With ID theft on the rise, having identity protection through a credit monitoring service is important. Plus, your credit can change daily as creditors and lenders [...]]]> Credit monitoring from CreditReport.com/Monitoring is the only online credit protection method available that ensures ID fraud protection and keeps you up-to-date with any changes made to your credit file.

With ID theft on the rise, having identity protection through a credit monitoring service is important. Plus, your credit can change daily as creditors and lenders constantly provide new information about you to the credit bureaus. If errors on your credit report go unnoticed due to the absence of credit monitoring, they can wreak havoc on your financial future. The more you can stay on top of your report through online credit monitoring, the more you can provide valuable financial protection for yourself.

The credit monitoring services at CreditReport.com/Monitoring provide you with daily credit monitoring. CreditReport.com/Monitoring notifies you via email with a credit monitor report whenever suspicious activity takes place on any of your accounts. For the proper financial protection, it is crucial to understand the importance of credit monitoring. However, just as important is having an understanding of how to properly read your report. On CreditReport.com you can find a wealth of helpful information on what your credit report really means, and how to determine whether or not you have a good or bad credit score. The professional services of CreditReport.com are designed to help you easily take control of your financial future.

More specifically, our credit check monitoring online service works like this: The credit protection service will constantly monitor your credit report for any changes. If suspicious changes do occur, you will be notified via the credit monitoring online service with an email within 24 hours of the activity. The credit monitoring report also alerts you of any suspicious activity quickly to ensure you have adequate ID fraud protection.

Even if your credit is in poor shape, you still need the ID fraud protection offered by credit protection services through CreditReport.com/Monitoring. ID protection and credit protection are particularly important because whether or not your credit record is positive, an ID thief can make it worse by running up credit card bills in your name.

To give you a comprehensive report, the online service available at CreditReport.com provides a thorough overview through TransUnion monitoring. This means that you’ll receive a comprehensive credit line monitoring service through the TransUnion credit bureau.

What’s your Credit Score? Find out FREE!

                          

Before you learn how to read a credit report or understand a credit score, you first need to know what information is in [...]]]> What information is in a credit report? Countless adults in Canada are unsure of their credit score, let alone what they would find on their credit report or how to interpret one.

Before you learn how to read a credit report or understand a credit score, you first need to know what information is in a credit report.

While both credit bureaus in Canada offer easy to read credit reports, the truth is that they are often complicated and hard to understand for the average person. Let’s get started by going over what is on a credit report.

There are many parts to a credit report in Canada. Some are more important than others but each section provides information that employers, banks, finance companies and law enforcement find useful.

Your credit file contains a personal and financial profile of you that includes your identification, employment history and a detailed account of who you owe money to and how well you’re paying them.

On your Canadian credit report you will find the following information:

Personal Information – Personal information is mostly self-explanatory and includes information such as your full name, aliases, social insurance number and address. Along with your name and residence this section of your credit file also contains your employment history and previous employment history.

Credit Score (beacon score) - In Canada your credit score, also known as your beacon score, is one of the most important aspects of your credit file. Anyone with a credit history will have a beacon score between 300 and 900. The higher your credit score, the better. IMPORTANT: A credit score is only visible on a Canadian credit report if the consumer (or business) has purchased both the credit report and credit score.  When you request a free credit report in Canada you will only receive a basic report that does not include your credit score.

Credit Inquiries – Whenever you apply for a loan, someone “pulls” your credit file. This is called an inquiry and it is recorded on your credit report under the section ‘credit inquiries’. Too many inquiries can be a bad thing and can lower your credit score.

Public Records – Bankruptcies, consumer proposals, court judgements and secured loans all report under the public records section of your credit file. If someone registers a lien against you or you take out an auto loan, it will appear here.

Collection Information – If you’ve ever defaulted on a loan or skipped out on a very high cell phone or video store bill, this is where the resulting collection will be registered. If you have not paid a collection, it will report as unpaid. Once you’ve settled the collection your Canadian credit report will update and label the collection paid.

Consumer Statement / Comments – Both Equifax Canada and TransUnion Canada will allow you to add a message to your credit report under this section. Most statements in this section are declarations asking that lenders contact the applicant before granting credit.

