Cathy Taylor asked:


So you ordered a copy of your credit report to check for inaccuracies and get the most from your credit score. Now how do you read it? Your credit report is read and used by any number of people you deal with on a daily basis, from your landlord to your employer to a potential lender. Fortunately, it has gotten easier to order a copy of your report, but it’s not so easy to understand what all those abbreviations and numbers mean once you’ve got it.

If you haven’t ordered your credit report yet, you will soon be entitled to a free copy from each of the three major credit bureaus, Equifax, Experian, and TransUnion. Some states can already take advantage of this new policy, but people living in eastern states will have to wait until September of 2005. Order your free yearly copies from all three agencies and check for the availability of the annual reporting program in your area at the same website: www.annualcreditreport.com . Each report will contain different information because retailers and creditors only report to the agency in their area or with whom they have an agreement.

Once you have your credit report in your hands, you will see that it is divided into four main sections:

• Consumer information

• Account histories

• Public records

• Inquiries

Double check the accuracy of your identifying information. This will include your name, address, phone number, previous addresses, date of birth, and Social Security number (SSN).

Next, for each account history, or trade line, you will see the following information:

• Date you opened the account

• Type of credit account (either installment, such as a car loan or mortgage, or revolving, such as a credit card)

• Name(s) on the account

• Total loan amount, credit limit, or highest card balance

• Amount you currently owe

• Amount of your monthly payment

• Account status (either open, closed, inactive, paid, or other)

• How promptly you have paid on the account

Credit agencies vary as to how they word various sections of the report and should provide you with a guide to reading their versions. One agency might report in the last column of an account history that you paid “on time” or “30 days late.” Another agency might use a numeric code to rate how well you paid off a debt. R1 is the code used for an excellent repayment history on a revolving charge account. I1 is the code used for an excellent repayment history on an installment account. Obviously, the higher the number next to either the R or I, the lower your repayment history is rated. So an R4 would indicate a history of late payments.

The public records section will include any tax liens, bankruptcies, judgments, or other financial-related legal matters. Depending on the type of action taken, these damaging records may stay on your credit report for up to 7 to 10 years.

The last section lists the inquiries made on your credit. Hard inquiries are those requests to pull your credit when you apply for such things as loans or lines of credit for services. Soft inquiries result when companies sending out promotional items to pre-qualified individuals check your history or when your current creditors check your payment status. The soft inquiries only show up on the report that you order, not on reports pulled by lenders.

While too many inquiries in a short period of time can signal a red flag to a lender, most credit scoring models are least affected by this portion of your report.

Check your report for any errors and report them immediately in writing. If you need more information about how to reach the three main credit bureaus, please go to www.apscreen.com.

Don’t forget that the credit agency providing your report is also a great source of information on not only reading your credit report, but raising your credit score.



Kansieo.com

Paul Hata asked:


Want to know your financial creditworthiness? Have a credit check and determine your personal credit score.Credit check is usually done to verify whether you are eligible for a loan or on any other forms of credit based on your past credit performances.

This will reveal your past as well as your previous credit transactions with different lenders and how you deal with it. Thus, a credit check is the reflection of your past credit performance. It works like a report card, which reveals whether you have pass or fail in a particular subject.

Credit checks are done by lending institutions such as credit card companies and banks on individuals who wish to apply for a loan or any form of credit. In addition, credit checks could also be done by a homeowner whether an individual would be a good tenant or not, as reflected by his or her past credit performance. Insurance firms also run credit checks on individuals who wish to avail of their insurance policies.

You can obtain your credit report containing credit-related information from any of the three major credit-reporting agencies. Furthermore, you can obtain your personal credit reports for free as stated in the FCRA or the Fair Credit Reporting Act. Under this Act, every individual is entitled to receive a free credit report from any of the three major credit-reporting companies in the United States once a year - Experian, Equifax, and Trans Union.

Your free credit report contain your personal information (such as your name and address), how you paid your past and previous bills, and any delinquencies you have committed such as late payments as well as if you have filed for bankruptcy.

To obtain your free credit report, you need to fill up the required form through a centralized credit report website on any of the three major credit bureaus in the United States. You will be required to provide some basic information, which includes your name, permanent address, your social security number, and your birth date.

Your credit report is important in securing yourself against any attempts of identity theft such as credit cards misuse and other forms of fraud. In addition, you must update your credit report regularly as lending institutions would be using such reports to determine if you are worthy enough to be awarded with the loan you have applied for.

After you received your free credit report, you should read each section carefully. All aspects must be included in computing your credit score. So make sure you have paid attention to all of them. Check your report for any discrepancies and make sure that you have not missed any payments at all. Your credit report also comes with the list of individuals or business entities that you have requested credit information from. You may also check to see if such names or entities are familiar with you.

Your free credit report would be used in running a credit check to you when applying for a loan or any other forms of credit. Thus, make sure that it is free of discrepancies or erroneous entries. Keep in mind that this report will reflect your credit performance - ensure that you do not stumble anywhere so that your loan application would always be a success.



Jacob

Brandi asked:


I recently pulled my credit report from one of the three major credit bureaus. On it was listed all negative items. I have had 3 car loans which have been paid on time. How do I get these positive marks added to my credit report. I would like to apply for credit but because of a past credit mistakes I am unable to. I would like to buy a house and want banks to see I’ve made a change for the better.
Any help would be greatly appreciated

Kansieo.com