Terry Parker asked:


Everyone knows that when you shop for a car, house, or anything else you plan on purchasing using credit, the terms and rates will be dependent on your credit rating. Therefore, many consumers will pull a personal credit report to use when shopping around to see what type of deal a merchant, creditor or lender may be able to give them.

Many consumers like to use a personal credit report when shopping for two reasons. One reason is that consumers know that inquiries into their credit history can lower their credit score. So it is very beneficial to keep credit inquiries to a minimum. Also the consumer may have to pay a credit report fee to the lender or creditor when they pull a credit report.

But consumers often wonder why a creditor will not accept a recent credit report especially when it was recently obtained. Consumers will find out that a creditor or lender may use the recent consumer report at first just to give an estimate of what terms and rates may be available but before an actual sale or transaction can occur the creditor or lender will need to pull another report. There are several reasons why another report will be needed.

A creditor or lender must always take action to protect itself and its investors by performing the proper due diligence on each deal and this includes pulling all consumers credit reports directly. With technology today it would be very easy for someone to fabricate a consumer credit report. This could even be as easy as electronically cutting and pasting a name on the credit report of another person. A creditor or lender must take precaution and pull a credit report directly to protect everyone. This adds an extra layer of protection for everyone. Identity theft is on the rise and the FBI has declared it a national epidemic.

Another reason is because the report that a lender or creditor may receive is very different from the consumer report. A basic consumer report is what an individual gets when they order their own credit history. This report can be obtained from a local credit bureau or from one of the big three: Experian, Equifax, or Transunion. The costs for these typically range from $8 to $15. Typical consumer reports contain basic personal information, some employment history, different credit accounts, some credit history and may include a credit score.

A merchant on the other hand will pull a full merchant report that will contain more information than a basic consumer report and will provide it with more detailed breakdowns. The merchant report will also show a complete FICO scoring system rating for the applicant which will include a full detailed credit history breakdown. In essence the lender or creditor has a full merchant scored report which is much more accurate than a regular consumer report. So a personal consumer report may be used to shop around to learn what may be available. But if you are serious about a purchase and want to see exactly what terms and rates you can get be prepared to have a full merchant report pulled. The good news is that you may be able to get a better deal than you thought was possible based on your consumer report.



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John Mcfadden asked:


Getting your free credit report online is not easy straight forward you you might think, there are plenty of things you need to know - like being aware of the current scams in the targeting consumers, you need to get the 3 credit reports from all three major Credit Bureaus, you need to get your report every four months, you need to know about identity theft, and more.

A credit report is essential - you know that you need to have a good one - or a good credit score to be able to access credit, but do you know the key information that banks or lenders look at on your report when they are assessing gif they will lend you month or not?

The American company FiCO has a tool that helps credit bureaus determine your credit score - below is the matrix that is used:

Payment History 35%

Amount Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

So you need to go though your report and look at these areas and concentrate on the ones at the top of the list. If they don’t look that healthy then maybe leave applying for a loan for at least six months - in that time frame you can look at areas to improve your credit score.

Current Credit Report Scams

There are a few scams on the internet at the moment - they will advertise a free credit report and then slug you will a service fee. Be sure that when you apply for you credit report you are sure about the additional services that they are selling to you - make sure you read all there documentation and be sure not to sign up to anything you are not sure about. Also, watch out for this one where you can get caught by supplying personal inforamtion. It works by you providing information via an online form requesting to receive a credit report. What actually happens is that your personally identifiable information is captured by the Scammers who pose as a business.

Get your correct Credit Report Information

You need to get a report form all three credit report bureaus, why you asK? because your past loan and debt information may only be on one of the reports - by law lenders have to report you financial info but only to one bureau, so if you get your report form another bureau then you don’t have access to all your financial history - so you will not be able to firstly correct wrong information but you wont get a clear assessment of where you stand, so when you apply for a loan you could be rejected. You need to get your report form all three bureaus and also make sure you keep getting the reports every 4 months - as different information will come in at different times, the best way to get your info is first apply for your report at all three bureaus and then get an addition one for each agency one-by-one every four months. This way, after a year you will be sure to have a full picture of where you are at.

I hope this information on getting your credit report was of value and you see the importance of your credit report and credit score.



