Thursday, April 27, 2017
 

Credit Faq

CREDIT MONITORING

Q: What is a credit monitoring service?

A: Your credit is changing constantly and so is your credit report. You need to be aware of all that is going on in terms of your credit. You also need to be aware of any fraud that may take place. You can only be aware by credit monitoring.

Q: What is the importance of credit monitoring service?

A: Best credit monitoring services are the most important if you want to avoid fraud or even if you’ve already become a victim. With the growing identity theft, it is very essential to keep a watch on your credit report. These reports will inform you if any unusual credit activity has taken place, which might indicate a fraud.

Q: How safe is a credit monitoring service?

A: The credit monitoring companies use the latest screening and security techniques which make your personal information very safe and secure. The information that you need to give them while signing up is required for them to identify the genuineness of your identity. Better than just seeing your free credit report gov.

Q: Will signing up for a credit monitoring service affect my credit?

A: No, it does not affect your credit in anyway. In fact, it is the best way to keep track of your credit. The credit agencies too have no issues if your credit is accessed by a credit monitoring company for potential fraud.

Q: What are the expenses involved in credit monitoring service?

A: The prices depend on the kind of service that you want to avail. There are various trial offers, which you can avail. Whatever be the price, the services are reasonably charged to suit your best interest.

Q: How or when do I get alerts from my credit monitoring company?

A: With any activity that affects your credit, you get an alert via text message (SMS) or email from your credit monitoring company. The activities may include opening a new account with the information that you provided to your monitoring company or taking a loan, etc. With the help of these alerts, you can immediately identify if there has been any fraudulent activity and correct the situation instantly.

 

CREDIT REPORT

Q: Why do I need to check my credit report?

A: There are two benefits of checking your free credit report gov regularly: 1. You can protect yourself from identity theft. 2. You can ask for good rates for any loan when you are aware of your credit standing.

Q: How often should I check my credit report?

A: As identity theft is one of the growing federal crimes, you should check your credit report as regularly as you can to be aware of any unusual activity whenever that takes place.

Q: How long will information stay in my credit report?

A: It depends on the type of information.

• Positive information forever unless if agencies want to remove it after 7 years.
• Unpaid taxes for 15 years.
• Bankruptcy for 10 years.
• Other public records and collections for 7 years.
• Inquiries for 2 years.

 

CREDIT SCORE

Q: What is credit score?

A: A credit score is a score calculated based on the data from your credit report. This score is used by lenders to identify your repaying capacity when you apply for any loan.

Q: Which credit score is important?

A: Your credit score depends on the reports of the three major agencies, namely, TransUnion, Equifax and Experian. As these agencies determine the score in different ways depending on your payment of bills, taxes owned and the number of loans or credit cards you own, it is necessary to monitor all the three scores. It is also important as most lenders refer to all the three scores.

Q: How will I be rated depending on my credit score?

A: A credit score of 700 or more is excellent while something around 650 is mediocre and below 600 needs improvement. Credit scores can range anywhere between 350 to 850; and the higher you score, the better is your credit standing.

Q: Does my credit score affect me? How?

A: Yes, your credit score does affect you. Before deciding on extending your credit, your lenders will analyze your score. If your score is weak, your lender might not agree to extend the credit. The better your scores are the greater the possibility that you can ask for favorable loan terms.

Q: Does jointly applying for a loan affect my credit score?

A: Yes, all loans and credit card accounts reflecting your name will affect your credit score.

Q: Will my spouse’s credit affect my credit score?

A: Generally, it does not as it is your individual score. In situations where you add your spouse as an authorized user of your accounts, your credit score will be affected by your spouse.

Q: Will late payment affect my credit score?

A: Yes, late payment affects your credit score negatively. In fact, on-time payments are the best way to improve your credit score.

 

CREDIT BUREAU 

Q: What is a credit bureau?

A: A credit bureau is a consumer reporting agency that collects information and provides the consumer’s credit history to the lenders to whom the consumer applies for credit.

Q: From where do the credit bureaus collect information?

A: The credit bureaus collect information from the consumer’s banks, loans, finance companies, savings, credit unions and also retailers to identify the credit history.

Q: Which are the credit bureaus?

A: There are three major credit bureaus, namely, TransUnion, Equifax and Experian.

Q: Will all three credit bureaus give the same credit report and credit score?

A: No, the three credit bureaus do not give the same report or score. The creditors who report information may not report to all three bureaus. For example, if a particular free credit report gov to TransUnion only, the reports or scores of Equifax and Experian will not reflect that information. Moreover, these credit bureaus do not share information with each other. Thus, each report will be based on the information that the individual bureau has received and so will be different.

Q: Why do I need to check the reports and scores of all three bureaus?

A: As the three bureau reports and scores differ, it is better to avail the reports and scores from all the three credit bureaus. Though your lender or creditor may check only one of the scores, it is better that you are aware of your credit standing based on all the three reports and scores.