Articles & News About Your Credit

Adding Tradelines And Other Ways To Improve Your Credit Report

For many people, a credit report is something akin to a mystery novel. It's a little hard to understand, and you never know how it's going to turn out if you don't read the whole thing. But you really do have the power to take the mystery out of understanding what your credit report is, how it affects your life, and what you can do to improve that all important credit score. Let's begin with some basic definitions.

Credit Report

This is a written record of your financial transactions. It details the amount of your current debt, and how well you are repaying it. It also includes a record of past debts, and how/if they were repaid. Every open account you have will be listed, as well as any record of bankruptcies, foreclosures and judgments.

Credit Score

Based on the details in your credit report, you will be given a numerical score, that reflects your level of 'credit worthiness'. This number is based on:

* The number and types of accounts you have open. * How long you have held the accounts. * How many late payments you've made, and just how late. * Your current total accumulated debt. * Any attempts you've made to open more accounts.

Every company you apply for credit with will examine this score, to determine how likely you are to repay them any money they advance to you. Would you like to apply for a home or auto loan? A credit card account, or home improvement loan? Your current credit score will be the biggest determining factor in whether your request is approved.

The Big 3 Credit Reporting Agencies

* Equifax, based in Atlanta, Georgia. * Experian, based in Costa Mesa, California. * TransUnion, based in Chicago, Illinois.

Each of these nationwide credit-reporting agencies maintains a credit report on you. Since you have no way to know which one of these agencies a potential lender will contact, you need to keep track of the info contained in all three reports.

How To Improve Your Credit Report Score

Your credit report is a living, breathing document, changing with every entry made. If your score is bad now, there are a few things you can do to improve it.

* Examine each report thoroughly to make sure there are no mistakes.

If you find a company listed with debt outstanding, but you know you've paid it and have a receipt or cancelled check to prove it, you can make a challenge to that item on your credit report. The company you are challenging has up to 90 days to respond and defend the item, or remove it from the report. You should resist the urge to make a challenge without proper documentation of your payment.

* Close old credit card accounts.

Even if you aren't actively charging on them, these old accounts that remain open still add up in your total amount of credit available. This total line of credit is compared to your income, and alerts lenders to the fact that you can become overextended any time you choose.

* Never use more than 50% of your available credit.

Potential lenders want to see that you have money left over after paying your debts. They take this as a sign of good money management skills.

* Add favorable items (tradelines) to your credit report.

You can boost your credit score by making sure that debts you are paying on time now, or in the past, are listed in your credit report. These accounts are referred to as tradelines in the industry. It is entirely possible that a company you deal well with hasn't even made a report in to one or all three of the nationwide credit reporting agencies, so it's up to you to see that the good info makes it's way into your report to counteract the bad info.

Examples of tradelines:

* Installment loans

Car loans are a good example of an installment loan. Your current car loan may already be in your report, but what about car loans past? You can add a former car loan that was appropriately repaid onto your current report, adding favorably to your overall score.

In-store accounts for items like refrigerators, washer/dryers, and jewelry that are being paid for on an installment plan should also be included on your credit report if you are making your payments according to schedule. Many of these smaller stores only report to the credit bureaus if an account is placed in collections, ask them to send in a report of your payment history to add a positive tradeline to your credit report. Make sure the creditor notifies all three credit bureaus.

* Mortgage Loans

Again, a current mortgage would likely be listed already, but if this is not your first mortgage, and you have other successful mortgages in your financial past, make sure they are listed. This all still weighs in your favor. If you have paid your mortgage on time with an individual who holds the lien to your home, you should get credit on your credit report for it. Most individuals would be fairly baffled at your request to add a manual tradeline to your credit report, simply write the three credit bureaus and ask that they account be added and give your point of contact's name and phone number for verification. The bureaus will verify the information and have it added to your credit report. Repeat this process a few times a year to keep your information current.

* Secured Loans/Secured Credit Cards

These are types of tradelines that you have secured by putting up something as collateral, such as your vehicle or home. You can obtain a secured credit card by depositing a pre-determined amount of money in an account with the individual company. You can then use that credit card to charge up to that amount and your deposit guarantees the company of being repaid, even if you miss a payment. Secured accounts are a viable way to rebuild credit after a bankruptcy, as long as you pay on time.

* Utility Accounts

Do you pay your monthly utilities in full and on time? Then try to add them to your credit report. Utilities usually only find their way onto your report if you're behind in your payments. Paying these items faithfully each month should boost your credit record, but if your local utility companies don't actively report in to the credit bureaus via a tape system the firm may decline your request to add your history to your credit report. Most will comply and the benefit of having a positive tradeline on your credit report makes it well worth the try.

While there is really no substitute for paying your debts on time each month, it's good to know that there are ways to improve your credit report. The key is knowing what's in your report, and making sure it's kept accurate.

