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Friday, June 24, 2011
Don't Give Up on Your Credit Score
Source : http://www.creditorweb.com/ permits to republish here.
Imagine that you’ve gotten far behind on your credit card payments.
The accounts have been closed, but you manage to pay off your balances before they get charged off as bad debt.
Since you’ve made good with your creditors, you’re shocked when your credit score doesn't rise as a result. What’s going on here? Is it really worth it to pay off your debts rather than waiting for them to fall off of your credit report in seven years?
It’s true that credit scores require patience.
It takes a while to move them in either direction, but they tend to sink faster than they rise.
That’s one unfortunate truth. Another is that, even though it might take months or years to get your credit score where you want it, it’s not a good idea to play the waiting game with delinquent accounts.
Pay them off as quick as you can.
Why shouldn’t you save your money and just wait things out?
There are several reasons.
First, if you intend to buy a house someday, you’ll want your credit report to reflect that you paid your debts in full. Unresolved debts will disqualify you from most mortgages.
Even if you paid the balances late, and even if the accounts were sent to a collection agency, it’s still better to pay up. Lenders will look at you more favorably if you do.
Also, consider the nuisance you might have to deal with if you decide to permanently default on your debts. You could be targeted by bill collectors, property liens, and even lawsuits.
Depending on the size of your debt, you could have your paychecks garnished. It’s much less stressful to just pay the money you owe and not have to deal with harassment and litigation.
Finally, if any of your accounts are still open while you’re paying them off, this repayment will be noted on your credit report.
Timely repayment history makes up slightly more than a third of your FICO score – the credit model used by most lenders. Start making monthly payments in full, as soon as possible.
Your credit score will reap the benefits.
It’s sad but true that some people let their debts go indefinitely.
They watch the negative items come off of their credit reports in seven years’ time.
Others who pay their debts in full have to wait the same amount of time for negative marks to come off.
When you get behind in your payments, you’re not adhering to the agreed-upon repayment schedule, and the creditor has the right to report this to the credit bureaus. If you can’t avoid delinquency, at least pay off your accounts when you’re able to rather than letting them sit. By showing that you’re interested in making good on your debts, you’ll qualify for more loans than people who never pay up.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
Imagine that you’ve gotten far behind on your credit card payments.
The accounts have been closed, but you manage to pay off your balances before they get charged off as bad debt.
Since you’ve made good with your creditors, you’re shocked when your credit score doesn't rise as a result. What’s going on here? Is it really worth it to pay off your debts rather than waiting for them to fall off of your credit report in seven years?
It’s true that credit scores require patience.
It takes a while to move them in either direction, but they tend to sink faster than they rise.
That’s one unfortunate truth. Another is that, even though it might take months or years to get your credit score where you want it, it’s not a good idea to play the waiting game with delinquent accounts.
Pay them off as quick as you can.
Why shouldn’t you save your money and just wait things out?
There are several reasons.
First, if you intend to buy a house someday, you’ll want your credit report to reflect that you paid your debts in full. Unresolved debts will disqualify you from most mortgages.
Even if you paid the balances late, and even if the accounts were sent to a collection agency, it’s still better to pay up. Lenders will look at you more favorably if you do.
Also, consider the nuisance you might have to deal with if you decide to permanently default on your debts. You could be targeted by bill collectors, property liens, and even lawsuits.
Depending on the size of your debt, you could have your paychecks garnished. It’s much less stressful to just pay the money you owe and not have to deal with harassment and litigation.
Finally, if any of your accounts are still open while you’re paying them off, this repayment will be noted on your credit report.
Timely repayment history makes up slightly more than a third of your FICO score – the credit model used by most lenders. Start making monthly payments in full, as soon as possible.
Your credit score will reap the benefits.
It’s sad but true that some people let their debts go indefinitely.
They watch the negative items come off of their credit reports in seven years’ time.
Others who pay their debts in full have to wait the same amount of time for negative marks to come off.
When you get behind in your payments, you’re not adhering to the agreed-upon repayment schedule, and the creditor has the right to report this to the credit bureaus. If you can’t avoid delinquency, at least pay off your accounts when you’re able to rather than letting them sit. By showing that you’re interested in making good on your debts, you’ll qualify for more loans than people who never pay up.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
Thursday, June 23, 2011
Businesses Can Check Your Credit Report Without Your Permission
Source : http://www.creditorweb.com/ permits to republish here.
For many of us, credit reports are mysterious, and sometimes scary, records of our financial history.
We know that we should check them often; invalid items show up sometimes which need to be disputed.
But did you know that businesses can pull your credit report without your permission?
It’s true. And when you consider the fact that pulling your report can potentially lower your credit score, it’s no wonder some card holders are unhappy.
Why does it affect your score when someone checks your credit? It doesn’t always.
Sometimes creditors can check your credit report with a “soft” inquiry, which doesn’t count against you.
This is the type of credit check that is performed when you check your own credit or get pre-screened by credit card companies.
“Hard” inquiries occur when you actively apply for a line of credit, such as a credit card or a loan. These inquiries can decrease your credit score.
Creditors don’t like to see a lot of hard inquiries in a short period of time.
When too many hard inquiries are present, the suggestion is that you’re applying for more credit than you can handle – a big no-no.
Problems start when businesses use hard inquiries without a person’s knowledge or consent.
It’s typical for employers to check your credit in this way, but even rental car agencies will pull your credit report if you reserve a car using a debit card rather than a credit card.
Renting a car is not a good reason for a decrease in your credit score.
Some customers have been able to dispute these hard inquiries in the same way that they dispute other items on their credit reports.
Others aren’t overly concerned. Hard inquiries lose their impact over a relatively short amount of time.
There are other circumstances where your credit report can be subject to hard inquiries without your consent.
These include credit transactions and collections; any business transaction that you initiate; underwriting insurance; reviewing any open account to ensure that your credit is still good enough to qualify for said account; and determining your eligibility for government benefits which are dependent upon your financial situation.
If you’re concerned about items that could be having a negative impact on your credit score, order a copy of your credit report. You’re eligible for one free copy per year.
Visit a site like AnnualCreditReport.Com to request your report from all three of the major credit bureaus – Experian, Equifax, and TransUnion.
Once you receive your report, dispute any items that you feel are undeserved.
You can do this by sending a certified letter to the creditor and the credit bureaus stating your claim that the items are invalid and should be removed. The FTC offers a sample letter template on their web site.
The creditor will have thirty days to respond.
If they fail to prove that the item is valid, it will be removed from your credit report.
You’re entitled to a copy of the corrected report.
Also, think about subscribing to a low-cost credit monitoring service to keep an eye on your credit score and the things that affect it.
It’s a sad truth that we don’t always have control over the things that impact our credit score. But by ordering your credit report and disputing any unwarranted negative items, you will have the satisfaction of righting the wrongs and saving your financial future.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
For many of us, credit reports are mysterious, and sometimes scary, records of our financial history.
We know that we should check them often; invalid items show up sometimes which need to be disputed.