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Carrie Reeder asked:


Each consumer with credit history should obtain a copy of their report annually. The cost of credit reports vary. If obtaining a copy from the credit bureaus, consumers may pay $15 per bureau. However, some online credit agencies advertise low cost credit reports. Rather than paying for a credit report, consider obtaining a free report.

Who Qualifies for a Free Credit Report?

By law, each consumer is entitled to one free credit report each year. Although reports are free, consumer may have to pay a few bucks to view their credit score. Despite this incentive to encourage credit report monitoring, many people neglect to review the contents of their report. This results in millions becoming victims of identity theft each year. Free credit reports are available online, and viewable for up to 30 days. However, other factors may also qualify you for a free credit report.

Credit Report Inaccuracies

If you believe that your credit report contains errors or mistakes, you are a good candidate for a free credit report from each of the three bureaus. The majority of people only review their report from one bureau. However, if the contents on the Experian report are inaccurate, it’s worth obtaining copies of the other three reports to ensure that the same mistake has not occurred twice.

Denied Credit, Employment, or Insurance

Although credit history has nothing to do with your ability to function well on the job or drive a car, many employers, and insurance agencies have begun checking credit reports. In some instance, a negative credit rating may prevent you from obtaining employment, or result in higher car insurance premiums. Individuals who have been denied a line of credit, employment, or insurance because of their credit will qualify for a free report.

Experience a Credit Limit Reduction or Interest Rate Increase

Unfortunately, creditors have the right to reduce credit limits and increase rates at their leisure. If you habitually make late payments or exceed your credit limit, a change in credit card limits and rates should be expected. However, if changes occur for no apparent reason, it helps to obtain a free copy of your report and ensure that all information is accurate.



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Stephanie P asked:


I plan on moving to an apartment in Florida in about 6 months. I recently entered a Credit Counselling program which shows as “Paying by 3rd party” on my credit report for all accounts invovled in the CCCS. My car, cell phone and one credit card are not in the program. ALL accounts are all paid timely. When I rented previously I was never late. Will I have a problem renting an apartment?

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John Mcfadden asked:


A Credit Report is essential for ever adult. It allows you information one your own financial position to allow lenders to give you credit. If you are about to apply for a loan then it’s strongly recommended that you access your report up to six months before taking out the loan. This is advised because you will have time to correct any wrong information and pursue ways to lift your credit score on your credit report.

Getting a loan is essential in this day and age so if you want to head on the path of financial freedom (don’t we all) then it’s important you know what a Report is all about and how you can best make use of the information, this seems fairly logical so you’ll be surprised to find out that over 75% of Americans don’t know their Credit Score! and 20% have never even seen their Credit Score! So if you are reading this article then you are probably ahead of most people and therefore will get to the financial freedom path faster then most.

There are three main Report Bureaus that you can access your credit report from. It’s important that you don’t ask for your credit score as if you want get a free copy of your report.

The three Report Bureaus are: Experian (formally TRW), then Equifax, and TransUnion.

It’s very important to understand what your credit report is exactly made up of. Here is a list of the following ingredients:

Payment History 35%

Amount Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

It’s important you know the ways to improve your credit score, so follow the following tip to get your score as good as it can be so creditors will only be too happy to loan your the money for your new house, with them being very confident you can make the repayments back. It most likely will provide you with a better interest rate and your terms and loan conditions will also be improved.

Credit Score Improvement Tips.

Refrain from getting loan consolidations.

This will effectively kill off you past history on all the loans you’ve had, seeing that your credit report and score’s biggest factor and most important figure is your past payment history, then you need to maintain loans and finish them off with the financial institution you took them out with.

Keep Old Accounts

This is similar to the above point but with a difference. It’s important I point out to you that having several accounts or lets say credit card accounts for example. The total available credit when compared to what you ow on the cards is a ration that the credit report will factor in to work out your Credit Score. The less that ration is - of if it surpassed a factor of 1 then you are bankrupt. So if you move over our debts on credit cards to one which has a lower interest rate it may be good for you in the short term but not in the long - as your available credit to debt become higher and there for a negative.

Resist the temptation for getting in store credit cards

Having many in store cards will show that your not the best saver and that your credit worthiness is not excellent. It could be a hit of as much as 20 points on your credit report rating. It also lowers your age of credit for each card.

