October « 2009 « compare credit report – transunion experian equifax

October 28, 2009

Are All Free Credit Report Offers Created Equal?

Filed under: Finance — Tags: Apartment Complexes, Better Your Chances, Crazy Ads, Credit Equifax, Credit Monitoring, Equifax, Free Credit Report, Freecreditreport Com, Front Man, Good Question, Identity Theft Protection, Insurance Companies, Pirate Hat, Playing The Guitar, Transunion — admin @ 3:28 pm

John Rasor asked:

ntly searched for my free credit report on line and found that there are more than a few programs out there offering it. What i did not know were the differences between them. We’ve all seen the attention grabbing commercials with the guy in the pirate hat, playing the guitar, driving the jalope. “Becuase is credit was wacked, now he’s driving off the lot in a used sub compact.” I’m referring to the freecreditreport.com ads. A few others have surfaced with Ben Stein as the front man but nothing tops those crazy ads we just mentioned.

What’s in my free credit report? Thats a good question because not all of these offers are created equal. We found the top eight credit monitoring and free credit report offers and here’s the skinny. Only two of the eight actually delivered all three of my credit scores from Equifax, Experian, and Transunion. The other six only offered one score from one of the three.

Why is it important to know all three credit scores? Banks, Insurance companies, Mortgage Companies, Apartment Complexes, and even potential employers are looking at all three of your credit scores to determine your risk. The higher your scores the better your chances are of being approved for that loan and the lower interest you will be charged. The result can be astronomical when you amortize a home loan over 30 years. Imagine being turned down for a job becuase one of your three credit scores were low due to errors on your credit report.

All of the offers came with comparable identity theft protection and thats the catch here. Havent your heard the phrase “nothing in life is free” Well its partly true here in that when you enroll in the identity theft protection and credit monitoring you get your free credit report in return. Identity theft is the fastest growing crime in the world with well over ten million cases reported last year. There is a very good chance that everyone will be affected by some sort of identity theft sooner or later. Thanks to credit protection i was refunded an $800 charge that someone managed to put on my credit card at a department store. The case was cut and dry as I was in Mexico while someone was using a phony credit card with my information in Ft. Worth, Texas. The cost for identity protection is very minimal considering the circumstances and consequences of having your identity stolen. $7.50 per month on the low side to $14.99 for the triple score offers and premium credit monitoring. Check out multiple offers and find out which one is the best for you. Are you protected?

Leonard

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October 25, 2009

Do you Know the Score on your Credit Report

Filed under: Finance — Tags: Ball Game, Credit Card Bills, Credit Card Issuer, Credit Privileges, Credit Report, Embarrassment, Equifax, Lenders, Major Credit Reporting Agencies, Mortgage, People, Public Spotlight, Reflection, Score Game, Three Major Credit Reporting Agencies — admin @ 7:52 pm

Jon Arnold asked:

Even some celebrities get their credit card declined sometimes, which is embarrassing for them since they are always in the public spotlight, but that does not mean that this is any less embarrassing when it happens to us when we go to pay for something. Research has shown that in the last six month, more than 4 million credit card bills have missed their payment dates.

It should be obvious that if you have been granted credit privileges with a credit card issuer, you need to make the payments every month on time, and not doing so will lead to more serious problems and embarrassment for you. But one question that people may have is why do they get turned down for credit in the first place?

You know the score at the ball game but are you equally familiar with your credit score? If not, don’t be alarmed since most people do not. But you need to know that being very aware of your credit score is much more important than knowing the score at last night’s ball game.

If you have been turned down for a credit card, a loan, or a mortgage, the reason is almost certainly due to your credit score. This is a number that is calculated by the credit reporting agencies that is a reflection of how well and how timely you pay your bills every month. It is a historical number, so it reflects trends. If you missed a couple of payments a few years ago but have been on time since, that will not do nearly as much damage as if you have starting missing payments over the past few recent months.

This credit score is used by the lender to determine if you are too high of a risk to issue credit to. One of the interesting things to note here is that of the three major credit reporting agencies, which are Experian, Equifax, and TransUnion, each of them has calculated a different credit score for you. That is because some lenders report to one of them and some report to another, so none of the three probably have a complete and true picture of your credit history.

