Saturday, October 16, 2010
Monday, September 27, 2010
Monday, September 20, 2010
Thursday, August 26, 2010
Obsessed with a perfect credit score
Quest for the perfect credit score
MONEY Magazine) -- A major league pitcher dreams of throwing a perfect game. High schoolers eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT. Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850 credit score.
The 37-year-old stay-at-home dad from Rogers, Ark., has already nabbed 813 on the FICO scale, the credit scoring system most lenders use in sizing up potential borrowers.
That ranks him above more than 82% of Americans and comes with a big payoff: It entitles him to ultralow rates on loans, saving him tens of thousands of bucks over a lifetime.
Nevertheless, Peplinski won't be satisfied until he hits the maximum: 850. Why? "Your credit score tells a lot about you," Peplinski explains. "A high score means you're responsible and in control of your life. You're trustworthy."
To reach his goal, Peplinski voraciously reads up on every element that goes into a FICO score, checks his number every three months, and tweaks his behavior to eke out every possible additional point.
Two years ago, he took out a car loan even though he and his wife, Chrissy, had the cash to buy their wheels outright. He figured that adding to his mix of credit might boost his score.
Required scores to nab the best loan rates
In spite of Chris's best efforts, landing an 850 may be a quixotic goal -- only about 0.5% of Americans manage it, FICO reports. "The 850 score is kind of like a unicorn," says John Ulzheimer, a credit scoring expert with Credit.com who used to work for FICO. "Everybody talks about it, but nobody's seen it."
The reality is that you don't need to catch the unicorn to catch the best rates. But adopting some of the habits of Peplinski and other members of the 800 club can help you improve your own score.
And that can translate into real money: On a $300,000 30-year fixed-rate mortgage, the most credit-worthy borrowers will pay $14,200 less than those one tier below, $25,600 less than those two tiers below.
FICO, the Minneapolis company that produces the scoring model, divulges the five factors that determine your magic number -- your payment history, the amount you owe on credit lines and loans, the length of your credit history, how much new credit you've applied for, and the types of accounts you've had -- plus what percentage of your score each factor represents.
But as for exactly how many points you'll gain or lose for, say, taking on a mortgage, being late on a bill, or charging credit cards up to the max? That's proprietary information: "It's a black box," says FICO spokesman Craig Watts.
Mystery feeds obsession. Much the way fans of TV's Lost met up online to postulate theories on the show's ending, some credit score aficionados passionately debate their hypotheses on message boards like the FICO Forums at myfico.com. Others use themselves as guinea pigs to discover which moves will nudge a score up or down.
While most people could tell you their number only from the last time they got a loan -- if at all -- true FICO fiends know their score as well as they know their spouse.
Of the score strivers MONEY interviewed, most check their score obsessively, at least every few months -- at a cost of $50 or more a year. They also fixate on their credit reports, upon which the scores are based.
Leland Lim, a 41-year-old doctor from the Bay Area, is vigilant about scanning these for errors that might drag down his number. "It took me three years to get a derogatory entry on one of them corrected," says Lim, who now earns an 806.
As for what makes an 800-plus score, these self-made experts basically say the same thing FICO does: Payment history is the single most important factor.
6 tips to improve your credit score
"I have this fetish about paying bills as soon as they come in the house," says Dick Husemann, 66, a retired Air Force officer from Wilmington, N.C. He and his wife, Brenda, 69, attribute their high scores -- matching 818s -- to the fact that they've never missed a credit payment.
The Husemanns also never charge more than 10% of their credit limit. They're not alone in that; most score enthusiasts aim to keep a low "utilization ratio," or the amount they owe compared with the amount of credit available to them. FICO verifies that a low ratio can help your score.
Chris Peplinski used his knowledge of this principle to help his wife boost her number. When they met seven years ago, Chrissy's credit cards were maxed out and her score was a low 466. (Today he jokes: "I tell people when they're dating someone new, ask about your date's credit score!")
Chris helped her get on a repayment plan. A sales manager for General Mills, Chrissy now has tons of available credit she's not using and a score of 786. Chris occasionally applies for additional credit cards to goose the couple's credit lines further, even though he knows the FICO model will ding his score in the short term for opening a new account.
