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The credit bureaus keep your personal credit history for a period of approximately ten years.
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Closed or Inactive Accounts - 10 years from the date of last activity.
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Derogatory Accounts - 7 years from the date of original delinquency.
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Public Records - 7 years from the date of payment or indefinitely if the Public Record is an unpaid tax lien.
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Chapter 7 Bankruptcies - 10 years from date filed.
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Credit reports contain personal information that you supply when you apply for credit. This information could include your name, spouse’s name, address, previous addresses, employment, previous employment, Social Security number and year of birth (or date of birth).
Organizations and creditors, with whom you have done business, regularly supply information on paid accounts, open accounts, mortgages, bank loans, credit cards and student loans, etc. This information may include the name of the creditor, the account number, who is responsible for making the payment, the date the account was opened and the date the information was reported. Other information may include the high credit amount, the current balance, the amount of the payment, the type of account, the status of the account including historical information on number of days delinquent and possible comments. This information reflects payment patterns on how promptly you have paid your debts.
Public record information such as bankruptcies, court judgments, disposition of lawsuits and tax liens may also appear in the credit file.
When you
order a Premier Credit Report©™ you will receive the same report a
credit grantor will receive. You will be provided with a list of organizations
and creditors who have inquired into your credit file within the past
two years. You will be able to monitor your file for inappropriate
use.
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The information on your credit report can be used to determine whether or not you are able to buy a new car, rent an apartment, get a loan, or qualify for other credit. By monitoring your personal credit report, you'll stay informed about your current credit status. You'll know which businesses and credit grantors have requested to view your credit report, which new accounts have been activated in your name, and whether or not derogatory information has been added.
Checking your credit also allows you to be alerted to information that may have negative, long-term effects on your credit history—such as excessive inquires and possible fraud.
By
checking your credit report, you can discover possible inaccuracies
in your credit history. Correcting inaccuracies ensures that your
credit report is current and correct, which in turn helps speed the
processing of your credit requests.
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Many financial experts agree that you should check your credit report at least once a month. Creditors generally send updates to the credit bureaus once every month. Therefore, your account information should be updated once a month as well. If you are expecting an important change in one or more of your accounts, or if you are closely monitoring your credit history, you may want to check your credit report more often.
All
creditors do not send updates to the bureaus on the same day. The
credit bureaus are constantly receiving updates. There is no easy
way to tell exactly when a creditor will send new information to the
bureaus, or when the bureaus will update their databases. However,
it is common for the same creditor to update records on the same day
of each month. Thus, it is beneficial to choose the same day each
month to check your credit report.
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A credit bureau, or credit repository, is an entity that gathers information about consumers' credit histories. Your credit history includes information concerning your identity, your payment habits, and your public record. Credit bureaus sell credit reports to credit grantors, such as banks, finance companies, and retailers. Credit grantors use credit reports to determine whether or not a potential borrower is creditworthy.
There
are three major credit bureaus in the United States: Experian, Equifax,
and Trans Union. These three bureaus provide nationwide coverage of
consumer credit information.
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Credit
bureaus obtain identification and credit information from credit grantors,
such as banks, retailers, and collection agencies. Bureaus obtain
monetary-related public record information directly from the court
systems.
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You have the right to dispute any misinformation on your credit report. You should begin the dispute process by contacting the creditor responsible for the inaccuracy. The contact information for each of your creditors is listed at the end of your credit report.
You
can also dispute inaccurate information
directly with the credit bureaus.
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An
inquiry occurs when an entity requests a copy of your credit report.
These inquiries can be made by credit-granting organizations, such
as banks and retail stores, when you are applying for credit. Other
inquiries, from requestors such as insurance companies, potential
employers, or rental housing agencies, can be made after you have
given the requestor your consent. The entity's name will appear on
your credit report, allowing you to monitor who accessed your credit
history.
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Not
all personal information is private—including Public Records. All
federal, state, and county courts make certain information public.
This includes information about legal matters affecting your credit.
