<![CDATA[Credit Report Information]]> en-us Wed, 22 Feb 2012 18:29:21 -0500 Wed, 22 Feb 2012 18:29:21 -0500 <![CDATA[Credit Report Information]]> <![CDATA[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 credit more quickly and easily when creditors have access to the information collected by credit bureaus. Today there are over 2,000 credit bureaus located throughout the United States. The majority are small, local companies servicing towns with populations of 20,000 or less. There are, however, several large regional bureaus and some credit bureaus operate nationwide. The five largest credit bureaus account for over 150 million individual credit records and operations are computerized to update information constantly and to prepare reports within seconds.

Source: shareist.com → | ∞ Permalink

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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 credit more quickly and easily when creditors have access to the information collected by credit bureaus. Today there are over 2,000 credit bureaus located throughout the United States. The majority are small, local companies servicing towns with populations of 20,000 or less. There are, however, several large regional bureaus and some credit bureaus operate nationwide. The five largest credit bureaus account for over 150 million individual credit records and operations are computerized to update information constantly and to prepare reports within seconds.

Source: shareist.com → | ∞ Permalink

]]> <![CDATA[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 "Credit Bureaus" or "Credit Reporting Agencies." The bureaus will report whatever they have on file, which might include what kinds of credit accounts you have, how punctually you pay your bills, and whether you have ever filed for bankruptcy or were sued. The report may include other credit references that you can use in new credit applications to give a more complete picture of your financial situation. See our Brochure on Fair Credit Reporting.

Some credit references may not appear in your file simply because the creditor may not report the information to the credit bureaus. Credit bureaus obtain most of their information from those creditors who send them monthly reports. Some creditors only report delinquent accounts; accounts with good payment histories may go unreported. Most major national credit card companies report their accounts to credit bureaus, but many local creditors do not.

Source: shareist.com → | ∞ Permalink

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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 "Credit Bureaus" or "Credit Reporting Agencies." The bureaus will report whatever they have on file, which might include what kinds of credit accounts you have, how punctually you pay your bills, and whether you have ever filed for bankruptcy or were sued. The report may include other credit references that you can use in new credit applications to give a more complete picture of your financial situation. See our Brochure on Fair Credit Reporting.

Some credit references may not appear in your file simply because the creditor may not report the information to the credit bureaus. Credit bureaus obtain most of their information from those creditors who send them monthly reports. Some creditors only report delinquent accounts; accounts with good payment histories may go unreported. Most major national credit card companies report their accounts to credit bureaus, but many local creditors do not.

Source: shareist.com → | ∞ Permalink

]]> <![CDATA[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 debts as agreed. To find out if a credit file exists on you, look in the phone book under "Credit Reporting Agencies" for the names of credit bureaus in your area. If you have applied for credit or used credit in the past, one or more of the credit bureaus listed should have information on you. Call the credit bureaus listed and ask if they have information on you. Be sure to give them any names you use or have used in the past (birth-given names, combined surname, etc.). If a credit bureau has no information on you, it can start a file by obtaining personal and employment data from you over the phone or in writing.

Source: shareist.com → | ∞ Permalink

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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 debts as agreed. To find out if a credit file exists on you, look in the phone book under "Credit Reporting Agencies" for the names of credit bureaus in your area. If you have applied for credit or used credit in the past, one or more of the credit bureaus listed should have information on you. Call the credit bureaus listed and ask if they have information on you. Be sure to give them any names you use or have used in the past (birth-given names, combined surname, etc.). If a credit bureau has no information on you, it can start a file by obtaining personal and employment data from you over the phone or in writing.

Source: shareist.com → | ∞ Permalink

]]> <![CDATA[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 key purchase, start with your credit score -- it's what lenders use to determine your credit worthiness.

Learn What Can Make or Break Your Credit
Here are a few tips to help ensure that your credit score gives you the credit you deserve:

  • Payment History -- Your payment history is a significant factor in determining your credit score. A history of late payments on current and past accounts is likely to have a negative impact on your score.
  • Amounts Owed -- What you owe counts significantly in the calculation of your credit score. Maintaining large balances on your credit cards may be a signal to lenders that you have accrued more debt than you can handle.
  • Length of Credit History -- A portion of your score is based on how long you've had established credit. In general, a longer credit history can help earn you a better standing with creditor grantors and lenders.
  • New Credit Requests -- Consider ways to manage new credit wisely. Applying for many different types of credit in a short period of time can take a toll on your score.
  • Credit Diversity -- Mix it up. Having a combination of account types including installment, revolving and mortgage is a good way to help diversify your credit.



Know Where You Stand
Knowing your credit history early can help you prepare for negotiations with lenders. For this reason, it's a good idea to review your credit report regularly and monitor your credit score for any changes that may affect loan terms.
Score monitoring services such as Score Watch can put valuable information in the hands of consumers preparing for a major purchase. Available at Equifax.com, Score Watch continuously monitors your FICO score and Equifax Credit Report and notifies you when a score change impacts the interest rate you are likely to receive on a mortgage, auto or home equity loan.

For more information about how to manage and protect your credit health, visit www.equifax.com.

Courtesy of ARA Content

Source: shareist.com → | ∞ Permalink

]]>

(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 key purchase, start with your credit score -- it's what lenders use to determine your credit worthiness.

Learn What Can Make or Break Your Credit
Here are a few tips to help ensure that your credit score gives you the credit you deserve:

  • Payment History -- Your payment history is a significant factor in determining your credit score. A history of late payments on current and past accounts is likely to have a negative impact on your score.
  • Amounts Owed -- What you owe counts significantly in the calculation of your credit score. Maintaining large balances on your credit cards may be a signal to lenders that you have accrued more debt than you can handle.
  • Length of Credit History -- A portion of your score is based on how long you've had established credit. In general, a longer credit history can help earn you a better standing with creditor grantors and lenders.
  • New Credit Requests -- Consider ways to manage new credit wisely. Applying for many different types of credit in a short period of time can take a toll on your score.
  • Credit Diversity -- Mix it up. Having a combination of account types including installment, revolving and mortgage is a good way to help diversify your credit.



Know Where You Stand
Knowing your credit history early can help you prepare for negotiations with lenders. For this reason, it's a good idea to review your credit report regularly and monitor your credit score for any changes that may affect loan terms.
Score monitoring services such as Score Watch can put valuable information in the hands of consumers preparing for a major purchase. Available at Equifax.com, Score Watch continuously monitors your FICO score and Equifax Credit Report and notifies you when a score change impacts the interest rate you are likely to receive on a mortgage, auto or home equity loan.

For more information about how to manage and protect your credit health, visit www.equifax.com.

Courtesy of ARA Content

Source: shareist.com → | ∞ Permalink

]]> <![CDATA[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 doubled over the past decade and now stands at almost $15,000, according to Consumers for Responsible Credit Solutions. The average credit card balance per household is approaching $10,000, and the average family pays more than $1,000 per year in credit card interest payments.

Obviously, spending more than $1,000 a year on interest payments alone doesn't make any sense. But logic doesn't have anything to do with racking up credit card debt emotions do. “Credit cards make it easy to satisfy any consumer urge immediately,” says Maxine Sweet vice president of public education for Experian, a global information solutions company.

There are times when you may need to use your credit for unexpected expenses such as car repair or an emergency trip to visit a sick relative. Routine use of credit should be for the benefits and convenience it offers not to supplement your income. “Used wisely, credit provides powerful financial benefits,” says Sweet. “But used recklessly, it can affect your emotional health and financial future.”

The keys to managing your spending and credit habits are simple self knowledge and self control. Here are some suggestions to get you thinking about how to use credit more wisely and responsibly.

  • Learn to budget It's hard to live within your means if you don't know what your means are, says Sweet. You have certain fixed income and expenses every month. After accounting for those items, set aside some money for savings, which will be needed for big purchases (such as a down payment on a house), emergencies (such as unexpected medical bills), and retirement, of course. Anything left after that is your disposable income. You must plan your lifestyle so that you spend no more than that amount every month.
  • Figure out where your money goes if you are spending more than you earn every month, take some time to sit down with your check book and your credit card statements to figure out why. Do you own three dozen pairs of shoes? Is your garage full of tools you never use? Do you eat out for lunch every day or consider a Grande Latte a “must have?” Small expenses can add up fast. By understanding both your major expanses and your daily behavior, you'll be more likely to make changes that keep you from overspending.
  • Check your credit report you can quickly and easily access your credit report at www.experian.com. Seeing your payment history and total debt may shock you into curtailing excess spending. Make sure all the information on your credit report is accurate. If you notice anything questionable, such as accounts you don't recognize, or payment disputes, resolve those issues by contacting your creditors and the credit reporting companies.
  • Pay your bills on time missing a payment or mailing it in late can result in extra fees or finance charges, and will adversely affect your credit score. Always make at least the minimum payment due, and make an effort to pay as much as possible. Don't apply for a new credit card or use an existing credit card in order to pay off the balance on an old one. This is a dangerous cycle to get into.
  • Don't try to keep up with the Joneses you've probably heard the phrase he who dies with the most toys wins. It's O.K. to have a little fun, but don't fall prey to the message that you are what you own. Don't put yourself in debt to pay for nonessential items such as electronic gadgets you will only use once or 500 cable television channels. It is also healthy for your children to understand they can't have everything they want and that they can't always match their friends. We all need to prioritize and make choices.
  • Think of the future if you owe $10,000 to your credit card company, that debt will cost you a whopping $28,079 if you pay it off by making only the minimum payment every month, based on 18 percent interest. Think of this as stealing from yourself, and keep those figures in mind next time you're tempted to charge something you don't really need.
  • Need vs. want when you're in a store with your credit card in hand to make a purchase, ask yourself if what you're buying is a need or a want. What's the difference? Food and shelter are needs. The latest electronic gadget is a want. You need a car to get to work, but you want the biggest, baddest SUV with the fancy wheels. Learning to differentiate between the two can help you control your spending.

Living within your means and using credit wisely can be a challenge at first and takes discipline for the long term. But both your bank balance and your stress level will be better off. And you just might learn something about yourself in the process.

For more information on how to better manage your credit and to access your credit report and credit score, visit www.experian.com.

Courtesy of ARA Content

Source: shareist.com → | ∞ Permalink

]]>

(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 doubled over the past decade and now stands at almost $15,000, according to Consumers for Responsible Credit Solutions. The average credit card balance per household is approaching $10,000, and the average family pays more than $1,000 per year in credit card interest payments.

Obviously, spending more than $1,000 a year on interest payments alone doesn't make any sense. But logic doesn't have anything to do with racking up credit card debt emotions do. “Credit cards make it easy to satisfy any consumer urge immediately,” says Maxine Sweet vice president of public education for Experian, a global information solutions company.

There are times when you may need to use your credit for unexpected expenses such as car repair or an emergency trip to visit a sick relative. Routine use of credit should be for the benefits and convenience it offers not to supplement your income. “Used wisely, credit provides powerful financial benefits,” says Sweet. “But used recklessly, it can affect your emotional health and financial future.”

The keys to managing your spending and credit habits are simple self knowledge and self control. Here are some suggestions to get you thinking about how to use credit more wisely and responsibly.

  • Learn to budget It's hard to live within your means if you don't know what your means are, says Sweet. You have certain fixed income and expenses every month. After accounting for those items, set aside some money for savings, which will be needed for big purchases (such as a down payment on a house), emergencies (such as unexpected medical bills), and retirement, of course. Anything left after that is your disposable income. You must plan your lifestyle so that you spend no more than that amount every month.
  • Figure out where your money goes if you are spending more than you earn every month, take some time to sit down with your check book and your credit card statements to figure out why. Do you own three dozen pairs of shoes? Is your garage full of tools you never use? Do you eat out for lunch every day or consider a Grande Latte a “must have?” Small expenses can add up fast. By understanding both your major expanses and your daily behavior, you'll be more likely to make changes that keep you from overspending.
  • Check your credit report you can quickly and easily access your credit report at www.experian.com. Seeing your payment history and total debt may shock you into curtailing excess spending. Make sure all the information on your credit report is accurate. If you notice anything questionable, such as accounts you don't recognize, or payment disputes, resolve those issues by contacting your creditors and the credit reporting companies.
  • Pay your bills on time missing a payment or mailing it in late can result in extra fees or finance charges, and will adversely affect your credit score. Always make at least the minimum payment due, and make an effort to pay as much as possible. Don't apply for a new credit card or use an existing credit card in order to pay off the balance on an old one. This is a dangerous cycle to get into.
  • Don't try to keep up with the Joneses you've probably heard the phrase he who dies with the most toys wins. It's O.K. to have a little fun, but don't fall prey to the message that you are what you own. Don't put yourself in debt to pay for nonessential items such as electronic gadgets you will only use once or 500 cable television channels. It is also healthy for your children to understand they can't have everything they want and that they can't always match their friends. We all need to prioritize and make choices.
  • Think of the future if you owe $10,000 to your credit card company, that debt will cost you a whopping $28,079 if you pay it off by making only the minimum payment every month, based on 18 percent interest. Think of this as stealing from yourself, and keep those figures in mind next time you're tempted to charge something you don't really need.
  • Need vs. want when you're in a store with your credit card in hand to make a purchase, ask yourself if what you're buying is a need or a want. What's the difference? Food and shelter are needs. The latest electronic gadget is a want. You need a car to get to work, but you want the biggest, baddest SUV with the fancy wheels. Learning to differentiate between the two can help you control your spending.