But did you know that businesses can pull your credit report without your permission?
It’s true. And when you consider the fact that pulling your report can potentially lower your credit score, it’s no wonder some card holders are unhappy.
Why does it affect your score when someone checks your credit? It doesn’t always.
Sometimes creditors can check your credit report with a “soft” inquiry, which doesn’t count against you.
This is the type of credit check that is performed when you check your own credit or get pre-screened by credit card companies.
“Hard” inquiries occur when you actively apply for a line of credit, such as a credit card or a loan. These inquiries can decrease your credit score.
Creditors don’t like to see a lot of hard inquiries in a short period of time.
When too many hard inquiries are present, the suggestion is that you’re applying for more credit than you can handle – a big no-no.
Problems start when businesses use hard inquiries without a person’s knowledge or consent.
It’s typical for employers to check your credit in this way, but even rental car agencies will pull your credit report if you reserve a car using a debit card rather than a credit card.
Renting a car is not a good reason for a decrease in your credit score.
Some customers have been able to dispute these hard inquiries in the same way that they dispute other items on their credit reports.
Others aren’t overly concerned. Hard inquiries lose their impact over a relatively short amount of time.
There are other circumstances where your credit report can be subject to hard inquiries without your consent.
These include credit transactions and collections; any business transaction that you initiate; underwriting insurance; reviewing any open account to ensure that your credit is still good enough to qualify for said account; and determining your eligibility for government benefits which are dependent upon your financial situation.
If you’re concerned about items that could be having a negative impact on your credit score, order a copy of your credit report. You’re eligible for one free copy per year.
Visit a site like AnnualCreditReport.Com to request your report from all three of the major credit bureaus – Experian, Equifax, and TransUnion.
Once you receive your report, dispute any items that you feel are undeserved.
You can do this by sending a certified letter to the creditor and the credit bureaus stating your claim that the items are invalid and should be removed. The FTC offers a sample letter template on their web site.
The creditor will have thirty days to respond.
If they fail to prove that the item is valid, it will be removed from your credit report.
You’re entitled to a copy of the corrected report.
Also, think about subscribing to a low-cost credit monitoring service to keep an eye on your credit score and the things that affect it.
It’s a sad truth that we don’t always have control over the things that impact our credit score. But by ordering your credit report and disputing any unwarranted negative items, you will have the satisfaction of righting the wrongs and saving your financial future.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
Wednesday, June 22, 2011
Disputing Your Credit Score
Source : http://www.creditorweb.com/ permits to republish here.
If you get your free annual credit report and discover there are some inaccuracies, you will want to dispute the information and work to get it corrected on your credit report.
When you dispute the information, you are protected by the Fair Credit Reporting Act which requires that all credit reporting agencies (like Experian, TransUnion, etc) respond with an investigation of your creditors.
If the information disputed is found to be inaccurate- it will either be removed from your credit report or corrected within thirty days.
Also, if the creditor is unable to proof their information is correct, it will be considered inaccurate and will have to be changed.
What Might Need to be Disputed?
When you get your credit report, you will want to look out for the following common areas that mistakes are found:
Inaccurate details- you may find that creditors have reported late payments to your file that you don’t agree with. If you have back up information, like cancelled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.
Old, outdated information- on your credit report, negative account information can only be reported for seven years after the first delinquency; except Chapter 7 bankruptcy.
Fraudulent Accounts–definitely look out for accounts appearing on your credit report that you didn’t open. This could signify that you have been the victim of identity theft, or that account information from someone with a name similar to yours has been mixed up with your information.
How to File a Credit Dispute
You should file your dispute in writing. T
his includes mailing a letter to the credit reporting agency or using their online form for filing disputes.
The Fair Credit Report Act gives 30 days for the credit reporting agency to investigate the dispute claim and come to a conclusion on the situation.
You will then receive the written results and a free copy of your credit report if any changes have been made.
The best way to file a dispute is to make a photo copy of your credit report and enclose it with your letter. Circle the dispute on the credit report and number it.
In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.
For fast processing, be sure to include:
The other method of disputing information found on your credit report is to contact the creditor directly.
If you contact a creditor and indicate that they have reported information incorrectly to your credit report, the FCRA states that they cannot then report that item at all to the credit report without including a note that you are disputing the information.
Of course, if the information is found to be inaccurate or an error, it must be corrected on your report or removed.
What to Do if The Dispute Doesn’t Result in a Settlement
It's not always simple to get a settlement on your dispute. If following the dispute process leaves you with an unsatisfactory result, you can then file a dispute with the National Consumer Assistance Center.
Having the case re-investigated may or may not result in the deletion of an item off your credit report; but you can bet that you will need to have documentary evidence to get the credit bureaus to remove any information. Unfortunately, if you are successful in having items removed from your credit report, you may find them to reappear due to the instance of the creditor!
Another option is to contact your Attorney General's Office if you believe the credit bureau has violated the FCRA. You have the option to sue the credit bureau and/or creditor in either state or federal court if you feel they are in violation.
If you win, all of your attorney fees and damages would be reimbursed to you.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
If you get your free annual credit report and discover there are some inaccuracies, you will want to dispute the information and work to get it corrected on your credit report.
When you dispute the information, you are protected by the Fair Credit Reporting Act which requires that all credit reporting agencies (like Experian, TransUnion, etc) respond with an investigation of your creditors.
If the information disputed is found to be inaccurate- it will either be removed from your credit report or corrected within thirty days.
Also, if the creditor is unable to proof their information is correct, it will be considered inaccurate and will have to be changed.
What Might Need to be Disputed?
When you get your credit report, you will want to look out for the following common areas that mistakes are found:
Inaccurate details- you may find that creditors have reported late payments to your file that you don’t agree with. If you have back up information, like cancelled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.
Old, outdated information- on your credit report, negative account information can only be reported for seven years after the first delinquency; except Chapter 7 bankruptcy.
Fraudulent Accounts–definitely look out for accounts appearing on your credit report that you didn’t open. This could signify that you have been the victim of identity theft, or that account information from someone with a name similar to yours has been mixed up with your information.
How to File a Credit Dispute
You should file your dispute in writing. T
his includes mailing a letter to the credit reporting agency or using their online form for filing disputes.
The Fair Credit Report Act gives 30 days for the credit reporting agency to investigate the dispute claim and come to a conclusion on the situation.
You will then receive the written results and a free copy of your credit report if any changes have been made.
The best way to file a dispute is to make a photo copy of your credit report and enclose it with your letter. Circle the dispute on the credit report and number it.
In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.
For fast processing, be sure to include:
- Your full name and mailing address
- Your date of birth
- Social security number
- Name of creditor and the account number of the item you are disputing
- And of course, don’t forget to sign it!
The other method of disputing information found on your credit report is to contact the creditor directly.
If you contact a creditor and indicate that they have reported information incorrectly to your credit report, the FCRA states that they cannot then report that item at all to the credit report without including a note that you are disputing the information.
