Your credit score ranking and report is important because businesses rely on that information in your credit report to help them decide whether to approve your loan, at what interest rate and what terms.
There are three major credit report agencies in the US today.
Equifax Credit Information Services, Inc.
, Experian, and Trans Union that collect the information, calculate scores and prepare reports.
The Federal Trade Commission mandated by law that everybody is allowed access to these reports annually.
The place to get your FREE credit report is the Annual Credit Report Request Service.
All these companies provide a wealth of information and resources on their websites to help you keep your report accurate.
The websites explain how to read and analyze the reports and how to contact them, if they contain information that you want to dispute.
Your credit report contains the following information: o Personal information, including your name, Social Security number, date of birth, addresses where currently live and where you lived in the past, and most recent employment history.
o Public record information, such as tax liens, judgments, child support obligations, bankruptcies, and other official information.
o Collection activity for accounts that have been forwarded to collection agencies for handling.
o All your credit accounts data, including open and closed accounts.
Whom you owe, how much you owe, type of account, whether the account is joint or just in your name, your credit limit, your monthly payments, and whether or not you pay on time.
o A list of the companies that have requested your credit file to review it for the purpose of granting you credit.
o An optional message from you, in which you describe your part of the story and present your reasoning for any negative listing on your report.
o Your credit score ranking.
The score is not really a part of your credit report, but you have to request it specifically.
Your credit report does NOT include data on your checking or savings accounts, brokerage accounts, retirement accounts, or similar financial records.
A person's credit score may range on a scale from approximately 300 to 850.
The higher one's score, the better.
An average score is around 720, scores higher than 725 are considered good while those which are below 600 are considered poor.
Scores that range from 750 to 850 are excellent Your credit score ranking is calculated based on: 35% - Credit Payment history.
Whether you pay your bills on time or late, whether you have a bankruptcy or bill in collection.
30% - Total debt-to-credit ratio.
Your debt to credit ratio is taken into account.
If it's too high, the score is lower.
15% - Length of your credit history.
If your accounts are all very new, it's a minus.
10% - New requests for credit.
If you have filed many new applications for credit, your score will go down.
10% - Types of Accounts you have.
If you borrow from finance companies or pay day advance companies, the score goes down.
The Fair Credit Reporting Act gives consumers the right to review and challenge the items in their reports.
Challenge every item you don't agree with.
When challenging items in the report, it's best to do it in writing, via registered or certified mail, and keep a copy of the letter.
Credit agencies are required by law to prove the accuracy of the information within 30 days.
If they are unable to do so, the item must be removed.
There are three major credit report agencies in the US today.
Equifax Credit Information Services, Inc.
, Experian, and Trans Union that collect the information, calculate scores and prepare reports.
The Federal Trade Commission mandated by law that everybody is allowed access to these reports annually.
The place to get your FREE credit report is the Annual Credit Report Request Service.
All these companies provide a wealth of information and resources on their websites to help you keep your report accurate.
The websites explain how to read and analyze the reports and how to contact them, if they contain information that you want to dispute.
Your credit report contains the following information: o Personal information, including your name, Social Security number, date of birth, addresses where currently live and where you lived in the past, and most recent employment history.
o Public record information, such as tax liens, judgments, child support obligations, bankruptcies, and other official information.
o Collection activity for accounts that have been forwarded to collection agencies for handling.
o All your credit accounts data, including open and closed accounts.
Whom you owe, how much you owe, type of account, whether the account is joint or just in your name, your credit limit, your monthly payments, and whether or not you pay on time.
o A list of the companies that have requested your credit file to review it for the purpose of granting you credit.
o An optional message from you, in which you describe your part of the story and present your reasoning for any negative listing on your report.
o Your credit score ranking.
The score is not really a part of your credit report, but you have to request it specifically.
Your credit report does NOT include data on your checking or savings accounts, brokerage accounts, retirement accounts, or similar financial records.
A person's credit score may range on a scale from approximately 300 to 850.
The higher one's score, the better.
An average score is around 720, scores higher than 725 are considered good while those which are below 600 are considered poor.
Scores that range from 750 to 850 are excellent Your credit score ranking is calculated based on: 35% - Credit Payment history.
Whether you pay your bills on time or late, whether you have a bankruptcy or bill in collection.
30% - Total debt-to-credit ratio.
Your debt to credit ratio is taken into account.
If it's too high, the score is lower.
15% - Length of your credit history.
If your accounts are all very new, it's a minus.
10% - New requests for credit.
If you have filed many new applications for credit, your score will go down.
10% - Types of Accounts you have.
If you borrow from finance companies or pay day advance companies, the score goes down.
The Fair Credit Reporting Act gives consumers the right to review and challenge the items in their reports.
Challenge every item you don't agree with.
When challenging items in the report, it's best to do it in writing, via registered or certified mail, and keep a copy of the letter.
Credit agencies are required by law to prove the accuracy of the information within 30 days.
If they are unable to do so, the item must be removed.
SHARE
