CreditReport.LifeTips.com

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1 CreditReport.LifeTips.com

2 Category: About Credit Reports Subcategory: About Credit Reports Tip: About Credit Reports A credit report is a compilation of information that gives potential creditors a snapshot of your financial responsibility. Credit reports are used by potential creditors, lenders, businesses, employers and insurers to help determine your creditworthiness. In some cases, you will be asked to give permission to have a creditor view your report. However, under the Fair Credit Reporting Act, the consumer does not always have to give their permission. Make sure you are aware of the specific disclosure policies for different types of businesses. If you look carefully at the application fine print, you'll see language that gives the potential lender permission to pull your credit history. However, your credit report is not the only determining factor that lenders consider when making decisions about whether or not to grant credit. Each lender has its own criteria. Tip: Credit Report Questions When you have credit report questions, where can you turn? Depending on what the question is, you may be able to contact the credit bureau for help. They can help you decipher information on the report, but they may not be able to help you with questions about specific credit items. In those cases, it is best to contact the creditor directly. At the bottom of the credit report you will find information on each creditor, including how to contact them. Start by talking directly to the creditor to see if you can find a resolution to your question. Tip: Impact of Transferring Balances Transferring balances from one credit card to another to take advantage of promotional interest rates can be a good money management tool. However, this doesn't usually benefit your credit score. Your overall outstanding balance will remain the same. Potential creditors may view the shuffling as a sign that you are under financial stress. If you can pay off the balance rather than transfer it, that is best. Tip: Information Aging Off Credit Reports Generally speaking, negative information that is correct can be reported on your credit report for seven years from the time the event occurred. However, there are exceptions to this rule. Bankruptcies can be reported for 10 years. If you've been involved in a lawsuit or had a judgment against you, that information can be reported for seven years

3 or until the statute of limitations expires, whichever is longer. Also, tax liens remain on your credit report for 15 years from the date the lien is paid or indefinitely if the lien is left unpaid. And tax lien information stays on your report for seven years from the date paid. Definitely an incentive to keep your financial house in order! Tip: What Is A Credit Report? Anytime you want to borrow money from a financial institution, they want to find out more about your past payment history. They can do this by reviewing your credit report. This report provides them with information on whether or not you make payments on time, as well as how long you have had credit experience. All of these factors are then taken into account to establish your creditworthiness. Your creditworthiness will determine if you will be extended credit by the financial institution. It may also be used to determine the interest rate or other terms. Category: Business Credit Reports Subcategory: Business Credit Reports Tip: Business Credit Reports A business credit report is used when business owners need to consider extending credit to other clients and partners in the same field as them. In today's economy it is important to have a credit report so that you can see how much of a risk is involved in extending a deadline of credit to an individual that requests it. If the individual's credit is bad and you end up extending the credit, you may not get anything back which results in a loss for you and can contribute to a financial disaster to your business as many people do you ask for extending credit loans and other things in the business world. To get a business credit report you are going to have to hire a company that is affordable, convenient and easy. You want to say company that will allow you to have access to a business credit report and a certain amount of time without you having to go through a ridiculous amount of software or other requirements in order to obtain it. Look for companies that will directly send a business report through the mail or via . After getting a business credit report, go through it clearly and without any important information that is associated with a business partner or client. Also, ensure that a company will provide you with support if you have any questions. Tip: Monitor Your Business Credit Reports Just like you need to monitor your personal credit report, you should also be monitoring the business credit reports for your company. Commercial fraud does happen and it can hurt the credit rating of your company. A lower credit rating can cause you to be

