Maintaining a Good Credit Score
Maintaining a good credit score must be taken seriously if one desires to have a healthy financial situation. Because many things in life often require loans to obtain, such as a car or a home, it is important to maintain good credit in order to have these things. As families grow, so do our needs and wants.
Too often we realize that our car or home is not big enough to meet our needs. When we need to borrow money for large purchases such as these, it is in our best interest to have maintained a good credit history so that banks and other lenders will loan us the money that we need. When the lenders see that we are responsible with our money, they will loan us money to improve our lives.
However, we must be responsible when we borrow. Make payments on time, each and every month, in order to maintain a good credit score. Don't request more credit than you need. Check your credit report often to ensure that there are no mistakes or negative items listed, and that no one else is using your identity.
Be responsible with your borrowing, and when needs or emergencies arise, obtaining the funds that you need will be easier.
Monday, July 23, 2007
Friday, July 6, 2007
Stolen identity, legal nightmare - 07/05/2007 - MiamiHerald.com
Stolen identity, legal nightmare - 07/05/2007 - MiamiHerald.com
Stolen identity, legal nightmare
A Hollywood woman finds that victims of identity theft can be treated like criminals themselves.
BY ERIKA BOLSTAD
MARSHA HALPER/MIAMI HERALD STAFF
Jennifer Mehu, a law-abiding school teacher, has struggled to undo the damage to her finances and reputation after impostors committed crimes using her stolen identity.
On the Web How to deter, detect and defend against identity theft
Jennifer Mehu was enjoying a quiet Friday night in front of her television when a team of Broward Sheriff's Office deputies pounded on her door.
''There was a knock on the door -- one of those hard, scary knocks,'' said Mehu, 32, of Hollywood. 'My daughter said, `Mommy, there's police at the door.' She was afraid -- she's 10 years old.''
Mehu asked the deputies why they were there: 'I said, `Someone has stolen my identity. Is this related to that?' ''
Their response: Find someone to sit with your daughter and accompany us to our substation -- either willingly or face arrest.
BSO confirms the basic outlines of Mehu's account, but makes no apologies. The agency said its deputies were just doing their job, investigating a crime reported by a business.
''That's part of the tragic side of identity theft. We have no way of knowing whether it's being committed by the actual person,'' said spokesman Elliot Cohen. ``Until someone starts asking the questions, there's no way of knowing.''
STOP IDENTITY THIEVES NOW!
Until recently, Mehu's only brush with the law was an Arizona traffic ticket. But on June 8 around 9:45 p.m., the kindergarten teacher found out what many victims of identity theft already know: Often, they're the ones treated like criminals.
More than 15 million Americans experienced some sort of identity theft last year, said Jay Foley, executive director of the Identity Theft Resource Center, a California-based nonprofit that helps people who have had their identities stolen.
''It is the most common crime,'' Foley said. ``We get lots of cases where a person is being pursued by law enforcement for things they have no knowledge of. It's not only unfair, it's offensive.''
Victims of ID theft generally don't end up dealing with police for their own suspected crimes, Foley said. But in Mehu's case, crimes were committed in her name, and she had no choice, since investigators found her. Mehu had to prove that she was not the criminal.
''In her case, it was criminal identity theft,'' Foley said. ``This automatically puts you on the wrong side the law.''
Law enforcement is obligated to investigate the crimes -- and the person in whose name they were committed, Foley said.
Once the I.D. theft victim is cleared of criminal wrongdoing, it is their responsibility to work on clearing their name.
UNDOING THE DAMAGE
The victims are forced to spend countless hours straightening out the financial mess left by the people who stole their identity, Foley said, and they have to endure the humiliation of being suspected of criminal activity.
''Identity theft is the 21st century bank robbery,'' said BSO spokesman Cohen. ``You never have to see them, you never have to come into contact with them. It's an epidemic.''
Mehu's problems started last August, when her handbag was stolen from her car at Walker Elementary School in Fort Lauderdale. She kept her purse in her car because it had been stolen once before from her classroom filing cabinet.
She filed a police report, but it was soon apparent that her ID was being used all over Broward. When she tried to get a new driver's license, she found that someone had been to the agency, which issued a license in Mehu's name -- with the impostor's picture.
The problems began piling up.
Someone received a speeding ticket in her name.
Soon it became clear that people were opening checking accounts in Mehu's name, and writing bad checks.
