Before you make that big purchase you could be subject to a credit check. More and more companies are using your credit report to determine whether you are worth the risk. Keeping your credit in good health is getting more and more important. Find out who some of these people are that are looking at your credit report...more
Getting a copy of your credit report from the three credit reporting agencies is only the beginning. Your credit report will show your credit history and other personal information, but it doesn’t show your FICO score. When you look at your credit report, it shows several individual items, but overall, it can be hard to really understand whether a lender will view it as positive or negative. You may have some good entries and a couple negative ones, but when it’s all taken... more
It’s a sad truth that most people who have credit cards, mortgages, car loans, student loans and personal lines of credit haven’t the slightest idea about the significance of credit scores on their financial future. According to survey conducted by Opinion Research Corporation, a leading U.S. marketing research organization, 27% percent understand what a credit score is, and how it impacts their financial lives. So you shouldn’t be embarrassed that you don’t know... more
According to a survey conducted by the Consumer Federation of America (CFA), “A strikingly high percentage of Americans not only do not understand basic facts about credit reports and scores, conducted a survey of the American public about their credit scores.” The same CFA poll indicated the following about American credit customers and their knowledge of credit scores: Only 2% knew what their credits scores were. Only 3% could name the three major credit... more
Having a low credit score will make it harder for you to obtain credit cards and various types of loans, and when you do, it may cost you more than it would the average consumer due to higher fees and interest rates. Having a high credit score suggests to lenders that you are low credit risk, which means your likelihood for repayment is high and you have a much better shot to be approved for loans and credit cards with the best interest rates and most flexible repayment plans. This article will help you learn the basics about credit scores and what you can do to keep an eye on and improve yours to get better deals on various types of credit.more
According to the Consumer Federation of America (CFA) 70% of all credit reports in the United States contain at least one error. We’ve already established how your credit report influences your credit score in our article Credit Score 101, so the fact that approximately 70% of credit reports are being negatively influenced by errors shouldn’t sit very well with you. You should think of your credit report as your financial report card. It contains information gathered for all... more
Did you know? It’s illegal to change your social security number (SIN) in order to start anew with clean credit? It’s illegal to dispute items on your credit report unless they are errors. You can be charged for misleading credit agencies or falsifying credit information. If you’re on a search to clean up your credit report beware of fix it credit companies that offer of recommend that you use any of the tactics above to fix your credit report. When... more
Credit report and credit score speak can be dry and vague – come on there’s no denying it. That’s why I’ve put together this handy glossary of terms to help you actually understand what you need to know to maintain a healthy credit report and a high credit score. Adverse action notice – The notification that you’ve been denied a loan, credit card, insurance or anything else based on your credit history. On the notification you will see which credit... more
A common misconception that is often perpetuated by creditors, some disreputable counselors, “self-help” gurus and even some religious groups, is that your financial success is a reflection of you as a person, and that you are somehow less worthy as an individual human being if you find yourself in a difficult situation with regard to paying debts. On the contrary, being behind on payments does not mean you have sinned. It does not mean you are a bad person, are unintelligent,... more
If you have a bad credit history you’ve probably already run into some roadblocks when it comes to being approved for credit cards, personal loans and mortgages. Don’t give up! A low credit score doesn’t spell the end of your credit options. Rather think about it as a temporary barrier to credit, and take the time to pay off your outstanding debts towards the rebuilding of your credit score. It is possible to rebuild your credit score – even if you have bad... more
Like so many things in life, a bad credit rating can oftentimes be the result of an unfortunate error. Imagine for a moment that you have decided to purchase you’re very first home. You’ve explored the real estate market and you’ve found the home of your dreams. Your real estate broker has walked you through the process – you’ve worked out how much of a mortgage you can afford, and all of the closing costs have been explained. Now all you need to do is get... more
Credit card debt is like a slow moving epidemic. Millions of Americans suffer from it and more and more succumb to it daily. It creeps in and takes down unsuspecting consumers young and old alike. When in debt, it may seem like you have no options, and no way out. You start to break down and you consider filing for bankruptcy, a move that will hurt you for many years to come. But there is hope for those lost in the plastic sea. There are measures you can take to defeat this giant and... more
Getting a free copy of your credit report is a good idea, and it’s not that hard to get. According to the Fair Credit Reporting Act, you are entitled to a free copy of your credit report once every 12 months. If you want copies more frequently, you’ll have to pay up to $9.50 for each copy. There are three credit reporting agencies, Equifax, Experian, and TransUnion. You are entitled to your once-yearly free report from each of these three agencies. It’s not necessary to... more
There are two things that will repair credit without question, and they are the passage of time, and the timely payment of debts. There are, however, numerous credit repair agencies in business who claim to be able to repair poor credit. Sometimes these claims are quite specious, and involve unethical or even illegal practices, that include disputing legitimate credit report line items, or creating new identities. Any credit repair agency that offers to create a new identity for you, give... more