4 charged a higher interest rate and you may not be able to qualify for as much money as you need to borrow. If you don't already do this, start checking the credit history for your business and get errors fixed as soon as possible. Category: Common Credit Problems Subcategory: Common Credit Problems Tip: Avoid Pitfalls With Credit Card Help Finding the best credit card help means avoiding problems and pitfalls that can lead to deeper credit card problems. Consumers with credit card problems need credit card help from someone they can trust. Here are some pitfalls to avoid and services to ask for when seeking debt advice to lower your payments. * Beware of upfront fees before any service has been provided for fixing your credit card problems. * Ask about strategies you can do on your own for solving credit card problems and long-term credit card debt. * Find out how to access your credit report from the credit bureaus. * When seeking credit card help, ask a counselor for advice on accessing your credit report to get your credit scores. * Never accept an offer to create a new credit identity to avoid credit problems and long-term credit card debt. It is illegal. * Avoid agencies that advise you to disupte all information in your credit report. Finally, if a debt counselor's solution seems too good to be true, it probably is. A reputable agency offering credit card help will be your partner in devising new strategies for credit card problems. Category: Credit Basics Subcategory: Credit Basics Tip: About Installment Credit Installment credit is an agreement in which a merchant or lender allows a consumer to take and use merchandise in exchange for a promise to pay for it over time. The consumer may make a down payment, such as with a car purchase, and signs a contract that specifies the interest to be paid, the timeframe within which the item must be paid for, and any penalties the consumer will incur in the event he or she defaults on the terms of the agreement. Payment is made in a specified number of equal payments called installments. Installment loans include car loans, mortgages and student loans. Tip: About Revolving Credit Revolving credit is when a financial institution, or a store or credit card issuer backed by a financial institution, grants a borrower a line of credit that the borrower can tap as

5 often as he or she likes up to a predetermined limit. The balance can be paid in full each month, or the borrower can pay the balance due in installments over the course of time. If the balance is not paid in full, the outstanding balance incurs interest, which the borrower must also pay back. Credit limits are determined based upon information the lender obtains during the credit check process. Most credit cards are revolving lines of credit. You can charge up to your authorized limit, and you have the choice of paying your balance in full or paying the minimum monthly payment. If you pay less than the full amount due, the outstanding balance accrues interest, which you must also repay. A home equity line of credit is another example of revolving credit and not to be confused with a home equity loan. Home equity lines of credit function similarly to credit cards, whereas a home equity loan requires a fixed monthly payment over a set period of time to pay off the balance. Such fixed payment loans, including car loans, are called installment loans. Tip: Credit Companies Credit companies are everywhere with offers to extend you credit. Carefully review the terms offered to you before accepting an offer like this. Make sure you know if there are prepayment penalties, as well as the interest rate, fees charged and any other loan terms. It is also important to understand the penalties and processes that they may follow if you fail to make your payments as required. Tip: What Is A Credit Account? After opening a new credit card or loan with a financial institution, you will have what is known as a credit account. The information about this credit account is then regularly reported and included on your credit history. The data shared includes: 1. payment history (late or on time); 2. total amount borrowed; 3. current amount owed; 4. monthly payment; and, 5. number of required payments. Tip: What Is Credit? Credit is money given to you through some type of financial institution, like banks or credit unions. It is money that you have to repay with interest and sign a note obligating you to make regular periodic payments until a set final date. Credit is made available as revolving debt through the use of credit cards. Revolving debt, like a line of credit, means that you have a set amount of money available. If you borrow against it, the amount available is reduced. As you make payments and pay down the debt, you increase the amount available up to your credit limit. On the other hand, you may get an installment loan. You are given a set amount often to purchase a major item, like a car or house. You make regular payments on the loan until the debt has been satisfied. Category: Credit Bureaus

6 Subcategory: Credit Bureaus Tip: About Credit Bureaus A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers. Tip: About Equifax Equifax is the grand-daddy of the Big Three credit reporting agencies. In business for 107 years, it originally opened its doors in 1899 and has grown to include more than 4,000 employees in 12 countries today. Equifax is a data aggregator, meaning that it compiles credit payment histories on consumers and provides that information to decision-makers at lending institutions. Equifax has expanded its products to include those for individuals as well as businesses. You can purchase an Equifax credit report or subscribe to the company's other consumer services on its Web site. You are also entitled to a free Equifax credit report once every 12 months thanks to a new federal law. For more information on how to obtain your free credit check, visit Tip: About Experian Experian is relatively new, but no less influential, on the credit bureau scene. In business for about 30 years, Experian (formerly TRW) offers the usual credit reporting and decision-making and information management services to lenders and other businesses. Consumers can purchase an Experian credit report or subscribe to the company's other consumer services on its Web site. Before paying for a credit report, though, remember that federal law entitles each consumer to one free Experian credit report every 12 months. For more information on how to obtain your free credit check, visit Tip: Credit Report Bureaus And Free Credit Reports While there are many websites offering you access to your free credit report, there are only three credit report bureaus. Each of these credit report bureaus may actually run some of these websites, using it as a way to reel a consumer in to their official website. Typically, they offer a free service, like a free credit report, free credit score or free credit profile in an attempt to get you hooked. They may try to upsell you and encourage you to spend more money on additional services. Another possibility is that they will encourage you to sign up for a monthly service where the first month is free,

