Making Sense Of The Information In Your Credit Report
|
If you've ever applied for a credit card or loan, you'veprobably had your credit report reviewed by the lender. Yourcredit report has a huge impact on your financial future, soit's well worth your time to be sure that you understand whatyour credit report says about you.
Even if you're not interested in obtaining credit, yourcredit report can impact other areas of your life. Potentialemployers view your credit report to assess yourtrustworthiness as an employee. Landlords frequently checkthe credit reports of their tenants before allowing them tosign or renew their lease.
You can request copies of your report from the three majorcredit bureaus: Equifax, Experian, and TransUnion. A recentamendment to the federal Fair Credit Reporting Act requireseach of these national consumer reporting companies toprovide you with a yearly free copy of your credit reportupon your request.
Basically, your credit report is a summary of how you payyour bills; repay loans; how much credit you have available;what your monthly debts are; and other types of informationthat can help a prospective lender decide if you are a goodcredit risk.
Your credit report is made up of several sections. The firstsection contains personal identifying information such asyour name, current and previous addresses, social securitynumber, telephone number, birth date, and your current andprevious employers.
Your bill paying history with banks, retail stores, financecompanies, mortgage companies, and others who have grantedyou credit is one of the most important parts of your creditreport.
Public records that might indicate your credit worthiness,such as tax liens, court judgments, and bankruptcies are alsoincluded in the section detailing your credit history.
Your credit report includes a comprehensive listing of allcredit granters and other individuals who have received acopy of your credit report. In addition, lists of companiesthat have received your name and address in order to offeryou credit are also included in your credit report.
Most credit bureaus allow both the consumer and the creditorto make statements if there is a dispute about something onthe report. If applicable, your credit report will includethese dispute statements.
Your credit report does not include bank account balances,race, religion, health, criminal records, driving records, orannual income. You've probably heard about a FICO creditscore as well. Credit scores are based on formulas that usethe information in your report, but they're not consideredpart of your credit report.
Problems with your credit report will result in you eitherbeing denied credit or receiving a higher interest rate. Redflags on your credit report include excessive applicationsfor additional credit, a short credit history, a high debtratio, and late payments to previous creditors.
In most cases, negative information will stay on your reportfor seven years. However, bankruptcy information stays onyour credit report for ten years.
To help improve your credit report, always remember to closeunused accounts, pay your bills on time, never use all ofyour available credit, and don't apply for unnecessarycredit.
Copyright (c)2005 by Michael Ambrosio. You may publish this article on your site or in your newsletter provided thisresource box remains in tact. Michael Ambrosio is the authorof many credit related articles. Visit his website today:http://www.yourcreditandyou.com and rebuild your credit.
|
|
|
Finding The Right Credit Card
There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than the hundreds of others you've seen? Take this little quiz to find out what you should look for in a card. First, Are You a Student? If you are, th...(related: Credit)
Repair Your Credit - The Right Way!
How to Repair a Bad Credit Rating?The Right Way!If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that. It's not as difficult as you might think to get by with a bad credit rating; with a little...(related: Credit)
Your Credit Score
Credit scores: all lenders use credit scores to determine interest rates and credit limits.The credit scoring system was developed in the early 1950's. However, it was not widely utilized until the early 1980's, when it was overhauled by Fair, Isaac & Company. At that time the 3 major credit reporting bureaus, Equifax, Experian and Trans Union, worked with FICO to create three separate credit models, one for each bureau.These agencies still use their own criteria to rate credit holders but the numbers have been normalized so that a score of 650 at Bureau A is equal to a score of 650 at Bureau B, etc.Simply put, a credit score is a mathematical equation calculated by the review of a poten...(related: Credit)
Getting Your Credit Report And Understanding Whats On It
If you intend to apply for a loan, you need to obtain your credit score. Understanding what this score means will allow you to make the loan process easier and quicker. Let's face it; most people want the loan process to be as painless as possible. Obtaining and understanding your credit score will help you see potential problems and perhaps eliminate them before you begin the loan process.There are three different Credit Bureaus from which you can obtain your credit score. These are Experian, Equifax and Trans Union. Each of these companies applies a different f...(related: Credit)
Bankruptcy Vs. Credit Counseling: What Should I Do?
Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan ...(related: Credit)
Building Business Credit
Most businesses want to be able to borrow money when they need it, without the owners having to guarantee the loans personally. This means less risk to the owners. But wanting to get credit for your business and actually getting it can be two different things.One company recently approached us because over the past two years they had created a successful business, with over twenty employees. But they couldn't get a business loan because they hadn't taken the time to build a business credit profile and didn't know where to start.You may have seen marketing hype about how a business credit profile can overcome a bad personal credit file. In most cases, however, it's important that small businesses have bot...(related: Credit)
Our World Of Credit Cards! Which One Is Right For You
There are not many of us who do not have a credit card these days. But, not all of us are as wise in the area of understanding how they work and how they make money. There are many types available to the young and old. Student credit cards even begin to get teenagers into the world of credit cards. Secured credit cards, cards that usually can't be written off, are even misleading in their name. So, what does that discover credit card in your wallet actually do for you?Even young adults are being lured into the world of credit cards. Student credit cards are widely available. Some link the parent to the card, others are geared towards college students who most of the time don't even have jobs to pay for them. T...(related: Credit)
Stop Credit Card Offers
You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide the requested information including Social...(related: Credit)
Credit Card Entrapment - The Secrets Are Out
Have you ever wondered why your credit card bill is so high and you can't seem to pay off the balance? Well you are not alone in this. You should be aware of a couple of trick that they use and you probably don't even pay attention to it, but you definitely pay for it and BIG!The next time you open up your credit card statement, take a real close look to all the "junk" inside particularly the very hard to read insert Call "changes to you credit card agreement". That's right the one you always throw away or say that I'll read it later and never really do. Since you neglected to read all that fine print you just threw away you should realize what you just did. In essence y...(related: Credit)
Bank Robbery Growing In U.s.
Bank robbery has grown to become a huge problem in the United States but I am not talking about people robbing banks. I am talking about banks robbing people. Here are some tips on how you can avoid being ripped off by your bank.Avoid The PlasticBanks want you to believe you need a credit card. The fact is millions of people get by very well without one. Contrary to popular opinion you can rent a car or check into a motel without one. You can use a bank debit card for the same purchases that you would make with a credit card, but there is no excessive interest charged.Read the Fine PrintCredit card offers will often tease you with very attractive interest rates. They may offer zero percen...(related: Credit)
Various Types Of Credit Cards - Part 2
Several different types of credit cards offer several different options, depending on what your needs are. Some are geared toward individual consumers while others are set up in ways that work best for small business needs. To know what type of card fits your needs, let's review a few of your options.Business Credit CardsA business credit card offers the business owner the opportunity to keep business and personal expenses separate. The card may offer special business rewards and saving opportunities that go above and beyond what the individual card owner may have. Since money management is essential in successfully running a business, the card may offer an expense management service that w...(related: Credit)
Some Truth About Credit
Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. No matter who you are or what type of business you are considering, credit is a vital component to be considered when developing your business idea and business plan.Your credit history and status will always be a factor when lenders consider financing your entrepreneurial endeavor. No matter what type of loan, even loans for those who may struggle to acquire traditional financing, such as the SBA funded micro loan, will consider credit as one of the underwriting factors.Because your credit history and status greatly impact your bankability and ability to acquire business funding, it behooves you to spend a significant amount of time developing and creating positive credit status an...(related: Credit)
Four Tips How Homeowners Can Rebuild Their Life After A Foreclosure
Let's face it, if you are facing the possibilities of losing your home due to a foreclosure and you think that you may never be able to purchase another home anytime soon. Keep reading.I am going to share with you four steps you need to prepare yourself for that transition down the road. First, if you lost your home because of a foreclosure or you...(related: Credit)
site-map - Copyright © 2007 | Contact Webmaster | All Rights Reserved | Free Articles and Information | Credit