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Posts Tagged ‘Credit Report’

What Makes a Good Credit Report?

In general, the following factors make for a good Credit Report:

• no more than eleven accounts, open or closed, on the report;
• no more than one change of address on the report;
• steady employment;
• regular payments;
• no overdue payments,
• no defaults,
• no foreclosure,
• no late fees;
• low balances; and,
• a Credit Score of at least 680.

Sometimes special offers lower your Credit Score...

Sometimes what save you money can look bad on a Credit Report. Examples are:

• Opening accounts to get special offers (for example, 15% off your purchases with a new account) and then closing them after paying the balance. While this is a deal, it increases the number of accounts on your Credit Report and in fact looks bad for the consumer.
• Applying for credit you probably do not need and will not use, just so you can have it as an emergency line of credit. This simply adds to your available credit and may make it difficult for you to get other credit you genuinely need.
• Using a credit card for a lot of purchases to take advantage of convenience and the thirty day grace period and then paying off the balance each month. While this offers convenience and does not cost you any interest, future creditors who get your report will only see the current balance on the account and will not realize you pay it off each month. This will appear as a large balance.
• Consolidating student loans. While this may get you a better interest rate and offer the convenience of one payment per month, it increases the number of accounts on your report. The more accounts you have, the lower your Credit Score.

Taking special offers, paying your balance in full every month, and consolidating loans have advantages that more often outweigh the disadvantages. However, you should be aware of the effect they have on your Credit Report and Credit Score.

You and your spouse are considered to be two separate entities as far as credit goes. However, you
have the right to have each other's credit information appear on each other's credit reports.

When you have good Credit Score and your spouse has poor Credit Score

Request for credit reports to be merged

If you have good Credit Score and your spouse has poor Credit Score, you can help your spouse's credit by having your information appear on your spouse's Credit Report. To merge your Credit Report with your spouse's Credit Report, you need to use the Letter Requesting Merger of Spouse's Report to request the credit agency to do this.

Request for credit reports to be separate

You also have the right to have each other's negative credit reports removed from each other's credit files. If your spouse has terrible credit and it shows up on your Credit Report, you need to request that it be
removed from your Credit Report. Then you can use your good credit to apply for loans and credit cards
that can benefit you both. In order to request negative Credit Report to be removed, you need to use the Letter Requesting Individualization of Credit Report.

Disputing Credit Report items

If you are unclear about anything on your own Credit Report, do not hesitate to call the company that prepared it. Credit reporting agencies are not your creditors, and they will not harass you for money if you call them. Call and ask for an explanation of whatever you do not understand.

How often should I check my Credit Report and Credit Score?

Generally, you should check your Credit Report at least once a year. However, it is advisable that you check your Credit Report once every quarter.

How much does a Credit Report cost?

Your Credit Report will cost you around $10. The amount varies from state to state. It costs a little more to obtain your Credit Score or your FICO Score with your Credit Report. Your FICO Score or Credit Score is very important when you apply for any financing.

How and where to order my Credit Report?

You can order your Credit Report from each of the three major credit bureaus:

• Experian
• Equifax
• TransUnion

You can call the credit bureaus to order a Credit Report as follows:

• Experian: 1-888-397-3742
• TransUnion: 1-800-888-4213
• Equifax: 1-800-685-1111

You can also order your credit reports by mail:

Experian
National Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013-2002

TransUnion Corporation
Consumer Relations Center
P.O. Box 10000
Chester, PA 19022

Equifax Credit Information Services
P.O. Box 105873
Atlanta, GA 30348

Alternatively, you can also order your credit reports from the credit bureaus' website.