7 but the cost hits you each month after that. Tip: Credit Report Information Credit bureaus aggregate or collect and compile data from creditors, public records, and credit applications on more than 170 million Americans and store that information in databases that are used primarily by lenders during the credit application process. All three of the major credit bureaus include virtually the same four categories of information. Identifying information includes your name, date of birth, Social Security and telephone numbers, and current and previous addresses and employers. Credit history information includes your bill-paying history, loans, finance companies, and mortgage companies. Public records information includes information relevant to your creditworthiness, such as tax liens, court judgments, and bankruptcies. Finally, the inquiries information includes a list of which potential lenders and other authorized parties have received a copy of your credit report within a certain timeframe. This section also includes information on companies that may have received your name and address for the purposes of offering you credit. If you wish to opt out of receiving pre-approved offers from these companies you can call OPT-OUT or visit Tip: Verify Your Credit Bureau Information Credit management and identity theft experts recommend that you check your credit report at least once each quarter to ensure that the information contained in the report is accurate and that no new accounts have been fraudulently opened under your name. You should check your Equifax, Experian and TransUnion credit reports every few months by ordering your free yearly reports from and purchasing them online. Subscribing to a credit monitoring service is the best way to keep a close eye on your credit reports. Category: Credit Misconceptions Subcategory: Credit Misconceptions Tip: Myth: Credit Bureaus Make the Decisions Fact: Wrong. Credit bureaus don't make any decisions regarding whether an individual is approved for or denied credit, employment, insurance, or any other goods or services.

8 Potential creditors generally have multiple criteria that must be met before deciding to grant credit to an individual. Information contained in a credit report is usually just one of the factors upon which a creditor may base a decision. Many lenders also use a variety of predictive information to help determine an applicant's creditworthiness, such as household income, home ownership, and employment history. For example, if an applicant has met the lender's other criteria and the lender finds negative or questionable information in the credit report, the applicant may be asked to provide the lender a letter explaining the circumstances surrounding the negative information in the credit report. This is common during mortgage application processing. Tip: Myth: I Only Have One Credit Score Fact: You actually have three or more credit scores, including one each based on your Equifax, Experian and TransUnion credit reports. The scores can vary significantly, which can mean the difference between a lender approving or denying your credit application. It's a good idea to check your credit score with each of the bureaus at least once a year. Each offers convenient online ordering and offers products and services on an a la carte or package basis for a fee. You can also request a free credit report once each year from each of the three credit bureaus at Fair Isaac Corporation and the Consumer Federation of America have developed a brochure titled Understanding Your FICO Score that is aimed at helping consumers understand the credit scoring process, information contained in credit reports, and the relationship between the two. You can download a free copy of the brochure by visiting the Credit Education Documents page at myfico.com. Category: Credit Monitoring Subcategory: Credit Monitoring Tip: Credit Monitoring Services When ordering credit monitoring services you may have some additional add-ons offered to include in the overall package. For example, they may offer 3-in-1 credit monitoring. This costs more than the regular service since all three of your credit reports are available for you to review on a regular basis. Some of the major credit bureaus are taking the monitoring service a step further by providing you with insurance coverage in the event you become the victim of identity theft. Tip: Credit Report Fraud Alert To help fight back against credit identity theft, you can have a credit report fraud alert placed on your credit reports. While this may only be for 90-days, it provides you with some peace of mind after your wallet or credit cards have been stolen. Essentially, this

