Understanding Credit Files to Repair Credit
If you are in debt and nagged daily by creditors you might want
to understand your credit files to repair your credit. If you
are delinquent in payments your credit score is affected, and
often you can't get a loan.
There are exceptions but if you are able to get a loan or credit
card you will be paying high interest rates. Your credit file
determines your faith in life. If you are credit file has a low
score most landlords, lenders, or providers will turn you down
when you apply for a loan.
Credit files are often found in the computer systems are
maintained by credit bureaus. If your credit file indicates you
are a low risk then you most likely will get a loan, apartment,
credit card, or whatever you apply for.
Credit scores are a 'numerical' system that determines a
person's credit rate and score. Credit scores generally rate
anywhere from '300 to 850' otherwise the scores are higher if a
person has an outstanding credit rate.
If you apply for a loan and the lenders are unable to find your
credit file you are often viewed as a mishap. This means that
you haven't established a credit history and no one can really
tell if you are a good or bad risk.
This is why it is important to establish credit at an early age.
If you apply for department store cards, credit cards, gas cards
or other items that offer you a credit, then you are on your way
to establishing a credit history and your file will be on
record.
The problem with applying for credit cards or loans, or any type
of credit, is that when we start out our parents are often
co-signers. This means if we do not make payments our parents
are obligated to repay the debts. The truth is that when we
apply for a job, apply for an apartment, or take out an
insurance policy we are establishing credit.
Your credit files are often stored in TransUnion, Equifax, and
Experian. The law protects us to a degree when it comes to
credit repair. To understand all the legalities, as well as how
our credit file affects us is important to repairing our credit
history.
Credit Bureaus are coordinated and monitored by the Federal
Trade Commission beneath the requirements of the Federal Fair
Credit Reporting Act (FCRA) and follows up with the State Laws.
If you have credit files with inconsistencies the Fair Credit
Reporting Act protects you in the sense that it requires the
credit bureaus to delete or make the information obsolete on
your credit file.
This protects you if you are a victim of Identity Theft, or any
other false accusations made against you. The Credit Bureaus are
required by the laws to list accuracies on credit files by
gathering the appropriate information against you or on your
behalf.
The laws protect you in the sense that it regulates the credit
bureaus by only allowing them to list negative reports against
you for a limited time. The laws also regulate who can see your
credit files.
If you are applying for a loan, license, public assistance,
insurance, landlords, and courts can request your credit files
without your consent.
However, if you are applying for a job under certain
circumstances the employers will need a written authorization
form from you. Utilities are under the law and these providers
cannot deny you services even if you have bad credit.
As you can see there are a wide range of services that can check
your credit file. The downside is each time your credit is
checked points go on your files. The more points added to your
credit file affects your credit so you want to be careful and
only apply for what you need.
If you have bad credit and trying to repair your credit be sure
to request copies of your credit files, understand your score on
your files, and if you suspect you are a risk it is best to
apply for loans or credit cards after you have cleared your
credit report.