3 Credit Reporting Agencies

February 23, 2009 by  
Filed under Credit Report, Credit score

There are many private credit bureaus which state they would offer credit reports. But beware. They could be scams. In the US there are only 3 credit bureaus which offer credit reports. These give a fair idea to the creditors whether they are taking the right decision while lending the money to the individuals.

What are credit reports and how does the credit score affect a person:

All the 3 credit bureaus Experion, Transunion and Equifax are actually helping the stakeholders i.e. the creditors in this case earn their bread and butter. These bureaus provide the credit report and also counsel you on what modifications you need to make. They also keep you posted 2 times a year on the status of your history and also caution you when you are about to exhaust your limit.

Your credit score which reflects on the credit report plays a very important role in your standard of living. One must understand that the reports generated by these credit bureaus may not tally with each other in all respects. The approach adopted by these credit bureaus may be similar in fashion. One would notice that the report generated by these 3 credit bureaus would more or less imply the same thing. A credit report includes the name of the borrower, his address and the name and address of his employee, place of work etc.

Information or data related to his past credit – whether he or she has any past pending loans or mortgages to be cleared – credit balance at the banks etc.

Pattern of payments – it gives an idea of your past payment pattern. How regular or irregular one has been with respect to settlement of monthly bills, loans etc.

Legal records – whether there are any cases of litigation or legal case proceedings in the court of law against you.

Your personal statements – It is mandatory for an individual that he provides a statement containing all the personal information.

Most information contained in the credit report should have error free information. One should ensure that you give attention to details in the credit report. Credit bureaus have good contacts with creditors and financiers. Since they are in the industry since a long time, it enables the credit bureaus to generate error free and accurate reports. Each credit bureau would have its set pattern relating to the past history of an individual’s credit pattern. Each credit bureau would generate reports based on the credit score of the individual.

Credit bureaus main source of income is the technology of credit scoring. The credit bureaus generate credit reports based on the individual’s credit score which enables the creditors to decide whether it is worth giving credit to an individual or whether the individual is credit worthy.

Calculation of credit scores: Credit bureaus use the FICO score to arrive at the credit score of an individual. Most of the creditors work in close association with credit bureaus to arrive at a decision. In case you are moving to a new residence and you need an electric connection, the electric company would first get in touch with the credit bureau to find out your creditworthiness.

Cell phones: While purchasing a cell phone also, the cell phone company would first confirm with the credit bureau regarding one’s creditworthiness.

Accessibility: Every individual has free accessibility to credit reports. Individuals can contact the credit bureaus and get their free credit report annually. You need to pay a fee to the credit bureau for getting your credit score.

It is also important that one checks the credit report for any errors or ambiguity. One needs to also ensure that the credit report is up-to-date, accurate and clean before applying for a loan.

Government Free Credit Report

February 22, 2009 by  
Filed under Credit Report, Credit score

The Federal Government has recently passed a rule which states that every individual is at liberty to receive his or her free credit report every year. It is true that many people are not even aware of this rule. This rule has been passed by the Federal Government with effect from 1st September 2005. The Government has segregated the country by parts so as to ensure effective control of enquiries. So every region or State in the US has a different date from when this law has been effective. These rules and regulations have been specifically passed by the Government to ensure that there are no problems relating to the credit dealings and also to ensure that fair business is transacted between the individuals.

How to ensure getting your free credit score:

Once you have received your free credit report from any of the credit bureaus, you must ensure that the entries passed in the report are free from errors or ambiguity. The sooner your detect an error, you can pass on this information to the bureau who would thereafter look into your case and ensure that the error is rectified. Sometimes, it would take a very long time to correct the mistakes in the credit report.

Procedure for a free credit report:

It is one’s right to claim a copy of the credit report every year from each of the 3 credit bureaus. You could browse the net and file in for a free credit report from the credit bureaus. All the above 3 credit bureaus have also a common website where you could post your request for a free credit report.

In case one wants to have the report delivered through mail, then one needs to send a request in writing along with 2 Xerox copies of your identity. You would then receive your credit report by mail. Getting your credit report by way of tele calling is not possible, since they do not entertain phone calls.

How does one ensure a free credit report from the Government?

Our credit score decides our eligibility for a loan from a Bank or a mortgage loan from a financier. At some point or other, the need for a credit score is felt. Even insurance premiums are decided on the basis of the credit score. In case you have managed to earn a good credit score, you can be assured of a lesser insurance premium. Your credit report also gives a fair idea of your credit score and the number of times you have applied for credit. Whether it is worthwhile giving you more credit? Whether you would be able to fulfill your payments on time? Whether you would be a defaulter by any chance?

