Credit Report: Looking in past days!

How to Review Your Credit Report

Review your credit report carefully when you receive it. Why?

* Discover and correct errors: Credit reporting errors can cause your applications for credit, employment, or housing to be denied unexpectedly and unfairly. If possible, order and review your credit reports at least six months in advance of applying for a major loan to allow enough time to dispute any errors that you might find, and give you time to prepare an explanation for any remaining inaccuracies to a potential creditor.
* Get a snapshot of how creditors see you: Lenders want to know how you’ll perform as a borrower. Once you’ve identified any weaknesses in your credit file, you can work to resolve them and improve your appeal as a borrower in the eyes of creditors.
* Become aware of identity theft in its early stages: Most people don’t know they’ve been a victim of identity theft for months or even years after their identity is initially stolen. I was fortunate to discover that my identity was stolen after only 2 months. The sooner you recognize and address identity theft, the sooner you can minimize any damage to your credit and your finances. I keep tabs on my identity (since it was stolen) by monitoring my credit.

What’s in a Credit Report?

Although each of the three credit reporting agencies uses a slightly different format, all credit reports contain the same four main types of information:

* Identifying data
* Credit history
* Credit inquiries
* Public information

Identifying Data

The identifying information in your report comes primarily from your past credit and loan applications. This section will generally include the following data:

* Your full name, including any nicknames and suffixes (e.g., Jr., Sr., III) used to apply for credit
* Your spouse’s name, if you’re married
* Your Social Security number
* Your birth date
* Your current and previous addresses
* Your current and previous employers

Credit History

The credit history is the most important section of your credit file. It lists every credit account opened in your name. Each listing contains the following information:

* Name of creditor and account number
* Type of account (revolving, installment, etc.)
* Date account was opened
* Payment history, including late or missed payments and collection referrals
* Credit limit or original loan amount
* Current balance due
* Date of last payment
* Date information was last reported
* Number of months information has been reported
* Authorized users, if any

Benefits of getting credit report!

If you want to begin to repair your credit, requesting a copy of your credit report is the first step. How you can obtain a copy of your credit history and the benefits of doing so are explained in this article.

The most common reason people request a copy of their credit history is to assist with repairing their credit. Credit reports list entries which include a person's financial history, such as identifying information, accounts, and payment history. The review of a credit history will tell a person if all of their information has been recorded accurately or if there is false or inaccurate information which may be affecting their credit score.

If a person discovers inaccurate information on his report, he can dispute this information by sending a letter to the reporting bureaus requesting a revision or deletion of the information. If, within 30 days, the bureau cannot obtain verification of the disputed information, the bureau must remove the entry from your report. This will increase your credit score.

Credit reports are also helpful for finance and budgeting purposes. Obtaining your report allows you to view your status in one neat, concise report. A report can allow you to determine if you should work to consolidate your debt or assist with prioritization of payments.

Reviewing your history can also help protect you against identity theft by allowing you to compare all recent credit activity with your recollection of your personal credit transactions. Identity theft is a serious threat to a person's financial situation as well as their credit worthiness.

There are several ways to request a copy of your credit history. You can obtain a copy of your report from one of the many internet businesses which offer this service. Additionally, you can obtain a copy for free from the three major reporting agencies, Experian, Equifax, and TransUnion. These three major credit reporting agencies are legally obligated to provide you with a free copy of your report once every twelve months. You may obtain your free copy of your report by calling Annual Credit Report at (877) 322-8228.

It is wise to obtain a copy of your credit report. Request yours today and when it arrives, sit down and review it for any inaccuracies, so you can begin to rebuild your credit.

Make your credit report simple!

It is a wise decision to get a credit report from a credit reporting agency. Once you have your report, you must know how to read it. This will help you in understanding the information sent and judging your financial position from a lender's point of view.

It should be remembered that there are three main credit reporting agencies in the USA namely Equifax, Experian, and TransUnion. It is a requirement of the Federal Trade Commission that all three of these companies give a credit report to their clients free of cost once ever year, if asked for it. Remember that this report is sent to the lenders and credit card companies to check your record if you ask for a loan or credit card so knowing your credit score beforehand would be beneficial for you. It has been seen that credit reports contain fraud, identity theft and wrong information which makes the person ineligible for getting a loan, credit card etc.

It is quite easy to understand a free credit report. Here's how! The report consists of five basic points.

1. The particulars of the person such as name, social security number, phone number, etc.

2. Public Records Information, i.e. if you have any previous evidence of bankruptcy, civil judgments etc

3. The information about collection agency, which basically includes any debts that you were unable to pay.

4. Information about your credit cards, open accounts, utilty accounts, loans, leases etc.

5. The names of companies who have asked for your credit reports in the past.

Ensure that you have gone through all these points. Also, keep a check that your information is updated. Immediately report any wrong information to your credit agency because it takes a few weeks for your request is processed.

Some questions regarding your credit score

John R. Ulzheimer, the author of “You’re Nothing But a Number" and an expert on credit scores, answered reader questions on credit and the importance of creditworthiness.

Q. I deliberately keep my credit limit lower than what the credit card company will give me on the grounds that should I be hit by fraud, it won't rack up huge charges. Interestingly (no pun intended), a few Saturdays ago I went online to check my balance and discovered what turned out to be the first of several fraudulent charges that, coupled with my usual monthly balance, overshot the credit limit by 79 bucks or so. I do not know when the credit card company planned to notify me but a representative admitted that they should have caught the problem. And yes, I understand that I am not responsible for the fraudulent charges.

Is it a good idea to lower one's credit limit to a more reasonable amount? After reading your column on Oct 10., it sounds like it's not.

A. Ann, it is actually better to have as high a credit limit as possible on credit cards. As you learned through your own experience, you have basically no liability for fraudulent charges if you notify your lender as soon as possible. And the upside to the higher limit is twofold. First, you have access to capital should you need it, which is certainly a good thing these days. The second reason is that you will help to maintain a low "balance to limit" ratio on your credit cards, which is extremely important when maintaining strong credit scores. So if your credit card companies offer you higher limits then gladly take them. Just don't increase your balance or you'll negate any benefit to your scores.

Q. Can you give us guidelines for whether we can cancel a credit card without harming our credit score? I have four credit cards and one of them, my second oldest (since 2001), I don't use anymore. My combined balance is always under 10 percent of my total credit (usually on just one of the cards) and I always pay my balance in full during the grace period. Can I safely cancel the card I'm no longer using? Should I do so, and how?

A. It's almost never a good idea to cancel credit cards. In your case, the reason that your balance to limit ratio is 10 percent is because of that fourth card that you're thinking of canceling. Unless you pay down your balances even more, that 10 percent will increase and your scores will go down. Here's my personal credit card strategy: I have six credit cards with a combined credit limit of $121,000. This gives me enormous flexibility if any of my credit card issuers choose to do something nasty like lower my limits or close an account. It also ensures that my balance to limit ratios never get about a few percentage points because I use my cards modestly and pay them off at the end of the month. I use each of these cards at least once per quarter so none of my lenders close them due to inactivity. My lowest score FICO score is 809.

Q. Please address credit reports and scores for a married couple. Our primary credit card is in both of our names, but we might have other credit data in one name only. If we were to make a major purchase, such as a mortgage, it would be a joint purchase. I'm thinking along the lines of a joint tax return, if there is such a thing as a joint credit score? Is this an issue? Any specific advice for married couples?

A. Good one John. When two people get married at least one typically changes how they use credit. The problem is that credit reports and scores are maintained and generated at the individual level, not the joint or married level. You will always maintain your own credit reports and your own scores, as will your wife. When you apply for joint credit the lender can and normally pulls both your report and the joint borrower's report. Same with scores. And if the account is approved then it likely will show up on both of your reports and will affect both of your scores. This commingling of credit is a necessity especially when you need two incomes to qualify for a loan. But it becomes problematic if or when a couple divorces because the court can't override the original contract with the lender — even though it can assign payment responsibility to one ex-spouse or the other. Frankly, divorce attorneys would better serve their clients if they focused on not only dividing assets but also dividing liabilities at the contractual level.

Some chuck credit cards to avoid late fees

Here's one way to dodge credit card debt and late fees: Don't carry any plastic.

"People look at me like I'm an anomaly. But guess what? It's a whole lot easier when you're not juggling debt," said Paige LeFevre, a 41-year-old Atlanta resident.

The idea of living without credit cards is being given more consideration at a time when Americans hold more than $850 billion in credit card debt, four times as much as in 1990. Of course there are significant benefits that come with credit cards -- convenience being just one of many -- so be sure to weigh them carefully before rushing to close your accounts.

A key concern is the role credit cards play in building your credit and maintaining a credit history. Remember that building good credit is important if you're in the market for a mortgage or other type of loan. Prospective landlords or employers often run credit checks, too. So holding on to your credit cards may be in your best interest.

Credit cards also offer certain consumer protections; for instance, issuers will often refund charges for faulty products. Cards are also necessary to rent a car, and, if managed properly, can reap financial perks through rewards programs.

LeFevre says her vow of plastic abstinence came after she ran up $40,000 in debt while remodeling her home two years ago. But as a homeowner with a steady job for six years, LeFevre wasn't overly concerned about her credit score. She says she hasn't checked
her credit score in recent years, but figures it's better when she's not buried in debt.

"It's just too easy to use," said LeFevre, who works for a retirement investment advising company. She has paid off her debt with a number of drastic measures, including trading in her a car for a cheaper model, getting a roommate and selling many of her belongings. She also axed her cable package, manicures and eating out. She keeps her spending in check by taking out $200 in cash every week for groceries and gas.

For LeFevre and others, keeping plastic around simply leaves the door open for temptation. The reasons for credit card debt no doubt vary, however, and in many cases is the result of financial hardship.

According to the Consumer Federation of America, a nonprofit advocacy group, 58 percent of people with credit cards don't pay their balance in full every month. Those that carry a debt have an average balance of $17,103, according to the group.

It's no wonder Americans are easing up on credit card use. Last month, Mastercard Inc. and Visa Inc. reported credit card spending was growing at its most anemic pace ever.

So how can you cut back? One option is to simply leave your plastic at home for a few months at a time. A credit card only needs to be used about once every six months or so for the credit line on the account to count toward your FICO score, said Barry Paperno, a spokesman for Fair Isaac Corp., the company that created the FICO credit score.

Making small charges on your card once every few months may improve your score more than frequently running up big charges, said Paperno. That's because your credit utilization -- the percentage of your credit line that's in use -- makes up 30 percent of your score. So the smaller your outstanding balance in relation to your credit line, the better.

For the same reason, closing your credit cards could lower your score if you have outstanding debt. If you're still determined to rid yourself of plastic, try to whittle down your balance before doing so. Cancel one card at a time, and wait a few months in between each cancellation to lessen the impact on your score.

For New York City resident Kira Limer, 25, not using credit cards makes it easier to stick to her guiding financial principle: Don't spend money you don't have. It also makes it easier to keep a running tally in her head of how much she's got in the bank. She relies on a debit card for day-to-day expenses. "I just like to know for sure I'm not spending beyond my means," said Limer, a resource librarian at an architecture firm.

How to remove charges from your credit score?

Charge offs stay on your credit report for 7 years from the date of last activity on the account all the while damaging your credit scores. That is such a long time for one mistake to affect your entire financial being. Just one charge off can prevent you from getting credit including; a decent car loan, credit cards, personal loans or can even stop you from qualifying for a mortgage! If you do qualify your interest rate will most likely be much higher costing you tens of thousands on the loan.

Understand that the reporting of items on your credit reports is completely voluntary. No law demands that all your accounts be reported to the credit bureaus. Creditors report at their will.

If you have the ability to pay the charged account do so. The credit might accept less than what is owed as a payoff "in full" meaning that the account is satisfied and closed. What I advise is to have the creditor either update the account to "paid as agreed" "never late" or remove the account in its entirety. Get it in writing if they agree to do so before you send any money as things tend to be forgotten once the creditor gets what they want (your money).

Some creditors will lie and tell you that once a trade line is reported as "charged off" then it must remain that way. This is simply not the case as creditors use software to update the credit bureaus. They can update their reporting at anytime and at their discretion. The simple fact is creditors remove charge offs from credit reports using this method all the time!

If your charge off is already in a paid status then perhaps the only effective way to remove it is to dispute the accuracy of the trade line with the credit bureaus. This is can get a little complicated. There are definite right ways and wrong ways to dispute. If you mess up you can almost guarantee that the charge off account will stay with you for the entire seven years. That is why I recommend hiring out the help. Credit repair is most certainly something you can do yourself...if you have plenty of time to research the dos and don'ts.

Free Credit Report Once a Year - The Best Way to Obtain Your Credit Standing

It is a given fact that when you are credit card holder greater possibilities of more credit debts coming in rather than being settled will usually take place. People from all over the world where credit card served as a major source of trade are facing with a lot of debts from credit cards. There are higher cases of foreclosures and even identity theft, these issues have become rampant at present, and still a lot of people are opting for an instant relief of having credit cards.

With all these factors, the need to obtain your credit report from time to time in keeping yourself updated is deemed necessary. A lot of options can be preferred as a means of getting it. You can easily have access to a free report once you have been declined of your credit card application. You will then be given all the right to obtain a free copy within 60 days duration of time. However, if you haven't taken any application, then obtaining a copy with a small fee is needed in order to get a good view of your credit information.

There are also a lot of ways in obtaining your personal copy and this can be in the form of free credit report once a year. You can call for your personal copy by means of writing to one of the three major credit reporting agencies. Also, to get a free report you will also need to put your information and personal data. This will entail in providing your full name, your address, social security number, date of birth, phone number among many others.

Another option that you can take is by getting your free report online. All you have to do is sign up for online affiliates catering to this kind of services. These services will enable you to acquire your online access and you can get directly to your own information on the net. Queries and access to information can be done at any time. This kind of option is ideal for those credit card holders who are considered as main targets of identity theft. This is also a very convenient way of logging into your personal information online that are easy to navigate and faster to operate. Remember that your account password is needed in this kind of service and this password should be something that is complicated yet easy for you to commit to memory.

Free credit report once a year can be your way of checking your credit standing and doing something to either maintain or make it better that will play a big role in your being credit worthy. There are a lot of ways on how you can obtain your credit information and checking it with careful and keen details is important in avoiding other problems that may occur in the future.

Obtaining your free credit report once a year is also a good way of managing your finances well and keeping up with the standards of the major credit bureause.

Now no need to run after credit score!

Do you really know the purpose of your credit score? Most people know they have a credit score and have some vague idea that it some kind of indicator about their credit but unfortunately that is where the knowledge stops with the vast majority of folks. For as important as your credit score is for a wide variety of things in your daily life, which extends far beyond just your ability to get credit, it is truly beyond comprehension that more people do not pay intense attention to it.

Do you even know what your credit score is right now, or even what it was last month or the month before? Surprisingly, most Americans do not, and even more surprisingly, neither do they care. But the reason they don't care is because they figure as long as they are not getting nasty letters from creditors or phone calls from bill collectors, their credit score must be just fine.

Nothing could be further from the truth.

First let's back up a step. Your credit score is a number which is calculated by the credit bureaus that indicate how much of a credit risk you are. When you go to apply for credit, the lender will pull copies of your credit report and look at that score, which tells him how much RISK he is taking on by approving your loan, and if that risk is uncomfortable for him, he will compensate by offering you financing at higher interest rates.

But simply paying your bills on time is not the only factor that goes into calculating your credit score figure. True, it accounts for about 35% of the score, but where does the other 65% come from?

How close you are to your credit limit on your credit cards plays a significant role. The ideal place to be is about 25% to 30% of your credit limit in terms of your outstanding balance. If you have less than that, then you are not using credit enough to get a clear picture. If you have more than that, then the thought is that you are not using credit responsibly enough. And if you go over your credit limit, that is definite negative credit score points, in addition to the overlimit fees that the card issuer will assess. Talk about adding insult to injury!

As mentioned earlier, your credit score is used in many more places than just when you go to apply for new credit. Various companies use your credit score to determine whether or not they should send you flyers and notices about super special sales, and if your credit score is not up to par, you'll never know about those special sales. Many car insurance companies are now using your credit score to determine what rates to charge you for your car insurance, since they allegedly have statistics which prove that people with lower credit scores make more claims than those with good and higher credit scores. If you are looking for a new job and there are several job candidates that are all pretty much equal, the credit scores of the applicants will play a major role in determining which applicant gets the job, sometimes having more weight than even lesser skills or capabilities.

You need to check your credit report multiple times per year and see what it says about you. There is a better than fair chance that your credit reports contain errors, like some charged off account that does not belong to you but is on your report anyway. This and other similar things will cause your credit score to be calculated much lower than it really should be.

Take your credit score seriously and begin enjoying all the things that a good credit score can provide for you. As credit scores become more and more commonly used in a wide variety of industries and applications, the time you take to improve your credit score will definitely be time well spent.

Save a Buck: Boost your credit score

Want to save $105 a year?

A new study by Washington Mutual estimates that credit card users can do just that if they boost their credit scores by 30 points.

Credit scores are essentially an estimate from the credit companies of the risk that you won't pay off your loan. Credit scores typically range from 200 to 800 and they are used by banks and insurance companies to determine rates for mortgage loans, credit cards, auto loans and other financing.

Some quick tips to boost your score:

Try not to use your credit card to the max. You should have a "usage limit" below 50 percent, meaning if you have a $10,000 limit, try to use $5,000 or less of that amount.

Avoid opening multiple new accounts quickly.

Pay off your debt rather than moving it around. Paying off a large balance improves credit scores.

The scores are compiled by three credit bureaus: Equifax Inc., TransUnion LLC and Experian Group. Consumers can obtain a free copy of their report from all three once a year, but you have to pay about $15 to see the actual scores.

Review your credit report annually

Reviewing your credit report is important to make sure that your information is accurate when applying for a loan. It can also help minimize the damage from possible identity theft. You are entitled to a receive a free credit report every 12 months, so why not request it each year on your birthday?

Your report starts with your personal information — name, address, social security number, telephone number, and employment data. Following that is your account information. Review all the details and make corrections if needed by following the instructions provided.

For each credit account, you will find the lender's name, account number, type of account, and loan information, including your payment history. The credit bureaus also collect information from court records, so don't be surprised to find notes about bankruptcies, tax liens, and/or criminal proceedings that may have occurred. At the end of the report will be a list of any parties who have requested your information.

Potential lenders review your report to determine your creditworthiness. They consider your track record in making timely payments, as well as the total amount of credit you are carrying. They want to determine if you are able to handle monthly payments on any new loans you may apply for.

When you review your report, make sure you agree with all the items listed. If you notice anything unusual it may be an indication that a thief is using your accounts without your knowledge, so review the report carefully and make a list of any incorrect or misleading information. You have a right to dispute incorrect information on your report.

Typically you will receive a form to complete if you wish to file a dispute. When the credit bureau receives your request, it is obligated to investigate within 30 days and to correct any errors. You will receive a report on the conclusion of the investigation, and if your credit report is changed as a result, you should also get an updated copy.

You also have the right to add a statement of 100 words or less to your report, explaining your side of the story with respect to any disputed information.

Credit report hidden errors

Most people are aware that they can obtain a copy of their credit report for free - or for a minimal charge - from credit-reporting agencies like Experian and Equifax. However, many have no idea what’s on their credit report, how to read it, or how to correct erroneous information. This article reviews six items that appear on your credit report, and shows you how to fix any errors you may find.

Personal Information

Are your name, social security number, address and other personal information accurate? If not, contact your credit-reporting agency to correct the error. A lending company would hesitate before lending money to someone whose name or address is different on their loan application than on their credit report.

Information on Open Accounts

Your credit report details all of your current credit card accounts. It spells out your credit limits, whether you have been paying your bills on time, and if you hold any balances.

Pay particular attention to the accuracy of this information. Lenders use it to gauge whether they’ll lend you money.

Mortgage Information

Credit reports also detail information on outstanding mortgages; your account number, the date you signed your mortgage and whether you have been late with payments. The same information is available for any other outstanding loans or lines of credit from your financial institution.

It is vital that this information is correct. If a lender perceives you as having too much debt they are unlikely to approve you for another loan.

Collections/Negative Account Histories

Your credit report identifies whether you have any accounts that are in collection, and the status of those cases. Because this information can adversely impact your credit score and determine whether you are able to obtain a loan, it is important that it is correct.

Some credit-reporting agencies offer services to help you resolve these issues or advice on how to improve your credit score.

Judgments & Liens

Any judgment or award against you in a court of law will be included on your credit report. It will specify the case number, identify the plaintiff and the defendant, verify whether the case is open or closed and detail its resolution (i.e. the amount that has been awarded).

Should there be a lien on your property, your credit report details the case number, the court where the lien was established, the amount of the lien and whether the lien has been released. Make sure your credit report reflects if your lien has been satisfied or the judgement has been reduced or rescinded. Bankruptcies

Bankruptcy information is also available on your credit report and should be monitored carefully. The report will outline whether it is an individual or a joint bankruptcy and include the amount of assets and liabilities you have incurred.

Incorrect bankruptcy information (especially the date bankruptcy was declared) is a frequent source of problems for consumers looking to obtain loans.

Correct Erroneous Information

There is a space for comments under each section of your credit report. You might say that a lien was established due to a misunderstanding with a vendor, and that it was promptly satisfied. You could note that you have paid off outstanding balances listed on the report. You may even choose to briefly explain why you are in arrears on a certain debt payment.

When making credit report fixing and correcting factual inaccuracies such as your address or the spelling of your name, provide your credit agency with written proof as soon as possible. With appropriate documentation, your credit agency should make the necessary changes fairly quickly.

Bottom Line

Try to obtain your credit report at least once a year and review it for inaccuracies. If you spot errors have them fixed as soon as possible. You’ll be glad you did.

No Cost Credit Report - How To Get It

Is it possible to get a no cost credit report? Yes, definitely. This is a good news to people who have serious credit score issues. Perhaps, you're wondering what your credit score is. Perhaps, you're considering taking out a loan for a new business or a new car, but you don't know if you would qualify. You really don't want to go through the hassle of applying for a loan just so you'd get rejected. You could avoid it by knowing your credit score before you even enter the doors of the credit agencies.

Getting it for free can be overwhelming when you don't know where to go and how to get it.

It is very important for consumers to check on their credit every year. They do not remain constant. You cannot expect to have the same credit score five years after you last checked. This could cost you your job or your house. Knowing your credit score is crucial. Luckily, it is now available to you at no cost at all. Indeed, you can get your totally free credit report online.

Every citizen is entitled to their no cost credit report every year. You can get them from the country's three major credit agencies. Before you can get it for $9.50, but these days, Equifax, Experian and TransUnion are required to provide Americans their free reports once a year.

No, you will not get them automatically. You still have to file a request in order to get your copy. You can do this in three ways:

1. You can go directly to any trusted website, the only authorized consumer source online in order to access your no cost credit report.

2. You can get your free report via phone by calling (877) 322-8228

3. You can request via mail by sending in your request and mailing it to Annual Report Request Service.

Your report is the basis of your credit score. Once you have sent in your request, you can expect to receive it within a reasonable time. You'd get a summary of your payment history, balances, payment behavior and accounts listing. What you get is not automatically your credit score. However, credit agencies would base your credit score from your it. The better it is, the higher is your credit score. If it reflects bad accounts or worse, bankruptcy, you'd likely have bad credit score as well.

When you receive your free report, it is very important that you check for disputable accounts and items. Make sure that it is accurate. Otherwise, you would be saddled by these accounts. You will not be able to easily secure a loan. You could lose your home over an inaccurate reporting.

Nowadays, no cost credit report is available to everyone. It is your right to avail of them so you'd know how you stand financially. Your report could mean a huge difference between having a difficult or easy financial life.

10 incredible facts about your credit report

1. I can pay credit repair companies to delete bad information on your credit report. A lot of credit repair companies use this false information to attempt to attract customers for their credit repair services. The truth is that if you have not paid your credit card bills on time, there is no credit repair company that has the ability to legally delete the negative information on your credit report. Bringing your payments in good standing is the only thing that will reduce the impact of your late payments, on your credit score.

2. My personal information on my credit report is accurate. Nothing is farther from the truth than this. Over 75% of credit reports have inaccurate information. The credit reporting agencies have human beings working for them, and they can make mistakes that can impact your credit score. Not only do they routinely make mistakes on your personal information, they can accidentally place derogatory information that does not belong to you on your credit report.

3. My bankruptcy filing will not be reported on my credit report after 7 years. It depends on what type of bankruptcy you filed. If you file a chapter 13 -- reorganization of debt -- then this kind of bankruptcy will not be reported on your credit report after 7 years. However if you filed a Chapter 7 bankruptcy -- forgiveness of all debt -- your bankruptcy filing will stay on your record for 10 years.

4. I need special skills to repair my credit. This is not true. According to the Federal Trade Commission, whatever the credit repair companies can do for you, you can do for yourself. So there is no need to make monthly payments to credit repair companies who end up charging you hundreds of dollars just to do the same thing that you can do yourself.

5. My divorce decree will exonerate me from all the debt that my ex and I jointly owed. This is not true. Just because you got a divorce, and your ex kept the house, and they agreed to make the mortgage payments, does not mean that if they miss payments that your credit will not be affected. Your credit will be affected. A divorce decree does not mean you are no longer obligated to pay your mortgage. Your mortgage company may work out something with you if your ex spouse agrees to sign a document that states that they will be solely responsible for making the mortgage payments. Now if their credit score is weak and yours is stronger, the mortgage company may not honor your request to have your name removed from the mortgage documents.

6. I will reduce my credit score if I check my credit report. Not true again. You can check your credit report without affecting your credit score negatively.

7. If a bunch of car dealers or mortgage companies pull my credit report, my credit score will go down. This is not true. Credit reporting agencies understand that smart consumers will shop for the best deals and will not penalize you by taking points off your score, as long as these pulls occur within a 30 day period.

8. I can boost my credit score simply by canceling my credit cards. Creditors prefer to see two to three open credit cards that are active than credit cards that have been closed out. You are even better off having a credit card that you do not use than canceling the one you do have.

9. I have to pay a fee to obtain a copy of my credit report. Not true. Credit reporting agencies by law are required to provide you with a copy of your credit report once a year. So you can contact any of the credit reporting agencies and obtain a copy of your credit report free of charge.

10. My credit score is so low that there is no way I can repair it. This is not true. You can repair your credit and boost your credit score if you know how to go about it.

So if your credit is bad and you want to repair it you must first make sure that you are clear on what you can and cannot do with your credit report. Once you understand what you can and cannot do, it becomes much easier for you to start the process of repairing your credit.

TransUnion offers free credit reports in wake of data suit

As part of the preliminary settlement of a class-action lawsuit, credit data agency TransUnion is offering free credit monitoring to anyone who had a credit card, loan or credit account between January 1987 and May 28, 2008.

The suit alleges that TransUnion sliced and diced consumer credit information and sold it in the form of marketing lists. TransUnion, which discontinued the accused arm, Performance Data, in 2001, has denied any wrongdoing. The company agreed to the settlement to avoid a protracted litigation process.

“We feel that this is the right thing to do, and it offers consumers the opportunity to monitor their credit and look at their scores,” said Clif O'Neal, a spokesperson for TransUnion. “We feel this is an educational offering. We realize that the privacy issue is more heightened in today's environment, so we feel these services are a benefit.”

In a bid to generate some positive publicity, TransUnion is advertising the offer in a nationwide campaign that starts in mid-June.

Consumers have two options in filing for the settlement: basic relief and enhanced relief. Basic relief provides free credit monitoring for six months, which includes daily credit report and credit score access. The service is worth $59.75, and consumers may also receive a cash payment if the $75 million settlement fund lasts. Enhanced relief offers nine months of credit monitoring, insurance scores and a mortgage simulator service —valued at $115.50.

To participate, consumers must register at www.listclassaction.com.

The nation's other major credit unions, Equifax and Experian, were tight-lipped on whether the settlement may affect their businesses or consumer marketing strategies. Equifax refused to comment.

Donald Girard, VP public affairs for Experian Americas, noted, “Experian's policy is to refrain from comment on legal matters involving other companies.”

He added, however, "Today's consumers understand more than ever the need to frequently interact with their credit reports to make certain they have a good understanding of the data contained in their file. As the data contained in their credit files changes often, consumers will always need to periodically check the file to keep themselves current on the status of the entries and to ensure that they will be able to achieve their credit objectives now and in the future."

Link-Via-Dmnews

5 steps to analyze your credit score

Credit history plays a vital role in building credit score. The exact way that your FICO score is calculated is a secret--it's proprietary knowledge of the Fair Isaac Corporation. Never mind but if you analyze your credit history you can get a good idea of why your credit score is in a particular range. So here’s are important tips to make it done:

Step1
Always remember to analyze the potential problems section on your credit report. These are the issues that can pull down 30 percent of your FICO score very easily. Potential problems can include bankruptcies, debts that have been given over to collection agencies and other delinquent accounts.

Step2
Keep a track of your accounts in good standing. If the companies holding these accounts have reported your current balances, this section is about 30 percent of your FICO score--the 30 percent based on your outstanding debt. Outstanding debt isn't necessarily bad. Debt is considered in terms of your ability to pay it back and how much credit you still have available.

Step3
Make a check over your history of account balances. This section combined with the potential problem section makes up as much as 35 percent of your FICO score because it tells lenders about your payment history.

Step4
Read carefully the listed requests for your credit history. This information can affect up to 10 percent of your FICO score, because your applications for new credit can drive down your score. However, only inquiries that you requested by asking for credit should be provided as part of your credit report for new creditors.

Step5
Try to know how your credit history contributes to your credit score. If you have a history of paying off your credit on time, limiting your problems and not abusing your credit, you will have a very strong credit score.

All these steps are followed by me first and then are recommended to you as there is a huge benefit after using them in real life.

All about credit score happenings

How strange it looks like if your loan application gets disapproved, or maybe you were approved, but the interest rate charged is pretty much higher than your expectation. How do you feel? My credit score is good, I know I checked. Maybe its not as good as you think. It all depends on there you got it and what kind of credit scores it is.

Only facts behind all this is there’s several different credit scoring methods. Credit scores calculated from the same credit reports can differ substantially from credit scoring method to credit scoring method. So how can you ever know what your credit score really is? Well, luckily, 75% percent of lenders use FICO scores exclusively and you can purchase FICO scores of your own.

FICO credit scoring is a numeric method of scoring your credit worthiness developed by Fair Isaac and Company. Your credit score is a number between 300 and 850 that tells creditors how likely you are to pay your bills. The higher the number, the better it looks to potential lenders and creditors.

The three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system, TransUnion uses the Empirica system, and Experian uses the Experian/Fair Isaac system. Despite each credit bureaus' use of their own versions, all systems are based the original Fair Isaac FICO scoring method, so each credit score calculated with these systems are generally called FICO scores. However, although most lenders do use FICO scoring, some lenders may have their own scoring methods.

There are many places where you can get your FICO score from all three bureaus. If you order your credit score from anywhere else, again be aware that these scores are "FAKOs" (or "fake") and can differ considerably from your FICO credit scores.

Adding to the confusion is the credit bureaus themselves. Recently, Experian revealed that the national average credit score of its consumers is 678. This is very misleading to the average consumer. When you buy your credit report and score directly from Experians website, you are getting what they call the "PLUS Score," which is NOT a FICO score, and is NOT used by lenders anywhere. (Equifax is the exception--you can buy your FICO score directly from them at their website. The 678 PLUS Score reported by Experian is actually the average of consumers' PLUS Scores, not their FICO Scores.

Clearly, the PLUS Score (and all Non-FICO scores) are useless. Not only that, but such hype misleads consumers into purchasing their PLUS Score thinking that they are getting the same credit score that their lender will use. Non-FICO scores are worthless not matter what the credit bureaus or any website selling non-FICO scores claim. Even a few points difference in your credit score can mean confronting the reality of the loss of thousands of dollars out of you’re pocket--a loss that you probably didn't plan for. The next time you want the most accurate credit score available, do yourself a favor and get the industry standard: the FICO credit score.

Facts about credit reporting agencies

You may never see one, or visit one, but the credit reporting agency is always there in the background. These are the companies that assign credit ratings for both corporations and individuals. The credit rating is a way of measuring credit worthiness-or in other terms, the ability to pay back a loan.

You may envision a remote room in an unknown place where individuals in lab coats collect and collate personal data on people. Actually, in the earliest days of credit reporting, this was exactly the case. The ratings were compiled by hand and banks could call and check on anyone they wanted verbally. In modern times, the data is sent in via magnetic tape reporting or secure data transfer and the only times humans really involved is when there is an inaccuracy on your credit report that needs to be investigated.

There are hundreds of extensions of the "Big Three" Experian (formerly TRW), Equifax and TransUnion that are located all across the country. Because the credit bureaus competitors and do not share information with one another, it is a good idea to check the Big Three regularly to ensure there are no errors or omissions on your personal credit report.

Thus, it becomes the responsibility of the individual to check up on the people that are checking up on everyone else. Changes in the statutes for credit reports now make it possible for everyone to get one free report from each of the three major credit bureaus per year.

Looking at your own credit report will give you valuable insight on how your history is being rated. It would also help to understand the laws that govern how these agencies are able to do business. Know your rights! As the old saying goes, "If you don't know your rights, you don't have any." There may be times that require you to challenge something inaccurate on your report. Since your credit report is the way many firms will "know" you, you want every item in it to be absolutely accurate.