I hope this information on getting your credit report has helped and you see the importance of your credit report and credit score.



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John Mcfadden asked:


You might not realize but finding out the best way to read your credit report can actually save you a lot of time and money - it’s not even that hard to get started, but there are some basics that you need to get your head around all the numbers, abbreviations and unfamiliar terms before reading your credit report.

Before going to a website and getting your credit report you need to be aware that you will need to get more then one create report.

The three main credit report agencies will have a copy of your report but your information will be inconsistent across all three of them - lenders will report your information to maybe only one or two agencies and that information might be incorrect.

Your personal information is no doubt old and out of date as when past lenders reported on your personal information they will only normally report it back to one of the agencies.

You need to get a copy from each one and make sure you do this regularly through out the year, it is recommended that you get a copy from all three first and then get one copy every 4 months - but get one at a time - only by getting your report through this process can you be sure you have the correct information.

The main resign for this is that its voluntary reporting process so the lenders don’ have to by law report your information.

You need to make sure you get a consumer friendly report - don’t ask your friend who may work at a bank to get your copy for you - as you will not be able to read it correctly - you need to get a consumer version.

The Credit report layout

Each report is divided into four sections falling under these categories - Identifying Information, Credit History, Public Records and Inquires.

Identifying information is quote obvious - it’;s all the key information about you but make sure you look t this closely - this is the most common place for your report to be incorrect, especially check you social security number.

Other personal information is your address, phone numbers, date of birth, drivers licenses, your employment information and your spouses name.

The following section is your Credit History - this is the most important information that your new lender will look at to assess your credit worthiness required to make an assessment. You might see that individual accounts are called trade lines.

The accounts will include each creditors name and the associated account number (this could be disguised for security reasons) Note that you may have multiple account kinds with the one lender as they will create a new one if you move.

Here you will have information like the date you opened your account, total amount of the loan, if you’ve paid off the account well and one time. It will also state how much money you owe and the credit limit, and ofcause the account status.

Look out for “charge Off.’s these are big black marks that mean that the lender has given up chasing you and has noted that they did not receive the money they were owed.

Public Recored

You wan this section left totally pristine white - blank as can be. As having a report here will seriously impact your likelihood of gaining credit. bankruptcies, judgments and tax liens activities are listed here.

Inquiries - The Last Section

This the place that will note each inquiry that was made you your account - noted as a soft or hard “call”so if you If you call the credit bureau and ask for a copy it will be on there. It’s great as it’s a very detailed entry record.

“Hard” inquiries are ones you initiate by filling out a credit application - you wan to avoid these as they will have a negative impact on your report if you have too many but the good news is that it also counts two or more “hard” inquiries in the same 14-day period as just one inquiry.

Read your report carefully and report any mistakes to each credit agency so you can get them all fixed and consistent as soon as possible.

I hope you know how to read your Credit Report, so you have a good handle on what your information means.



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zazzy z asked:


What is the proceedure to report either good or bad history to the three credit credit reporting agencies, and how does a business qualify for being able to do so?

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John Mcfadden asked:


A consumer credit report is the annual assessment of each person’s credit standing. By knowing what is on your you can get a lot of benefits when you go to get credit based services like loans, credit cards and even rent and phones.

Each year, by law, American citizens are entitled to obtain a free copy of their annual consumer credit report which basically details their credit risk profile. This allows companies who are considering extending some type of credit to the consumer to make an educated decision on the risk of that transaction. The better the credit of the consumer, then the better chance that company has of being paid back by the consumer.

By having a good credit report, a consumer can gain advantages such as cheaper loans and credit cards and avoid the embarrassment of being rejected for things like rental apartments and telephone contracts.

There are three companies which can offer a free consumer credit report (Experian, TransUnion, and Equifax) and are legally obliged to offer that annually.

By knowing what is in your credit report, you can negotiate for better credit condition (if you’re report is good) or you can strive to repair your credit by challenging inaccurate or false items on your report.

To do that, you simply need to obtain a copy, unfortunately you need to actually a report from all three credit bureaus. Why, because lenders don’t report to each bureaus, they just report to one with your past financial information - so if you only obtain a copy of one report then you will not have your complete financial position and history, it is recommended that you get all three reports - they way you know where you stand and you start improving nay negative information, it is common for your personal information to be old or incorrect.