Of course, if the information is found to be inaccurate or an error, it must be corrected on your report or removed.
What to Do if The Dispute Doesn’t Result in a Settlement
It's not always simple to get a settlement on your dispute. If following the dispute process leaves you with an unsatisfactory result, you can then file a dispute with the National Consumer Assistance Center.
Having the case re-investigated may or may not result in the deletion of an item off your credit report; but you can bet that you will need to have documentary evidence to get the credit bureaus to remove any information. Unfortunately, if you are successful in having items removed from your credit report, you may find them to reappear due to the instance of the creditor!
Another option is to contact your Attorney General's Office if you believe the credit bureau has violated the FCRA. You have the option to sue the credit bureau and/or creditor in either state or federal court if you feel they are in violation.
If you win, all of your attorney fees and damages would be reimbursed to you.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
Tuesday, June 21, 2011
Top Four Credit History Blunders
Source : http://www.creditorweb.com/ permits to republish here
You can’t turn around without someone telling you this or that about the importance of your credit score. Unfortunately, they’re all correct. You credit score has the power to help you get a small loan for your business, or a mortgage for a house, but only if you’ve managed your finances in such a way that your credit score is favorable.
So you want to do everything in your power to keep your financial record clean.
Many different factors go into your credit score, but these are some of the biggest mistakes you won’t want to take to the bank.
Don’t max out your credit card.
Easier said than done, you might say, but it’s essential.
If you’re using the majority of your available limit on any given card, or on more than one card, it tells banks and lenders that you’re living off of your credit cards, and unlikely to be able to pay them back.
Ideally, you should never carry more than 30% of your available limit on any credit card.
Don’t make late payments.
Again, easier said than done, but promptness counts big on your credit score.
Not only can late payment allow your credit card company to jack up your APR and slap you with penalty fees, but it also puts your financial responsibility in question.
Future lenders don’t want to take a gamble on someone who has a history of missing payments.
Keep on top of your payments, and you will be establishing yourself as a financially responsible person who they will feel confident lending to when it matters.
Don’t give up on your credit score.
People sometimes think that once they’ve missed a payment on their credit card, their credit score is already toast, so they may as well just keep missing them, or worse, not pay them back at all.
They couldn’t be more wrong.
When it comes to late payments, the details matter.
People who will be evaluating your credit care how frequently your payments were late, and how long you let them go.
Missing a payment by two days once is different from missing it by two days every month, and missing your payment by a week is different from not paying it for two months.
And even if you have a blemish like this on your credit history, all hope isn’t lost.
If you can practice good money-management for an extended period of time after your payment hiccup, lenders will look more favorably on you.
They care the most about the last two years, so don’t mope around thinking that a missed payment from a decade ago is going to lose you your mortgage.
Don’t use a card that doesn’t report to the credit bureaus.
Many people don’t realize it, but not all lenders report to the institutions tallying up your credit score.
You might think this would be a good thing—after all, if they aren’t reporting, any bad behavior with this card won’t be factored into your credit score, right? Wrong.
Even though these cards won’t report any card practices that would work in your favor, any problems that go to collections will work against you.
This is the worst of both worlds. These credit cards can harm your credit score, but they will never improve it, not matter how responsibly you use it.
Whenever you sign up for a new credit card, read the fine print and find out whether or not your lender reports to the credit bureaus. If you aren’t sure, simply ask one of the lender’s employees.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online..
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
You can’t turn around without someone telling you this or that about the importance of your credit score. Unfortunately, they’re all correct. You credit score has the power to help you get a small loan for your business, or a mortgage for a house, but only if you’ve managed your finances in such a way that your credit score is favorable.
So you want to do everything in your power to keep your financial record clean.
Many different factors go into your credit score, but these are some of the biggest mistakes you won’t want to take to the bank.
Don’t max out your credit card.
Easier said than done, you might say, but it’s essential.
If you’re using the majority of your available limit on any given card, or on more than one card, it tells banks and lenders that you’re living off of your credit cards, and unlikely to be able to pay them back.
Ideally, you should never carry more than 30% of your available limit on any credit card.
Don’t make late payments.
Again, easier said than done, but promptness counts big on your credit score.
Not only can late payment allow your credit card company to jack up your APR and slap you with penalty fees, but it also puts your financial responsibility in question.
Future lenders don’t want to take a gamble on someone who has a history of missing payments.
Keep on top of your payments, and you will be establishing yourself as a financially responsible person who they will feel confident lending to when it matters.
Don’t give up on your credit score.
People sometimes think that once they’ve missed a payment on their credit card, their credit score is already toast, so they may as well just keep missing them, or worse, not pay them back at all.
They couldn’t be more wrong.
When it comes to late payments, the details matter.
People who will be evaluating your credit care how frequently your payments were late, and how long you let them go.
Missing a payment by two days once is different from missing it by two days every month, and missing your payment by a week is different from not paying it for two months.
And even if you have a blemish like this on your credit history, all hope isn’t lost.
If you can practice good money-management for an extended period of time after your payment hiccup, lenders will look more favorably on you.
They care the most about the last two years, so don’t mope around thinking that a missed payment from a decade ago is going to lose you your mortgage.
Don’t use a card that doesn’t report to the credit bureaus.
Many people don’t realize it, but not all lenders report to the institutions tallying up your credit score.
You might think this would be a good thing—after all, if they aren’t reporting, any bad behavior with this card won’t be factored into your credit score, right? Wrong.
Even though these cards won’t report any card practices that would work in your favor, any problems that go to collections will work against you.
This is the worst of both worlds. These credit cards can harm your credit score, but they will never improve it, not matter how responsibly you use it.
Whenever you sign up for a new credit card, read the fine print and find out whether or not your lender reports to the credit bureaus. If you aren’t sure, simply ask one of the lender’s employees.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online..
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
Monday, June 20, 2011
Credit Monitoring Services
Source : http://www.creditorweb.com/ permits to republish here.
Online credit monitoring services provide consumers with a suite of tools that help you to take proactive action in monitoring your credit report, while protecting your credit and identity information. Monitoring services notify you via email and/or wireless telephone instantly of any changes made to your credit report, which can help you identify fraudulent activity faster, and therefore minimize the negative impact it would have on your credit.
Notifications by Credit Monitoring Services
What types of activity will generate a notification or alert from the credit monitoring services? As a member of such a service, you’ll receive notification whenever your address has been changed, a new account has been opened, or when an existing account has been changed. This is extremely valuable information as you will know immediately if someone is attempting to use your good name to obtain financing. Time is of the essence when dealing with credit and identity fraud, and without credit monitoring services, it could be several months before you are aware of fraudulent activities.
Tips for Improving Credit
Most credit monitoring services also provide a host of tools that allow you to see what your credit score is at the current time, as well as steps you can take to improve it. Since credit scores are used to determine whether or not to extend individuals credit and at what interest rate; it’s important that your score be as high as possible.