''I started getting notices that I owe this bank, that bank,'' Mehu said. ``They open checking accounts and they write all these humongous bills with my name and address. SunTrust, Wachovia, Bank Atlantic . . . and banks I've never heard of.''
The worst was yet to come.
In the episode that led to her interrogation by BSO detectives, Mehu was suspected of trying to pass bad checks at a Tamarac Publix.
A woman who had tried to cash a check aroused the suspicions of alert Publix employees, who confiscated her ID. The woman left without the ID, and Publix called BSO, which investigated and issued a warrant for Mehu's arrest.
Mehu had seen police interrogations on TV shows. But she had no idea how frightening the real thing would be.
The night they came to question her, a male detective watched as she got dressed. Once Mehu's sister arrived to care for her daughter, Aysis, Mehu was instructed to follow the cops in her own car.
They sandwiched her vehicle between two patrol cars on the drive from Hollywood to Tamarac.
Mehu was so frightened that she dialed 911, to make sure the deputies were legitimate. While she was on the phone with dispatchers, the deputies escorting her called her and told her to stop calling 911, because they were law enforcement officers.
At the station, they showed her different identifications they had confiscated with her name on them.
''It was so scary,'' Mehu said. ``It was just the most horrifying, terrifying experience. It was a little box of a room, with a table and a chair, and a clock. It was padded. There were chains on the floor.''
Eventually, it became clear to detectives that she wasn't the person they were looking for, Mehu said. After about 40 minutes, they let her go, telling her the matter was closed.
But Mehu hasn't forgotten it.
''I don't know what to do to get this out of my head,'' she said.
It's difficult to determine how much the crime cost her, Mehu said. Its main toll has been psychological, although she has spent hours contacting credit bureaus and the check-clearing bureaus.
BURDEN ON THE VICTIM
She has had to put a special flag on her driver's license, so that if she's ever stopped by police, they must ask her for two forms of identification.
She makes sure her Florida I.D., voter registration card and insurance card are quickly accessible. She has applied for a passport. She has signed up for a credit monitoring service for $10 a month. She no longer carries a purse.
''It's sad. I love purses. Now, I just carry a wallet that I can keep in my pocket,'' Mehu said.
Her credit is such a mess that she is afraid to apply for a credit card.
And it has been embarrassing.
Mehu learned through the Fort Lauderdale detective investigating the theft of her handbag that one of the people posing as her was a man dressed as a woman.
Mehu was mortified.
She worries that whatever criminal mischief the I.D. thieves are up to will come back to haunt her on the job, where a clean criminal background is a career requirement.
''I'm scared this might damage my career as a teacher,'' Mehu said. ``I'm at a loss, but everywhere I turn, people say, identity theft is very difficult to solve. It seems like the people who are victims, everything comes back to them.''
Tags: Stolen identity, legal nightmare, identity theft prevention
Stolen identity, legal nightmare
A Hollywood woman finds that victims of identity theft can be treated like criminals themselves.
BY ERIKA BOLSTAD
MARSHA HALPER/MIAMI HERALD STAFF
Jennifer Mehu, a law-abiding school teacher, has struggled to undo the damage to her finances and reputation after impostors committed crimes using her stolen identity.
On the Web How to deter, detect and defend against identity theft
Jennifer Mehu was enjoying a quiet Friday night in front of her television when a team of Broward Sheriff's Office deputies pounded on her door.
''There was a knock on the door -- one of those hard, scary knocks,'' said Mehu, 32, of Hollywood. 'My daughter said, `Mommy, there's police at the door.' She was afraid -- she's 10 years old.''
Mehu asked the deputies why they were there: 'I said, `Someone has stolen my identity. Is this related to that?' ''
Their response: Find someone to sit with your daughter and accompany us to our substation -- either willingly or face arrest.
BSO confirms the basic outlines of Mehu's account, but makes no apologies. The agency said its deputies were just doing their job, investigating a crime reported by a business.
''That's part of the tragic side of identity theft. We have no way of knowing whether it's being committed by the actual person,'' said spokesman Elliot Cohen. ``Until someone starts asking the questions, there's no way of knowing.''
LifeLock Identity Theft Prevention service is the only of its kind to offer a $1 million guarantee.
STOP IDENTITY THIEVES NOW!
Until recently, Mehu's only brush with the law was an Arizona traffic ticket. But on June 8 around 9:45 p.m., the kindergarten teacher found out what many victims of identity theft already know: Often, they're the ones treated like criminals.
