Currently viewing the category: "Credit 101"

Myth #5: Seeking Help In Reparing Credit Is Unlawful

On December 13, 2008 By

Some companies occasionally (and vaguely) suggest that using a third-party violates some law. Sometimes, they’ll send a letter to consumers who have challenged one or more items on their reports that basically accuses them of having sought outside assistance with the problem. Note that they never actually come out and say plainly, “Using outside counsel [...]

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Myth #4: Negative Items Must Remain For 7 Years…

On December 13, 2008 By

That’s sheer and utter balderdash. Even so, consumers hear it every day when they telephone creditors directly: “Sorry, by law that has to remain on your report for seven years.” The next time you hear that, know this: The automaton posing as a customer service representative is either spreading lies or ignorance, neither of which [...]

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Myth #3: Including A Credit Statement Is Helpful…

On December 13, 2008 By

The 100-word statements can only harm the consumer. First, as we’ve discussed, such personal statements are essentially never read by potential creditors anyway since the credit score is the usual qualifying determinant. Second, those statements only m

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Myth #2: Your credit report is reviewed carefully!

On December 13, 2008 By

Consider this myth: Your credit report is reviewed carefully

The problem with that business model (i.e. your credit report is reviewed carefully) is that it isn’t very scalable. Scouring an individual’s credit report takes time, and it also takes skilled (with any luck, that is) human beings to render careful judgments. Unfortunately for fair decision-making, [...]

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Myth #1: The Nature of Credit Bureaus

On December 13, 2008 By

Consider this myth: Credit bureaus are official

Even quasi-governmental agencies, and such vital American institutions work alongside your creditors to keep every adult citizen toeing the financial line.

There’s so much wrong with practically every word of this fantasy that it’s tough for a consumer advocate to know where to begin. To be sure, there [...]

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What is a credit score?

On December 30, 2007 By

What is a credit score?A three digit number that lenders use to decide whether or not they want to lend you money.The higher the score, the better your credit rating. In general, a credit score can range from 300 to 850. Most scores fall within the 600s and 700s. The boundary between a standard loan [...]

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What is a credit report?

On December 30, 2007 By

A consumer credit report is a factual record of an individual’s credit payment history. Its main purpose is to help a lender quickly and objectively decide whether to grant you credit.If you have any type of a charge account, car loan, student loan or home mortgage, then information about you is probably stored in a [...]

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Does it hurt my credit score if I check my own credit report?

On December 29, 2007 By

No, your own requests for your credit report do not affect your credit score. Only those credit report inquiries made by businesses as a result of your applications for credit affect your credit score.It’s perfectly all right – and encouraged – to check your credit report from time to time, especially when you’re preparing for [...]

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How much does it impact my credit score when it is pulled by a credit grantor?

On December 29, 2007 By

This is called a credit inquiry. Anytime a creditor or anyone else accesses your credit report it posts an inquiry. This is a record of who pulled your credit report and on what date. The credit bureaus are required to keep a complete list of all inquirie

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How long does information stay on a consumer credit report?

On December 29, 2007 By

Federal law specifies how long negative information may remain on your credit report. To prevent past errors from haunting you forever, most negative information must be erased after seven years. This includes late payments, accounts that the credit grantor turned over to a collection agency and judgments filed against you in court–even if you later [...]

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