Citi’s Credit Monitoring Service provides a very useful credit analyser function that allows members to determine the effects of several types of activities on their credit score. For example, if you’re considering applying for a car loan, you can use the analyser to determine how much of an impact applying will have on your score, as well as what would happen if you obtained the loan or applied and were denied the loan.
You can also use the analyser to view how missing a payment or two might effect your score overall, or determine which activities will raise your score the most and how long it will take. Extremely useful for individuals who are working diligently to improve their credit score, the Citi Credit Monitoring Service with credit analyser takes the guesswork out of improving your credit.
Identity Theft Insurance
Many credit monitoring services offer identity theft insurance programs that will reimburse members of the credit monitoring service up to a certain dollar amount if there are instances of fraud. (This service is not available to individuals living in the state of New York.) Typical expenses that are covered by identity theft insurance include:
Companies Offering Credit Monitoring Services
There are numerous companies that offer credit monitoring services. Most of the services offered are the same or similar, but a few companies having notable differences may make their services more beneficial to individuals.
If you’re looking to improve your credit, you want to be sure a credit monitoring service offers an analyser, like Citi Credit Monitoring Service, TrueCredit, or Identity Guard.
If you want to see results from all credit bureaus, then it’s important that you select a company that provides access to all of the major credit bureaus and not just one. Equifax offers a credit monitoring service, but only for your credit information with Equifax. Each of the credit bureaus may report slightly different information, so you may want to go with a service that can provide access to all 3 of the major credit reports.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
Online credit monitoring services provide consumers with a suite of tools that help you to take proactive action in monitoring your credit report, while protecting your credit and identity information. Monitoring services notify you via email and/or wireless telephone instantly of any changes made to your credit report, which can help you identify fraudulent activity faster, and therefore minimize the negative impact it would have on your credit.
Notifications by Credit Monitoring Services
What types of activity will generate a notification or alert from the credit monitoring services? As a member of such a service, you’ll receive notification whenever your address has been changed, a new account has been opened, or when an existing account has been changed. This is extremely valuable information as you will know immediately if someone is attempting to use your good name to obtain financing. Time is of the essence when dealing with credit and identity fraud, and without credit monitoring services, it could be several months before you are aware of fraudulent activities.
Tips for Improving Credit
Most credit monitoring services also provide a host of tools that allow you to see what your credit score is at the current time, as well as steps you can take to improve it. Since credit scores are used to determine whether or not to extend individuals credit and at what interest rate; it’s important that your score be as high as possible.
Citi’s Credit Monitoring Service provides a very useful credit analyser function that allows members to determine the effects of several types of activities on their credit score. For example, if you’re considering applying for a car loan, you can use the analyser to determine how much of an impact applying will have on your score, as well as what would happen if you obtained the loan or applied and were denied the loan.
You can also use the analyser to view how missing a payment or two might effect your score overall, or determine which activities will raise your score the most and how long it will take. Extremely useful for individuals who are working diligently to improve their credit score, the Citi Credit Monitoring Service with credit analyser takes the guesswork out of improving your credit.
Identity Theft Insurance
Many credit monitoring services offer identity theft insurance programs that will reimburse members of the credit monitoring service up to a certain dollar amount if there are instances of fraud. (This service is not available to individuals living in the state of New York.) Typical expenses that are covered by identity theft insurance include:
- Lost wages for several weeks of work missed if you take time off to deal with the fraud
- Repayment of notary or certified mail costs for the delivery of affidavits.
- Long distance phone costs in conjunction with the fraud
- Attorney fees incurred for dealing with the fraud
Companies Offering Credit Monitoring Services
There are numerous companies that offer credit monitoring services. Most of the services offered are the same or similar, but a few companies having notable differences may make their services more beneficial to individuals.
If you’re looking to improve your credit, you want to be sure a credit monitoring service offers an analyser, like Citi Credit Monitoring Service, TrueCredit, or Identity Guard.
If you want to see results from all credit bureaus, then it’s important that you select a company that provides access to all of the major credit bureaus and not just one. Equifax offers a credit monitoring service, but only for your credit information with Equifax. Each of the credit bureaus may report slightly different information, so you may want to go with a service that can provide access to all 3 of the major credit reports.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
Friday, June 17, 2011
How Payday Loans Really Work
Short on cash? Need money? With the high cost of living and the unpredictable circumstances we cannot escape everyday, payday loans are an amazing tool invented to get cash when you badly need it. But how do payday loans really work?
Payday loans give the borrower the amount of money he needs. The borrower writes a check of the amount needed with the payday loan company’s fixed interest fee, and the money he needs is given right then and there.
The interest fee of a payday loan is usually a percentage the amount borrowed. For every $50 or $100 loaned, there will be an interest fee of $15 to $30. So a personal check of $115 ($100 borrowed money and $15 fee) will be on hold for up to 14 days or until the next payday.
If you applied for a payday loan but were unable to repay the loan on the set schedule, you can ask for a roll-over or an extension on your loan. But there will be another fee for every extension.
You should know how much you owe the loan company. The Truth Lending Acting permits the cost of payday loans be disclosed. Have all the information such as financial change, annual percentage rate (APR), interest fee, and so on.
Like everything else acquired over credit, payday loans should be a last option.
Here are nine things to remember about payday loans:
1. Shop carefully – like comparing prices between two interesting items, the same goes in selecting a payday loan company. Choose the company with lower interest rates, APR’s, and friendlier payment terms.
2. Know the terms – Find out and analyze their terms before availing of a payday loan company’s services.
3. Compare APR and finance charge – Again the lower the rate, the easier for you to repay the amount borrowed.
4. Ask questions – Don’t be afraid to ask questions to your creditors – after all, they’re getting paid to be of service to you. Ask more time to pay your bills if you’re not able to on the planned date.
5. Realistic budget – Be sure that the amount of cash you loan is within your savings budget for you to repay them on time.
6. Build savings – Hold other expenses and save money left over from your income so as not to go on loan again. Save money to repay the loan you borrowed with the interest fee.
7. Overdraft protection – This is essential to your credit account for it protects you from further credit problems. Find out if the company has this on your checking account.
8. Nonprofit groups – Check out nonprofit groups in your community for credit guidance.
9. Other sources – Find out with your employer, credit unions, or housing authority for no- or a low-cost credit counseling program to get you out of debt and help you with financial woes.
Payday loans are amazingly convenient, but be cautious and responsible in using them. Remember to only borrow what you can afford to pay after a couple of weeks. If you can not repay, then talk to the business and they will be able to work out a payment plan for you.
If you like the information that was provided, please visit our sitepayday loans to get more information about how payday loans are structured.
Article SourcePayday loans give the borrower the amount of money he needs. The borrower writes a check of the amount needed with the payday loan company’s fixed interest fee, and the money he needs is given right then and there.
The interest fee of a payday loan is usually a percentage the amount borrowed. For every $50 or $100 loaned, there will be an interest fee of $15 to $30. So a personal check of $115 ($100 borrowed money and $15 fee) will be on hold for up to 14 days or until the next payday.