More than 15 million Americans experienced some sort of identity theft last year, said Jay Foley, executive director of the Identity Theft Resource Center, a California-based nonprofit that helps people who have had their identities stolen.
''It is the most common crime,'' Foley said. ``We get lots of cases where a person is being pursued by law enforcement for things they have no knowledge of. It's not only unfair, it's offensive.''
Victims of ID theft generally don't end up dealing with police for their own suspected crimes, Foley said. But in Mehu's case, crimes were committed in her name, and she had no choice, since investigators found her. Mehu had to prove that she was not the criminal.
''In her case, it was criminal identity theft,'' Foley said. ``This automatically puts you on the wrong side the law.''
Law enforcement is obligated to investigate the crimes -- and the person in whose name they were committed, Foley said.
Once the I.D. theft victim is cleared of criminal wrongdoing, it is their responsibility to work on clearing their name.
UNDOING THE DAMAGE
The victims are forced to spend countless hours straightening out the financial mess left by the people who stole their identity, Foley said, and they have to endure the humiliation of being suspected of criminal activity.
''Identity theft is the 21st century bank robbery,'' said BSO spokesman Cohen. ``You never have to see them, you never have to come into contact with them. It's an epidemic.''
Mehu's problems started last August, when her handbag was stolen from her car at Walker Elementary School in Fort Lauderdale. She kept her purse in her car because it had been stolen once before from her classroom filing cabinet.
She filed a police report, but it was soon apparent that her ID was being used all over Broward. When she tried to get a new driver's license, she found that someone had been to the agency, which issued a license in Mehu's name -- with the impostor's picture.
The problems began piling up.
Someone received a speeding ticket in her name.
Soon it became clear that people were opening checking accounts in Mehu's name, and writing bad checks.
''I started getting notices that I owe this bank, that bank,'' Mehu said. ``They open checking accounts and they write all these humongous bills with my name and address. SunTrust, Wachovia, Bank Atlantic . . . and banks I've never heard of.''
The worst was yet to come.
In the episode that led to her interrogation by BSO detectives, Mehu was suspected of trying to pass bad checks at a Tamarac Publix.
A woman who had tried to cash a check aroused the suspicions of alert Publix employees, who confiscated her ID. The woman left without the ID, and Publix called BSO, which investigated and issued a warrant for Mehu's arrest.
Mehu had seen police interrogations on TV shows. But she had no idea how frightening the real thing would be.
The night they came to question her, a male detective watched as she got dressed. Once Mehu's sister arrived to care for her daughter, Aysis, Mehu was instructed to follow the cops in her own car.
They sandwiched her vehicle between two patrol cars on the drive from Hollywood to Tamarac.
Mehu was so frightened that she dialed 911, to make sure the deputies were legitimate. While she was on the phone with dispatchers, the deputies escorting her called her and told her to stop calling 911, because they were law enforcement officers.
At the station, they showed her different identifications they had confiscated with her name on them.
''It was so scary,'' Mehu said. ``It was just the most horrifying, terrifying experience. It was a little box of a room, with a table and a chair, and a clock. It was padded. There were chains on the floor.''
Eventually, it became clear to detectives that she wasn't the person they were looking for, Mehu said. After about 40 minutes, they let her go, telling her the matter was closed.
But Mehu hasn't forgotten it.
''I don't know what to do to get this out of my head,'' she said.
It's difficult to determine how much the crime cost her, Mehu said. Its main toll has been psychological, although she has spent hours contacting credit bureaus and the check-clearing bureaus.
BURDEN ON THE VICTIM
She has had to put a special flag on her driver's license, so that if she's ever stopped by police, they must ask her for two forms of identification.
She makes sure her Florida I.D., voter registration card and insurance card are quickly accessible. She has applied for a passport. She has signed up for a credit monitoring service for $10 a month. She no longer carries a purse.
''It's sad. I love purses. Now, I just carry a wallet that I can keep in my pocket,'' Mehu said.
Her credit is such a mess that she is afraid to apply for a credit card.
And it has been embarrassing.
Mehu learned through the Fort Lauderdale detective investigating the theft of her handbag that one of the people posing as her was a man dressed as a woman.
Mehu was mortified.
She worries that whatever criminal mischief the I.D. thieves are up to will come back to haunt her on the job, where a clean criminal background is a career requirement.