Credit Information – This is arguably the most important part of your credit report. In the credit information section of your file you will find a detailed history of your previous and current loans. Each loan has a trade line to describe its status. A credit report trade line shows the name of the lender, credit limit, balance, payment owed, start date, end date and a detailed history of how it’s been paid. If you apply for a loan, this section of your credit report tells the lender what kind of borrower you are and in most cases will be the biggest factor in their decision.

Each area of a credit file houses information that is important to your financial health, credit rating and your identity. In Canada, a good credit score can be the difference between high interest and low interest rates and a secure financial identity can prevent you from being a victim of fraud.

Protected your credit and your identity by knowing what’s on your credit report. Before you apply, check your credit first!

                          

Also, ask them how to transfer your joint debt to the name of [...]]]> It’s important to remember that credit grantors have different policies when it comes to divorced couples and joint accounts. Be sure to contact each of your creditors individually to discuss whether you or your ex-spouse will have ongoing liability for the accounts.

Also, ask them how to transfer your joint debt to the name of the person who will be responsible (usually, this means signing an agreement with the credit grantor to release one of you from liability). The creditors may not agree right away. In fact, they have every right to defer a decision until you prove you can handle the payments alone. Nevertheless, this is a smart step to take to protect yourself from new liability and start reestablishing credit as an individual.

If your spouse runs up large amounts of debt, close whatever accounts you have to prevent future charges as soon as possible. Then inform all creditors, in writing, that you are not responsible for these debts after a certain date. Be sure to keep a copy for your records, and consider sending the original letter via certified mail. While this may not prevent creditors from trying to collect, it does show that you at least attempted to act responsibly. Remember, even if your name is taken off an account, and even if the account is closed to prevent future charges, you might still have legal responsibility to pay existing balances. While this may seem unfair since it was your ex who did the spending, it’s perfectly legal. That’s why it’s important to close your joint accounts as soon as you can.

If you have a good credit history, open new accounts in your individual name. If your joint accounts have balances, obtain individual consolidation loans. Use the individual loans to pay off your joint accounts, then close the joint accounts. You’ll each be solely responsible for paying off your individual loans – and you’ll be safe from having your ex negatively affecting your credit.

                          

1. Paying bills late: One of the biggest factors [...]]]> Because so much depends on your credit record and credit score, you should be aware of the pitfalls that can tarnish your financial reputation. That’s why FDIC Consumer News has compiled this list of common mistakes that can significantly affect your credit history and credit score.

1. Paying bills late: One of the biggest factors in the determination of your credit score is your past payment history. While one or two late payments on your mortgage, credit card or other important obligations over a long period of time may not significantly damage your credit record, if at all, making a habit of this can count against you.

Solution: Consistently pay your bills on time because this indicates you’re a responsible money manager and likely to take your future commitments (such as a loan) seriously. Be especially careful with payments in the months before you apply for a loan, because lenders put more emphasis on your recent payment history.

2. Not paying the minimum amount required: “If you don’t make at least the minimum payment on your credit card or other bills, your creditors will eventually report your account as past due, and that’s a bad mark on your credit history,” says Janet Kincaid, a Senior Consumer Affairs Officer with the FDIC. “Not only that, but paying less than the minimum can result in late fees and additional interest charges, which can add up quickly.”

Solution: Make the minimum payment to avoid negative reports. Pay more than the minimum to reduce interest charges and improve you credit score.

3. Keeping debt levels too high: Potential creditors will be concerned if there are indications you already owe a lot of money on credit cards and other obligations because additional debt could stretch your ability to repay. One way creditors evaluate whether to approve a loan or charge a higher interest rate (which is done to compensate for higher risk) is to look at how much you owe compared to your income. Creditors also consider how much of your credit card limit you typically use. If you are “maxing out” your credit cards or otherwise keeping a high balance in relation to your credit limit, a lender could question your ability to make payments on additional debt.

Solution: Different lenders and credit scoring services may use different calculations when evaluating you—for example, some may include your monthly mortgage payment in their debt-to-income ratio, others may not. So, in general, try to keep your debt level low. How? Don’t spend more than you can afford. Don’t max out or charge near the limit on your credit card. Also, if possible, try to pay off that credit card balance each month. Follow this strategy and you’ll build a good credit history, reduce debts and save on interest payments, too.

