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why do creditors pay credit bureaus for this information?

In order to make good credit decisions, creditors need to know as much as possible about a prospective borrower's ability and willingness to repay. It saves creditors both time and money to use the services of a credit bureau rather than collect information from each consumer's past creditors themselves. Consumers also are able to obtain...
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your credit history and credit bureaus

Credit bureaus gather and sell credit information about consumers and are a principal source of information about your credit history. Creditors usually rely on credit bureau reports before issuing a line of credit. So it makes sense to ask your local credit bureaus for your report. You can find them listed in the telephone Yellow Pages under...
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does a credit bureau have a file on you?

If you ever have applied for credit, you probably have a "credit file" somewhere. A credit bureau can use your application to set up a credit file with your name, address, phone, employer, income, etc. You establish a "credit record" or "credit history"; however, only by using credit. A "good" credit record is established only by repaying...
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know your credit score before making a major purchase

(ARA) - Whether you're in the market for a new home or applying for a loan, before you start looking at neighborhoods, you need to look somewhere else -- at your credit score. A credit score can give you the information you need to negotiate loan terms and bring you one step closer to your dream purchase. The next time you're contemplating a...
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using your credit responsibly means you'll always have credit to use

(ARA) - Living within your means. It sounds simple enough, and who could argue with the logic of not spending more than you earn? But the fact is that more and more Americans are using credit to live beyond their means. Consumer debt in the United States is at an all-time high. Average household debt (not including mortgages) has almost...
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what are the different credit scores?

In general, when people talk about "your score," they're talking about your current FICO score. However, there is no one score used to make decisions about you. This is true because: Credit bureau scores are not the only scores used. Many lenders use their own scores, which often will include the FICO score as well as other information...
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what is a credit bureau?

An agency which collects and sells information about the creditworthiness of individuals. A credit reporting agency does not make any decisions about whether a specific person should be extended credit or not. Credit bureaus are "clearinghouses" for information about consumers and how they handle their financial responsibilities. They are...
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details of your credit report

First, identifying information including:    - Name, current, and previous addresses    - Social Security number    - Telephone number    - Birth date    - Current and previous employers    - Spouse's name. Second, a...
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how is a consumer's application scored?

To illustrate how credit scoring works, consider the following example that uses only three factors to determine whether someone is creditworthy. (Most systems have 6 to 15 factors.) FACTORS POINTS AWARDED </td> MONTHLY INCOME: Less than $400 <td><p...
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the credit scoring system

Credit scoring is a system used by some creditors to determine whether to give you a loan or credit card. The creditor may examine your past credit history to evaluate how promptly you pay your bills and look at other factors as well, such as the amount of your income, whether you own a home, and how many years you have worked at your job. ...
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negative credit report information

Type of negative information Maximum time on credit report General civil judgments 7 years from the date filed Tax liens 7 years from the date paid (If tax lien is not paid, it will remain on the file indefinitely.) Chapter 13 bankruptcies that have been dismissed or discharged 7 years All other bankruptcies (such as Chapter...
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why do creditors pay credit bureaus for credit files?

In order to make good credit decisions, creditors need to know as much as possible about a prospective borrower's ability and willingness to repay. It saves creditors both time and money to use the services of a credit bureau rather than collect information from each consumer's past creditors themselves. Consumers also are able to obtain...
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plan & budget your vacations

Do some careful research before you take off on a holiday, business, or personal trip. Real travel bargains do exist. Contact an airline reservation agent or travel agent to determine the lowest possible fare. You can lower the cost of the airline ticket considerably by including a Saturday-night stayover. The best prices for international...
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top10 tips to prepare for retirement

Know your retirement needs. Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income. Lower earners will need 90% or more to maintain your standard of living when you stop working. Understand your financial future. Find out about your Social Security benefits. Social Security pays the average...
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federal credit laws

Truth in Lending Act Requires creditors to give you written disclosures of important terms of the credit agreement such as APR, finance charges, monthly payment amounts, payment due dates, total amount being financed, length of the credit agreement and the consequences of not making monthly payment. Federal Trade Commission's Credit...
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credit protection laws glossary

GLOSSARY Annual Percentage Rate (APR) -- The cost of credit expressed as a yearly rate. Appraisal Fee -- The charge for estimating the value of property offered as security. Automated Teller...
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how to manage your credit cards?