''I'm scared this might damage my career as a teacher,'' Mehu said. ``I'm at a loss, but everywhere I turn, people say, identity theft is very difficult to solve. It seems like the people who are victims, everything comes back to them.''
Tags: Stolen identity, legal nightmare, identity theft prevention
Monday, July 2, 2007
5 tips to improve your credit score: Financial News - Yahoo! Finance
5 tips to improve your credit score: Financial News - Yahoo! Finance: "Bankrate.com
5 tips to improve your credit score
Tuesday June 26, 6:00 am ET
Cheryl Allebrand
If you've pulled your credit score and are disappointed by what you see, here are some simple things you can start doing now to improve your score. Credit counselor Bruce McClary of Richmond, Va., suggests these five ways to boost your credit score.
1. Get it right
2. Pay your bills on time
3. Step away from the edge
4. Commit for the long haul
5. Look before you leap
1. Get it right
Accuracy is the first thing to address and the fastest way to boost your score. Find and fix any mistakes that could be pulling your score down. Your credit score is based on the information contained in your credit reports. "For someone who has never seen a credit report or hasn't checked in several years, I recommend getting all three and looking at all of them, because each contains different information," says McClary. For those who check regularly, use the free credit reports to monitor your accounts. Stagger your requests for the free reports so you see one every four months. "With ID theft running rampant, it seems like you need to check more often these days," McClary says. "Maybe once a year isn't enough anymore."
Tags: 5 tips to improve your credit score
5 tips to improve your credit score
Tuesday June 26, 6:00 am ET
Cheryl Allebrand
If you've pulled your credit score and are disappointed by what you see, here are some simple things you can start doing now to improve your score. Credit counselor Bruce McClary of Richmond, Va., suggests these five ways to boost your credit score.
1. Get it right
2. Pay your bills on time
3. Step away from the edge
4. Commit for the long haul
5. Look before you leap
1. Get it right
Accuracy is the first thing to address and the fastest way to boost your score. Find and fix any mistakes that could be pulling your score down. Your credit score is based on the information contained in your credit reports. "For someone who has never seen a credit report or hasn't checked in several years, I recommend getting all three and looking at all of them, because each contains different information," says McClary. For those who check regularly, use the free credit reports to monitor your accounts. Stagger your requests for the free reports so you see one every four months. "With ID theft running rampant, it seems like you need to check more often these days," McClary says. "Maybe once a year isn't enough anymore."
2. Pay your bills on time
Paying on time helps build a healthy payment history. And, as the largest factor in determining your credit score (at 35 percent), it's the best way to rebuild damaged credit. Even if you've had credit problems in the past, depending on how many creditors were involved and how far past due your accounts were, a good 12-month payment history can usually produce noticeable results. "If you fell off for a few months, a year could get you back on track," says McClary.
Expect information about past-due payments to stay on your report for up to seven years. Your score can still improve during that time as long as you make steady, on-time payments. Seven years after the date of last activity the mark may drop off, but may not disappear completely because it can still be sent to collections. The avenues of collecting the money are not cut off, and the calendar resets on the date of activity when reassigned.
3. Step away from the edge
If you think you're doing everything right, take a look at the amount of your outstanding debt and your debt-to-credit ratio. Reducing your credit card balances will score you points and is especially important if you are flirting with the limit on any of your cards.
You never want to be maxed out, and ideally you'll be using only about 40 percent of your limit on any one card. Spreading debt between cards is better for your credit score than keeping it all in one place.
Next, focus on the amount of outstanding debt (30 percent of your score). Together, outstanding debt and payment history account for 65 percent of your score. Pay off your debt rather than moving it around. "A lot of people like to play the balance transfer shell game. Closing out an account and transferring that over means that you're increasing your debt ratio. You're reducing the overall amount of available credit and driving up the balance on the other," says McClary. Ultimately if the credit limit is equal or higher on the new card, it would be a wash over time, but in the short term, this is not smart.
4. Commit for the long haul
Fifteen percent of your score is determined by the length of time you've held a credit relationship. Don't close any accounts if you plan to shop for a mortgage or other loan for which you'll need a good score. Opening new cards and closing old accounts negatively impact your credit score in the short run, so avoid making these moves shortly before applying for a large loan. Deciding when to close an account is a tough question, says McClary. "It depends on the overall mix of credit and how many accounts you close. I would stagger it out. Put as much time between those events as possible, because it will affect financing terms," he says.