Free credit report”

Before one actually puts down the application for a loan, it is advised that one checks the credit report and credit score, to get an idea of one’s standing. You could try other methods to find out whether you could increase your credit score in any way.

Why one needs to check the Credit report?

One cannot trust the credit bureaus completely with regards to the credit reports. One also needs to have an understanding of what encompasses a credit report. One should be smart enough to check the credit report to see if everything is okay and there is not absurdity in the reports.

Errors detected early can help in quicker rectification. The longer the time taken to identify your errors, the longer the credit bureau would take to rectify those errors.

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Experian Credit Watch Program

February 21, 2009 by  
Filed under Credit score

If one is a victim of identification theft, then it is an absolutely irritating, expensive affair. When you are not equipped with the right information, then it could be very frustrating. Experian is a credit bureau which helps people in setting their credit records. They generate credit reports and on that basis, the banks and financial institutions guarantee you a loan or a mortgage loan.
In case you have registered with this credit bureau, it is easy for you to get your credit report. You only need to click on the button and view your current report. Experian also gives free credit report either online or on the telephone.
Your credit report could be affected due to frequent changes in your job or employment, frequent change of residence. It could affect your credit rating. This would shut doors in case you need to change your residence. You need to keep checking whether you have received a notice from Experian that you could view your credit results. Experian would also give you free credit reports.
One is advised that he or she maintains an error or ambiguity free credit file. One could request Experian to forward them a free credit report. Experian also caters to a wide variety of information namely with regards to credit information, bankruptcy details, consumer loans etc.
One can always request for a free credit report. Once you have received it from any of the credit bureaus, you need to file it and maintain it for future records. The free credit report gives us a fair idea of the information relating to dates when there have been transactions related to receipts and payments etc. In case you come across any errors in the report, it is mandatory and imperative that you report such cases to the bureau so that they could effect the necessary changes in their records. This way you could also be saved from future problems if any.
Individuals order these free credit reports when one has subscribed for a credit monitoring service. As per the government law and federal law, every individual is entitled to a free credit report from Experian.
The very essence of your credit health is the credit score which is reflected in your credit report. These bureaus make a thorough study and analysis about your creditworthiness. The report normally give a view about the credit history, the different types of accounts your have maintained, the frequency in which you disburse your pending amounts, the credit amount you have used and the credit amount which is still pending with you. It also gives you a snapshot of how effectively you have maintained your credit.
It is mandatory for credit bureaus like Experian to effect changes in the credit report within a stipulated period of about 30 days. They have to effect the correct entries in your credit report. The bureau should also look into any ambiguity or errors in the reports. Any misinformation in the report which has been termed an error, but cannot be justified as an error, needs deletion from the records.

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Car Repossesion and Credit Report

February 20, 2009 by  
Filed under Uncategorized

Your credit score is affected if you are a victim of car repossession. Now let us see how this operates. Assuming you are no longer able to make your EMI payments, it would automatically reflect in your credit report. You would have already crossed the 30-60 days due date. Realization would have set in only after 2 or 3 months. Now, what do your do. It is definitely not good if the repossession occurs.

Say for example X Company wants to repossess your vehicle and your outstanding amount of loan is about 9000 dollars. Once the company is in possession of your car, they have every right to dispose off your vehicle. Suppose they dispose off your vehicle for about 5000 $, they would still want you to settle the outstanding amount. You would still have to pay the outstanding amount even though you do not own the vehicle. Your credit report would reflect the repossession item. It would be denoted by I-9, which indicates that you have yet to settle the installment amount.

If the company feels it is not able to get the money back from you, then would write off this as a loss or bad debts.

Now what happens when you intend applying for a loan from another company. They would want to check your credit report, and if they notice the repossession clause, it would affect your creditworthiness. You can be rest assured that they would not want to have any dealings with you. This entry would remain in your file for the next 7 years, making it absolutely difficult for you to get any future loans and credits.

Your credit score automatically drops down and you are not in a position to get any credit from any company. Despite your best efforts to settle the balance loan amount, the entry still lingers in your credit file for the next seven years. There are possibilities that you could still talk to your creditors that you have paid off the outstanding amounts. Ensure that you communicate with your creditors in writing. Also ensure that your creditor also pens down the agreement so that there are no errors or any communication problem. Hence one is advised that one maintains all communication in written form.

If your credit report goes for a toss, then it is extremely difficult to rectify it. This does not imply that you have permanently spoilt your credit report; it implies that it would take time to rectify the damage caused. One needs to ensure that one pays off all the pending loan amounts due and start afresh, applying for a loan. There are methods and means where you have to pay the creditor about 500$. This is just like a deposit, in case you are unable to make the payments. The creditor is assured that he has not lost his money. The payment due would be deducted from this deposit amount.