If you applied for a payday loan but were unable to repay the loan on the set schedule, you can ask for a roll-over or an extension on your loan. But there will be another fee for every extension.
You should know how much you owe the loan company. The Truth Lending Acting permits the cost of payday loans be disclosed. Have all the information such as financial change, annual percentage rate (APR), interest fee, and so on.
Like everything else acquired over credit, payday loans should be a last option.
Here are nine things to remember about payday loans:
1. Shop carefully – like comparing prices between two interesting items, the same goes in selecting a payday loan company. Choose the company with lower interest rates, APR’s, and friendlier payment terms.
2. Know the terms – Find out and analyze their terms before availing of a payday loan company’s services.
3. Compare APR and finance charge – Again the lower the rate, the easier for you to repay the amount borrowed.
4. Ask questions – Don’t be afraid to ask questions to your creditors – after all, they’re getting paid to be of service to you. Ask more time to pay your bills if you’re not able to on the planned date.
5. Realistic budget – Be sure that the amount of cash you loan is within your savings budget for you to repay them on time.
6. Build savings – Hold other expenses and save money left over from your income so as not to go on loan again. Save money to repay the loan you borrowed with the interest fee.
7. Overdraft protection – This is essential to your credit account for it protects you from further credit problems. Find out if the company has this on your checking account.
8. Nonprofit groups – Check out nonprofit groups in your community for credit guidance.
9. Other sources – Find out with your employer, credit unions, or housing authority for no- or a low-cost credit counseling program to get you out of debt and help you with financial woes.
Payday loans are amazingly convenient, but be cautious and responsible in using them. Remember to only borrow what you can afford to pay after a couple of weeks. If you can not repay, then talk to the business and they will be able to work out a payment plan for you.
If you like the information that was provided, please visit our site
This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Based on a work at www.all-insight.com.
Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )
How to Obtain a Free Credit Report and Check it for Errors
Source : http://www.creditorweb.com/ permits to republish here.
As a resident of the United States, the three main credit reporting companies in the country are required under law to provide one free credit report (each) to anyone who requests them within any given year. The three large credit reporting companies are Equifax, Experian and TransUnion, and they are strictly monitored by Fair Credit Reporting Act (FCRA) to provide correct and true information.
Information from a person’s credit report provides companies, such as credit card companies, mortgage loaners, insurance companies, and potential employers, information on where a person currently lives, where a person has lived in the past several years, the person’s financial history – including any bankruptcies – and whether or not a person has been involved in any legal proceedings in the past.
Companies use this information to figure out what sort of risk a person is in terms of whether or not money should be lent or credit should be extended/offered to them. Because there is so much vital information included on a credit report, and it contains a good representation about a person’s ability to be responsible and trustworthy, it’s important for a person to monitor what is on his or her credit report, and ensure that everything on the report is correct and current.
The three main credit reporting companies in the United States all keep track of basically the same information. However, sometimes one credit agency will pick up and report slightly different information from the others. This is why it’s important to check the data on all three credit reports from all three companies on a yearly basis.
All of the reporting agencies have websites and toll-free telephone numbers which can be used to order free credit reports. If it seems time consuming to contact all three credit reporting agencies, there is a website (www.annualcreditreport.com) which will provide free credit reports from all three credit reporting companies with one single order. This prevents the need for contacting each reporting company individually.
The Federal Trade Commission (FTC) warns against seeing commercials on television that advertise free credit reports and acting upon them. The same sorts of advertisements are also located in numerous places on the internet, and they should be used only with extreme caution. Any website offering free copies of credit reports, besides www.annualcreditreport.com are usually out to make money. While they may offer free credit reports, they may try to charge users a fee for some sort of other credit reporting service.
In order to obtain free credit reports either from one individual or all three different credit reporting agencies, personal information is needed. Some of the data that must be available are a social security number, current and previous addresses, and other information that should (hopefully) only be known by the person whose name is on the report(s).
In today’s age of obtaining information instantly via the internet, receiving copies of credit reports is no exception. If correct information is submitted to www.annualcreditreport.com, the information on all three credit reports will almost instantly appear and be printable within seconds. On the other hand, if the credit reports are ordered via telephone, they may take a couple of weeks to arrive in the mail.
Once the credit reports are received, they should be thoroughly evaluated for any mistakes and inaccurate information. Any errors should be brought to the attention of the credit reporting company immediately. Under law, the credit reporting company must correct any and all mistakes, if there is proof that the mistakes and mis-information are legitimately incorrect. The agencies will work to determine if the errors are in need of correction and will usually make the changes on a credit report within a month.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
As a resident of the United States, the three main credit reporting companies in the country are required under law to provide one free credit report (each) to anyone who requests them within any given year. The three large credit reporting companies are Equifax, Experian and TransUnion, and they are strictly monitored by Fair Credit Reporting Act (FCRA) to provide correct and true information.
Information from a person’s credit report provides companies, such as credit card companies, mortgage loaners, insurance companies, and potential employers, information on where a person currently lives, where a person has lived in the past several years, the person’s financial history – including any bankruptcies – and whether or not a person has been involved in any legal proceedings in the past.
Companies use this information to figure out what sort of risk a person is in terms of whether or not money should be lent or credit should be extended/offered to them. Because there is so much vital information included on a credit report, and it contains a good representation about a person’s ability to be responsible and trustworthy, it’s important for a person to monitor what is on his or her credit report, and ensure that everything on the report is correct and current.
The three main credit reporting companies in the United States all keep track of basically the same information. However, sometimes one credit agency will pick up and report slightly different information from the others. This is why it’s important to check the data on all three credit reports from all three companies on a yearly basis.
All of the reporting agencies have websites and toll-free telephone numbers which can be used to order free credit reports. If it seems time consuming to contact all three credit reporting agencies, there is a website (www.annualcreditreport.com) which will provide free credit reports from all three credit reporting companies with one single order. This prevents the need for contacting each reporting company individually.
The Federal Trade Commission (FTC) warns against seeing commercials on television that advertise free credit reports and acting upon them. The same sorts of advertisements are also located in numerous places on the internet, and they should be used only with extreme caution. Any website offering free copies of credit reports, besides www.annualcreditreport.com are usually out to make money. While they may offer free credit reports, they may try to charge users a fee for some sort of other credit reporting service.
In order to obtain free credit reports either from one individual or all three different credit reporting agencies, personal information is needed. Some of the data that must be available are a social security number, current and previous addresses, and other information that should (hopefully) only be known by the person whose name is on the report(s).
In today’s age of obtaining information instantly via the internet, receiving copies of credit reports is no exception. If correct information is submitted to www.annualcreditreport.com, the information on all three credit reports will almost instantly appear and be printable within seconds. On the other hand, if the credit reports are ordered via telephone, they may take a couple of weeks to arrive in the mail.