While you'll want to have a couple of cards to develop a credit history, adding more credit card debt can be a dangerous thing, McClary cautions. "Limit the amount you get to two and keep balances low and pay them off quickly. It's not necessary to have more than a couple of credit cards, and be careful using them because life circumstances can change." Of equal importance is establishing a savings account to fall back upon.
5. Look before you leap
When you apply for a loan or a credit card, lenders check your credit. These inquiries can put a temporary dent in your credit score. Start your loan search by shopping and comparing rates rather than applying for a loan first and deciding later. If you can do all your shopping within the same month, all the better. Mortgage and auto loans are counted as one inquiry if they fall within a 45-day period in the FICO scoring model.
Inquiries have the least impact as far as overall weight. Inquiries, types of credit and the number of loans you have play into the remaining amount of your score.
"I'm always amazed at how people tend to concern themselves with someone making an inquiry when they should be focusing on their payment history," McClary says. "I think if you want to stop solicitations, opt out. But if the motivation for opting out is to have an impact on your credit score, then it's not efficient." Save a few trees, opt out.
Tip: To opt out of unsolicited offers, visit OptOutPrescreen.com or call (888) 567-8688. "
Tags: 5 tips to improve your credit score
Thursday, June 28, 2007
Private Loans Won't Help Credit History - Kiplinger.com
Private Loans Won't Help Credit History - Kiplinger.com: "Private Loans Won't Help Credit History
By Kimberly Lankford
June 28, 2007
Can I establish a credit history in my name if I borrow from a private source, such as a family member? My husband and I are young and are buying a house, and we're borrowing the money from my uncle. If we set up the loan with a regular payment schedule, can we get the loan onto our credit record to show that we've been making payments on time?
Unfortunately that loan won't show up on your credit record. The credit bureaus only report information when they have a contractual relationship with the lender. These lenders and other companies typically have to do enough business with the credit bureau (both reporting and accessing credit information on borrowers) to make the cost of working with the bureau worthwhile.
And the credit bureaus also check out the reporting companies before working with them because they're subject to a lot of legal requirements for how the data is reported, updated and verified. 'Experian does an extensive evaluation of the business to ensure that it is a legitimate company, is well-established in the business, has a physical location, is financially sound, and has gone through a data audit to ensure it has the knowledge and technology to accurately report and verify data according to all legal and policy"
Establishing credit takes time and some patience, but in the end it is worthwhile. If you have no credit history, consider a secured credit card to start. Use it a little each month, but never carry more than 30 percent of your credit limit. Pay it on time, each and every month. Soon you will be able to acquire other cards that are not secured; however, do not request more credit than you absolutely need. In this way you can build a solid credit history and a high credit score.
If you have bad credit, and a poor credit score, consider using a credit repair agency such as Lexington Law. They can help you repair your credit, and in many cases even if you have had a bankruptcy.
The Fair Credit Reporting Act (FCRA) allows a consumer to dispute the information on his credit report on the basis of "completeness and accuracy." When a consumer files a written challenge or dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete.
In some cases, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If the credit bureau has not received verification from the creditor , within 30 days, the credit bureau must promptly delete the credit listing. Learn More.
Don't live with no credit, or worse, with bad credit. Do something about it the right way.
Tags: Private Loans Won't Help Credit History
By Kimberly Lankford
June 28, 2007
Can I establish a credit history in my name if I borrow from a private source, such as a family member? My husband and I are young and are buying a house, and we're borrowing the money from my uncle. If we set up the loan with a regular payment schedule, can we get the loan onto our credit record to show that we've been making payments on time?
Unfortunately that loan won't show up on your credit record. The credit bureaus only report information when they have a contractual relationship with the lender. These lenders and other companies typically have to do enough business with the credit bureau (both reporting and accessing credit information on borrowers) to make the cost of working with the bureau worthwhile.
And the credit bureaus also check out the reporting companies before working with them because they're subject to a lot of legal requirements for how the data is reported, updated and verified. 'Experian does an extensive evaluation of the business to ensure that it is a legitimate company, is well-established in the business, has a physical location, is financially sound, and has gone through a data audit to ensure it has the knowledge and technology to accurately report and verify data according to all legal and policy"
Establishing credit takes time and some patience, but in the end it is worthwhile. If you have no credit history, consider a secured credit card to start. Use it a little each month, but never carry more than 30 percent of your credit limit. Pay it on time, each and every month. Soon you will be able to acquire other cards that are not secured; however, do not request more credit than you absolutely need. In this way you can build a solid credit history and a high credit score.
