By: James Marshall
Credit Reports - What's On Them, and How to Check Yours
Businesses in the United States buy more than two billion credit reports every year. Since there are currently fewer than 300 million people in the country, this means that the average adult has his or her credit reports examined by someone about once every other month. And yet, only a small percentage of Americans have ever laid eyes on their own credit reports. Viewing your credit reports at least twice a year is a necessity in today's electronic age, and while it may not always be free, getting access to your credit reports is much easier and less expensive than it has been at almost any time in history.
What is a Credit Report?
There are three major credit bureaus in the United States. They are Equifax, Experian, and TransUnion. These three companies are competitors, and therefore they don't share information with one another. As a result, your Equifax credit report may be significantly different from your Experian credit report, and your TransUnion report may be different still. Sometimes this is a good thing - if only one of the credit agencies reports a bad history, for example. But more often than not, it's a headache, since at least one of your credit reports is bound to have some incorrect, negative information on it.
What's On Your Credit Report?
Although each of the three credit agencies record slightly different information, the following is a basic list of what you'll find on each of your credit reports: Your name and your spouse's name. Where you live, where you work, and where you used to live (and used to work). Your social security number, phone number, and birth date. A list of your credit accounts and when you've paid your bills - on time, late, late by more than 30 days, late by more than 60 days, etc. How much total credit you have available. Whether and to whom you've made an application for credit in the past six months. Which companies have requested and obtained your credit report. And finally, dreaded "public records" - bankruptcies, foreclosures, repossessions, court judgments, convictions, and tax liens.
How Long Does Information Stay On Your Credit Report?
Positive information stays on your credit report indefinitely, which is a good thing. Most negative information should be deleted after seven years, with the exception of certain types of bankruptcy, which can stay on your report for ten years. If one of your credit reports is missing positive information or contains negative information that's older than seven years, contact the appropriate credit bureau. Their website addresses are listed at the end of this article.
How To Obtain Copies of Your Credit Reports
Usually, you may have to pay for your credit reports. The fees that the credit bureaus can charge vary by state, but the maximum is $9.50. You can find out more information by visiting the individual sites of the three bureaus: equifax.com, experian.com, and transunion.com.
So go ahead and do it now! Find out what your score is, it could make or break your financial future.Sincerely,Jameshttp://www.CC-Yes.com
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9/4/07
How Credit Works
By: James Marshall
In order to acquire and maintain access to credit, one must have a working understanding of how credit works - namely, how credit scores are established and tracked by the three major credit bureaus.
Inquiry Myths
As discussed in "The Larry Rule," people who repetitively apply for credit are viewed with suspicion by the credit agencies. However, there are some caveats to the Larry Rule. First, multiple inquiries for the same purpose - shopping for the best deal on a home loan, for example - count as just one inquiry. Secondly, it is never harmful for you to check your own credit report - only applications for credit (not mere inquiries) count against you. Third, and most importantly, inquiry data is only kept on file for six months. So in other words, the Larry Rule has a six month statute of limitations.
The exceptions to the Larry Rule outlined above are all good news for consumers. Unfortunately, not everything contained in this article is so pleasant. For example, you may believe that your permission must be given in order for someone to check your credit. Unfortunately, this is a myth, except where it applies to employers. A potential creditor, an insurance company, a landlord, or virtually anyone else can access your credit report without your permission.
Credit Repair Myths
Many people believe that paying off debts immediately improves their credit score. Unfortunately, this one of many credit repair myths. While a paid debt is marginally preferable to an unpaid liability, the truth is that missed payments and past delinquencies are still ugly marks on your credit report, and simply paying off an old debt may not improve your credit score by even one point.The good news is that late payment and old delinquency information will disappear after seven years. But the idea that all negative information is wiped out after seven years is another credit repair myth. The truth is that Chapter 7 bankruptcy stays on your record for 10 years, and unpaid judgments can potentially remain on your credit report forever.
Another popular myth is that the act of closing your credit cards is good for your credit score. This myth is perhaps the most painful, as many people who close open accounts have difficulty opening new ones in the future. The truth is that open, active, and up-to-date accounts help your credit. Unused credit capacity (i.e. available credit) is a positive factor in determining your credit score.
Credit Counseling Myths
Credit counselors and debt management services have received a bad name over the years, and much of the negative publicity has been deserved. It is, for example, a myth that you can simply pay a company to "fix your credit." Any firm that claims to perform this hands-off service should be avoided.But there are good, reputable credit counseling and debt management services who truly do help people. And despite the myth that using such a service inevitably hurts your credit, the truth is that many of these companies are able to reduce their clients' debts and maintain or improve their credit scores at the same time. When considering a credit counselor, look for firms that have these dual goals, not companies that focus solely lowering your liabilities. Sincerely,Jameshttp://www.CC-YES.com
http://www.articlecube.com
In order to acquire and maintain access to credit, one must have a working understanding of how credit works - namely, how credit scores are established and tracked by the three major credit bureaus.
Inquiry Myths
As discussed in "The Larry Rule," people who repetitively apply for credit are viewed with suspicion by the credit agencies. However, there are some caveats to the Larry Rule. First, multiple inquiries for the same purpose - shopping for the best deal on a home loan, for example - count as just one inquiry. Secondly, it is never harmful for you to check your own credit report - only applications for credit (not mere inquiries) count against you. Third, and most importantly, inquiry data is only kept on file for six months. So in other words, the Larry Rule has a six month statute of limitations.
