Checking your credit report regularly has many advantages. You can see your current credit scores and entries in your credit history in real-time, so you’ll have an opportunity to investigate or dispute anything you’re not familiar with. Don’t ignore unauthorized credit inquiries.
Your credit report includes credit checks and accounts, along with your payment history, account balances, and other pertinent information. If you notice an entry from a source you don’t recognize, such as Xactus or Avantus LLC., don’t ignore it. Mistakes happen, but they could also indicate that someone stole your identity.
Experian, Equifax, and TransUnion are the three major credit bureaus in the U.S. Consumers have different ways to check their credit scores and reports, and many of them are free. Besides obtaining them from the credit bureaus directly, you can also use services like AnnualCreditReport.com and Credit Karma.
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What Is Avantus LLC on My Credit Report?
Avantus LLC and a few other companies rebranded as Xactus recently. If you see Xactus or Xactus Avantus on your credit report, that company probably provided a background check to a financial institution or another third party.
Is Avantus LLC a Scam?
Xactus, or Avantus LLC, isn’t a scam. Avantus is a legitimate company that is over 75 years old, but it isn’t accredited by the Better Business Bureau.
Xactus’s board of directors includes some prominent people, from Paul Ryan (former Speaker of the House) and John Dalton (former Secretary of the Navy) to Steve Ozonian (President and CEO of Williston Financial Group) and Robert Belke (managing partner of Lovell Minnick Partners).
Why Is Avantus LLC on My Credit Report?
Avantus is a credit reporting agency used by lenders to provide consumer information connected to mortgage applications. The company also offers similar services to third parties, including:
- Employment verification
- Social security number verification
- Soft credit inquiries
- Tax return verification
- Tenant screening
- Two-factor authentication
There are several reasons you might see Avantus LLC, Xactus Avantus, or Xactus on your credit report. In this article, you’ll see each of those names. Xactus.com is the official website for these company names, along with Credit Plus, Universal Credit, CIS Credit, DataFacts Lending, and SharperLending.
Avantus Checked Your Credit on Behalf of a Lender or Other Third Party
Many lenders use Avantus to assist with credit checks when people apply for a loan. However, some financial institutions also request credit checks prior to sending offers of preapproved credit.
Employers and landlords may also use Avantus to screen applicants. If you’re unsure why Avantus reviewed your credit report, contact them to see who asked them to initiate the inquiry.
If you don’t recognize that party, contact that company or person to further investigate why you’re seeing Xactus on credit report data.
A Clerical Error Exists
If you notice an inquiry from Xactus Avantus on your credit history, it may be a clerical error. Entering even one wrong number can place this on your report instead of the appropriate party’s.
Identity theft can happen to anyone. A criminal can pretend to be you in order to borrow money or make purchases in your name with your resources. They may apply for credit cards or auto loans while pretending to be you, for example.
Fiscal Tiger provides information about identity theft at FiscalTiger.com and outlines steps you should take if you suspect that you are a victim below.
You Are an Authorized User on Someone Else’s Account
At times, lenders update their records about consumers who have credit accounts with them. Some types of accounts, like credit cards, allow primary cardholders to add others to their account as authorized users. Common examples are:
- Business partners or employees
If you’re an authorized user on an account and a lender does a periodic credit scan of the primary account holder’s report, that inquiry may show up on yours as well.
Contact Xactus to find out if they initiated an inquiry on your credit score and history because you’re an authorized user, and find out who that authorized user is to verify.
How Does an Avantus LLC Inquiry Impact My Credit Score?
Avantus LLC, Xactus, and other parties can perform two types of inquiries into your credit, and each has a different effect on your credit score. If Avantus or Xactus initiated a hard inquiry, your score may drop by up to 10 points. If Xactus on credit report information shouldn’t be there, dispute it.
When consumers apply for credit like a mortgage, personal loan, auto loan, or credit card, lenders check their credit score and history to see if they are creditworthy. Hard inquiries indicate that you are actively pursuing borrowing money.
Numerous hard inquiries in a short span can negatively impact your credit score because it shows that you’re probably having cash flow problems. Hard inquiries stay on your report for two years, but their negative effect typically only lasts for one year.
Consumers often shop for the best rates and terms when buying a car, for example. You may authorize a few lenders to perform a hard credit inquiry for that purpose. Your credit score may consider several auto loan inquiries within a short time as being just one inquiry.
Soft credit pulls don’t affect your credit score and are only indications that someone viewed your credit report. Avantus LLC or others can request a soft credit check without your knowledge or consent.
How Can I Remove Avantus LLC From My Credit Report?
If Avantus LLC appears on your credit report and you need to remove the entry, you can contact the company directly.
Address: 70 Jefferson Blvd., 4th Floor
Warwick, RI 02888
Email: [email protected]
There are other ways to remove an inaccurate entry from your credit report.
- Compose a credit inquiry removal letter or use a template, then submit it to a credit bureau.
- File a dispute with Xactus, the company that used them for checking your credit, and the credit bureau that included the entry on its report.
- Use a reputable credit repair company.
- Report identity theft as outlined below.
How Can You Report Identity Theft?
IdentityTheft.gov is a U.S. government official website operated by the Federal Trade Commission to help consumers who are identity theft victims. Use its online form or call (877) 438-4338 to report identity theft as one of your first steps if you discover fraudulent activity on your credit report.
You should also place a fraud alert with one of the three major credit bureaus:
- Experian: Call (888) 397-3742 or visit Experian.com/help
- Equifax: Call (800) 685-1111 or visit Equifax.com/personal/credit-report-services
- TransUnion: Call (888) 909-8872 or visit TransUnion.com/credit-help
You don’t have to contact all three bureaus. Law requires any of these companies to share fraud reports with the other two and to respond to all disputes.
Your fraud alert lasts for a year, but you can renew it if needed. There is no charge for this service.
Closely monitor activity contained in the credit reports from all three bureaus. You’ll be able to spot and report fraudulent entries quickly.
You can also report identity theft to your local police or sheriff’s department. Ask for a copy of the report they make to include in your files.
What If Avantus Supplies an Inaccurate Report to a Lender or Other Third Party?
Xactus creates a report for lenders using information they obtain from the three credit bureaus. If Xactus Avantus makes an error when compiling its report on you, it could result in a lender denying your loan application. Similarly, an inaccurate report could cause you to be rejected for employment or tenancy.
The Fair Credit Reporting Act gives consumers the right to dispute inaccurate entries on reports made by Avantus or other consumer reports. Xactus has 30 days to perform an investigation and correct mistakes they made.
If a credit report including false information prevented you from getting a loan, consider asking an attorney who is familiar with the FCRA if you have any legal recourse.
Can a Credit Repair Company Help You?
You can do everything that a credit repair company would do for you, but those tasks often take time, patience, and effort. These companies are more familiar with credit scores and reports and how to resolve disputes than the average consumer, but you’ll need to decide if you want to hire one.
Credit repair companies must follow strict legal guidelines as found in the Credit Repair Organizations Act. They can’t lie about the scope of what they can do to help you, and they can’t bill you in advance. They also have to supply you with a written contract that specifies:
- Your legal rights
- The services they agree to perform for you
- When you can expect the results
- Your total cost
- Your right to cancel within three days
- A written cancellation form
- Any guaranteed results
Unfortunately, many scammers posing as legitimate credit repair companies make unrealistic promises and take advantage of consumers. However, here are some reputable organizations that can provide assistance:
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