Collection accounts will almost always have a significant negative impact on a credit score. A collection account is a listing in a credit report that represents a consumer account that has been assigned to a company to collect on an unpaid debt obligation. If a consumer stops making the contractual payments on an account or debt, the lender or creditor may assign the account or sell the account to a collection agency. This action turns a credit account into a collection account. The … [Read more...]
Using Secured Bank Loans to Improve a Credit Score
February 23, 2010 By Leave a Comment
There are numerous tools that can be used to improve a damaged credit history and low credit score. Along with removing any derogatory items that may be inaccurate in a credit report, the next best tactic is to add new credit and build a quick credit history. There are several ways to add credit to a credit report. Adding credit that helps improve a credit score can be a slow process, but a process that is generally necessary to rebuild credit profile that is the foundation of a good … [Read more...]
Credit Repair Scams Halted by FTC
February 9, 2010 By Leave a Comment
In October, 2008 the Federal Trade Commission sent out a press release regarding charges brought against another credit repair scam operation. Credit report repair services that offer to repair credit for consumers have popped up across the nation. Unfortunately, many of these organizations fail to help consumers and in some egregious cases, violate the law by taking money in advance and deceiving consumers regarding the services they perform to improve credit histories and credit … [Read more...]
No Credit or Credit Score Same as Bad Credit
February 6, 2010 By Leave a Comment
Good credit and a good credit score is an important facet of our lives whether it is used to buy a house, for employment screening, purchasing insurance or a whole host of other activities that often require a good credit history. For some consumers though, credit is a burden and they prefer to exercise their use of cash and avoid credit. Since there are so many actions that require a credit score such as renting a car, purchasing things over the phone or the Internet, and even writing a … [Read more...]
The Federal Credit Repair Organizations Act – Full Text
February 2, 2010 By Leave a Comment
The Federal Credit Repair Organizations Act prohibits a variety of false and misleading statements, as well as fraud by credit repair organizations. The Federal Trade Commission as well as the individual states, enforces The Federal Credit Repair Organizations Act. The Federal Trade Commission’s Bureau of Consumer Protection works for the consumer to prevent fraud, deception, and unfair business practices in the marketplace. This federal government department protects consumers from … [Read more...]
How Your Credit History May Affect Your Auto Insurance Rates
September 24, 2009 By Leave a Comment
Auto insurance companies often consider your credit report when they are determining the proper rate to charge you for your auto insurance. If you are shopping around for auto insurance, be aware that potential insurers may be looking at your credit report. There is a statistical correlation between consumer's credit history and possible auto insurance claims. Insurers assume that customers with better credit records are also more likely to be good risks for auto insurance policies. Not … [Read more...]
The Big 3 Credit Reporting Agencies
August 27, 2009 By Leave a Comment
A credit reporting agency is a repository of information that holds an individual’s credit or payment history. An individual’s credit report is created when a request for a report by a lender, credit card company or other authorized party requests it. Credit bureaus or credit reporting agencies hold the consumer's credit data in their databases. The data is always there but the credit report does not really exist until it is asked for. It is then compiled by the credit reporting … [Read more...]
Cost of a Bad Credit Report
July 15, 2009 By Leave a Comment
Your credit report can impact a many areas of your life. Although creditors usually consider a number of factors in deciding whether to grant credit, most creditors rely heavily on your credit history. Credit card companies, mortgage lenders, insurers and employers all use your credit report to make decisions about you and your life. The fact is that all legitimate creditors want to know whether you are likely to be a good credit risk. If there are inaccuracies in your credit report, it … [Read more...]
What Is a Credit Score
May 5, 2009 By Leave a Comment
A credit score is a number that used by a great deal of lenders to help evaluate how likely an individual is to repay a loan or make credit payments on time. The credit score is the result of a method that represents a calculated measure of credit risk. The resulting score assesses the likelihood that a borrower will repay a loan or credit card on time. In general, lenders that make most any kind of credit decision such as granting credit cards or mortgage loans will look at an individuals … [Read more...]
What is a Credit Report
May 4, 2009 By Leave a Comment
Knowing your credit report and its content is very important. There is a remarkable amount of dependence on credit in our society and credit reports now impact employment, housing, credit and more. To learn how you have handled credit in the past, most all creditors will obtain a report from a local credit reporting agency or credit bureau. Good credit is an integral part of an individual’s financial growth. A consumer credit report is a document that primarily contains a factual … [Read more...]