Pay For Delete Letters to Remove Delinquent Accounts
A pay for delete letter is a useful tool to try to eliminate a delinquent credit item from your credit report. A pay for delete letter is a means used to arrange for a settlement on a severely delinquent account in which the sender is requesting that the creditor remove the delinquent record in return for paying the account off. The payoff amount can be the full amount or an offer to settle for a lesser amount.
The letter can be used in a variety of situations were the debtor wants to negotiate a payment in exchange for having the tradeline or account history being removed from their credit history. Once a delinquent record is removed, an individual’s credit score should improve almost immediately.
The object of the letter is to get the collection agency or creditor to accept payment in return for an agreement in writing that they will no longer report the debt to the credit reporting agencies.
The collection agency or the original creditor of a bad debt doesn’t have to accept or respond to a pay for delete letter but of they don’t, the individual requesting the settlement and deletion is not in any worse of a position.
The key element in charged off accounts is that a paid charge off has the same impact on a credit score as an unpaid one. Therefore, it behooves someone that has an unpaid delinquent account to try and get the creditor to remove the record in return for payment. Not all creditors will agree to remove a credit history on a delinquent account, however since the account has most likely not been paid in some time, unless the bank, credit card company or medical service provider agrees to delete, there is no incentive for the debtor to pay the account.
As a general rule, these letters are best used with the original creditor and not the collection company. Usually, the collection company cannot make the decision on behalf of the original creditor so they cannot delete the accounts from your record.
Only deal with the creditor that is reporting the debt. If a collection company is calling for debt to another company but isn’t reporting to the credit reporting agencies, ignore them and work with the original creditor instead.
Always be sure to get something in writing that says that the creditor will no longer report the debt to the credit reporting agencies and therefore get a boost in your credit score.
The following is a pay for delete letter as an examples are only that. The letter can be altered to match your specific situation.
Creditor or Collection Agency
1212 Maple St
City, State Zip
Collection Account for Original Creditor Account #
To Whom It May Concern:
This letter is to inform you that the validity of this debt is disputed. In order to compromise, I am willing to pay this account in the amount of $_____ if you agree to delete this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.
If you agree to the terms and accept this agreement, certified funds for the settlement amount of $_____ will be sent in exchange for full deletion of all references regarding this account from my credit files and full satisfaction of the debt. Since I am sending certified funds for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.
If you agree to the above terms, please prepare a letter on your company letterhead agreeing to the same terms as the above settlement offer. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.
Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.
Please address all correspondence regarding this account to:
Name
123 Any Street
City, State Zip
This letter can be used and tailored in any situation were you want to negotiate a payment for a tradeline in your credit report being removed. The mention of the term dispute in the letter is protection so as to not willing agree that the terms of the debt are in fact accurate and your full responsibility. A creditor could turn around and use any admission of the actual debt in court if they decided to take legal action.
There is no standard amount to offer the creditor to remove the debt, but there is no reason to offer the full amount initially and offer 50% of the amount owed instead.
Credit Scores and Collection Accounts
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 collection account is the account with the collection company that is collecting on an unpaid consumer debt and is generally not the original creditor or original lender.
The original unpaid obligation or debt may be from a credit card debt that was unpaid, medical bills, utility bills, or any other contractual debt that was left unpaid and then sent to a collection agency by the original creditor. The collection account is the account with the collection agency as opposed to the delinquent account that exists with the original creditor.
The original creditor’s delinquent account may also be reflected in the credit report. For instance, a collection account for an unpaid credit card balance may be reported to the credit reporting agencies as the original delinquent account with the credit card company, usually as a charged off account, as well as the balance now being collected by the collection agency.
A collection account may also be reflected in the credit report without a corresponding original creditor account. As an example; cell phone companies and medical bills that are unpaid may be sent to a collection agency to collect the unpaid delinquent debt and these creditors will not report to the credit reporting agencies, yet the collection agency the debt is assigned to will most likely report to the credit bureaus or credit reporting agencies.
