Understanding Credit Report Score
|
Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.
Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.
You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don't want the lender to find a mistake that you aren't aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.
You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a "soft inquiry" and doesn't harm your credit score at all. Only "hard inquiries" from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.
Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.
The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.
The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.
Don't be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.
If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.
Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.
Equifax Credit
P.O. Box 740241
Atlanta, GA 30374
Equifax 800-685-1111
http://www.equifax.com
TransUnion
P.O. Box 1000
Chester, PA 19022
Trans Union 800-888-4213
http://www.transunion.com
Experian
P.O. Box 2002
Allen, TX 75013
Experian 800-682-7654
http://www.experian.com
You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.
If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.
Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles go to: http://www.credit-repair-facts.com/articles_1.html
|
|
|
How To Repair Your Credit Report
A credit report is run on a buyer when he or she needs to buy something that will take a long-term loan, such as an automobile or a house. The credit report can come from one of three agencies ? Equifax, Experian, and Trans Union. Each of these three agencies uses their own techniques of arriving at a credit score and receiving credit information, so attention should be paid to all three. A credit report score can go up to 800, and an increase of 50 points is a big one, enabling borrowers to get loans they previously were denied, and getting loans at much better interest rates. A 1% drop in an interest rate on a $150,000 house, for instance, may drop a payment by over $100 a month, saving the borrower over $35,000 over the life of the 30-year loan.Each of the...(related: Credit)
Credit Card Security Advice
Which of the following is the biggest threat to your credit card security?a) Shopping online with a credit cardb) Shopping in a real store with your credit card
c) Ordering something over the phone with your credit cardThe answer may surprise you. It's b - shopping in a real store with a credit card. Despite all the controversy and publicity surrounding internet phishing and identity theft, shopping online is a relatively safe process. Credit card fraudsters are far more likely to get your credit card numbers and ID information by hacking into a bank or credit card company computer than they are to hack into an online store's server.The truth is that there are some dang...(related: Credit)
3 Ways To Improve Your Credit Score By 50 Points In Less Than 30 Days
In Less Than 30 Days.
"What can you do to increase that set of three numbers on your
credit report that can be so important with your financing?"
I came across this question as I was surfing discussion groups
Your Guide On Choosing A Credit Card To Suit You
Reach into your wallet or purse, pull out a card, swipe, and you're done. It is very easy to use a credit card. The problem lies in choosing a card ? and it has nothing to do with the picture on the front! Choosing a credit card that works best for you is vital to your credit rating. If you choose incorrectly, you may find yourself in deep debt trouble. Here is some basic, yet extremely important, information that will h...(related: Credit)
Why Your Credit Score Is Important
Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities. Your credit score determines what interest rates you will pay and if you are even approved for a loan or a credit card at all. In addition, your credit score can play a factor in renting your next apartment or getting hired from a potential employer....(related: Credit)
Good Credit Is A Necessity For Everyday Living
Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, bey...(related: Credit)
All About Balance Transfers
What is a balance transfer?A balance transfer can be explained simply as a balance transfer! When a balance is transferred usually from a credit card, but p...(related: Credit)
Simple Identity Theft Protection
How many of you bank, shop, or transact other business online? There are at least 4 million Department pf Defense employees that access their pay records online only. Even offline, stored financial data can be placed at risk in computers that are used on the Internet as well. As one of the fastest growing crimes in America, identity theft is a concern for everyone.A criminal gaining access to your bank or credit card accounts or personal information can wreak havoc with your credit and leave you holding the bag. Protecting your personal data at home and online is not too painful and lowering your risk for a reasonable effort level is well worth it.Before we tackle the computer and online environment, let's take a quick ...(related: Credit)
Credit Report Hassles
There is no end to the amount of pain that your credit report can cause you. If you have a bad credit history this is something that can follow you around and wreak havoc on your life without you even knowing it. Do you know how many people did not get a job because their credit report was awful? Thousands and how many do you think realized that that was the reason they did not get a call b...(related: Credit)
Understanding Credit Card Penalties
Because most of us have one or two credit cards and we use them every day, understanding credit card penalties and fees is a significant issue since one time or another we have paid a penalty for some reason. Every user of a credit card must first understand that every charge on the credit card represent a loan which must be repaid. It's like the loan ...(related: Credit)
Which Citi Mastercard Is Right For You?
You've decided to apply for a Citi MasterCard, but with so many different cards to choose from, how do you know which one is right for you? Here is a brief guide to the different types of MasterCard available from Citibank.A great MasterCard program is the Citi Platinum Select Card. It offers basic rewards, such as an 0% Annual Percent Rate and no annual fee, for qualified applicants. This MasterCard will also give you peace of mind, when making online purchases, because it offers protection against unauthorised purchases.If you're looking for a plan with more rewards, then the Citi Premier Pass Card, might be the Citi MasterCard plan that's just right for y...(related: Credit)
What Is Credit Card And Debit Card Blocking?
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card "blocking."What is Blocking?When you use a credit or debit card to check into a hotel or rent a car, the clerk us...(related: Credit)
Credit Card Security Advice
Which of the following is the biggest threat to your credit card security?a) Shopping online with a credit cardb) Shopping in a real store with your credit card
c) Ordering something over the phone with your credit cardThe answer may surprise you. It's b - shopping in a real store with a credit card. Despite all the controversy and publicity surrounding internet phishing and identity theft, shopping online is a relatively safe process. Credit card fraudsters are far more likely to get your credit card numbers and ID information by hacking into a bank or credit card company computer than they are to hack into an online store's server.The truth is that there are some dang...(related: Credit)
site-map - Copyright © 2007 | Contact Webmaster | All Rights Reserved | Free Articles and Information | Credit