Make sure you update them with your correct address. Be sure not to use companies that claim they can quickly improve your credit score, they are most likely to be scammers.

Assess the items on it that are negatively affecting your credit score and challenge those items to the relevant consumer reporting company. That company is then legally obliged to pursue the matter.

The thing is that challenging your credit report takes knowledge and time and so it may often be a better option to hire a credit reporting company to do the leg work on your behalf.

It’s essential you know how lenders will read and give weight to different parts of your Credit Report:

The American company FiCO has a tool that helps credit bureaus determine your credit score - below is the matrix that is used:

Payment History 35%

Amount Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

Such companies know exactly what can be challenged as well as how to do it and who to contact about your credit.

By having a good credit report, you can make your own life a lot easier and cheaper in the long run.

Hopefully this article has been helpful for you and you will now know exactly what yours says.



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Cathy Taylor asked:


The Fair Credit Reporting Act (FCRA) and the recent update to this law called the Fair and Accurate Credit Transactions Act (FACTA) protect consumers against inaccurate information being reported by credit bureaus and the privacy of that information. What does this mean to you?

When you make purchases on a credit card, make payments to your accounts, open new bank or credit accounts, borrow money, buy a house or a car, and even fund your education, your financial information is reported by creditors and lenders to a credit bureau.

The three major credit agencies that serve as clearinghouses for this information are Equifax, Experian, and TransUnion. Each lender and credit company may report your information to a different agency, depending on the location of the business and the service agreement between the companies, so each credit agency might print very different information on your credit report.

According to the FCRA, you have the right to know what is on your credit report if you ask for it. You can contact each of the credit bureaus separately and pay for a report at any time. However, if a company refuses you credit, employment, or insurance, you may request a free copy of your report within 60 days. Simply ask the company that denied you credit for the name and contact information of the credit bureau they use. In addition, all three agencies must provide a free copy of your report in cases where you have been the victim of fraud or identity theft.

Due to the recent changes by the FACTA, you will be entitled to one free copy of your report from each agency per calendar year, effective in all states by the end of 2005. (You can order it at www.annualcreditreport.com ) For example, if you order a report from Equifax in June of 2005, you may request a free report in June 2006. The credit bureaus must also supply you with a list of everyone who has requested your report in the last year.

The FCRA requires that all credit bureaus and all information providers, such as lenders, credit card companies, or landlords, correct any inaccuracies that they are aware of in your report. If you find inaccurate or incomplete information in your credit report, notify all three agencies by phone and follow up in writing by using certified mail, return receipt requested, so you will have documentation of all requests and responses by the bureaus.

Also send a request for the correction in writing to the information provider. If the provider finds that the inaccuracy is substantiated, they must notify all national credit bureaus of the correction. If the dispute results in a change, the credit bureau is required to provide you with written results and a free copy of your adjusted report.

Privacy is a serious issue when it comes to your personal information, and the FCRA includes provisions to guard the privacy of your credit report. Your employer or a potential employer may only gain access to your credit history with your consent. An employer, insurer, or creditor cannot access a report that contains your medical information without your approval. Only people with a legitimate business need, such as an application for credit or a rental agreement, are allowed under the FCRA to obtain a copy of your credit report.

The FACTA has enabled consumers to place a fraud alert on their credit report with one phone call to the credit agency. In cases where you suspect that you are the victim of identity theft, or have simply lost your identifying information, you can stop potential thieves from accessing your credit.

You can also get records from businesses where a thief has used your personal information without your consent, provided you have a copy of the police report detailing your identity theft. These records are invaluable in the process of clearing your name after such a crime.

Also new with FACTA is the requirement that mortgage lenders and credit bureaus provide consumers with their credit scores upon request. In addition, if an information provider is sending negative information to a national credit bureau for inclusion on your credit report, they must now send you written notification prior to doing so.

These laws, the FCRA and its newer counterpart the FACTA, have made significant strides toward protecting the consumer from potentially damaging errors and breaches of privacy.

More information can be found at http://www.apscreen.com



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robert o asked:


I plan on buying a new car within the next month or so. I recently received a notice that I now have a fraud alert on my credit report and the Equifax was going to send the same to the other 2 bureaus.

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