- What is a Credit Score?
A credit score is a number that reflects your risk level, as an individual, to a lender. The higher the number, the lower the risk will be to the lender. As you apply for increased credit or attempt to make a purchase, the lender will check your ability to pay back that loan. The more negative marks you have on your credit report, the less likely you will be granted the loan or purchase you requested. back to top
- How Often Can Individual Credit Scores Change?
consumer's current credit situation, based on the information in the credit report at the time the credit report is pulled. back to top
- What is a Credit Report?
A credit report is a history of your use of credit and other personal information which gives lenders an overview of your credit history. Whether you are applying for a credit card, a car loan, a personal loan or a mortgage. Lenders want to determine your credit risk level. Lenders want to know if they can rely on you to pay them back on time. back to top
- Who are the Credit Reporting Agencies?
There are three major credit reporting agencies: Equifax, Experian and TansUnion. These agencies collect data and maintain records on millions of Americans and their bill payment history. The reports tell lenders how much credit an individual used, what types of credit and how long they had various accounts, and whether an individual pay their bills on time. Each year, billions of lending decisions are based upon the information in those reports. back to top
- How does my Credit Score Influence How Much Credit I Should Get?
Your credit report and score strongly influences how much credit that will be made available on your behalf an the terms you are offered by lenders. The speed you are approved for credit, the interest rates you get, and decisions about the amount of credit are all determined by the information found in your credit report. back to top
- What's In Your Credit Report?
Although each credit reporting agency formats and reports this information differently, all credit reports contain basically the same categories of information such as identifying information, trade lines, credit inquiries, public record and collection items. back to top
- How does Credit Score Calculated?
The formula used to calculate a credit score includes information based on several factors: 35% on your payment history, 30% on the amount you currently owe lenders, 15% on the length of your credit history, 10% on the number of new credit accounts opened or applied for, 10% on the mix of credit amounts that contains mortgage, credit cards, installment loan, etc. back to top
- Are the Credit Reporting Bureaus, a Government Agencies?
No, Credit reporting companies are individual companies. They are in the business to make money, and they generate their income by selling credit reports to creditors. back to top
- How Much Time Do Negative Items Stay on a Credit Report?
Negative credit accounts, or trade lines, can remain on your credit for up to 7 years, and bankruptcy and other public record for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from a credit report if the consumer requests an investigation into remarks that they feel are incorrect. back to top
- Is there Anything that Cannot Be Removed From a Credit Report?
No, all information reported by the credit bureaus are subject to the same laws and criteria. We may challenge on your behalf any items you request and the credit bureaus must investigate these items. back to top
- Should an Individual Care What's In There Credit File?
Once credit report that creditors use to determine if they will extend credit to an individual. If a individual have inaccurate information on their credit report. That individual may be turned down for a loan that he/she/they need or to pay unnecessary high interest rates. back to top
- What is a Identifying Information?
Your name, address, social security number, date of birth and employment information are used to identify an individual. These factors are not used in credit scoring. Updates to this information come from information you supply to lenders. back to top
- What is a Trade Line?
These are your credit accounts. Lenders report each account you have established with them. Lenders report the type of account such as bank card, auto loan, mortgage, etc. The date you opened the account, your credit limit or loan amount, the account balance, and your payment history. back to top
- What are Credit Inquiries?
When you apply for a loan, you authorize your lender to as for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both "voluntary" inquiries, initiated by your own requests for credit, and "involuntary" inquiries, such as when lenders order your report so as to make you a pre-approved credit offer in the mail back to top
- What is a Public Record and Collection Items?
Credit Reporting agencies also collect public record information from State and County courts, and information on overdue debt from collection agencies. Public record information includes bankruptcy, foreclosure, law suits, wage attachments, liens and judgements. back to top
- Does Husband and Wife Have Separate Credit Reports?
The credit bureau collects information based on individual Social Security numbers. back to top
- Does The Credit Bureaus Report The Same Information?
Depending on which lender you go through will determine which credit bureau the item will appear on. It could be one, two or all three credit bureaus. back to top
- Who has Permission to Access My Credit File?
Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is: Granting credit, reviewing your account, or collecting on your account, reviewing you for an employment purposes, reviewing your application for insurance, reviewing your eligibility for a license or government related benefits, providing information for a business transaction, such as renting and apartment, has a court order, has an IRS subpoena, or someone to whom you have given written permission. back to top
- How Do Mistakes Get On Someone's Credit Report?
It is estimated that as many as 80% of credit files contains errors. If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens when: you applied for credit under different names, someone made a clerical error in reading or entering name or address information from a hand-written application, you gave an inaccurate Social Security number or the number was misread by the lender, and loan or credit card information was inadvertently applied to the wrong account. back to top
- Who Can Remove Items From My Credit Report?
Only the credit bureaus have the power to remove items from your credit report. But, as required by law, the credit bureaus must delete inaccurate, unverifiable, or outdated information. back to top
- Is Credit Restoration Legal?
Absolutely. The Fair Credit Reporting Act allows anyone to dispute inaccurate items on their credit reports. There's nothing we do that you cannot do yourself when it comes to fixing your credit situation. Individual can restore their credit on their own but this can take time and a lot of knowledge when it comes to the credit laws. That's why we are here to help and assist since we have the experience and knowledge to get you the positive results. back to top