Understand how your credit score is determined
Your credit score is usually based on the answers to these questions:
Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.
What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
Have you applied for new credit recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.
What is a credit report?
A report issued by a credit bureau or credit-reporting agency on the credit history and payment history of borrowers
Q: Why do I want a copy of my credit report?
A: Your credit report has information that affects whether you can get a loan ? and how much you will have to pay to borrow money. You want a copy of your credit report to:
* make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
* help guard against identity theft. That's when someone uses your personal information (like your name, your Social Security number, or your credit card number) to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don't pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
How do I order a credit report?
You are entitled to one free annual credit report every 12 months from each of the three major credit bureaus : Equifax, Experian, and TransUnion. AnnualCreditReport.com, which was created by the three credit bureaus, is a centralized service for requesting your free annual credit reports. You can order all three credit reports at the same time, or order one now and others later.
AnnualCreditReport.com enables you to request, view, and print your credit report in a secure Internet environment. Or you can have your report mailed to you.
Q: What is a credit report?
A credit report is a record of your credit history that includes information about:
Your identity. Your name, address, full or partial Social Security number, date of birth, and possibly employment information.
Your existing credit. Information about credit that you have, such as your credit card accounts, mortgages, car loans, and student loans. It may also include the terms of your credit, how much you owe your creditors, and your history of making payments.
Your public record. Information about any court judgments against you, any tax liens against your property, or whether you have filed for bankruptcy.
Inquiries about you. A list of companies or persons who recently requested a copy of your report.
Q: Why is a credit report important?
A: Your credit report is important because lenders, insurers, employers, and others may obtain your credit report from credit bureaus to assess how you manage financial responsibilities. For example:
Lenders may use your credit report information to decide whether you can get a loan and the terms you get for a loan (for example, the interest rate they will charge you).
Insurance companies may use the information to decide whether you can get insurance and to set the rates you will pay. Employers may use your credit report, if you give them permission to do so, to decide whether to hire you.
Telephone and utility companies may use information in your credit report to decide whether to provide services to you.
Landlords may use the information to determine whether to rent an apartment to you.
Q: Who collects and reports credit information about me?
A: There are three major credit bureaus--Equifax, Experian, and TransUnion--that gather and maintain the information about you that is included in your credit report. The credit bureaus then provide this information in the form of a credit report to companies or persons that request it, such as lenders from whom you are seeking credit.
Q: Where do credit bureaus get their information?
A: Credit bureaus get information from your creditors, such as a bank, credit card issuer, or auto finance company. They also get information about you from public records, such as property or court records. Each credit bureau gets its information from different sources, so the information in one credit bureau's report may not be the same as the information in another credit bureau's report.
Dollar.PRO - Privacy Policy