find your bag and also tell them how long you'll be at the hotel. Make your situation sound as dire as possible to try to encourage them to actively search for your bag.

Keep the Claim Updated

Make sure that all of the information that you gave is correct and remains valid. If you check out of your hotel and move to a new one, call or go online and change the information on the claim so that the airline can properly contact you when your bag is found. Even if you move to another city or country, they should courier your bag to you as soon as possible.

Go Shopping

The US Department of Transportation has laws in place that help to hold the airline responsible for your lost luggage and the contents of your bag. While the airline is technically required to reimburse you for any losses, the individual airline regulations vary greatly.

You can, however, be certain that you will be covered for your essentials. Contact the airline and ask them how much essential spending you will be covered for. Then go out and buy yourself some new underwear, shampoo, deodorant, and clothing. Keep all the receipts for these purchases because you will be asked to submit them later.

Sometimes the "Maximum Claim Amount" can be found on the back of your luggage ticket. This is the amount that you can spend on essentials and emergencies. For permanently lost luggage, there are different amounts you can be reimbursed.

Negotiate

No airline is going to willingly offer you the full reimbursement for your troubles or for the value of your lost items. You will have to negotiate, complain, and protest. Make sure you talk to a supervisor when making your claims and if you had anything of sentimental value in the bag, make sure you tell them. Also request that they refund you your checked baggage fee. The airline shouldn't be paid $25 for losing your luggage!

You can also ask to be reimbursed in other ways. You may be able to complain your way into a free flight or at least an upgrade into first class on your next scheduled flight with the airline.

Use Social Media

Some airlines don't make the claim process very easy. In this situation, you can take to social media and try a good old fashioned smear campaign. Mention the airline and explain your situation on any social media accounts you have and be sure to @ them so that they will see the posts.

No company wants to have the story of your lost luggage go viral on social media. You may be able to speed up the claim process or land yourself some free flights by posting about your situation on Facebook, Twitter, and Instagram.

When to Give Up

According to the DOT's latest Air Travel Consumer Report, 2.9 in 10,000 passengers experience delayed, damaged, or lost baggage. They estimate less than 2% of those passengers actually end up with their luggage permanently lost. If you are one of those unlucky people, it's time to make a lost luggage claim.

Claims for reimbursement will have to be backed up by receipts and proof of payment. When you go out shopping for emergency clothing and essentials, make sure to keep all of your receipts and when you claim the items that were permanently lost in your bag, try to find as many receipts as you can to back up your claims of what was in the luggage.

Before 2009 when DOT tightened restrictions on lost luggage claims, you would have had to kiss your luggage goodbye and never be reimbursed more than the cost of your essential emergency spending. Nowadays, the airlines are held responsible for "all reasonable, actual, and verifiable expenses related to baggage loss, damage, or delay."

Technically, the per passenger maximum for domestic flights in the U.S. is around $3,400, but getting that amount would be like winning the lost luggage lottery. You're more likely to be refunded a small portion of what you lost. For international flights, you may only be reimbursed around $1,600. It is unlikely that you'll ever receive these full amounts unless you can prove that your bag was indeed carrying more than that value.

Even if you can prove that you were carrying $3,400 worth of stuff in your lost baggage, the airline will only pay you a fraction of that amount. They are only required to pay the "depreciated value" of your items, so expect to take a major loss.

Contact Your Insurance and Credit Card Provider

Some travel insurance policies will cover you for lost baggage. This can help to top up the amount the airline agrees to pay. Contact your travel insurance provider and ask about their lost luggage policy. If you paid for the flight with your credit card, contact the card issuer and ask about baggage insurance. Many credit cards will help to cover you for your losses.

Get Your Bag Back

Hopefully you didn't have to go through every step in this article and somewhere in this process you were contacted by the airline and informed that they found your bag. If this is the case, you can either return to the airport to pick up the luggage yourself, or have it delivered to the address that you entered on your claim. Some airlines will try to make your pay for the delivery (believe it or not). If this is the case, negotiate and try your best to have them cover the cost. When your bags are safe and sound back home, it might be wise to invest in a GPS luggage tracker in the event this should ever happen again.

Has the airline ever lost your luggage? Did you get it back?

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: