Richard Larkin asked:




When you access your online credit report, you should have an idea of what you are looking at. Many individuals spend their hard earned dollars to see their online credit score, but it doesn’t help them because they are either confused by some of the terms or they aren’t looking at the correct report. In short, there are a few things you should be on the lookout for when accessing your credit rating report.

Things you should know before obtaining your credit report:

Be careful, as there are many fraudulent reports online that are misleading and have been known to fool many people. Always look for the official FICO score on the bottom of your credit report, especially since you are paying good money to obtain that report.

You want an official FICO credit report when you get a copy of your report. The name of this report varies, based upon which credit reporting agency you use.

You will be receiving the Experian/Fair Isaac Risk Model credit report when you get a free instant credit report from Experian. Equifax calls their reports “Beacon Score Reports.” Trans Union does it a bit differently, having different names for each of their three credit reports.

It will either be called the Empiria Report, FICO Risk Score report, or the Classic. If you choose to go with merged credit reports from all three of these companies, then you can sometimes miss out on having all of these scores at your disposal.

Watch out for Special Offers

These offers made by companies for their online credit reports often are trying to get you involved into another type offer which will cost you more. By agreeing to sign up for their credit monitoring service, these companies provide free access for your online business credit report and your personal credit report.

While it may sound like a temptingly good deal to begin with, in the long run credit monitoring can be expensive. Checking your online credit report on occasion is a much more cost effective way to prevent any problems before they happen, and it is an effective way to monitor your credit.

Scams are Almost Everywhere

Each and every month, more scams pop up in which people try to use your sensitive personal information for fraudulent purposes. Be aware of companies out there that are posing as credit repair companies or a credit counseling agency. If they make promises that seem a little bit out of the ordinary to you, then there is a good chance they are pulling a scam.

Avoid suspicious emails and websites. Exercise caution when considering who to give your personal information to. Unwary people are lured by the promise of inexpensive credit reports.

MyFICO.com

Try Myfico.com for a trustworthy site where you can access your personal credit report. The vital information you will be looking for is included in the online credit reports provided by them.

You will have a chance to view your official FICO score from each of the credit reporting agencies, as well as all of the current information that each of the three bureaus has on you. You have access to all of that for about $45.

Susan

Ann Born asked:




If you are like the many users, you are getting your personal credit report via the internet. If you have not and are considering doing so, there may be a few things you should know. Were you aware that you could get a free printable online credit report through the many places that offer credit reports online? Most of the web sites that offer credit reports will offer a printable version as well.

Getting your free printable online credit report can help you save a good deal of time and prevent the need to constantly go back and forth reading and re-reading the report repeatedly. By using the option to get a free printable online credit report, you will be able to go over it thoroughly right at your desk, table or anywhere. This could give you a better insight into what is on the credit report that you may not be able to get from the computer screen.

Your personal credit report may contain some items you need to carefully investigate and understand that may be hurting your credit rating. Having the free printable online credit report right in front of you can help you come up with a plan to report errors and improve your credit rating.

Many of the web sites on the internet offering credit reports online, offer a free 30 day trial. Take advantage of this trial and receive a free printable online credit report. After you receive this, you can then cancel the membership to that web site if you think you will no longer need to use their services.

It is important that you understand that as a free member, you may not be entitled to a free printable online credit report on every web site. As their popularity increases, most reporting companies are putting an end to the free printable online credit reports. You may have to pay a small fee on some for the printable version.

There are many advantages to having a free printable online credit report. For example, if you find yourself turned down for credit, you have the option of taking them the report and giving them a first hand look at what is contained in your credit report. If this does not influence their decision, take your very detailed plan on improving your credit. By showing them your determination and ability to make each payment every month, you may find them more accepting of your credit application.

Henry

John P Henderson asked:




A free credit report can help you understand your current status is the eyes of lenders. If you have been refused credit then a report could reveal the answer why. Here is 4 reasons why you should try a free credit report service:

1. Unknown Report Access:

If you have a lot of subscription services then you may have over looked a specific provider and if your payments are past the due date then this could harm your rating. Subscription services or membership clubs which require regular payments may be included here and you can see which ones you may have forgotten about.

2. Increase Chance Of Employment:

Its a well known fact that people with bad credit history may be less likely to be employed as this shows your employer that you may have bad manager skills. If you cannot manage your finances then your potential employer may take this into consideration when deciding on the outcome. If you repair your rating before hand, you will have a better chance.

3. Investigate Identity Theft:

Identity theft is on the rise and if you are a victim, you might not even know it until you check your credit report. By doing a personal investigation, you can determine if the reports shown have been done by yourself or an unknown person. Highlighting these key areas will enable you to pursue legal action.

