Credit and Credit Reports

By visiting optoutprescreen.com or calling 1-888-5-OPT-OUT (888-567-8688), you can request to opt-out of firm offers for credit or insurance. By filling out one form on this site, you will no longer be included in firm offer lists provided by the four consumer credit reporting companies.

If you have been denied credit because of an "insufficient credit file," keep in mind that not all creditors supply information to credit reporting agencies. Most national department store and bank credit cards are included in your file, but other creditors like utilities, rent, or gas cards may not be. If you have accounts with creditors that do not appear in your credit file, ask the credit reporting agency to add this information to future reports.

If you think there is a mistake in your credit file, the Fair Credit Reporting Act (FCRA) gives you the right to correct them. You need to notify the credit bureau of the dispute, and they must reinvestigate free-of-charge and record the current status of the disputed information, or delete the item from your file. They must do this within a 30-day period beginning on the date on which they receive the notice of your dispute.

Although your creditors may like to keep how a credit report works a mystery, it's really not that complicated. For each credit account on a typical report, you will find: name of creditor, type of account, terms, amount of original debt and/ or credit limit, outstanding balance, and payment history. Most creditors focus on activity in the last 2 years, but information can remain on a report for up to 7 years, and in the case of bankruptcies, up to 10. To get a good tutorial on how a credit report works, check out econsumer.equifax.com, experian.com, or transunion.com.

The interest rate that you get on home and auto financing, and even credit cards is determined in large part by what is contained in your credit report. It's important to make sure the information in your credit report is accurate. Although you can't do anything to change accurate, negative information, you can correct mistakes that may be hurting your rating. To check your credit report, contact the three main national credit reporting agencies: Equifax, (800) 685-1111. https://www.econsumer.equifax.com / Experian, (888) 397-3742. experian.com / Trans Union, (800) 916-8800. transunion.com.

While it may seem like a great deal when a retailer offers a 10% discount on your purchases if you open an account that day, keep in mind that every new account is viewed as an inquiry into your credit, which can lower your credit score slightly. This is because it appears you are looking for more credit. Be especially careful if you are close to applying for major financing such as a car loan, where your credit score plays a large part in determining your rate.

When interviewing for a job, it's good to know what is on your credit report, since employers can check your credit both before they hire you and once you're employed. If there is anything negative on your credit report, it's important that you know, so you are prepared to explain the circumstances if your potential employer asks. If you are turned down for a job because of your credit, the employer must show you the report.

When you request your credit report it's called a "consumer pull" and it does not affect your credit score. Your credit score is only affected when you allow a potential creditor to inquire about your credit. For example, if you are shopping for a new car and let the dealer request a copy of your credit report this can affect your credit score because it indicates you are looking to open new lines of credit.