Living within your means and using credit wisely can be a challenge at first and takes discipline for the long term. But both your bank balance and your stress level will be better off. And you just might learn something about yourself in the process.

For more information on how to better manage your credit and to access your credit report and credit score, visit www.experian.com.

Courtesy of ARA Content

Source: shareist.com → | ∞ Permalink

]]> <![CDATA[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 about you.


  • FICO scores are not the only credit bureau scores.
    • There are other credit bureau scores, although FICO scores are by far the most commonly used. Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.

  • Your score may be different at each of the three main credit reporting agencies.
    • The FICO score from each credit reporting agency considers only the data in your credit report at that agency. If your current scores from the three credit reporting agencies are different, it's probably because the information those agencies have on you differs.


  • Your FICO score changes over time.
    • As your data changes at the credit reporting agency, so will any new score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today.

    Source: shareist.com → | ∞ Permalink

    ]]>

    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 about you.


  • FICO scores are not the only credit bureau scores.
    • There are other credit bureau scores, although FICO scores are by far the most commonly used. Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.

  • Your score may be different at each of the three main credit reporting agencies.
    • The FICO score from each credit reporting agency considers only the data in your credit report at that agency. If your current scores from the three credit reporting agencies are different, it's probably because the information those agencies have on you differs.


  • Your FICO score changes over time.
    • As your data changes at the credit reporting agency, so will any new score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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 private firms which collect from creditors information on their experiences with individual borrowers (Are bills paid on time?) as well as other personal and financial information (employer, income, savings, debts owed).

    Credit bureaus establish and maintain "credit files" on consumers who apply for or use individual or joint credit. For a fee, credit bureaus will provide "credit reports" to individuals or businesses that need such information, for example, to make decisions to grant or deny credit, employment, or insurance. Consumers can obtain a free credit report if they have been denied credit due to the report and can obtain a free credit report upon request annually.

    However, it does collect information that it considers relevant to a person's credit habits and history, and uses this information to assign a credit score to indicate how creditworthy a person is.

    When a prospective creditor approaches a credit reporting agency to inquire about a particular person, they are sold a credit report which contains all the information relevant to the person and the credit score calculated by the agency (some creditors might have an ongoing subscription to credit bureau). The prospective creditor then uses that information to decide whether to extend the applicant the desired credit or not. Same as credit bureau. also called consumer reporting agency.

    Source: shareist.com → | ∞ Permalink

    ]]>

    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 private firms which collect from creditors information on their experiences with individual borrowers (Are bills paid on time?) as well as other personal and financial information (employer, income, savings, debts owed).

    Credit bureaus establish and maintain "credit files" on consumers who apply for or use individual or joint credit. For a fee, credit bureaus will provide "credit reports" to individuals or businesses that need such information, for example, to make decisions to grant or deny credit, employment, or insurance. Consumers can obtain a free credit report if they have been denied credit due to the report and can obtain a free credit report upon request annually.

    However, it does collect information that it considers relevant to a person's credit habits and history, and uses this information to assign a credit score to indicate how creditworthy a person is.

    When a prospective creditor approaches a credit reporting agency to inquire about a particular person, they are sold a credit report which contains all the information relevant to the person and the credit score calculated by the agency (some creditors might have an ongoing subscription to credit bureau). The prospective creditor then uses that information to decide whether to extend the applicant the desired credit or not. Same as credit bureau. also called consumer reporting agency.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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 credit report contains your credit history. That is, your account record with different creditors. It will show how much credit has been extended and how you have repaid it.

    • Third, a credit report contains inquiries or a list that identifies creditors and other authorized parties who have requested and received your credit report.

    • Fourth, a credit report contains public record information. These are items that are matters of public record such as collection accounts, bankruptcies, foreclosures, tax liens, civil judgments, and late child support payments
    Source: shareist.com → | ∞ Permalink

    ]]>
    • 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 credit report contains your credit history. That is, your account record with different creditors. It will show how much credit has been extended and how you have repaid it.

    • Third, a credit report contains inquiries or a list that identifies creditors and other authorized parties who have requested and received your credit report.

    • Fourth, a credit report contains public record information. These are items that are matters of public record such as collection accounts, bankruptcies, foreclosures, tax liens, civil judgments, and late child support payments
    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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.) 

    tdp align="center"font face="Arial" size="3"0/font/td


    tdfont face="Arial" size="3"$651 to $800/font/td
tdp align="center"font face="Arial" size="3"7/font/td


    tdp align="center"font face="Arial" size="3"5/font/td


    tdfont face="Arial" size="3"48-61/font/td
tdp align="center"font face="Arial" size="3"12/font/td

    FACTORS POINTS AWARDED

    /td

    MONTHLY INCOME:
    Less than $400
    $400 to $650

    3
    $801 to $1,200

    12
    $1,200 +

    15
    AGE
    21-28

    11
    28-35
    36-48

    2
    61 +

    15
    TELEPHONE
    In Home
    Yes

    12
    No

    0


    Some credit scoring systems award fewer points to people in their thirties and forties, because these individuals often have a relatively high amount of debt at that stage of their lives. The law permits creditors using properly-designed scoring systems to award points based on age, but people who are 62 or older must receive the maximum number of points for this factor.

    If, for example, you needed a score of 25 to get credit, you would need to make sure you had enough income at a certain age (and, perhaps a telephone) to qualify for credit.

    Remember, this example shows very generally how a credit scoring system works. Most credit scoring systems consider more factors than this example ¾ sometimes as many as 15 or 20. Usually these factors are obviously related to your credit worthiness. Sometimes, however, additional factors are included that may seem unusual. For example, some systems score the age of your car. While this may seem unrelated to creditworthiness, it is legal to use factors like these as long as they do not illegally discriminate on race, sex, martial status, national origin, religion, or age.

    Source: shareist.com → | ∞ Permalink

    ]]>

    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.) 

    tdp align="center"font face="Arial" size="3"0/font/td


    tdfont face="Arial" size="3"$651 to $800/font/td
tdp align="center"font face="Arial" size="3"7/font/td


    tdp align="center"font face="Arial" size="3"5/font/td


    tdfont face="Arial" size="3"48-61/font/td
tdp align="center"font face="Arial" size="3"12/font/td

    FACTORS POINTS AWARDED

    /td

    MONTHLY INCOME:
    Less than $400
    $400 to $650

    3
    $801 to $1,200

    12
    $1,200 +

    15
    AGE
    21-28

    11
    28-35
    36-48

    2
    61 +

    15
    TELEPHONE
    In Home
    Yes

    12
    No

    0


    Some credit scoring systems award fewer points to people in their thirties and forties, because these individuals often have a relatively high amount of debt at that stage of their lives. The law permits creditors using properly-designed scoring systems to award points based on age, but people who are 62 or older must receive the maximum number of points for this factor.

    If, for example, you needed a score of 25 to get credit, you would need to make sure you had enough income at a certain age (and, perhaps a telephone) to qualify for credit.

    Remember, this example shows very generally how a credit scoring system works. Most credit scoring systems consider more factors than this example ¾ sometimes as many as 15 or 20. Usually these factors are obviously related to your credit worthiness. Sometimes, however, additional factors are included that may seem unusual. For example, some systems score the age of your car. While this may seem unrelated to creditworthiness, it is legal to use factors like these as long as they do not illegally discriminate on race, sex, martial status, national origin, religion, or age.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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. A credit scoring system awards points for each factor that the creditor considers important. Creditors generally offer credit to those consumers awarded the most points because those points help predict who is most likely to pay back the debt.

    Most lenders determine 35% of the score from payment histories on your credit accounts, with recent history weighing more heavily than the distant past. 30% is based on the amount of debt you have outstanding with all creditors. 15% depends on how long you've been a credit user. A longer history is better if you've always made timely payments. 10% is your very recent history and whether you've been seeking (and getting) loans or credit lines. And 10% is calculated from a mix of credit you hold, including installment loans (like car loans), leases, mortgage, and credit cards.

    To help lenders make decisions, credit bureaus often provide a risk score. Credit bureau scores are often called "FICO scores" because most credit bureau scores used in the US are produced from software developed by Fair, Isaac and Company (FICO). FICO scores are provided to lenders by the three major credit reporting agencies: Equifax, Experian, and Trans Union.

    Source: shareist.com → | ∞ Permalink

    ]]>

    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. A credit scoring system awards points for each factor that the creditor considers important. Creditors generally offer credit to those consumers awarded the most points because those points help predict who is most likely to pay back the debt.

    Most lenders determine 35% of the score from payment histories on your credit accounts, with recent history weighing more heavily than the distant past. 30% is based on the amount of debt you have outstanding with all creditors. 15% depends on how long you've been a credit user. A longer history is better if you've always made timely payments. 10% is your very recent history and whether you've been seeking (and getting) loans or credit lines. And 10% is calculated from a mix of credit you hold, including installment loans (like car loans), leases, mortgage, and credit cards.

    To help lenders make decisions, credit bureaus often provide a risk score. Credit bureau scores are often called "FICO scores" because most credit bureau scores used in the US are produced from software developed by Fair, Isaac and Company (FICO). FICO scores are provided to lenders by the three major credit reporting agencies: Equifax, Experian, and Trans Union.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[negative credit report information]]>
    Type of negative informationMaximum time on credit report
    General civil judgments7 years from the date filed
    Tax liens7 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 discharged7 years
    All other bankruptcies (such as Chapter 7)10 years



    In Chapter 13 bankruptcy, the debtor keeps all of his or her property and makes regular payments on the debts, even after filing for bankruptcy. To qualify for Chapter 13, the debtor needs to have a regular income.

    In Chapter 7 bankruptcy, the debtor gives up all nonexempt property. The debtor keeps exempt property. Exempt property is property that state law determines is needed for the support of the debtor and his or her dependents.

    It's important to understand that bankruptcy has a negative impact on your credit. Depending on the type of bankruptcy, it will stay on your credit report from 7 to 10 years. Having a bankruptcy on your credit report will make it hard to get credit in the future.

    Source: shareist.com → | ∞ Permalink

    ]]>
    Type of negative informationMaximum time on credit report
    General civil judgments7 years from the date filed
    Tax liens7 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 discharged7 years
    All other bankruptcies (such as Chapter 7)10 years



    In Chapter 13 bankruptcy, the debtor keeps all of his or her property and makes regular payments on the debts, even after filing for bankruptcy. To qualify for Chapter 13, the debtor needs to have a regular income.

    In Chapter 7 bankruptcy, the debtor gives up all nonexempt property. The debtor keeps exempt property. Exempt property is property that state law determines is needed for the support of the debtor and his or her dependents.

    It's important to understand that bankruptcy has a negative impact on your credit. Depending on the type of bankruptcy, it will stay on your credit report from 7 to 10 years. Having a bankruptcy on your credit report will make it hard to get credit in the future.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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 credit more quickly and easily when creditors have access to the information collected by credit bureaus.

    Today there are over 2,000 credit bureaus located throughout the United States. The majority are small, local companies servicing towns with populations of 20,000 or less. There are, however, several large regional bureaus and some credit bureaus operate nationwide. The five largest credit bureaus account for over 150 million individual credit records and operations are computerized to update information constantly and to prepare reports within seconds.

    Source: shareist.com → | ∞ Permalink

    ]]>

    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 credit more quickly and easily when creditors have access to the information collected by credit bureaus.

    Today there are over 2,000 credit bureaus located throughout the United States. The majority are small, local companies servicing towns with populations of 20,000 or less. There are, however, several large regional bureaus and some credit bureaus operate nationwide. The five largest credit bureaus account for over 150 million individual credit records and operations are computerized to update information constantly and to prepare reports within seconds.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[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 airfare are usually offered during January. Check with your travel agent about the many package deals available.

    Driving your automobile affords the most flexibility in planning a vacation. If you decide to drive, check the condition of the tires, belts, battery, and spark plugs. Maintenance is always less expensive than emergency road service.

    Keep these points in mind regardless of the mode of transportation:

    • Plan and pack carefully. It's wise to make a list of travel wants and needs. Remember, it is very expensive to buy your necessities at vacation stores.
    • Adjust your travel schedule to take advantage of discount travel packages.
    • Understand any restrictions placed on your purchased airplane or train ticket. Be sure to find out if you're entitled to a full or partial refund in the event your travel plans change.
    • Be sure you can afford to pay for your vacation out of future income before you borrow to go on vacation.
    • Remember, the cheapest seat on a train or airplane will get you there at the same time as the most expensive seat.
    • Occupy your children on long trips with games and books that are not disruptive to the driver or other passengers on a plane or train.


              TR

            TD COLSPAN="2" ALIGN="CENTER" WIDTH="341"

            H3Vacation Budget/H3/TD

          /TR

          TR

            TD WIDTH="212"BTRANSPORTATION/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Car/Rental/Maintenance/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Airplane/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Train/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Taxis/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Gasoline/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Tolls/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BLODGING/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BFOOD/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Breakfast/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Lunch Dinner/Snacks/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Tips/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BENTERTAINMENT/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BTELEPHONE/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BLAUNDRY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BSOUVENIRS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BPHOTOGRAPHY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BEMERGENCY MONEY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BMISCELLANEOUS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Children's spending money/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Adult's allowance/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BTOTALS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

        /TABLE

    ]]>

    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 airfare are usually offered during January. Check with your travel agent about the many package deals available.

    Driving your automobile affords the most flexibility in planning a vacation. If you decide to drive, check the condition of the tires, belts, battery, and spark plugs. Maintenance is always less expensive than emergency road service.

