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Get Your Credit Report and Know Your Credit Options

Get Your Credit Report and Know Your Credit Options

It is very important to get your credit report and analysis. Why is this important? For one thing, if you’re thinking about buying a house or looking for credit options for any other big purchase, you’ll need a clean credit report, and it’s always best to get your credit report and analysis before your lender does. This will give you an opportunity to clean up any discrepancies or errors, which are fairly common, and which can throw a monkey wrench in the works if not resolved.

Ideally, you should get your credit report and analysis once a year with each of the three credit bureaus:

You’re entitled by law to get your credit report and analysis for free from each of these three credit bureaus once a year. You can get all three at once or spread them out over the year. If you get your credit report and analysis more frequently than that, each report will cost no more than around $10 and in some states considerably less.

If you’ve been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get your credit report and analysis free of charge. Lenders are required by law to notify you of this right if they deny you credit.

When you get your credit report and analysis, review them carefully to make sure all the loans and credit accounts listed really belong to you, and that all the accounts listed as open are actually current loans or balances. If a loan you’ve paid off or a credit card that was canceled is still listed as open, contact the credit bureau and ask for your credit report to be corrected.

What is the Range of Possible FICO Credit Scores and What Do They Mean?

FICO credit scores range between 300 and 850. Ratings are as follows:

  • Excellent: Over 750
  • Very Good: 720 or more
  • Acceptable: 660 to 720
  • Uncertain: 620 to 660
  • Risky: less than 620

How is My FICO Credit Score Calculated?

The formula used to calculate your FICO credit score includes information based on several factors:

  • 35% on your payment history
  • 30% on the amount you currently owe lenders
  • 15% on the length of your credit history
  • 10% on the number of new credit accounts you’ve opened or applied for (fewer is better)
  • 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

Will Your Scores Be Different and What are the Credit Options?

FICO credit scores range from about 300 to 850. It’s important to get your credit report and analysis so you can understand what your FICO score is and you know what credit options might be a great deal. Fair Isaac makes the scores as consistent as possible between the three credit reporting agencies. If your information were exactly identical at all three credit reporting agencies, your scores from all three would be within a few points of each other. But here’s why your FICO scores may in fact be different at the three credit reporting agencies. The way lenders and other businesses report information to the credit reporting agencies sometimes result in different information being in your credit report at the three agencies. The agencies may also report the same information in different ways. Even small differences in the information at the three credit reporting agencies can affect your scores. Since lenders may review your score and credit report from any of the three credit reporting agencies, it’s a good idea to check your credit report from all three and make sure they’re all right.

Usually, when you get your credit report and analysis from the credit bureau it will include a form for reporting any inaccuracies. Give as much detail as possible, and if you have documents that back up your claim, provide copies. By law, the credit bureau must investigate your credit report claim, but even if they decide your credit report is accurate as it stands, you should continue to try to correct the report by writing a letter explaining your side of the story (not to exceed 100 words), which the bureau is required to provide to anyone requesting your credit report.

When deciding whether to approve credit, lenders take the following into consideration:

  • Your payment history–do you pay bills on time?
  • Have you had a bill referred to a collection agency?
  • Have you ever declared bankruptcy?
  • How much debt do you have outstanding compared to your credit limits? The closer your debt is to your credit limit, the less favorable.
  • How long is your credit history? If you haven’t had much of a credit history yet, prompt payments are even more important.
  • Have you applied for more credit lately? Too many applications for credit has a negative impact on your chances for approval.
  • How many credit accounts do you have? Too many are considered negative.

Information is retained in your credit report for up to seven to ten years. When you get your credit report and analysis, if you have negative items in your history, you can gradually repair your credit by consistently paying your bills on time from now on, paying down your balances, and not taking on any new debt. Lenders will take your improved record into consideration when deciding whether to approve credit, especially if you’ve been paying on time for at least a year.

How To Bounce Back From Bad Credit Ratings – Starting Today

How To Bounce Back From Bad Credit Ratings – Starting Today

Credit has a very important place in most people’s lives today. Bad credit ratings can prevent you from having essential things we need every day, such as, use a credit card, rent an apartment, qualify for financing for large purchase department store items, or buy a car, just to name a few.

If for whatever reason, you don’t make timely payments to a creditor or miss a payment, your creditor reports this to the credit bureau, and it is added to your credit report. If you do this too often, or default on a loan, you will have a bad credit rating and a low credit score. Once you have a bad credit rating, many doors will be closed to you: you will be unable to obtain most kinds of loans, and without a credit card you won’t be able to shop online, or rent a car, or do many of the other things you have grown accustomed to doing.

For these reasons, it is important that you protect your good credit rating. However, if misfortune causes a change in your circumstances and your credit-worthiness becomes an issue, you should begin your credit repair as soon as possible.

