A No-Brainer Way Of Getting Credit And Credit Cards
What Is Your Credit Rating Now?
If you have any charge accounts now, or have ever borrowed from the bank to buy a car, or if you ar paying on a mortgage, there is credit information on you.
Up until a few years ago, you could only guess at...
Credit Card Traps: How To Spot Them On The Spot!
They arrive in your mail - a conspicuous looking mail piece from some "official looking" bank claiming that you have been Pre-Approved for a Mastercard or VISA credit card.
Of course, you don't have to have any credit. You can even have bad...
Debt consolidation – Options for Reducing Credit Card Costs
Americans are using credit cards more than at any time in history, and credit card companies are reaping record profits. One of the reasons that the credit card industry is so profitable is that so many of us use our credit cards unwisely. If you...
Fixing Your Credit Score Doesn't Have To Cost You
Credit repair advertisements claim to guarantee a quick fix on your credit report. They promise for a fee (not always disclosed at first) to clean up your credit history so that you can qualify for a new home, car, insurance, a job, or premium...
Tips for Finding the Best Credit Card Rates
If you are interested in getting a credit card, you probably
want the best rate you can get. There are a lot of different
credit card companies that offer varying rates. In order for
you to decide which credit card company to select, you...
What Is Credit and How Does It Work?
Credit is a prettier word for debt. When you obtain credit you are borrowing money, or getting the right to access money (like a credit card, for example), and you agree to pay back the person or company that loaned you that money. In these type transactions, you are the "borrower" or "debtor" and the person or company who lent you the money is the "creditor". Part of the terms of the loan is the interest amount that you will pay for the right to use the creditor's money. Interest is simply money that you pay for the right to borrow money.
When you make a credit transaction, you are creating a debt that you are legally obligated to pay back. The most common types of credit transaction are loans and credit card purchases.
How do creditors decide whether or not to lend me money?
Creditors make decisions about whether or not to lend you money based, in part, upon a profile of your past credit performance that is kept in files that are maintained by companies known as "Credit Reporting Agencies" (CRA's) or "Credit Bureaus" (CB's).
How do credit bureaus work?
Before credit bureaus came into existence, most creditors kept individual records on their relationships with borrowers and did not share that information with anyone else. If you needed credit from a company that had no history of credit dealings with you then you would provide them with a list of companies that you had already done business with and they would write each company to find out how you had performed under your agreement. As credit lending grew, this process became cumbersome and credit bureaus were formed to act as central clearinghouses.
Credit bureaus collect information about your payment history from their member
companies. Member companies are creditors who have an agreement with the credit bureau to report their credit experiences with you.
The credit bureau accumulates all of this information and stores it in a computer database. The bureau makes the information in this database available to other member companies who are considering granting you credit.
The credit bureau is an impartial reporting agency. It does not make a decision whether or not to grant you credit. It only provides the information that it has on you to the creditor who makes the final decision.
The credit bureau makes money by charging the creditors for access to your information.
In the U.S., there are three major Credit Bureaus. They are TransUnion (1-800-888-4213), Equifax (1-800-685-1111), and Experian (1-800-311-4769.) There are many local and regional credit bureaus as well, but most of these obtain their information from the major credit bureaus. Not all creditors belong to all three bureaus. As a result, a creditor may see only a portion of your entire credit history if they do not request reports from the three major bureaus.
Credit can help you or hurt you. It all depends on what you know about credit and how you use your credit. Learn as much as you can and your good credit will always be there to help you. About the Author