Your credit score will be calculated low if it shows that you have a record of late payments, but if all your payments are up to date and you have a consistent record of paying on time, your score should be higher. More serious problems, such as a court judgment or a bankruptcy will also tend to lower your credit score, as well as being a huge red flag to the potential lender.

Other factors involved in computing your credit score are how long you have lived at your current address, how long you have been at the same job or with, as well as how close to your credit limit you typically keep your credit cards at. People who own their homes instead of renting typically get a higher score too.

If you have had credit for many years as opposed to only having a year or two of credit history, that counts in your favor. But if you have too many accounts open, compared to your income level, that counts against you, where the theory is that you could go out and charge those accounts to the max, which would be a higher risk for them in opening yet another account.

The biggest problem with your credit score, and most consumers are not aware of this, is that there is a strong possibility that your credit report contains errors. Perhaps information was reported to the credit bureau incorrectly. For this reason, you should get a copy of your credit report from each agency at least annually, and if you discover errors, you need to dispute the item so it will be removed from your credit report, and will likely cause your credit score to be calculated higher.

Katherine

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October 14, 2009

Get Your Credit Report

Filed under: Advice — Tags: 1111, Buying A House, Contact, Credit Accounts, Credit Bureaus, Credit Report, Discrepancies, Equifax, Fico Credit Scores, Fico Scores, Lenders, Loans, Monkey Wrench, Trans Union, Wrench In The Works — admin @ 12:11 pm

Brad Stroh asked:

Get Your Credit Report & Analysis

It is very important to get your credit report and analysis. Why is this important? For one thing, if you’re thinking about buying a house or applying for credit for any other big purchase, you’ll need a clean credit report, and it’s always best to get your credit report and analysis before your lender does. This will give you an opportunity to clean up any discrepancies or errors, which are fairly common, and which can throw a monkey wrench in the works if not resolved.

Ideally, you should get your credit report and analysis once a year with each of the three credit bureaus:

• Bills can get them all – http://www.bills.com/creditreport

• Equifax – (800) 685-1111, http://www.equifax.com

• Trans Union – (800) 888-4213, http://www.transunion.com; and

• Experian (888) 397-3742, http://www.experian.com

You’re entitled by law to get your credit report and analysis for free from each of these three credit bureaus once a year. You can get all three at once or spread them out over the year. If you get your credit report and analysis more frequently than that, each report will cost no more than around $10 and in some states considerably less.

If you’ve been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get your credit report and analysis free of charge. Lenders are required by law to notify you of this right if they deny you credit.

When you get your credit report and analysis, review them carefully to make sure all the loans and credit accounts listed really belong to you, and that all the accounts listed as open are actually current loans or balances. If a loan you’ve paid off or a credit card that was cancelled is still listed as open, contact the credit bureau and ask for your credit report to be corrected.

What Is the Range of Possible FICO Credit Scores and What Do They Mean?

FICO credit scores range between 300 and 850. Ratings are as follows:

~ Excellent: Over 750

~ Very Good: 720 or more

~ Acceptable: 660 to 720

~ Uncertain: 620 to 660

~ Risky: less than 620

How Is My FICO Credit Score Calculated?

The formula used to calculate your FICO credit score includes information based on several factors:

~ 35% on your payment history

~ 30% on the amount you currently owe lenders

~ 15% on the length of your credit history

~ 10% on the number of new credit accounts you’ve opened or applied for (fewer is better)

~ 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

In general, when people talk about “your credit score,” they’re talking about your current FICO score. But in fact there are three different FICO scores developed by Fair Isaac—one at each of the three main US credit reporting agencies. And these scores have different names.

WILL YOUR SCORES BE DIFFERENT?

FICO credit scores range from about 300 to 850. It’s important to get your credit report and analysis so you can understand what your FICO score is. Fair Isaac makes the scores as consistent as possible between the three credit reporting agencies. If your information were exactly identical at all three credit reporting agencies, your scores from all three would be within a few points of each other. But here’s why your FICO scores may in fact be different at the three credit reporting agencies. The way lenders and other businesses report information to the credit reporting agencies sometimes results in different information being in your credit report at the three agencies. The agencies may also report the same information in different ways. Even small differences in the information at the three credit reporting agencies can affect your scores. Since lenders may review your score and credit report from any of the three credit reporting agencies, it’s a good idea to check your credit report from all three and make sure they’re all right.

