Archive for the ‘credit report’ Category

Poor Credit Can Harm Your Chances of Good Employment

Wednesday, October 8th, 2014

Is that fair?  Probably not, but it’s true.

A 2012 survey by the Society of Human Resources Management indicates that as many as 47% of employers check credit before making hiring decisions. The premise is that individuals with poor credit are probably having financial difficulties and so might be more likely to embezzle funds or sell company secrets for a profit.

That has no bearing on your ability to perform a myriad of jobs to an employer’s satisfaction, but it still might have a bearing on whether you’re chosen for the job.

You can deny them the right.

Before a potential employer can check your credit, you must sign giving your permission. You can refuse, but then what are your chances of being hired? Refusal could be (to them) a clear indication that they’ll see something damaging on that report. They may not be able to turn you down based on the refusal, but it’s easy enough to find some other reason to choose a different candidate.

What can potential employers see?

They can’t see your credit scores, but they can see all of your identifying information such as address, date of birth and previous employment information. They can also see your trade lines and credit accounts and take note of the number and nature of inquiries into your report. Finally, they can see things of public record, such as information on collections, foreclosures, bankruptcies, etc.

They’ll also see any mistakes that appear on your credit report:

Credit bureaus are quick to admit that up to 70% of all credit reports contain some kind of error. It may be something simple, like a misspelling of your name, or it may be something serious. For instance, a missed keystroke could put someone else’s collection on your report just because your social security numbers are one digit apart.

“70% of all credit reports contain some kind of error”

That’s one of the reasons why it’s important for every citizen to access their credit reports with regularity, and to read them carefully. When you spot a mistake and report it quickly, it has less time to do damage.

“Thieves can open new accounts completely without your knowledge”

The second reason is identity theft. No one is immune from the threat, and one of the fastest ways to discover it and stop it is by keeping a close watch on your credit accounts and your credit report. Thieves can open new accounts completely without your knowledge. All they have to do is use a bogus address.

So be careful. Get your credit report and read it carefully. If there’s an error or an account you don’t recognize, report it immediately.

Click here to get your report today.

Take Action Today to Repair Bad Credit

Tuesday, September 28th, 2010

More than one quarter of all Americans are now categorized as having “bad credit.” So if you are one of those 43 million consumers whose credit score has fallen below 599, you’re certainly not alone.

But that doesn’t mean you shouldn’t take action to raise your score.

As you know, negative information stays on your credit report for 7 to 10 years. Unless it’s a mistake, there’s nothing you can do to remove it, so you may feel that you just have to live with those low scores and let time run out.

But that’s not altogether true. You can begin raising your scores sooner by using the “dilution effect.”

Every time your credit report shows positive information, it dilutes the effect of the negative information. As long as no new negatives appear, over time the positive reports will begin to over shadow the negatives, and your score will continue rising.

Picture your “blackened” credit report as a cup of strong black coffee. Every time you add a drop of cream in the form of positive information, it becomes lighter and lighter.

If you managed to stay current with one or more accounts in spite of your difficulties, or if you were able to catch up and have been current for several months following some late payments, that’s a good thing. Keep making those payments on time each and every month.

But what if all your accounts went into default or collections?

The only way to dilute the negatives is to open a new account and begin making on-time payments. That’s not an easy thing to do when your credit scores are under 600 – unless you choose a secured credit card.

Secured credit cards require you to deposit the funds to secure your account, so you are in effect financing your own credit. You become your own bank.

That sounds a little bit silly, until you consider that secured credit card accounts are reported to the 3 major credit bureaus. Every time you make an on-time payment, you will be re-establishing yourself as a responsible consumer and your credit scores will rise.

But be careful…

Remember that part of your credit score consists of how much of your available credit you actually use. To get the most benefit, use only 10% of your credit line, but always stay below 30%. Charging to “the max” each month will be a detriment to your scores, even if you pay the bill in full each month.

Why? Because the card will report your credit line and your current balance at the time your statement goes out. If you have a $200 credit line and charge $195 each month, your credit report will continually show a balance of $195.

Once you’ve raised your scores to a level that allows you to qualify for a standard credit card, go ahead and get one. But keep your secured card for a while so that your credit report will show two accounts in good standing.

Remember that just because you have credit available doesn’t mean you need to use it. Your goal in having these cards is to rebuild your credit score, not to overspend.

Even if you get the secured card and don’t use it at all, it will report as open and in good standing, which is a positive on your credit report. So if you don’t trust yourself not to over-spend or to make payments on time, deposit the minimum $200 to get a secured card, then stick it in a drawer or freeze it in a block of ice so you aren’t tempted to use it.

Check your credit report and scores today. If your scores are too low, first go over all the entries to make sure there are no mistakes. If you find mistakes, follow the instructions to correct them.

