Do You Have Less Than Perfect Credit?

February 07,2013

It is estimated that as many as 80% of credit files have errors. If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else.

If you do have less than perfect credit your low FICO score could cost you between $200,000 to $1,000,000 over your lifetime. For your help we will try to unravel some of the more inportant questions related to your credit score.

For more detailed questions and answers visit http://www.vrtechmarketinggroup.com/MWatson2/

What Is A Credit Report And What Is It Used For?

A credit report is a history of your use of credit and other personal information which gives lenders a snapshot of your credit history. Whether you are applying for a credit card, a car loan, a personal loan or a mortgage, lenders want to determine your credit risk level. In short, lenders want to know if they can rely on you to pay them back on time.

There are three major credit reporting agencies: Equifax, Experian and TransUnion. These agencies collect data and maintain records on millions of Americans and their bill payment histories. The reports tell lenders how much credit you've used, what types of credit you've used, how long you've had various accounts, and whether you pay your bills on time. Every year, billions of lending decisions are based upon the information in those reports.

Your credit report and score strongly influences how much credit that will be made available to you and the terms you are offered by lenders. The speed you are approved for credit, the interest rates you get, and decisions about the amount of credit are all determined by the information found in your credit report.

Start your credit repair at http://www.vrtechmarketinggroup.com/MWatson2/

How Is My Credit Score Calculated?

The formula used to calculate your FICO score includes information based on several factors:

35% on your payment history

30% on the amount you currently owe lenders

15% on the length of your credit history

10% on the number of new credit accounts you've opened or applied for (fewer is better)

10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

Are "Credit Bureaus" Government Agencies?

No. Credit reporting companies are just that - companies. They are in business to make money, and they generate their income by selling credit reports to creditors.

How Long Do Negative Items Stay On a Credit Report?

Negative credit accounts, or trade lines, can remain on your credit report for up to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from your credit report if the consumer requests an investigation into remarks that they feel are incorrect.

Why Should I Care What Is In My Credit File?

It is your credit report that creditors use to determine if they will extend credit to you. If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.

Do All Three Credit Bureaus Report The Same Information?

Depending on which lender you go through will determine which credit bureau the item will appear on. It could be one, two or all three bureaus.

How Do Mistakes Get On My Credit Report?

It is estimated that as many as 80% of credit files have errors. If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because:

You applied for credit under different names (for example, Margaret Jones versus Margaret Jones-Smith)

Someone made a clerical error in reading or entering name or address information from a hand-written application

You gave an inaccurate Social Security number or the number was misread by the lender

Loan or credit card information was inadvertently applied to the wrong account.

Start your credit repair at http://www.vrtechmarketinggroup.com/MWatson2/

Because your financial health revolves around your credit score, it is important that the information your credit report contains be as accurate and up-to-date as possible. Millions of inaccurate items have been removed from consumers' credit reports since the Fair Credit Reporting Act was passed in 1971. Why shouldn't YOU join them and start saving money right now?

Mike Watson

United Credit Education Services

Call us on 619 743 8884

What do you have to loose other than your less than perfect credit?

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United Credit Educaton Services

619-743-8884

Mike Watson

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