Learn the fundamentals of the credit reporting system

HOME BIZ DIRECTORY REAL ESTATE JOB SEARCH COMMUNITY MARKETPLACE
SocialTwist Tell-a-Friend

Credit Reporting 101

Understanding the fundamentals of the credit reporting system. From the big three credit reporting agencies to your rights under the Fair Credit Reporting Act, this article will help you navigate the credit reporting maze and help give you more control over your finances.

The Credit Reporting Agencies - TransUnion, Equifax and Experian (formerly TRW) are the three national credit reporting agencies that keep records on consumers. The reporting agencies work with lenders, creditors, insurers and employers to update and distribute your information to the appropriate institutions. Here's an example of how the system works:

  1. When you apply for a new credit card the creditor requests a copy of your financial history from the reporting agencies.
  2. The creditor uses your credit reports and scores along with income and debt information to determine what rates to offer.
  3. You start to use the new credit card and the creditor reports your activities to the credit reporting agencies every 30 days.
  4. The credit reporting agencies update your credit report as they receive new information from creditors or lenders.
  5. Your credit profile changes based on your financial activity. The next time you apply for a credit card or loan, the process repeats.

Your Credit Report - Your credit report is divided into six main sections: consumer information (address, birthday and employment), consumer statement, account histories, public records, inquiries and creditor contacts. When you open a new account, miss a payment or move, these sections are updated with new information. The old records will stay on your credit report for about 7 years.

Not all creditors report to all three agencies and the agencies don't share their data so your reports from TransUnion, Equifax and Experian could be substantially different from each other. That's why it's important to check your three credit reports every few months to ensure that the information is accurate and up-to-date.

Correcting Inaccuracies - Under the Fair Credit Reporting Act, consumers are protected from having inaccurate information on their credit reports. If you find an inaccurate record on your report, try contacting the creditor or lender associated with the mark first. These companies can usually correct the mistake and send an update to the credit reporting agencies. If you can't make progress this way, you can also dispute the inaccuracy directly with the credit reporting agencies.

Working the System - Keeping your credit reports healthy will improve your credit scores and help get you the best rates on major purchases. We recommend that you check your credit reports every 3-6 months in order to guard against damaging inaccuracies and identity fraud. Routine check-ups along with paying your bills on time, keeping your credit card balances below 35% of their limits and correcting any negative inaccuracies will help you maintain a healthy credit profile.

Debt Management

Learn more about managing your credit and finances
Improve Your Credit Score
Boost Your Credit Score

The best thing you can do to improve your overall financial situation is to completely eliminate your debt.


Obtain copies of your credit report

Just by asking, this Non-Profit Organization can Get Your Creditors to Instantly CUT YOUR CREDIT CARD INTEREST RATES and Payments by 60%. There is NO CATCH...Lower Your Interest Rates and Save Thousands On Your Debt. Best of all, the Service is FREE. Limited Time Offer.
CLICK HERE FOR FREE DEBT REDUCTION ANALYSIS

Tax Services

Reducing your yearly income tax bill to its absolute lowest is one of the foundation principles of sound financial policy. With professional advice on the proper planning, timing and documentation of home-based business activities, most people can dramatically reduce the amount of taxes they owe.

Tax Reduction Resources


Google
Web WichitaLinks.com

Long Distance Rates as low as 3.3/Min - All Day







Submit Your Site Link to Us Advertise With Us About Us Contact Us Privacy

Copyright © 2009 · Cyberguide to Wichita · All rights reserved.
Photographs on this web site may not be reproduced or copied without express permission
Web Hosting and Design by Data Synthesis


You may also be interested in visiting: Financial Advisors Alliance · Home Business Tax Savings