How to Repair bad Credit Ratings

Credit repair is usually a slow process requiring you to build your credit rating little by little over a long period of time. Although you might consider going to a reputable company offering credit repair services, you can effectively repair your own credit.

A good place to start repairing bad credit ratings is to get your credit report from the credit bureau and examine it carefully for errors. If there are no apparent errors, you can then begin your credit repair.

First, obtain a secured credit card and use it regularly but sensibly. Pay your monthly installment amounts in full and on time. Secured credit cards are issued by companies that usually cater to people who have bad credit. These types of credit cards usually require that you give an initial deposit equal to the card’s credit limit. For example, you give the company $500 for a card with a $500 credit limit. They have the right to use that deposit against any balance you have that remains outstanding for too long.

Using this formula, the credit card company assumes no risk because you will never owe more money than they are holding as your deposit. Secured cards also require annual fees that regular credit cards do not.

Using secured credit cards and paying the bills on time is one of the best ways to improve your credit rating. You develop a history that shows lenders that you take your debts seriously, and that is what lenders want from you — to be paid in full and on time.

To your advantage, paying bills on time not only helps in establishing a good history for you, but it also eliminates late fees and other financial penalties that make paying your bills so difficult.

How To Deal With A Credit Bureau To Repair Your Credit

How To Deal With A Credit Bureau To Repair Your Credit

Good credit is crucial in today’s economy. Good credit allows you to have credit cards, obtain a car or home loan, and to take advantage of many other money-related conveniences. It is possible to live without good credit, but having a bad credit rating can affect you negatively for the rest of your life. It is crucial to deal with a credit bureau to repair your credit if you need to achieve these conveniences.

You might be surprised to know that only a handful of credit bureaus in North America hold the key to your credit rating, and therefore your financial future. These credit bureaus receive the positive and negative reports issued by your creditors and create your personal credit report and credit score based on the results. If your credit history is poor, it is important to repair your credit so that you don’t get turned down for a mortgage or even a department store credit card. In order to do this, you must first learn how to deal effectively with a credit bureau.

Begin by finding out what credit bureau has your file. This information will be on any rejection letters you may have from a declined credit application. Next, you’ll need to obtain a copy of your credit history. Remember that you are allowed, by law, to obtain a copy of your credit history if you’ve been denied credit, though some organizations might imply otherwise. You should only pay for a credit report if you want an instant copy, rather than to have one mailed to you, in which case a bureau will send you one for a fee.

It is important to remember that a credit bureau is in the business of collecting and selling information. This means that you should never provide them with any information that you are not required to by law unless you want them to use it against you. It is legally necessary for you to provide the following to get a copy of your credit report:

  1. Name
  2. Social Security Number
  3. Legal Address

The credit bureau might request copies of your social security card or your driver’s license. If they ask for a copy of your driver’s license as proof of address, it’s best to provide them with a copy of a bill or something else addressed to you instead. You should be careful when providing credit bureaus information because most own collection agencies and they will use any of the information that you provide to hassle you with the credit and collection issues that you are already trying to fix.

Examine your report closely and note any possible errors. If you have questions about a specific debt, you can mail a written request to the credit bureau that they investigate that particular debt to repair it as soon as possible. Legally, the credit bureau is required to document any discrepancies on your credit report, otherwise, if they don’t do this in 30 days, the entire item must be removed. Most of the credit repair companies out there will charge you fees to perform this service, but you can do it yourself for free with just a little bit of time and effort.

Learning to deal with credit bureaus will allow you to engage in successful credit repair without paying a credit repair company a high fee. When you educate yourself on what the legal obligations are that credit bureaus entail, in many cases, you can effectively repair your own credit just as quickly as a credit repair company.

Need more help to repair your credit score? Get some tips here!

How To Improve Your Credit Record Legally

How To Improve Your Credit Record Legally

If you have a history of late payments, unpaid bills, or accounts sent for collection, your credit record will suffer. A bad credit record gives you a low credit score and makes it difficult for you to get needed credit or loans for things you really need. It’s time for you to improve your credit record legally to get needed credit or loans for things you really need. Here are some tips!

Your credit history

Almost everything you do with credit, both good and bad, is reported to a credit reporting agency. A history of paying late, or not paying at all, is sent to credit reporting agencies. Bankruptcies, judgments, and liens also find their way to your credit report and hurt your credit rating.

The good news is that positive information is also sent to credit reporting agencies. To keep track of your credit standing, you should review your credit report at least once each year. You can correct errors and clean up any wrong information that might be on your report. Review your credit report and correct errors to improve your credit record.

How to improve your credit rating

Here are some of the best ways to improve your credit rating:

Pay bills on time. Late payments really hurt your credit standing. It is best to pay the entire balance on your credit cards each month. If you can’t, be sure to at least be paid the minimum payment on time. The more you pay each month, the less interest you’ll be charged.