That kind of gamesmanship is all part of the quest for 850. With lenders now routinely closing inactive accounts, Lim rotates all his credit cards into circulation so that he'll continue to have a lot of available credit to figure into his utilization ratio.
But because his charges also affect that ratio, a few months before applying for a loan, he stops using the cards or pays them off before the statement is generated. That way, he says, "my score jumps a bit" -- just in time for the lender to see.
The 800 club members are also conscious of their mix of credit.
Lim became interested in the scoring process two years ago while refinancing a home-equity loan into a home-equity line of credit. Having heard that revolving debt could affect a score more than an installment loan, he studied up.
His research revealed that HELOCs are not considered revolving debt in the FICO model. (The scoring firm confirms.) And remember that car loan Peplinski took out even though he didn't have to? He did it because FICO favors those with a variety of credit types, such as mortgage, credit cards, and auto loans.
"I probably paid $100 in interest," he says. "But it was worth it because we raised our credit scores by 15 points."
Sunday, August 22, 2010
New credit card restrictions take effect
New credit card restrictions take effect
Taken from cnnmoney.com
By the CNN Wire Staff -- New rules designed to protect credit card users from "unreasonable late payment and other penalty fees" come into force Sunday as a result of the Wall Street reform bill.
The rules block credit card companies from charging more than $25 for late payments except in extreme circumstances, prevent them from charging customers for not using their cards, and requires them to reconsider rate increases imposed since January 1, 2009, according to the Federal Reserve, which approved the regulations.
They are the final provisions of federal legislation that placed new restrictions on credit card interest rates and fees, completing the most comprehensive overhaul of the credit card industry in history.
The banking industry has already made changes in response to the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, a spokesman said Sunday.
"The industry has moved swiftly to implement all of these changes and the final piece of the puzzle is now in place," said Kenneth Clayton of the American Bankers Association.
"It will still take some time before we can really see how the landscape has changed, but it is clear that consumer choice and control will ultimately drive further changes in the marketplace," he said in a statement.
The Fed's rules could result in lower interest rates for consumers.
Banks will have to reduce rates if the reasons for increases imposed in the last 20 months no longer exist, and regulators will review and enforce such cuts.
Consumers will most immediately notice the new penalty fee limit of $25. Reducing penalty fees was a central provision of the credit card law, but Congress left it to the Fed to determine how to do it.
The Fed leaves room for larger penalty fees to be charged if a consumer has shown a pattern of "repeated" violations or if a card issuer can show that a higher fee reasonably offsets its own costs in dealing with the violation that spurred the penalty.
Among other new rules, penalty fees can't exceed the dollar amount incurred by the consumer's violation that spurred the fee.
For example, if a customer is late making a $20 minimum payment, the fee can't exceed $20. A consumer who exceeds her credit limit by $5 cannot be charged an over-the-limit fee of more than $5.
Consumers will no longer face multiple penalty fees if the violation was based on a single late payment.
The provisions, which were announced in June, complement previous rules of the 2009 credit card law that are already in effect.
Starting in February, issuers were prohibited from hiking interest rates on existing balances as long as customers paid their bills on time. They also have to notify customers at least 45 days in advance of interest rate increases and most fee changes.
The Fed was tasked with figuring out a way to set penalty fees in a way that's "reasonable and proportional" to the violation that caused the fee.
Consumers scored a win, since these fee caps go beyond what the Fed had suggested earlier this year in a draft.
The $25 limit will mean significant savings for consumers who face median penalty fees of $39, according to data collected by the Pew Safe Credit Cards Project.
However, if a cardholder is late or over his credit limit two times within six months, issuers could hike the second penalty fee to $35, or possibly more if the issuer can justify the fee to regulators, according to the Fed rules.
Although the Fed is cracking down on penalty fees, it hasn't addressed the interest rate hikes that are also imposed on consumers who violate the terms of their credit card agreements.
So a consumer who spends more than his credit card limit by $15 may only face a $15 fee. But that consumer could still face a permanent penalty hike on his interest rate, which would apply to any future purchases.
Still, some banking groups have concerns. Financial Services Roundtable's senior lobbyist Scott Talbott warned that the Fed's cap on penalty fees will limit the industry's ability to offset the risk that credit cardholders don't pay their bills.