    Keep these points in mind regardless of the mode of transportation:

    • Plan and pack carefully. It's wise to make a list of travel wants and needs. Remember, it is very expensive to buy your necessities at vacation stores.
    • Adjust your travel schedule to take advantage of discount travel packages.
    • Understand any restrictions placed on your purchased airplane or train ticket. Be sure to find out if you're entitled to a full or partial refund in the event your travel plans change.
    • Be sure you can afford to pay for your vacation out of future income before you borrow to go on vacation.
    • Remember, the cheapest seat on a train or airplane will get you there at the same time as the most expensive seat.
    • Occupy your children on long trips with games and books that are not disruptive to the driver or other passengers on a plane or train.


              TR

            TD COLSPAN="2" ALIGN="CENTER" WIDTH="341"

            H3Vacation Budget/H3/TD

          /TR

          TR

            TD WIDTH="212"BTRANSPORTATION/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Car/Rental/Maintenance/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Airplane/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Train/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Taxis/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Gasoline/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Tolls/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BLODGING/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BFOOD/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Breakfast/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Lunch Dinner/Snacks/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Tips/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BENTERTAINMENT/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BTELEPHONE/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BLAUNDRY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BSOUVENIRS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BPHOTOGRAPHY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BEMERGENCY MONEY/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BMISCELLANEOUS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Children's spending money/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"Adult's allowance/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

          TR

            TD WIDTH="212"BTOTALS/B/TD

            TD WIDTH="129" ALIGN="CENTER"B$/B/TD

          /TR

        /TABLE

    ]]> <![CDATA[top10 tips to prepare for retirement]]>
    1. Know your retirement needs.
      2. 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.
    2. Find out about your Social Security benefits.
      3. Social Security pays the average retiree about 40% of pre-retirement earnings. Call the Social Security Administration at 1-800/772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES).
    3. Learn about your employer's pension or profit sharing plan.
      4. If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse's plan. For a free booklet on private pensions, call the U.S. Department of Labor at 202/219-8776.
    4. Contribute to a tax-sheltered savings plan.
      5. If your employer offers a tax sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate.
    5. Ask your employer to start a plan.
      6. If your employer doesn't offer a retirement plan, suggest that they start one. Simplified plans are available to certain categories of employers. For information on simplified employee pensions, order Internal Revenue Service Publication 590 by calling 1-800/829-3676.
    6. Put money into an Individual Retirement Account.
      7. You can put $2,000 a year into an Individual Retirement Account (IRA) and delay paying taxes on investment earnings until retirement age. If you don't have a retirement plan (or are in a plan and earn less than a certain amount), you can also take a tax deduction for your IRA contributions. Withdrawals prior to age 59 may be subject to a 10% penalty tax.) IRS Publication 590 contains information about IRAs.
    7. Don't touch your retirement savings.
      8. You'll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan.
    8. Start now, set goals, and stick to them.
      9. The sooner you start saving, the more time your money has to grow. Devise a plan, stick to it, and set goals for yourself. Start saving now, whatever your age.
    9. Consider basic Investment principles.
      10. How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.
    10. Ask questions.
      11. Talk to your employer, your bank, your union, or a financial advisor. Be sure the answers make sense to you. Get practical advice and act now.

    ]]>
    1. Know your retirement needs.
      2. 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.
    2. Find out about your Social Security benefits.
      3. Social Security pays the average retiree about 40% of pre-retirement earnings. Call the Social Security Administration at 1-800/772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES).
    3. Learn about your employer's pension or profit sharing plan.
      4. If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse's plan. For a free booklet on private pensions, call the U.S. Department of Labor at 202/219-8776.
    4. Contribute to a tax-sheltered savings plan.
      5. If your employer offers a tax sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate.
    5. Ask your employer to start a plan.
      6. If your employer doesn't offer a retirement plan, suggest that they start one. Simplified plans are available to certain categories of employers. For information on simplified employee pensions, order Internal Revenue Service Publication 590 by calling 1-800/829-3676.
    6. Put money into an Individual Retirement Account.
      7. You can put $2,000 a year into an Individual Retirement Account (IRA) and delay paying taxes on investment earnings until retirement age. If you don't have a retirement plan (or are in a plan and earn less than a certain amount), you can also take a tax deduction for your IRA contributions. Withdrawals prior to age 59 may be subject to a 10% penalty tax.) IRS Publication 590 contains information about IRAs.
    7. Don't touch your retirement savings.
      8. You'll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan.
    8. Start now, set goals, and stick to them.
      9. The sooner you start saving, the more time your money has to grow. Devise a plan, stick to it, and set goals for yourself. Start saving now, whatever your age.
    9. Consider basic Investment principles.
      10. How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.
    10. Ask questions.
      11. Talk to your employer, your bank, your union, or a financial advisor. Be sure the answers make sense to you. Get practical advice and act now.

    ]]>         <![CDATA[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 Practices Rule

    • Requires creditors to provide a written notice to potential co-signers about their liabilty if the other person fails to pay,
    • Prohibits late charges in some situations; and
    • Prohibits creditors from using certain contract provisions that the government found to be unfair to consumers.



    Equal Credit Opportunity Act
    Prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or receiving public assistance.

    Fair Credit Reporting Act
    Gives you the right to learn what information is being distributed about you by credit bureaus.

    Fair Debt Collection Practices Act
    Prohibits third party debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection.

    FEDERAL TRADE COMMISSION
    Washington, D.C. 20580
    Phone: 877-FTC-HELP (382-4357)
    Web site: www.ftc.gov

    FEDERAL RESERVE SYSTEM
    Washington, D.C. 20551
    Phone: (202) 452-3693
    Web site: www.federalreserve.gov


    ]]>

    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 Practices Rule

    • Requires creditors to provide a written notice to potential co-signers about their liabilty if the other person fails to pay,
    • Prohibits late charges in some situations; and
    • Prohibits creditors from using certain contract provisions that the government found to be unfair to consumers.



    Equal Credit Opportunity Act
    Prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or receiving public assistance.

    Fair Credit Reporting Act
    Gives you the right to learn what information is being distributed about you by credit bureaus.

    Fair Debt Collection Practices Act
    Prohibits third party debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection.

    FEDERAL TRADE COMMISSION
    Washington, D.C. 20580
    Phone: 877-FTC-HELP (382-4357)
    Web site: www.ftc.gov

    FEDERAL RESERVE SYSTEM
    Washington, D.C. 20551
    Phone: (202) 452-3693
    Web site: www.federalreserve.gov


    ]]>         <![CDATA[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 Machines (ATMs) -- Electronic terminals located on bank premises or elsewhere, through which customers of financial institutions may make deposits, withdrawals, or other transactions as they would through a bank teller.

    Balloon Payment -- A large extra payment that may be charged at the end of a loan or lease.

    Billing Error -- Any mistake in your monthly statement as defined by the Fair Credit Billing Act.

    Business Days -- Check with your institution to find out what days it counts as business days under the Truth in Lending and Electronic Fund Transfer Acts.

    Closed-End Lease -- A lease in which you are not responsible for the difference if the actual value of the item at the scheduled end of the lease is less that the residual value, but you may be responsible for excess wear-and-use charges and for other lease requirements.

    Collateral -- Property, such as stocks, bonds or a car, offered to support a loan and subject to seizure if you default.

    Cosigner -- Another person who signs your loan and assumes equal responsibility for it.

    Credit -- The right granted by a creditor to pay in the future to buy or borrow in the present; a sum of money due a person or business.

    Credit Bureau -- An agency that keeps your credit record; also called a credit-reporting agency.

    Credit Card -- Any card, plate, or coupon book used periodically or repeatedly to borrow money or buy goods or services on credit.

    Credit History -- The record of how you've borrowed and repaid debts.

    Creditor -- A person or business from whom you borrow or to whom you owe money.

    Credit Insurance -- Health, life, accident, or dispurtion of income insurance designed to pay the outstanding balance of debt.

    Credit Scoring System -- A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.

    Creditworthiness -- Past, present and future ability to repay debts.

    Debit Card (EFT Card) -- A plastic card, looks similar to a credit card, that consumers may use at an ATM or to make purchases, withdrawals, or other types of electronic fund transfers.

    Default -- Failure to repay a loan or otherwise meet the terms of your credit agreement.

    Disclosures -- Information that must be given to consumers about their financial dealings.

    Elderly Applicant -- As defined in the Equal Credit Opportunity Act, a person 62 or older.

    Electronic Fund Transfer (EFT) Systems -- A variety of systems and technologies for transferring funds electronically rather than by check.

    Finance Charge -- The total dollar amount credit will cost.

    Home Equity Line of Credit -- A form of open-end credit in which the home serves as collateral.

    Joint Account -- A credit account held by two or more people so that all can use the account and all assume legal responsibility to repay.

    Late Payment -- A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.

    Lessee -- The party to whom the item is leased. In a consumer lease, the lessee is you, the consumer. The lessee is required to make payments and to meet other obligations specified in the lease agreement.

    Lessor -- The person or organization who regularly leases, offers to lease, or arranges for the lease of the item

    Liability on an Account -- Legal responsibility to repay debt.

    Open-End Credit -- A line of credit that may be used repeatedly, including credit cards, overdraft credit accounts, and home equity lines.

    Open-End Lease -- A lease agreement in which the amount you owe at the end of the lease term is based on the difference between the residual value of the leased property and its and it's realized value. Your lease agreement may provide for a refund of any excess if the realized value is greateer than the residual value. In an open-end consumer lease, assuming you have met the use and wear standards, the residual value is considered unreasonable if it exceeds the realized value by more that three times the base monthly payment (sometimes call the "three-payment rule").

    Overdraft Checking -- A line of credit that allows you to write checks or draw funds with an EFT card for more than your actual balance, with an interest charge on the overdraft.

    Point-of-Sale (POS) -- A method by which consumers can pay for purchases by having their deposit accounts debited electronically without the use of checks.

    Points and Origination Fees -- Fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can by borrowed, but doing so will increase the loan amount and the total costs. An origination fee covers the lender's work in preparing your mortgage loan.

    Realized Value -- (1) The price the lessor or assignee receives for the leased item at disposition, (2) the highest offer for the leased item at disposition, or (3) the fair market value of the leased item at termination. The realized value may be either the wholesale or the retail value as specified in the lease agreement.

    Rescission -- The cancellation of a contract.

    Residual Value -- The end-of-term value of the item established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined in part by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.

    Security -- Property pledged to the creditor in case of a default on a loan; see collateral.

    Security Interest -- The creditor's right to take property or a portion of property offered as security.

    Service Charge -- A component of some finance charges, such as the fee for triggering an overdraft checking account into use.


    ]]>

    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 Machines (ATMs) -- Electronic terminals located on bank premises or elsewhere, through which customers of financial institutions may make deposits, withdrawals, or other transactions as they would through a bank teller.

    Balloon Payment -- A large extra payment that may be charged at the end of a loan or lease.

    Billing Error -- Any mistake in your monthly statement as defined by the Fair Credit Billing Act.

    Business Days -- Check with your institution to find out what days it counts as business days under the Truth in Lending and Electronic Fund Transfer Acts.

    Closed-End Lease -- A lease in which you are not responsible for the difference if the actual value of the item at the scheduled end of the lease is less that the residual value, but you may be responsible for excess wear-and-use charges and for other lease requirements.

    Collateral -- Property, such as stocks, bonds or a car, offered to support a loan and subject to seizure if you default.

    Cosigner -- Another person who signs your loan and assumes equal responsibility for it.

    Credit -- The right granted by a creditor to pay in the future to buy or borrow in the present; a sum of money due a person or business.

    Credit Bureau -- An agency that keeps your credit record; also called a credit-reporting agency.

    Credit Card -- Any card, plate, or coupon book used periodically or repeatedly to borrow money or buy goods or services on credit.

    Credit History -- The record of how you've borrowed and repaid debts.

    Creditor -- A person or business from whom you borrow or to whom you owe money.

    Credit Insurance -- Health, life, accident, or dispurtion of income insurance designed to pay the outstanding balance of debt.

    Credit Scoring System -- A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.

    Creditworthiness -- Past, present and future ability to repay debts.

    Debit Card (EFT Card) -- A plastic card, looks similar to a credit card, that consumers may use at an ATM or to make purchases, withdrawals, or other types of electronic fund transfers.

    Default -- Failure to repay a loan or otherwise meet the terms of your credit agreement.

    Disclosures -- Information that must be given to consumers about their financial dealings.

    Elderly Applicant -- As defined in the Equal Credit Opportunity Act, a person 62 or older.

    Electronic Fund Transfer (EFT) Systems -- A variety of systems and technologies for transferring funds electronically rather than by check.

    Finance Charge -- The total dollar amount credit will cost.

    Home Equity Line of Credit -- A form of open-end credit in which the home serves as collateral.

    Joint Account -- A credit account held by two or more people so that all can use the account and all assume legal responsibility to repay.

    Late Payment -- A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.

    Lessee -- The party to whom the item is leased. In a consumer lease, the lessee is you, the consumer. The lessee is required to make payments and to meet other obligations specified in the lease agreement.

    Lessor -- The person or organization who regularly leases, offers to lease, or arranges for the lease of the item

    Liability on an Account -- Legal responsibility to repay debt.

    Open-End Credit -- A line of credit that may be used repeatedly, including credit cards, overdraft credit accounts, and home equity lines.

    Open-End Lease -- A lease agreement in which the amount you owe at the end of the lease term is based on the difference between the residual value of the leased property and its and it's realized value. Your lease agreement may provide for a refund of any excess if the realized value is greateer than the residual value. In an open-end consumer lease, assuming you have met the use and wear standards, the residual value is considered unreasonable if it exceeds the realized value by more that three times the base monthly payment (sometimes call the "three-payment rule").