Don’t go over your credit limit. Some credit cards allow you to go over your credit limit. They usually charge you extra in penalties for doing so. In addition to paying penalties, going over the limit hurts your credit score. It tells companies that get your credit report that you aren’t paying attention to the limits of your account. If you don’t exceed your credit limit, you won’t have to pay penalties. This allows you to pay your balance down sooner.

Cancel some of your credit cards. Having lots of credit cards can hurt your credit score. When you apply for new credit, the company checks your credit report. One of the things they look for is how much your combined credit limits are and how much you owe. As you get closer to your credit limits, your credit score goes down. Applying for lots of credit cards lowers your credit score. One bank card and a department store or gasoline credit card are all you really need. Cancel the others.

Deal directly with creditors. Some businesses (creditors) you owe money to may be willing to take negative information they reported off of your credit report if you pay some or all of the money you owe them. Creditors must report payments you make, but they are not required to take negative information off your report unless they agree to do so. You will have to speak with each creditor individually to see what, if anything, they are willing to do.

If a creditor agrees to take information off of your report in exchange for a full or a part payment, get their promise in writing before you pay. If you pay the balance, even without an agreement, they must update your credit report to reflect a paid-in-full status. If you discharged debts in bankruptcy, those items can still be included in your credit report.

Avoid Scams

Credit repair companies promise to improve your credit. They may also promise to get you a loan or a credit card. They lead you to believe that they have special ways to get negative information off your credit report. They don’t.

Credit repair companies have no special powers to improve your credit record. There is nothing they can do for you that you cannot do yourself. Paying them leaves you less money to pay your current bills and past debts.

Because of the problems with credit repair companies, strict laws were passed to regulate their activities. For example, they must provide a written contract that you can cancel within five days. They can’t require payment in advance and all promised services must be completed in 90 days. They must also register with the Department of Justice and file a $100,000 bond with the Secretary of State. Be aware that very few credit repair companies follow the law.

How To Wipe Out Bad Credit And Rebuild Your Credit Report

How To Wipe Out Bad Credit And Rebuild Your Credit Report

Most people who have bad credit think there is nothing they can do about it. They mistakenly believe that they have to live with their bad credit for a long time.

You don’t have to live with bad credit or pay hefty fees to have your credit repaired. You can remove bad entries in your report and rebuild your credit profile. You don’t need to spend a fortune to accomplish this. Armed with the right information you will be on your way to rebuilding your credit record.

Credit bureaus are required to delete items that are not 100% accurate or cannot be verified within a reasonable period of time. Also, outdated information must be deleted.

The first step in repairing your credit is to get a copy of your credit report. You need to know what the credit bureaus are saying about you. By law, you can get a copy of your credit report, for a fee. However, if you have been denied credit within the past 60 days, then you can get a credit report at no charge from the credit bureau.

When you receive your report, examine it carefully. Damaging information may appear in your report without your knowledge. Make sure all information is current and accurate. Identify any incorrect or inaccurate information that has been entered into your report. Pay close attention to all the accounts listed on your report. Mistakes happen all the time. Make sure you do not overlook any errors.

You can have damaging information deleted from your credit report. You have the right to dispute incorrect or misleading information on your report.

To do this, complete the dispute form that you received with your credit report and return it to the credit bureau. Be sure to send your dispute letter certified mail, return receipt requested. This will provide you with a paper trail and help you remember when to follow up.

If you dispute an item, it must be reinvestigated and deleted if in the event the item is found to be false or unable to be verified. By law, if the credit bureau does not respond within the allotted time, then the disputed item must be deleted from the report.

Another way to smash negative credit remarks on your credit report is to take advantage of the “100-word consumer statement” which allows you to file a brief statement detailing your side of the story and submit this to the credit bureau, for inclusion in your report.

Once your credit report is updated, you should request that the credit bureau send an updated copy of your report to any businesses that checked your credit within the past six months (or two years if it involves employment).

Now that you’ve removed the negative entries, it’s time to rebuild a good credit report.

One way to add positive information to your report is by taking out a small loan backed by funds in your savings account. When you pay off the loan, your security deposit will be released to you.

You can also build credit by having someone with good credit cosign on a loan for you. This strategy can speed up the process of rebuilding your credit.

Having a secured credit card can help you build or rebuild your credit. To obtain a secured card, you are required to deposit money in a savings account to guarantee the charges. The deposit is frozen and left untouched until it is obvious that you have defaulted. So make sure all your payments reach the company before the due date. Always stay within your credit limit.

If you ever wanted to wipe out your bad credit and rebuild your credit report, now you can. A good credit record can make your life easier and more enjoyable. Take action now.

Information On Credit Repair Scams

Information On Credit Repair Scams

You see the ads in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:

“Credit problems? No problem!”

“We can erase your bad credit-100% guaranteed.”

“Create a new credit identity legally.”

