Credit Report Guide

Resource for Those Looking for Credit Report Information

Your credit report is a detailed history of your credit including past borrowing and repaying. Establishing a good credit history is important because it is used to determine a number of factors including if you qualify for credit and how much you will pay in interest rates. You also need to understand your credit report and what information contributes to it in order to ensure that your credit is protected. The following articles will help you to better understand all that goes into your credit report.

Adverse Credit History: Many people wonder what defines an adverse credit history. An individual’s credit history is determined by one, two, or all three credit bureaus – Equifax, Experian, and TransUnion. Each agency tracks a history of your credit and compiles a FICO score that reflects your entire credit history in the form of a three-digit score.

Annual Credit Report: The right of every consumer to a free credit report each year is protected by the law. Anyone concerned with their credit must request this report from one of the three credit agencies or through the central site annualcreditreport.com, which is sponsored by Equifax, TransUnion, and Experian.

Bad Credit Score: Mediocre credit can result in higher interest rates, more expensive insurance premiums, fewer job opportunities, and could disqualify you from buying a home. Poor credit ratings can impact your life in numerous ways, so you should carefully consider any behavior that negatively affects your credit score.

Business Credit Report: Business credit reports carry a wealth of information that companies can research to investigate potential suppliers, partners, vendors, customers, and associates. Objective business reports help successful business people make critical decisions about the people they are considering working with in some kind of partnership.

Business Credit Score: Business needs capital to grow and expand, and business credit determines whether a business can obtain financing, what kind of interest rate lenders charge, and if a company can obtain unsecured credit or needs to put up collateral to secure a loan.

Credit Application: Applying for new credit in the form of a loan or credit card can sometimes result in a disappointment. Credit applications are not always approved and a denial is a good indication of something wrong. Understanding the factors that result in a denial will make it possible to identify and fix the problem before the next application for credit.

Credit Bureaus: The three major credit bureaus — Experian, Equifax, and TransUnion — all gather personal information on consumers, with the intention of selling that information to businesses. The information in these reports is vital to your life, so it’s a good idea to know about the companies providing them.

Credit Card: Credit cards are useful financial tools when used appropriately. The problem is that common myths often arise that are misleading and confusing to many individuals. Learning the myths associated with credit cards and understanding the reality will make it easier to properly use a credit card for personal finances.

Credit Card Fraud: Credit card fraud is the fastest growing crime in the U.S. today, according to FBI statistics. In 2011, approximately $3.2 billion dollars of credit card fraud was reported by fraud victims and companies. Protecting yourself from credit card fraud is essential in maintaining a good credit score and keeping your finances in order.

Credit Card Score: Credit cards are not inherently a problem, but it can easily get out of control when a high interest rate is applied. Anyone who has a bad credit rating will want to carefully weigh the different cards to ensure the chosen one meets personal needs.

Credit Counseling: Financial struggles relating to credit cards and other debts often result in seeking professional help. Credit counseling is an available debt relief solution that can help some individuals, though it is not appropriate for every situation. Understanding the facts about credit counseling will make it easier to determine if it is the best solution for personal finances.

Credit Dispute Letter: Identity theft, inaccurate or incomplete reporting, or reporting errors could cause your report and credit score to suffer an unjustified downgrade. It is important that you report any inconsistencies you have to the appropriate bureau immediately.

Credit History: Establishing a good credit history is important because your credit history is used to determine if you qualify for credit, and if you qualify, the interest rate you will pay. Having no credit history is better than having a poor credit rating. However, in order to establish that you are a good credit risk, you need to take steps to establish a positive credit history.

Credit Lines: Your credit score is an interesting thing. Constantly shifting and changing, the score is used by lenders to determine how much credit they should extend to you. What you may not realize is that the relationship between your lines of credit and credit score is a two-way street with each affecting the other.

Credit Monitoring: There are four credit monitoring approaches that consumers can take, either singly or in combination. The best approach to monitoring credit is the one that uses more than one. Electronic monitoring is efficient and swiftly flags suspected fraudulent activity, but direct and personal involvement on the part of the consumer helps to keep credit balances from creeping up past manageable levels.

Credit Protection: Protecting credit is about getting proactive. Taking action by enrolling in a credit protection program, regularly looking at credit reports, and taking immediate action after a theft is the key to keeping credit safe. Credit information is important for getting new loans, so protecting the information is vital.

Credit Rating: Your credit rating, also known as your FICO score or credit score, is calculated based on several factors that track your credit history. Your credit score is attached to your Social Security number and the score summarizes the data in your credit reports. FICO scores may be between 300 and 850. However, few people are at either end of the FICO spectrum. Most individuals fall somewhere between credit scores of 600 and 750.