    Overdraft Checking -- A line of credit that allows you to write checks or draw funds with an EFT card for more than your actual balance, with an interest charge on the overdraft.

    Point-of-Sale (POS) -- A method by which consumers can pay for purchases by having their deposit accounts debited electronically without the use of checks.

    Points and Origination Fees -- Fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can by borrowed, but doing so will increase the loan amount and the total costs. An origination fee covers the lender's work in preparing your mortgage loan.

    Realized Value -- (1) The price the lessor or assignee receives for the leased item at disposition, (2) the highest offer for the leased item at disposition, or (3) the fair market value of the leased item at termination. The realized value may be either the wholesale or the retail value as specified in the lease agreement.

    Rescission -- The cancellation of a contract.

    Residual Value -- The end-of-term value of the item established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined in part by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.

    Security -- Property pledged to the creditor in case of a default on a loan; see collateral.

    Security Interest -- The creditor's right to take property or a portion of property offered as security.

    Service Charge -- A component of some finance charges, such as the fee for triggering an overdraft checking account into use.


    ]]>         <![CDATA[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 spending in the same way you maintain a running balance of your checking account.
    • Subtract each amount charged from the monthly charge limit you set.
    • Stop using your credit cards if you draw this balance down to zero.

    ]]>

    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 spending in the same way you maintain a running balance of your checking account.
    • Subtract each amount charged from the monthly charge limit you set.
    • Stop using your credit cards if you draw this balance down to zero.

    ]]>         <![CDATA[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:

    1. Determine how much you can afford and how much you will pay for the car. Cash is the least expensive, but two of every three car buyers must use credit. Evaluate terms offered by automotive finance companies and other lenders. Compare financing terms as well as car prices.
    2. Make as large a down payment as you can afford and plan to repay the loan as soon as possible.
    3. Select a car model within your budget that will meet your needs. Loading a car with options might double the original base price, so decide which options are essentials and which ones you can live without.
    4. Buy during the late summer or early fall, just before the next year's models arrive.Dealers offer discounts on last year's inventory.
    5. Compare various dealers' discounts on a particular car's list price. Don't be afraid to negotiate. Evaluate the manufacturers' warranties. Compare what they cover and what they don't.
    6. Read your sales agreement before signing it. Make sure it is approved by the sales manager and that all oral promises made by the salesperson regarding special services or adjustments are included in the contract.



    Leasing a car:

    Many consumers are considering leasing rather than purchasing a new or used car these days. If you're thinking about leasing your next car, here are four tips to keep in mind:

    1. Shop and compare. As in any contract, the terms in lease agreements are negotiable. Check around for the best deal.
    2. Know your driving style. Consider factors like how much you drive and how often you change cars.
    3. Be aware of any costs involved if you end the lease early.
    4. Remember that leasing a car is different from buying a car. When you buy, you're the owner. You pay for the car, you keep the car. When you lease, pay to drive a car owned by someone else. At the end of the lease, you give it back.

    A carefully selected used car can provide as reliable transportation as a new one. Seek the expertise of a mechanic for checking out a used 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:

    1. Determine how much you can afford and how much you will pay for the car. Cash is the least expensive, but two of every three car buyers must use credit. Evaluate terms offered by automotive finance companies and other lenders. Compare financing terms as well as car prices.
    2. Make as large a down payment as you can afford and plan to repay the loan as soon as possible.
    3. Select a car model within your budget that will meet your needs. Loading a car with options might double the original base price, so decide which options are essentials and which ones you can live without.
    4. Buy during the late summer or early fall, just before the next year's models arrive.Dealers offer discounts on last year's inventory.
    5. Compare various dealers' discounts on a particular car's list price. Don't be afraid to negotiate. Evaluate the manufacturers' warranties. Compare what they cover and what they don't.
    6. Read your sales agreement before signing it. Make sure it is approved by the sales manager and that all oral promises made by the salesperson regarding special services or adjustments are included in the contract.



    Leasing a car:

    Many consumers are considering leasing rather than purchasing a new or used car these days. If you're thinking about leasing your next car, here are four tips to keep in mind:

    1. Shop and compare. As in any contract, the terms in lease agreements are negotiable. Check around for the best deal.
    2. Know your driving style. Consider factors like how much you drive and how often you change cars.
    3. Be aware of any costs involved if you end the lease early.
    4. Remember that leasing a car is different from buying a car. When you buy, you're the owner. You pay for the car, you keep the car. When you lease, pay to drive a car owned by someone else. At the end of the lease, you give it back.

    A carefully selected used car can provide as reliable transportation as a new one. Seek the expertise of a mechanic for checking out a used car.


    ]]>         <![CDATA[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 forming and adhering to a spending plan that includes discussion about making major purchases.

    Financial advisors encourage wage earners in two-income households to design a plan that maximizes the benefits of the second income. For lower wage earners, the costs of child care, income taxes, and workrelated expenses may outweigh the income benefits of a second job. Even for high wage earners, without proper planning the maximum benefit will not be realized, and in some instances, the additional salary can be a tax liability.

    Planning tips for dual-income households:

    • Jointly decide if the paychecks will be combined into one checking account, or maintained in separate individual checking accounts. A designated amount from each paycheck could be deposited into a separate household account.
    • Decide who will pay the bills and maintain the account.
    • Each partner must have a personal allowance. Agree on the amount and make the money available routinely.
    • Agree upon a savings and investment plan.
    • Make the decision together on how you will finance new purchases such as a car or appliance.
    • Regardless of who the user will be, avoid debt levels that will demand the full earning potential of both wage earners.
    • If you file income taxes jointly, you are each responsible for any inaccuracies or errors on your returns. Before signing the tax return, examine the forms and ask questions.
    • If you jointly hold a credit card account, you are both responsible for any debts incurred on the account.

    ]]>

    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 forming and adhering to a spending plan that includes discussion about making major purchases.

    Financial advisors encourage wage earners in two-income households to design a plan that maximizes the benefits of the second income. For lower wage earners, the costs of child care, income taxes, and workrelated expenses may outweigh the income benefits of a second job. Even for high wage earners, without proper planning the maximum benefit will not be realized, and in some instances, the additional salary can be a tax liability.

    Planning tips for dual-income households:

    • Jointly decide if the paychecks will be combined into one checking account, or maintained in separate individual checking accounts. A designated amount from each paycheck could be deposited into a separate household account.
    • Decide who will pay the bills and maintain the account.
    • Each partner must have a personal allowance. Agree on the amount and make the money available routinely.
    • Agree upon a savings and investment plan.
    • Make the decision together on how you will finance new purchases such as a car or appliance.
    • Regardless of who the user will be, avoid debt levels that will demand the full earning potential of both wage earners.
    • If you file income taxes jointly, you are each responsible for any inaccuracies or errors on your returns. Before signing the tax return, examine the forms and ask questions.
    • If you jointly hold a credit card account, you are both responsible for any debts incurred on the account.

    ]]>         <![CDATA[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 expensive than buying a new home, it still represents a considerable investment. As with most worthwhile projects, planning is essential. Please consider the following tips before starting your remodeling project:

    Deal with a qualified and reliable remodeling contractor. It's best to get at least three estimates. Check each contractor's references with local home building and/or remodeling associations and previous customers. Avoid contractors who can't furnish a list of satisfied customers. Ask references the right questions:

    • Was the work done on budget?
    • Was the work done on time?
    • Was the contractor tidy and courteous? The workers?
    • Can the contractor handle finish carpentry work?


    Do not sign a contract until you are absolutely confident you understand all the fine print. When possible, consult an attorney on contracts for major renovations. Default on a legal contract could result in a lien on your properly, and , even worse, possible loss of your home to satisfy the debt.

    Arrange the financing carefully. Few families pay for remodeling in cash. Many financial institutions offer second mortgages and home equity loans secured by your house. The interest charges on second mortgages and home equity loans are an income tax deduction.

    Structure your contract so that the contractor will be paid in stages: 30% prior to the project's start; 30% when the work is half done; and the remainder upon completion. Many states have statues that require contractors to warranty their work.

    Inspect the work in progress; ask questions. Remember, It's your home that is being remodeled.


    ]]>

    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 expensive than buying a new home, it still represents a considerable investment. As with most worthwhile projects, planning is essential. Please consider the following tips before starting your remodeling project:

    Deal with a qualified and reliable remodeling contractor. It's best to get at least three estimates. Check each contractor's references with local home building and/or remodeling associations and previous customers. Avoid contractors who can't furnish a list of satisfied customers. Ask references the right questions:

    • Was the work done on budget?
    • Was the work done on time?
    • Was the contractor tidy and courteous? The workers?
    • Can the contractor handle finish carpentry work?


    Do not sign a contract until you are absolutely confident you understand all the fine print. When possible, consult an attorney on contracts for major renovations. Default on a legal contract could result in a lien on your properly, and , even worse, possible loss of your home to satisfy the debt.

    Arrange the financing carefully. Few families pay for remodeling in cash. Many financial institutions offer second mortgages and home equity loans secured by your house. The interest charges on second mortgages and home equity loans are an income tax deduction.

    Structure your contract so that the contractor will be paid in stages: 30% prior to the project's start; 30% when the work is half done; and the remainder upon completion. Many states have statues that require contractors to warranty their work.

    Inspect the work in progress; ask questions. Remember, It's your home that is being remodeled.


    ]]>         <![CDATA[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 commitment to provide higher education for children can be overwhelming.

    Ideally, a long-term plan for college education was initiated from the birth date of your college-bound student. There is no better way to ensure a child's education that a systematic savings plan. But this is not an ideal world, many of us must finance part of the college education out of the monthly family budget.

    Before selecting a college, parents need to:

    1. Determine how much funding can be available from conventional sources such as savings, income from the family budget, trusts, and part-time jobs, if more money is needed.
    2. Explore the availability of scholarships, low-interest student and parent loans, second mortgages, and conventional loans.
    3. Examine their own life insurance policies and retirement programs to ensure that college funds will be available in the event of their death.



    Cost is not the only factor to be considered when selecting a college. While private colleges are generally more expensive than public colleges, they often have a wealth of financial aid programs that will make the tuition bite less severe. Many state and community colleges also have scholarships and loans available.

    Libraries and bookstores carry many excellent college guides that give detailed information on individual college tuition charges academic programs. Keep in mind that most colleges have a financial aid office to assist students in determining when financial assistance may be available.

    Tuition and associated fees increase by 6% each year.


    ]]>

    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 commitment to provide higher education for children can be overwhelming.

    Ideally, a long-term plan for college education was initiated from the birth date of your college-bound student. There is no better way to ensure a child's education that a systematic savings plan. But this is not an ideal world, many of us must finance part of the college education out of the monthly family budget.

    Before selecting a college, parents need to:

    1. Determine how much funding can be available from conventional sources such as savings, income from the family budget, trusts, and part-time jobs, if more money is needed.
    2. Explore the availability of scholarships, low-interest student and parent loans, second mortgages, and conventional loans.
    3. Examine their own life insurance policies and retirement programs to ensure that college funds will be available in the event of their death.



    Cost is not the only factor to be considered when selecting a college. While private colleges are generally more expensive than public colleges, they often have a wealth of financial aid programs that will make the tuition bite less severe. Many state and community colleges also have scholarships and loans available.

    Libraries and bookstores carry many excellent college guides that give detailed information on individual college tuition charges academic programs. Keep in mind that most colleges have a financial aid office to assist students in determining when financial assistance may be available.

    Tuition and associated fees increase by 6% each year.


    ]]>         <![CDATA[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 1-800-843-2273
    Discover Card - 1-800-DISCOVER or 1-800-347-2683


    Debt Education and Counseling
    National Foundation for Consumer Credit - 1-800-388-CCCS
    Check yellow pages for "nonprofit financial counseling"


    Telemarketing/Direct Mail
    American /Telemarketing Association - 1-800-441-3335
    To order consumer guide on telemarketing fraud


    Credit Reports
    Equifax - Fraud Assistance Department - 1-800-525-6285
    Experian - To report Fraud - 1-800-301-7195
    Trans Union - Fraud Victim Assistance Department - 1-800-680-7289


    ]]>

    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 1-800-843-2273
    Discover Card - 1-800-DISCOVER or 1-800-347-2683


    Debt Education and Counseling
    National Foundation for Consumer Credit - 1-800-388-CCCS
    Check yellow pages for "nonprofit financial counseling"


    Telemarketing/Direct Mail
    American /Telemarketing Association - 1-800-441-3335
    To order consumer guide on telemarketing fraud


    Credit Reports
    Equifax - Fraud Assistance Department - 1-800-525-6285
    Experian - To report Fraud - 1-800-301-7195
    Trans Union - Fraud Victim Assistance Department - 1-800-680-7289


    ]]>         <![CDATA[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 "renew" your loan. Keep in mind that early or frequent renewals can significantly increase the overall cost of your loan. Each time you refinance, you pay additional fees and interest charges. Refinancing should only be an option if it serves to benefit you and fits into your spending plan.

    If your situation requires outside help, contact a nonprofit budget and credit counseling agency, often called a consumer credit counseling service. These agencies can work directly with consumers and their creditors to help resolve debt problems.


    ]]>

    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 "renew" your loan. Keep in mind that early or frequent renewals can significantly increase the overall cost of your loan. Each time you refinance, you pay additional fees and interest charges. Refinancing should only be an option if it serves to benefit you and fits into your spending plan.

