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Posted in Howto on 01/31/2011 06:02 pm by admin
Archive for January, 2011
Credit Reporting: How Does It Work?
Posted in Finance on 01/30/2011 06:12 am by admin
Alan Barnes asked:
In order to determine a consumer’s credit worthiness, creditors and lending institutions have come to depend on credit reporting agencies. Credit reporting agencies supply individual reports that provide consumer specific information for lending purposes. With the advent of technology, most creditors now have automated systems that provide them direct access to credit reporting agencies. In most cases, credit agencies or credit bureaus provide personal, legal, and account history related information. In recent years it has become more common for lending institutions to use multiple credit reports to meet lending requirements. Besides meeting lending requirements, multiple reports also provide additional security measures. Using multiple sources for reporting purposes provides a more comprehensive and complete background check on a consumer’s credit and spending history.
Traditionally, when a consumer submits a credit application, creditors forward that information to the credit reporting agencies. This is how credit reporting agencies are able to accumulate personal information on people. This information often includes items such as the consumer’s name, address, social security number, employment information, marital status, telephone number, and possibly income. By utilizing credit reports, lending institutions are able to cross-reference the information that a consumer provides on a credit application with the information that the credit reporting agencies have on file. Some credit reporting agencies even hire companies and or contractors to research and verify that the information entered on a consumer’s credit application is accurate and verifiable.
Most credit accounts, on a monthly basis, are reported to credit reporting agencies; these reports will reflect a payment and account history for all credit related accounts. The information that a credit reporting agency provides is known to as a tradeline. On a credit report, there is traditionally a tradeline for every creditor that reports account information to the bureaus.
As I mentioned earlier, not all lending institutions report to the credit bureaus; however, most do. The major credit bureaus provide reports which include a consumer’s payment history in 30-day intervals. This is due to the fact that most consumer billing cycles follow a similar payment pattern. Most lending institutions have a proprietary set of rules and guidelines that govern the thresholds at which they report consumers as being delinquent in their payments. It has been my experience that some lenders have gone as far as not report delinquency until the consumer’s account reaches 60 days past due. Other lenders are much stricter in their guidelines and will report delinquency at 30 days past due. Traditionally, a credit report will provide a detailed summary of any delinquency you have had with your creditors. This is measured by the number of times that you fallen more than 30, 60, 90, and 120 days past due. Many of these credit reports use a rating system that assigns a specific status code to each 30-day period of missed payments.
In the consumer lending industry, this method is often referred to as the simple method. For example, an R-1 rating represents a consumer account that is current or an account that was paid properly and that is in good standing; an R-2 rating indicates that payments were paid 30 days or more after the due date but less than 60 days after the original due date; an R-3 rating represents that the bill was paid 60 or more days after the original due date but is less than 90 days past due; an R-4 rating shows that a consumer has fallen 90 or more days past due but is less than 120 days delinquent; an R-5 rating indicates that a consumer has fallen 120 or more days past their original due date; an R-7 rating shows that a creditor was forced to repossess collateral on the account and an R-8 rating means that the account was referred to collections in an attempt to recoup payment. The rating of R-9 is traditionally used to show that a debt or debts have been discharged through bankruptcy, have been repossessed or foreclosed upon, or are currently in collections.
David
In order to determine a consumer’s credit worthiness, creditors and lending institutions have come to depend on credit reporting agencies. Credit reporting agencies supply individual reports that provide consumer specific information for lending purposes. With the advent of technology, most creditors now have automated systems that provide them direct access to credit reporting agencies. In most cases, credit agencies or credit bureaus provide personal, legal, and account history related information. In recent years it has become more common for lending institutions to use multiple credit reports to meet lending requirements. Besides meeting lending requirements, multiple reports also provide additional security measures. Using multiple sources for reporting purposes provides a more comprehensive and complete background check on a consumer’s credit and spending history.
Traditionally, when a consumer submits a credit application, creditors forward that information to the credit reporting agencies. This is how credit reporting agencies are able to accumulate personal information on people. This information often includes items such as the consumer’s name, address, social security number, employment information, marital status, telephone number, and possibly income. By utilizing credit reports, lending institutions are able to cross-reference the information that a consumer provides on a credit application with the information that the credit reporting agencies have on file. Some credit reporting agencies even hire companies and or contractors to research and verify that the information entered on a consumer’s credit application is accurate and verifiable.
