Have you recently come across the name Fact Data on your credit report and wondered what it was? Factual Data is not a lender or service provider like some other entries in your report. Instead, it’s a company that does credit checks for lenders. If you have applied for a mortgage or other type of loan, your application may be responsible for Factual Data’s in-depth investigation.
Factual Data Credit Request
Factual Data Corp. (FDC) is a credit reporting agency employed by lenders to obtain credit reports of potential borrowers from Experian, Equifax and TransUnion. It may appear on your credit history as Kroll Factual Data, Inc. or Kroll Factual Data.
FDC most often provides mortgage lenders with merged credit reports, which combine information from all three bureaus into one comprehensive document. In fact, the company’s website claims that it provides risk mitigation, credit reporting, and independent verification services using things like public records.
It verifies information using your social security number and reviews credit information from FICO scoring models, which includes new credit and credit history. The company provides risk mitigation by automating the underwriting process in the United States
Lenders use this information and the FDC credit report to decide whether or not to give you a loan. If a lender approves your loan or credit application, the data also helps determine the interest rate you are granted.
FDC also runs soft credit inquiries for potential employers and homeowners to verify identity, background and credit score. Below is a closer look at the difference between soft and hard inquiries.
How does a rigorous credit check affect your report?
There are two types of credit inquiries. Informal requests, as described above, simply check your score. Lenders may initiate soft inquiries when you apply for a job or apartment, but they also appear on your credit report when you’re prequalified for a loan or check your credit score. A soft inquiry does not harm your credit, whereas a serious inquiry might.
Each time you apply for a loan, a lender requires a more invasive and thorough credit check, which is a difficult investigation. Lenders use your credit history to determine the reliability of your borrower. As such, they may obtain one or all of your credit reports as part of the screening process or a merged FDC credit report.
A creditor or lender adds this type of request to your report, and it could stay there for two years. Serious requests usually drop your score by a few points, but they can be more detrimental if you have several in your report. Having a multitude of credit applications suggests that you are financially unstable. This lowers your score more significantly than a single entry.
There are a few exceptions, such as when doing mortgage comparisons. You have a 14-day window to apply for similar loans, during which time individual applications should not lower your score.
How to remove FDC Corp. of your credit report
As you can see above, a serious request for the FDC is not detrimental to your financial goals. However, if FDC Corp. appears on your report in error, you should do what you can to have the serious claim removed from your credit report.
Here are some strategies to help you start fixing the problem:
Challenge the FDC’s serious investigation
When a reporting error results in a negative entry on your credit report, it’s critical to act quickly. The Fair Credit Reporting Act (FCRA) covers you in situations like this and requires credit reporting agencies, like the FDC, to get their facts straight.
You can dispute the error by contacting FDC and the credit bureaus. If the FDC conducted a thorough investigation of your credit history that negatively impacted your score, the FCRA requires companies to provide you with the details and a copy of the report. By law, you have 30 days to dispute an inaccurate entry on your credit report, so you should act quickly if you think something is wrong with your report.
To stay alert to changes to your report, sign up for a free credit monitoring service. These companies notify you when new entries appear on your report and let you know when your score changes for some reason.
Get help from a credit repair company
With the tools and resources provided by the FCRA, you are fully equipped to dispute an inaccurate entry on your credit report, but you don’t have to do it alone. Sometimes it can be easier to leave disputed entries to experienced representatives.
A good credit repair company can help you correct reporting errors, break down your credit report, and develop a game plan to fix your biggest credit problems to improve your score fast.
To give you an idea, here are some of the types of problems that credit repair companies face:
- Collection entries
- Identity theft
- Inaccurate reports
- Bad payment history
If you don’t want to go through the stress of dealing with credit reporting agencies, contact a reputable credit repair company to take care of it.
FDC contact details
You can contact FDC at the address or telephone number below:
5100 Hahns Peak Dr.
Loveland, CO 80538
Phone number: 970-663-5700
Have FDC removed from your report
If you’ve applied for a mortgage and are worried about the impact on your credit score, you don’t have to worry. While this may lower your score by a few points now, the entry will be removed from your report in two years and its effects on your score will lessen over time.
If you haven’t applied for a loan and FDC is on your report anyway, you still don’t need to worry. You are legally protected against inaccurate reports and in a few simple steps you can have the FDC removed from your report.
If you haven’t already, take a few moments to review your score and preview your report with a credit monitoring service. Don’t delay in challenging any inaccuracies in your report, no matter how small they may seem. There’s no reason to let bad reports keep you from taking out a loan or getting a credit card in the future. As always, remember that you have several excellent credit repair companies that can help you take your credit score to the next level.