A credit score evaluates collection accounts on an individual’s credit report according to when the collection occurred. Individual credit scores weigh collections on a credit report according to when the collection occurred. Generally, the more recent the collection, the more it’s going to impact the credit score.
Collection account records, no matter how recently opened, all should expire and be removed from an individual’s credit report seven years after the last 180-day late payment on the original debt.
Note that closing an account doesn’t make the record in the credit report go away. A closed account will still show up on a credit report, and its status will be considered in the credit score calculation. Paid collections and unpaid collections are generally scored the same; the impairment to a credit score occurs as a result of the account being delinquent. .
Since the collection account is different from the original creditor account, whether it is a credit card or a medical bill, and the collection accounts cannot report a payment history since technically there is no payment record with collection agency only with the original creditor then there will not be a payment history from the collection agency in the credit report and the credit score simply evaluates the date of the account and the amount.
It is always worth the effort to investigate the validity of collection accounts and the amount owed to see if they can be removed from a credit report for inaccuracy, which is common.
Importance of Credit Scores Underscored with FTC Congressional Subcommittee Testimony
Credit scores have become increasingly important in our lives, whether we like it or not and their importance and impact is almost certainly going to expand not diminish.
The Federal Trade Commission just recently presented a report to the U.S. House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services regarding actions by the FTC that cover the accuracy of consumers’ credit reports, preventing identity theft, and giving consumers a better understanding of their credit scores and what they mean. A press release provided by the FTC stated that, “Because credit scores are important to understanding the rates consumers pay for credit cards, mortgages, auto loans, and insurance, Congress wrote into the FACT Act a consumer’s right to purchase a credit score, and a requirement that certain mortgage lenders provide a free score to home loan applicants.”
The prepared testimony covered actions taken by the FTC that included the agency’s completion of rule making to ensure that consumers have access to free annual credit reports and understand that right; a rule making to enhance consumers’ rights to dispute errors in their credit reports by the credit reporting agencies and the furnishers of the data; and a study on the use of credit scores regarding pricing of policies in the automobile insurance industry.
The foundation for the testimony is grounded in The FACT Act which amended the FCRA. The FACT Act and the FCRA is the federal law that governs the operation of the nation’s consumer reporting system. The FCRA was instituted to regulate the practices of consumer reporting agencies and the furnishers of the data to the consumer reporting agencies as well as the users of the credit reports prepared by the consumer reporting agencies for activities such as extending credit. The FTC is the primary government agency responsible for enforcing and monitor activity associated with The Fact Act and FCRA which means the FTC is the primary agency governing credit reports and credit scores.
An interesting note in the testimony covers the FTC’s understanding of the importance of credit utilization figures in calculating credit scores. For example, the guidelines state that when furnishers report an outstanding balance on a credit account, they should also report the consumer’s credit limit. This is because the failure to include a credit limit can cause credit evaluators to inaccurately estimate how much available credit a consumer is using, which is an important factor in assessing creditworthiness.
As part of the report The Commission noted that, “with sufficient knowledge about the score and what it means, consumers may use that information as a valuable shopping
tool.”
The conclusion from this report is that the FTC is watching the credit score market to ensure that the market remains fair and competitive and will continue to be a vital part of our lives.
The Difference Between a Credit Report and Credit Score
Credit reports and credit scores are often misunderstood. Understanding these products can be confusing especially when consumers hear about how important credit scores are combined with the intense marketing of credit scores and credit report services.
Credit score and credit reports are closely related yet completely different products. A credit report is a list of all of credit information, public record information, and identification information that the credit reporting agencies have on file under an individual’s name. A credit score is a numerical summary of the information that is present in a credit report.
Credit reporting agencies collect and maintain records of an individuals credit records that are supplied by credit card companies, banks, mortgage companies, and other lending institutions. The information on credit accounts that are supplied to the credit reporting agencies by the creditors including the amount of money borrowed, payment records and additional data is used to create a credit report. There are three primary credit reporting agencies in the U.S. Equifax, Experian, and TransUnion.
