Under the Fair Credit Reporting Act, “Debt Validation” refers to the debtor’s right to ask the creditor to validate the debt which the creditor or the debt collector claims they own. It is one of the most effective weapons against the creditors who illegally claim any debt from the debtor either by sending a collection letter or by reporting the debt to the credit bureaus.
What is identity theft?
Credit score is actually a numeric three digit number which proves your creditworthiness to the lenders. It is a statement showing your credit transactions in the past seven to ten years and includes all open and closed lines of credit in your name. The credit report is mostly dependant on your repayment history i.e, your consciousness in repayment of the loans. This credit score is also called the FICO score as it was developed by Fair Isaac Corporation and is offered by the three major credit reporting agencies (also known as credit bureaus) of US – Experian, Transunion and Equifax.