Most credit accounts, on a monthly basis, are reported to credit reporting agencies; these reports will reflect a payment and account history for all credit related accounts. The information that a credit reporting agency provides is known to as a tradeline. On a credit report, there is traditionally a tradeline for every creditor that reports account information to the bureaus.
As I mentioned earlier, not all lending institutions report to the credit bureaus; however, most do. The major credit bureaus provide reports which include a consumer’s payment history in 30-day intervals. This is due to the fact that most consumer billing cycles follow a similar payment pattern. Most lending institutions have a proprietary set of rules and guidelines that govern the thresholds at which they report consumers as being delinquent in their payments. It has been my experience that some lenders have gone as far as not report delinquency until the consumer’s account reaches 60 days past due. Other lenders are much stricter in their guidelines and will report delinquency at 30 days past due. Traditionally, a credit report will provide a detailed summary of any delinquency you have had with your creditors. This is measured by the number of times that you fallen more than 30, 60, 90, and 120 days past due. Many of these credit reports use a rating system that assigns a specific status code to each 30-day period of missed payments.
In the consumer lending industry, this method is often referred to as the simple method. For example, an R-1 rating represents a consumer account that is current or an account that was paid properly and that is in good standing; an R-2 rating indicates that payments were paid 30 days or more after the due date but less than 60 days after the original due date; an R-3 rating represents that the bill was paid 60 or more days after the original due date but is less than 90 days past due; an R-4 rating shows that a consumer has fallen 90 or more days past due but is less than 120 days delinquent; an R-5 rating indicates that a consumer has fallen 120 or more days past their original due date; an R-7 rating shows that a creditor was forced to repossess collateral on the account and an R-8 rating means that the account was referred to collections in an attempt to recoup payment. The rating of R-9 is traditionally used to show that a debt or debts have been discharged through bankruptcy, have been repossessed or foreclosed upon, or are currently in collections.
David
What Are The Advantages Of Administering Consumer Credit Reports?
Posted in Internet Accounts on 01/22/2011 05:34 pm by admin
Checking Your Credit Score: 7 Common Consumer Questions
Posted in States Postal Inspection Service on 01/22/2011 04:09 pm by admin
The Best Credit Report Company?
Posted in Finance on 01/22/2011 11:35 am by admin
Justin Fox asked:
Finding the best credit report company can get you on the fast track to improving your credit standing and getting cheaper loans, credit cards and even the ability to apply for rental properties and telephones without the hassle of being rejected or charged too much. So what should you look out for when choosing a company to help you improve your credit?
Getting Your Credit Reports – any good credit report company will apply on your behalf to the main three consumer reporting bureaus (Equifax, Experian, and TransUnion), so that you can see your annual credit report and have the items on your report listed. The company you choose should be able to present your reports in an easy-to-read manner with explanation of what your credit report means for you and how it can be improved.
Analysing Your Credit Report – the best credit report companies will always offer to assist you in determining the problems of your credit report – this can sometimes cause problems as many people don’t know how to properly read their credit report. By analysing your credit report a good credit report company will be able to identify areas for potential improvement on your credit score. Knowing where to focus your efforts in your attempt to improve your credit will obviously be a great help and a real time saver for you.
Fixing Your Credit – here is where having the best credit report company is really important. A good credit report company will be able to quickly and easily challenge each of the incorrect or inaccurate claims on your credit report with the relevant authority and ensure the best possible chance of having those items removed or altered on your credit report. A good credit report company will do this on your behalf by writing the appropriate correspondence and making sure it is seen by the right people.
There are several companies that you can employ to help you with all of this and most are reputable and efficient at their job. When deciding which one to go with, select the level of service you need and take it from there.
Josephine
Finding the best credit report company can get you on the fast track to improving your credit standing and getting cheaper loans, credit cards and even the ability to apply for rental properties and telephones without the hassle of being rejected or charged too much. So what should you look out for when choosing a company to help you improve your credit?
Getting Your Credit Reports – any good credit report company will apply on your behalf to the main three consumer reporting bureaus (Equifax, Experian, and TransUnion), so that you can see your annual credit report and have the items on your report listed. The company you choose should be able to present your reports in an easy-to-read manner with explanation of what your credit report means for you and how it can be improved.