The exceptions to the Larry Rule outlined above are all good news for consumers. Unfortunately, not everything contained in this article is so pleasant. For example, you may believe that your permission must be given in order for someone to check your credit. Unfortunately, this is a myth, except where it applies to employers. A potential creditor, an insurance company, a landlord, or virtually anyone else can access your credit report without your permission.
Credit Repair Myths
Many people believe that paying off debts immediately improves their credit score. Unfortunately, this one of many credit repair myths. While a paid debt is marginally preferable to an unpaid liability, the truth is that missed payments and past delinquencies are still ugly marks on your credit report, and simply paying off an old debt may not improve your credit score by even one point.The good news is that late payment and old delinquency information will disappear after seven years. But the idea that all negative information is wiped out after seven years is another credit repair myth. The truth is that Chapter 7 bankruptcy stays on your record for 10 years, and unpaid judgments can potentially remain on your credit report forever.
Another popular myth is that the act of closing your credit cards is good for your credit score. This myth is perhaps the most painful, as many people who close open accounts have difficulty opening new ones in the future. The truth is that open, active, and up-to-date accounts help your credit. Unused credit capacity (i.e. available credit) is a positive factor in determining your credit score.
Credit Counseling Myths
Credit counselors and debt management services have received a bad name over the years, and much of the negative publicity has been deserved. It is, for example, a myth that you can simply pay a company to "fix your credit." Any firm that claims to perform this hands-off service should be avoided.But there are good, reputable credit counseling and debt management services who truly do help people. And despite the myth that using such a service inevitably hurts your credit, the truth is that many of these companies are able to reduce their clients' debts and maintain or improve their credit scores at the same time. When considering a credit counselor, look for firms that have these dual goals, not companies that focus solely lowering your liabilities. Sincerely,Jameshttp://www.CC-YES.com
http://www.articlecube.com
Loans for the Contemporary Borrower
By: AjeetKhurana
What would we do without our loan providers? The world has changed so much that our attitudes towards getting loans is no longer the same. We no longer look at loan taking from a negative point of view. Instead, we encourage our friends and relatives to apply for various kinds of loans when the going gets tough. It is very sensible to procure a loan from a financial institution. At least it does not leave us indebted to our loved ones.
Moreover, the available rates for loans are beginning to appeal to all kinds of loan seekers. It would be folly to not even consider securing a loan from the loan provider.One of the most popular types of personal loans is the secured loan. Of course, this type of a loan is limited to only homeowners and people who own other assets that can be used as collateral. But if one does own a suitable asset, a secured loan offers a ready solution. This is because secured loans tend to offer lower rates of interest.
Depending on the value of your asset, the loan might provide you with a larger amount as your loan. However, not everything can be perfect with the secured loan. The risk of defaulting may be almost as strong as with any other loan, while the risk is greater. If one is likely to default on payments, the house (or other asset) that had been used as collateral, would be lost.People who are not willing to risk their houses generally go in for unsecured loans. The only disadvantage of unsecured loans as against secured ones is that the former can never compare when it comes to prices.
Secured loans certainly are more affordable because lenders are more willing to take the risk of lower prices given that they have collateral. However, this should not influence you against unsecured loans.With the rise of online loans, getting unsecured loans has never been easier. The various online lenders try to outdo their nearest competitors by offering really low rates of interest and easy repayment options. Moreover, the amount of documentation required in such a case is very low compared to other kinds of loans. All that one has to do to procure a secured loan is be applicable for the loan, furnish some basic documents and fill in the application form. It really has become easier to secure an unsecured loan these days. Look around and you might come up trumps with some attractively-priced loans.
http://www.articlecube.com
What would we do without our loan providers? The world has changed so much that our attitudes towards getting loans is no longer the same. We no longer look at loan taking from a negative point of view. Instead, we encourage our friends and relatives to apply for various kinds of loans when the going gets tough. It is very sensible to procure a loan from a financial institution. At least it does not leave us indebted to our loved ones.
Moreover, the available rates for loans are beginning to appeal to all kinds of loan seekers. It would be folly to not even consider securing a loan from the loan provider.One of the most popular types of personal loans is the secured loan. Of course, this type of a loan is limited to only homeowners and people who own other assets that can be used as collateral. But if one does own a suitable asset, a secured loan offers a ready solution. This is because secured loans tend to offer lower rates of interest.
Depending on the value of your asset, the loan might provide you with a larger amount as your loan. However, not everything can be perfect with the secured loan. The risk of defaulting may be almost as strong as with any other loan, while the risk is greater. If one is likely to default on payments, the house (or other asset) that had been used as collateral, would be lost.People who are not willing to risk their houses generally go in for unsecured loans. The only disadvantage of unsecured loans as against secured ones is that the former can never compare when it comes to prices.
Secured loans certainly are more affordable because lenders are more willing to take the risk of lower prices given that they have collateral. However, this should not influence you against unsecured loans.With the rise of online loans, getting unsecured loans has never been easier. The various online lenders try to outdo their nearest competitors by offering really low rates of interest and easy repayment options. Moreover, the amount of documentation required in such a case is very low compared to other kinds of loans. All that one has to do to procure a secured loan is be applicable for the loan, furnish some basic documents and fill in the application form. It really has become easier to secure an unsecured loan these days. Look around and you might come up trumps with some attractively-priced loans.
http://www.articlecube.com
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