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Your Credit Report Plays A Very Important Role

Credit report information
Details about your financial behavior and identification information are contained in your personal credit report. This consumer-friendly report is sometimes called a credit file or a credit history. A copy of your credit report makes it easy for you to understand the information a lender would be seeing if they review your credit history. The most common consumer credit report includes four types of information you may not know.

Public record information
in some states may include overdue child support and also Bankruptcy information can remain on your credit report up to 10 years; unpaid tax liens can remain for up to 15 years; other public record information can remain up to seven years, like judgments.

Credit information
includes specific account information, such as the date opened, credit limit or loan amount, balance and monthly payment and payment pattern. The report also states whether anyone besides you (a joint account holder or cosigner, for example) is responsible for paying the account. Active positive credit information may remain on your report indefinitely, while most negative information remains up to seven years. That is why you should get a copy of your credit report and check it, it can be wrong, do this before applying for a loan.

Requests by others to view your credit history
The credit report will show you who has received information from your credit report and who was given your name during the recent past, as allowed by law. According to the Fair Credit Reporting Act, credit grantors with a permissible purpose may inquire about your credit information without your prior consent. This section includes the date of the inquiry and how long the inquiry will remain on your report. Sometimes there will be more of them then you think.

On your personal credit report ordered directly from the Credit Bureaus, information about those who inquired for the purposes of extending a pre-approved credit offer are included for your information. These inquiries are not revealed to creditors and do not impact your ability to obtain credit. Check your credit report and see how many inquires are present, you may be surprised.

This can include your name, current and previous addresses, telephone number, reported variations of your Social Security number, date of birth, and current and previous employers.

"Statements of dispute" also may be added by you or your creditors. Creditors report temporary dispute statements when you challenge an account's status with them. The statement is no longer reported when the dispute is resolved, usually within 30 days. If you and your creditor cannot agree on an account's status, you may have a "statement of dispute" added to your credit history. The statement will remain for seven years. Make sure you do this if there is an issue, lenders will look at "statement of dispute" and may make a consideration on your behalf.

Whenever you apply for a new credit card, loan or extension of credit, the potential lender will most likely review your credit report before making a decision. You should too! Check it several weeks or even months prior to making a large credit purchase. This will save you time and headaches down the road.

Review your consumer credit report

	Get an easy-to-read summary of your credit accounts and total debt – both existing balances and available limits on-line or from your lender.
	Budget and plan for the future. This is really important to do. You may be surprised how much you spend and what you spend your money on.
	Assure the accuracy of the information reported about your credit. This is especially important when you're getting ready to buy an expensive item such as a car or a new home. Sometimes it can take a while to make amends on the credit report! Valuable time can be lost if you wait.

Correcting errors on your report can be difficult, or can it?
Federal law allows consumers to challenge inaccuracies and correct their credit files, and they encourage consumers to dispute incorrect data. There is no fee. If you believe there is an error on your report, dispute it online for fast resolution. Make sure you have the paperwork as well showing the inaccuracy. The Credit Bureaus will verify your dispute with the source of the data and you will receive a response within 30 days.

Improve your Credit Score? How can I do this? - Create a positive credit history
Your credit report shows how well you managed your financial responsibilities during a certain period of time. People granting you credit will look at this to determine how well you pay your bills before lending you the funds or opening an account. Negative information drops off over time, but the positive information remains. To create a positive credit history, try doing this:

	Print clearly when applying for credit. Messy handwriting like mine, can cause you trouble.
	Consistently use your complete name. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file, this does happen. It is very important to do this.
	Pay your bills on time. Most lenders look at the most recent information on a report. So, if you've paid your accounts on time for the last two to three years, the lender may weigh that more heavily than a series of late payments from five or six years ago. A better track record can also help you if your credit score isn't perfect. Lenders can go off the past showing you paid on time and kept your end of the contract/deal.
	Set up a budget, and live within it. In the age of self-help and empowerment, managing your finances should top your list. It's best to start and keep a good record than trying to amend one later. Remember that old saying "When I do something right, no-one remembers, but when I do something wrong, no-one forgets?"
	Review your credit report 60 to 90 days before making a major purchase (such as a home or car). This way if some information and inaccuracies are present, you have the time to get them corrected. This will prevent you from loosing a low interest rate or having a contract expire on your dream home while you spend time trying to correct unexpected discrepancies. I have seen this happen over the years.

Getting help

If you begin to fall behind on your payments:

	Contact your lenders. Ignoring the situation will only add to your problems. Many lenders will work with you to set up a different payment schedule or interest rate. It never hurts to ask. This can help you in the long run. Most lenders will try to help you catch up and stay there!
	Pay your bills when they're due. If you have an overdue bill, unpaid debt, tax lien or judgment, pay it off. You may find it easier to pay one affordable consolidating loan rather than several separate accounts.
	Stop using credit until your finances are under control. Everyone robs Peter to pay Paul, this is where you can get deeper than you think. Don't climb further down the ladder, climb back up!
	Look to professionals if you need assistance or if you don't have time to develop your own plan. Quality nonprofit credit counseling organizations help consumers understand credit reports, contact creditors, manage debt and set up budgets. You might also find credit management help at your local community college or community center. See what services they can provide, you may be surprised.

Being an educated consumer can always help you
Going to a credit repair clinic will not be of help to you. There is nothing any credit repair clinic can legally do for you – including removing inaccurate credit information – that you can't do for yourself for free, and their fees can be substantial, ranging from hundreds to thousands of dollars. Like an old friend used to tell me all the time, "Knowing is half the battle!"

The Credit Repair Organization Act is a federal law that prohibits credit repair clinics from taking a consumer's money until they have fully completed the services they promised. It also requires such firms to provide consumers with a written contract stating all the services to be provided and the terms and conditions of payment. Consumers also have three days to withdraw from the contract. So make sure you get all the information in writing. Remember, "Knowing is half the battle!" and "Knowledge is the Key to Success."

Email: Chris@ChrisSchlager.com

"My Dedication Makes Your Dreams A Reality!"

For information regarding residential homes, land or farm listings, and current real estate market conditions in the South End, Valley Station, PRP, (Pleasure Ridge Park), Shively, Auburndale, Fairdale, Iroquois Park, Buechel, Highview, Okolona, Fern Creek, Hikes Point, Bullitt County, Hillview and Spencer County, Taylorsville Lake area, Mt. Washington Kentucky, (Ky) state, I can also help you negotiate with *For Sale by Owner-FSBO's to get you the best deals on the residential market.

*Keep in mind that with For Sale by Owners-FSBOs homes, Kentucky State law does not require seller disclosures forms to be used. They are definitely considered "Buyers Beware Properties."

W. Tom Huber Realtors, LLC
3400 Historic Drive
Louisville, KY 40299
Office: (502) 551-6386
Direct Line to Chris: (502) 777-9027