Many people find themselves with credit problems because they don't keep track of purchases they make with their credit cards. A simple method of keeping track of monthly credit card charges is to: Determine the total amount you can responsibly charge on all your credit card accounts during that month. Keep track of your credit...
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buying or leasing a car

If you're in the market for a new or used car this year, you can save money by doing your homework before buying or leasing. It will be helpful to consider the following before selecting and financing your next vehicle: Determine how much you can afford and how much you will pay for the car. Cash is the least expensive, but two of every...
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managing dual income households

Money is the number-1 problem couples fight about. It's often the spark that ignites bickering about ambitions, fears for the future and the inevitable power struggle. Communication is vital. Talking about how you plan to earn, spend and save money is easier when you agree on the priorities. Regardless of income levels, couples benefit from...
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cost of housing and remodeling

If you're finding the purchase of a new home an overwhelming prospect, you're not alone. For many people, an affordable alternative to buying a new home is to stay put and remodel their present house by adding more space or renovating. Home remodeling is a multi billion-dollar industry in the United States. While remodeling can be less...
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paying for your child's college education

This is probably the most intensive short-term cash drain on any family's finances. Unlike most other big- ticket items, such as homes or automobiles, that can be paid off in monthly installments, college tuition must be paid out over a relatively short period of time. With tuition at staggeringly high levels throughout the nation, a family's...
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credit fraud phone resources

Credit-Related Fraud - General American Financial Services Association Education Foundation - 1-888-400-2233 National Fraud Information Center - 1-800-876-7060 Credit Cards VISA USA -- Telemarketing Fraud Hotline - 1-800-235-5520 MasterCard International - 1-800-MCAssist or 1-800-MasterCard American Express - 1-800-THE CARD or...
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what happens if you are late with your credit loan payments?

what happens if you are late with your credit loan payments? Creditors understand that circumstances such as unemployment or illness can make it very difficult to meet bill payments. If this happens to you, contact your creditor, explain your situation and work out a repayment schedule. You also might be offered the option to "refinance" or...
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how much credit can you really afford?

Before making the decision to add more debt, you need to make sure that you: Allocate sufficient money for your essentials. Borrow only for items that you need and can afford. Borrow only if you're spending less each month than you take home. Start with your monthly take-home pay. This is the amount you have left after taxes...
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is a personal loan right for me?

When deciding whether to obtain a personal loan, consider the benefits and responsibilities. A personal loan: Obligates future income. You'll be required to set aside a certain amount of future income for loan payments. Requires discipline. Borrowing wisely means not borrowing more than you can handle. Don't let the thrill of buying...
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personal bankruptcy...what is it?

Bankruptcy is a legal procedure which can give people who cannot pay their bills a fresh start. A decision to file for bankruptcy is a serious step. You should make it only if it is the best way to deal with financial problems. There are two types of bankruptcy available to most individuals. Chapter 13 or "reorganization" allows debtors to...
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Federal Laws Protecting You and Your Credit Files

The Fair Credit Reporting Act (FCRA) is intended to ensure the accuracy and fairness of the credit reporting system—essentially the gathering of consumer information by credit bureaus and the sharing of that information with lenders, landlords, insurance companies and others. The law states who may access your credit report and the...
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what is a good risk score?

There is no one “good” or “bad” risk score because there are many different risk score models with many different ranges. Companies also consider risk scores differently depending on the amount of risk they will accept and their pricing options. Each model has its own unique range of scores. In some models, a higher...
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how do i get a better score?

Because it is not part of the credit report, a risk score cannot be disputed. Instead, you must address information from the credit report or other sources that affected the score. That information is identified by the risk factor statements, which are generated along with the score at the time it is calculated. The risk factor statements are...
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how do i see my risk scores?

Risk scores are available for a service fee from a number of sources. Experian offers risk score services that include a score, an explanation of what most affected it, education about how to improve the score — and therefore your creditworthiness — and a simulator that enables you to see how certain actions could influence the...
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