Jul

31

Credit Tip! 2. Pay your bills on time. One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid overdraft fees.

Most consumers are aware that there are companies that keep track of their personal financial transactions - installment loans, mortgages, credit card accounts, bankruptcies and judgements. These items are assembled by the three main credit bureaus into a credit report, which is available upon request by lenders, employers and anyone else with whom a consumer might do business. The credit report tells these people, in a simple, summarized form, whether or not a consumer is worthy of more credit or another loan. What few people realize is that there is another firm that keeps track of the banking transactions by American consumers, and that information is available only to banks in the form of a debit report. You may not have heard of a debit report, but it can affect you in ways you may not even realize and can prevent you from opening a bank account.

Credit Tip! The credit report plays a significant role in the functioning of consumer credit markets. Since loans are advanced based on the credit reports the chances of loans going bad are minimal.

The debit reports are compiled and maintained by a company called ChexSystems. ChexSystems maintains a database of banking transactions by consumers, and creates a “debit score” based on deposits, withdrawals, overdrafts, and whether or not an account has been forcibly closed. Generally speaking, you probably won’t have an entry in ChexSystems’ database unless you have a history of writing bad checks, overdrawing your account too much, or having your account closed by your bank. On the other hand, people sometimes have entries put in the database by error and don’t find out about their entries in the database until their request to open a checking account is denied by their bank. Most banks now use this system, and while some provide a little latitude, most will refuse to do business with anyone who has a negative entry in the database.

Credit Tip! Get a copy of your credit report. Take advantage of the free government credit report from each of the National Consumer Credit Bureaus: Equifax, TransUnion and Equifax.

The system was originally designed simply to keep track of people who wrote bad checks, but over the last three decades it has evolved into something much more elaborate. Consumers are entitled to receive a copy of their report from ChexSystems, but few people request one, as most people have never heard of the company or their product. The debit score for an individual is only available to banks.

Since few people can make do without a bank account these days, it’s worthwhile to at least be aware of this system. We couldn’t find a Website for ChexSystems, but they can be reached by phone at 800-428-9623. In addition, there are numerous third party Websites devoted to helping people who have had problems establishing bank accounts due to problems with their debit report. Just type “ChexSystems help” into your favorite search engine.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.

Popularity: 4%

Jul

28

Credit Tip! Education loans are also sanctioned by colleges, universities, and other institutions based on your credit report. So, if your kids are planning to go to college and qualify in professional courses then their whole future will depend on your having a �healthy credit report.

When applying for a loan to purchase a car, the lender will want to take a look at a person’s auto credit report. Credit reports tell lenders all they need to know about granting a loan to all applicants. When a person applies for a car, an auto credit report shows the lender what kind of credit or risk score a person has and the likelihood of an individual’s ability to repay the new debt. An auto credit report can tell a lender a great deal about the person applying for a loan including their capacity to repay, the kind of collateral they have and the kind of character the person applying for a loan has.

The single most important thing to understand when making a purchase that requires something like car financing is that your auto credit report will determine exactly the kind of financing you will qualify for and if you can even get car financing. Until a person goes to get a loan to buy a home or needs car financing, they probably didn’t truly understand how important making their credit card and other payments on time would be in determining what they could afford in the future. Auto credit reports are available to all car-financing establishments and well as other credit providing companies and the consumer. Auto credit reports can be viewed for a fee by the consumer before they apply for car financing or they can simply pay a monthly fee to have their credit report monitored by a service that will notify them of any changes.

Credit Tip! Also if you have been denied credit on the basis of information in a credit report, you are entitled to a free copy of your credit report from the credit bureau that supplied the credit report.

Seeking out the best car financing may not be a quick and easy process, but when a person takes on a car loan they will want to find the best rates and the lowest payment based on their auto credit report they can make per month. When car financing is added to monthly car insurance payments, the cost of a new car can add up and the better the car financing, the more affordable a new car can be.

Attorney Prepared Credit Report Repair. Legal And Easy Ways To Repair Your Credit Report, Save Money, Avoid Scams, And More.

When establishing credit, considering the impact a person’s credit history can have on an auto credit report is important in learning how the impact of credit responsibility can impact important needs of the future. Before considering a new car purchase, a look at an individual’s auto credit report can give them an idea of any changes that might need to be made or even the kind of loan they might qualify for.

Credit Tip! Even accurate data in your credit report must be deleted if it’s not verified.

About The Author: Kevin Lynch is the owner of nu Credit Report n’ Repair website, which has tons of resources with a variety of information, news and more.

Popularity: 4%

Jul

25

Credit Tip! The credit report plays a significant role in the functioning of consumer credit markets. Since loans are advanced based on the credit reports the chances of loans going bad are minimal.

Whether you are aware of it or not, credit bureaus have been keeping tabs on you and how you use credit. When it’s time for you to apply for a mortgage, credit card, or personal loan, your credit report is what lenders look at to decide to approve you or not.

Information about you is collected and stored in national repositories. Every time you apply for credit, whether it’s a retail store charge account or an auto loan, the information you provide gets sent to the credit bureaus. When you are late paying a loan, it shows up on your report. If you have ever been in a dispute with a merchant and you refused to pay them, the merchant can report your non-payment to the credit bureaus for all lenders to see.

Credit Tip! 1. Get copies of your credit report–then make sure the information is correct. Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report.

Your credit history is an important part of getting a loan. By getting a glimpse of how you handled debt obligations in the past, lenders can estimate the likelihood that you will pay back their loan in the future.

What’s in your credit report?
Credit reports are chock full of goodies to keep your lender busy. If you have never seen your report, you may be surprised at how much information is actually gathered.

Credit Tip! Send your letter by certified mail, return receipt requested so you can document what the credit reporting agency received. Make sure your letter is dated, and don’t forget to keep copies of everything you send.

Who is Big Brother?
The three major credit bureaus are Equifax, Experian, and Transunion. The information that they have on you may not be identical. One may have accurate records, but another might have an error that can prevent you from getting a loan. Since you do not know which bureau a lender will use to base their approval decision, you should inspect your report from all three bureaus. Equifax offers a 3 in 1 report where you can view your credit report from all three bureaus in a single transaction.

Before you apply for any loan it is wise to review your credit report. This way you can fix any errors before the loan process begins, saving you time and frustration if you get rejected due to a correctable problem caused by big brother and not you.

Jon Galanty is a financial writer for eMoneyCentral.com. Visit http://www.emoneycentral.com to find out more about credit, loans, banking, and to get other great money tips.

Popularity: 4%

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