9 places a notice on your credit report that you may be the victim of identity theft and keeps them from opening any additional credit in your name. In some states you can take credit protection a step further and completely lock or freeze your credit file. Tip: Fix those mistakes -- no one else will Regular credit report monitoring is essential to maintaing control over your credit report. If you find a damaging error on your credit reports, it is critical to make a correction as soon as possible. Follow these basic guidelines, when doing a review of your credit reports: * Make a copy of your credit report and circle every item you believe is incorrect. This is the first step of tracking mistakes when doing a review of your credit reports. * Write a letter to the credit bureau (the address will be printed on the report). Explain each dispute and request an investigation to resolve the issues. If you have supporting paperwork, send copies along. Do not send originals. Often, you can do this online instead of through U.S. mail. * If using traditional mail, send all materials to the credit bureau by certified mail, return receipt requested, so that you can prove it was received. * Send a copy of the letter to the creditor whose credit statements are in dispute. This could be a credit card company, a bank or any other lender. Refer to a billing statement to find the correct address for disputes, because it's usually different from the payment address. Once it receives your request, the credit bureau will initiate an investigation, and contact the creditor that supplied the credit data you disputed. If the creditor cannot verify the entry is correct, it has to be removed from your report. When the investigation is complete, the credit bureau must send you a free copy of your credit file to show changes were made. If the investigation uncovers an error, you have the right to ask the credit bureau to send a corrected version of your credit report to everyone who received the report during the past six months. Also, if there's a problem with one credit bureau, you're likely going to need to contact all three major agencies and go through the same process. Tip: Managing your credit -- you need to do it One of the most important parts of maintaining good credit is regularly checking your credit reports and credit scores. Buying a house or a car, even charging a vacation or dinner to pay for later, are privileges that come with good credit. Make sure that the credit reporting agencies are reporting your credit correctly. Checking your credit report at least once a year and knowing your approximate credit score are as critical as paying your bills on time. Regularly checking your credit reports and credit scores is essential for consumers to do. If there are mistakes on credit reports, or if your score is low for some reason, it's going to be up to you to fix it. Tip: Protecting Your Credit & Identity Credit monitoring services can be found all over the Internet. Does that mean you should use them? Not necessarily. The service is a good one, but in this day and age,

10 with identity theft one of the crimes that has skyrocketed over the last few years, it cannot be all you do. Credit report monitoring essentially does just that: it monitors your credit report for any unusual entries or activity. But the fact is, identity theft is not just about people illegally opening credit card or cell phone accounts. It is much more than that. It is much safer to go with identity protection services from Identity Guard. They monitor and provide you with credit reports from all three major bureaus: Experian, Equifax and TransUnion. But they also go the extra mile. With Identity Guard, you can be protected on several levels. For one, up-to-date anti-virus software protects all the personal and sensitive information on your computer and Web-enabled phone that an identity thief would try and steal. Second, they regularly monitor Internet sites where identity thieves are known to trade and sell stolen information. And third, they use a patented scanning technology that alerts them if your social security number, credit card or bank information is being used over the Internet without your authorization. Monitoring your credit report is a good first step, but if you want comprehensive protection, you need to go that extra mile. Category: Credit Report Disputes Subcategory: Credit Report Disputes Tip: Credit Report Dispute Form Finding an error on your credit report can be very frustrating. Fortunately, you have federal laws on your side, which allow you to dispute errors with the credit reporting agency and the creditor. If you requested a copy of your credit report be mailed to you, then a credit report dispute form should have been included. Fill this form out completely and return it to the credit bureau. They will then investigate within 30 days of receiving your letter and inform you of the outcome. If a correction is made based on the findings, they will send you a new copy of your credit report. Tip: Credit Reporting Dispute To dispute items on credit report, the credit reporting agencies want to make sure that you are telling the truth. Occasionally, they deal with consumers who are looking to defraud the credit bureau and the financial institution. They can combat against this by checking all of the facts that are provided. They review the information you provide, as well as that provided by the creditor to make a determination. If it is determined that you are supplying fraudulent information you could face criminal charges. Tip: Wrong Information On a Credit Report Sometimes errors occur. When they are caught, you need to begin working to get them corrected as quickly as possible since getting them removed can take some time. Credit