    If your situation requires outside help, contact a nonprofit budget and credit counseling agency, often called a consumer credit counseling service. These agencies can work directly with consumers and their creditors to help resolve debt problems.


    ]]>         <![CDATA[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.
    1. Start with your monthly take-home pay.
      2. This is the amount you have left after taxes and other deductions have been made.
    2. Subtract the amount you need for necessities and fixed expenses.
      3. This includes savings, your mortgage or rent payment, utilities, food, transportation, child care, medical care, clothing, and recreation. Include payments made on a quarterly, semi-annual, or annual basis, such insurance and taxes.
    3. Subtract monthly payments for existing loans and credit cards.
    4. The balance is the amount you can safely apply to debt repayment

    Avoid thinking you can spend all this amount, since emergencies do occur, and you may not wish to use your regular savings account to cover small, unexpected expenses.


    ]]>

    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.
    1. Start with your monthly take-home pay.
      2. This is the amount you have left after taxes and other deductions have been made.
    2. Subtract the amount you need for necessities and fixed expenses.
      3. This includes savings, your mortgage or rent payment, utilities, food, transportation, child care, medical care, clothing, and recreation. Include payments made on a quarterly, semi-annual, or annual basis, such insurance and taxes.
    3. Subtract monthly payments for existing loans and credit cards.
    4. The balance is the amount you can safely apply to debt repayment

    Avoid thinking you can spend all this amount, since emergencies do occur, and you may not wish to use your regular savings account to cover small, unexpected expenses.


    ]]>         <![CDATA[is a personal loan right for me?]]>

    When deciding whether to obtain a personal loan, consider the benefits and responsibilities.

    A personal loan:

    1. Obligates future income.
      2. You'll be required to set aside a certain amount of future income for loan payments.
    2. Requires discipline.
      3. Borrowing wisely means not borrowing more than you can handle. Don't let the thrill of buying or having a sum of cash obligate you to more than you could afford.
    3. Makes it possible to meet unexpected expenses.
      4. The ability to borrow and make affordable payments can be helpful if an emergency arises that requires extra money.
    4. Allows you to obtain products and services now and pay for them later.
      5. A loan can provide an opportunity to purchase bigger-ticket items and use them right away.

    ]]>

    When deciding whether to obtain a personal loan, consider the benefits and responsibilities.

    A personal loan:

    1. Obligates future income.
      2. You'll be required to set aside a certain amount of future income for loan payments.
    2. Requires discipline.
      3. Borrowing wisely means not borrowing more than you can handle. Don't let the thrill of buying or having a sum of cash obligate you to more than you could afford.
    3. Makes it possible to meet unexpected expenses.
      4. The ability to borrow and make affordable payments can be helpful if an emergency arises that requires extra money.
    4. Allows you to obtain products and services now and pay for them later.
      5. A loan can provide an opportunity to purchase bigger-ticket items and use them right away.

    ]]>         <![CDATA[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 keep property which they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or cure a default over a period of three to five years, rather than surrender property.

    Chapter 7 or "straight bankruptcy" involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.

    Both types of bankruptcy may get rid of unsecured debts (those where creditors have no rights to specific property), and stop foreclosures, repossessions, garnishments, utility shutoffs, and debt collection activities. Both types also provide exemptions that permit most individual debtors to keep most of their assets, though these "exemption" amounts vary greatly from state to state.

    Bankruptcy cannot clean up a bad credit record and will be part of this record for up to ten years. It can, for example, make it more difficult to get a mortgage to buy a house. It usually does not wipe out child support, alimony, fines, taxes, and some student loan obligations. Also, unless under Chapter 13 you have an acceptable plan to catch up on your debt, bankruptcy usually does not permit you to keep property when the creditor has an unpaid mortgage or lien on it.

    Bankruptcy cases must be filed in federal court. The filing fee is $160, which sometimes may be paid in installments. This fee does not include the fees of your bankruptcy lawyer.

    Choosing a bankruptcy lawyer may be difficult. Some of the least reputable lawyers make easy money by handling hundreds of bankruptcy cases without adequately considering individual needs. Recommendations from those you know and trust, and from employee assistance programs, are most useful.

    Some public-funded legal services programs handle bankruptcy cases without charging attorney fees. Or these programs may provide referrals to private bankruptcy lawyers. Keep in mind that the fees of these attorneys may vary widely.


    ]]>

    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 keep property which they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or cure a default over a period of three to five years, rather than surrender property.

    Chapter 7 or "straight bankruptcy" involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.

    Both types of bankruptcy may get rid of unsecured debts (those where creditors have no rights to specific property), and stop foreclosures, repossessions, garnishments, utility shutoffs, and debt collection activities. Both types also provide exemptions that permit most individual debtors to keep most of their assets, though these "exemption" amounts vary greatly from state to state.

    Bankruptcy cannot clean up a bad credit record and will be part of this record for up to ten years. It can, for example, make it more difficult to get a mortgage to buy a house. It usually does not wipe out child support, alimony, fines, taxes, and some student loan obligations. Also, unless under Chapter 13 you have an acceptable plan to catch up on your debt, bankruptcy usually does not permit you to keep property when the creditor has an unpaid mortgage or lien on it.

    Bankruptcy cases must be filed in federal court. The filing fee is $160, which sometimes may be paid in installments. This fee does not include the fees of your bankruptcy lawyer.

    Choosing a bankruptcy lawyer may be difficult. Some of the least reputable lawyers make easy money by handling hundreds of bankruptcy cases without adequately considering individual needs. Recommendations from those you know and trust, and from employee assistance programs, are most useful.

    Some public-funded legal services programs handle bankruptcy cases without charging attorney fees. Or these programs may provide referrals to private bankruptcy lawyers. Keep in mind that the fees of these attorneys may vary widely.


    ]]>         <![CDATA[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 "permissible purposes" for obtaining your information. The FCRA also outlines how long negative information, such as a bankruptcy, may remain on your credit report. The FCRA requires that information on your consumer report be complete and accurate, and gives you the right to dispute errors and have them investigated, generally within 30 days. The law also allows you to block or "opt out" of having your information used by companies that make unsolicited offers of credit or insurance.

    The Equal Credit Opportunity Act (ECOA), which prohibits discrimination in credit transactions for a variety of factors (including race, color, sex and religion), also makes it illegal to discriminate against you because you have exercised your rights under the FCRA. For example, the ECOA requires a creditor to notify you of an adverse action on an application. If the action was based on inaccurate information on your credit report, you may dispute the information without fear of intimidation or retaliation by the creditor.

    The Fair Credit Billing Act, which establishes procedures for correcting errors on credit cards and similar accounts, includes consumer protections if you withhold payment while disputing a charge. One such protection directly involves your credit file, explains Janet Norcom, an FDIC attorney. "Once a creditor has received your notice of a billing error, it may not threaten to report you to a credit bureau for non-payment," she says. "Your credit rating is protected while you are settling the dispute."


    ]]>

    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 "permissible purposes" for obtaining your information. The FCRA also outlines how long negative information, such as a bankruptcy, may remain on your credit report. The FCRA requires that information on your consumer report be complete and accurate, and gives you the right to dispute errors and have them investigated, generally within 30 days. The law also allows you to block or "opt out" of having your information used by companies that make unsolicited offers of credit or insurance.

    The Equal Credit Opportunity Act (ECOA), which prohibits discrimination in credit transactions for a variety of factors (including race, color, sex and religion), also makes it illegal to discriminate against you because you have exercised your rights under the FCRA. For example, the ECOA requires a creditor to notify you of an adverse action on an application. If the action was based on inaccurate information on your credit report, you may dispute the information without fear of intimidation or retaliation by the creditor.

    The Fair Credit Billing Act, which establishes procedures for correcting errors on credit cards and similar accounts, includes consumer protections if you withhold payment while disputing a charge. One such protection directly involves your credit file, explains Janet Norcom, an FDIC attorney. "Once a creditor has received your notice of a billing error, it may not threaten to report you to a credit bureau for non-payment," she says. "Your credit rating is protected while you are settling the dispute."


    ]]>         <![CDATA[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 score represents lower risk. In other models, a low score represents low risk. Even companies that use the same risk score model may have different lending criteria, so a “good” score for one company may not be for another.

    While a risk score may be an important part of the lending process, the number by itself is not helpful in understanding a lender's decision. However, the risk factors that most influenced the risk score at the time it was calculated are very helpful. The risk factor statements describe Not long ago, companies used simple work sheets to review credit reports and application information. By studying repayment patterns, they were able to identify elements in credit histories and sometimes other application information that signaled greater risk. r>
    For example, using a paper-and-pencil formula, a company may have denied a credit application because of a late payment, regardless of other information in the applicant's credit history. Automated risk score models not only consider the number of late payments, but also balance the negative information against all other positive details used in the calculation. Risk scores also help users make good decisions even though credit histories can be very different. For instance, risk can be assessed on a very short credit history with only one or two accounts or on a credit history with many accounts that have been open for a long time. The issues that indicate risk for a new credit user are not necessarily the same as those for an experienced credit user with a long history. Risk score models balance such differences.


    ]]>

    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 score represents lower risk. In other models, a low score represents low risk. Even companies that use the same risk score model may have different lending criteria, so a “good” score for one company may not be for another.

    While a risk score may be an important part of the lending process, the number by itself is not helpful in understanding a lender's decision. However, the risk factors that most influenced the risk score at the time it was calculated are very helpful. The risk factor statements describe Not long ago, companies used simple work sheets to review credit reports and application information. By studying repayment patterns, they were able to identify elements in credit histories and sometimes other application information that signaled greater risk. r>
    For example, using a paper-and-pencil formula, a company may have denied a credit application because of a late payment, regardless of other information in the applicant's credit history. Automated risk score models not only consider the number of late payments, but also balance the negative information against all other positive details used in the calculation. Risk scores also help users make good decisions even though credit histories can be very different. For instance, risk can be assessed on a very short credit history with only one or two accounts or on a credit history with many accounts that have been open for a long time. The issues that indicate risk for a new credit user are not necessarily the same as those for an experienced credit user with a long history. Risk score models balance such differences.


    ]]>         <![CDATA[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 the keys to improving risk scores. The risk factor statements explain what to address from the credit history or other application information to meet the business's criteria. Addressing the factors should improve a person's overall risk level over time. Time is also very important. Usually, making a single change to a person's credit history does not instantly result in a dramatic improvement. Addressing the risk factors is the first step. Those changes typically result in slight improvements that become more significant as good credit management is consistently shown over time. For instance, paying a past-due debt will not typically result immediately in a huge improvement and may negatively impact the score temporarily. Keeping the payments current over time will demonstrate good credit management. That will result in better risk scores, no matter what risk scoring model is used.


    ]]>

    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 the keys to improving risk scores. The risk factor statements explain what to address from the credit history or other application information to meet the business's criteria. Addressing the factors should improve a person's overall risk level over time. Time is also very important. Usually, making a single change to a person's credit history does not instantly result in a dramatic improvement. Addressing the risk factors is the first step. Those changes typically result in slight improvements that become more significant as good credit management is consistently shown over time. For instance, paying a past-due debt will not typically result immediately in a huge improvement and may negatively impact the score temporarily. Keeping the payments current over time will demonstrate good credit management. That will result in better risk scores, no matter what risk scoring model is used.


    ]]>         <![CDATA[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 score. You can find them online at www.experian.com.


    ]]>

    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 score. You can find them online at www.experian.com.


    ]]>         <![CDATA[credit report services]]>


    >>Review credit report services

    It's a good idea to monitor your report for new negative information and unauthorized accounts that might affect your credit. There are 3 major credit bureaus offering credit report services. The three bureaus offer credit report services for a small fee, but under few special cases, they even provide you with a free copy of your credit report.

    Keeping a great credit rating is very essential to get the financial help you seek from lenders. These tips will help you in maintaining a positive credit rating:

    Close unnecessary credit accounts: If you have a lot of credit accounts, consider closing those you aren't using or don't think you'll need. That helps remove the temptation to overspend. Don't close all your accounts however - you need to have some credit accounts in order to maintain a solid credit history.

    Track your spending: Do you have a good idea of where your money goes on a monthly basis? Most people spend a great deal of money on little extras (fast food, beverages, little treats and splurges) without really being aware of it. Try tracking where all your money goes for a month to get an idea of what you must spend versus what you're actually spending. Remember to factor in an allowance for expenses that aren't monthly, like semi-annual or yearly taxes, auto insurance and maintenance expenses, home maintenance, gifts and vacations.

    Set new spending goals: Once you know where your money has been going, take charge and establish how you want to spend to meet your goals. Then keep tracking your spending monthly, to make sure your plan is realistic and help reinforce your new spending habits.

    Pay on time, every time: Set up a simple system to remind yourself when bills are due. Keep all bills together, in order by the date due, and check them weekly. Or write the dates due for each bill on your calendar, and check your calendar frequently.

    Pay monthly bills, or set aside the money, before spending for "extras." If you can't make payments because of a short-term emergency, talk to your creditors before you miss a payment to see if they can help you with reduced or deferred payment schedules.

    Consider using your home's equity for debt consolidation: If you've owned your home for a while, you may have equity you can use to pay off high-interest debt with a "cash out" refinance loan or home equity line of credit. Since home loans can have much lower interest rates than credit cards and other types of loans, you can save a lot of money on interest. Because interest on home loans is often tax-deductible, you may save even more (consult your tax adviser).


