What Makes up my Credit Report?
Many of us may not know our credit score, some may not even be aware of a credit score, that is until they attempt to apply for credit of some sort, be it a credit card, mortgage or apartment rental. To most, they view our credit score as a one dimensional number, nothing more, hence the reason it is so important for us to become more aware of what our credit score is. People see our credit score as an indication of who we are as people. Frankly, I don't feel that I should be judged for not having paid a bi during my college years, but unless we become proactive regarding our credit report, that is how it will be.
Let's consider the elements that make up our credit report and ultimately decided our credit score. The first factor is payment history.
Basically do you pay your bills on time. The second factor they look at is your outstanding debt. How much do you owe and to whom do you owe it?
The third factor is length of credit history. I feel this category is very biased against young people trying to establish credit. This category leaves them little to no way to get around, they are only so old, therefore could only have a credit history so long, right? We'll get into that later.
Lastly they look at recent inquiries made by different credit companies be it credit cards, mortgages, etc. and what types of credit you have, credit cards, auto loans, fixed or revolving accounts.
Now many of us may look at these categories and think that, for the most part, the factors are out of our control, unable to be manipulated with, but that is untrue! Let's look more at each element of your credit report. The first thing we mentioned was payment history. Now this is somewhat straight forward, but many times they may have misinformation or information that is all together untrue! This is why you should always be aware of what is on your credit report, so that you can make sure it is a true representation of you.
Secondly is your outstanding debt, this factor obviously is something you need to work on yourself to get the debt down, never pay only minimums on your credit cards, if you can help it. Obviously certain circumstances do arise that make this impossible at times, but you need to become more aware of spending in these times. Loan companies like mortgages, and other types of insurance will look at what is known as your debt to income ration, the ideal ratio is 35%. That means your debt should only make up 35% of your total income you bring in.
The third factor is credit history, the somewhat biased factor. Now I said this is something that you can't get around, but you can lengthen your credit history at least how it appears on you credit report.
How? By asking an older person with good great standing and a longer credit history to add you to one of their accounts as a user on their account, It will appear on your credit report as you having that credit card for as long as the older person has had that account open. Pretty tricky huh?
After looking at this information on your credit report you may find some errors, misreported information or negative items on your report and take the initiative to fix your credit report. This may seem like an overwhelming task but it really isn't. If you try to just contact a credit agency they will most likely give you the run around unless you know what you are doing, the best ways to negotiate with them and probably most importantly, what your rights are. There are many resources out there to help you effectively negotiate with credit agencies and you should take advantage of others experience and expertise in this area.
One site, www.creditrepairplan.com helps to take the confusion and overwhelming aspects of this process away. They help give you a calendar to follow, sample letters to get effective responses from creditors and so much more. They show you how to not get your accounts red flagged and cause you an up hill battle to get anything removed.
Your credit report is something that many may not even think about until they need credit. Take the steps now to fix your credit report and in the end, when you really need credit, you will save yourself with lower rates.
Good luck and please, look at your credit report today and make it a true representation of you
Kimberly has been involved in the financial industry for over a decade. She has taken the knowledge she has gained and launched a campaign to help inform consumers about different financial topics.Get Your Annual Free Credit Report ? Why Pay For It?
You can get an annual free credit report from any of the three major credit bureaus. If you have ever had credit, then there is a report on your borrowing and repaying at one of these bureaus ? maybe all three. The Fair Credit Reporting Act is a law saying that every person is entitled to receive one annual free credit report once every twelve months from the credit bureaus.
Annual credit reports are very important because they contain all of the information about your credit history ? not just for the past year, but for at least 7 years. When you request an annual free credit report, the credit bureau is not allowed to charge you for the first report.
However, if you request more than one report, then you have to pay for the others.
There are many sites on the Internet that will charge you for a credit report. Therefore it is important to know that you do not have to pay for this service. By analyzing your annual free credit report once a year...
Credit report > Get Your Annual Free Credit Report ? Why Pay For It?
First Credit Card Hazards
It seems like every time I check my mail there is at least one or two pre-approved credit card applications. I'm sure you get them, too. The thing is, you can have terrible credit and still they flood in. Beware if you just filed bankruptcy because you will get more of them then you know what to do with!Credit card debt is all too easy to get into--over and over again. We don't feel like we are spending real money until the bill comes, and then it's too late.