11 report errors can be fixed by informing the credit bureau of the dispute. If it is determined that the information is correct, you will be notified that no change is being made to your credit report. In the event that you still disagree and feel the information is incorrect, you are permitted to have a statement added to your credit report indicating that. Category: Credit Reporting Laws Subcategory: Credit Reporting Laws Tip: Credit Report Rights Under the Fair Credit Reporting Act, you, as a consumer, have several rights regarding your credit reporting history. These all protect you from having inaccurate information used against you in a credit decision. Your credit report rights under the federal Fair Credit Reporting Act include: 1. receiving a copy of your credit report; 2. knowing who inquired about your credit history in the last year or two; 3. information on the credit reporting agency used to provide your credit history to a financial institution that subsequently denied your request for credit; 4. a free copy of your credit report if you have been denied credit; 5. ability to dispute any item on your credit report which then must be investigated within 30 days; 6. removal of inaccurate information within 30 days; 7. add a statement of explanation to your credit report regarding information you feel is inaccurate; 8. ability to restrict access to the information available in your credit report and remove your name from lists sold to telemarketers; and, 9. ability to sue someone who accesses your credit report without permissible purpose. Tip: Fair Credit Reporting Act Disclosure Under the Fair Credit Reporting Act, anytime you want to review your credit report, the credit bureaus are required to provide it for you. This does not; however, mean that they have to do it for free. Depending on your state's law, each credit bureau is only required to provide a set number of free credit reports to you each year. The states that have made free credit reports available to consumers (in addition to the Federal law) are: Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. You can get free credit reports if you are denied credit based on the information supplied in the credit report; you are the victim of identity theft; you are on public assistance or you are unemployed and looking for employment in the next 60 days. While you may be entitled to a free credit report, this does not mean that the credit bureau is required to supply you with a free credit score. These are two separate things and you credit score will cost you an additional amount. Tip: Permissible Permission And Credit Reporting Rules

12 To obtain a copy of your credit report, a financial institution or other party must have permissible permission. This keeps just anyone from taking a look at what is in your report. It also helps to prevent identity theft. When applying for any type of credit, carefully review any request for your credit history. Make sure that it clearly identifies who has permission to review your credit report. Also, make sure there is an end date to keep someone from pulling your credit more often than required. Often a financial institution will notify you that the terms of them granting you credit includes the ability to pull your credit report as needed. This is normal and the type of report they pull for this purpose just gives them the opportunity to keep an eye on your overall credit picture. Category: Credit Scores Subcategory: Credit Scores Tip: Check Credit Scores Find out what your credit score is by looking for online credit scores. You can find online credit scores at Credit.com, along with other helpful offers. This can provide you with quick and easy information so you know what to expect before applying for additional credit. If you plan to make a major purchase, like a home, in the near future, it is a good idea to start getting your credit in order as soon as possible. Bad credit or inaccuracies can make getting a loan difficult. It could also mean that you are charged a higher interest rate. The only way to avoid that is to make improvements to your credit report early, which will also increase your credit score. Tip: Factors Used to Determine Credit Scores There are five factors that go into determining your FICO score, and each is given different weight in the calculation. Past payment history accounts for 35% of the credit score. The amount of outstanding credit you owe counts for 30%. The length of your credit history counts for 15%, including length of time since you established credit and the length of time since you last used the credit. New credit, or the number of times you have recently applied for accounts, counts for 10%. Finally, the types of credit used counts for 10%. If you don't know what your credit score is, experts recommend you find out and regularly monitor the information affecting your credit reports and credit scores at each of the three credit bureaus. Tip: Know Your Credit Score Knowing your credit score is one of the smartest money moves you can make. You can obtain your credit score directly from any one of the three large credit bureaus: Equifax, Experian, or TransUnion. Each company maintains an Internet commerce site from which you can order your information. Each also offers credit monitoring services and

