Posts tagged ‘Common’

The 5 Most Common Credit Report Errors

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National Debt Relief Shares Common Causes of Errors in Credit Reports


Miami, FL (PRWEB) October 20, 2014

National Debt Relief recently shared an article, published on October 18, 2014, with some tips on how to deal with an error in the credit report of consumers. The article, titled “4 Possible Reasons Why You Have A Credit Report Error,” explains some of the most common reasons on how mistakes get into consumers’ credit reports.

The article starts off by explaining the importance of a credit report in the lives of consumers. The reports are the main basis of credit scores that reflect on how financially responsible the person is. The higher the score, the better the standing same as the lower the score, the more they are seen as a risk by lenders.

The article also shares that one in every five consumers could have an error in their credit reports. That means an estimate of 40 million consumers encountered problems with their reports. 5%, or 10 million consumers, had severe credit report mistakes that could make them pay more in terms of loan interest rates.

One reason for these mistakes is probably the own doing of the consumer. The article explains the consumers themselves might have a hand in their credit report mistakes. It could be as simple as writing illegibly on the forms and making sure that contact details are unreadable that prevent billing forms from being delivered.

The article also mentions that the lenders might have caused the error in the credit report. If this happens, it is best for consumers to call the attention on the lender in order for them to launch an investigation. Same goes for when the error was caused by the credit bureau itself, the consumer should report it at once to correct the mistake.

Being a victim of identity theft could be another reason for the mistakes in the credit report. Consumers should alert the lenders and the authorities on this as well. To read the rest of the article, click on this link: http://www.nationaldebtrelief.com/4-possible-reasons-why-you-have-a-credit-report-error/







Common Credit Score Myths

A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. But the bottom line is bad information can cost you money no matter who you get it from.

Fico score ratings are used for most mortgage lending, which means, you need to know what will hurt or help your credit score points. To make it clear, here are some of the most common credit score myths.

* Checking your credit report will hurt your credit score

Checking your own credit report and credit score counts as a soft inquiry and does not go against your score. However, if anyone else like a lender or credit card company is checking your credit report, this is considered a hard inquiry and will generally knock off about 5 credit score points.

The credit score rating system treats multiple inquiries in a 14-day period as just one inquiry. The system ignores all inquiries made within 30 days prior to the day the credit score is computed. So if you want to minimize the damage from credit inquiries, shop for a loan in that short period of time.

* Closing old accounts will improve your credit report score

Sometimes even lenders will tell you to close your old and inactive accounts as a way for improving your credit report score. In most cases, closing old accounts will actually have the opposite effect with the current credit score rating system.

Canceling old credit accounts can actually lower your credit score because it makes your credit history appear shorter. If you want to reduce your levels of available credit, it’s better to reduce or close new accounts instead. Applying for new credit is more likely to lower your score.

* You need to check more than just FICO score rating

If you ever hear this from anyone, consider it a red flag. All of the three major credit reporting bureaus offer FICO credit score ratings using the formula developed by Fair, Isaac. Even though each one gives the scores a different name you only need a fico score rating from the three major credit reporting bureaus.

At Equifax, the FICO score rating is called the Beacon credit score. At TransUnion, it’s called Empirica. At Experian, it’s known as the Experian/Fair, Isaac Risk Model.

The reason each of the three major credit reporting bureaus will have three different scores is because they don’t all share the same data. So when checking your credit report, just make sure it comes from the three major credit reporting bureaus: Experian, Trans Union and Equifax.

Examine your credit reports from all three major credit reporting bureaus before you apply for a big loan like a mortgage. Fix any errors in all three reports before you shop for a loan because it takes time to correct your credit report.

* Credit counseling will hurt your score

The current FICO credit score rating system ignores any reference to credit counseling that may be in your file. The researchers at Fair, Isaac, the company that created the FICO credit scoring rating system, found that people getting credit counseling didn’t default on their debts any more often than anyone else.

However, any late payments you’ve had with creditors will hurt your credit score. Credit counseling can hurt your ability to get a loan because you probably have had trouble paying creditors.

Some lenders will back away if you are in credit counseling. Others may see it differently, but usually will charge you higher interest rates than if you had perfect credit.

The best way to improve your credit report score is paying your bills on time and paying down credit card debt. Check your credit report regularly for any errors and make sure you don’t fall for these common credit score myths.

Copyright © 2005 Credit Repair Facts.com All Rights Reserved.

Credit scores, on the scale assigned by FICO, range from 300 to 850. Who has an 850 credit score and what canyou do to get one? Less than 1 percent of the po…
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New Survey: Many Americans Believe Common Credit Card Myths


Los Angeles, CA (PRWEB) June 14, 2012

The blogosphere has long buzzed with reports that Americans have fallen prey to certain myths about credit cards and personal financefrom the notion that checking your credit report will lower that score to the belief that federal bankruptcy law now prohibits individuals from filing for Chapter 7. But how many people actually believe these falsehoods? A survey published today by CreditDonkey.com, a credit card comparison and education site, shows that on certain topics, sizeable numbers of Americans believe that fiction is indeed fact.

Survey Results: http://www.creditdonkey.com/credit-card-myths.html

On the bright side:


????Almost 92 percent of those surveyed knew that debit cards cannot help build a credit history or rebuild a damaged credit score.

????89.8 percent of those polled also knew that asking a credit card company to lower your credit limit doesnt automatically improve your credit score.

On the darker side:

????Almost 30 percent of respondents thought that credit card debt could no longer be eliminated through Chapter 7 bankruptcy or that the option hasnt been available to individuals since 2005. In truth, individuals can still file for Chapter 7, but must pass a means test to qualify.

????33.4 percent believed the myth that making the minimum payment on a credit card reduces the interest rate on the balance, or stops interest from accruing on the principal until the next billing cycle.

????One pervasive myththat self-checking your own credit report can hurt the scoregenerated the second-highest number of wrong answers in the survey: 36.1 percent of people thought this fallacy was a fact.

????The highest number of mistaken answers came in response to the question, By handling your finances responsibly, you automatically receive good credit scores, with 41.1 percent believing this was true. While handling ones finances responsibly (e.g., paying credit card bills on-time and minimizing amounts owed) is a great start, consumers should regularly check their credit reports to monitor for identity theft and errors that may negatively affect credit scores.

Overall, I was pleasantly surprised at how many people knew their stuff when it came to credit cards, said Charles Tran, founder of CreditDonkey.com. I was especially gratified by the number of people who knew you should check your credit with more than one bureau84.4 percent. Id like to think that CreditDonkey has played a role in helping educate consumers, but obviously we still have work to do. Too many people are still operating under false assumptions.

From May 2 to May 6, 2012 CreditDonkey.com polled 610 Americans using seven multiple choice and true-false questions based on widely reported credit card and personal finance myths.

Visit CreditDonkey.com to view details from the Credit Card Literacy Survey.

CreditDonkey.com publishes credit card reviews, deals and tips to help consumers make informed credit decisions.