Credit Score Frequently Asked Questions
What is a good credit score?
Credit scores range from 300 to 900. You may also have a zero score if you have not previously established credit with any creditor that reports to the credit bureaus.
Generally in the mortgage industry if your score is below 600 you will usually be considered a sub-prime borrower and you will usually have to pay a higher interest rate. The exception would be if you can qualify for a FHA loan. Ideally you would like for your score to be 660 or above.
Can I get a Free Credit Report?
You are entitled to a free copy of your credit report every 12 months. You may order this from each of the credit bureaus or by going to www.annualcreditreport..com. You may get your FICO(credit score) by paying a fee.
If you have been denied credit for any reason send a copy of the denial letter to each of the credit bureaus and they will send you a copy of your credit report.
If you are unemployed and will be seeking work within the next 60 days you may request a free copy of your credit report.
If you are currently on welfare you are entitled to a free copy of your credit report.
Who are the credit bureaus?
There are three major credit bureaus that are used by most lending institutions. They are Equifax, Experian and Trans Union. You may get their contact information by going to the Credit Bureaus tab on this web site.
Will requesting my credit report hurt my credit score?
Requesting your credit report will not affect your credit scores. An inquiry will be added to your credit history every time anyone requests your credit report. However, inquiries from you yourself are not provided to lenders and are not included in the calculation of your credit scores.
Do other inquiries hurt my credit scores?
There are two types of inquiries other than your personal inquiry. One is the an inquiry that is the result of your application for a loan or other services. Since these inquiries can represent new debt that is not yet reflected as an account on your credit report these inquiries can affect your credit scores.
However, inquiries have a relatively small impact on your credit score. If your credit history is strong, inquiries may have no impact at all.
The second kind of inquiry includes inquiries for employment purposes, account reviews by your existing creditors and a review of your credit report to make preapproved credit offers. Since these inquiries do not represent new debt for you or they are inquiries that you did not initiate, they do not affect your scores.
Who are the 3 major credit bureaus?
EFX Equifax Information Svcs
P. O. Box 740243
Atlanta, GA 30374
1-800-685-1111
http://www.equifax.com
XPN Experian Information Svcs
P. O. Box 2002
Allen, TX 75013-3742
1-888-397-3742
http://www.experian.com
TUC Trans Union Information Svcs
P. O. Box 1000
Chester, PA 19022
1-800-916-8800
http://www.transunion.com
What are some sources of new credit?
Retail Store Credit Cards
First try applying with local retail stores. It is sometimes easier to get credit with a local store than other places. Just be sure that they report to the credit bureaus or you have wasted your time as far as improving your credit score.
Gas Station Credit Cards
Apply for a credit card with some of the major gas stations. A small local gas station may not report to the credit bureaus.
Finance Companies
Try to avoid finance type companies. These are not considered as credity worthy types of accounts with the credit bureaus, so they will not have the positive impact on your score that you are trying to achieve.
Auto Loans
When you are in need of another car, finance one with a company that you are sure reports to the credit bureaus. Most small car lots do not. Be sure they report monthly your positive, ontime payments, not just your non-payment activity. Even if you have to start with a bad credit car loan at a higher interest rate be sure that they are reporting your ontime payments in order to help improve your credit score.
The next time you need a auto loan you won't need the bad credit car loan and you will be able to finance it with a much improved interest rate.
Credit Card Deals
New credit cards with ontime payments will definitely lead to an improved credit score. It is not necessary to have a high credit limit. Just be sure to keep your balance at around 30% of your credit limit. If you do no more than go out to eat and charge the meal, then pay the balance in full, ontime, when the bill comes in.
Find Credit Card - Apply Online For Credit Card
There are credit cards deals available for people with bad credit also. Be sure you check and understand the fees that are associated with any credit card, especially the ones for persons with bad credit. It may be well worth the fees, for say a year, in order to improve your credit scores. Then you can get a credit card with better credit card rates, with that same company, or some other company and close out the expensive one. Even if you are wondering how to improve your credit after bankruptcy a credit card is still a good option for doing that.
Credit Cards for Bad Credit
A good location for credit card offers for persons with bad credit that want to improve their credit rating is cardoffers.com.
You can also find a student credit card for those of you who have not yet established any other previous credit.
Check it out. You can fill out the credit card application online.
If you have credit problems and you are trying to improve your credit, here are some cards offered at cardoffers.com that are designed specifically for your needs: (just click one of the images below).
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