4. Improve Your Credit Rating:

Are you finding it hard to attain credit, if so, you can view your report to see what the issue is. There could be a bill that comes out of the bank earlier than you though and this may accumulate bad ratings. By researching your rating using a free credit report service, you can put this right and increase your score.

Craig

Justin Fox asked:




Searching for a sample credit report is something that a lot of people seem to do online. While a sample credit report might give you an idea of what to expect, getting one is largely a waste of time. Here’s why.

The credit reporting industry is largely regulated and the Fair Credit Reporting Act really protects the consumer.

So much so, that it is actually law that each of the consumer reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a genuine, full and free credit report once per year, if you ask for it.

Instead of getting a sample credit report, you can get the real thing!

Of course, the trick then is knowing what to do with it. But that’s not so hard either.

Your genuine credit report simply lists all items collected by the consumer reporting company that affect your credit rating.

Once you get your credit report, you simply have to pick out the items on it that are either wrong or not totally right. Each of these items offers an opportunity to improve your overall credit score.

Write a letter to the relevant consumer reporting company listing each of the items from your report that you think are either inaccurate or misleading. If you have any, then it is a good idea to attack documentary proof of why you think each item needs to be revised.

After that, the company will look into your claims and if the report is changed they will send you a new one with the changes.

So why bother going with a sample credit report when you can get the real thing and make some real changes?

Of course if you are not really sure what to do with your report, which items to dispute or how to go about disputing those items, then you might like to consider the services of a credit reporting company to do it on your behalf. Often they will have a better rate of success as they know exactly what can be disputed and they will know the best process to ensure a positive outcome. Many of them work with a results guarantee too.

Such companies will monitor your credit report on your behalf and provide you with itemized lists of the improvements that they attain on your credit report.

The investment in a reputable and respected credit reporting company is often well worth getting cheaper and more credit based services in the long run.

Tanya

Jonas Smit asked:




For the last few ages there have been an amount of con artists who have been earning people’s lives a misery by stealing their identity and running up thousands upon thousands of dollars of debt in their name. However, like many I’m sure you would never get caught out like that – or would you? Do you feel that the persons who had their identity stolen are earning it up, or are so dumb that they probably created it effortless for the thieves who stole from them?

Well prepare to be shocked. It is often some of the most careful and credit conscious citizens who get caught out by these thieving “con men” and “con women”. Now logic says it should not happen if you keep an eye on your credit rating you will be among the folks who get ripped off. Allow me to explain how the credit report scam works, and you will soon see why it is potential for it to be happen, even to you. We will take a case of someone who is careful about maintaining their advantageous credit rating and who is security conscious. They like to get hold of their credit report every year, so that they can go through it and check that all the details are correct.

They make sure no typos have occurred that will bring them into a bad situation when they next apply for a mortgage or an auto loan, etc. All sounds ok so far don’t it? Well maybe, but we’ve already passed the point where the scammers would be lurking, watching out for the unwary. That point was when our conscious good friend above got hold of their credit report. You see, when you decide to get a copy of your credit report it is necessary that you check out the website you are requesting it from. That’s because the scammers usually set up a very qualified exploring website, which all seems a board and legitimate, and they give a cost-free credit report. After that it’s just a case of waiting for the unwary. If you haven’t checked out the web page where you will fill out the report with all the details you would expect to fill out on any legitimate site, you can be in trouble. You will fill out items such as:

* Full name
* Address
* Date of birth
* Social security quantity

They might even ask for details of existing credit cards, etc. What if that site was a fake site and not a real credit report provider site? Now when you appear at that can you see how trouble-free it is for them to run a credit report scam, and then simply walk off with all the details, they would require to steal your identity?

Laura

Justin Smith asked:




Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).

The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:

1. The most obvious: pay off your debt! This doesn’t include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.

2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see real results from your on-time payments, but keep it up, sooner or later the credit bureau will notice the change in your payment habits. Develop the mentality that no late payment is acceptable!

3. If possible, pay over your minimum amount. This is especially important with credit card balances, and will reflect a slight boost in your score.

4. If you have paid off all your debt, and your credit score seems to be at a stand still, you might want to make small purchases each month with your credit card and pay them off immediately. Often times the credit bureaus like to see at least some kind of activity. Otherwise, they have no way to gauge how you are doing financially.

5. Be patient! Sometimes repairing credit can be a long and arduous process. Especially if you have had a bankruptcy. It can often take the better part of a year or more to see any significant raises in your score.

Clearing a derogatory mark on your credit report:

This is probably the most difficult in regards to credit repair. If you have requested a copy of your credit report, and notice a problem (an example would be a late payment mark), that shouldn’t be there, you need to take action to get the derogatory mark cleared as soon as possible. It is extremely important to get your credit score cleared before you attempt to get prequalified for mortgage.