Once the credit reports are received, they should be thoroughly evaluated for any mistakes and inaccurate information. Any errors should be brought to the attention of the credit reporting company immediately. Under law, the credit reporting company must correct any and all mistakes, if there is proof that the mistakes and mis-information are legitimately incorrect. The agencies will work to determine if the errors are in need of correction and will usually make the changes on a credit report within a month.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
Thursday, June 16, 2011
Rebuilding Your Credit History
Source : http://www.creditorweb.com/ permits to republish here.
Your credit history is very important for you because when it comes
to big loans your credit report will determine if you can get the loan
and what rates you’ll have to pay. The credit report will matter a lot
when you apply for a mortgage loan, for a car loan or for getting
insurance on your house, your car or your life. If your credit report
does not look so good it is possible that you’ll not get the loan or
insurance or if you get it the interest will be higher than normal
because you represent a risk for the loaner. On the other hand, if your
credit report has a good score it will be much easier for you to obtain
the necessary loan or insurance and the interest rates will be much
smaller. In case you think that you fit into the first category, people
with a bad credit report, rebuilding your credit history should be a
top priority for you. I said a top priority because rebuilding your
credit history is a difficult and long process that will take you
several years but at the end you’ll be satisfied because then you’ll be
able to get any credit you need.
Having a poor credit history will bring you only disadvantages: will
be harder for you to get a loan or if you manage to qualify for a loan
the interest rates will most probably be much higher. Apart from this
loan connected disadvantages you’ll also face other problems like: you
might be turned down for a job or, worse, you’ll not be able to rent an
apartment. If you have faced this type of problems you already know how
important is to start rebuilding your credit history as early as
possible.
As we already mentioned, repairing or rebuilding your credit history
is a scary but necessary task for people with bad credit reports. For
starting you need to know how your credit report looks like and what
lenders will see when they ask for your credit report. You can get your
report for free from http://www.annualcreditreport.com/
. This is a true free credit report site set up by the US Government to
provide consumers access to their credit information once per year,
free of charge. Study it and look at it from the perspective of a
lender. This way will sooner realize what your mistakes are and try to
repair them and make sure you don’t repeat them. The next step would be
to make a list of all your income sources, fixed expenses like mortgage
or rent or car payments, and variable expenses like clothing or holiday
expenses. Writing them down will help you a lot because you’ll see your
spending patterns and all your sources of income all together. This
will help you better understand and see what changes should be done in
order to save some money.
The next step on the way to rebuilding your credit history is
applying for a credit card. If you can not get approved for a
standard credit card, apply for a secured credit cards. Although
standard credit cards are best for rebuilding your credit score,
secured credit cards are much easier to obtain and can be a beneficial
first step. To be able to get a secured credit card you need to have
and deposit some funds with the credit card issuer. Your secured credit
card limit is usually equal to the amount you deposited. This is very
helpful because you are able to know from before how much you’ll spend
and you are not allowed spending more then the credit limit. A secured
card can be used the same way as an unsecured card and making your
payments in time will be of big help for improving your credit report.
Apart from a secured credit card you can apply for a store or gasoline
card which is much easier to obtain, have a smaller credit limit and
will help you improve your credit report. For the same purpose you can
also establish an account at a credit union and later apply for a
secured loan. The interest fee for this type of loan is small, but if
you make your payments in time the positive information will be added
to your credit report.
If you want to succeed in rebuilding your credit history the most
important thing to do is paying your current bills on time and in full.
This will put positive information onto your credit report. For
maintaining your credit history in good order, get copies of it
annually from more than one source (in case creditors do not report to
all credit report agencies) and review it. If you discover any mistakes
or errors correct them at once by contacting in writing the credit
reporting agency and the creditor.
These are only few ideas on what to do for rebuilding your credit
history. If your not confident you can manage all by yourself ask for
the help of an expert. They main key to succeed in keeping your credit
history clean is paying on time and in full all your bills.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
Your credit history is very important for you because when it comes
to big loans your credit report will determine if you can get the loan
and what rates you’ll have to pay. The credit report will matter a lot
when you apply for a mortgage loan, for a car loan or for getting
insurance on your house, your car or your life. If your credit report
does not look so good it is possible that you’ll not get the loan or
insurance or if you get it the interest will be higher than normal
because you represent a risk for the loaner. On the other hand, if your
credit report has a good score it will be much easier for you to obtain
the necessary loan or insurance and the interest rates will be much
smaller. In case you think that you fit into the first category, people
with a bad credit report, rebuilding your credit history should be a
top priority for you. I said a top priority because rebuilding your
credit history is a difficult and long process that will take you
several years but at the end you’ll be satisfied because then you’ll be
able to get any credit you need.
Having a poor credit history will bring you only disadvantages: will
be harder for you to get a loan or if you manage to qualify for a loan
the interest rates will most probably be much higher. Apart from this
loan connected disadvantages you’ll also face other problems like: you
might be turned down for a job or, worse, you’ll not be able to rent an
apartment. If you have faced this type of problems you already know how
important is to start rebuilding your credit history as early as
possible.
As we already mentioned, repairing or rebuilding your credit history
is a scary but necessary task for people with bad credit reports. For
starting you need to know how your credit report looks like and what
lenders will see when they ask for your credit report. You can get your
report for free from http://www.annualcreditreport.com/
. This is a true free credit report site set up by the US Government to
provide consumers access to their credit information once per year,
free of charge. Study it and look at it from the perspective of a
lender. This way will sooner realize what your mistakes are and try to
repair them and make sure you don’t repeat them. The next step would be
to make a list of all your income sources, fixed expenses like mortgage
or rent or car payments, and variable expenses like clothing or holiday
expenses. Writing them down will help you a lot because you’ll see your
spending patterns and all your sources of income all together. This
will help you better understand and see what changes should be done in
order to save some money.
The next step on the way to rebuilding your credit history is
applying for a credit card. If you can not get approved for a
standard credit card, apply for a secured credit cards. Although
standard credit cards are best for rebuilding your credit score,
secured credit cards are much easier to obtain and can be a beneficial
first step. To be able to get a secured credit card you need to have
and deposit some funds with the credit card issuer. Your secured credit
card limit is usually equal to the amount you deposited. This is very
helpful because you are able to know from before how much you’ll spend
and you are not allowed spending more then the credit limit. A secured
card can be used the same way as an unsecured card and making your
payments in time will be of big help for improving your credit report.
Apart from a secured credit card you can apply for a store or gasoline
card which is much easier to obtain, have a smaller credit limit and
will help you improve your credit report. For the same purpose you can
also establish an account at a credit union and later apply for a
secured loan. The interest fee for this type of loan is small, but if
you make your payments in time the positive information will be added
to your credit report.
If you want to succeed in rebuilding your credit history the most
important thing to do is paying your current bills on time and in full.
This will put positive information onto your credit report. For
maintaining your credit history in good order, get copies of it
annually from more than one source (in case creditors do not report to
all credit report agencies) and review it. If you discover any mistakes
or errors correct them at once by contacting in writing the credit
reporting agency and the creditor.