Analysing Your Credit Report – the best credit report companies will always offer to assist you in determining the problems of your credit report – this can sometimes cause problems as many people don’t know how to properly read their credit report. By analysing your credit report a good credit report company will be able to identify areas for potential improvement on your credit score. Knowing where to focus your efforts in your attempt to improve your credit will obviously be a great help and a real time saver for you.
Fixing Your Credit – here is where having the best credit report company is really important. A good credit report company will be able to quickly and easily challenge each of the incorrect or inaccurate claims on your credit report with the relevant authority and ensure the best possible chance of having those items removed or altered on your credit report. A good credit report company will do this on your behalf by writing the appropriate correspondence and making sure it is seen by the right people.
There are several companies that you can employ to help you with all of this and most are reputable and efficient at their job. When deciding which one to go with, select the level of service you need and take it from there.
Josephine
Help to Fix Credit Report Errors
Posted in Finance on 01/22/2011 12:12 am by admin
Harrine Freeman asked:
Agencies that enforce the rules and regulations of the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) and the Federal Trade Commission (FTC) have proposed new rules to promote the accuracy and integrity of information provided to consumer credit reporting agencies (CRAs or credit bureaus) and to allow customers to dispute inaccurate information directly with them.
Sometimes credit report errors can be major. Major errors can cause a consumer’s credit score to drop anywhere from 50-150 points. Seventy-five percent of credit reports contain at least one major mistake. This will greatly help consumers who have been victimized by employers, creditors, mortgage companies and banking industry professionals due to errors on their credit report they were unable to get corrected.
Under the newly proposed rules, data furnishers or those who provide consumer personal information to CRAs must develop practical policies and procedures to ensure that the information they are providing is accurate. The new rules outline instances when additional details may be necessary to keep the information that consumer credit reporting agencies provide from creating misleading impressions about a consumer’s creditworthiness.
Under the new rules, instead of filing a dispute only with CRAs, consumers can now take their complaint directly to furnishers, and furnishers are required to investigate the complaint.
If you currently have errors on your credit report that you have not been able to resolve file a written complaint with the FTC against the consumer credit reporting agencies and data furnisher. Make sure you provide supporting documentation to support your complaint.
Ricky
Agencies that enforce the rules and regulations of the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) and the Federal Trade Commission (FTC) have proposed new rules to promote the accuracy and integrity of information provided to consumer credit reporting agencies (CRAs or credit bureaus) and to allow customers to dispute inaccurate information directly with them.
Sometimes credit report errors can be major. Major errors can cause a consumer’s credit score to drop anywhere from 50-150 points. Seventy-five percent of credit reports contain at least one major mistake. This will greatly help consumers who have been victimized by employers, creditors, mortgage companies and banking industry professionals due to errors on their credit report they were unable to get corrected.
Under the newly proposed rules, data furnishers or those who provide consumer personal information to CRAs must develop practical policies and procedures to ensure that the information they are providing is accurate. The new rules outline instances when additional details may be necessary to keep the information that consumer credit reporting agencies provide from creating misleading impressions about a consumer’s creditworthiness.
Under the new rules, instead of filing a dispute only with CRAs, consumers can now take their complaint directly to furnishers, and furnishers are required to investigate the complaint.
If you currently have errors on your credit report that you have not been able to resolve file a written complaint with the FTC against the consumer credit reporting agencies and data furnisher. Make sure you provide supporting documentation to support your complaint.
Ricky
Consumer Credit Law – Your Credit Report is Wrong!
Posted in Auto Insurance Rates on 01/20/2011 07:08 pm by admin
How To Remove Collection Accounts From Credit Report
Posted in Finance on 01/18/2011 02:31 am by admin
Hector Milla asked:
Collection accounts are usually seriously past due accounts that have been transferred to an attorney or a collection agency. These collection accounts can remain on your credit report for seven years from the date of the first missed payment. These collections accounts have a negative impact on your credit report and will hurt your chances of getting a loan or additional credit.
A study released by the U.S. Public Interest Research Group found that 79% of consumer credit reports contained an error or mistake. It is possible that you may have a collection account on your credit score by mistake. Checking your report from the credit bureaus on a regular basis is one of the best things you can do for your financial health. If you spot a collection account that appears to be listed on your report in error, you need to dispute it immediately. If the credit bureau cannot prove or verify the collection account, it will be removed from your file. You can challenge any negative item on your report at any time; if the item cannot be verified in a specified amount of time, it will be deleted.