"The restrictions in the rules the Fed issued will decrease the ability of the credit card industry to price for risk and the net effect will be a decrease in [credit] availability," Talbott said.
--CNN's Scott Spoerry and CNNMoney's Jennifer Liberto contributed to this report. To top of page
Taken from cnnmoney.com
By the CNN Wire Staff -- New rules designed to protect credit card users from "unreasonable late payment and other penalty fees" come into force Sunday as a result of the Wall Street reform bill.
The rules block credit card companies from charging more than $25 for late payments except in extreme circumstances, prevent them from charging customers for not using their cards, and requires them to reconsider rate increases imposed since January 1, 2009, according to the Federal Reserve, which approved the regulations.
They are the final provisions of federal legislation that placed new restrictions on credit card interest rates and fees, completing the most comprehensive overhaul of the credit card industry in history.
The banking industry has already made changes in response to the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, a spokesman said Sunday.
"The industry has moved swiftly to implement all of these changes and the final piece of the puzzle is now in place," said Kenneth Clayton of the American Bankers Association.
"It will still take some time before we can really see how the landscape has changed, but it is clear that consumer choice and control will ultimately drive further changes in the marketplace," he said in a statement.
The Fed's rules could result in lower interest rates for consumers.
Banks will have to reduce rates if the reasons for increases imposed in the last 20 months no longer exist, and regulators will review and enforce such cuts.
Consumers will most immediately notice the new penalty fee limit of $25. Reducing penalty fees was a central provision of the credit card law, but Congress left it to the Fed to determine how to do it.
The Fed leaves room for larger penalty fees to be charged if a consumer has shown a pattern of "repeated" violations or if a card issuer can show that a higher fee reasonably offsets its own costs in dealing with the violation that spurred the penalty.
Among other new rules, penalty fees can't exceed the dollar amount incurred by the consumer's violation that spurred the fee.
For example, if a customer is late making a $20 minimum payment, the fee can't exceed $20. A consumer who exceeds her credit limit by $5 cannot be charged an over-the-limit fee of more than $5.
Consumers will no longer face multiple penalty fees if the violation was based on a single late payment.
The provisions, which were announced in June, complement previous rules of the 2009 credit card law that are already in effect.
Starting in February, issuers were prohibited from hiking interest rates on existing balances as long as customers paid their bills on time. They also have to notify customers at least 45 days in advance of interest rate increases and most fee changes.
The Fed was tasked with figuring out a way to set penalty fees in a way that's "reasonable and proportional" to the violation that caused the fee.
Consumers scored a win, since these fee caps go beyond what the Fed had suggested earlier this year in a draft.
The $25 limit will mean significant savings for consumers who face median penalty fees of $39, according to data collected by the Pew Safe Credit Cards Project.
However, if a cardholder is late or over his credit limit two times within six months, issuers could hike the second penalty fee to $35, or possibly more if the issuer can justify the fee to regulators, according to the Fed rules.
Although the Fed is cracking down on penalty fees, it hasn't addressed the interest rate hikes that are also imposed on consumers who violate the terms of their credit card agreements.
So a consumer who spends more than his credit card limit by $15 may only face a $15 fee. But that consumer could still face a permanent penalty hike on his interest rate, which would apply to any future purchases.
Still, some banking groups have concerns. Financial Services Roundtable's senior lobbyist Scott Talbott warned that the Fed's cap on penalty fees will limit the industry's ability to offset the risk that credit cardholders don't pay their bills.
"The restrictions in the rules the Fed issued will decrease the ability of the credit card industry to price for risk and the net effect will be a decrease in [credit] availability," Talbott said.
--CNN's Scott Spoerry and CNNMoney's Jennifer Liberto contributed to this report. To top of page
Tuesday, August 17, 2010
A Summary of Your Rights Under the Fair Credit Reporting Act
Taken from www.ftc.gov/credit
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.ftc.gov/credit or write to: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.
* You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
* You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
* a person has taken adverse action against you because of information in your credit report;
* you are the victim of identify theft and place a fraud alert in your file; C your file contains inaccurate information as a result of fraud; C you are on public assistance;
* you are unemployed but expect to apply for employment within 60 days. In addition, by September 2005 all consumers will be entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.gov/credit for additional information.