    ]]>


    >>Review credit report services

    It's a good idea to monitor your report for new negative information and unauthorized accounts that might affect your credit. There are 3 major credit bureaus offering credit report services. The three bureaus offer credit report services for a small fee, but under few special cases, they even provide you with a free copy of your credit report.

    Keeping a great credit rating is very essential to get the financial help you seek from lenders. These tips will help you in maintaining a positive credit rating:

    Close unnecessary credit accounts: If you have a lot of credit accounts, consider closing those you aren't using or don't think you'll need. That helps remove the temptation to overspend. Don't close all your accounts however - you need to have some credit accounts in order to maintain a solid credit history.

    Track your spending: Do you have a good idea of where your money goes on a monthly basis? Most people spend a great deal of money on little extras (fast food, beverages, little treats and splurges) without really being aware of it. Try tracking where all your money goes for a month to get an idea of what you must spend versus what you're actually spending. Remember to factor in an allowance for expenses that aren't monthly, like semi-annual or yearly taxes, auto insurance and maintenance expenses, home maintenance, gifts and vacations.

    Set new spending goals: Once you know where your money has been going, take charge and establish how you want to spend to meet your goals. Then keep tracking your spending monthly, to make sure your plan is realistic and help reinforce your new spending habits.

    Pay on time, every time: Set up a simple system to remind yourself when bills are due. Keep all bills together, in order by the date due, and check them weekly. Or write the dates due for each bill on your calendar, and check your calendar frequently.

    Pay monthly bills, or set aside the money, before spending for "extras." If you can't make payments because of a short-term emergency, talk to your creditors before you miss a payment to see if they can help you with reduced or deferred payment schedules.

    Consider using your home's equity for debt consolidation: If you've owned your home for a while, you may have equity you can use to pay off high-interest debt with a "cash out" refinance loan or home equity line of credit. Since home loans can have much lower interest rates than credit cards and other types of loans, you can save a lot of money on interest. Because interest on home loans is often tax-deductible, you may save even more (consult your tax adviser).


    ]]>         <![CDATA[credit score helpful tips]]>
    1. When you get your credit scores, make sure you also learn the highest and lowest scores possible, as well as the most important factors that influenced your scores. These factors can give you an idea of how you can improve your scores.
    2. Getting your own credit scores or credit reports won't affect your scores, as long as you order them from one of the sources we list here.
    3. Review your credit reports for accuracy. Mistakes and omissions on your credit reports probably will affect your credit scores. If you spot an error, contact the credit reporting agency and the creditor whose information is wrong.
    4. If you have questions or problems with your credit scores, contact the company that provided them to you.

    ]]>
    1. When you get your credit scores, make sure you also learn the highest and lowest scores possible, as well as the most important factors that influenced your scores. These factors can give you an idea of how you can improve your scores.
    2. Getting your own credit scores or credit reports won't affect your scores, as long as you order them from one of the sources we list here.
    3. Review your credit reports for accuracy. Mistakes and omissions on your credit reports probably will affect your credit scores. If you spot an error, contact the credit reporting agency and the creditor whose information is wrong.
    4. If you have questions or problems with your credit scores, contact the company that provided them to you.

    ]]>         <![CDATA[what is considered a good credit score?]]>

    When lenders talk about "your score," they usually mean the FICO® score developed by Fair Isaac Corporation. It is today's most commonly used scoring system. FICO scores range from 300-850, and most people score in the 600s and 700s (higher FICO scores are better). Lenders buy your FICO score from three national credit reporting agencies (also called credit bureaus): Equifax, Experian and TransUnion.

    In the eyes of most lenders, FICO credit scores above 700 are very good and a sign of good financial health. FICO scores below 600 indicate high risk to lenders and could lead lenders to charge you much higher rates or turn down your credit application.


    ]]>

    When lenders talk about "your score," they usually mean the FICO® score developed by Fair Isaac Corporation. It is today's most commonly used scoring system. FICO scores range from 300-850, and most people score in the 600s and 700s (higher FICO scores are better). Lenders buy your FICO score from three national credit reporting agencies (also called credit bureaus): Equifax, Experian and TransUnion.

    In the eyes of most lenders, FICO credit scores above 700 are very good and a sign of good financial health. FICO scores below 600 indicate high risk to lenders and could lead lenders to charge you much higher rates or turn down your credit application.


    ]]>         <![CDATA[recommended places to get credit scores]]>

    It's now easy to get your credit scores to check your financial health. Different sources provide credit scores to consumers via the Internet, telephone or U.S. Mail. For most scores, you will need to pay a small amount. You also will be asked to prove your identity to make sure your financial information isn't given to the wrong person.

    Here are recommended places you can get your scores: 

    td valign="top" width="150"This score is most often used by lenders.  It lets you see how prospective lenders would evaluate your credit history./td
td valign="top" width="175"FICO score from Equifax, Experian and/or Trans Union 300-850


    td valign="top"Credit Score is free when applying for mortgage or home equity loan./td
td valign="top"This score will likely be the actual score used to evaluate your application. Ask your lender to be sure./td
td valign="top"FICO score from Equifax, Experian or Trans Union 300-850/td

    Source Cost Description Score range
    ANNUAL CREDIT REPORT SERVICE
    Congress recently established this outlet to make it easier for consumers to get their credit reports and credit scores from the three national credit reporting agencies.

    Web:www.annualcreditreport.com
    Phone: 1 877 322 8228

    strongU.S. Mail:/strongbr
Annual Credit Report Request Servicebr
P. O. Box 105281br
Atlanta, GA 30348-5281 /td
td valign="top"pThe price for credit scores is being determined by the a href="http://www.ftc.gov/bcp/conline/edcams/credit/index.html" title="Federal Trade Commission Credit Home Page"Federal Trade Commission/a./p

  pOne free credit report per year from each credit reporting agency./p/td
td valign="top"Each credit reporting agency offers a different type of credit score to consumers./td
td valign="top"FICO score via:br 
  Equifax

    300-850

          br
      Experian score

    330-830
    TransUnion score 150-934

    MYFICO.COM
    The consumer Internet site of Fair Isaac Corporation which developed the FICO score.

    Web: www.myfico.com

    		 $14.95 for one FICO score and credit report. $44.85 for all three FICO scores and credit reports from the three credit reporting agencies (2005 pricing).

    INDIVIDUAL CREDIT REPORTING AGENCIES:

    Equifax
    Web: www.equifax.com

            strongPhone:/strong 1 800 685 1111/p
    pExperianbr
        strongWeb:/strong a href="http://www.experian.com/" title="Experian Home Page"www.experian.com/abr
        strongPhone:/strong 1 866 200 6020/p

    pTransUnionbr
        strongWeb:/strong a href="http://www.transunion.com/" title="Trans Union Home Page"www.transunion.com/a br
        strongPhone:/strong 1 800-888-4213/p/td
td valign="top" width="150"Prices for credit scores with credit reports vary from $14.95 to $34.95 (2005 pricing)./td

td valign="top" width="150"Each credit reporting agency offers a different type of credit score to consumers./td
td valign="top" width="175"FICO score via:br 
  Equifax

    300-850
    Experian score 330-830
    TransUnion score 150-934

    MORTGAGE LENDERS

    Source: shareist.com → | ∞ Permalink

    ]]>

    It's now easy to get your credit scores to check your financial health. Different sources provide credit scores to consumers via the Internet, telephone or U.S. Mail. For most scores, you will need to pay a small amount. You also will be asked to prove your identity to make sure your financial information isn't given to the wrong person.

    Here are recommended places you can get your scores: 

    td valign="top" width="150"This score is most often used by lenders.  It lets you see how prospective lenders would evaluate your credit history./td
td valign="top" width="175"FICO score from Equifax, Experian and/or Trans Union 300-850


    td valign="top"Credit Score is free when applying for mortgage or home equity loan./td
td valign="top"This score will likely be the actual score used to evaluate your application. Ask your lender to be sure./td
td valign="top"FICO score from Equifax, Experian or Trans Union 300-850/td

    Source Cost Description Score range
    ANNUAL CREDIT REPORT SERVICE
    Congress recently established this outlet to make it easier for consumers to get their credit reports and credit scores from the three national credit reporting agencies.

    Web:www.annualcreditreport.com
    Phone: 1 877 322 8228

    strongU.S. Mail:/strongbr
Annual Credit Report Request Servicebr
P. O. Box 105281br
Atlanta, GA 30348-5281 /td
td valign="top"pThe price for credit scores is being determined by the a href="http://www.ftc.gov/bcp/conline/edcams/credit/index.html" title="Federal Trade Commission Credit Home Page"Federal Trade Commission/a./p

  pOne free credit report per year from each credit reporting agency./p/td
td valign="top"Each credit reporting agency offers a different type of credit score to consumers./td
td valign="top"FICO score via:br 
  Equifax

    300-850

          br
      Experian score

    330-830
    TransUnion score 150-934

    MYFICO.COM
    The consumer Internet site of Fair Isaac Corporation which developed the FICO score.

    Web: www.myfico.com

    		 $14.95 for one FICO score and credit report. $44.85 for all three FICO scores and credit reports from the three credit reporting agencies (2005 pricing).

    INDIVIDUAL CREDIT REPORTING AGENCIES:

    Equifax
    Web: www.equifax.com

            strongPhone:/strong 1 800 685 1111/p
    pExperianbr
        strongWeb:/strong a href="http://www.experian.com/" title="Experian Home Page"www.experian.com/abr
        strongPhone:/strong 1 866 200 6020/p

    pTransUnionbr
        strongWeb:/strong a href="http://www.transunion.com/" title="Trans Union Home Page"www.transunion.com/a br
        strongPhone:/strong 1 800-888-4213/p/td
td valign="top" width="150"Prices for credit scores with credit reports vary from $14.95 to $34.95 (2005 pricing)./td

td valign="top" width="150"Each credit reporting agency offers a different type of credit score to consumers./td
td valign="top" width="175"FICO score via:br 
  Equifax

    300-850
    Experian score 330-830
    TransUnion score 150-934

    MORTGAGE LENDERS

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[boosting your credit scores]]>

    Your credit scores change when new information is reported by your creditors. So your scores will improve over time when you manage your credit responsibly.

    Here are some general ways to improve your credit scores:

    • Pay your bills on time. Delinquent payments and collections can really hurt your score.
    • Keep balances low on credit cards. High debt levels can hurt your score.
    • Pay off debt rather than moving it between credit cards. The most effective way to improve your score in this area is to pay down your revolving credit.
    • Apply for and open new credit accounts only when you need them.
    • Check your credit report regularly for accuracy and contact the creditor and credit reporting agency to correct any errors.
    • If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.


    Remember that improving your credit scores can help you:

    • Lower your interest rates
    • Speed up credit approvals
    • Reduce deposits required by utilities
    • Get approved for apartments
    • Get better credit card, auto loan and mortgage offers
    Source: shareist.com → | ∞ Permalink

    ]]>

    Your credit scores change when new information is reported by your creditors. So your scores will improve over time when you manage your credit responsibly.

    Here are some general ways to improve your credit scores:

    • Pay your bills on time. Delinquent payments and collections can really hurt your score.
    • Keep balances low on credit cards. High debt levels can hurt your score.
    • Pay off debt rather than moving it between credit cards. The most effective way to improve your score in this area is to pay down your revolving credit.
    • Apply for and open new credit accounts only when you need them.
    • Check your credit report regularly for accuracy and contact the creditor and credit reporting agency to correct any errors.
    • If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.


    Remember that improving your credit scores can help you:

    • Lower your interest rates
    • Speed up credit approvals
    • Reduce deposits required by utilities
    • Get approved for apartments
    • Get better credit card, auto loan and mortgage offers
    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[what are the different types of credit scores]]>

    There are many types of credit scores. They are developed by independent companies, credit reporting agencies, and even some lenders. As a rule, the higher the score, the better.

    • Each credit reporting agency calculates your score and each score may be different because the credit history each agency has about you may be different. Lenders may make a credit card or auto loan decision based on a single agency's score, although others such as mortgage lenders often will look at all three scores.
    • Your credit score changes when your information changes at that credit reporting agency. This is good news! It means you can improve a poor score over time by improving how you handle credit.
    • Many insurance companies use something similar when setting your insurance rates, called a “credit-based insurance score.” You may be able to improve your insurance score by improving how you handle credit, which in turn may lower your premium payments on auto or homeowners insurance.
    • Some credit scores offered to consumers are just estimates and are different from the credit risk scores lenders actually use, although they may appear similar. Consumer reporting agencies and other companies sometimes use an estimated score to illustrate a consumer's general level of credit risk. How might you tell whether a score is estimated? Ask the company if the score is used by most lenders. If it isn't, it is likely to be an estimated score.

    Source: shareist.com → | ∞ Permalink

    ]]>

    There are many types of credit scores. They are developed by independent companies, credit reporting agencies, and even some lenders. As a rule, the higher the score, the better.

    • Each credit reporting agency calculates your score and each score may be different because the credit history each agency has about you may be different. Lenders may make a credit card or auto loan decision based on a single agency's score, although others such as mortgage lenders often will look at all three scores.
    • Your credit score changes when your information changes at that credit reporting agency. This is good news! It means you can improve a poor score over time by improving how you handle credit.
    • Many insurance companies use something similar when setting your insurance rates, called a “credit-based insurance score.” You may be able to improve your insurance score by improving how you handle credit, which in turn may lower your premium payments on auto or homeowners insurance.
    • Some credit scores offered to consumers are just estimates and are different from the credit risk scores lenders actually use, although they may appear similar. Consumer reporting agencies and other companies sometimes use an estimated score to illustrate a consumer's general level of credit risk. How might you tell whether a score is estimated? Ask the company if the score is used by most lenders. If it isn't, it is likely to be an estimated score.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[five parts to your fico credit scores]]>

    As a rule, credit scores analyze the credit-related information on your credit report. How they do this varies. Since FICO scores are frequently used, here is how these scores assess what is on your credit report.