Then choose a secured credit card and get to work on rebuilding your credit.

credit score affected by title Q & A

Tuesday, September 2nd, 2008


I came across your website, thank goodness for it. If you don’t mind answering a question I would certainly appreciate a response, whose credit score would be affected if someone forecloses a house. Is it the mortgagee’s or the title holder’s or both? The person’s name on the title is not the same person as in the mortgage contract. Would both be affected from the foreclosure?

I look forward to your reply.

Thank you,

Lago from Michigan

Hi Lago,

The person that is on the mortgage is the only person’s credit score that will be affected. If there is a person only on title that individual credit will not be affected what so ever. Typically individuals that have there social security number attached to a debt is what reports to all 3 credit bureaus, not someone that holds title.

Hope this helps.

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Risk Management for your Credit Report

Monday, August 4th, 2008

Risk management is a big part of doing business these days – because filing lawsuits and insurance claims has become almost a hobby for some people.

For many businesses, extensive paperwork tops the list for risk management. It covers things such as outlining job requirements in detail so that no one can claim discrimination for not being hired for a job they can’t do. Hard to imagine, but people in wheel chairs have tried to sue when they aren’t hired for jobs that require tasks such as carrying boxes up and down stairs.

Non-profit organizations have to require volunteers to sign paperwork making themselves responsible for their own safety and promising they won’t sue if they get hurt while volunteering.

Mortgage lenders manage risk by lending only to individuals with high FICO scores, and by requiring anyone with a down payment under 20% to purchase mortgage insurance – which is a very good reason to begin saving for your down payment right now if you’re planning to purchase a home in the future.

Of course, we all know that they let down their guard in past years, ignored some of their own risk management guidelines, and now are facing huge losses as thousands of homes go into foreclosure.

So what does that have to do with your credit report? It needs risk management that you can accomplish in several ways:
· First, by limiting the percentage of available credit you use on each of your credit cards. Keep it under 30% if at all possible.
· Second, by paying all accounts on time.
· And third, by regular monitoring. If you don’t check it often, it could contain information that will send your FICO scores plummeting and prevent you from getting credit you need when you need it.

Imagine your shock if you apply for a mortgage loan and learn that your credit scores are too low because someone, somewhere, mis-entered a number and you have someone else’s unpaid account on your credit report.

Even worse, you could suddenly be hit with the discovery of identity theft. You could have several credit cards and accounts that you don’t even know about – with bills going to an address that doesn’t belong to you.

You won’t know until you apply for a loan – unless you check your credit report regularly.

Why not take a minute and do it right now. Hopefully you’ll find that all is well and you’ll sleep better tonight. And if all is not well, you’ll be thankful that you’ve found out now and can take the necessary steps to correct all errors long before you need that credit.

Author: Marte is your on-line resource for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How to Buy a Home When Your Credit Report is Negative

Friday, August 1st, 2008

Obviously, you won’t be able to walk into your local mortgage company office and get a loan unless your credit score is exceptional and your verifiable income shows that you can comfortably make the payments.

Gone are the days of “sub-prime” mortgages, and gone are the days of “stated income” for borrowers with high credit scores. Gone are the offers of “zero down” loans and creative financing options that allowed sellers to carry back a note for part of your down payment.

Lenders are being darned careful right now.

So what can you do if you want to begin building equity in a home – but your credit score is marginal and available funds for a down payment are scarce?

You can look for lease to own properties, and seller-financed homes.

Borrowers aren’t the only ones affected by this crisis – homeowners who need to sell are also in a bind, because the pool of buyers who will qualify for loans is getting smaller and smaller as lenders tighten their requirements.

Thus, those who can will begin entertaining the idea of seller financing and lease to own arrangements.

This could be good news for prospective homeowners, but it could also mean that home ownership will cost more. Traditionally, seller financing comes with a higher interest rate than those we’ve seen in the past few years. That means you’ll get less house for the same payment. Also, wary sellers might want a larger down payment than you are able to make.

These sellers will also want to see your credit report, but will likely be a little more flexible than mortgage lenders.

That leaves “rent to own” or “lease-purchase” arrangements. Under these situations, you won’t be on title, so won’t get the tax benefits of home ownership until the purchase is completed. Still, you’ll be locked into a purchase price, and if inflation continues, that could be a good thing.

Also, these sellers won’t be as fussy about your credit score, because they know that if you default, they’ll get the house back immediately rather than having to go through the long and expensive process of foreclosure.

But do be careful. Many “rent to own” properties are owned by companies seeking to take advantage of the current crisis, and their contracts are strict. For instance, they may require you to get a loan and cash them out within a set time frame. If you can’t do it, you’re out of the house and all payments made toward the down payment are kept as “liquidated damages.”