Credit Repair: Consumers who have a poor credit score often hear about credit repair companies. With so many contradictory sources of information, it is hard to determine whether it is worth paying a repair company to fix the problem or if consumers are able to fix information personally. Determining if it is worth the cost depends on the situation and the company’s claims.

Credit Repair Scams: Credit repair scams target worried or desperate consumers who want to believe they can restore their good names. Indeed, there are ways to improve credit scores, but they take time, reliability, and effort. Paying a large fee to a third party will never accomplish any benefit.

Credit Report: A credit report is an important document that reflects an individual in a few key ways. Creditors pull up a credit report and credit score to determine if consumers are eligible for new loans, lines of credit or credit cards. Consumers are also eligible for one free credit report each year. Understanding what is within the report will make deciphering the data a little easier.

Credit Report Dispute: When you find errors on your credit report, take action. With the ability to file disputes online, there is no reason to allow errors to lower your credit score. First, obtain copies of your credit report from all three credit bureaus. You will need to have a copy of your credit report to describe the entry in error. Once you have copies of your credit report, locate the error and identify the creditor.

Credit Report Fraud Alert: Credit card fraud and identity theft are exponentially rising in frequency. One way to guard against identity theft and credit card fraud is to place a “fraud alert” on your credit report. A fraud alert will notify potential lenders that they need to further verify the identity of the person applying for credit in your name.

Credit Report Government: The government takes measures to protect consumers by getting involved in the credit industry. The regulations set by the government are designed to ensure that consumers are treated fairly and have actions available that will make it possible to correct problems that might occur. Understanding the laws and regulations set up by the government is the first part of taking action when something goes wrong.

Credit Report Help: Credit scores are often called FICO scores, named after the company that originated the idea of a standard credit rating to facilitate modern credit decisions. Fair Isaac and Company first established the formulas that determine your credit score at the top three reporting agencies – TransUnion, Experian, and Equifax. Credit scores could vary slightly among the agencies, but generally they should be fairly close.

Credit Report Information: The three major credit bureau reporting agencies keep and maintain your credit history. Transunion, Equifax, and Experian use different formats in their reporting, but the information remains the same. Identifying information retained is name, phone number, address, Social Security number, employment information, and date of birth. The credit bureaus update the identifying factors relying on the information you supply to creditors and on loan applications.

Credit Report Monitoring: Credit report monitoring is a service that is offered by several companies that seek to guard their clients against identity theft. Credit monitoring services check subscribers’ credit reports on a daily basis for any changes. Clients are immediately notified of any changes to their credit reports. In the event of identity theft, the victim is notified as soon as a negative entry is found on their credit report.

Credit Report Numbers: Three major credit companies (Experian, TransUnion, and Equifax) furnish credit scores that most lenders use to decide whether to approve loans. These companies compile information about the credit habits of millions of people. Although the companies use similar formulas, they each have their own interpretation of data.

Credit Report Online: There are several ways to get your credit report, but the fastest way is with the power of the internet. Your credit report is just a few clicks away, and you can view and print it instantly. Don’t wait days to get the report in the mail; use these tips to pull your report today.

Credit Report Questions: Credit reporting is sometimes akin to attempting to understand a foreign language you do not speak. Credit reports seem to contain cryptic information that may not make sense to many people. However, credit reporting is not a mystery. You need to understand your credit report and what information contributes to the report in order to ensure that your credit is protected.

Credit Report Reviews: Consumers need to keep up with their credit report to ensure that information is accurate and prevent identity theft or credit fraud. The problem is that determining the best websites to obtain a credit report is not always easy. A wide range of legitimate and scam websites are found online, but only a few websites are among the best available.

Credit Report Scores: The credit score on your credit report is a measure of the totality of your credit history. Your credit score provides potential lenders with information about how you handle your credit and pay your creditors. A high credit score indicates that you know how to manage your credit.

Credit Report Services: There are plenty of online sites that review and break down the differences between credit report services. These sites look at pricing, monitoring, and any unique features that separate them. Let these services use the latest technology to help you monitor and, if needed, repair your credit history.

Credit Report vs. Credit Score: Your credit score is based on your credit report data. Your credit report lists your credit history, including the history of bill payment, current accounts, and closed accounts. Three national credit bureaus create and track your credit history. Therefore, you have a credit file with three companies and you must obtain a credit report from each one because the reports from the different bureaus may differ.

Credit Report Websites: Consumers should always use caution when getting a credit report online. The best way to avoid a scam is getting the report directly from the credit agencies for a fee or using the official annualcreditreport.com website.

