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|  | Where do credit reports come from? | | | | Credit reports are compiled by credit bureaus— private, for-profit companies that gather information about your credit history and sell it to any number of businesses that are allowed to see your credit report: banks, mortgage lenders, credit unions, credit card companies, department stores, insurance companies, landlords, and employers.
Credit bureaus get most of their data from creditors. They also search court records for lawsuits, judgments, and bankruptcy filings. And they go through county records to find recorded liens (legal claims).
Credit reports include noncredit data such as names you previously went by, past and present addresses, Social Security number, employment history, and even marriages and divorces. Credit data includes the names of your creditors, type and number of each account, when each account was opened, your payment history, your credit limit or the original amount of a loan, and your current balance. The report will show if an account has been turned over to a collection agency or is in dispute.
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| | | How is my credit score calculated ? | | | | Approximately 35% of your credit score is affected by your payment history.
For example, late payments,collections,charge offs, bankruptcies, judgments and liens will lower your score. And it is all time based. The older the information, the less it contributes to your scores. Usually the two most recent years hurt credit scores the most.
About 30% of your score is affected by utilization.
It is better to have several accounts with low balances distributed among them than have fewer accounts with almost at the credit limit balances. Companies that issue credit crads, loans and mortgages call this a high ratio.
About 15% of your score is affected by your established credit history.
The longer you maintain open accounts with creditors the better.
About 10% of your score is affected by credit inquiries and new credit.
Applying for credit especially unnecessary credit is going to hurt your score. Every time you apply it appears on your credit report and this looks negative to the companies issuing credit.
About 10% iof your score is affected by your mix of credit.
Use different types of credit for example, revolving,installment,auto,credit cards,mortgage.
Keep in mind that different factors affect your score as well. Use your credit cards wisely and always pay on time.
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| | | Why did my interest rate jump up so high? | | | | When you use your credit card you must be very careful that you comform to the card companies rules which you agreed to when you applied for the card. The credit card companies are in this to make money so they use every opportunity they can to get more money out of their clients. If you make a late payment or go over your credit limit you are in "default". This means that your interest rate goes to the default rate which in many cases is over 20% sometimes approaching 29%. This rate can stay in effect especially if you carry a balance for 6 months to a year. So make sure you pay on time and that you do not go over the limit. Many credit card companies allow you to set a email alert when you approach your credit limit when you maintain your credit card account online. | | | | | |
| | | Why do some credit card companies charge annual fees for some cards and not others? | | | | This is an often asked question. Some credit card companies offer such a wide variety of cards, cash back cards, zero percent balance transfer offers, airline milage and a wide array of offers. They also offer no annual fee cards just be careful of any offer that sounds to good to be true. Sometimes the no annual fee card could carry a high interest rate which is fine for someone who pays their balance of in full every month, but if you carry a balance from month to month you have to calculate the difference to see which card is right for you. | | | | | |
| | | How do you reestablish your credit if you have bad credit or a bankruptcy? | | | | There are many credit card companies that offer people with bad or no credit the opportunity to establish or reestablish credit. Either with a secured credit card, where you deposit money in a savings account with the card issuer and the amount you deposit becomes your credit limit or they give you a small credit line and see how you charge and make payments and usually if you pay ontime they will slaoly raise your limit. | | | | | |
| | | How to get the lowest interest rate card? | | | | Credit card companies look at your payment pattern, how much of a balance you carry inratio to your credit line and if you have ever paid late or gone over the limit. These factors are very important in determing your interest rate. If you have any questions you can call your credit card compay for details. You can always ask the credit card comapnies for a lower rate or look for cards that have zero percent balance transfer offers. | | | | | |
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