4. Owning too many credit cards: You may not think twice about offers to “sign up today” for a credit card to receive a percentage off your first purchase, get a free T-shirt or to have no payments for six months. Depending on your personal situation, these promotions may be good deals. But beware. “If you open a number of credit accounts with retailers just to get the discounts or freebies, these seemingly harmless accounts may linger in your credit file and end up costing you money the next time you get a loan or insurance,” warns David Lafleur, an FDIC Policy Analyst on consumer matters. Here’s why.

If you have a stack of credit cards and department store cards—even if you rarely use them or don’t carry a balance on them—each card represents money that you could borrow. According to the Kincaid, “A potential creditor will look at each card and its $10,000 or $20,000 credit limit and say, ‘We don’t know when or if you’ll access this amount, but if you do, that means you’ll have less money available to repay any new obligation’.” The result could be that, if you apply for a mortgage, a car loan or some other important loan, you may qualify for only a smaller loan amount or perhaps face increased costs or fees.

Also, when you apply to a bank for a credit card or a loan, it will look at the “inquiries” section of your credit report to find out if you’ve recently applied for loans elsewhere. Several such inquiries on your credit report could indicate to a lender that you may be having financial troubles or that you could be on the verge of getting too deeply in debt. These inquiries remain on your credit report for two years and can be a factor in your credit score.

Solution: Don’t own or apply for credit cards you really don’t need. Two or three general-purpose cards and a few (if any) cards issued by stores or oil companies probably are enough for the average family. Cancel and cut up the rest. If necessary, transfer any balances from these cards onto the few you plan to keep. Also important: “Notify the card issuer in writing that you want the account closed at your request, and with no balance remaining, and save a copy for your files,” says Kincaid. “This letter can be very valuable if, as it sometimes happens, the account is inaccurately reported as still open and available, or if it’s shown as being closed by the card issuer, which is considered a negative in the credit world.”

Note: Under some credit scoring systems, canceling credit cards can lower your credit score, not raise it. For example, canceling cards you’ve owned for many years could lower your credit score because those older cards can establish a long history of responsible credit use. Even so, we still generally favor the idea of canceling cards you rarely or never use, for reasons already mentioned, plus others (including the fact that you’ll have fewer cards that can be lost to a thief, and you are more likely to notice problems with cards you use regularly). As one possible strategy, Kincaid suggests this: “Review all the cards you have. Keep only the cards you’ve had for a long time and handled well by always paying on time.”

5. Not periodically checking on your credit report: Many people never or rarely look at their credit report until they apply for a loan or they have been denied a loan or other request based on information in their report. Among the concerns: Inaccurate or missing information in your credit report could raise your borrowing costs or cause delays when you’re in a rush to make a major purchase, such as a home.

Solution: Many experts say you should review your credit report from all three major credit bureaus about once a year, but especially before you apply for a home loan or seek some other benefit where your credit report could affect the outcome.  If you find an error in your credit report, write to the credit bureau that prepared it and provide copies of relevant documentation. If the matter isn’t resolved to your satisfaction, contact the Federal Trade Commission for general information about your rights.

6. Not using your full legal name in bank accounts, credit applications and other documents that become part of your credit history: “This may seem like a minor issue but it can be important in terms of the accuracy of your credit report,” says Joni Creamean, an FDIC Senior Consumer Affairs Specialist. Here’s why.

Credit bureaus obtain data from a variety of sources, not all of which include a person’s full name, Social Security number or other identifying factors. As a result, aspects of someone else’s credit history—perhaps late payments, loan defaults or other serious problems—could be reported on your credit report and could reduce your credit score. Some situations are more likely than others to create mix-ups, Creamean explains. “It’s not uncommon for a child and a parent with the similar names to show up on each other’s credit report,” she says.

Solution: Always use your full legal name when opening a bank account or applying for a loan or other benefit, such as a job or lease. Never leave off a Junior, Senior or similar designation, and never use a nickname. Or, at the very least, be consistent by always using the same name when you fill out these kinds of applications or documents. Following this advice doesn’t guarantee that someone else’s credit history won’t appear on your credit report, but it will reduce the potential for a mistake.