It works like this: the courts record legal information, make it public,
put it on your credit report, and it becomes a "Public Record."
The most common types of Public Records include judgments against
you in civil actions, state or federal tax liens, or bankruptcies.
Public Records stay on your credit report for seven years. If the
Public Record is a Chapter 7 Bankruptcy, it will stay on your credit
report for ten years. If you have a Public Record on your credit report,
you can take steps to ensure that you receive credit under the best
possible terms. The most important step is to make timely payments
on your Public Records. Set a goal for yourself: Aim to have your
Public Records paid-in-full by a certain number of months or years.
By sticking to your payment plan, you’ll prove to potential creditors
that you are a creditworthy consumer.
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When you open a revolving account, such as a credit card account, you are given a maximum amount that you can charge--a limit.
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It’s up to you how much of your limit you will spend.
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The amount that you owe will change each month, depending on how much of your limit you have charged.
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You owe a certain amount of money.
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You have to pay back a set amount of that money each month and this set amount does not change.
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You also have a certain amount of time to pay off the loan.
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Review your last 6-8 months of check registers.
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List each entry that offers any hope of reduction.
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Except bills or taxes, etc.
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If you have any "maybes," list them.
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Categorize each entry into major areas of your life.
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Entertainment, dining out, savings, shopping, etc.
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Review each entry and write out a plan of action of how to save in each area and how much will be saved.
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A sack lunch versus eating out saves $30 per week.
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Develop a strategy that will allow you to save on each entry, while aiming for a total of 10% of your gross income.
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Create a list of all debts.
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For each debt, divide the total amount that you owe by the monthly payment.
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Put the debts in order, starting with the lowest division answer.
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Each month make the current minimum payment on each debt.
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Except debt #1 (lowest division answer), to which you apply the Accelerator Margin (AM) from above.
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Repeat until debt #1 is paid.
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Pay the minimum monthly on all bills.
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Except debt #2, to which you apply the minimum monthly + AM + the former debt #1 payment.
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Continue until debt #2 is paid.
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Begin eliminating debt #3 with the minimum payment + AM + former debt #1 + former debt #2, and so on...
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Once all debts (including your mortgage) are paid, take the money you use to spend paying debt and start yourself with a mutual fund!
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You may be tempted to pay off the higher interest debt first – Don’t do it! The strategy is to pay off debts with the shortest life span first.
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If you experience a financial emergency, stop the schedule temporarily until it is resolved. Then pick up where you left off!
Revolving
Accounts have open terms and varying payments. This means that your
monthly payments will vary depending on the balance of the account.
Examples of revolving accounts include all major credit cards and
credit cards from department stores.
Facts about Revolving Accounts:
Installment
Accounts have fixed terms with regular payments. If you’ve ever had
a car loan, student loan, home loan, or personal loan, you know what
we’re talking about. Let’s say your car payment is $300 per month—this
means that each month you pay the $300 installment.
Facts about Installment Accounts:
With time, determination, and a Debt Elimination Plan, you can significantly reduce your debt or even be debt-free! Here’s how…
Step 1: Develop an "Accelerator Margin" - an amount set aside monthly to pay extra bills. Suggested goal - 10% of your gross income.
Step 2: Develop Your Debt Elimination Schedule.
Caution:
Buyers
beware! If an organization claims it can remove negative—but accurate—credit
information from your credit report, it is either lying or committing
fraud. The miracle cures promised on late-night television and in classified
advertisements usually end with consumers as victims of malpractice.
Their fees can be substantial, ranging from hundreds to thousands of
dollars. Consumers can dispute inaccurate information directly with
the credit reporting agency for free or at minimal cost. Credit clinics
promise miracle cures, but only time can heal bad credit. No one can
remove accurate negative information from your credit report. A Dispute
Form will be included when you order your Premier Credit Report©™.
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Pay your bills on time.
Prove that you are a reliable and consistent consumer. -
Check your credit report regularly and dispute inaccuracies.