Making regular on-time payments to these companies will help raise your credit score, and the extra you pay will force you to build a down payment, so a lease purchase could be to your benefit.

Just be sure to read the fine print – all of the fine print.

Clearing the Confusion about Inquiries and Your Credit Score

Wednesday, July 30th, 2008

If you’ve ever applied for a mortgage loan, and if your loan officer was on the ball, you were told not to go shopping for a car or furniture for that new house. You were told that looking is fine, but do not give a sales person your Social Security number for any reason.

You were warned that inquiries on your credit report would lower your score, and could even prevent you from getting your mortgage loan.

This is true – and borrowers who are barely squeaking by with a credit score at the lower levels of acceptable can cause themselves to lose out on the mortgage.

At the same time, you should have been told not to withdraw funds from your checking or savings accounts to make a large purchase in cash, because your mortgage lender will check your balances to make sure that you have the required balance in the bank to pay your down payment and have a few months’ payments left over.

These warnings have led many to believe that any and all inquiries will lower your credit score, and that is not true. “Soft” inquiries will not harm you, because they don’t indicate that you’re trying to obtain credit.

These would be inquiries you make yourself, inquiries from potential employers, and inquiries from companies who routinely check credit as a preliminary step before sending out letters soliciting your business. Likewise, an inquiry from a creditor with whom you’re already doing business will not affect you.

These may or may not show up on your report, but don’t worry about them.

Checking your own score periodically is a very good idea – in fact, Fair Isaac, the inventor of the FICO score, recommends that you do so. Checking will allow you to catch errors early on, and will alert you to signs of identity theft – one of which is inquiries from creditors you don’t recognize in cities where you don’t live.

If you live in the Midwest and you see an inquiry from a car dealer in Seattle, it’s time to find out why. “You” may now live in Seattle and not even know it.

When you see such an inquiry, or see something strange – such as an incorrect address for you or your spouse – don’t dismiss it as a mistake. Contact the credit bureau immediately and find out more. Let them know that you may be a victim of identity theft and need the information.

Why not get a copy of your credit report today – right here at

Raise Your Credit Score Through Smart Spending

Tuesday, July 29th, 2008

We’ve already discussed raising your credit score by paying down your debt – and we talked about ways to bring in more income.

The other “best practice” is to simply quit spending so much. You may think you’re already spending as little as possible – that there’s simply no place to make another cut. There’s a slim possibility that you’re right – but it’s very slim. Most of us spend on things we don’t really need.

Adopt a new habit – when considering any purchase that requires use of your credit card, set it aside for a day, or at least for a few hours. A good way to force yourself to do this is to hide your credit cards in a block of ice, so there’s no temptation to just grab the card and go.

Then take a conscious vacation from spending. Set a time frame of say, 30 days, during which you won’t buy anything but groceries and the absolute essentials – like toothpaste.

Now look for “leaks” in your expenses – ways that you spend money without giving it much thought. For instance:
• Lunch. If you work in an office and routinely go out for lunch, you’re wasting as much as $250 per month. Begin “brown-bagging” it and get the double benefit of eating healthier foods while saving money.
• Snacks – if you stop for a soft drink and candy bar or chips on the way home – stop it! They’re bad for your body and your finances both.
• Espresso – do you really need a $5 cup of coffee on your way to work?? If so, get a machine and make it at home before you leave.
• Services you don’t really need: Like 400 channels on your cable TV when you really only watch about 3 of them. See if you can get your plan changed – or just drop it entirely and begin using the library to borrow books or movies.
• More airtime on your cell phone plan than you actually use.
• Gasoline. This is such a huge expense now that eliminating a few trips will save you big money. If it’s possible, carpool or take public transport to work. If not, always bundle your errands to do before or after work so you don’t make a special trip out for them.
• Magazines you don’t read. Next time you get a renewal notice, take the money you would have sent for the magazine and send it to your credit card account instead.

If you try, you’ll find even more places where you can cut $1 here, $5 there, and even $100 somewhere else. Stop those financial leaks and you’ll be well on your way to a beautiful credit report.

Credit and Divorce

Sunday, July 27th, 2008

Billy Bob and Sue got a divorce. The decree stated that Billy was responsible for certain joint credit card obligations. So Sue went on with her life not worrying about the credit card debt that was awarded to Billy Bob. Six months later Sue gets a call from the creditors wanting their money for the credit cards she forgot about. Sue told the credit card companies that those debts were awarded to her husband in a divorce decree. The creditor stated that they were not involved in the decree and she was still legally obligated to pay the joint accounts. Sue later found out that late payments appeared on her once spotless credit report.