A bad credit score could also be a hurdle in getting a good job. You would also have to exorbitant rates of premium on your car and vehicle insurance.

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Free Yearly Credit Report

February 19, 2009 by  
Filed under Credit Report, Credit score

The holiday period of the year is usually accompanied with lot of fraudulent credit card cases, theft with regards to identification of a person. One needs to ensure that one keeps a check as well as track on his/her credit report. So then how do you go about this checking of credit reports. Let me explain this to you. One needs to check one’s credit report with regard to the following points:

  • Any case of errors/ambiguity
  • Any cases related to fraudulent entries/identification theft
  • To enable one to avail of the best possible interest rate
  • Since many lenders rely on credit score, need to update your report and maintain an accurate credit report.

Time when you need to check your credit report:

One is advised to check one’s credit report when one is absolutely sure of one’s credit records and you do not anticipate any major purchases in that particular year.

Always ensure an accurate credit report before you apply for a loan or a mortgage of a bank so that you have enough time in correcting and rectifying any errors, if any. An inaccurate report would be the reason why your request for loan could be rejected outright.

In case you have not been able to get a loan sanction from the credit report submitted by the credit bureau, then you have every right to ask for your free copy so as to find out the reasons behind the rejection of the loan by the bank or the lender.

You also need to check your credit repot in case you are a victim of identification theft.
In case you intend to clear your negative credit score and start afresh, you need to keep a check on your credit report.

How does one go about checking his or her credit report?

The 3 bureaus which are connected with the credit report are Equifax, Transunion and Experion. It is mandatory that you get your free credit report from either of the agencies annually. You could cross check the reports of all these 3 agencies because the reports do not normally tally with each other. You could check for discrepancies and errors if any and report the matter to these agencies.

Try and order the reports from these agencies giving a gap of 1 month in between, so that you have a correct picture of your credit score. Compare the reports thoroughly. There is this bureau which is the annual credit report.com site which gives a free credit report online. One can check one’s credit score without having to shell out extra dollars. There are other private agencies who do offer this service, for a fee but one is advised to be aware of such scams.

Another alternative to check out if there is any fraud is to order for a 3 in 1 report from Myfico.com. One is advised that one checks one’s credit report periodically so that you do not fall a prey to frauds and identity theft. You are also aware of any errors if any or wrong entries passed in the report. Even otherwise you need to be extra careful with regards to keeping a track on your credit reports especially during the holiday season when there are maximum chances of identity thefts, errors and frauds.

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Taxes and Credit Report

February 18, 2009 by  
Filed under Credit Report

If one notices that a tax lien has been imposed on the credit report generated by the bureaus, then it is imperative that one takes action on the same. This is not a very good sign and it would have a bearing on your credit score. If your credit score is not up to the mark, then it would pose future problems for you with respect to sanction of loan, mortgage etc.

So the 1st thing you need to set right is for any errors or ambiguity in your credit score. You need to get in touch with the credit bureau that has generated your credit report. One needs to begin the process by issuing a dispute letter to the bureau.

Even credit bureaus do commit mistakes with respect to the reports. So you do not have to get worried. Mistakes do happen, but it is your duty to notify the bureau so that the mistakes do not go unseen. Once the bureau is in receipt of your dispute letter, it would look into the matter to confirm if there are any mistakes from their side. The credit bureaus would contact the offices of the Federal Government or State Government to clarify matters relating to your debt. Once they are totally clear about the verification they would intimate you and you would have to shell out some money.

Once could always get in touch with your tax consultant who would help in negotiating the taxes for you. Either you could approach the government directly or through any of these consultants. The choice is yours. A tax negotiator would help in getting you the best possible rates.

The amounts overdue by you are normally collected by the Federal Government or State Government once every 10 years. One needs to ensure that there is no negative report in your credit report, since the account would be in the records of the State for the next 7 years. If your default payments, it would remain in the records, which is obviously not something which anyone would want. Once you have cleared your payment, you need to wait for 3 months, till you hear something from them and remind them again with another dispute letter requesting the bureau for validation. It has been observed that once the government has received your payment, they would not consider the bureaus validation request.

So just to be on the safer side, you need to send reports stating that you have cleared all the amounts pending, so that you are clear from your side.

Post payment: Individuals interested in settling payments partly can opt for an OIC. State Governments normally agree to such OICs. Before agreeing to the OIC, the Government would make its enquiries relating to your asset value, your previous credibility, creditworthiness, whether you would default any further payments. One could always forward a letter of hardship stating that you are going through a financial crisis. This letter might be considered by the Government.