* You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
* You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.
* Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
* Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
* Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
* You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.ftc.gov/credit.
* You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
* You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.
* Identity theft victims and active duty military personnel have additional rights.
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.ftc.gov/credit or write to: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.
* You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
* You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
* a person has taken adverse action against you because of information in your credit report;
* you are the victim of identify theft and place a fraud alert in your file; C your file contains inaccurate information as a result of fraud; C you are on public assistance;
* you are unemployed but expect to apply for employment within 60 days. In addition, by September 2005 all consumers will be entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.gov/credit for additional information.
* You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
* You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.
* Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
* Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
* Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
* You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.ftc.gov/credit.
* You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
* You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.
* Identity theft victims and active duty military personnel have additional rights.
Saturday, August 14, 2010
Friday, August 13, 2010
First Things First (NEW POST)
First Things First
by Mark Ferguson
“first things first” ~ The Notorious B.I.G.
Despite the bad news we hear all day, every day, concerning the current economic crisis, there are still opportunities to take advantage of, for those who are prepared. Topping the list are interest rates that are at the lowest they’ve been in 30 years, and housing prices across the country going in the same direction. But, we can only benefit from these opportunities if our financial houses are in order.
Success = Preparation + Opportunity
Taking an honest look at your credit report is the first step for your financial health. It is equivalent to a physical exam, in the context of it being data that represents, or shows, where you are, where you have been, both good and bad, and where you are going.
Most consumers automatically go to the bad things that have occurred in their lives when the conversation of credit scores comes up. We know exactly what we were doing, who we were with, and anything bad associated with our credit when we see bad trade lines, yet many of us automatically assume certain people we know have excellent credit. We have to start expecting the best from ourselves if we are going to move into better years to come financially fit.
The hardest part is accepting the TRUTH.
The truth being that our credit is either bad or great. It is alright if you are not where you want to be, most of us are not either. What is important is that we are taking the proper steps to guarantee a better future. Some of us are closer to our goals and others are years away. It’s just that plain. We won’t know what steps need to be taken until we first take a realistic look at where we are. In doing this first step, we will see what must be done in our financial lives to correct these reports, that are used to evaluate us, and move us to the approved status in everything we do.
Peace and Excellent Credit!
by Mark Ferguson
“first things first” ~ The Notorious B.I.G.
Despite the bad news we hear all day, every day, concerning the current economic crisis, there are still opportunities to take advantage of, for those who are prepared. Topping the list are interest rates that are at the lowest they’ve been in 30 years, and housing prices across the country going in the same direction. But, we can only benefit from these opportunities if our financial houses are in order.
Success = Preparation + Opportunity
Taking an honest look at your credit report is the first step for your financial health. It is equivalent to a physical exam, in the context of it being data that represents, or shows, where you are, where you have been, both good and bad, and where you are going.
Most consumers automatically go to the bad things that have occurred in their lives when the conversation of credit scores comes up. We know exactly what we were doing, who we were with, and anything bad associated with our credit when we see bad trade lines, yet many of us automatically assume certain people we know have excellent credit. We have to start expecting the best from ourselves if we are going to move into better years to come financially fit.
The hardest part is accepting the TRUTH.
The truth being that our credit is either bad or great. It is alright if you are not where you want to be, most of us are not either. What is important is that we are taking the proper steps to guarantee a better future. Some of us are closer to our goals and others are years away. It’s just that plain. We won’t know what steps need to be taken until we first take a realistic look at where we are. In doing this first step, we will see what must be done in our financial lives to correct these reports, that are used to evaluate us, and move us to the approved status in everything we do.
Peace and Excellent Credit!
Thursday, August 12, 2010
Credit reports – know your rights taken from www.myfico.com/CreditEducation/Rights/CreditReportRights.aspx
Credit reports – know your rights
Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by credit bureaus. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.
The Fair Credit Reporting Act (FCRA) is designed to help ensure that credit bureaus furnish correct and complete information to businesses to use when evaluating your application.
Your rights under the Fair Credit Reporting Act:
* You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.
* You have the right to know the name of anyone who received your credit report in the last year for most purposes or in the last two years for employment purposes.
