Wednesday, July 29, 2009

Know them- Credir Report, Credit Score and ID Theft

In order to enjoy a good credit life one needs to be aware of certain terms related to the credit world. Those who have just turned 18 and wish to avail of credit cards and start their financial life should be aware of a number of terms related to credit.

Here is a brief description of some terms that matter most in while managing your finances.

Credit report: Your credit report is the most important document of your credit life. Every financial activity is contained in your credit report. Every loan that you make and every mortgage is present in the credit report. Similarly all the purchasing and the details of paying off debts and loans is present in the credit report.

The credit report is a detailed document that is updated with every credit activity you perform. The document is present in the database of the three major credit reporting bureaus, Equifax, Transunion and Experian.

Credit Score: Depending upon the details compiled in your credit report, you are allotted a credit score. The credit score is dynamic and changes with your financial dealings. Late payments have a negative effect on your credit score and cause it to drop. In order to enjoy a good credit score, you need to make sure that you maintain a good credit score in order to enjoy benefits later in your life.

A bad credit score would hamper your financial life in a number of ways. Creditors look at your credit score before accepting your applications for loans and credits. A poor credit score would require you to pay huge interests on the loans you make. On the other hand if you have a good credit score then you would need to may the lowest possible interest rates.

There are a number of things that cause your credit score to dip. You can check out for the same and get help any time.

Identity theft: Identity theft is one of the fastest growing crimes in America. It involves stealing some one's identity and using his or her credit cards thus ruining his credit life. Many people have suffered because they have fallen victims to ID theft. Make sure that you do not provide your personal information to any body over the phone or over the net unless you are completely sure.

for further assistance visit

Steps for a good 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.

Monday, July 27, 2009

An error free credit report? Here’s how

Your credit report is one of the most important documents you have when it comes to obtaining the best interest rates possible. In fact, if your credit report shows too many problems with your financial history, you may actually be turned down for loans, credit cards and even insurance. Even a seemingly small error can have a major impact on your credit score and on whether or not your loan is approved. Therefore, it is important for you to check your credit report on a regular basis and to correct errors on your report as soon as possible.

Obtaining Your Credit Report

Obtaining your credit report is actually a simple process. In fact, you are entitled to receive a free credit report once per year. In order to get your free credit report, you can simply call 877-322-8228 or visit

Once you receive your credit report, be certain to check over all of the information that it contains. This includes checking to make sure all of your credit cards and loans are listed on the report and that the credit limits and the loan amounts are properly listed. In addition, make certain your payment history is correctly listed on the report and that all of the dates are correct. It is particularly important to be certain the dates your accounts were opened are accurate, as even a difference of a year or so can dramatically affect your credit rating.

Fixing the Mistakes

If you do discover mistakes on your credit report, you only need to follow a few simple steps. First, you need to write a letter to the credit reporting agency that details the errors you have found. If you have documents to support what you are claiming, you should include copies of these documents with your letter. Be certain to keep the originals in case the duplicates become lost in the mail.

When writing your letter, be sure to clearly identify the problems you have found and to explain why you are disputing the information. Then, request that the information be removed or corrected. You should send this letter via certified mail and you should request a return receipt. This way, you have a definite timeline of when you sent the letter. This is important because the credit reporting agency has 30 days to either correct the error or to notify you that the change you have requested will not be made to your report.

If the credit reporting agency determines that a change does need to be made to your credit report, that agency will also report the change to the other two credit reporting agencies. Therefore, there is no need to report the information to all three companies. If the information does not get changed, on the other hand, you have the right to provide a short statement to be included on your report. While this may not help your credit rating, it can be beneficial because it gives your potential lender more detailed information about the situation that lead to the bad mark on your report.

As a responsible consumer, it is important for you to check your credit report once per year. Not only will this help ensure its accuracy, it can potentially save you hundreds of dollars by keeping your interest rates down.

