The Key Factors that Determine Your Credit Score

1. Paying your Bills
   The most important factor is how you’ve paid your bills in the past, placing the most emphasis on recent activity. Paying all your bills on time is good, paying them late on a steady basis is bad. Having accounts that were sent to collections is worse. Declaring bankruptcy is worst.

2. Amount of money you owe and the amount of available credit
   The second most important area is your outstanding debt which means how much money you owe on credit cards, car loans, mortgages, home equity lines, etc. Also considered is the amount of credit you have available. If you hold possession of 15 credit cards that have a $10,000 credit limit, that’s $150,000 of available credit. People who have a lot of credit available tend to use it, which makes them a less attractive credit risk.

3. Length of credit risk
   The third of factor is the length of your credit history. The longer you’ve had credit, the more points you get.

4. Mix of credit
   The best scores will have a mix of both revolving credit, such as credit cards, and installment credits such as mortgages and car loans.

5. New credit applications
   The final category is your interest in new credit, how many credit applications you’re filling out. The model compensates for people who are rate shopping for the best mortgage or car loan rates. The only time shopping hurts your score, is when you have previous recent credit stumbles, such as late payments or bills sent to collections

For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Credit Related Facts and Figures

• 79% of all credit reports contain mistakes
• 54% of all credit reports contain personal information that is long outdated, belongs to a stranger, or is otherwise incorrect
• 30% of all credit reports contain accounts that are closed by the consumer but continue to be reported as open
• 25% of all credit reports contain errors serious enough to result in the outright denial of credit

Source: Crednology, Inc - The necessity for fair and accurate credit reporting from the three major credit reporting agencies: Equifax, Transunion, and Experian.- 24/7 Online Access http://www.crednology.com

For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Three Easy Steps To A Happy Credit Report

Maintaining a Healthy Status

During the moving process it’s very convenient to use credit for everything from your home loan to your furniture financing to those fluffy new towels. While you’re busy filling out application after application, inquiries are being added to your credit history! Too many inquiries can lower your credit score and prevent you from obtaining future credit at the best rates possible. By following these three simple steps, both you and your credit report can emerge from the moving process in a healthy state: Watch out for department store credit card offers Department stores love to promote their store cards. Oftentimes, a discount is offered if you apply for a card at the time of purchase. Don’t forget--when you apply for their card an inquiry will be placed on your credit report. And, if you qualify for the card you will have another revolving account on your credit report. For some, another revolving account won’t hurt their credit, and might even help it. But if you have too many revolving accounts another card could negatively impact your credit standing. Beware of "piggy-back" offers Retail stores have been known to place “piggy-back” offers on their credit applications. These are typically an offer for another credit card, in addition to the regular store card. To tempt you to apply for the additional card the store will usually have a special promotion, such as a store gift certificate. A Lesson from Robert Robert, a 25-year old software engineer, applied for an electronics department store card while he was purchasing a stereo for his new apartment. There was an offer on the application to receive a $25 store gift certificate if he also applied for a bank credit card. “All I had to do was sign another line on the form and I applied for the card and got the gift certificate,” said Robert, “but I didn’t think about what another credit card would do to my credit.” Remember that if you’re approved for both cards, two new accounts will be added to your credit report. Take care when shopping around for mortgage rates While it’s a good idea to shop around for the best mortgage rate you can find, keep in mind that lenders will check your credit before they can decide on your loan terms. This credit check will place an inquiry on your credit report. Many scoring models combine all mortgage lender inquiries within a 30-day period into one inquiry. So, try to limit your shopping time to 30 days. Moving to a new home is an exciting event, and your credit plays a major role in the moving process. With a little care and preparation you can ensure that your move is a credit-healthy experience.

Article source - http://byownermls.moving.com/Mortgage_and_Finance/MAI_Article/Happy_Credit/

For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Tips for Avoiding Credit Repair Scams

• No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods.

• Credit repair services can’t ask for payment until they’ve kept their promises. Federal law also requires credit repair services to give you a explanation of your legal rights, a detailed written contract, and three days to cancel (this applies to for-profit services, not to nonprofit organizations, banks and credit unions, or the creditors themselves)

• Be cautious about emails for credit services. Many unsolicited emails are fraudulent.
  

• You can correct mistakes on your credit report yourself. If you were recently denied credit because of information in your credit report, you have the right to request a free copy. Otherwise there is a small fee, unless your state law provides for one free report a year. It doesn’t cost anything to question or dispute items in your report. Follow the instructions provided by the credit bureau.
  

• You can add an explanation to your report. If there is a good reason why you weren’t able to pay bills on time (job loss, sudden illness, etc.) or you refused to pay for something because of a legitimate dispute, give the credit bureau a short statement to include in your file.

• Know that you can’t create a second credit file. Fraudulent companies sometimes offer to provide consumers with different tax identification or social security numbers in order to create a new credit file. This practice, called “file segregation,” is illegal, and it doesn’t work.

• If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost. To find the nearest CCCS office, call toll-free, 800-388-2227, or go to www.nfcc.org.

Information and tips from Internet Fraud Watch - http://www.fraud.org

For more info and to order your credit report with FREE credit score please visit www.reliacredit.com