The information in a credit report provided by the creditors is then used to calculate a credit score. The credit score is a three digit number that is used to determine the credit risk of a borrower for creditors and businesses assessing the financial risks of potential customers.
All individuals are entitled to at least one free copy of their credit report from the three big credit reporting agencies in the U.S. annually. Credit scores do not come with the free credit reports that are required to be provided to consumers by law, credit scores are not free.
The credit score that is calculated based on the information in a credit report may be different depending on the credit reporting agency used to determine the score as well as the type of credit score.
The most widely known type of credit score is the FICO Score. FICO Scores are the most common score used by financial institutions but there are many non-FICO credit scores available as well.
Individual credit reports from the three big credit reporting agencies are usually very similar, but they are not identical. Since the information in each credit report is somewhat different, the three credit scores from the credit reporting agencies will also be different.
Data in a credit report changes periodically, depending on how many credit accounts a an individual may have, the credit data in a credit report may change several times in a month. Since the credit score is based on the data in a credit report, a credit score will fluctuate over time and can change as often as the data in the report changes. The more accounts an individual has the more likely their score is to fluctuate as the data in their report changes when the creditors send updated data regarding an account to the credit report agencies.
Credit and Credit Scores after Bankruptcy
Filing bankruptcy is a series decision that impacts an individual’s credit and credit score for quite some time. Bankruptcy doesn’t have to shut off credit access altogether nor does filing bankruptcy have to be significant detriment for financial success. There are certainly numerous cases of individuals that have filed for bankruptcy and rebounded stronger and gone on to create significant wealth.
A bankruptcy is always one of the biggest negative factors that impact a credit score. How much of an impact it will have on an individual score will depend on the entire credit history and data in the credit report. As time passes, the negative impact of the bankruptcy decreases and the credit score will improve. A credit score can improve significantly faster with a little help and work.
Consumers who file for bankruptcy, file for a variety of reasons ranging from job loss, divorce, medical costs to poor credit decisions. In general, the reason for the bankruptcy doesn’t matter to future lenders and or the credit score calculation. If an individual filed for bankruptcy protection regarding only medical services this would have somewhat of a slighter impact than a bankruptcy that affects all credit. But bankruptcies that only include medial costs are rare and the credit score is going to take a big hit do to the bankruptcy record in most any situation.
The impact to an individual’s scores regarding future credit prospects are the same since most all loan decisions no longer look at qualitative factors such as why an individuals credit is poor rather banks and lenders just numbers such as the credit score and debt ratios, etc…
A credit score takes a big hit from the records of the bankruptcy on the credit report; the impact is different for all cases since the credit history of the individual is different before the bankruptcy. The credit reports of individuals that file bankruptcy often look bad with numerous late payments, collections, and judgments. The credit scores in these cases are already hammered pretty hard before any bankruptcy filing hits the credit report.
After a bankruptcy has been filed, the sooner the individual begins reestablishing credit in good standing, the sooner the credit score will rebound.
For those consumers that have credit available after the bankruptcy, they should keep that credit open. If an individual was able to keep a credit card that was not included in the bankruptcy because there was no balance on it, keeping the line of credit on the credit card open will help rebuild the credit score.
A good start for new credit is to obtain a secured credit card. In may help to even obtain more than one card and continually make monthly payments on time without running up new long term debt. As more time goes by after the bankruptcy the impact of the bankruptcy on the credit score lessens, and it may be possible to apply for a traditional credit card without security.
In general, the derogatory account information reported on a credit report has the most adverse affect on a credit score for the first 24 months after it is recorded. Once an individual is discharged from bankruptcy, they can apply and open new credit whether it’s a bank credit card, retail charge card, gas card and loan.
The nest step after establishing new credit, whether it be on existing accounts or secured credit cards, is to credit any inaccuracies in the credit report that may be holding the credit score down. If an individual finds inaccurate records on accounts that should be removed due to the dates or balances or amount owed, they have the right to dispute these errors. A dispute letter should be sent to each of the credit reporting agencies to correct the errors at Equifax, Experian, and TransUnion no matter how small the error is.