Liz Roberts is a loan consultant with http://www.newhorizon.org and has been providing consumers and business owners with financing since 1989. Visit this site for a list of bad credit credit cards, http://www.newhorizon.org/Info/unsecured.htm

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Apply Online For A Credit Card - Instant Online Credit Card Application
The Internet has changed the lives of many of us in lots of different ways and we can now do our shopping, book flights, download music, software and ebooks, and even apply online for a credit card. Making an instant online credit card application is quick and efficient and comparison charts make it simple to find a low interest rate credit card, or the best credit card deal to suit your personal needs.

Fairinvestment.co.uk Reports Prepaid Credit Cards no Longer Just for Bad Credit Histories
Fairinvestment.co.uk reports prepaid credit card market expected to rise £4.5billion by 2010 in light of the UK credit crunch.

Compare Bad Credit Credit Card Offers: Credit-Card-Surplus.com Adds 2 New Bad Credit Credit Cards, Offering Consumers a Complete List of Bad Credit Of
www.Credit-Card-Surplus.com announces the addition of two new bad credit credit cards to its website, creating more options for those who have less than perfect credit. Consumers that have filed for bankruptcy or have a low credit score qualify for bad credit credit cards. When used properly, these cards enable customers to rebuild their credit and improve their standings among lenders. With the addition of the Total Visa® Card, and the Access Visa® Card, www.Credit-Card-Surplus.com provides a total of 13 bad credit cards for consumers to compare.

Apply Bad Card Credit Credit Online
Within this article on Apply bad card credit credit online, we will look at a couple of different cards that you can look at applying for. We will look at the benefits of each card and let you come up with the decision on what you think the best card for you is.

Credit Card Offers For People With Bad Credit History: A Chance For Rebuilding Your Credit
It is a fact that credit cards are one of the most important tools in today's society. With it, you will be able to purchase the things you need even if you still don?t have the cash for it. The way this works is that the credit card company will let you borrow the cash for the purchase. You will then pay it back monthly with an interest if not paid fully. Just make sure that you pay it back on time and also with the minimum payment required every month in order to avoid outstanding credit card debt that can accumulate a lot of interest.

Credit Cards For Bad Credit Can Help Rebuild Credit
Despite all the publicity to the contrary, there are credit cards for bad credit holders and people are willing to pay a lot of money to get themselves more credit. Very few people with bad credit planned for it to happen, but illness or joblessness can quickly take a financial toll on them, leaving them choosing between eating, having a place to live and paying some of the bills.

Good For Worst: Credit Cards For People With Bad Credit
A credit card can offer advantages that ready cash will usually not. With robbery rife, a credit card can keep you from carrying large and dangerous amounts of cash. You also do not have to worry about looking for an ATM if you suddenly run out of money, provided that the merchant you want to purchase products and services from has a credit card machine.

Credit Repair: Repair Bad Credit Card Debt Yourself
Credit repair and eliminating your credit card debt does not mean that you have to hire an expensive credit repair service. In fact, if you want to fix your credit you can do it yourself for free. I cannot promise that it will be easy but despite the glib promises made by professional services those are not easy either.

Instant Bad Credit Loans - Loans for People with Bad Credit Score
Everyone ruins his or her credit score at some point of time or other. Not that they simply want to ruin it, the circumstances or lack of experience leads to bad credit score. Consider a student who just got his credit card. He will use it to the maximum in the excitement without even giving a though to the repayment, thereby getting a bad credit score. A bad credit score later becomes a hindrance to avail loans. One method to improve your credit score is to take instant bad credit loans.

Affordable Bad Credit Mortgage Loans - 3 Tips to Reasonable Bad Credit Mortgage Loans
Finding a mortgage loan with a bad credit rating can be an absolute nightmare: Driving from broker to broker, bank to bank, getting turned down every time, all the while your credit keeps dropping with every credit check. Fortunately, this painful process can be avoided with just a few simple tips.

Credit Cards For People With Bad Credit, Poor Credit Or Poor Credit Score
Bad Credit is a term used to describe someone who is considered a "high risk" to lenders and other finance companies such as factors.

Applying For Credit Card With A Bad Credit Rating
Have you found yourself in a downward spiral trying to get caught up on bills, yet only finding your debt climbing higher and higher? Unfortunately, that is a reality for many people in society today. The amount of debt per family in the United States is at an all time high. This type of spending behavior and financial planning will lead you to have bad credit. That will only add to your cycle, as you will find your interest rates for major purchases and credit cards with climb as your credit rating falls. Thus, you will struggle more and more financially.

Credit Cards For People With Bad Credit Scores
Sometimes life lands you in a situation that causes your credit to suffer. A job loss or illness can send your credit rating south leaving you with nothing to do about it.

Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as Possible
If you have a poor or bad credit history with something in your past like a bankruptcy or a foreclosure, you know how difficult it can be when you try to get financing for a home mortgage purchase, refinance, home equity or second mortgage loan. Its important to be persistant in looking because there are home mortgage loans out there for people with bad credit.