13 packages that include your credit score from all three bureaus, which can vary by as much as 50 points. Prices vary, but generally range from $9.95 to $59.95 for the different services and products. You do not have to pay for your annual credit report, but you do have to pay for a credit score. There are two ways you can get a credit report and credit score. Federal law allows you to receive a free copy of your credit report within 60 days of being denied credit if the decision was based in full or part on your credit score. The lender must notify you in writing of which credit bureau was used during the application process and give you instructions on how to obtain your free credit score and report. Even if you haven't recently been denied credit, you can get a free credit report once every 12 months from Experian, Equifax, and TransUnion under a new federal law designed to help people protect their private information. For more information, visit Tip: Marriage and Credit Reports There is a common misconception that when two people marry their credit histories become one the minute the two tie the knot. This is only partially true. When two people marry, each retains his or her individual credit history up to that point. As the couple incurs debt in both names, such as a mortgage, car loan, or credit card, the payment history for these credit accounts gets reported to both party's credit histories and affects each individual's credit score. However, credit accounts held in one or the other spouse's name do not appear on the other's credit report. Category: Establishing Credit Subcategory: Establishing Credit Tip: Credit Cards and Your Credit The best way to establish credit is to open a credit card and use it responsibly each month. Secured credit cards, student cards, gas cards and retail cards are all good options for new borrowers. Category: Getting a Credit Report Subcategory: Getting a Credit Report Tip: Consumer Credit Reports Consumer credit reports are designed to provide information about you to potential lenders. It helps to consolidate all of your information in one simple and easy location to make the credit approval process easier. You can make sure all information is accurate

14 by reviewing your credit history on an annual basis and get incorrect information fixed immediately. Tip: Request Credit Report You can request a copy of your official credit report to verify the accuracy of all of the information being reported about you. To get this information, you can send a letter to one of the three major credit reporting agencies or go to their websites to put in your request. There are advantages to accessing this information online, including the fact that the information on your credit report can be updated daily. Ordering a copy by mail and waiting for it to be delivered almost guarantees that it will be out-of-date by the time you receive it. Category: Protecting Your Credit Subcategory: Protecting Your Credit Tip: Identity theft? No thanks! Have you been a victim of identity theft? If not, you re lucky, since identity theft is one of the fastest growing crimes in America. However, some good news is that you are not totally vulnerable to a crime such as this. There are some popular identity theft services which were developed to help people guard themselves against privacy invasion. Some of the leading ones are: LifeLock, TrustedID, ID Watchdog, and Guard Dog. Any of these identity theft services will provide protection against your most valuable information. Using identity theft services provides you with the peace of mind that your most treasured and personal information is protected, all at a monthly price that most people can afford. The protection you get from these identity theft services is well worth the cost. Like any other available service, the best way to start is to do some comparison shopping among various identity theft services. See which ones are a good fit for you based on exactly they are offering for the price they are asking. Make your own comparisons to see which ones will give you the most for your money. Protect yourself and your family. After all, you don t want to find yourself thumbing through the telephone book under identity theft lawyers after you have been a victim.

15 Tip: Signs of Identity Theft Vigilance is the foundation for identity theft protection, so be on the lookout for the tell-tale signs. Check your credit report, and pay close attention to the inquiries section. If there are inquiries from companies that you did not contact, someone may be trying to open credit in your name. You should watch your mail carefully. If a particular bill or bills doesn't come on time, that may mean an identity thief has hijacked your account and changed the billing address to prevent you from finding out about fraudulent charges. Also, if you are denied credit, are offered sub-prime credit terms, or begin receiving calls from debt collectors you may be the victim of identity theft. Category: Rebuilding Credit Subcategory: Rebuilding Credit Tip: Check your credit score today Be a prepared consumer and know your credit score. The best way to check your credit reports and scores is online through the credit bureaus. By law, you are entitled to one free credit report from Equifax, Experian and TransUnion every 12 months. You can order this report from These free reports don't include a free score, though. You'll have to add your score on for $6-8 each. In addition to these free reports make it a habit to check your credit reports and credit scores online every 3-6 months. Registering for a credit monitoring program that tracks your credit data automatically may be the best option if you want to check your credit data quite often. You should also make it a habit to check your credit scores and credit reports days before a major purchase. Tip: Clean Up Credit Report Cleaning up your credit report starts with a review of your credit history. Know what's on it and determine what you need to fix. Then, rebuild your payment history by making all payments on time. Don't apply for any credit cards or loans that will add an additional inquiry to your record. If negative items have been on your credit report longer than required, contact the credit reporting agency to request they be removed. Tip: Rebuilding your credit score If you have credit problems, your credit score may be too low. Your credit score will drop if you've missed or made repeated late payments. There are simple steps for rebuilding your credit score -- but no quick fixes. Bankruptcies stay on your report for 7-10 years, keeping your credit score lower than it needs to be. Most negative items -- collection records, missed payments -- stay on your credit report for seven years. Here are tips for rebuilding damaged credit and improving credit scores: * If you have missed