For each of the derogatory records or accounts on a credit report such as collection accounts or judgments or late payments, it is always helpful to check the dates and balances to see if either the amount is wrong on these accounts or to see if the account is past the deadline to remain in the report. Credit scores often have the greatest improvements when expired, derogatory data is removed or inaccurate derogatory data is removed. A key element regarding inaccurate balances is that if the creditor can not validate the amount to the credit reporting agency it has to be removed.
As a final note, always be extra careful not to make any late payments, using new credit responsibly, and don’t apply for too much credit without a purpose. Overtime a credit score will improve as new positive records are posted to the credit report.
The information about bankruptcy is for educational purposes only and is believed to be accurate but is not complete. Freecreditscorehelp.com does not offer legal advice. It is strongly recommended that individuals seek professional legal advice in the event of a bankruptcy filing.
Managing Money and Credit
Learning how to manage money the right way is an important step for individuals to take toward controlling their financial position. Understanding where your money is coming from and where it’s going to, not only helps to manage a household budget but can make sure that an individual’s credit remains good as well as helping to improve credit and credit scores that are already weak.
One of the first steps toward financial control and sound credit management is to calculate your net income. In order to improve credit and hence improve credit scores, the first step has to be knowing all of your sources of income after deductions, like income taxes and 401k, are taken into consideration. This net figure ultimately determines how much money can be spent each month on living expenses and debt repayment.
The next step is to make sure all accounts are current or have current information. Along with gathering and managing all current accounts, balancing the checkbook is a critical component in money management since it provides the information on exactly how much money is currently available to save or spend. Prepare statements on all bills and debt and make sure the checkbook is balanced and up to date.
Create a personal budget is next logical step to managing money and credit. A budget is an important tool to control spending, help manage debt and improve savings. A budget can be a fundamental starting point to help you achieve your financial goals. A budget is also a good way to understand what is important to you. Items of consumption such as new toys and cars and furniture are nice but hardly important to our lives and relationships. Determine what’s important in your life including credit, debt and relationships with a budget.
Once a budget is in place it times to take a close look at credit card debt and minimize the use of credit cards. Always use your credit cards wisely. The credit card rates on outstanding balances add up quickly and buying goods that cannot be paid for with current income is only going to make money management harder and stress levels higher. Credit card debt is an easy trap to fall into. The best way to avoid this trap is to avoid using credit cards altogether.
Now its time to pay down any outstanding debt. For those consumers that have credit card debt or other debts, one of the best approaches is to pay the maximum amount of funds available to the highest interest rate debts first and the minimum on lower interest debts to pay debts faster. Call the credit card companies to make better payment arrangement and lower the interest rate to help solve your debt burden.
Now, establish a savings plan. Try to set up an automatic withdrawal plan for forced savings, contribute to a 401K or deposit a portion of your monthly income into some kind of savings account. Even a small amount will add up when it is deposited monthly.
Review and understand your credit report. Obtain a credit report and become acquainted with your credit history. Annualcreditreport.com is the government mandated web site that lets consumers get access to one credit report from each of the three major credit reporting agencies annually. In order to improve your credit and improve your credit score, it is important to know where it stands presently. Repairing damaged credit can be easier than many people believe. But it does require work and no matter how bad the starting point is, you need to see the credit report and credit history to know where to start.
If the credit report shows late payments, high balances and credit lines, or bankruptcies or other collection activities, this will negatively impact an individual’s ability to get additional credit, housing, insurance and many other services that involve credit. Start now with good money management skills and fix as much of the credit report as possible to increase the credit score and credit profile.
Changes to Credit Score Calculations
In 2007 Fair Isaac Corporation, creators of the FICO credit scoring system announced that they would change how their credit score models evaluate credit report data. The new credit score, referred to as FICO 08, was delayed in its implementation until the second half of 2009.
The FICO score model is kept under wraps by the company that created it, but it is always a good idea to obtain a general understanding as to what makes a good or bad credit score. With the knowledge of what drives a credit score, consumers can either engage in good habits to maintain a good credit score or work to improve an existing low credit score.
