Credit Report

Scoring

When you fill out a credit card application, when you apply for a loan, car lease, mortgage or a department store credit card your potential lender will probably want to see a credit report. Based on your personal credit report, your potential creditor will come up with a credit score. The exact financial scoring models vary from creditor to creditor and are quite complex. Here we list some of the most important factors credit scoring models usually consider. If one of these factors changes your personal credit score can also change. The amount of change will depend on how the changed factor relates to other factors. The following factors are typically used to come up with your credit score:

Payment history: This is typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to a collection agency, or declared bankruptcy. Look for payment history on your credit reports and make sure all these items are reflected correctly on your credit report.

Outstanding debt: Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.

Length of your credit history: credit models look for patterns and in order to follow a pattern a person has to have a sufficiently long credit history. A short credit history can often be offset by other important factors, such as timely payments and low balances.

Number and type of your existing credit accounts: In general it is good to have established credit accounts but too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have.

Number of credit inquiries: Many scoring models consider whether you have applied for credit recently by looking at inquiries on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. For a creditor a borrower. Inquiries by creditors who are monitoring your account or looking at credit reports to make pre-approved credit card offers are not counted.

Other information about you: a credit model may take into account your job or occupation, length of employment, if you own any real estate, etc.

General guidelines to improve your credit score under most credit scoring models:

• concentrate on paying your bills on time,
• pay off your outstanding balances,
• do not take on new debt;
• Maintain only a reasonable amount of unused credit since having ready access to thousands of dollars of debt may lower your credit score.

It will probably take some time to improve your score significantly- remember, credit scoring models are looking for a pattern. You can also check your credit report and remove any errors. By making sure that only your accurate credit history appears on your report, you ensure that the credit score it generates is not being lowered by inaccurate information.

A consumer credit report is a document that contains a record of an individual's credit payment history. The fist time you open a credit account in your name you begin building your credit history. Most lenders report credit payment information to credit bureaus which is then reflected on your personal credit report. Potential lenders are permitted by law to review your credit report to determine whether to grant you credit.

There are three major credit bureaus in the US: Equifax, Experian, and Trans Union. They are in the business of gathering, maintaining, and selling information about consumers' credit histories. The larger lenders are likely to send credit reports about consumers to all three agencies but smaller businesses may only report to one of the agencies. You can order a report from each of the three credit bureaus and review your personal credit report.

     When you try a 30-day FREE trial of the credit check monitoring
service, you'll receive a FREE copy of your credit report from
Experian, the largest national credit bureau.

It's their gift to you just for trying the service!
When you become a member, you will receive these benefits:

Unlimited free credit reports anytime during membership,
with the option of secure online delivery
- Credit Report Key to help understand this crucial document
- Quarterly Notification Reports alerting any possibly negative
changes to your credit report, including new inquiries or
derogatory information, as well as indicators of possible fraud
- Dispute Information detailing how to dispute inaccurate
information on your credit report
- The quarterly credit check newsletter with helpful articles on
issues that affect credit-active consumers
- Toll-free access to their staff of experienced customer service
representatives

You can receive your reports online or by U.S. mail. When you have
your reports delivered securely over the Internet, they'll notify
you by email when your reports are ready as part of our
comprehensive security policy.

There is no obligation. No commitment. You can cancel anytime
and receive a prorated refund of the current year's membership
fee..

To sign up now and receive your FREE Experian credit report,
simply click here.

You may find that your credit report contains inaccuracies caused by human or computer error or by fraud. As soon as you become aware of any such error you should dispute it with the credit bureaus.

The contact information for the credit bureaus is included below:

Equifax:
P.O. Box 740241
Atlanta, GA 30374-0241
Toll-free: 1 (800) 378-2732

Experian:
P.O. Box 2104
Allen, TX 75013-0949
Toll-free: 1 (888) EXPERIAN

Trans Union:
Post Office Box 2000 Chester
PA 19022
Toll-free: 800-916-8800

Credit Repair

The very first time you open an account at a local store or apply for a credit card you begin building your personal credit history. Most credit card, auto loans and mortgage applications are approved or denied based on your credit history. Lenders use complicated mathematical models to determine whether to extend you credit on not. But there are some simple rules you can follow to make sure you build a strong credit history and maintain your credit cards in good standing:

1. Always send your minimum monthly payments shown on your credit card statement in on time. Allow sufficient time for postage and processing to make sure that your minimum payment is deposited to your account by the due date. This will save you late fees and help build a good personal credit history. Always use the payment coupon that arrived with your monthly statement. Write the credit card account number on your check so that the money gets credited to the correct account.

2. Keep track of what you spend and do not exceed your credit card limit. Here is how you can calculate your available credit and make sure you do not exceed your limit: From your credit limit subtract your current balance and any holds and pending authorizations. The remaining amount is how much credit you still have available. Holds and pending authorizations are future charges to your card that may be on hold when you make purchases or reserve a hotel room or rental car. A hold will lower your available credit. If you pay for a hotel or car rental in cash, remember to have the hold removed from your card.

3. Make sure that you do not spend more than what you can afford. Be aware of all fees that may be associated with your credit card. Know the annual fees, current interest rates, finance charges, cash advance fees, and any other fees associated with your card. Higher interest rates usually apply when you take out a cash advance. This would mean that you would be paying more interest than on a normal purchase. It is better to purchase with a credit card than to get a cash advance and then pay by cash.

If you manage your credit cards well you will build a good personal credit history.

You can read about the details of The Fair Credit Reporting Act at http://www.ftc.gov/os/statutes/fcra.htm to understand your rights as a consumer.

In addition, the following organizations may be able to help you with credit-related issues and problems:

Call For Action
Call For Action (CFA) is an international network of volunteers who work hotlines at radio and television stations to assist, educate and solve problems for consumers and small businesses. Phone: (301) 657-7490.

Debt Counselors of America
A nonprofit group that assists consumers across the country and around the world via the web. Special programs also are available to help consumers get out of debt. Web site: www.dca.org.

National Foundation for Consumer Credit
The National Foundation for Consumer Credit is a group of nonprofit credit counseling organizations that help consumers understand credit reports, contact creditors, manage debt and set up budgets. There are more than 1,100 member offices throughout the United States, Canada and Puerto Rico. Phone: (800) 388-2227, web site: www.nfcc.org

Privacy Rights Clearinghouse
The Privacy Rights Clearinghouse is a project of the Utility Consumers' Action Network, a San Diego-based nonprofit membership organization that advocates for consumers interests in the areas of telecommunications, energy, insurance and the Internet. Phone: (619) 298 3396