About real estate: Credit reports can differ
Many people are surprised to find that an up-to-date account may be listed on a report supplied by one credit bureau but is missing from a credit report provided by another.
Q. I followed your advice by ordering a free copy of my credit report from Experian a few months back and, more recently, obtained another free copy from TransUnion. A major account that I have in good standing appeared on the first report but does not appear on the new report from TransUnion. How can I get TransUnion to add this account to my file so my credit score will improve before I refinance?
A. Experian, Equifax and TransUnion easily are the nation's three largest credit bureaus. When an account appears on a report provided by one of them but doesn't appear on the others, the problem usually stems from one of two factors.
The first is the creditor itself may report account activity to only one bureau but not to the others. Credit-card companies, automobile financers and others have to pay a lot of money each year to belong to each of the bureaus, plus spend even more money to ensure that their own computer systems and reporting process meet each bureau's individual requirements. Paying such costs aren't a big deal for large banks or other major creditors, but smaller firms often report to only one or two of the bureaus instead of all three in order to save money.
The second factor involves special types of technical or business issues. It's not uncommon, for example, for a creditor to temporarily suspend its regularly scheduled reports to a bureau if it's merging with another firm. This allows the two companies to properly consolidate a borrower's credit record and then automatically resume reporting after the merger is finalized.
Call TransUnion's customer-service department at (800) 916-8800 to explain the problem and see if it's possible to have the “missing” account information added to your report. But again, if the creditor doesn't subscribe to the bureau's services, adding the info will be virtually impossible, because TransUnion has no legal authority to obtain it.
Q. I moved several hundred miles last summer to take a job in a new city. Are any of my moving expenses tax-deductible?
A. Most or all of the expenses should be deductible. Though there are a few exceptions, taxpayers can usually write off their unreimbursed moving costs as long as their new job and new home are at least 50 miles away from their old ones.
If you are eligible, your deductions would include the “reasonable” costs of food and lodging incurred while the move was in progress, as well as any fees paid to a moving company. If you drove your own vehicle, you're entitled to a 16.5-cents-per-mile deduction and also can write off any tolls or parking fees.
Check with a tax professional for details. Also, order a free copy of Internal Revenue Service Publication No. 521, Moving Expenses, by calling the agency toll-free at (800) 829-3676 or downloading it from the www.irs.gov website.
Q. I purchased a small home in a rural area last year for use as a vacation home, and was required to buy a flood-insurance policy because the property is located in a federally designated flood zone. A nearby stream overflowed in December and flooded my finished basement, ruining my carpet and the home's furnace. The insurer now says that my policy only covers the furnace and nothing else, which means I will have to pay several thousand dollars out of my own pocket to replace my damaged carpet. Is this true? If it is, what are my options?
A. I'm afraid you may be out of luck.
America's flood-insurance plan is operated by the National Flood Insurance Program, but the policies themselves are issued by private-sector companies. Although consumers can pay extra if they want to protect some of their personal possessions against flood damage, the NFIP and its network of insurers treat a finished basement a bit differently than other parts of a house, because a basement is the most likely area to get soaked in the event of flooding.
NFIP's guidelines state that the primary purpose of flood insurance is to cover a home's “foundation elements and equipment that's necessary to support the structure.” That includes the furnace, water heater and circuit breakers.
However, the rules say, “Flood insurance does not cover basement improvements, such as finished walls, floors, ceilings or personal belongings that may be kept in a basement.” So while your furnace is covered, your ruined carpet is not.
You can learn more about the coverage provided by the policy at NFIP's Internet site, www.floodsmart.gov, or by calling the agency toll-free at (888) 379-9531. The website and telephone representatives can explain how to appeal if you believe that your insurer has treated you unfairly.
Ÿ For the booklet “Straight Talk About Living Trusts,” send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 2960, Culver City, CA 90231-2960.
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