Credit report > What Makes up my Credit Report?

What Makes up my Credit Report?

Many of us may not know our credit score, some may not even be aware of a credit score, that is until they attempt to apply for credit of some sort, be it a credit card, mortgage or apartment rental. To most, they view our credit score as a one dimensional number, nothing more, hence the reason it is so important for us to become more aware of what our credit score is. People see our credit score as an indication of who we are as people. Frankly, I don't feel that I should be judged for not having paid a bi during my college years, but unless we become proactive regarding our credit report, that is how it will be.
Let's consider the elements that make up our credit report and ultimately decided our credit score. The first factor is payment history.

Basically do you pay your bills on time. The second factor they look at is your outstanding debt. How much do you owe and to whom do you owe it?
The third factor is length of credit history. I feel this category is very biased against young people trying to establish credit. This category leaves them little to no way to get around, they are only so old, therefore could only have a credit history so long, right? We'll get into that later.

Lastly they look at recent inquiries made by different credit companies be it credit cards, mortgages, etc. and what types of credit you have, credit cards, auto loans, fixed or revolving accounts.
Now many of us may look at these categories and think that, for the most part, the factors are out of our control, unable to be manipulated with, but that is untrue! Let's look more at each element of your credit report. The first thing we mentioned was payment history. Now this is somewhat straight forward, but many times they may have misinformation or information that is all together untrue! This is why you should always be aware of what is on your credit report, so that you can make sure it is a true representation of you.

Secondly is your outstanding debt, this factor obviously is something you need to work on yourself to get the debt down, never pay only minimums on your credit cards, if you can help it. Obviously certain circumstances do arise that make this impossible at times, but you need to become more aware of spending in these times. Loan companies like mortgages, and other types of insurance will look at what is known as your debt to income ration, the ideal ratio is 35%. That means your debt should only make up 35% of your total income you bring in.
The third factor is credit history, the somewhat biased factor. Now I said this is something that you can't get around, but you can lengthen your credit history at least how it appears on you credit report.

How? By asking an older person with good great standing and a longer credit history to add you to one of their accounts as a user on their account, It will appear on your credit report as you having that credit card for as long as the older person has had that account open. Pretty tricky huh?
After looking at this information on your credit report you may find some errors, misreported information or negative items on your report and take the initiative to fix your credit report. This may seem like an overwhelming task but it really isn't. If you try to just contact a credit agency they will most likely give you the run around unless you know what you are doing, the best ways to negotiate with them and probably most importantly, what your rights are. There are many resources out there to help you effectively negotiate with credit agencies and you should take advantage of others experience and expertise in this area.

One site, www.creditrepairplan.com helps to take the confusion and overwhelming aspects of this process away. They help give you a calendar to follow, sample letters to get effective responses from creditors and so much more. They show you how to not get your accounts red flagged and cause you an up hill battle to get anything removed.
Your credit report is something that many may not even think about until they need credit. Take the steps now to fix your credit report and in the end, when you really need credit, you will save yourself with lower rates.

Good luck and please, look at your credit report today and make it a true representation of you

Kimberly has been involved in the financial industry for over a decade. She has taken the knowledge she has gained and launched a campaign to help inform consumers about different financial topics.

Get A Truly Free Credit Report Every Four Months

There is no need to pay for a credit report. You can get a free credit report just by going to annualcreditreport.com or by calling 1-877-322-8228 toll free. You can also print out an online form and mail it. Postage would be the only cost you would ever incur.

The federal government stepped in and required the three major credit bureaus in the US to provide a free credit report to everyone. Equifax, Experian and TransUnion are obligated to provide you with a free report once every year.

However, you must ask for it.

Merely go to the website every four months and ask one of the credit bureaus for a free report. Why would you do it any other way?

Do not make the mistake of going directly to the credit bureaus and asking for a free report. You can only get a truly free report from the above sources. You may see other offers for free credit reports, but they are not really free.

If you sign up for a credit monitoring service...

Get A Truly Free Credit Report Every Four Months

Credit report > Get A Truly Free Credit Report Every Four Months

Easy Credit Repair Done Yourself

We all know that credit is important, but what should we do if we are in need of credit repair? I know if were to find that my credit was in trouble, I would want to solve the problem myself rather than pay someone to do it. Credit repair is a serious thing since your credit determines so much of your life in today's world. Credit can effect your ability to buy a home, rent an apartment, buy a car, or even finance your new washer and dryer. That is why you should take credit repair very seriously. There are some steps you can take to help yourself by fixing your credit problems yourself.
The first thing you will need to do is find out if you even need credit repair.

To do that you will need to get your hands on a copy of your credit report. That should not be difficult, since the government mandates that you are allowed to obtain one free copy of your credit report annually. You just have to ask the right people. You can either check out the website for the Federal Trade...

Easy Credit Repair Done Yourself

Credit report > Easy Credit Repair Done Yourself

Credit Scores: How Are They Calculated?

Copyright 2006 Edward Vegliante

Most people know that credit scores determine what and how much you can borrow from lenders, but very few are actually knowledgeable about how credit scores are calculated. When you attempt to borrow money from a financial institution or to obtain a credit card, the financial companies retrieve a copy of your credit report, which contains a score that qualifies (or disqualifies) you for the loan or line of credit.

Credit scores range from 340 to 850, and are used to determine the risk lenders take on when they give you money or credit. An individual with a credit score of 480 will pose a much larger risk to the lender than an individual with a credit score of 700. If you don't know your credit score, it might be a good idea to find out.

The three credit bureaus - Equifax, Transunion and Experian ? use a special type of software that uses the information in your credit report to generate a numerical score. Credit scores...

Credit Scores: How Are They Calculated?

Credit report > Credit Scores: How Are They Calculated?

3 Major Credit Bureaus – Which One Should I Contact?

There are 3 major credit bureaus that have information on your regarding your credit history. Anyone that has ever applied for a loan or credit of any kind has a file at one of the 3 major credit bureaus. Since merchants usually report to only one of the 3 major credit bureaus, you may have to request a free report from all three to get an overall look at your credit report.

To request a free credit report from either or all of the three major credit bureaus, all you have to do is to request a free report online. You can also send the request by mail and you have to provide all your personal information.

There are sites that will charge you for a credit report from one of the 3 major credit bureaus, but it is necessary for you to know that by law you are entitled to one free credit report a year. You should contact the credit bureau directly to get your free report.

When you do receive your credit report from the 3 major credit bureaus there are...

3 Major Credit Bureaus – Which One Should I Contact?