If a collection item on your credit report is valid, you can attempt to negotiate with the creditor. If the amount is small and you have the available funds, the best thing to do is to pay the full amount. If the amount is large, you can trying paying a percentage of the total and see if the collection agency will accept this to settle the account. If you debts are excessive, you may need to look for the services of a debt settlement company.
If you decide to utilize the services of a debt settlement company, make certain to do your due diligence on any company you are considering. You should check to see if they are accredited by the Association of Settlement Companies (TASC). Find out all costs and fees before entering into any agreement with a company as they can often be more than some people can afford. You need to realize that once you begin a debt settlement program, your credit score will most likely go down before it improves. Checking the Better Business Bureau to see if there are any complaints against a particular business is also advisable. If there are complaints you should take a few moments to see if they were resolved in a manner satisfactory to the consumer. Following these steps will help you make an informed choice before starting the debt settlement process to fix your credit report.
Excessive debt is a problem for millions of people today. If you are worried about your credit score, your initial task should be to obtain copies of your credit reports. Write to Experian, Equifax, and TransUnion, or try freecreditreport.com, credit report.com, or freecreditreport360.com to obtain copies of your credit report. Knowing what appears on your this report is essential to staying financially healthy in today’s world.
Shawn
Collection accounts are usually seriously past due accounts that have been transferred to an attorney or a collection agency. These collection accounts can remain on your credit report for seven years from the date of the first missed payment. These collections accounts have a negative impact on your credit report and will hurt your chances of getting a loan or additional credit.
A study released by the U.S. Public Interest Research Group found that 79% of consumer credit reports contained an error or mistake. It is possible that you may have a collection account on your credit score by mistake. Checking your report from the credit bureaus on a regular basis is one of the best things you can do for your financial health. If you spot a collection account that appears to be listed on your report in error, you need to dispute it immediately. If the credit bureau cannot prove or verify the collection account, it will be removed from your file. You can challenge any negative item on your report at any time; if the item cannot be verified in a specified amount of time, it will be deleted.
If a collection item on your credit report is valid, you can attempt to negotiate with the creditor. If the amount is small and you have the available funds, the best thing to do is to pay the full amount. If the amount is large, you can trying paying a percentage of the total and see if the collection agency will accept this to settle the account. If you debts are excessive, you may need to look for the services of a debt settlement company.
If you decide to utilize the services of a debt settlement company, make certain to do your due diligence on any company you are considering. You should check to see if they are accredited by the Association of Settlement Companies (TASC). Find out all costs and fees before entering into any agreement with a company as they can often be more than some people can afford. You need to realize that once you begin a debt settlement program, your credit score will most likely go down before it improves. Checking the Better Business Bureau to see if there are any complaints against a particular business is also advisable. If there are complaints you should take a few moments to see if they were resolved in a manner satisfactory to the consumer. Following these steps will help you make an informed choice before starting the debt settlement process to fix your credit report.
Excessive debt is a problem for millions of people today. If you are worried about your credit score, your initial task should be to obtain copies of your credit reports. Write to Experian, Equifax, and TransUnion, or try freecreditreport.com, credit report.com, or freecreditreport360.com to obtain copies of your credit report. Knowing what appears on your this report is essential to staying financially healthy in today’s world.
Shawn
Facts About the Fair Credit Reporting Act Every Consumer Should Know
Posted in Get Smart on 01/16/2011 02:48 am by admin
Medical Debt vs Personal – by Monica Charter, Stephen Enriquez, Jecoa Ross, Susana Sandoval
Posted in Education on 01/06/2011 04:56 am by adminUTEP asked:
In our current economy, the last thing anyone wants is more debt. Due to the incredible cost of medical care in our country, however, medical debt is quickly rising. Currently, this type of debt is listed on consumer credit reports, thus affecting the credit ratings of many negatively. Collectors do not differentiate between types of debt and pursue all vigorously. Monica Charter, Stephen Enriquez, Jecoa Ross and Susana Sandoval discuss and advocate for House Bill 3421, which would exclude medical debt from consumer credit reports because unlike consumer debt, people dont choose to have accidents or suffer from disease.
Lloyd