Archive for March, 2009
Tuesday, March 31st, 2009
Frequent monitoring of our personal credit report is vital to ensure
protection from identity theft. Sadly, many people feel invincible. Thus,
they do not take the necessary steps to protect their credit rating.
However, preventing identity theft can be as simple as checking your
credit report twice annually. This way, if unfamiliar accounts are present,
you can contact the credit bureaus and begin an investigation.
Purpose of Credit Reports and Scores
If you have established a credit history, then you likely recognize the
value of credit reports and scoring. Without these two instruments,
lenders would be unable to judge a loan applicants credit worthiness.
Credit reports and scoring alert lenders to individuals who use credit
irresponsibly, and those who make smart credit decisions. Thus, before
issuing a credit card or approving a loan application, all creditors will
attain an updated copy of your credit report.
Reasons to Monitor Your Credit Report
Credit report monitoring should not be ignored. When it comes to
identity theft, anyone can become a victim. In order for someone to open a
credit account is your name, the only information they need is your name,
address, and social security number.
In some instances, locating this information is simple. Some fraudulent
persons steal pre-approval credit card applications from mailboxes,
whereas others rummage through garbage cans looking for personal account
information. Unless you obtain a copy of your credit report and check
for inaccuracies, fraudulent credit accounts will go undetected.
How to Get a Copy of Your Credit Report
Getting a copy of your personal credit report is simple. All consumers
are entitled to one free credit report annually. However, you may check
your credit as often as you like. If you have internet access, it is
possible to obtain a 3-in-1 report online. Reports are viewable online.
Therefore you do not have to wait for a mailed copy.
Those without internet access may attain copies of all three credit
reports from local credit bureaus. On average, credit reports cost about
$15 each. When checking reports for errors and inaccuracies, it is
important to review reports from each of the three bureaus. Why? Some
creditors do not report to all three bureaus. Hence, a credit mistake may
only be included on one report.
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Friday, March 27th, 2009
If you have taken the time and obtained your credit report regarding your credit score and finances from a credit report agency then it is essential to know how to read a credit report properly so that you gain the maximum amount of information from it in order to determine your credit worthiness.
As this information is freely available to any financial products company or lender that needs to know about your finances it is essential that you check your report carefully in order to verify that all the information is not only correct, but also up to date and relevant. That way you know that you have the best chance of getting the financial credit that you want and are able to get the best interest rates and loan deals.
Knowing how to read a credit report is actually fairly straightforward. There are five main parts to it, your address and general information, anything concerning your finances that is held in public records, information from any debt agencies, credit accounts and any requests for information that they have had for you. You should check all of these sections very thoroughly to make sure that all the relevant details are correct and up-to-date.
If you find anything on the credit report that is not correct, you should notify the credit report company immediately so that they can amend the details. This is very important as anything on your credit report that is incorrect could have an adverse effect on any of your applications for financial products that you currently have submitted or applied for to a lending institution. And as such, you should correct it as soon as possible and also let the credit or financial company that you are applying to know that you have submitted for an error correction and what actually is incorrect on the credit report companies information in regards to your financial situation.
Credit report companies use a lot of abbreviations in their credit scoring information and it is a good idea to ask them to give you a list of the abbreviations and what they mean so that you can read the report more easily and effectively. This is the best way to ascertain exactly what they’re talking about and referring to in the credit report. Although some things may seem unimportant and irrelevant, it is worth checking everything to make sure that no mistakes have been made that can adversely affect your credit history. If you know how to read a credit report then this is a lot easier and quicker.
Finding out how to read a credit report may seem a bit unnecessary, but it is always a good idea to make sure that all the information that the credit agencies keep about you is up-to-date and not misleading to any potential lender. Failure to do so could prevent you from receiving favorable treatment when seeking approval on a future credit or loan application. If you do this on a regular basis it will make your financial dealings a lot simpler and assist in receiving favorable interest rates on your next credit or loan application.
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Thursday, March 26th, 2009
Your credit report is a very powerful report that essential controls what you can and cannot do in your life. Unfortunately many people arent aware of what a credit report actually is and what information is contained on the report. This article breaks down what is contained on your credit report and tells you everything you always wanted to know about your credit report but were afraid to ask.
Your credit report is nothing more then a very detailed snapshot of your financial history that is furnished to anyone supplying you credit from the credit bureau. There are three main credit bureaus that handle a majority of these credit report request. They are Experian, Equifax and Trans Union. Each of these organizations are private in nature and routinely furnish your credit information when asked to do so for a fee.
Generally speaking the credit reports provided by the credit bureaus are very detailed and very accurate. For instance its not uncommon for them to have information regarding missed payments as far back as 6 or 7 years. They collect this information in order to provide it to creditors prior to their providing any form of credit to a consumer seeking credit. The creditors can use the information they receive to determine if that same consumer can be considered a good credit risk. A good rating allows for more favorable credit terms while a poor rating essentially ends any chance for a consumer to obtain credit in the first place.
The amount of time that a blemish (such as a missed credit card payment) stays on your credit report can vary but normally these negative items are deleted after 7 years thanks to the Federal Fair Credit Reporting Act. Bankruptcies are another matter entirely and they normally remain in place for up to 10 years. Keep in mind that credit inquiries stay on your credit report for 2 years so closely monitor the number of times you apply for credit since a high number of inquiries can be viewed in a negative manner.
