This Really Helps Your Credit Score

Category: Finance, Credit.

There are several different kinds of information that you will find on your credit report.

The negatives that you will see are if you have a bankruptcy, unpaid tax liens, past due payments, and repossessions. To name a few of the things that you would find is personal Information, negative and positive information, employment, paid closed accounts, credit inquiries, and your previous addresses. Negatives can show on your report for a long time. The positives that you will see on your credit report will be when you pay your bills on time. For paid closed accounts and bankruptcies it is 10 years, for unpaid tax liens it is 15 years, for everything else it is 7 years. This really helps your credit score.

If you have a high credit score then you will have a lower interest rate. Also this helps you to be able to be approved for a loan, mortgages, credit card, etc. Some employers check the applicants credit before considering hiring that person. Although it does not affect the consumers credit score. This shows on the consumers credit report also. When you are repairing your credit there are only a few things that you can do. If you did fall into hard times then you just have to wait for those to fall off.

First of all it takes time. You also need to keep paying your payments on time. Next you need to check your credit report once a year. Doing this will put positives on your report helping your credit score. As a consumer you have the right to request a free credit report once every 12 months. If there is, you need to write to the consumer credit company that reported it and have them investigate the situation.

You need to make sure that there is not inadequate information on you credit report. It helps if you can provide any information to back up that it is not correct. This is a scam. When trying to repair your credit you have to watch out for companies that claim they can repair your credit quickly and that they will be able to take things off of your credit. The only way to take some off is what I mentioned above by writing a letter to the consumer credit report companies. Experian Trans Union Equifax. There are three companies that creditors report to.

The Fair Credit Reporting Act( FCRA) was passed to help protect the consumer. It also protects the privacy of the consumers information given to the consumer credit reporting companies. It makes sure that the credit report companies are accurate in the information they collect and fair in their reports. Amendments are added to continue to set guide lines for the consumer credit reporting companies to follow, insuring the protection of the consumer. Theses amendments put responsibilities on the companies that gather the information for your credit report.