If you have bad credit, and a poor credit score, consider using a credit repair agency such as Lexington Law. They can help you repair your credit, and in many cases even if you have had a bankruptcy.
The Fair Credit Reporting Act (FCRA) allows a consumer to dispute the information on his credit report on the basis of "completeness and accuracy." When a consumer files a written challenge or dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete.
In some cases, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If the credit bureau has not received verification from the creditor , within 30 days, the credit bureau must promptly delete the credit listing. Learn More.
Don't live with no credit, or worse, with bad credit. Do something about it the right way.
Tags: Private Loans Won't Help Credit History
Monday, June 25, 2007
Personal Loans for Bad Credit
Personal loans for bad credit
There are times when it is just not easy to keep up with financial obligations. Keeping your credit report in good order and clean requires making your payments on time every month. However, sometimes due to illness, lack of work, or other problems the money is not available.
Now there is help. You can get a personal loan even if you have bad credit or no credit. These services make it fast and easy to get the cash you need to bridge the gap. There is no faxing, and the cash is usually delivered to your bank account by the very next day.
Don't get behind on your bills when there is help for you. If you are building credit, one of the most important variables that the credit reporting agencies grade you on is whether or not you pay your bills on time.
Need some extra cash now? You can get $1500 today! Bad credit or No credit is Ok! They can lend to you!
Tags: Personal Loans for Bad Credit
There are times when it is just not easy to keep up with financial obligations. Keeping your credit report in good order and clean requires making your payments on time every month. However, sometimes due to illness, lack of work, or other problems the money is not available.
Now there is help. You can get a personal loan even if you have bad credit or no credit. These services make it fast and easy to get the cash you need to bridge the gap. There is no faxing, and the cash is usually delivered to your bank account by the very next day.
Don't get behind on your bills when there is help for you. If you are building credit, one of the most important variables that the credit reporting agencies grade you on is whether or not you pay your bills on time.
Bills coming in? Get up to $1500 NOW!! 
Need some extra cash now? You can get $1500 today! Bad credit or No credit is Ok! They can lend to you!
Tags: Personal Loans for Bad Credit
Thursday, May 31, 2007
How_Credit_Reports_are_Calculated
How_Credit_Reports_are_Calculated
A credit score, also known as a FICO score, is a three digit number that lenders use to estimate risk. Generally, borrowers with higher credit scores are less likely to default on a loan than those with lower FICO scores.
How are credit reports and scores calculated?
Credit scores are produced by using certain data from your credit report which is weighted to create your personal score. Since the three major credit reporting agencies don't use the same scoring systems, don't be surprised if your credit scores from each one are slightly different. A FICO score is generated using software created by Fair Isaac Corporation -- FICO.
Credit scores range between 340 to 850. The higher your credit score, the lower the risk a lender believes you will be. As your score increases, the interest rate you are offered generally declines.
Borrowers with credit scores more than 700 are typically offered more financing options and better interest rates, which can save thousands of dollars over the life of a loan.
Tags: How_Credit_Reports_are_Calculated
A credit score, also known as a FICO score, is a three digit number that lenders use to estimate risk. Generally, borrowers with higher credit scores are less likely to default on a loan than those with lower FICO scores.
How are credit reports and scores calculated?
Credit scores are produced by using certain data from your credit report which is weighted to create your personal score. Since the three major credit reporting agencies don't use the same scoring systems, don't be surprised if your credit scores from each one are slightly different. A FICO score is generated using software created by Fair Isaac Corporation -- FICO.
While we don't know all of the criteria used to calculate scores, we do know that the following items of a credit history are most important, and are weighted as shown:
- 35% - Your Payment History Number of accounts paid as agreed
- 30% - Amounts You Owe How much you owe on accounts and the types of accounts with balances
- 15% - Length of Your Credit History Total length of time tracked by your credit report
- 10% - Types of Credit Used Total number of accounts and types of accounts (installment, revolving, mortgage, etc.)