Friday, July 24, 2009

All About Identity Theft

Identity theft is one of those crimes that can substantially ruin your financial life. Identity theft is caused when some one gains access to your personal details and social security number and uses it to steal your money by using your credit details or opening a new credit in your name. According to FTC almost 10 million American citizens are victims to identity theft every year.

In most of the cases people do not realize that their credit is being used by another person until they are denied a loan from the banks on the basis of poor credit history or when collection agencies knock their doors.

However the American states consider this to be a major crime and have passed two legislative provisions to protect identity theft.

1. Security Breach Notification: If a person’s data is lost or stolen from the various organizations that collect consumer’s information, Breach Notification requires these agencies that collect consumer’s data to alert or notify them that the data is lost or stolen. Thus the accounts and statements can be closed before any harm is done or to avoid further harm to one’s credit dealings.

2. Credit Report Security Freeze: Security Freeze allows the citizens to freeze access to their credit report so that no new accounts can be opened. One can create his own password to access his credit report at the three major credit reporting agencies. This way no one can gain access to an individual’s credit reports and no new accounts can be created unless the password is provided by the concerned person.

It is not a very difficult task to spot a credit theft. If you have been receiving credit cards that you didn’t apply for and if you get calls or letters about things you didn’t buy, it is an indication of identity theft. In some cases being served court papers or arrest warrants for things you know don’t involve you is also a sign of identity theft.

If you think that you have been a victim to identity theft then you can file a complaint with the Federal Trade Commission: Consumer Response Center

Federal Trade Commission
600 Pennsylvania Ave, NW
Washington, DC 20580
Toll-free: 1.877.FTC.HELP
TDD: 202.326.2502

Hence it is of immense importance that one goes through his or her credit report at regular intervals of time and be aware of his own credit activities to avoid identity theft. One can request for his credit report from the three major credit reporting bureaus, Experian, Equifax ® and TransUnion ® for free once in a year.

Checking credit card statements on a monthly basis is also a practice that is being encouraged a lot. I would be stating the obvious if I said that one should not give away his or her SSN easily to any organization without knowing the reason.

For more info and to order your credit report with FREE credit score please visit

Thursday, July 23, 2009

Credit Report and Credit Score

One can not deny the significance of a good credit score and it is of utmost importance to check your credit report regularly.

You credit score says a lot about your trustworthiness and helps the creditors decide the interest rates. At times you might even be denied loans if you have a bad credit score. In order to keep your financial life pleasant, you need to make sure that you do not ruin your credit score. There are a number of things that you need to keep in mind while working on your credit score.

1. Do not apply for too many credit cards in a short span of time.
2. Not paying bills on time can be fatal for your financial life.
3. Do not close old bank accounts as it shortens your credit history
4. Safeguard your self against Identity Theft.
5. Keep the balances in your credit cards low.

It is also important to check your credit report on a regular basis. At times mistakes might creep into your credit report thus reducing your credit score. Checking your credit report regularly also safeguards you against identity theft, which is one of the fastest growing crimes in America.

You can contact the three major credit bureaus to get your credit report. Once a year you can get your annual credit report for free from one of these bureaus. In case of mistakes in your credit report you need to get in touch with the concerned credit bureau and apprise them of the mistakes. For further assistance on credit reports and credit scores please visit

For more info and to order your credit report with FREE credit score please visit

Monday, July 13, 2009

Good Credit vs Bad Credit

Good credit gives you a great financial life. Credit reports are used for a number of tasks, like establishing utility accounts, purchasing a home, getting employed, etc. If you have a good credit, you will make these routine tasks easier for you. Poor credit makes it tough to open bank accounts, rent real estates, or get affordable interest rates on loans you make, while good credit makes these things a cake walk.

Favorable rates of interest describe the importance of a good credit. People having a good credit report are assumed to be more trustworthy and low interest rates are offered to them on the basis of their credit report that suggests that they have a lower credit risk. People with bad credit find it tough to qualify for low interest rates. They are considered defaulters by creditors and have to go on paying hefty interests.