Usually when you get your credit report and analysis from the credit bureau it will include a form for reporting any inaccuracies. Give as much detail as possible, and if you have documents that back up your claim, provide copies. By law, the credit bureau must investigate your credit report claim, but even if they decide your credit report is accurate as it stands, you should continue to try to correct the report by writing a letter explaining your side of the story (not to exceed 100 words), which the bureau is required to provide to anyone requesting your credit report.

When deciding whether to approve credit, lenders take the following into consideration:

• Your payment history—do you pay bills on time?

• Have you had a bill referred to a collection agency?

• Have you ever declared bankruptcy?

• How much debt do you have outstanding compared to your credit limits? The closer your debt is to your credit limit, the less favorable.

• How long is your credit history? If you haven’t had much of a credit history yet, prompt payments are even more important.

• Have you applied for more credit lately? Too many applications for credit has a negative impact on your chances for approval.

• How many credit accounts do you have? Too many is considered a negative.

Information is retained in your credit report for up to seven to ten years. When you get your credit report and analysis, if you have negative items in your history, you can gradually repair your credit by consistently paying your bills on time from now on, paying down your balances, and not taking on any new debt. Lenders will take your improved record into consideration when deciding whether to approve credit, especially if you’ve been paying on time for at least a year.

Laurie

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October 6, 2009

The Benefits Of A Free Credit Report In The UK

Filed under: Credit — Tags: Credit Cards, Credit Check, Credit Rating, Credit Reference Agencies, Credit Reference Agency, Credit Score, Financial Institutions, Free Credit Report, Instant Access, Mistake, Mobile Phone, Personal Credit File, Personal Data, Personal Id, Typing Error — admin @ 8:46 am

Dave Joa asked:

Today you can easily get instant access to a free copy of your UK credit report online.

But what are the benefits of being able to see this record of your credit history and the other details that the credit reference agencies hold about you on your personal credit file.

In order to look at every potential benefit that your credit report could give you, we need to look at what your credit report is used for.

Who Uses Your Credit Report And How?

Your UK credit report will be used by financial institutions whenever you apply to them for credit cards, loans or mortgages and by other companies when you apply for any product or service that requires you to sign up for some form of credit, such as a mobile phone contract.

All these companies want to know your current credit rating and they will determine this using your credit score, which they calculate with their own company formula using information on your credit history and current credit status from a copy of your credit report.

This credit check will involve checking your credit report from one of the three credit reference agencies in the UK all of which gather relevant credit and personal ID information about you to create your credit file.

Failed A Credit Check?

If you fail a credit check and don’t get the loan or credit you applied for, you usually will not be told why or which credit reference agency was used.

However, the details held on your credit report can help you find out what is causing your application to be refused.

The reason may not even be a valid one as it is very easy for a mistake, typing error or old inaccurate information to be held on one of your three credit reports.

Such errors may relate to your credit history or the other personal data on your credit record, which is used to confirm your identification and what you put on your application form.

Major Benefit

A higher credit score will help ensure that you get the loans or credit you want and that you will get a better rate of interest than if your credit rating were lower.

To ensure that your credit score and therefore your credit rating is as high as it can be you need to make sure that everything on all three of your credit reports is accurate and up to date.

You therefore need to get a copy of your credit report from each of the 3 credit reference agencies. Never assume that if one is correct that the others will be!

Fortunately you can get instant online access your credit report at each agency for free as all agencies are currently offering a free trial of their UK credit report service.

You should take advantage of this to check all three of our credit reports and fix them if you find any problems. Just talk to the relevant agency about how to get issues with your credit report resolved.

Remember that this could take time so start as soon as possible, especially if you are planning to apply for a loan or other credit some time soon.

Other Benefits

Your credit reports are a great asset and should be checked and maintained just like you check you bank statements. If you do not check them they could easily become your greatest liability.

