Welcome to Your Future Success

Welcome to Your Future Success
"Every man is the archetect of his own fortune." (Click on the picture to find out)

Sunday, September 26, 2010

Credit Knowledge

Experian, Equifax, TransUnion are the three major credit bureaus in the United States.  Each bureau collects information on your accounts and payment habits from individual creditors. Some creditors report information to all three credit bureaus, while others may only report to one bureau. So, your credit files at each bureau often contain different information. It's important to check your credit files at all three bureaus regularly to ensure that all the information contained in them is accurate.

Checking your own credit report can not hur your credit score.  Personal inquiries are not included in your credit report and therefore are not part of your credit score. So when you check your own credit report, you will not be hurting your credit score.

An employer can not get a copy of your credit report without your permission.  A prospective employer can only get a copy of your credit report if you give your permission. The Fair Credit Reporting Act restricts access to your credit file for your privacy.

A bankruptcy can stay on your credit report for 10 years.  Declaring bankruptcy leaves a lasting impression on your credit report. When a Chapter 7 bankruptcy is filed, most, if not all, debts are canceled. This type of bankruptcy can stay on your report for up to 10 years. Chapter 13 bankruptcy, in which the debtor must repay part or all of the debt under a court-approved payment plan, remains on your credit report for seven years. show up on both credit reports. Since the credit bureaus only maintain files on individuals, your credit report is not impacted when you marry. As in any situation in which there is a joint account or you are an authorized user on someone else's account, the account history appears on both users credit reports.

The information used to calculate your credit score is the information that appears on your credit report the day your scoure is calculated.  Your credit score is calculated based on the information that appears on your credit report the day your score is compiled. That's why your credit score can vary greatly, depending on when it is calculated. If you recently made a large payment to a credit card, then your score will likely be higher. Or, if you used a credit card for a shopping spree last month, then your score will likely be lower. Other factors that influence your credit score include the number of inquiries from credit grantors, how long you have been credit active and your payment history.

Credit repair companies can only legally dispute inaccurate information on a credit report, which you may do yourself for free.  Credit repair companies can only legally dispute inaccurate information on a credit report, which you may do yourself for free. Companies that promise to "fix" your credit, remove negative information that is accurate, or help you start fresh with a "new" Social Security number are scams. Only inaccurate information can be removed from a credit report and you can request an investigation into items with which you disagree at no charge.

A consumer is entitled to receive a free statutory credit file disclosure from a credit reporting company after they have been denied credit and under the FACT Act, Americans will have the right to one free statutory credit file disclosure every twelve months from each of the three national credit reporting companies; residents of Georgia will be entitled two.  The Fair and Accurate Credit Transactions Act (FACT Act) allows consumers to get one free comprehensive disclosure of all of the information in their credit file from each of the three national credit reporting agencies once every twelve months through a Central Source. Consumers are also entitled to a free credit file disclosure if they: 1) have been denied credit, insurance or employment as a result of their credit report, 2) believe Identity Fraud has resulted in inaccuracies on their report, 3) will be applying for unemployment or 4) are receiving welfare assistance. The Fair Credit Reporting Act mandates that consumers who have been denied credit have the right to a free credit file disclosure.

When you marry, your credit report stays the same.  The only information on both spouses' reports are joint accounts or those for which one spouse is an authorized user same show up on both credit reports. Since the credit bureaus only maintain files on individuals, your credit report is not impacted when you marry. As in any situation in which there is a joint account or you are an authorized user on someone else's account, the account history appears on both users credit reports.

Keep this information in mind for the coming year.

Until Next Time,

Jeane' Elliott Bennett
http://www.jeaneebennett.com/

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