To determine: The ways to fix errors in your credit report, why some people add a consumer statement to their report.
Credit report and errors in credit reports:Information compiled by a credit bureau from merchant’s, utility companies, banks, court records and creditors about payment history of a customer is known as credit report, it is very useful in getting future credits from banks or any other financial source. Because of the credit bureaus all gather information from essentially the same sources, there may be as situation where error in one information may lead to error in credit report. The Fair Credit Reporting Act (FCRA) allows to challenge the error in credit reports, as the law requires that reports contain accurate information.
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Chapter 6 Solutions
Personal Finance Tax Update
- What notice given to the customer explains that we may report ingormation to the credit bureausarrow_forwardCompare secured and unsecured credit in your own words. Cite an example for each. You may place your answers on the comment section.arrow_forwardWhat is the difference between your credit report and your credit score? What is a good credit score? PLEASE CITE REFERENCES.arrow_forward
- Question: The credit worthiness of a customer is normally checked by the organization's Credit Control Department, before any credit sales is approved. reqiured: state why this process is important?arrow_forwardA credit bureau, AKA credit agencies, are companies that collect credit information about individuals. They then calculate a credit score for each individual based on this information. True Falsearrow_forwardWhat is the billing and collection process flow? Group of answer choices 1. If the customer is a new one or its existing credit is not sufficient, contact the customer and send a credit application. 2. Upon receipt of the completed application, obtain a credit report and decide if you will grant credit, and how much. 3. If you grant sufficient credit for the order, stamp the order as approved and send it to the shipping department. 1. A customer contacts the company with an order. 2. If the customer is an existing one, then you verify the amount of credit available. If the credit is sufficient, stamp the order as approved and send it to the shipping department. If the credit is not sufficient, go to the next step. 1. A customer contacts the company with an order. 2. If the customer is an existing one, then you verify the amount of credit available. If the credit is sufficient, stamp the order as approved and send it to the shipping department. If the credit is not sufficient, go to the…arrow_forward
- how to record credit sale in an entrie?arrow_forwardWhy is it important to review your checking account statement? What fees might this help you avoid?arrow_forwardProvide an example of each of the following; Conspicuous consumption Information you will need to fill out an application to rent an apartment A government agency you can contact to file a fraud complaint A way to prevent fraud on your credit card A way to protect yourself from identity theftarrow_forward
- You are developing the policies and procedures in relation to credit sales. What processes would you include in relation to preparing invoices, preparing journal entries for these invoices, authorising these journal entries and filing invoices for auditing purposesarrow_forwardIs it properly segragated? If no explain the reason why.arrow_forwardWhich one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of timearrow_forward
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