What You Need To Know About Your Credit Report
Your credit report is a history of how you pay your bills. Before you can get a loan, your bank or lender will look at your credit history to determine your credit risk level, how much to loan you and at what interest rate.
There are three main credit reporting agencies that keep track of your credit history. They collect information from public records, creditors, lenders and debt collection agencies. Banks and credit card companies are not the only entities that want to see your credit history. Many employers and service providers look to credit reports in reviewing applications for employment and services. Your credit matters for more than just getting a loan.
It is important to review your credit report from each one of the three bureaus at least once a year to see if they contain any inaccurate information. Not every creditor reports to all three bureaus so you must check all three. To correct false or inaccurate information, you must dispute the information through the credit bureau. It is okay to notify the reporting creditor, but the dispute must be made through the credit bureau.
Your credit score is a number that summarizes your credit borrowing history. It is snapshot of your credit risk at that point in time. The FICO score is the most widely used credit score. It converts your payment history into a three digit number that ranges from 300 to 850. The higher the number the better the credit history.
Have you seen all the ads from credit card companies recently talking about the "new" business card option available to individuals? They are sending out over 10 million offers to households for professional credit cards each month according to a study done recently by a D.C.-based consumer-advocacy group! Credit card companies are now marketing these cards because of a loophole in the new regulations - "business" credit cards were excluded from the requirements that were added for consumer protection (like protection from sudden interest-rate hikes, etc) on basic consumer credit cards. Bottom line - consumers don't have protection under these so-called "business" cards! A few Senators have grouped together to urge the Federal Reserve to crack down on the marketing of these "business" cards. Senators are asking the agency to require credit card companies to clearly warn customers. Where there is a regulation, there is a will to find a way around it! Be an educated consumer!