    1. Your payment history – about 35% of a FICO score
      Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. But a solid record of on-time payments helps your score.
    2. How much you owe – about 30% of a FICO score
      FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be.
    3. Length of your credit history – about 15% of a FICO score
      A longer credit history will increase your score. However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management.
    4. New credit – about 10% of a FICO score
      If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score.
    5. Other factors – about 10% of a FICO score
      Several minor factors also can influence your score. For example, having a mix of credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores.


    What's NOT In Your Scores
    By law, credit scores may not consider your race, color, religion, national origin, sex and marital status, and whether you receive public assistance or exercise any consumer right under the federal Equal Credit Opportunity Act or the Fair Credit Reporting Act.

    Source: shareist.com → | ∞ Permalink

    ]]>

    As a rule, credit scores analyze the credit-related information on your credit report. How they do this varies. Since FICO scores are frequently used, here is how these scores assess what is on your credit report.

    1. Your payment history – about 35% of a FICO score
      Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. But a solid record of on-time payments helps your score.
    2. How much you owe – about 30% of a FICO score
      FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be.
    3. Length of your credit history – about 15% of a FICO score
      A longer credit history will increase your score. However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management.
    4. New credit – about 10% of a FICO score
      If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score.
    5. Other factors – about 10% of a FICO score
      Several minor factors also can influence your score. For example, having a mix of credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores.


    What's NOT In Your Scores
    By law, credit scores may not consider your race, color, religion, national origin, sex and marital status, and whether you receive public assistance or exercise any consumer right under the federal Equal Credit Opportunity Act or the Fair Credit Reporting Act.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[why do your scores matter?]]>

    Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other kinds of credit. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit.

    Want to rent an apartment? Without good scores, your apartment application may be turned down by the landlord. Your scores also may determine how big a deposit you will have to pay for telephone, electricity or natural gas service.

    Lenders look at your scores all the time. They look at your scores when deciding, for example, whether to change your interest rate or credit limit on a credit card, or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That's why they are a vital part of your financial health.

    Consider a couple who is looking to buy their first house.
    Let's say they want a thirty-year mortgage loan and their FICO credit scores are 720. They could qualify for a mortgage with a low 5.5 percent interest rate*. But if their scores are 580, they probably would pay 8.5 percent* or more -- that's at least 3 full percentage points more in interest. On a $100,000 mortgage loan, that 3 point difference will cost them $2,400 dollars a year, adding up to $72,000 dollars more over the loan's 30-year lifetime. Your credit scores do matter.
    *Interest rates are subject to change. These rates were offered by lenders in 2005.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other kinds of credit. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit.

    Want to rent an apartment? Without good scores, your apartment application may be turned down by the landlord. Your scores also may determine how big a deposit you will have to pay for telephone, electricity or natural gas service.

    Lenders look at your scores all the time. They look at your scores when deciding, for example, whether to change your interest rate or credit limit on a credit card, or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That's why they are a vital part of your financial health.

    Consider a couple who is looking to buy their first house.
    Let's say they want a thirty-year mortgage loan and their FICO credit scores are 720. They could qualify for a mortgage with a low 5.5 percent interest rate*. But if their scores are 580, they probably would pay 8.5 percent* or more -- that's at least 3 full percentage points more in interest. On a $100,000 mortgage loan, that 3 point difference will cost them $2,400 dollars a year, adding up to $72,000 dollars more over the loan's 30-year lifetime. Your credit scores do matter.
    *Interest rates are subject to change. These rates were offered by lenders in 2005.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[What are R1 and R9?]]>
    1. "R" refers to a revolving account
    2. "I" refers to an installment account
    3. "M" refers to a mortgage account.


      These ratings are supplied by the creditor and describe you as a borrower. A rating of "1" is good, and a rating of "0" means that they don't have enough information or history to give you a rating. Any other rating ("2" through "9" ) is considered negative.

      Here is more:
      Number Rating
      R0 -> Too new to rate; approved but not used
      R1 -> Pays within 30 days of billing, or pays as agreed
      R2 -> Pays in more than 30 days but less than 60 or one payment past due
      R3 -> Pays in more than 60 days but less than 90 or two payments past due
      R4 -> Pays in more than 90 days but less than 120 or three or more payments past due
      R5 -> Account is at least 120 days past due but is not yet rated R9
      R6 -> No rating exists
      R7 -> Paid through a consolidation order, consumer proposal or credit counselling debt management program
      R8 -> Repossession
      R9 -> Bad debt or placed for collection or bankruptcy



    Usually creditors don't look at these ratings when you apply for a loan. They normally look for late payments, charge offs, or collections.

    Source: shareist.com → | ∞ Permalink

    ]]>
    1. "R" refers to a revolving account
    2. "I" refers to an installment account
    3. "M" refers to a mortgage account.


      These ratings are supplied by the creditor and describe you as a borrower. A rating of "1" is good, and a rating of "0" means that they don't have enough information or history to give you a rating. Any other rating ("2" through "9" ) is considered negative.

      Here is more:
      Number Rating
      R0 -> Too new to rate; approved but not used
      R1 -> Pays within 30 days of billing, or pays as agreed
      R2 -> Pays in more than 30 days but less than 60 or one payment past due
      R3 -> Pays in more than 60 days but less than 90 or two payments past due
      R4 -> Pays in more than 90 days but less than 120 or three or more payments past due
      R5 -> Account is at least 120 days past due but is not yet rated R9
      R6 -> No rating exists
      R7 -> Paid through a consolidation order, consumer proposal or credit counselling debt management program
      R8 -> Repossession
      R9 -> Bad debt or placed for collection or bankruptcy



    Usually creditors don't look at these ratings when you apply for a loan. They normally look for late payments, charge offs, or collections.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[Credit Rating Chart]]>
    Rating Mortgage History FICO Score Bankruptcy Discharged Notice of Reinstatement or Foreclosure Sale Date Maximum Loan to Value
    AA 1 x 30 640 or greater 3 years since discharge or dismissal 5 years Can finance up to 100% of purchase price or market value
    A- 2 x 30 600 or greater 2 years since discharge or dismissal 3 years Can finance up to 90% of purchase price or market value
    B 4 x 30, 2 x 30 or 1 x 60 560 or greater or * Chapter 7 - 1 year from discharge; Chapter 13 - 1 year from discharge or 2 years from dismissal 2 years Can finance up to 80% of purchase price or market value
    C 1 x 90 520 or greater or * 1 year since discharge or dismissal 1 year Can finance up to 75% of purchase price or market value
    C- 2 x 90 500 or greater Chapter 13 must be paid off at funding; Chapter 7 must be discharged one day prior to closing No NOD at funding Can finance up to 70% of purchase price or market value
    D 1 x 120 to current foreclosure 500 and below Chapter 13 must be paid off at funding; Chapter 7 must be discharged one day prior to funding Can be currently in foreclosure Can finance up to 65% of purchase price or market value


    * Some restrictions may apply. Other programs may be available on a case-by-case basis.

    Source: shareist.com → | ∞ Permalink

    ]]>
    Rating Mortgage History FICO Score Bankruptcy Discharged Notice of Reinstatement or Foreclosure Sale Date Maximum Loan to Value
    AA 1 x 30 640 or greater 3 years since discharge or dismissal 5 years Can finance up to 100% of purchase price or market value
    A- 2 x 30 600 or greater 2 years since discharge or dismissal 3 years Can finance up to 90% of purchase price or market value
    B 4 x 30, 2 x 30 or 1 x 60 560 or greater or * Chapter 7 - 1 year from discharge; Chapter 13 - 1 year from discharge or 2 years from dismissal 2 years Can finance up to 80% of purchase price or market value
    C 1 x 90 520 or greater or * 1 year since discharge or dismissal 1 year Can finance up to 75% of purchase price or market value
    C- 2 x 90 500 or greater Chapter 13 must be paid off at funding; Chapter 7 must be discharged one day prior to closing No NOD at funding Can finance up to 70% of purchase price or market value
    D 1 x 120 to current foreclosure 500 and below Chapter 13 must be paid off at funding; Chapter 7 must be discharged one day prior to funding Can be currently in foreclosure Can finance up to 65% of purchase price or market value


    * Some restrictions may apply. Other programs may be available on a case-by-case basis.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[What are your credit rights?]]>

    The Fair Credit Reporting Act is a federal law that regulates credit reporting bureaus and prohibits inaccurate or obsolete information from being reported in credit files.

    You have a right to get a copy of your credit report any time, but you may be charged a fee. When you receive it, carefully check all the information, including all account numbers and payment records. Make sure that old accounts you closed are listed properly with the words "closed at the consumer's request."

    You have the right to correct errors in your credit report. Enclosed with your credit report will be a form or letter explaining what to do if you find inaccurate information or items you do not agree with. Always dispute inaccurate information.

    After you begin the dispute process, the credit bureau must check with the source of the information and send you an update. It must respond to your dispute in a timely way. In most cases, you should receive a response in 30 to 45 days.

    If, after hearing from the bureau, you disagree with its response, you can add up to a 100-word statement to your credit report giving your side of the story.

    Source: shareist.com → | ∞ Permalink

    ]]>

    The Fair Credit Reporting Act is a federal law that regulates credit reporting bureaus and prohibits inaccurate or obsolete information from being reported in credit files.

    You have a right to get a copy of your credit report any time, but you may be charged a fee. When you receive it, carefully check all the information, including all account numbers and payment records. Make sure that old accounts you closed are listed properly with the words "closed at the consumer's request."

    You have the right to correct errors in your credit report. Enclosed with your credit report will be a form or letter explaining what to do if you find inaccurate information or items you do not agree with. Always dispute inaccurate information.

    After you begin the dispute process, the credit bureau must check with the source of the information and send you an update. It must respond to your dispute in a timely way. In most cases, you should receive a response in 30 to 45 days.

    If, after hearing from the bureau, you disagree with its response, you can add up to a 100-word statement to your credit report giving your side of the story.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[who else is allowed to see my credit report?]]>

    Credit bureaus do not allow everyone to see your credit report. Only those who can prove a legitimate need may have a copy of your credit files.

    In almost all cases, your written or oral permission or your signature on a credit application is required for companies to access your credit.

    Before allowing access to credit reports, credit bureaus require businesses and individuals to sign contracts in which they agree to use the data properly.

    On your credit report, you will see listed the names of everyone who has requested a copy in the last six months to two years, depending on the type of inquiry.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Credit bureaus do not allow everyone to see your credit report. Only those who can prove a legitimate need may have a copy of your credit files.

    In almost all cases, your written or oral permission or your signature on a credit application is required for companies to access your credit.

    Before allowing access to credit reports, credit bureaus require businesses and individuals to sign contracts in which they agree to use the data properly.

    On your credit report, you will see listed the names of everyone who has requested a copy in the last six months to two years, depending on the type of inquiry.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[What is credit rating?]]>

    Strictly speaking, a "credit rating" does not exist.

    What does exist is your credit record, a summary of your bill paying behavior over a number of years. Potential lenders or creditors who subscribe to the service then look over this record and "score" you, according to their own systems, as to whether you will be an acceptable risk. Federal law forbids discrimination against applicants on the basis of sex, age, race or source of income, including public assistance.

    There are 3 major national bureaus with many locations: TRW Information Services, Equifax Credit Information Services and Trans Union Credit Information Company, as well as hundreds of small local companies. To check your credit record, contact them at numbers listed in your local phone directory (located on our homepage).
    Credit bureaus derive both income and information from business subscribers, most of whom are large companies. Federal law says you have the right to see a copy of your credit report, and in most states receive one--usually for under $10. If you have been denied credit in the past 30 days, there is no charge to receive a copy of your report.

    If you want to get a copy of your credit report, you can either make an appointment or apply in writing. Send your check for the fee and the following information: your social security number, your name and any other names you have had, and your addresses for the past five years. Sometimes inaccurate information gets on your report so check it regularly. You have the right to challenge errors in your credit report. You can learn more about it by read "Correct errors on your credit report".

    Source: shareist.com → | ∞ Permalink

    ]]>

    Strictly speaking, a "credit rating" does not exist.

    What does exist is your credit record, a summary of your bill paying behavior over a number of years. Potential lenders or creditors who subscribe to the service then look over this record and "score" you, according to their own systems, as to whether you will be an acceptable risk. Federal law forbids discrimination against applicants on the basis of sex, age, race or source of income, including public assistance.

    There are 3 major national bureaus with many locations: TRW Information Services, Equifax Credit Information Services and Trans Union Credit Information Company, as well as hundreds of small local companies. To check your credit record, contact them at numbers listed in your local phone directory (located on our homepage).
    Credit bureaus derive both income and information from business subscribers, most of whom are large companies. Federal law says you have the right to see a copy of your credit report, and in most states receive one--usually for under $10. If you have been denied credit in the past 30 days, there is no charge to receive a copy of your report.

    If you want to get a copy of your credit report, you can either make an appointment or apply in writing. Send your check for the fee and the following information: your social security number, your name and any other names you have had, and your addresses for the past five years. Sometimes inaccurate information gets on your report so check it regularly. You have the right to challenge errors in your credit report. You can learn more about it by read "Correct errors on your credit report".