7. Not alerting current or potential creditors if you’ve moved or changed names: Suppose you move and don’t notify your existing creditors. If your monthly credit card statement and other bills don’t reach you at your new address, you may miss a payment or two, and that tardiness can be reported on your credit report (not to mention the penalties or interest charges from your card issuer). Or, if you change names because of a marriage or divorce, and you apply for a loan without informing the potential creditor about your previous name, the credit bureau’s report may show only your recent financial record under your current name. “If you don’t inform your creditors of your name change, your credit record may not reflect your previous hard work at maintaining a good credit history,” says Kincaid.

Kincaid also says that if your name or address doesn’t match what’s being reported by the credit bureau or other creditors, “this can prompt a red flag about a potential fraudulent account, and if nothing else, it can slow down your loan application.”

Solution: Call each of your creditors to notify them of a name or address change, and keep a record of who you spoke to and when. Also, follow up with a letter to the appropriate department and mailing address. Some creditors may require specific documentation, such as a marriage license or divorce decree, in cases of a name change. “But even if the creditor doesn’t require written notification,” Kincaid says, “it may be in your best interest to provide it in writing to protect your rights and document that you made timely notification.”

                          

1. Missing [...]]]> Credit scores are the financial measurement to determine your financial creditworthiness. Lenders like banks and credit card companies use these credit scores to know your financial ability. Thus is important to maintain your good credit scores. Let review the 3 top credit mistakes which you may make and harm your credit scores:

1. Missing Payment

Your credit score is count based on your credit history and how you have managed your current and pass credit obligations. Many lenders will use this piece of information to predict your future miss payment probability and it is important factor to approve or reject any of your loan application. There are three ways that missing payments will hurt your credit scores. They are:

• How Frequent are Your Late Payments? – Sometimes you may make your payment late due your busy schedule. But if you do it frequently, it may hurt your credit score seriously. Don’t make the late payment as your habit; maintain your good credit behavior with your timely payment.
• How Recent is Your Late Payments? – The scoring model are designed to predict how you are going to pay your bills in the subsequent 24 months; your recent late payment records especially with the last 2 years weight a lot in your credit scoring. If you have lot of late payment records in your past 2 years, it is predicted that you will likely to miss more payment in the next 2 years. As such, your score will suffer.
• How Severe is Your Late Payments? – The severity of your late payment also plays a big part in your credit scores. The 90 days late payment hurt your credit score more if compare to 14 days late payment. If you are too busy to make your payment on time, don’t late by too late because give a great negative impact on your credit scores.

2. “Settle” with your lenders on your debt Settling your debt with your creditors with less than the amount you owe them will create negative information called “deficiency balance” in your credit report. This may happen when you have unbearable debt and you are getting a debt consolidation service to negotiate with your lenders to outcome an agreement to settle your debt with some reduced amount. You may happy that you didn’t have to pay the full amount. However, the lender will report that remaining amount as “deficiency balance” to the credit bureaus as a negative item. A deficiency balance is considered just as negatively by credit scoring models as any other severe late payments. In your debt consolidation process, if you can arrange a deal with your lender so that they will NOT report the deficiency balance then that will be your best course of action; if not, your credit will suffer for 7 years.

3. Over Utilization of Your Available Credit Card Limits

Your credit scores can be affected with your high balance on your credit card. .” Over utilization is the practice of running up balances too close to your credit card limits. For example, if you have a Visa card with a credit limit of $10,000 and a $5,000 balance you have a utilization percentage of 50% because you are using 50% of your credit limit. The higher the utilization percentage the fewer points you will earn for your credit scores. If paying your cards off every month is unrealistic then try your best to keep that percentage as low as possible to maintain your good credit scores.

Try to best to avoid the above credit mistakes to have a good credit score in your credit report. Cornie Herring is the Author from StudyKiosk.com. “StudyKiosk-Credit Basics” is an informational website on credit basics and debt consolidation.

Article Source: Article Directory at http://www.ArticleSphere.com