What Do All Those Strange Codes In My Credit Report Mean?
If you’ve requested your credit reports recently – or only peeked at them after a bank or another lender pulled your credit files – you may be wondering about some cryptic-looking codes and abbreviations you saw. The three main credit bureaus — Equifax, Experian and TransUnion — each have their own way of describing your […]
What Is Considered a Good Credit Score?
FICO credit scores range from 300 to 850 points. Banks and other lenders now want to see 700 credit scores and higher, which is all the more reason to strive for perfect credit. You can certainly still obtain credit and loans even if your credit scores fall below 700. But you should know that it’s […]
What Are Some Reasons That My Credit Score is So Low?
If you get a FICO credit score, or any other credit score, be sure to read the analysis or summary that comes with your report, explaining why your credit score is a certain number. Watch out for these types of negative statements: Amounts owed on revolving accounts is too high Amount past due on accounts […]
The Dangers of Getting Payday Loans
For a single loan, payday lenders routinely charge interest rates of about 400% on an annualized basis. That’s a ridiculously high price to pay for “credit.” So why would someone willingly go to a payday lender when they’re short on cash, when they could just use a credit card to pay for something, or even […]
How Many Americans Have No Credit or No Checking Account?
There are roughly 50 million adults in the United States who operate outside the credit mainstream*. They have no checking account and no credit file whatsoever. Many never had a credit card; never took out a mortgage; never had a student loan; never paid a car note. Nothing. Granted, a lot of these individuals are […]
Does the Type of Debt I Have Impact My Credit Rating?
From a credit standpoint, the type of debt you’re carrying matters tremendously when it comes to your credit score and your overall credit rating. What precisely counts as “bad” debt? Nearly 100% of the time, it’s credit card debt. Yes, if the balances on your Visa, MasterCard, American Express or Discover cards have gotten out […]
How Much Consumer Debt Do Americans Have?
Debt is such a huge problem in America. We’re up to our eyeballs in debt of all types: mortgage loans, credit cards, student loans, automobile loans. You name it – we’ve got it. The average size mortgage in the U.S. is about $200,000 – and this number is smaller than it was due to the […]
What are Some of the Biggest Myths About Credit Scores?
Many consumers believe a host of myths and misconceptions about their credit scores. Some of the biggest fallacies surrounding this topic involve race, income and other factors that do not impact your credit rating at all. Here are some other common myths. Fact Vs. Fiction About Credit Scores FICTION: If I check my credit report […]
How is My Credit Score Calculated and What Are Some Tips to Improve It?
There is a lot of misinformation about what goes into your credit score. However, officials from Fair Isaac Corporation (the company that created FICO scores) have said many times that this is the heart of what happens: Your credit files – currently those from Equifax and TransUnion – are reviewed. Certain information (roughly 22 items) […]
Why Banks Lend and Why The Don’t
In order for a bank to declare that it is FDIC insured, it must meet certain financial requirements imposed by the FDIC. Specifically, banks must maintain healthy, federally-mandated “capital ratios.” This refers to the amount of capital (or dollars) a bank must have set aside in reserves in order to guard against future, potential losses. […]
The Mortgage Meltdown and Credit Crunch Explained
Q: How did the mortgage meltdown and wall street’s woes lead to the credit crunch? A: The economic crisis that initially began when sub-prime mortgages started unraveling in 2006 and 2007, became a full-scale financial meltdown in 2008, and continues today to have a huge impact on the overall economy, as well as on you […]
How Many People in America Have Bad Credit?
Out of the roughly 220 million Americans that have credit files maintained by the “Big Three” credit bureaus (Equifax, Experian, and TransUnion), about 1 out of 5 individuals have very poor credit, bad credit, or “deep subprime scores,” according to Experian. Research from the credit bureau found that between the third quarter of 2006 and […]
How Can I Get a Free Credit Report, Again?
Many people know that they can go to http://www.annualcreditreport.com and get a free copy of their credit reports from each of the three major credit bureaus once every 12 months. But most consumers are unaware that tens of millions of individuals are also legally entitled to get more than one free credit report each year. […]
Why You Should Get All Three Credit Reports at Once
When it’s time to check your credit history, the best move is to get all three credit reports—from Experian, Equifax, and TransUnion—at the same time. While some experts suggest staggering your reports throughout the year, reviewing them simultaneously gives you a clearer, more comprehensive view of your credit standing. Let’s explore why pulling all three […]
First Step To Improve Your Credit Score
If you want to acquire top-notch credit, the first step in doing so is to: a) Pull each of your credit files from the three major credit reporting agencies – Equifax, Experian and TransUnion; and b) Get your credit scores, which are marketed by various companies, and calculated based on the information contained in your […]