Good credit is significant for those who want to apply for credit cards and lines of credit. Poor credit denies a person of further credit and low interest rates. People with good credit records get higher balance limits as compared to people with poor credit records. Getting higher balance limits allows more flexibility with a line of credit and can be extremely useful. They might just also get a waiver for annual fees.

Even phone and electric companies check credit before they open new accounts. In case of a poor credit they may deny an account or ask for an exorbitant deposit. Landlords also tend to deny rental applications if the applicant does not have a good credit history viewing them as potentially risky tenants.

There are a number of things that can affect your credit record. It is necessary to safeguard your credit record by checking your credit report at regular intervals of time. Checking your credit report on a regular basis also helps you protect identity theft and helps improve your credit score. People are also wising up to the fact that timely payments are crucial in order to repair their credit report. It is not impossible to go from a pathetic credit score to a good credit score. It takes time though but is both practicable and possible.

What does your credit report contain?

Your credit report determines your creditworthiness. It is perhaps the most significant proof of your trustworthiness. A credit report contains all your credit activities and tells the banks and creditors if your have been regular with your payments in the past.

First up, your credit report contains your personal details. Your name, address SSN, phone number, date of birth and your current and previous employers form a part of your credit report.

Then of course is the credit information. This includes your lenders and credit report and loans you have with

• Banks
• Retailers
• Credit card issuers
• Other lenders

The most important part of your credit report is public record information. This is contained in state and county court records like

• Tax liens
• Monetary judgment
• Bankruptcies

Bankruptcies stay on your credit report for as long as 10 years and other public record information form a stigma in your credit report for as long as 7 years. These make your credit score dip to the maximum.

Inquiries also go down as a big negative on your credit report. Applying for too many credit cards in a short span of time or applying for a higher credit limit may prompt inquiries. So try to avoid inquiries.

Similarly safeguard your credit against identity theft. To do this you need to check your credit report on a regular basis. Make sure you get your hands on your credit report from one of the major credit reporting bureaus.

Friday, July 3, 2009

Importance of a Good Credit Score

It is well known that your credit score affects your financial life to the maximum. Loans, mortgages, jobs and every day purchasing depends on your credit score. Here is a brief idea about how important a good credit score is.

When a person with a credit score between 720 and 850 makes a loan, he would be required to pay an interest rate of 5.922% on a $200,000 30-year fixed mortgage rate. Another person with a credit score between 675 and 699 would be required to pay an interest of 6.584% on the same loan that is $31002 more than the person with a score between 720 and 850. A consumer with a FICO score between 620 and 674 might get a 7.734% rate. This means he would be paying $55,947 more than the middle-score borrower.

When talking about a home-equity loan, a person with a credit score between 720 and 850 might be pay an interest of $190 per month on a $20,000 loan at an interest rate of 7.911%. However a person with a score between 640 and 659 would be required to pay $209 per month on the same amount at 9.486% rate of interest.

Making auto loans would also require a person with a bad credit to pay exorbitant interest rates. If a person with a credit score between 720 and 850 makes an auto loan of $20,000, then he would be required to pay $472 a month at an interest rate of 6.282%. On the other hand someone with a credit score between 660 and 689 will have to pay $496 a month with an interest of 8.844%.

Similarly insurance premiums for those with an excellent credit score are low as compared to someone with an average or bad credit rating. A person with a good credit score (over 650) may get discounts up to 15% or more. It has been noticed that people with a low credit score make more claims than those with a good credit score. This is because people with credit problems are more likely to defer the maintenance of their properties like cars and houses. So the insurance companies prefer those with a good credit score and allow them lower premiums.

A good credit score is of utmost importance. It helps you make easy loans and helps you pay lower interest rates on the various loans you make. If you have not been working on improving your credit score, it might well prove to be disastrous for you in the long run.

Know them- Credir Report, Credit Score and ID TheftSteps for a good credit reportAn error free credit report? Here’s howAll About Identity TheftCredit Report and Credit ScoreGood Credit vs Bad CreditWhat does your credit report contain?Importance of a Good Credit Score ~ - How's Your Credit? - Blog