Here are the steps you should take:

First of all, if you are in contact with a loan officer, you may want to describe the problem you are having to them. They can be very helpful when it comes to credit repair, and should know exactly what to do if you have a bad mark on your credit that is a mistake. In some cases, they may even call the creditor for you to address the situation.

Second, you should call your creditor and each credit bureau to find out which course of action you should take. In most cases, writing a letter will do. Here is an example letter:

Date 00/00/00

Dear Big Credit Bureau,

This letter is a complaint that you are reporting inaccurate and/or incomplete credit information on my credit report.
I am displeased that you have included the below information in my credit profile that includes the following errors. Credit reporting laws ensure that bureaus report 100% accurate credit information.

The following information concerning my credit report needs to be re-investigated. I respectfully request to be provided proof of this alleged item on my credit report. If this cannot be provided, the item must be deleted from my report as soon as possible:

CREDITOR AGENCY, acct. 123-34567-ABC

The listed item is inaccurate and/or incomplete, and is a serious error in reporting. Please delete this information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Also, please provide the name, address, and telephone number of each credit grantor or other subscriber.

Under federal law, you have 30 days to complete your re- investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.

Sincerely,

your signature

Your Name

SSN# 123-45-6789

Unfortunately, you will need to write 3 separate letters to each of the 3 major credit bureaus. Here are the contact addresses for each:

Trans Union

P.O. Box 1000

Chester, PA 19022

1-800-888-4213

Equifax

P.O. Box 740241

Atlanta, GA 30374-0241

1-800-997-2493

Experian

P.O. Box 2104

Allen, TX 75013-2104

1-888-397-3742

Veronica

Clara Ghomes asked:




Negative credit rating of any consumer is termed as Adverse Credit Report. It is also called bad report, poor report, impaired report or sub-prime report. Many lenders, creditors and other credit extenders consider negative rating on reports as undesirable for purpose of loaning capital or money. A consumer’s report is compiled by credit bureaus and these reports contain data provided to them by creditors.

These reports contain detailed information of a lender-borrower relationship. Regular (usually monthly) reporting of account information, payment history, high and low balances, credit limits and any actions which were taken to recover the debts is done. This data is reviewed by a creditor to decide the terms and conditions of approving the loan.

With increasing popularity of credit, it became difficult for creditors to calculate and approve the loan and credit card applications efficiently. Credit scoring was adopted to address this issue as this method helped in credit availability at a low cost. Credit scoring involves creating numerical value to describe the worthiness (credit rating) of an applicant. The scores analyze the credit history to calculate the risk involved (financially) and help the lenders to assess applicants without prejudice. The scoring calculates the probability of the repayment of the loan (or any other obligation) taken by a consumer. Higher score means better credit rating (credit report) and higher probability of loan repayment.

The score can suffer when lenders report a lot of late payments. Also, when activity regarding collection agencies or bad judgements is reported, then the score decreases further. Repeated entries in the public record lower the score and form a negative rating or adverse credit report. The credit score number is calculated from factors like amount of outstanding versus how much the person owes, the duration of credit, the ability to pay bills, the credit types used and the number of inquiries. If a lender requests an applicant’s credit score, then it can decrease the score as more inquiries in short span of time indicates the difficult financial situation of the applicant.

The data in the report is sold by bureaus to lenders considering whether to offer a loan to a company or an individual or not. The information in the report is also given to other people with permissible purpose. The consequences of a negative rating or adverse credit report mean less likelihood that lender would approve the credit application of a person. Also, the interest rates are considerably affected by the credit report. If the credit rating is high, the interest rate is low and if the rating is low, the interest is high. Many times, employment, housing and even insurance could be denied to a person with adverse credit reports.

Christina

Suzy Vanstrusen asked:




This article contains tips on how to read your credit report correctly and how to take the appropriate action based on the contents of your report. We’ll also discuss the steps you should do to fix your credit report and boost your credit score.

Your credit report

Your credit report is divided in four parts and these are your personal identity section, your credit history, public records (if any), and the inquiries made by to your report. The first section obviously contains details about your personal identity while the other three sections contain information about you and your relationship with creditors, insurers, lenders, and employers.

Keep in mind that a credit history will reveal everything that concerns you and your creditors. This is where all your accounts, debts, unpaid charges, credit limit and payments are recorded. The next part of your report is the public records section where tax liens, bankruptcy, foreclosures, judgments and other legal remarks are reflected. An ideal credit report should have this section blank or empty as any remark contained here can affect your credit rating really badly.

The last part of your credit report is where all inquiries from potential creditors, insurers, employers and other companies are reflected. If you submitted a credit card application or a loan application, your prospective lender will be inquiring about your credit report and you can see it under this section. These inquiries are called “hard inquiries” and can very well affect your credit score. But inquiries that are initiated by companies who are interested in offering you credit are called “soft” inquiries and will not damage your credit score.