Obviously, you would not want a negative mark on your report. So what are you waiting for? Try and pay all your outstanding and start afresh. A seven year period is too long. Do not wait. Go ahead and try and clear your amounts.

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How to Get Your Free Credit Report

February 17, 2009 by  
Filed under Credit Report, Credit score

The major credit bureaus like TransUnion,Equifax and Experian offer credit reports to individuals who are keen on getting loans for car, credit card or any type of consolidation loan. An individual has a clear picture of his credit report. The reports give a clear picture of the present and past amount outstanding, his previous payment itinerary. This could also include other options like foreclosure, insolvency if any etc.

The credit report normally give a FICO score. This FICO score is calculated on the basis of the past records of the individual. His ability to effect payments on time and whether he has cleared his previous debts on time etc. FICO score also is the deciding factor for future loans as well as the interest calculation.

Your future lenders would be in a better position to determine your fairness depending on the FICO score generated by the reports of the credit bureaus.

FICO score if found positive then there are fair chances of your loan sanction getting approved. If there is a negative score, then you can kiss goodbye to your chances of getting your loan sanctioned. Default payments effected by you would also negate your FICO score.

An individual is entitled to receive a free credit report copy from any of the 3 bureaus mentioned above. There are many websites which offer services, but everything comes for a price. There is only particular website which charges absolutely nothing for a credit report. Individuals can access that website and be rest assured that they would get their credit report free of charge. The basic credit report is absolutely free, without any price, but if you are interested in knowing your FICO score, then you definitely need to pay a few dollars. This FICO score report does not come free from any of the bureaus mentioned above.

Not only is an individual entitled for his free credit report annually, but he could also order a free copy in case he has not been granted his credit. The individual could either email or telephone the credit reporting agency to get an explanation regarding the reasons for the denial of his credit. Effectively, a free credit report would be available in your inbox with a period of 7 to 10 days maximum.

It is mandatory as well as advisable that an individual keeps a track of his credit reports. One needs to maintain a robust credit rating always so that he is saved from any corruption regarding his individuality. Individuals are advised that they audit their credit reports six monthly and in case they find any discrepancies regarding their payment schedule, status of accounts etc, they could report the matter to the credit bureau. The credit bureau would then go through their reports and find out for any errors, if any. One needs to ensure that their credit reports are free of ambiguities and error free. This would ensure a smoother loan sanction.

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Free Annual Credit Report

February 16, 2009 by  
Filed under Credit card, Credit Report

Anyone who wishes to apply for a credit card, mortgage loan, car loan or debt consolidation loan needs to be familiar with his/her credit report and the information contained inside. So, just what is included in a credit report? The answer is an entire listing of an individual’s payment history for the past 7 years, current debt load and any public record information, such as judgments, bankruptcy and/or foreclosures. These factors, along with a debt to income ratio, combine to create a FICO score. This is a number that potential lenders use to calculate the interest rate that will be paid during the life of the loan, which is usually determined by any determinable credit risk.

Most consumers are surprised to learn that they are permitted to request a free copy of their credit report, every 12 months, from each of the three major credit reporting agencies. These include Experian, TransUnion and Equifax. These are the three agencies that respond to credit report requests from banks and other potential lenders. They supply the credit report, which is used to determine whether or not a loan is approved, the amount of any loan granted and an interest rate. While the credit reporting agencies are not involved in the actual credit decision, they are the ones who provide the information that leads to that decision.

These days, many businesses promise to provide a free credit report, but there is almost always a subscription requirement or paid service that must be honored before the individual can receive their free credit report. One website, however, is much different. Once every 12 months, consumers may visit website and request instant online access to their free credit report from each of the three previously mentioned credit reporting agencies.

Upon viewing each credit report, which may be slightly different from each of the reporting agencies, individuals will be able to review every entry and confirm their accuracy. If anything is determined to be incorrect, including an account balance, status or payment history, the consumer has a right to dispute that information with the credit reporting agency directly. At the time that a dispute is lodged, the agency will launch an investigation to determine whether or not the entry needs correcting.

At any time during the year, if an applicant is denied credit, he/she has a right to receive a free copy of the credit report from the agency who supplied the information to the denying lender. The lender must supply the name, address and telephone number of the credit reporting agency that supplied the applicant’s credit report. Within 60 days of the notice of denial for credit, the applicant may request a free copy of his/her credit report. A final consideration recommended to all consumers is that, in order to prevent identity theft or any type of fraud, a credit report should be monitored every six months.