Credit Reporting Agencies: Credit reporting agencies are marketing companies that collect and compile personal information to formulate credit scores. All information, including bank account activity, credit applications, rental history, and bill payment history is organized into a convenient report designed to evaluate your likelihood to default on future loans and lines of credit.

Credit Score: Your credit score is the number that reflects how financially responsible you are. The number is one of the determining factors for the dollar amount of credit you receive, the rate of interest you are charged, and even whether you get a specific job. The score comes directly from the information contained on your credit report.

Credit Score Companies: The Fair Isaac Corporation score, or FICO score, is the standard credit score that is used by lending companies to determine if an individual is a good credit risk. Though other credit analytics companies publish credit scores, the FICO score is generally the most frequently used score by most lending companies and creditors.

Credit Score Ranges: Each one of the different credit bureaus reports scores differently, so the numerical score may vary somewhat between them. Nevertheless, a standard score will range between 300 and 850, with higher scores being preferable.

Credit Scoring: There are several types of credit scores available to those with interest in using an individual’s score in determining their worthiness for lending or employment, or establishing an insurance premium. The credit score that is most widely used and carries the greatest amount of influence with decision makers is the FICO score. Rather than taking into account only one or two factors that affect an individual’s creditworthiness, the FICO score considers five factors to arrive at a single credit score.

Experian: The primary difference between Experian’s VantageScore and your FICO Score is in the weight each gives to different aspects of the credit report. Both use the same information you receive on the free credit report. FICO categorizes report information in five ways while VantageScore uses six variables. There are literally dozens of scores commonly used by lenders with FICO and VantageScore being only two of the more common.

Fair and Accurate Credit Transactions Act: Created to fight identity theft, the Fair and Accurate Credit Transactions Act is an amendment to the Fair Credit Reporting Act. Put into place with the intention of protecting consumers and businesses alike from fraud, there are several ways that this act protects you.

Fair Credit Reporting Act: The Fair Credit Reporting Act (FCRA) creates complexities that have led to greater instances of identity fraud and credit repair fraud, but generally the act gives consumers basic rights that protect them from inaccurate information. Numerous companies, organizations, and agencies keep information on consumers. The FCRA ensures that people can inspect the information in their files and address inaccuracies.

Fair Debt Collection Practices Act: Enacted in 1977, the Fair Debt Collection Practices Act clearly outlines what debt collectors are and are not allowed to do when trying to collect a debt. The collection agencies know what is contained in this act, but they are counting on your ignorance. Protect yourself by learning about the important regulations contained in this legislation.

FICO Score: FICO scores are the product of calculations devised by the Fair Isaac Company in the 1980s. All those items on the credit report are fed into software, which differs somewhat between credit reporting agencies, to produce a single number between 300 and 850. A credit report from TransUnion, Equifax, or Experian is free for consumers, but seeing the actual FICO score is not.

Free Credit Report: The Federal Trade Commission (FTC) requires that the credit reporting agencies provide one free credit report each year. All American citizens are entitled to request a free annual credit report once every 12 months. By regularly checking your credit report, it is possible to catch identity theft and fraud early or correct mistakes that might impact your credit score.

Free Credit Report Band: Although many people are aware of the effects of credit, few people gave it much thought during the day. Then a company began airing musical commercials; as the catchy theme songs became stuck in people’s minds, people began to think more about their credit and the value of monitoring it. FreeCreditReport.com’s successful marketing campaign made credit scores a matter of public consciousness.

Free Credit Score : Everyone is entitled to one free annual credit report from each of the three major credit bureaus. This report will show what accounts you have open, whether any are past due and what the credit balance is of each account. All of this information is vital to assessing the health of your credit, and it can also help identify problem areas such as past-due accounts and identity theft problems.

Good Credit Score: Having a favorable credit score can earn you excellent interest rates on loans and credit cards and low premiums on automobile insurance. It can even give you a better chance of passing a background check run by a potential landlord or employer. Having a poor credit score can put you in the red because of excessive interest rates, and creditors are hesitant to provide loans to lenders with bad credit.

Improve Credit Score: Your credit score determines your availability to credit, as well as the interest rate you will pay on loans and credit cards. No matter where you are on the credit score scale, you can take steps to improve your credit score. As your credit score improves, you will qualify for lower interest rates on loans and better credit card interest rates, as well.

What is a Good Credit Score: Created using a standard mathematical algorithm, a credit score is a three-digit number that goes as high as 850 and drops into the low hundreds. An individual with low numbers is looking at higher interest rates on loans and credit cards, if not flat out denials. A good credit score promises lower rates, making buying a house or car easier.