The changes to the current FICO scores are taking place in a few key consumer sections that include opening new accounts or having prior derogatory information on select accounts and authorized user accounts.
The new version is less damaging for consumers that have had limited credit problems even in severe situations. The score gives less weight to isolated problems as long as the majority of other active credit accounts are in good standing.
The new formula gives less weight to minor derogatory or negative accounts such as small collection accounts and public records in which the original debt was less than $100.
The new credit model also reduces the weight of authorized-user accounts by reducing the potential score impact associated with the abuse of authorized user accounts.
Adding a spouse or child to a credit card as an authorized user has long been a good way to improve that person’s credit score, since the good history already established on the account had generally been imported to the credit report of new authorized user. Some mortgage brokers and credit repair companies began abusing this feature by “renting” authorized-user accounts from individuals that had good credit accounts and selling them to individuals who wanted to boost their scores.
According to company, they have developed technology that reduces any impact on the new credit score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit accounts.
The new credit score model uses the same 300-850scoring range, score reason codes, minimum scoring criteria, and inquiry treatment as previous versions of the score.
Credit bureau scores are often called FICO scores because most credit bureau scores used in the U.S. are produced from software developed by Fair Isaac and Company but not all credit scores are FICO scores. FICO scores are provided to lenders by the major credit reporting agencies. The FICO score is the credit risk score used by most lenders in the U.S.
Fed Announces Rule Changes for Marketing Free Credit Reports
The confusion over the marketing of free credit reports by companies that require a subscription to a credit monitoring service or other related products and services to receive the free credit report has resulted in intervention by the Federal Trade Commission.
Numerous consumers have seen advertisements touting free credit reports. Most of these advertisements have small disclaimer that explain that there is a requirement that the consumer sign up for a credit monitoring service or similar service that has a monthly charge in order to receive the free credit report(s).
The primary reason why there is a cost to the consumer over this confusion is that there has been no change regarding a consumer’s ability to receive a free credit report annually from each of the big three credit reporting agencies. Federal law mandated that the big three credit reporting agencies make available one credit report per year, with the no-strings-attached.
With the passage of the 2003 Fair and Accurate Credit Transaction Act (FACTA), all U.S consumers are entitled to one free credit report from each of the three major credit reporting agencies, Equifax, Experian and TransUnion upon request every 12 months. The credit reports are available by mail or at AnnualCreditReport.com or by calling 877-322-8228.
A new rule established by the FTC is designed to restrict procedures and actions that might confuse or mislead consumers as they try to get their federally mandated free annual credit reports and end up paying for an unnecessary service.
The FTC press release regarding the new rule changes states that, starting April 1, advertising for “free credit reports” will require new disclosures to help consumers avoid confusing “free” offers – which often require consumers to spend money on credit monitoring or other products or services.
The Federal Trade Commission’s Free Credit Reports Rule will require prominent disclosures in advertisements for “free credit reports.” The FTC example states that any Web site offering free credit reports must include a disclosure, across the top of each page that mentions free credit reports. The notice will read:
THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.
You have the right to a free credit report from AnnualCreditReport.com
or 877-322-8228, the ONLY authorized source under federal law.
The Web site must also include a link to AnnualCreditReport.com and FTC.GOV.
The amended rule established by the FTC becomes effective April 1, 2010, except in the case of television and radio advertisements, in which the new rules will take effect on September 1, 2010.
Using Secured Bank Loans to Improve a Credit Score
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 credit score and then make that credit appear to be a worthwhile credit risk for lenders and creditors in the future.
Adding credit to a credit report can be a simple as obtaining a new car loan or credit card. The unfortunate truth is that most consumers with a poor credit history and low credit score are not going to be granted a new car loan or credit card.
One method for acquiring new credit is to obtain a secured bank loan. A bank loan typically carries a lot of weight with creditors and credit score models. For those consumers that have the minimum financial resources to do so, a secured bank loan can provide a lift to a credit score that has been damaged by various delinquent creditor payments.