The credit card companies know how to make it very tempting to fall back on any good habits we've created and just spend away. It's hard to get away from, but we have to resist temptation.When establishing good credit, one of the things we're told to do is to get a credit card and then use it to spend wisely. Experts advise us to pay our bills on time and not to exceed the credit limit. However, no one really talks to us when we get that first card about how easily and quickly we hit that limit, or how easy it is to miss...
First Credit Card Hazards
Credit report > First Credit Card Hazards
Bad Credit Report Repair
Every aspect of your life can be adversely affected by a bad credit report.
Having a low credit score means you will not qualify for low interest credit cards= or for car and mortgage loans. However, getting out of debt and fixing your damaged credit report is not as hard as you might think. You may be able to do so without the assistance of credit counselors or money managers who will try to take more money from you with their debt consolidation plans.
The temptation to seek the services of credit repair companies is very strong to those with bad credit. They way they advertise can look very promising for those who are desperate enough to need their service.
However, everything they can do for you to repair your credit you can do yourself for little or no cost.
You do not need to pay their fees to fix your credit report.
Depending on the accuracy of the negative information on your credit report, there are easy steps you can follow...
Credit report > Bad Credit Report Repair
First Credit Card Hazards
It seems like every time I check my mail there is at least one or two pre-approved credit card applications. I'm sure you get them, too. The thing is, you can have terrible credit and still they flood in. Beware if you just filed bankruptcy because you will get more of them then you know what to do with!Credit card debt is all too easy to get into--over and over again. We don't feel like we are spending real money until the bill comes, and then it's too late.
The credit card companies know how to make it very tempting to fall back on any good habits we've created and just spend away. It's hard to get away from, but we have to resist temptation.When establishing good credit, one of the things we're told to do is to get a credit card and then use it to spend wisely. Experts advise us to pay our bills on time and not to exceed the credit limit. However, no one really talks to us when we get that first card about how easily and quickly we hit that limit, or how easy it is to miss...
First Credit Card Hazards
Credit report > First Credit Card Hazards
A Guide To Free Credit Score
The credit score is an indication of a person's financial creditworthiness. It is used to verify whether the person qualifies for a loan, or other credit, based on whether he has repaid his last loan satisfactorily. A credit score is used by banks and other lending companies for estimating how risky the borrower is. It helps them to know how large a loan can be given and at what rate of interest. In other words, a credit report is a reflection of the past credit history of an individual.
In the US, the credit score is based on the FICO (Fair Isaac Corporation) score that is calculated using mathematical and statistical techniques. There are also other versions of calculating credit scores such as the kind that Beacon and Empirica use. A FICO score is based on various factors including: punctuality of payment in the past, capacity used (ratio of current revolving debt to total available revolving credit), length of credit history, types of credits used and recent...
Credit report > A Guide To Free Credit Score
A Summary of the Fair Credit Reporting Act
This summary of the Fair Credit Reporting Act will explain what you can legally do if you want to repair your own credit report. No matter what you hear, you can dispute credit information on your credit report if you understand the legal rights you have under this law. The Federal Fair Credit Reporting Act was enacted by the United States Congress in 1971. In summary, it says that the credit bureaus must investigate a consumer dispute if they want to challenge credit information on his or her credit report. It also states that credit bureaus are required to complete the investigation within a 30 day period.
If the credit bureau finds that the disputed information is inaccurate or cannot be verified, they must promptly delete that information. But there are some cases when a consumer dispute can be ignored by the credit bureaus. If you challenge a negative credit listing on the basis of things like health problems, divorce or job loss, the credit bureaus are entitled to ignore...
A Summary of the Fair Credit Reporting Act
Credit report > A Summary of the Fair Credit Reporting Act
Credit report What Makes up my Credit Report?
Electrical Safety: Rules of Thumb
A key to electrical safety is ensuring that workers are qualified to use electrical equipment.Qualified workers are those who are trained; authorized to work on or around energized "live" electrical parts, including overhead power lines; and who implement lockout/tagout and other safety procedures.Safety.BLR.com offers these basic rules for electrical safety: 1) Use insulated tools and PPE when working around electricity; 2) Be careful of live parts in "blind" areas; 3) Stay at least 10 feet away...
Credit report What Makes up my Credit Report? ladders
Credit report > Electrical Safety: Rules of Thumb
Credit report What Makes up my Credit Report? potty training
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