When is the last time you looked at your credit reports?
Were you floored by all the stuff that is on them?
Why are there three of them and where do the credit bureaus get their information anyway?
If you have good credit, then this overflow of information is your best friend, but if you have bad credit, then the idea of even accessing one of these things is pretty likely to make you sick.
So here is what you should know about these "packages" of information to help you not only stay upright when you look at them, but make sense of what they contain.
· There are three main "credit bureaus" which generate your reports: Experian, Trans Union and Equifax. These are the reports that the bulk of your lenders and potential creditors will be looking at. The thing is that these "bureaus" ARE NOT government agencies of any kind. In fact, these are actually for profit corporations and lots of times they wind up getting sued.
· Many of these "credit bureaus" get their information from reports from your creditors, so that loan gets reported to usually at least one credit bureau and that credit card; yep, it is there too. You will also find that there is information such as your employment history, name, address, social security number and date of birth. This is essentially public record, so almost anyone can get it.
· The next things you will find on your credit reports are things like liens, judgments and bankruptcies and foreclosures. These are also public records.
· Remember that we just mentioned that you will find loans and credit cards? These are called trade lines and you will find that these count for a lot of your credit score. The reason? You will find that an account listing includes information such as the date the account was opened, which contributes to your credit history. Then, you will find the amount of your available credit and your balance on the account. This information is essential because you should only be using about 30% of your available credit. You will find your payment history there, too.
Now you hopefully understand a little bit about what shows up on a credit report
Okay, so now you get a little bit about the breakdown, but why do you get the numbers and the scores? Why is some corporation allowed to decide whether or not you get credit?
There is a formula, created by the Fair Isaac Company and this is how your credit score is determined. It takes all of the factors from your credit report and works them into numbers.
The first step in fixing your credit and keeping your scores up has to do with knowing how to read and understand what shows up on a credit report.
The next step is how to remove those items:
Jeremy Maher is providing a free video on how to repair your credit yourself without paying thousands of $$$ to a company. You can watch the video here:
The video is a presentation showing the insider techniques to increase your credit score yourself, if you get a chance watch the video to learn what you can do to improve your credit:
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