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[will my spouse be affected by my personal bankrupcy?]]>

    Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt.

    However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

    Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

    Your lawyer will be able to guide you in this regard.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt.

    However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

    Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

    Your lawyer will be able to guide you in this regard.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[your fico score is not affected when you check your credit]]>

    Checking your credit reports regularly to be sure they are accurate and error-free is a good ideaand you should do it at least once a year.
    In fact, maintaining accurate credit reports is a part of good credit management, which can help to improve your FICO scores over time.
    You can order all three of your credit reports with FICO scores at www.myFICO.com. You can also order your credit reports from any of the 3 credit bureaus and you are entitle to a free credit report once a year.
    Either way, your FICO score is not affected by your own credit report checks—which are voluntary.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Checking your credit reports regularly to be sure they are accurate and error-free is a good ideaand you should do it at least once a year.
    In fact, maintaining accurate credit reports is a part of good credit management, which can help to improve your FICO scores over time.
    You can order all three of your credit reports with FICO scores at www.myFICO.com. You can also order your credit reports from any of the 3 credit bureaus and you are entitle to a free credit report once a year.
    Either way, your FICO score is not affected by your own credit report checks—which are voluntary.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[what's on your consumer credit report?]]>

    Your credit report is your life. Do you know what's on your consumer credit report? Most people don't, in fact over 75% of consumers have never even seen their personal credit report. This is a mistake. Why would you not want to know what's on the one document that will ultimately control your financial destiny?

    What is on your personal credit report?

    For starters, all you personal information: name, address, date of birth, social security number, plus residence and employment history for up to ten years. If you are married this will apply to your spouse as well.

    All your account information, also know as "trade lines", comes next. This includes the date these accounts were opened, your payment history (on time or 30/60/90 day late), credit limit, account balance and negative actions taken such as charge offs, collections, foreclosures and repossessions. All this information is provided to the credit reporting agencies by the lenders.

    Public record information and recent credit inquires are also included in your consumer credit report. Bankruptcies, judgments, and liens are examples of public record information. Credit reporting agencies buy this information from people who comb through the public records. Any credit inquires will appear on your report for two years. Too many inquires could have an adverse effect on your rating.

    Finally, your credit "score". Perhaps the most important determining factor in getting a favorable credit decision. Most lenders will look at your score first to assess whether or not you meet their underwriting guidelines. A score above 700 essentially means you will get the credit you need when you need it. A score below 500 means no one will lend you a dime. Now, just how is your score determined? A mathematical formula that takes in all aspects of your life is in use here. Obviously the payment history on the accounts you now have play a big role, but many other factors are also looked at and can overshadow a good payment history.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Your credit report is your life. Do you know what's on your consumer credit report? Most people don't, in fact over 75% of consumers have never even seen their personal credit report. This is a mistake. Why would you not want to know what's on the one document that will ultimately control your financial destiny?

    What is on your personal credit report?

    For starters, all you personal information: name, address, date of birth, social security number, plus residence and employment history for up to ten years. If you are married this will apply to your spouse as well.

    All your account information, also know as "trade lines", comes next. This includes the date these accounts were opened, your payment history (on time or 30/60/90 day late), credit limit, account balance and negative actions taken such as charge offs, collections, foreclosures and repossessions. All this information is provided to the credit reporting agencies by the lenders.

    Public record information and recent credit inquires are also included in your consumer credit report. Bankruptcies, judgments, and liens are examples of public record information. Credit reporting agencies buy this information from people who comb through the public records. Any credit inquires will appear on your report for two years. Too many inquires could have an adverse effect on your rating.

    Finally, your credit "score". Perhaps the most important determining factor in getting a favorable credit decision. Most lenders will look at your score first to assess whether or not you meet their underwriting guidelines. A score above 700 essentially means you will get the credit you need when you need it. A score below 500 means no one will lend you a dime. Now, just how is your score determined? A mathematical formula that takes in all aspects of your life is in use here. Obviously the payment history on the accounts you now have play a big role, but many other factors are also looked at and can overshadow a good payment history.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[what's a credit report?]]>

    A consumer credit report is the organized presentation of information about an individual's credit record that a credit-reporting agency communicates to those requesting information about the credit history of an individual. It includes information on an individual's experiences with credit, leases, non-credit-related bills, collection agency actions, monetary-related public records, and inquiries about the individual's credit history.

    Credit reports, along with credit history scores derived from the records of credit reporting agencies, have long been considered one of the primary factors in credit evaluations and loan pricing decisions. They are also widely used to select individuals to contact for prescreened credit solicitations. More recently, credit reports and credit history scores have often been used in identifying potential customers for property and casualty insurance and in underwriting and pricing such insurance.

    The three national credit-reporting agencies ”Equifax, Experian, and Trans Union”seek to collect comprehensive information on all lending to individuals in the United States, and as a consequence, the information that each agency maintains is vast. Each one has records on perhaps as many as 1.5 billion credit accounts held by approximately 210 million individuals.

    Together, these agencies generate more than 1 billion credit reports each year, providing the vast majority of the reports for creditors, employers, and insurers. One study found that consumers receive only about 16 million of the credit reports distributed each year.

    Credit-reporting agencies collect information from reporters, creditors, governmental entities, collection agencies, and third-party intermediaries. They generally collect data every month, and they typically update their credit records within one to seven days after receiving new information. According to industry sources, each agency receives more than 2 billion items of information each month. To facilitate the collection process and to reduce reporting costs, the agencies have implemented procedures to have data submitted in a standard format, the so-called Metro format.

    Data may be submitted through various media, including CD-ROM and electronic data transfer. Reporters submit information voluntarily: No state or federal law requires them to report data to the agencies or to use a particular format for their reporting. As a result, the completeness and frequency of reporting can vary.

    Source: shareist.com → | ∞ Permalink

    ]]>

    A consumer credit report is the organized presentation of information about an individual's credit record that a credit-reporting agency communicates to those requesting information about the credit history of an individual. It includes information on an individual's experiences with credit, leases, non-credit-related bills, collection agency actions, monetary-related public records, and inquiries about the individual's credit history.

    Credit reports, along with credit history scores derived from the records of credit reporting agencies, have long been considered one of the primary factors in credit evaluations and loan pricing decisions. They are also widely used to select individuals to contact for prescreened credit solicitations. More recently, credit reports and credit history scores have often been used in identifying potential customers for property and casualty insurance and in underwriting and pricing such insurance.

    The three national credit-reporting agencies ”Equifax, Experian, and Trans Union”seek to collect comprehensive information on all lending to individuals in the United States, and as a consequence, the information that each agency maintains is vast. Each one has records on perhaps as many as 1.5 billion credit accounts held by approximately 210 million individuals.

    Together, these agencies generate more than 1 billion credit reports each year, providing the vast majority of the reports for creditors, employers, and insurers. One study found that consumers receive only about 16 million of the credit reports distributed each year.

    Credit-reporting agencies collect information from reporters, creditors, governmental entities, collection agencies, and third-party intermediaries. They generally collect data every month, and they typically update their credit records within one to seven days after receiving new information. According to industry sources, each agency receives more than 2 billion items of information each month. To facilitate the collection process and to reduce reporting costs, the agencies have implemented procedures to have data submitted in a standard format, the so-called Metro format.

    Data may be submitted through various media, including CD-ROM and electronic data transfer. Reporters submit information voluntarily: No state or federal law requires them to report data to the agencies or to use a particular format for their reporting. As a result, the completeness and frequency of reporting can vary.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[5 Quick Steps to a Better Credit Score]]>

    Learn how to manage your credit score and improve your creditworthiness.

    Think of your credit score as a picture of your credit risk.

    This picture reflects your risk at a specific point in time. A picture does not change; however, when you take another one, you will probably look a little different. Similarly, when your credit information changes, your score will also change to reflect the updated information.

    There are steps you can take to ensure that each time a new “credit picture” is taken, it shows your best side. By observing the following guidelines, you can influence your credit worthiness for the better:

    Be punctual- Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score.

    Check your credit report regularly and take the necessary steps to remove inaccuracies – Don't let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.

    Watch your debt – Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.

    Give yourself time – Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use.

    Avoid excessive inquiries – A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

    Source: shareist.com → | ∞ Permalink

    ]]>

    Learn how to manage your credit score and improve your creditworthiness.

    Think of your credit score as a picture of your credit risk.

    This picture reflects your risk at a specific point in time. A picture does not change; however, when you take another one, you will probably look a little different. Similarly, when your credit information changes, your score will also change to reflect the updated information.

    There are steps you can take to ensure that each time a new “credit picture” is taken, it shows your best side. By observing the following guidelines, you can influence your credit worthiness for the better:

    Be punctual- Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score.

    Check your credit report regularly and take the necessary steps to remove inaccuracies – Don't let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.

    Watch your debt – Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.

    Give yourself time – Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use.

    Avoid excessive inquiries – A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[10 ways to protect your credit cards?]]>

    You may think these ten rules are unnecessary. But if you ignore them, you make it easy for the wrong people to use your cards.

    Never leave your cards unattended at work. There are more credit card thefts in the workplace than in any other single location.

    If your credit card is programmed to access an Automated Banking Machine (ABM), protect your Personal Identification Number (PIN) or security code. Don't write it down, memorize it.

    Don't leave your credit cards in your vehicle. A very high proportion of credit cards are stolen from motor vehicles.

    Always check your card when returned to you after a purchase. Make sure it is your card.

    When travelling, carry your cards with you or make sure they are in a secure location.

    Report lost or stolen cards immediately. Most fraudulent use of cards takes place within days of their being lost or stolen.

    Sign the back of a new card as soon you get it. Destroy unwanted cards so no one else can use them.

    Make a list of all your cards and their numbers. This key information is helpful when reporting lost or stolen cards.

    Always check your monthly statement. Make sure the charges are yours.

    Never give your card number over the phone unless you are dealing with a reputable company. The only time you should give it is when you have called to place an order.

    Source: shareist.com → | ∞ Permalink

    ]]>

    You may think these ten rules are unnecessary. But if you ignore them, you make it easy for the wrong people to use your cards.

    Never leave your cards unattended at work. There are more credit card thefts in the workplace than in any other single location.

    If your credit card is programmed to access an Automated Banking Machine (ABM), protect your Personal Identification Number (PIN) or security code. Don't write it down, memorize it.

    Don't leave your credit cards in your vehicle. A very high proportion of credit cards are stolen from motor vehicles.

    Always check your card when returned to you after a purchase. Make sure it is your card.

    When travelling, carry your cards with you or make sure they are in a secure location.

    Report lost or stolen cards immediately. Most fraudulent use of cards takes place within days of their being lost or stolen.

    Sign the back of a new card as soon you get it. Destroy unwanted cards so no one else can use them.

    Make a list of all your cards and their numbers. This key information is helpful when reporting lost or stolen cards.

    Always check your monthly statement. Make sure the charges are yours.

    Never give your card number over the phone unless you are dealing with a reputable company. The only time you should give it is when you have called to place an order.

    Source: shareist.com → | ∞ Permalink

    ]]>         <![CDATA[applying for credit cards]]>

    When applying for credit cards, it's important to shop around. Fees, charges, interest rates and benefits can vary drastically among credit card issuers. And, in some cases, credit cards might seem like great deals until you read the fine print and disclosures. When you're trying to find the credit card that's right for you, look at the:

    Annual percentage rate (APR)—The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you. Be sure to check the fine print to see if your offer has a time limit. Your APR could be much higher after the initial limited offer.

    Grace period—This is the time between the date of the credit card purchase and the date the company starts charging you interest.

    Annual fees—Many credit card issuers charge an annual fee for giving you credit, typically $15 to $55.

    Transaction fees and other charges    —Most creditors charge a fee if you don't make a payment on time. Other common credit card fees include those for cash advances and going beyond the credit limit. Some credit cards charge a flat fee every month, whether you use your card or not.

    Customer service—Customer service is something most people don't consider, or appreciate, until there's a problem. Look for a 24-hour toll-free telephone number.

    Other options—Creditors may offer other options for a price, including discounts, rebates and special merchandise offers. If your card is lost or stolen, federal law protects you from owing more than $50 per card—but only if you report that it was lost or stolen within two days of discovering the loss or theft. Paying for additional protection may not be a good value.

    Source: shareist.com → | ∞ Permalink

    ]]>

    When applying for credit cards, it's important to shop around. Fees, charges, interest rates and benefits can vary drastically among credit card issuers. And, in some cases, credit cards might seem like great deals until you read the fine print and disclosures. When you're trying to find the credit card that's right for you, look at the:

    Annual percentage rate (APR)—The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you. Be sure to check the fine print to see if your offer has a time limit. Your APR could be much higher after the initial limited offer.

    Grace period—This is the time between the date of the credit card purchase and the date the company starts charging you interest.

    Annual fees—Many credit card issuers charge an annual fee for giving you credit, typically $15 to $55.

    Transaction fees and other charges    —Most creditors charge a fee if you don't make a payment on time. Other common credit card fees include those for cash advances and going beyond the credit limit. Some credit cards charge a flat fee every month, whether you use your card or not.

    Customer service—Customer service is something most people don't consider, or appreciate, until there's a problem. Look for a 24-hour toll-free telephone number.

    Other options—Creditors may offer other options for a price, including discounts, rebates and special merchandise offers. If your card is lost or stolen, federal law protects you from owing more than $50 per card—but only if you report that it was lost or stolen within two days of discovering the loss or theft. Paying for additional protection may not be a good value.

    Source: shareist.com → | ∞ Permalink

    ]]>