Credit Report Questions and Answers
It is a written report (stored in computers comprised of the following information about your personal credit worthiness and debt repayment history.
•Identification by name, address, spouse's name, date of birth, Social Security number, telephone number, place of employment, mother's maiden name, etc.
•Credit inquiries - every time a subscriber (credit provider) runs a credit report on a consumer, a record of the file inquiry is made. It will remain on the file in most states for one or two years. This is of interest to creditors because it reveals recent credit activity.
•Information in public records and collection accounts are also collected by (or reported) to these agencies. Public records include courthouse records, bankruptcies, judgments, law suits, criminal records, etc.
•Credit history - which includes the name and ID number of each subscriber who makes a report and your credit/debt repayment history. Also included is the date an account was opened, credit limits, current balance, monthly payment amount and payment frequency for the last 12-24 months. Records are dated with each request of entry. Other information includes, but is not limited to, consumer disputes, criminal convictions, individual liability or joint liability of accounts, co-maker or guarantor of payment on a certain account, secured accounts and charge offs (when a creditor has reported an unpaid balance as a loss).
•Consumer statements - a statement, not to exceed 100 words, regarding any account(s) an individual may wish to more accurately and completely explain, often very helpful to credit decisions.
When is a credit file created?
Usually when you make application for a loan or credit card or when a party who extended credit makes a report to their credit reporting service on your debt repayment.
Who can legally look at my credit report?
Credit reporting agency subscribers comprised of banks, other lenders, merchants extending credit, life insurance companies, companies on employment applications, rental leasing, security clearance, etc. may not access an individual's credit record unless disclosure is made that a credit report will be requested and in many instances must receive authorization from the consumer. This authorization is standard procedure when you sign an application in any of the above transactions. Read the fine print on the applications for more details.
How often should I look at my credit report?
If you are actively using credit, using one or more credit cards with monthly or bimonthly charge activity, have installment loans(s), vehicle lease, etc. review your credit file every nine to twelve months, otherwise every 15 months is adequate.
What if I need help?
Avoid any type of credit repair firm or service. Do it yourself instead. It is easy and inexpensive.
Showing posts with label Credit Cards. Show all posts
Showing posts with label Credit Cards. Show all posts
7 Ways To Protect And Improve Your Credit Rating
1 - Order Your Credit Report.
Your credit score is based on your credit report, so you should begin by ordering your reports and reviewing each one for accuracy. You can get your reports from a service such as MyFico.com, or order from Equifax, Experian and Trans Union separately online or by phone.
2 - Check Your Credit Report Information for Inaccuracies.
Check the identifying information for name, social security number, birth date and incorrect address. Make certain that old negatives and paid-off debts are deleted. Check for accounts and delinquencies that are not yours, late payments, charge offs, lawsuits, judgments or paid tax liens older than seven years old. Also, paid liens or judgments that are listed as unpaid, duplicate collections, bankruptcies that are older than ten years and any negative information that is not yours.
3 - Always Pay Your Bills on Time.
Payment history makes up more than a third of the typical credit score. If you paid bills late in the past, you can improve your credit score by starting to pay your bills on time. Lenders are looking for any sign that you might default, and a late payment is a good indicator that you are in financial difficulty.
4 - Keep Credit Cards Balances Low.
Carrying smaller balances is the best way to increase your credit score. The score measures how much of your limit you use on each credit card or other line of credit, and how much of your combined credit limits you are using on all your cards. Within 60 days, paying down credit card balances can increase your credit score by as much as 20 points.
5 - Try Not to Open In-Store Credit Cards.
Although your first credit accounts can serve to build and improve your credit history, there comes a point when each subsequent credit application can reduce your score. New credit cards reduce the age of your credit history, and a department store credit card isn’t good evidence of credit worthiness. Every time you apply for a retailer’s credit card your credit store gets dinged.
6 - Be Conservative When Applying For Credit.
Having at least one credit card that’s more than 2 years old can help your score by 15 percent. Make sure that your credit report is checked only when necessary. Or, if you are shopping for a home, try to apply for loans within a two-week period. By keeping the loan process within a two-week period, all of the credit report lookups are seen as one single request.
7 - Don’t Close Credit Cards or Other Revolving Accounts.
Shutting down unused accounts that have outstanding balances without paying off the debt changes your “utilization ratio,” which is the amount of your total debt divided by your total available credit. It will reduce the gap between the credit you are using and the total credit available to you, and that can hurt your credit score.
Your credit score is based on your credit report, so you should begin by ordering your reports and reviewing each one for accuracy. You can get your reports from a service such as MyFico.com, or order from Equifax, Experian and Trans Union separately online or by phone.
2 - Check Your Credit Report Information for Inaccuracies.
Check the identifying information for name, social security number, birth date and incorrect address. Make certain that old negatives and paid-off debts are deleted. Check for accounts and delinquencies that are not yours, late payments, charge offs, lawsuits, judgments or paid tax liens older than seven years old. Also, paid liens or judgments that are listed as unpaid, duplicate collections, bankruptcies that are older than ten years and any negative information that is not yours.
3 - Always Pay Your Bills on Time.
Payment history makes up more than a third of the typical credit score. If you paid bills late in the past, you can improve your credit score by starting to pay your bills on time. Lenders are looking for any sign that you might default, and a late payment is a good indicator that you are in financial difficulty.
4 - Keep Credit Cards Balances Low.
Carrying smaller balances is the best way to increase your credit score. The score measures how much of your limit you use on each credit card or other line of credit, and how much of your combined credit limits you are using on all your cards. Within 60 days, paying down credit card balances can increase your credit score by as much as 20 points.
5 - Try Not to Open In-Store Credit Cards.
Although your first credit accounts can serve to build and improve your credit history, there comes a point when each subsequent credit application can reduce your score. New credit cards reduce the age of your credit history, and a department store credit card isn’t good evidence of credit worthiness. Every time you apply for a retailer’s credit card your credit store gets dinged.
6 - Be Conservative When Applying For Credit.
Having at least one credit card that’s more than 2 years old can help your score by 15 percent. Make sure that your credit report is checked only when necessary. Or, if you are shopping for a home, try to apply for loans within a two-week period. By keeping the loan process within a two-week period, all of the credit report lookups are seen as one single request.
7 - Don’t Close Credit Cards or Other Revolving Accounts.
Shutting down unused accounts that have outstanding balances without paying off the debt changes your “utilization ratio,” which is the amount of your total debt divided by your total available credit. It will reduce the gap between the credit you are using and the total credit available to you, and that can hurt your credit score.
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