* Any company that denies your application must supply the name and address of the credit bureau they contacted, provided the denial was based on information given by the credit bureau.
* You have the right to a free copy of your credit report when your application is denied because of information supplied by the credit bureau. Your request must be made within 60 days of receiving your denial notice.
* If you contest the completeness or accuracy of information in your report, you should file a dispute with the credit bureau and with the company that furnished the information to the bureau. Both the credit bureau and the furnisher of information are legally obligated to investigate your dispute.
* You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.
Wednesday, August 11, 2010
Monday, August 9, 2010
Credit Scores: A game with unknown rules (to some)
Credit Scores: A game with unknown rules (to some)
By Mark Ferguson
Every game has rules that govern who will be the winner and who will be the loser
or runner-up. You can’t use NBA rules or officials for the NFL games, MLB for NHL,
you get the picture. I bring this up because we, the consumer, are participants in a
game that we never knew we were in….that game is called: Credit Scoring. We often
become conscious that we are involved in something bigger than ourselves once we
reach a point were we want, or need a car, home, or credit of some sort.
Who are the officials? What are the Rules? Where do I start?
There are 3 major credit-reporting companies (CRC)
Transunion ( www.transunion.com), Equifax (www.equifax.com),
and Experian (www.experian.com).
Any business that you seek employment, or some form of credit, contacts one or all
of these agencies. They collect data sent to them from any previous, or current, company
or public agency i.e. bankruptcy court or civil court.
Credit Scores are numbers that range from 300 to 850 in a grading system designed to
show the probability of the consumer defaulting on a loan or payment. This number was
designed by a company called Fair Isaac ( www.myfico.com ). Fair Isaac is the industry
standard for credit scoring, but there is another one called :
Vantage Score ( www.vantagescore.com ) this is a newly formed scoring system created
by Transunion, Equifax, and Experian.
Obtaining your credit reports can first be done by going to www.annualcreditreport.com
According to it’s site “AnnualCreditReport.com provides consumers with the secure
means to request and obtain a free credit report once every 12 months from each of the
three nationwide consumer credit reporting companies in accordance with the Fair
and Accurate Credit Transactions Act (FACT Act).”
Contacting these agencies, obtaining a copy of your report and knowing what your credit
score is begins your understanding of the rules to the credit scoring game.
Peace and excellent credit
By Mark Ferguson
Every game has rules that govern who will be the winner and who will be the loser
or runner-up. You can’t use NBA rules or officials for the NFL games, MLB for NHL,
you get the picture. I bring this up because we, the consumer, are participants in a
game that we never knew we were in….that game is called: Credit Scoring. We often
become conscious that we are involved in something bigger than ourselves once we
reach a point were we want, or need a car, home, or credit of some sort.
Who are the officials? What are the Rules? Where do I start?
There are 3 major credit-reporting companies (CRC)
Transunion ( www.transunion.com), Equifax (www.equifax.com),
and Experian (www.experian.com).
Any business that you seek employment, or some form of credit, contacts one or all
of these agencies. They collect data sent to them from any previous, or current, company
or public agency i.e. bankruptcy court or civil court.
Credit Scores are numbers that range from 300 to 850 in a grading system designed to
show the probability of the consumer defaulting on a loan or payment. This number was
designed by a company called Fair Isaac ( www.myfico.com ). Fair Isaac is the industry
standard for credit scoring, but there is another one called :
Vantage Score ( www.vantagescore.com ) this is a newly formed scoring system created
by Transunion, Equifax, and Experian.
Obtaining your credit reports can first be done by going to www.annualcreditreport.com
According to it’s site “AnnualCreditReport.com provides consumers with the secure
means to request and obtain a free credit report once every 12 months from each of the
three nationwide consumer credit reporting companies in accordance with the Fair
and Accurate Credit Transactions Act (FACT Act).”
Contacting these agencies, obtaining a copy of your report and knowing what your credit
score is begins your understanding of the rules to the credit scoring game.
Peace and excellent credit
Sunday, August 8, 2010
3 important phone numbers
Three Phone Numbers to put in your cell phone: 1.800.916.8800 (Transunion), 1.800.493.1058 (Experian), 1.888.265.8829 (Equifax).
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