To obtain a secure bank loan, the prospective borrower will need to take some money and open a savings account with a financial institution that provides loans on existing bank accounts. Secure bank loans are generally found more often at small banks and credit unions as opposed to the larger financial institutions and national banks. The most common type of secure bank loans are usually those executed with a loan against a savings account.
A possible conflict with a credit union is that the smaller credit unions do not always report the payment and loan arrangement to the big three credit reporting agencies. This factor is critical since the reason for the loan is to repair a poor credit profile with new credit and new credit history. If a bank doesn’t report the payments to a credit bureau, it will defeat the purpose of obtaining the loan.
If the banks in the area do not offer these types of secured loans, another option is to see if the bank will provide an unsecured personal loan, a loan with a cosigner or a loan with another form of collateral to secure the loan. In either of these cases, the end result is a new bank loan reflected in the credit report that will, hopefully, have a good payment history in the future to drive a credit score higher.
When applying for a secured loan make sure the bank or credit union does report to the credit bureaus, investigate the interest rate on the loans, the maximum amount that can be borrowed based on the security as well as the available repayment schedule. Often, savings account loans have very desirable interest rates since the loan is 100% secured and easy to collect on by the bank. And always be vigilant about the monthly loan payments, do not miss a loan payment and ruin the value of these loans.
No Credit or Credit Score Same as Bad Credit
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 check having no credit and no credit score can be a burden.
For these consumers, improving their credit score is not the problem, it is simply a matter of obtaining credit in order to have a credit score. If you have no credit history, you have no track record of payment and you most likely will not have a credit score. The unfortunate aspect of having no credit history and no credit score is that consumer is considered a credit risk.
Lenders use credit scores to help them determine whether someone is an acceptable credit risk for new credit or whether a creditor will increase or decrease an existing line of credit or even the likelihood that a customer will file for bankruptcy. Creditors are reviewing a credit profile to see a history of how that consumer handles debt. The review of an individual’s credit history may involve reviewing total outstanding debts, minimum monthly payments, even account credit limits. If there is no credit history and no credit score upon which to make a decision, a decision to extend credit is regarded as a risk by most lenders and creditors.
In fact, the automated underwriting approval systems developed by FNMA and FHLMC used for the vast majority of home loan approvals will not approve a loan request in which the borrower does not have a credit score.
There are some things you can do to improve your credit even when your financial situation has turned sour and there are ways to build a credit profile and credit score when there is no credit score to start with. The first issue someone may have when there is no credit score compiled with their credit report, may be that there is a mistake on their credit report.
Credit scores are dependent on the credit reporting agency that the score is based on. The three major credit reporting agencies in the US are Trans Union, Experian and Equifax. Each one of these credit reporting agencies will have a different score for the same consumer since the data in each of the three different credit reporting agencies on which the score is based will generally have slightly different information.
If a consumer finds they do not have a credit score it may be the result of the score being based on data from just one credit reporting agency. It may be that credit histories for accounts paid on time are missing from this credit report or is only recorded in one or two credit reports.
For credit histories that are only in one of the credit reporting agencies files, ask the other agencies to add the data. Send a copy of the statement and the credit report that includes all of the accounts if you can.
If it appears more than one credit report or all of the big three credit agencies are missing accounts that are paid on time, ask the credit reporting agency that these accounts be added to the report. Send the credit bureaus a recent account statement and copies of canceled checks if needed, reflecting the account and payment history. The credit bureau doesn’t have to add account information, but if it is a verifiable account they often will add the data.
A final step is to quickly develop a credit history. A credit card is one of the fastest and easiest methods to build a credit history. Credit cards can be obtained for consumers that have no credit and previous bad credit. Some secure credit cards come with a guaranteed approval with just minimal conditions, none of which include credit verification. It is important to use the credit card to obtain a payment history, though the payments can be made within the grace period to avoid finance charges. A good resource to review competitive credit card offers is www.bestcreditcardrates.com.
Other loans such as secured loans at a bank, major department store credit cards even certain utility bills will work to establish a credit history as long as the bank or utility company reports the accounts to the credit bureaus.