16 payments, get current and stay current. Your debt will not go away, and it affects your credit score. * If you are having trouble making ends meet, contact your creditors and ask for an extension or lower interest rates. These are all good first steps toward improving your credit score. * Pay off debt rather than moving it to a new credit card. Even when an account is closed it stays on your credit report. * Rebuild your credit history by opening new accounts and paying them off on time. Tip: Sign Up For Auto-Bill Pay One of the most common causes of damage to a person's credit is late payments. This one small issue tends to snowball before you know it and start hurting your credit. Late payments lead to late fees. When these fees mount up your interest rates and minimum payments go up and are harder to make each billing cycle. Before you know it your outstanding balance is much higher than it initially was and you are nearing your credit limit. Soon enough, a late payment could land you with a fee that puts you over your credit line, and then you get an over-limit fee. Now you're saying, Is that really my credit report? See how it works? By enrolling in auto-bill pay with your credit cards you never have to worry about remembering to make a payment. The minimum payment is automatically deducted from your checking account at the same time every month so you do not miss any payments. Or you can choose to have the payment be more than the minimum. If you did not do this from the start and you have an account that has many late and over-limit fees, do not pay it off and close it. Creditors often look at length of credit, so keeping those cards open and working to improve your standing is better than just canceling the card altogether. Category: Uses of Credit Reports Subcategory: Uses of Credit Reports Tip: A Credit Check For Cell Phone Service In order to get approved for regular cell phone service, you need to complete a credit application and allow the service provider to request a copy of your credit report. This will be reviewed to determine if you have adverse credit. If there are problems, you may be asked to pay extra to complete the contract or possibly even provide a large downpayment. This type of credit check does count as an inquiry on your credit report. If you know you have negative credit, you can avoid a credit check by buying a prepaid cell phone or other type of service. Tip: Getting An Auto Loan When you want to buy a new car, you may need to get a loan to help you afford the one that you want. Before you go to a lender to apply for an auto loan, find out if you will be

17 qualified for one by ordering an instant online credit report at a website like Credit.com. First, check to make sure that all information on the credit report is correct. If you find any errors, get them corrected immediately. Corrections to your credit report can take months to complete so don't delay in contacting the creditor and the credit bureaus to get things changed. Next, figure your debt-to-income ratio. Too much debt can keep you from getting a car loan. When you feel confident that your credit is in good shape, talk to a financial institution to see if they will approve you for an auto loan. Tip: Getting Your Credit Checked For Utilities Even the utility companies want to make sure you have good credit before they let you get your phone, electricity or gas hooked up in your name. Once they get you set up they want to make sure you will make your monthly payments on time as required. So, just like in many other cases, your payment history is reviewed from your credit report. They also look to see if you have any major negative items on the report. Things like a collections item from another utility company in your past can be a big red flag. While you could be denied access to the utility, it is also possible that they could require you to pay a large deposit before it can be hooked up in your name. Tip: Mortgage Credit Report Buying a house can be a very stressful time for anyone. There is a lot that needs to be done, including checking your mortgage credit report. Armed with this information and knowing your gross monthly income, a lender reviews your total debt, as well as total monthly payments to help determine your debt-to-income ratio. This tells them how much money you can afford to pay each month towards your mortgage. Other information they look at when doing credit checks include your payment history. Before giving you a loan, your potential creditor wants to make sure you will make your regular payments on time each month. Category: Using credit cards Subcategory: Using credit cards Tip: Credit Card Counseling With so many individuals losing their jobs credit card counseling has become more popular than before. It is very sad to admit that many people are losing their jobs for a variety of reasons. Many different industries are moving their businesses overseas, moving to a different state and some even closing their doors after being open for so many years, the credit card companies are starting to lose money also.

18 With credit card counseling the counselors will sit down with you and go over your income that you have coming in as well as the cash flow that you have going out and give you your options that you have to get them paid back. If you have sat down with your spouse and gone over all of your bills and have no solutions to your credit card problems credit card counseling may be the best option for you. Some individuals say that credit card counseling is not a good thing to do but when you have exhausted all of your other options you may not have another choice but to give it a try.