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12 Common Questions
Most of us don't think about credit until a specific event sparks our interest. Maybe we want to buy a car or home. Or perhaps we receive a preapproved credit card offer in the mail.
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What is a consumer credit report?
A consumer credit report is a factual record of individual's credit payment history as reported by his or her creditors. It can be provided only for purposes permitted by law and serves as your credit references for businesses.
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What can you do to create a positive credit history?
When you apply for credit, print clearly. Consistently use your complete name. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file.
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What does a lender look for when making a credit granting decision?
When making a credit granting decision, lenders review credit applications and credit reports primarily in relation to financial risk. If they lend you money, extend you credit, or give you goods and services, will you pay them back?
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How widespread are credit card fraud and identity theft?
According to a variety of sources, losses to credit card fraud and identity theft are just a fraction of the total amount of credit card spending in the United States.
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Will a divorce decree resolve the credit issues you might have with your former spouse?
A divorce decree is agreement between you and your ex-spouse and has no impact whatsoever on your joint debts, including credit cards, car loans, home mortgages and lines of credit. Nor does a divorce decree change your obligation to pay back the joint debts you incurred while married.
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Credit Scoring Basics
In the not so distant past, business relied on experience, intuition and sometimes person bias to make lending decisions. Today most companies use credit scoring to help them analyze information so they can make more objective, consistent decisions - and make them more fairly and more quickly.
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Why should you review your consumer credit report?
Your credit report is an important personal financial planning tool. It is one, easy-to-read summary of your credit accounts and total indebtedness -- both existing and potential. It can help you budget and plan for the future.
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What privacy protections exist in federal law?
The U.S. Congress enacted the Fair Credit Reporting Act (FCRA) in 1970 and amended it in 1996. Congress updated the law again in 2003 with passage of the Fair and Accurate Credit Transactions Act (FACT Act). The laws protect your rights as a credit-active consumer by limiting access to your credit report.
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What are the benefits of advertising mail and pre-approved credit offers?
Many people delight in the choices and opportunities that advertising mail provides. They look forward to receiving catalogs, money-saving coupons, the convenience of pressure-free shopping from home, free trial offers on new products and services, and invitations to special sales that are not widely advertised.
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What is an employment report?
Federal law specifically allows potential and current employers to view a modified version of your credit report for employment purposes such as hiring and promoting.
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