Don't let your creditworthiness be lowered by inaccurate information. -
Watch your debt.
Keep your account balances below 75% of your available credit. -
Watch your available credit.
If you have multiple accounts, all with high credit limits, lenders may conclude that your access to excessive unused credit could result in too much debt. -
Avoid excessive inquiries.
Inquiries mean that you have been seeking credit with various credit grantors, resulting in multiple requests for your credit report. Creditors may view too many inquiries as a sign that you are experiencing financial difficulties. -
You have been denied credit, insurance, or employment within the past sixty (60) days as a result of your credit history.
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You can certify in writing that you are unemployed and intend to apply for employment in the 60-day period beginning on the date in which you made the certification.
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You are a recipient of public welfare assistance or have reason to believe that your file at the agency contains inaccurate information due to fraud.
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To obtain a copy of your credit report from Experian -
Mail request to: P.O. Box 2002, Allen, TX 75013
Or call toll-free (888) Experian (888-397-3742)
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To obtain a copy of your credit report from Equifax -
Mail request to: P.O. Box 740241, Atlanta, GA 30374
Or call toll-free (800) 685-1111
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To obtain a copy of your credit report from TransUnion -
Mail request to: 2 Baldwin Place, P.O. Box 1000, Chester, PA 19022
Or call toll-free (800) 888-4213 - New inquiries
- Late payments
- New employers
- New addresses
- New accounts
- Public records
By observing the following guidelines, you can influence your creditworthiness for the better:
The
credit bureaus maintain credit files on individuals, so your credit
report contains payment information on credit accounts that are in
your name only. This is why your credit report is separate and unique
from that of your spouse.
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Credit fraud is a growing problem, and it affects each and every one of us. When a credit card thief purchases goods with a stolen card, it is the creditor that has to cover that cost. Creditors cover this loss by charging cardholders higher interest rates.
Credit
card fraud goes beyond the use of a stolen credit card. A thief can
use your account numbers even when your credit cards are safely in
your wallet. You may not realize that fraudulent charges are being
racked up on your card until you notice charges, that you did not
make, on your monthly statement.
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If
fraud is suspected, you should contact the credit bureaus immediately
(see contact information below). The bureaus have an established process
that will help identify and stop fraudulent activities. In the case
of fraud detection, you must inform your creditors and request that
they immediately halt all incoming transactions.
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The
Fair Credit Reporting Act (FCRA) is the federal law that governs the
consumer credit reporting industry. This law was enacted to protect
the consumer's right to privacy. The FCRA outlines the situations
or permissible purposes for which a company or organization may request
a consumer's credit report. You may obtain a copy of the FCRA from
the
Federal Trade Commission.
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You are eligible to receive a free copy of your credit report if:
If you are a resident of Colorado, Massachusetts, Maryland, New Jersey, or Vermont, you may receive one free copy of your credit report each year from the credit bureaus. If you are a resident of Georgia, you may receive two free copies of your credit report each year from the credit bureaus.
Illinois law, 815ILCS505/2B.2 (Solicitations Regarding Records) :
MANY GOVERNMENT RECORDS ARE AVAILABLE FREE OR AT A NOMINAL COST FROM
GOVERNMENT AGENCIES. CREDIT REPORTING AGENCIES ARE REQUIRED BY LAW
TO GIVE YOU A COPY OF YOUR CREDIT RECORD UPON REQUEST, AT NO CHARGE
OR FOR A NOMINAL FEE.
Monthly Monitoring - How can it help me?
Monthly monitoring puts you in charge of your credit by scanning your credit report for:
In the event that changes occur, you will be emailed with a notification of those changes.
Score can affect the decision whether or not you get that loan. Lenders and others often times make those decisions based upon one or more scores. Knowing your score can give you as sense of surity and confidence in your credit rating. When a lender is confident in the likelihood of receiving payment, your success rate for getting approved is much higher and the score is one of the determining factors. Purchasing the score option from us will gives you the information and confidence you need in your credit.