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Credit Report and Bankruptcy

February 15, 2009 by  
Filed under Bankruptcy, Credit Report

How to avoid bankruptcy with credit report

The trend nowadays is that one gets everything on credit. Banks also help the individuals to purchase goods and services on credit. We only have to pay through our credit card. Plastic money has become quite popular nowadays. Even though Banks offer credit, there is a limit on the credit limit. One has to ensure that he or she pays the minimum payment due before the stipulated period. One is advised to request the Bank to send one’s monthly credit card statement so as to enable you to have a correct position of your credit score.

This would give you a fair idea of your financial standing. Your credit score decides your eligibility for a credit finance loan from a Bank or a financial institution.

Even if you have a sanction for a loan, be it your home or car of any capital good item, then your credit score should be sound.

One needs to have a sound knowledge and awareness about one’s credit scores so that one is saved from the awkwardness and humiliation of getting rejected by a Bank or a financier. In case you do not have a reasonably good credit score, your application would get rejected outright.

This credit score is the deciding factor for most of the banks and financiers. This would decide your repute i.e. whether you would be able to discharge your minimum loan amount. Banks and financiers first ensure whether the person to whom they are lending the money is a genuine one or whether they would have to chase you for the minimum amount.

Banks and financial institutions carry out their share of groundwork checks to ensure that they have made the right decision by lending you the money. They also conduct background checks about your monetary situation before even considering you request for a loan.

A credit score rating of about 700 to 800 points is considered a reasonably fair one and something like 650 is an average one. Anything lesser than 650 is not a good credit score. You can be rest assured that with a credit score of 650, your application would stand rejected for any loan, credit card or sanction for a loan. It is mandatory that one checks for correctness and accuracy in one’s credit score. In case there is an error which needs to be rectified, please resolve it immediately before approaching the bank or your financier for a loan; since if your credit score reflects a not so good score, your application would get rejected for no fault of yours.

Internet offers the facility of getting you your correct and accurate credit score. There are various sites which cater to the above. Free copies available on the net would not reflect the accurate facts. Hence, one is advised that one shells out some money for getting an accurate and error free report about one’s credit score. This report ensures correctness with minimal ambiguity. This would also equip you with extra confidence in approaching your banker and there are sure chances of your success. With a brilliant credit score, you could buy the goods of your choice, with the loan given by your banker or your financier.

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Credit Reporting Help

February 14, 2009 by  
Filed under Credit Report

Credit score decides whether your offer for a loan would be accepted or rejected. There are few bureaus which cater to this. Some of the bureaus which specialize in this are Experian, Equifax and TransUnion. These bureaus draw out reports based on the credit score and submit it to the lenders. The lenders would then decide on further course of action. With a score of less than 650, your application would get rejected by the lender. Every credit score report also distinctly states the score reason, stating why your credit score has fallen so badly etc.

It is the responsibility of every individual to understand what is it that your credit report states and ensure the information available is up to date. There could be instances where your credit report does not reflect the payments effected by you. You need to set that right, by getting in touch with the right person. This is because if your credit score does not reflect the accurate data, then there are chances that your application for loan could be rejected outright, for no fault of yours.

There is always room for correcting your credit score. What you need to understand is that your credit score should be in tune with your income. Your credit score should not be less than your income. One needs to ensure that he clears the payments on time and before the due date. This would have a positive effect on your credit score, which would help you in the long run. Try and avoid partnership deals, where you would be signing as a co partner. The danger her is that in case your partner defaults payments, your credit score would be affected. The credit amount in your bank should be neither too low nor too high. If it is too high, then the lender would get an impression that you would lavishly splurge all the loan money. If it is too low, he would not get the confidence in you whether you would be able to disburse the loan amount.

Before sanctioning the loan, lenders normally check your financial records of the previous two years. One is advised to check one’s credit score and keep it on track. Ensure that your records are correct and free of ambiguity or errors. If there is an error, ensure its correctness before approaching the lender or a financier for a loan. Inaccuracy of your credit score results in your application getting rejected. There are still chances that your request for a loan is granted, but then you would have to shell quite an amount of money by way of interest charged by your lender, since he would have got the impression that you could default payments.

Companies like Equifax provide you with a credit report for a fee. Individuals should ensure that your report is updated and free of errors. These bureaus provide reports twice in a year. They would also warn you regarding the expiry of your credit limit. You could get these reports absolutely free as per the Federal law provisions.

One needs to ensure that the credit report is set right. Ensure that you approach the right bureau. There are cheats and frauds in this line of business who might promise to set straight your credit reports by now showing your late payments etc. try and avoid such bureaus. Such non professional bureaus are after your money. Try and beware of such manipulators.

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