Until recently in order for a consumer to view their credit report they had to order a copy from one of the three main credit bureaus and pay a small fee. However new laws now allow for 1 free credit report every year to any consumer that wishes to see their credit report.
The power of your credit report is incredible. Even if you have built up a positive credit report any missed payment no matter how small the amount can result in a denial of credit. The best advice most credit can give is to stay current on your entire monthly financial or reoccurring obligations and dont overextend yourself financially.
Hopefully this quick article answered a few of your questions regarding your credit report. More detailed information can be found in various locations throughout the Internet. Dont forget to request your free copy of your credit report so you can see where you stand in the eyes of future potential creditors.
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Wednesday, March 25th, 2009
Almost everyone knows that they should be regularly checking their credit report. Your historical report of your credit usage and current situation, as well as the historical trend that led up to this point in your credit life is what your credit score is based upon. It is actually quite a bit more complex than that, but those are the factors that to a large extent you have the most control over and you need to watch.
But part of that vigilance is avoiding credit surprises, especially when you have a big ticket item in your sights, such as a new car or a mortgage. The last thing you need to have happen when you are ready to sign on the dotted line and be given the keys to that new car or new house is to find out there is a minor problem with your credit that needs explaining, or even worse, which can sour the whole deal.
In these days of tightening economics, one of the things that is happening is that some credit card companies are lowering the credit limit on some customers. On the surface, that does not seem like it would be a big deal, until you start looking under the hood to find out what that really means for you if your credit card companies do that to you.
One of the major factors that impacts your credit rating is your responsible use of credit. The maximum number of points are given if your payments are on time of course, consistently, and that is followed closely by keeping your outstanding balance to be no more than about 25% or so of your credit limit. If it is less than that, sometimes they determine that you are not using credit enough to really make a determination, and if you are using more than that or even are very close to your credit limit, you get negative points because you do not have credit available for emergencies or contingencies.
Now if your credit limit on a particular credit card is say $3000 and your outstanding balance is around $750, that is 25% of your credit limit and you fall into a very comfortable category. But say that credit card issuer lowers your credit limit to $1500, so that with that same $750 outstanding balance, you are now using 50% of your available credit, not 25%, and your credit score will suffer. Now multiply that same scenario times a half dozen or more credit accounts you may have open, and your credit score could drop a significant number of points almost overnight.
In today’s economy, a good credit score is required to get the best lending rates, and what determines a good credit score has actually gone up in recent times. This is particularly true for bigger ticket items such as cars and mortgages. Any lender who is loaning money for something these days needs to assess their risk, and as they continue to raise their standards of what they determine as acceptable risk, it is becoming more difficult to keep your credit score rising to meet those requirements for the point in time where you need to utilize them.
Your best bet overall is to keep a close eye on your credit report so that you know every minute what is being reported there. The majority of consumers have errors in their credit reports, and the only way those ever get corrected is that if you notice the error and report it. When you are in the process of applying for a loan or mortgage is not the time to start working on your credit report; rather, the time to start doing that is way BEFORE you apply for a loan or mortgage so that things can go as smoothly as possible at that point.
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Monday, March 23rd, 2009
Is it possible to get a no cost credit report? Yes, definitely. This is a good news to people who have serious credit score issues. Perhaps, you’re wondering what your credit score is. Perhaps, you’re considering taking out a loan for a new business or a new car, but you don’t know if you would qualify. You really don’t want to go through the hassle of applying for a loan just so you’d get rejected. You could avoid it by knowing your credit score before you even enter the doors of the credit agencies.
Getting it for free can be overwhelming when you don’t know where to go and how to get it.
It is very important for consumers to check on their credit every year. They do not remain constant. You cannot expect to have the same credit score five years after you last checked. This could cost you your job or your house. Knowing your credit score is crucial. Luckily, it is now available to you at no cost at all. Indeed, you can get your totally free credit report online.
Every citizen is entitled to their no cost credit report every year. You can get them from the country’s three major credit agencies. Before you can get it for $9.50, but these days, Equifax, Experian and TransUnion are required to provide Americans their free reports once a year.
No, you will not get them automatically. You still have to file a request in order to get your copy. You can do this in three ways:
1. You can go directly to annualcreditreport.com, the only authorized consumer source online in order to access your no cost credit report.
2. You can get your free report via phone by calling (877) 322-8228
3. You can request via mail by sending in your request and mailing it to Annual Report Request Service.
Your report is the basis of your credit score. Once you have sent in your request, you can expect to receive it within a reasonable time. You’d get a summary of your payment history, balances, payment behavior and accounts listing. What you get is not automatically your credit score. However, credit agencies would base your credit score from your it. The better it is, the higher is your credit score. If it reflects bad accounts or worse, bankruptcy, you’d likely have bad credit score as well.
When you receive your free report, it is very important that you check for disputable accounts and items. Make sure that it is accurate. Otherwise, you would be saddled by these accounts. You will not be able to easily secure a loan. You could lose your home over an inaccurate reporting.
Nowadays, no cost credit report is available to everyone. It is your right to avail of them so you’d know how you stand financially. Your report could mean a huge difference between having a difficult or easy financial life.
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In order to make the required information easily available, we are providing credit related information about credit reports, credit scores, credit monitoring, credit checks, credit cards, free credit reports, credit bureaus, credit counseling, identity theft, and other credit problems in an easy format so that people don’t have to go from site-to-site looking for answers.