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Do yourself a favor and save some money, too. Don’t believe these statements. They’re just not true. Only time, a conscientious effort, and a plan for repaying your debt will improve your credit report.

The Warning Signs

If you should decide to respond to an offer to repair your credit, think twice. Don’t do business with any company that:

  • wants you to pay for credit repair services before any services are provided
  • does not tell you your legal rights and what you can do yourself — for free
  • recommends that you not contact a consumer reporting company directly
  • suggests that you try to invent a “new” credit report by applying for an Employer Identification Number to use instead of your Social Security number
  • advises you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to make false statements on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Scam artists are out in full force with all of the subprime mortgages and credit card debt. They like to prey on the weak and needy. Be careful.

Need Credit Repair Help? Try Doing It Yourself!

Need Credit Repair Help? Try Doing It Yourself!

No matter what many credit counseling scam artists may try to tell you, no one can legally remove any information that is up-to-date and accurate from your credit report. They can’t do it, and you can’t do it yourself. However, you CAN request an investigation of anything you find in your credit file that you believe to be either incomplete or inaccurate. That is perfectly legal and can be done at NO cost to you. In fact, anything that a credit repair company offers to do for you can be done yourself, generally free or for a nominal fee.

The good news is that just because you may have some negative information in your credit report doesn’t automatically mean you can’t get credit at all. Most creditors have their own guidelines when it comes to granting credit, which means that each company will look at your credit report in a slightly different way. For instance, it’s not uncommon for companies to lend more credence to the most recent information in a credit report. That way, if you experienced some financial difficulty a number of years ago, but then were able to get back on an even keel and have been exemplary since that time, you’ll be more likely to receive the credit you’re seeking with those companies. It might even be to your benefit to have an informal discussion with a potential creditor to discuss how they interpret credit reports–even before you apply for credit.

You’re entitled to a free credit report every twelve months, and it’s worthwhile to take advantage of that fact, just to see what information is contained in your file. Many financial advisors and consumer advocates suggest that you review your credit report periodically because erroneous information can sometimes get into your report inadvertently and can affect your chances of getting a loan or qualifying for insurance–as well as how much those will cost you, in terms of interest rates or premiums.

To request a free credit report from one of the Big Three: Experian, Equifax, or TransUnion, and make sure that all the information it contains is up-to-date and accurate, especially if you’re about to apply for a major purchase, seek insurance, or apply for employment. Checking your credit report on a regular basis can also alert you to identity theft, which is one of the fastest-growing crimes in the world today. Inaccurate or incomplete information in your credit report can have a significant impact on your chances of obtaining loans, insurance, or a job, so it’s well worth the effort to make sure everything in your report is exactly as it should be.

If you’re having trouble with your credit report and need help finding assistance, you can contact the Federal Trade Commission (FTC) for help. Find them on the Web at http://ftc.gov, or you give them toll-free at 1-877-FTC-HELP. Their TTY number is 1-866-653-4261. They maintain an online database that lists hundreds of civil and criminal law enforcement agencies in the U.S., and they’ll be able to steer you toward the help you need.

Copyright © Jeanette J. Fisher

Nothing But The Real Truth About Credit Repair

Nothing But The Real Truth About Credit Repair

Accurate and timely information cannot be removed from your credit report, even if you have paid off a once delinquent debt. The fact that it is paid off is to your credit; however, the fact that the account was once delinquent is also true and can remain on your credit files from up to seven years.

Bankruptcy information can be reported for up to ten years. Information reported because of an application for a job with a salary of more than $20,000 has no time limit. Information reported because of an application for more than $50,000 worth of credit line or life insurance has no time limitation. Default information concerning a US Government insured or guaranteed loan can be reported for seven years after certain grantor actions.

Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. No one can legally remove accurate and timely negative information from a credit report. The law does, however, allow consumers to request an investigation or reinvestigation of the facts and information in your credit file that you dispute as inaccurate or incomplete. There is no charge for this information.

Credit repair clinics or services can’t do anything to improve your credit report that you can’t do for yourself, at little or no cost. Avoid companies that want you to pay for credit repair services before they provide any services. It is illegal for telemarketers who offer credit repair services to request payment until six months after they have delivered the service.

The Scam

Everyday companies nationwide appeal to consumers with poor credit histories. They promise, for a fee – usually paid up-front – to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, says the FTC, that they can’t deliver on their promises and claims.

According to hundreds of reports, consumers pay hundreds or thousands of dollars in up-front fees and these companies do nothing to improve your credit report, many credit repair companies simply vanish with the consumer’s money. These companies do not tell you your legal rights and what you can do yourself for free. They often recommend that you do not contact a credit bureau directly.

Or they advise you to dispute all information on your credit report or to create a new credit identity which is illegal. If you follow any illegal advice or commit fraud, you also may be subject to prosecution.