Understanding Data Facts Inc. on Your Credit Report

Data Facts Inc. gathers information and conducts background checks for companies looking to verify new job applicant details. Credit reports, professional credentials, social media profiles, and criminal records are all part of the data checks.

Universalis, a consumer information services corporation, bought the lending and appraisals divisions from Data Facts in 2021.

A potential boss, creditor, or lender may be using Data Facts Inc. for a background check if it appears on your credit report.

Could Data Facts Inc. Be a Scam?

Data Facts Inc. is a legitimate company established in 1989, and their appearance on your credit report indicates that a creditor has hired them to conduct a credit check on you.

If there’s some activity on your report pertaining to Data Facts Inc. which should not rightfully exist, there is a possibility that you have fallen victim to fraud or identity theft. 

Why has Data Facts Inc. Appeared on My Credit Report?

You may see Data Facts Inc. on your credit report listed as an inquiry. There are two possible reasons why you could have a Data Facts inquiry:

1. A company has run a credit check

Prospective creditors and lenders hire companies to run credit checks on debtors to decide whether they’re a good or bad credit risk and whether a credit contract should be given to them. Inquiries appear on your credit report in two ways; hard inquiries and soft inquiries. 

Reports received by them may include certain types of details, varying on the screening process and why a background check is being done.

2. It’s a reporting mistake.

It is likely that credit bureaus or Data Facts have made an error by mistaking you for someone else, which is why it may show up on your credit report as an inquiry. If there’s no explanation that justifies Data Facts on your report, then there may be a possibility that your identity has been stolen.

Take the following steps if you’re having doubts about someone trying to open fraudulent Macys/DSNB accounts in your name:

• Contact Data Facts Inc, who most likely made the hard inquiry (unless a third party was hired to conduct the inquiry). Ask for details such as under what circumstances were the inquiry authorized, as shown in their records.
• Report the cybercrime to FTC (Federal Trade Commission). Generate an identity theft report and a recovery plan via www.identitytheft.gov. 
• Place a fraud alert on your credit report by contacting any of the three major consumer credit bureaus; Experian, Equifax, or TransUnion. You may additionally want to lock or freeze your credit.

Regularly monitor your credit reports to observe and catch any suspicious or fraudulent activity at the earliest.

In case the inquiry is an error, take the following measures stated below to get rid of Data Facts from your credit report.

How Will Data Facts Inc Impact My Credit Score?

There are a number of ways in which Data Facts Inc. will have an effect on your credit score, varying from credit check inquiries to management of your account(s). The two types of inquiries are:

Hard Inquiries

A hard inquiry is likely to have a short-term impact on your credit score, bringing the FICO score down by about five points and VantageScore by five to ten points.

However, several hard inquiries can harm your score as the effect is cumulative. The extent to which Data Facts pull down your credit varies on your credit history and the timeliness of the inquiry.

A hard inquiry will usually result in a small decrease in your FICO and VantageScore credit scores, but this effect will not last for over a year. Furthermore, these entries do not stay on your report for more than two years.

Soft Inquiries

 A review of your credit report, creditors evaluating current accounts, and potential lenders pre-screening your report without your permission are known as soft inquiries on your report. As claimed by the CFPB, these inquiries do not impact your score as they indicate that you’re not in search of new credit.

The differentiation between a hard or soft inquiry is not easy as credit checks are done by a landlord can trigger both, a hard or soft inquiry through applications for new lines of credit almost always pull a hard inquiry, and insurance or employee screening usually triggers only a soft inquiry.

How Can I remove Data Facts From my Credit Report?

Professional credit repair agencies such as Lexington Law specialize in removing negative entries and inquiries from your credit report. With over 18 years of experience, the professional credit repair service has disputed over seven million negative items in 2020. 

It is advised to contact Lexington Law for a free consultation if you want to remove a collections account or dispute the erroneous items from your credit report at the earliest.

Reach out to Data Facts Inc, the source for the hard inquiry, to find out about the application that caused this. All credit bureaus which have dated information regarding your credit report should be informed and disputed to investigate your claim and make the necessary updates. It typically takes a month for bureaus to look into the declaration.

You may have to write a goodwill or dispute letter addressing the creditor and elucidate why the negative entry appears on your report or if you think fraudulent activity has taken place. Also, consider filing a complaint with the FTC.

It is recommended by the Consumer Financial Protection Bureau (CFPB) that you provide a copy of your report with the error highlighted. It is also mandatory to provide important documentation while filing a dispute to support your claim.

Monitoring your credit using fee-based services or acquiring a copy of your complete credit report annually from annualcreditreport.com will help you deal with potential fraud and identity theft cases.

Keep a close eye out for scammers, as credit restoration companies are not permitted to charge you before offering their services. If you are asked to pay upfront, consider hiring a different company to do the work for you.

Appointing a credit restoration agency may prove to be time-efficient and will save you the hassle of disputing negative entries from your credit report; they will not always be able to eliminate valid inquiries on your report or change a bad credit score to a good one in a day.

Conclusion

The appearance of Data Facts Inc on your credit report means that a creditor or credit repairing company has used Data Facts Inc. services to conduct a background check on your report to determine your creditworthiness. A hard inquiry appearing on your report as a result of their services will automatically disappear after two years. However, it can cause a minor and temporary drop in your credit score.

Data Facts Inc can be taken off your record history by disputing the erroneous entry with one of the three major consumer credit bureaus or Data Facts themselves. You can additionally hire a credit restoration company to do the work for you.