These are only few ideas on what to do for rebuilding your credit
history. If your not confident you can manage all by yourself ask for
the help of an expert. They main key to succeed in keeping your credit
history clean is paying on time and in full all your bills.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.
Click ref : Credit Score --- Credit Repair --- Payday Loan/Mortgage/Grants
Credit Score - Wikipedia
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Souce : Wikipedia permits to republish here at based on restrictions Creative Commons Attribution-ShareAlike License and http://creativecommons.org/licenses/by-sa/3.0/ Contents in wikipedia is frequently revised and I endeaver to put in the latest version here.
But I suggest you visit them frequently just in case.
Souce : Wikipedia permits to republish here at based on restrictions Creative Commons Attribution-ShareAlike License and http://creativecommons.org/licenses/by-sa/3.0/ Contents in wikipedia is frequently revised and I endeaver to put in the latest version here.
But I suggest you visit them frequently just in case.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
 | It has been suggested that Credit score (United States) be merged into this article or section. (Discuss) Proposed since March 2010. |
 | This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (February 2011) |
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Credit scoring also has a lot of overlap with data mining, which uses many similar techniques.
FICO is a publicly-traded corporation (under the ticker symbol FICO) that created the best-known and most widely used credit score model in the United States.
Contents[hide] |
Score interpretation
The first step to interpreting a score is to identify the source of the credit score and its use. There are numerous scores based on various scoring models sold to lenders and other users. The most common was created by Fair Isaac Co. and is called the FICO score. FICO produces scoring models that are most commonly used, and which are installed at and distributed by the three largest national credit repositories in the U.S (TransUnion, Equifax and Experian) and the two national credit repositories in Canada (TransUnion Canada and Equifax Canada). FICO controls the vast majority of the credit score market in the United States and Canada although there are several other competing players that collectively share a very small percentage of the market.In the United States, FICO risk scores range from 300-850, with 723 being the median FICO score of Americans in 2010. The performance definition of the FICO risk score (its stated design objective) is to predict the likelihood that a consumer will go 90 days past due or worse in the subsequent 24 months after the score has been calculated. The higher the consumer's score, the less likely he or she will go 90 days past due in the subsequent 24 months after the score has been calculated. Because different lending uses (mortgage, automobile, credit card) have different parameters, FICO algorithms are adjusted according to the predictability of that use. For this reason, a person might have a higher credit score for a revolving credit card debt when compared to a mortgage credit score taken at the same point in time.
The interpretation of a credit score will vary by lender, industry, and the economy as a whole. While 620 has historically been a divider between "prime" and "subprime", all considerations about score revolve around the strength of the economy in general and investors' appetites for risk in providing the funding for borrowers in particular when the score is evaluated. In 2010, the Federal Housing Administration (FHA) tightened its guidelines regarding credit scores to a small degree, but lenders who have to service and sell the securities packaged for sale into the secondary market largely raised their minimum score to 640 in the absence of strong compensating factors in the borrower's loan profile. In another housing example, Fannie Mae and Freddie Mac began charging extra for loans over 75% of the value that have scores below 740. Furthermore, private mortgage insurance companies will not even provide mortgage insurance for borrowers with scores below 660. Therefore, "prime" is a product of the lender's appetite for the risk profile of the borrower at the time that the borrower is asking for the loan.
Australia
In Australia, credit scoring is widely accepted as the primary method of assessing credit worthiness. Credit scoring is not only used to determine whether credit should be approved to an applicant, but credit scoring is also used in the setting of credit limits on credit cards/store cards, in behavioral modelling such as collections scoring, and also in the pre-approval of additional credit to a company's existing client base.Although logistic (or non-linear) probability modelling is still the most popular means by which to develop scorecards, various other methods offer extremely powerful alternatives, including MARS, CART, CHAID, and random forests.
At present Veda Advantage, the main provider of credit file data, only provides a negative credit reporting system which contains information on applications for credit and adverse listings indicating a default under a credit contract. This makes accurate credit scoring difficult for banks if they have no existing relationship with a prospective borrower.[1]
Austria
In Austria credit scoring is done as a blacklist. Consumers which did not pay bills end up on the blacklists that are held by different credit bureaus.[2] Having an entry on the black list may result in the denial of contracts. Just specific branches like telecom carriers use the list on a regular basis. Banks do not use these lists, but rather inquire about securities and income of the consumer when giving out loans.According to the Austrian Data Protection Act, consumers must opt-in for the use of there private data for any purpose. Consumers can also retrieve the permission to use the data later, which makes any further distribution or use of the collected data illegal.[3] Consumers also have the right to get a free copy of all data held by the credit bureaus once a year. [4] Wrong or unlawfully collected data must be deleted or corrected. [5]
Canada
The system of credit reports and scores in Canada is very similar to that in the United States, with two of the same reporting agencies active in the country: Equifax and TransUnion (Experian, which had entered the Canadian market with the purchase of Northern Credit Bureaus in 2008, announced the closing[6][7] of its Canadian operations as of April 18, 2009).There are, however, some key differences. One such difference is that, unlike the United States, where a consumer is allowed only one free copy of their credit report a year, in Canada, the consumer may order a free copy of their credit report any number of times in a year, as long as the request is made in writing, and as long as the consumer asks for a printed copy to be delivered by mail.[8][9] This request by the consumer is noted in the credit report, but it has no effect on their credit score. According to Equifax's ScorePower Report, FICO scores range between 300 and 900.
The Government of Canada offers a free publication called Understanding Your Credit Report and Credit Score.[10] This publication provides sample credit report and credit score documents, with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication is available online at the Financial Consumer Agency of Canada. Paper copies can also be ordered at no charge for residents of Canada.
India
The Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000 by the Government of India and the Reserve Bank of India to provide credit information about commercial and consumer borrowers to a limited group of members, including banks, financial institutions, non banking financial companies, housing finance companies and credit card companies.Norway
In Norway, credit scoring services are provided by three credit scoring agencies: Dun & Bradstreet, Experian and Lindorff Decision. Credit scoring is based on publicly available information such as demographic data, tax returns, taxable income and any Betalingsanmerkning (non-payment records) that might be registered on the credit scored individual. Upon being scored, an individual will get a notice (written or in the form of an e-mail) from the scoring agency stating who performed the credit score as well as any information provided in the score. In addition, many credit institutions use custom made scorecards based on any number of parameters.South Africa
Credit scoring is used throughout the credit industry in South Africa, with the likes of banks, micro-lenders, clothing retailers, furniture retailers, specialised lenders and insurers all using credit scores. Currently two of the three main retail credit bureaux offer credit bureau scores. TransUnion (formerly ITC) offer the Empirica Score which is, as of mid 2010, in its 4th generation. The Empirica score is segmented into two suites: the account origination (AO) and account management (AM). Experian South Africa likewise have a Delphi credit score with their fourth generation about to be released (late 2010).Sweden
Sweden also has a system for credit score. This system aims to find people with bad payment attitude. It has only two levels, good and bad. Anyone who does not pay a requested debt payment on time, and also not after a reminder, will have their case forwarded to the Swedish Enforcement Administration (Swedish: Kronofogdemyndigheten), a national authority which collects debts. The very appearance of a company as a debtor in this authority, will render a mark among private credit bureaus - however, this does not apply to a private person. This mark is called Betalningsanmärkning (non-payment record) and can according to the law be stored for three years for a private person and five years for a company. This kind of non-payment record will make it very difficult to get a loan, a rental apartment, a telephone subscription or a job with cash handling. The banks of course use income and asset figures in connection with loan assessments.If one gets an injunction to pay by the Enforcement Administration, it is possible to object to it. Then the one requesting the payment must show the correctness in district court. Failure to object is seen as admitting the debt. If the debtor loses the court trial, costs for the trial are added to the debt. Taxes and authority fees must always be paid on request unless payment has already been made.
