Tag Archives for " credit bureau "

What is My Credit Score: FICO® Score Estimator

“Wondering what your credit score is? Let the FICO Score Estimator help. Check it out below now!”

The Question

How FICO Scores Work
When you apply for credit – whether for a credit card, a car loan, or a mortgage – lenders want to know what risk they’d take by loaning money to you.

FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well.

Your 3 FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time.

Taking steps to get your FICO scores in the higher ranges can help you qualify for better rates from lenders.

Higher FICO Scores = Lower Payments
The higher your FICO® scores, the less you pay to buy on credit – no matter whether you’re getting a home loan, cell phone, a car loan, or signing up for credit cards.

You can roughly estimate your actual credit score with this free score estimator from FICO®, the most trusted name in credit scoring. Here’s how it works: Answer these ten easy questions and we’ll give you a free estimated range for your three FICO® scores.

What do you mean I might not have a score?
You won’t have a credit score unless you’re older than 18 and you’ve had a credit card in your own name for longer than six months. So, if you’re young or you pay with cash, you likely don’t have a score. Or, if you’re young and have only had a single credit card for a short period of time, you may not have a score yet either. So go ahead and answer the questions and get an idea. It’s free, it’s easy, and you don’t have to give up any personal information.

1. How many credit cards do you have?
I have never had a credit card
1
2 to 4
5 or more

2. How long ago did you get your first loan?
(i.e., auto loan, mortgage, student loan, etc.)
I have never had a loan
less than 6 months ago
between 6 months and 2 years ago
2 to 5 years ago
5 to 10 years ago
10 to 15 years ago
15 to 20 years ago
more than 20 years ago
More at FICO® Score Estimator

Still asking “What is my Credit Score?”, then watch this video:

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Credit Report Dispute: Ways to Dispute Credit Report Errors

“Want to do a credit report dispute but not sure how? Let this article help. Check it out now!”

Ways to Do a Credit Report Dispute

In the early 70’s the Fair Credit Reporting Act (hereafter “FCRA”) was enacted as a way to set guidelines regarding credit reporting industry practices, procedures and consumer protections.

That Act has evolved over time, and thanks to multiple amendments the current version gives consumers a variety of options when it comes to challenging information on their credit reports.

Those options are:

1. The Most Common Method – Direct to Credit Bureau
By far the most common way consumers challenge information on their credit report is by filing a dispute directly with one or more of the national credit reporting agencies; Equifax, Experian and TransUnion.

You can file a direct-to-bureau dispute via the credit bureaus’ websites, a letter or over the telephone.

When the credit bureaus receive your communication they are obligated by the FCRA to show the offensive item as being “in dispute.” They are also obligated to contact the furnishing party, normally a bank or collection agency, and verify the accuracy of the information in dispute.

This process cannot take longer than 30 to 45 days and if the mistake is on all three of your credit reports then you have to repeat this process–times three.

The form sent by the credit bureaus to banks and collection agencies is called an “ACDV”, or automated consumer dispute verification form. This form is normally sent electronically via a system called e-OSCAR.

2. The Not So Common Method – Direct to Furnisher
It’s not a huge secret but consumers are also allowed to file disputes directly with the party that furnished the allegedly incorrect information to the credit bureaus.

So, instead of trying to reach someone with the credit reporting agencies all you have to do is call your bank or the collection agency and let them know you are disputing the credit reporting of some item and you want it corrected.

When you file your dispute direct-to-furnisher, they are also obligated to communicate to the credit bureaus, all of them, that you are challenging the item and the alleged mistake is properly noted as being “in dispute.”

The furnisher also has the same obligation to perform an investigation. If they determine that the item is in fact incorrect, a correction must be sent to all three of the credit reporting agencies.

This process is called “carbon copy.”

The form sent by the banks and collection agencies to correct their credit reporting is called a “UDF”, or universal data form. This form is also normally sent electronically via the e-OSCAR system. More at 3 Ways to Dispute Credit Report Errors

You can also check out this video for more Credit Report Dispute tips:

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What is a Credit Bureau

“What is a Credit Bureau? Most of us are still wondering what it does and why it’s important. Let this article help. Read more now!”

Credit Bureau Definition

Credit Bureau

A credit bureau is an organization that tracks the credit histories and related information of individuals. Whenever someone applies for credit, housing, employment, or anything else that their credit history could have an impact on, their potential creditor, landlord, or employer can check the information on file. If the bureau shows less-than-satisfactory information in its report on the person, it may affect the person’s chances of receiving the credit, lease, or job. A poor credit report can also result in higher interest rates on a loan or credit card.

There are three major US credit reporting agencies: Equifax, Experian, and TransUnion. Although the three companies share information, each maintains its own report and credit score on each individual. When someone applies for a line of credit, housing, or employment, the creditor or employer may look at the report and score from all three. For this reason, if an individual is monitoring his or her credit report for fraud or false information, it is a good idea to request a copy of the report from each agency.

A credit bureau gets the information for their reports from the individuals’ creditors. For example, if someone has a line of credit with his bank, that bank will report information regularly to the credit agency — good or bad. If the individual is always on time with payments, that fact will show on the credit report; however, if the individual has been more than 30 days late on one or more payments, the report is sure to reveal that, as well.

A variety of information gets reported to each agency. They all have personal information for each person who has gotten credit or opened a bank account on file, including their name, date of birth, Social Security number, current and previous addresses, and employment history. All of this information is collected by tracking people via creditor reports and Social Security numbers.

Account information is listed on the report, including the business handling the account, the date the account was opened, the credit line limit, the current balance, and the payment history. Even if an individual closes an account or the account becomes inactive, the report will still show this information for seven to 11 years. The accounts that each bureau includes on a credit report can be anything that is credit related, such as checking and savings accounts, credit cards, loans, and leases.

Each agency also reports any inquiries made into a person’s credit report. The report will show the type of inquiry and who made it. If too many inquiries are made within a certain period of time, the person’s credit rating can be negatively affected.

A credit bureau also includes public records on an individual’s credit report, if they are deemed related to a person’s credit worthiness. For example, if a person has declared bankruptcy, he or she will not be considered reliable, and companies may be hesitant to give him or her a line of credit. Bankruptcies are included on credit reports as a result. Even unpaid child support is considered to pertain to an individual’s dependability. This sort of information typically remains on a credit report for seven years. More at What is a Credit Bureau?

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