You may think that you have a good credit report but a credit report that has something questionable contained within it may be the difference between getting that new credit card or auto loan and being denied. And if you're in the process of applying for credit without this knowledge, you can be turned down. This is why checking up on your personal credit report and going through the complaint or correction process if necessary is so important.

Since the credit reporting agency is the standard of how the world determines credit worthiness, make sure that any lenders or retailers you want to do business with are reporting to one of the major agencies and that information gives a one-hundred percent correct picture of how you handle your personal finances.

Credit report fraud: Freeze It

Recent federal laws and Minnesota state laws help citizens protect themselves from new account fraud by allowing “freezing.” The laws empower any consumer to freeze their credit report by contacting any of the three major credit reporting agencies and requesting a credit report freeze. This action will deny potential thieves access to the credit history and prevent them from opening new credit cards or loans in the consumer’s name.

Victims of identity theft can have their reports frozen without a charge, but they will need the theft documented by a copy of the police report or case number. People who have not been victims of identity theft can choose to freeze their report for a $5 fee to each of the credit reporting agencies. When an agency receives a freeze request, it must place the freeze within 3 days of the request. In addition, the agency must provide a unique Personal Identification Number to the consumer within ten days.

The PIN can then be used by the consumer to temporarily lift or “thaw” their report for a specific period of time or for a specific creditor. For example, you are car shopping and want to allow a dealership, credit union or bank to look at your credit history to obtain a car loan. Or you may request your information be openly available for a specific period of time, like 30 days, in order to shop at several locations. After this period is over the report will automatically refreeze.

The thawing process is free to those who have been identity theft victims. Those who have not been victims will be charged the $5 fee for thawing.

Check your credit online freely ‘n safely

No future plans to apply for a loan or credit card then there’s no need to keep an eye on your credit report and score. But failing to regularly check your credit report leaves you open to victimization - by the actions of criminals and the errors of creditors.

The credit crunch is squeezing consumers across the country, and not just those looking for loans. With credit increasingly costly and hard to come by, it's more important than ever to protect the credit you already have. That means closely monitoring your credit score, the single most important tool you have for obtaining favorable credit terms now and in the future.

"Identity theft, credit fraud and erroneous credit reporting can happen to even the most conscientious consumers," says Jeff Bartlett, president of GoFreeCredit.com. "Knowing what's on your credit report can help protect you from these increasingly common credit crises."

Now online services make it easy to keep an eye on your credit score. Remember, there are also scammers online posing as credit-help companies, so keep a few things in mind when obtaining your credit report from a site:

* Is it safe? Sensitive information, like your social security number, should be encrypted for security.

* Is it reputable? The company hosting the site should demonstrate credentials or associations with organizations that recognize reputable businesses. GoFreeCredit.com, for example, is a member of the Better Business Bureau.

* Is it free? While some reputable sites may charge for your report and score, why pay if you don't have to? At GoFreeCredit.com, your report and score are both free with a 30 day complimentary trial of credit monitoring.

* Is it offering you more? In addition to your free credit report and score. You'll also receive tips on how to improve your score, such as paying on time if your report shows missed or late payment history, keeping credit card balances lower than your total credit limit and keeping a variety of credit such as auto loans and credit cards to show financial responsibility.

Sign up for a free credit report and score at any website and you will also receive a 30-day free trial of the site's credit monitoring service. Credit monitoring can help prevent identity theft, providing you with automatic notification of changes to your credit report.

Boost your Fico score now!

Most of the lenders uses Fico score as credit score. Since so many borrowers are failing to pay debts, lenders are placing a lot more importance on that number.

The FICO score is calculated based on complicated math which takes into account the behavior of millions of consumers. But, there are ways to take control and boost your score.

It's no longer enough to hit 620. Lenders are requiring scores at 680 and above to be worthy of their money.

Peter Benavides cares about his FICO score because he eventually wants to buy a home in the Bay Area.

He believes he is financially responsible and holds strong credit. But myFICO.com tells a different story. It's an online calculator by Fair Isaac - the firm that invented the primary credit scoring system and it shows his score is lower than he expected at 602.

Benavides is surprised by his subprime status because the program says he pays bills on time and only carries $1,500 in debt. Believe it or not, the problem is with his lack of plastic.

Jen Crawford with myFico.com explained, "His number one factor or biggest problem is he's using 95 percent of his credit cards."

Because Benavides puts purchases on only two credit cards, it gives lenders the idea that he is maxed out and more likely to miss payments. If he opens a third card that debt will spread out.

As long as Peter continues to use 50 percent or less of his available credit his FICO score will rise.

"He can easily reach the low 700s within a couple years," Crawford said.
Peter Benavides looks forward to the challenge.

"As long as I know ways to improve my score I'll feel more confident for the future," He said. "There is a price to pay and you have go to with it. You have to prove you are responsible enough to obtain a good credit score."

I think all these tips would definitely help to grow your FICO score fast.