If you are going through a divorce or contemplating on going through one-you might want to take the time to understand credit and the issues that can arrive as a result of a divorce. Most attorneys don’t explain what could happen if the other party does not pay a bill on a account attached to your social security number.

There are two types of credit accounts.
• Joint Accounts
• Individual

If you are getting ready to apply for credit whether it’s a credit card or a mortgage loan you will be asked to state whether the account is joint or individual.

Joint Credit Accounts Your income, financial assets, and credit history – and your spouse’s – are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don’t pay them can hurt their ex-partner’s credit histories on jointly-held accounts.

Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any “authorized” user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.
Advantages/Disadvantages: If you’re not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse’s income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

With divorce being a common problem these days make sure you get joint accounts that your spouse is responsible for out of your name. If you don’t it could affect you down the road if they decide not to pay the bill.

Author:Mike Clover

Credit Management-I wish someone had told me.

Sunday, July 27th, 2008

Being a lender I see bad credit management all the time. The amount of credit reports I pull; you would be amazed how many people don’t know how to manage their money. I have come to the conclusion that most Americans don’t know the value of a dollar. I am 35 and know for a fact that my generation has been spoiled to the point of no return. My generation is called the generation X.

The newer generations are even worse. They have never gone with out. Their parents just like mine always bought what their kids asked for. This is part of the problem. Our country is extremely rich and we have no idea what it is like to go with out. We have not had rough times since the “Great Depression.” If we want someone these days we just go out and charge it on our credit cards. You cannot turn on TV without someone enticing you with “no payment for 3 years.” Its kind of the “buy now pay later philosophy.”

I honestly think our kids and parents need to get back to the basics. Just because you have the money does not mean your kids need it. Buying your kids everything they want is a bad choice. All this teaches them is they can have just about anything they want.

The problem is once your kids get out on there own they will not know how to manage their money. This is because parents have bought their kids what ever they want most of there young lives.

Once your kids are gone off to college, they will have a rude awaking. Instead of saying no they will buy and get into debt to get what they want.

Most of this education starts at home by saying NO, you don’t need that Xbox. No you don’t need that etc……….

The next step is to have mandatory credit education classes in school and college. These classes should teach young people how to manage there credit, credit cards, money and overall credit report education. They also need to teach the affects of bad credit management and how it will affect your life for 7 years.

If this starts taking place I personally believe that there would be less bankruptcy, less credit card debt, because in the end its just stuff.

Author:Mike Clover

What to Do If You’re a Victim of Identity Theft… Part I

Friday, July 25th, 2008

Right after you stop reeling from the shock, it’s time to take action.

You may have learned of the identity theft by examining your credit report and finding inquiries from unfamiliar companies (a sign that someone has applied for credit in your name) or by finding debts or new credit accounts that you don’t recognize.

If instead you learned of it only when debt collectors began to call, get a copy of your report immediately. You’ll need it when you take the next step: Contacting law enforcement.

You must file a formal report, because you’ll need a copy of the report when you contact the credit bureaus and respond to debt collectors. Your police report should include all the fraudulent accounts you identify when examining your credit report.

• Your Local Police Department
• FTC 800-438-4338 or 800-ID THEFT

As you begin this process, keep a detailed log of everything you do, everyone you speak with, and what is said by both parties. Keep track of every expense you incur, as well. Put all receipts in one safe place for easy access later. In your log, make note of the emotional stress and how it is affecting your work and your personal relationships. Depending upon circumstances, your actual expenses and your time loss could be tax-deductible.

Now contact the credit bureaus. Notify one of the credit bureau fraud units that you are a victim of Identity Theft. That Bureau will take responsibility for telling the other two bureaus. (Call Equifax: 800-525-6285; Experian: 888-397-3742; or Trans Union: 800-680-7289) Next:

• Tell the Bureaus to flag your credit report with a fraud alert
• Send a dispute letter, accompanied by the police report and the FTC fraud affidavit specifying which accounts are fraudulent.
• Subscribe to the bureau’s monitoring services
• Consider signing up for Trusted ID services – which will block your credit report so only you can use it.
• Ask the Bureaus to contact the creditors and let them know that fraudulent activities have taken place.

You’ll probably have to deal with debt collectors. Here’s how to handle them:
• Get the collector’s name, company name, address, and phone number – noted in your detailed log. Inform the caller that you are recording this information, along with the date and time.
• Inform the collection agency you ar a victim of Identity Theft
• Provide the FTC uniform fraud affidavit
• Ask for the name and number of the credit issuer they’re representing
• Send the debt collector a letter, stating that you do not owe this debt and that the account is closed.
• Request in writing that the account be flagged as fraudulent and ask that it be removed from your credit report.

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.