- 10% - New Credit Number of accounts you've recently opened and the proportion of new accounts to total accounts
Negative public records or collections
Delinquent accounts:
total number of past due items
how long you've been past due
how long it's been since you had a past due payment
How much of your revolving credit lines you've used--looking for indications you are over-extended
Amounts you owe on installment loan accounts vs. their original balances--to make sure you are you paying them down consistently
Number of zero balance accounts
Length of time since accounts were opened
Time that's passed since the last activity
The longer your (good) history, the better your scores
A mixture of account types usually generates better scores than reports with only numerous revolving accounts (credit cards)
Number of recent credit inquiries
The time that's passed since recent inquiries or newly-opened accounts
If you've re-established a positive credit history after encountering payment problems
Credit scores range between 340 to 850. The higher your credit score, the lower the risk a lender believes you will be. As your score increases, the interest rate you are offered generally declines.
Borrowers with credit scores more than 700 are typically offered more financing options and better interest rates, which can save thousands of dollars over the life of a loan.
Credit scores among the US population in 2003:
- Up to 499: 1%
- 500 - 549: 5%
- 550 - 599: 7%
- 600 - 649: 11%
- 650 - 699: 16%
- 700 - 749: 20%
- 750 - 799: 29%
- Over 800: 11%
Don't despair if your credit score is low - over time you can increase your score. It takes some work, but it is worth it in the long run. For more information about how to increase your credit score go to Three Tips to Increase Your Bad Credit Score.
Tags: How_Credit_Reports_are_Calculated
Thursday, May 24, 2007
Veteran Identity Theft Breach
Veteran Identity Theft Breach
One year ago this week it was reported that the personal information of 26.5 million veterans was stolen from the home of a Department of Veterans Affairs employee.
“This security breach is the largest reported loss of personal information so far this year,” said LifeLock CEO Todd Davis. “The information that was taken can be a gold mine for identity thieves, and a major headache for veterans who become victims."
Veterans, Protect Yourself Immediately! Click here!
LifeLock does the prevention work by maintaining active fraud alerts with the three major credit bureaus as well as ChexSystems. The LifeLock Identity Prevention system makes personal information useless to everyone but the rightful owner. Anytime someone attempts to open credit, change an address or make changes to bank accounts, LifeLock ensures that the right person is making the request.
Also unique to other ID thef protection products on the market, LifeLock removes a member’s name from solicitation lists and junk mail, eliminating a primary target of ID thieves – the pre-approved credit offer. Best of all, LifeLock is backed by a $1 million guarantee to completely fix any problems if a client was ever compromised.
LifeLock Identity Theft Prevention - Save 10%
“We have a lot of veterans who are currently LifeLock customers,” Davis said. “They can rest assured that no matter who has their personal information, they’ll be protected. Now we want other veterans to know they can be safe, too."
Based in Chandler, Arizona, LifeLock is the nation’s first and only preventative answer to identity theft that completely guarantees its service. The company was the first to offer special programs for children under 16 and victims of Hurricane Katrina and Rita.
Tags: Veteran Identity Theft Breach
One year ago this week it was reported that the personal information of 26.5 million veterans was stolen from the home of a Department of Veterans Affairs employee.
“This security breach is the largest reported loss of personal information so far this year,” said LifeLock CEO Todd Davis. “The information that was taken can be a gold mine for identity thieves, and a major headache for veterans who become victims."
Veterans, Protect Yourself Immediately! Click here!
LifeLock does the prevention work by maintaining active fraud alerts with the three major credit bureaus as well as ChexSystems. The LifeLock Identity Prevention system makes personal information useless to everyone but the rightful owner. Anytime someone attempts to open credit, change an address or make changes to bank accounts, LifeLock ensures that the right person is making the request.
Also unique to other ID thef protection products on the market, LifeLock removes a member’s name from solicitation lists and junk mail, eliminating a primary target of ID thieves – the pre-approved credit offer. Best of all, LifeLock is backed by a $1 million guarantee to completely fix any problems if a client was ever compromised.
LifeLock Identity Theft Prevention - Save 10%
“We have a lot of veterans who are currently LifeLock customers,” Davis said. “They can rest assured that no matter who has their personal information, they’ll be protected. Now we want other veterans to know they can be safe, too."
Based in Chandler, Arizona, LifeLock is the nation’s first and only preventative answer to identity theft that completely guarantees its service. The company was the first to offer special programs for children under 16 and victims of Hurricane Katrina and Rita.
Tags: Veteran Identity Theft Breach
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