Effective management of your credit report could save you a lot of money over time and ensure that you are not refused credit when you need it.

If you are going to apply for a loan or mortgage then it makes sense to check you credit reports before applying as failed applications will be recorded on your credit file and can lower your credit score making your next credit application even more likely to fail.

When you fix your credit reports and get your credit score to be as high as possible you will be able to borrow more money from lenders and get more credit and all at lower interest rates.

Checking you credit report regularly is a great way of making sure that your identity has not been stolen and used in fraud to steal money or pay for products and services using your personal details and your money.

Compare reports from different credit agencies to make sure that they are all the same because when you apply for credit you have no way of knowing which credit reference agency your potential lender will use.

What Next?

It is very easy to check your UK credit reports and you can do this online for free.

So do it now before you forget to make the most of this opportunity.

Lucille

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October 5, 2009

Understand credit report’s relevance in mortgage

Filed under: Finance — Tags: Bankruptcies, Credit Score, Credit Worthiness, Debt Ratios, Debts, Financial History, Incompatibility, Lending Institutions, Loan Approval, Monthly Expenses, Mortgage Application, Personal Finances, Poor Credit Rating, Pre Approval, Repayments — admin @ 3:07 am

Lance Williams asked:

ght be wondering why some lenders turn down a mortgage application while some others might consider it fit for approval. The answer may well lie in the credit report and the credit score to be precise which plays a crucial role in loan sanctioning.

Credit history is an important factor affecting loan granting decisions by the lender or mortgagee. As part of the pre-approval process a detailed investigation is carried out into your financial history whereby the lender assesses your finances, your credit history and your investments. Your debt ratios are compared with the lender’s standard while deciding on the loan approval. Your level of debt or credit history is taken as a parameter for judging your ability to make the monthly repayments. The credit history as represented by your credit report plays a very crucial role since some lending institutions may even turn you down because of incompatibility with their lending standards. Too much debt and poor credit rating is a common reason cited for turning down a mortgage application.

At times your application may not be rejected altogether but you may have to settle for a loan amount lower than what you desired or expected. The other terms and conditions of the loan might also not have proved worthwhile for you. All these could have been avoided had you been a little more careful and vigilant while placing your documents about your personal finances as reflected by records of your earnings, monthly expenses and debts. Among these documents the credit report is of prime importance which reveals your credit score.

While considering your application the lender will also get to analyze your credit report. This provides all details about your financial history, payment records, total debts and bankruptcies (if any). This information is used to work out your credit score or FICO score (a rating of Fair Isaac and Company). This is a composite number-a numerical rating of your credit worthiness. These scores may range from 300-900. However, most people’s score fall between 600 and 700. Higher credit scores make you more appealing to the lender. Thus, you will be more likely to be offered better rates and loan terms.

A number of factors can affect the credit score. They can be broadly classified as:

a) The length of time you have had credit, outstanding credit, methods to repay this and how close you are to your credit limits.

b) Problems with credit which you may be having like late payments and bankruptcies. The number and frequencies of your delinquencies is to be considered.

It may be noted that almost 80% of credit reports contain errors. Getting for yourself a copy of the report beforehand will enable you to take steps for improving your score.You will be availed of the opportunity to review the report and rectify the score to quite an extent.

Some steps which can be taken in this regard are:

a) Finding out credit cards which are not needed anymore and closing the corresponding credit accounts.

b) Settling outstanding accounts, if any.

c) Paying out your bills, debt payments on time and in full and reduce your outstanding credit.

d) Verifying all listed account numbers and getting assured that they are yours.

It may be noted that minor credit problems or problems cropping up due to illnesses or temporary loss of income due to some unpredictable occurrence will restrict your chances of getting the aspired loan only from some high-cost lenders. Other lenders will hopefully be considerate enough to overlook such minor problems.

In spite of the best efforts there may still be certain negative indications in the report which could not be done away with. In such case you need to explain the situation to the lender. If at all it cannot be explained then, perhaps, you have to make greater down payments.

Getting to know how credit record affects loan prospects, proceed towards making improvements in your credit report. Your loan prospects will improve, no doubt. It will take you a long way towards securing your desired mortgage loan.

Daniel

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