Keep
Informed! |
Get the latest credit news and information. It's FREE!
|
|
Your Credit Information Center |
|
|
|
Credit Reporting - An Introduction
Will you pay too much interest on your next Car Loan? Credit, if used effectively, can be a valuable financial tool. At the same time it's a big responsibility. If you don't use it effectively, you can end up owing more than you can repay, damaging your credit rating and creating credit problems for yourself that may be difficult to fix. When dealing with the credit system, the first step is to understand exactly how credit reporting works.
"What
Credit do I Qualify For?"
- It
all depends on your Credit History.
- Your
Credit History tells whether you pay your bills on time,
how much you owe & generally whether you are a good
credit risk or not.
- It’s
the way many businesses and lenders measure your credit
worthiness and your reliability.
"Who
Keeps My Credit History?"
Learn
More About Credit |
Credit Reporting-An Introduction
Will you pay too much interest on your next Car Loan? Credit, if used effectively,can be a valuable financial tool...More->
How Your Credit Score is Calculated
Credit
Reporting Agencies
or CRA's are responsible
for keeping track of
your credit history. Learn how they
determine your credit score...More->
Improving
Your Credit
Learn how to legally improve your credit report, how to deal with debt, how to spot credit-related scams, and......More->
Government Mandates Free Credit Reports
The federal Fair Credit Reporting Act (FCRA) requires that U.S. consumers be entitled to a free credit report each year. The government’s goal is to make sure that consumers stay informed, fight identity theft, and get fair treatment....More->
|
- Your
credit history is kept within computer databases with
the 3 major credit bureaus, Equifax, Trans Union and Experian.
- Financial
institutions, that you have borrowed from, and retailers
that you have done business with, report information monthly
to the credit bureaus; information on payment history,
late payments, etc.
- Based
on this factual information, the credit bureaus can calculate
"credit scores" that measure your credit worthiness.
The higher the score, the better your credit.
- Generally
if you apply for a loan or a credit card, the lender will
request a credit report on you, from one of the Credit
Bureaus, and also request a credit score.
- Your
Credit Score, can reach a maximum score of 800, and it
often may be the sole criteria that lenders will use to
determine what credit you qualify for.
"What’s
Included in a Credit Report?"
A
consumer credit report generally contains 4 types of information:
- Identifying
Information: your name, current and previous addresses,
telephone number, SSN, date of birth, and current and
previous employers..
- Credit
Information: There is information on open accounts and
closed accounts. Each account has information such as
the date opened, credit limit or loan amount, balance,
monthly payments and payment pattern. The information
comes from the companies that you have done business with.
For open accounts, positive information remains on your
report indefinitely; negative information remains up to
7 years. For closed accounts, information remains 7 years.
- Public
Record Information: bankruptcy records; records of tax
liens and monetary judgments; and in some states, overdue
child support. This information comes from public records.
Bankruptcy information can remain on your record for 10
years; other public record information for up to 7 years.
- Inquiries:
the names of those who obtained information about your
credit history. Inquiries initiated by you (applying for
a credit card), become part of your credit report, and
may remain on your report for up to 2 years. Unsolicited
inquiries will appear on your copy of your credit report,
but are not available to others.
The
Credit Report only contains information related to credit.
No other information is gathered.
More->
|