Your Credit Report Score

The system of calculation used by the three major credit bureaus and most companies is the FICO system. The FICO score ranges from a low of 300 to a high of 850. Each lender has different sets of qualification when it comes to considering a credit score. However, a credit score of 700-750 is usually considered as good while a score of 750-800, excellent. Obviously, with a higher credit score, you can bet on the approval of your application and demand for better rates or higher credit limit. A score of 650-700 can be considered fair and it would be up to the lender whether you’ll be granted an approval or not.

A score of 600-650 is considered as bad and a score of 600 and below makes you a high-risk borrower. In such case, your only chance of getting approved is if you apply for a bad credit or a sub-prime credit card or loan.

Improving Your Credit Report Score

After reading your credit report and finding out about your credit score, you can now gauge your status to prospective creditors. If you’re thinking about applying for a credit card or a home loan, reviewing your credit report is a must. What is the next best thing to do once you find out that you have a poor credit rating? It is advisable to work on improving your credit score first before submitting your application to any lender. This will prevent rejection of your application which can only worsen your current score. It’s best to wait to wait at least six months and pay off your unpaid debts to your existing creditors. Keep up with your payments on time and you should see a progress in your score after a few months. By this time, you will be more prepared to take on a new account without fearing rejection.

Arnold

Tim Gorman asked:




Many people who look into their reports find that their credit information has errors and those errors usually affect your credit negatively.

Maintaining an accurate score sometimes requires us to be pro-active, and we must write letters to remove information off our credit report. These are sent to the big 3 credit bureaus. Although in many cases the first thing most people want to do is to call the Credit Bureau and tell them off, this would be counterproductive. Instead the best method would be to sit down and write a credit report dispute letter.

You should read your credit report, take notes as to what you consider the problem areas are and think whether what’s on the report could actually be true. If, in finding that what’s on the report is false, you need to think through how you’re going to word your letters to remove info off credit report. You’re going to have to send a copy of this letter to each of the three main credit bureaus: TransUnion, Experian, and Equifax. Be polite and state facts as you see them. See example letter below.

Dear (credit bureau name here),

After looking at a copy of my credit file, I found that it contained erroneous information. I would like to dispute this information and request a correction. I am concerned about the information that you have put in my credit report as it could seriously impair the credit rating I enjoy with lending institutions.

You have not (state the problem here).

Be sure to include the month, and the date, and the name of the business.

I am enclosing a photocopy of my cancelled check as proof of my payment. Hopefully, this will correct the accuracy of my credit file. As you are certainly aware of, the credit bureaus are only allowed to use accurate information in a consumer’s credit file.

Thank you for correcting the above errors to insure that it doesn’t impair my personal credit. Please contact me as soon as the correction has been made and my credit report is again accurate. Please send a copy of my credit report to: (place mailing address here).

Yours,

(Your name)

Be sure to include your full name as listed in your credit report, address, Social Security number, copy of your driver’s license, copy of the credit report, and copy of your proof, i.e. cancelled check.

Be sure to retain a copy of whatever you send to each credit bureau. Make a note of the date that you mail your letters to remove info off credit report. Using certified or registered mail is a good idea, as this will give you proof of the mailing date.

Chris

Bob Pering asked:




The derogatory credit information section in your credit report lists all the items that negatively affect your credit rating. It is this section that is given the most attention by creditors and lending agencies.

The most damaging types of credit information are bankruptcies and foreclosures. These items can be reported on your credit report for up to 10 years.

The second most damaging types of credit information are accounts that have gone to collections. Any account sent to collections affects your overall credit score in the worst way.

A collection account can stay on your report for seven years from the date of last activity In actual practice, collection accounts are often sold to another agency at the end of the seven year cycle, which creates another activity, which means the seven year reporting cycle starts all over again.

Other derogatory information in your credit report includes accounts that show a slow payment history and/or past due accounts. Unpaid student loans, judgments, and unpaid medical bills also show up here.

How to Handle Derogatory Credit Information

Derogatory information can be disputed when it is inaccurate. If, for example, you can prove you made a payment on time, when it has been reported otherwise, you should be able to have the error corrected.

Disputing errors is done by sending copies of your documentation to the credit bureau via certified mail. Once the agency receives the dispute, they must contact the lender for verification of accuracy. If the lender does not respond to the dispute within 30 days, the credit bureau must assume your dispute was accurate and remove the disputed item from your credit report.

A way to handle derogatory credit information in your credit reports when the lender will not remove it is to send a written explanation of the circumstances regarding the item. You are allowed by law to submit a 100 word explanation of the problem to the credit bureau, which then becomes a part of your credit report.

The derogatory credit information section in your credit report lists all the items that negatively affect your credit rating. It is this section that is given the most attention by creditors and lending agencies.

Rhonda