How Your Credit Score Affects Your Credit Report

It is interesting that people use credit cards all day long without really understanding how that affects their credit score. There are a large number of people who do not know how to read their credit report or what a credit score is.

That is why there are so many credit report commercials on TV. I bet everyone has that freecreditreport.com song in their head..

Understand this, creditors will base your credit worthiness by the credit score that tells them how you have paid your bills.Your credit report will show them how you have used your credit in the past. To them the best indicator of future actions is your past actions.
It will show your payment history, open accounts and how you’re handling those, who is checking your credit bureau, and how you have made your payments in the past.

Getting alot of credit checks can cause your credit score to go down too.You want to be cautious than you are not giving anyone permission to check your credit report unless you want them to.

You can access your report anytime at one of the three main credit reporting agencies: Equifax, Experian, and Transunion.If you find something on your credit report that is inaccurate you should contact the reporting agency to get it corrected.

By paying attention to your credit report you can do thing to improve your credit score!

If you have questions about your credit history, visit Credit Help Pro. They have all of the information you need about credit reports and where to get yours.

How much should certain ‘potentially negative items’ lower your credit score?

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Paul D wants to know:

I accumulated a small (~$300) hospital debt one summer when living in Houston. Upon leaving, I forgot to forward my mail *kicking myself*. Although I paid every bill they sent me while there, apparently one came after I left for $46. I was totally unaware of this $46 debt until much later, at which point it was being handled by a collection agency. I paid the bill immediately, and the telephone collection agency operator told me it would not go on my credit since I had paid it immediately. …3 years later… I realize my Experian score is *61* points lower than my Equifax or Transunion, and this $46 dollar collection account is the only potentially negative item I have.

In all, it seems unreasonable that my score plummets so severely for such a small collection. Maybe I just don’t understand how these things are calculated.

Sorry for the long post, and thanks in advance for your help.

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More Borrowers Pay Credit Cards Before Mortgages

It’s exactly the opposite of the norm. Usually cash-strapped Americans during tough economic times will miss credit card payments before they’ll miss mortgage payments.

Welcome to the new world order.

The percentage of borrowers who are delinquent on their mortgages but paying their credit card bills on time is growing, to 6.6 percent in the third quarter of 2009 from 4.9 percent in the same quarter of 2008, according to a new study by Chicago-based TransUnion. In an interview with Reuters, the author of the study, Sean Reardon, confirmed, “This goes against conventional wisdom and that has always been that, when faced with a financial crisis, consumers will pay their secured obligations first, specifically their mortgages.”

While concerning, I don’t find this surprising at all.

Today’s consumer is all about cash-flow, and that means keeping the credit cards current. A home is no longer the product it was even five years ago, no longer an emotional investment. For a growing number of borrowers, a home is now a financial investment plain and simple, and more and more often, a lost investment. I read an article a few years ago about how Americans’ attitudes toward their homes was changing, how twenty years ago losing your home was as big a social stigma as it was a hit to your credit rating, even more so. Not anymore.

Let’s face it: An awful lot of borrowers out there put nothing into their homes and therefore have neither a financial, nor, more profoundly an emotional nor social stake in the structure. Of course they’re going to pay off their credit cards first, because that has an immediate impact on what they can and cannot buy and do.

On top of that, most troubled borrowers have already figured out that there are so many forces in motion trying to save homes from foreclosure that they can easily miss one, two, five or six mortgage payments before even getting a call from the bank; then, they’ve got many more months of negotiations over modifications, short sale options, even the foreclosure process itself, insuring they will have a roof over their heads for a good long time.

I heard an interesting factoid at the American Securitization Forum conference in DC yesterday.

Home building Analyst Ivy Zelman said that in some Florida counties the courts are so backed up with foreclosures that it can take up to three years to get one home through the system.

That’s three years of living rent-free, which frees up plenty of cash to pay the Visa bill.

Which of the 3 reporting companies is the most looked at when determining credit eligability?

Authentic wants to know:

of the 3 reporting companies, transunion, equifax, and experian, which one do companies look at the most to determine your credit.

Whats the difference between Equifax, Experian and TransUnion? Which one is the best?

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..:..HeLLoKiTTy..:.. wants to know:

Equifax, Experian and TransUnion! Whats the diffrence between these 3? Which one is the biggest or the best to contact when you need to report you cards stolen or fraud?

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Why is my Experian score about 30 points lower than my Equifax or TransUnion?

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Barrabas_6025 wants to know:

It’s been this way for a few years. The only difference i see from glancing at the accounts is that the Equifax has more inquires in the last 2 years (5) than the other two (they have 3 and 2). Would that knock it down by 30 points? Or does Equifax just score lower?

The scores range from 770 to 803 so I’m not worried about being denied credit — I am just curious.

Thanks in advance.

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Is there any reputable credit repair places that dont cost a fortune?

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hopes2graduate wants to know:

I dont want to get ripped off but I need some help repairing my credit. The credit beuraus arent cutting it. Can someone refer one that doesnt cost a fortune? I need all the credit reporting places (equifax, experian and transunion) worked on. Thanks!