Every person with a Swedish national identification number must register a valid address, even if living abroad, since sent letters are considered to have arrived. For example, the Swedish astronaut Christer Fuglesang has a Betalningsanmärkning since he forgot to pay the Stockholm congestion tax, and had an old invalid address registered, since he lives in the USA. Letters with payment requests did not reach him on time.
United Kingdom
See also: Credit scorecards
The most popular statistical technique used is logistic regression to predict a binary outcome, such as bad debt or no bad debt. Some banks also build regression models that predict the amount of bad debt a customer may incur. Typically, this is much harder to predict, and most banks focus only on the binary outcome.Credit scoring is only closely regulated by the Financial Services Authority when used for the purposes of the Advanced approach to Capital Adequacy under Basel II regulations.
It is very difficult for a consumer to know in advance whether they have a high enough credit score to be accepted for credit with a particular lender. This is due to the complexity and structure of credit scoring, which differs from one lender to another.
Also, lenders do not have to reveal their credit score head, nor do they have to reveal the minimum credit score required for the applicant to be accepted. Simply due to this lack of information to the consumer, it is impossible for him or her to know in advance if they will pass a lender's credit scoring requirements.
If the applicant is declined for credit, the lender is also not obliged to reveal the exact reason why. However Industry Associations, such as the Finance and Leasing Association, oblige their members to provide a high level reason. Credit bureau data sharing agreements also require that an applicant declined due to credit bureau data is told that this is the reason and the address of the credit bureau must be provided.
United States
Main article: Credit score (United States)
In the United States, a credit score is a number based on a statistical analysis of a person's credit files, that in theory represents the creditworthiness of that person, which is the likelihood that people will pay their bills. A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax. Income is not considered by the major credit bureaus when calculating a credit score.There are different methods of calculating credit scores. FICO, the most widely known type of credit score, is a credit score developed by FICO, previously known as Fair Isaac Corporation. It is used by many mortgage lenders that use a risk-based system to determine the possibility that the borrower may default on financial obligations to the mortgage lender. All credit scores have to be subject to availability. The credit bureaus all have their own credit scores: Equifax's ScorePower, Experian's PLUS score, and TransUnion's credit score, and each also sells the VantageScore credit score. In addition, many large lenders, including the major credit card issuers, have developed their own proprietary scoring models.
Studies have shown scores to be predictive of risk in the underwriting of both credit and insurance.[11][12][13] Some studies even suggest that most consumers are the beneficiaries of lower credit costs and insurance premiums due to the use of credit scores.[12][14]
Recently, many jobs are using pre-employment credit checks and the trend has appear to have grown since 2000 within the United States (Bird, M., 2010). According to a survey in 2010, many individuals felt that employers should have the right and duty to check credit reports for all jobs, while another 28 percent felt that it depended on the potential employee's job responsibilities such as banking or accounting jobs.
Americans are entitled to one free credit report within a 12-month period from each of the three credit bureaus, but are not entitled to receive a free credit score. The three credit bureaus run Annualcreditreport.com, where users can get their free credit reports. Credit scores are available as an add-on feature of the report for a fee. If the consumer disputes an item on a credit report obtained using the free system, under the Fair Credit Reporting Act (FCRA), the credit bureaus have 45 days to investigate, rather than 30 days for reports obtained otherwise.[15]
Alternatively, consumers wishing to obtain their credit scores can in some cases purchase them separately from the credit bureaus or can purchase their FICO score directly from Fair Isaac.[16] Credit scores (including FICO scores) are also made available for "free" through subscription to one of the many credit report monitoring services available from the credit bureaus or other third parties, although to actually get the scores for free from most such services, one must use their credit card to sign up for a free trial subscription of the service and then cancel before the first monthly charge. Until March 2009, holders of credit cards issued by Washington Mutual were offered a free FICO score each month through the bank's Web site. (Chase, which took over Washington Mutual in 2008, discontinued this practice in March, 2009.)[17]Chase resumed the practice of offering a free FICO score in March, 2010 of select card members to the exclusion of the majority of former WAMU card holders.
Under the Fair Credit Reporting Act, a consumer is entitled to a free credit report (but not a free credit score) within 60 days of any adverse action (e.g. being denied credit, or receiving substandard credit terms from a lender) taken as a result of their credit rating. Under the Wall Street reform bill passed on July 22, 2010, a consumer is entitled to receive a free credit score if they are denied a loan or insurance due to their credit rating.[18]
The FICO credit score ranges between 300 and 850. The VantageScore score ranges from 501-990.[19]
See also
References
- ^ Credit Scoring in Australia
- ^ http://www.ksv.at/KSV/1870/de/4privatpersonen/4fragenantworten/index.html
- ^ § 8 Abs 1 Z2 DSG
- ^ § 26 DSG
- ^ §§ 27 and 28 DSG
- ^ "Experian Canada home page". http://www.experian.ca/. Retrieved 2011-02-01.
- ^ Drake, Tom. "Experian Closes Their Canadian Consumer Credit Bureau". Canadian Finance Blog. http://canadianfinanceblog.com/2009/04/28/experian-closes-their-canadian-consumer-credit-bureau.htm. Retrieved 2011-02-01.
- ^ Equifax form (Canada)
- ^ TransUnion form (Canada)
- ^ Understanding Your Credit Report and Credit Score (Canada)
- ^ Report to the Congress on credit scoring and its effects on the availability and affordability of credit
- ^ a b Credit-based insurance scores: Impacts on consumers of automobile insurance
- ^ No evidence of disparate impact in Texas due to use of credit information by personal lines insurers
- ^ An overview of consumer data and credit reporting
- ^ Equifax Credit Report Dispute FAQs retrieved on 2008-12-18
- ^ FICO scores retrieved on 2008-12-18
- ^ Chase drops WaMu secured card, FICO score retrieved on 2009-01-17
- ^ President Obama on Final Passage of Wall Street Reform: An End to Bailouts, a Beginning for Accountability published July 15, 2010, retrieved on July 26, 2010.
- ^ The VantageScore Model retrieved on 2008-12-16
External links
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