Get acquainted with matters of personal credit through our helpful tips and useful resources below.

Get Your Credit Report
Credit Repair
Debt Consolidation
Lenders for Less-Than-Perfect Credit
Secured Credit Cards

Credit Management
How often should I check my credit report?
Where can I get a copy of my credit report?
How do I dispute inaccurate information?
How can I improve my creditworthiness?
How do I build a credit history & establish credit?
Why aren't my spouse's accounts on my credit report?
What to do if your credit requests are turned down
What do the codes on my credit report mean?

GET YOUR CREDIT REPORT
Many financial experts agree that you should check your credit report at least once a month. Creditors generally send updates to the Credit Bureaus once every month. Therefore, your account information should be updated once a month as well. If you are expecting an important change in one or more of your accounts, or if you are closely monitoring your credit history, you may want to check your credit report more often.

CREDIT REPAIR

Credit reports are playing a much bigger role in our financial lives than ever before – and studies prove that up to a quarter of all credit reports contain errors.

No longer are the reports used just for deciding things like interest rates on a loan. Today, some employers check them to screen job applicants, and some insurance companies use credit scores in figuring out policies – a controversial practice.

Because the credit reporting industry is regulated, in part, by the Fair Credit Reporting Act, many credit reports from the credit bureaus are consistent. All reports, for example, tell who previously requested copies – so you can know who has been checking up on you.

What is interesting, however, is negative information does not always show up on all three bureaus. It is important to keep in mind that just because one bureau reports one negative, doesn't mean the others will show the same.

Quick Tip: Our staff likes Suzy Orman's FICO kit, which includes includes three FICO® scores and credit reports and shows you how to get the lowest rates on credit cards, get out of debt quicker, save on mortgage and car loans, and correct credit report errors and omissions. To obtain your Suzy Orman's FICO Kit, click here.

You have the right to dispute any misinformation on your credit report. You should begin the dispute process by contacting the creditor responsible for the inaccuracy. The contact information for each of your creditors is listed at the end of your credit report.

DEBT CONSOLIDATION

Let the professionals help you
If you don't have personal friends or family to help you — and you feel like you need help — there are plenty of reputable sources. We recommend:

Credit & Debt
Credit & Debt works with your creditors, and you, to pay off your debts and get you on your feet again.

Simplify your life by letting Credit & Debt manage your day-to-day finances, improve your credit, negotiate for lower interest rates, and save you money so you can have all the fun you want in your life.

To apply for the Free 30-min Debt Consultation, click here.

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LENDERS FOR LESS-THAN-PERFECT CREDIT

E-Loan
E-Loan is licensed in all 50 states. A leading online lending company, E-Loan offers offering a broad choice of products from many lenders for mortgages, home equity loans, auto loans, education loans, and credit cards in a secure online environment, combined with comprehensive personal service from dedicated loan consultants.

To learn more about E-Loan, click here.^ Back to top

SECURED CREDIT CARDS: TIPS & RECOMMENDATIONS

Beware: while secured credit cards can be an effective way to build or re-establish your credit history, some marketers of secured cards make deceptive advertising claims to entice you to respond to their ads.

Secured vs. Unsecured Cards
Secured and unsecured cards can be used to pay for goods and services. However, a secured card requires you to open and maintain a savings account as security for your line of credit; an unsecured card does not.

The required savings deposit for a secured card may range from a few hundred to several thousand dollars. Your credit line is a percentage of your deposit, typically 50 to 100 percent. Usually, a bank will pay interest on your deposit. In addition, you also may have to pay application and processing fees -- sometimes totaling hundreds of dollars. Before you apply, be sure to ask what the total fees are and whether they will be refunded if you're denied a card. Typically, a secured card requires an annual fee and has a higher interest rate than an unsecured card.

Deceptive Ads and Fraud
The Federal Trade Commission (FTC) has taken action against companies that deceptively advertise major credit cards through television, newspapers, and postcards. The ads may offer unsecured credit cards, secured credit cards, or not specify a card type. The ads usually lead you to believe you can get a card simply by calling the number listed. Sometimes the number is not toll-free. A '900' number service, for which you are billed just for making the call, may instruct you to give your name and address to receive a credit application, or give you a list of banks offering secured cards. It also may tell you to call another '900' number -- at an additional charge -- for more information.

Deceptive ads often leave out important information.

The cost of the '900' call — which can range from $2 to $50 or more; the required security deposit, application, and processing fees; eligibility requirements like income or age; an annual fee or the fact that the secured card has a higher than average interest rate on any balance.

How to Avoid the Fraud
To avoid being victimized, look for the following signs:

> Offers of easy credit
No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.

> A call to a '900' number for a credit card
You pay for calls with a '900' prefix — and you may never receive a credit card.

> Credit cards offered by "credit repair" companies or "credit clinics."

These businesses also may offer to clean-up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.

Credit Reporting
If you're considering a secured card as a way to build or reestablish a credit record, make sure the issuer reports to a credit bureau. Your credit history is maintained by companies called credit bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors. If your card issuer doesn't report to a bureau, the card won't help you build a credit history.

For More Information
To build a credit record, you may want to apply for a charge card or a small loan at a local store or lending institution. Ask if the creditor reports transactions to a credit bureau. If they do — and if you pay back your debts regularly — you will build a good credit history.

If you cannot get credit on your own, you can ask a relative or friend with a good credit history to act as your cosigner. The cosigner promises to repay the debt if you don't.

If you're having problems paying bills, you may want to contact a credit counseling service. Non-profit organizations in every state counsel consumers who are in debt. Counselors try to arrange a repayment plan that is acceptable to you and your creditors. They also can help you set up a realistic budget. These counseling services are offered at little or no cost to consumers. You can find the office nearest you by checking the White Pages of your telephone directory.

Sometimes, nonprofit counseling programs are operated by universities, military bases, credit unions, and housing authorities. They are likely to charge little or nothing for their services. Or you can check with your local bank or consumer protection office to see if it has a list of reputable low-cost financial counseling services.

For information and rates on secured credit cards, may we refer you to the following:
http://www.cardweb.com/mod_perl/cardlocator/survey/secured

CREDIT MANAGEMENT

How often should I check my credit report?
Many financial experts agree that you should check your credit report at least once a month. Creditors generally send updates to the Credit Bureaus once every month. Therefore, your account information should be updated once a month as well. If you are expecting an important change in one or more of your accounts, or if you are closely monitoring your credit history, you may want to check your credit report more often.

All creditors do not send updates to the bureaus on the same day. The Credit Bureaus are constantly receiving updates. There is no easy way to tell exactly when a creditor will send new information to the bureaus, or when the bureaus will update their databases. However, it is common for the same creditor to update records on the same day of each month. Thus, it is smart to choose the same day each month to check your credit report.

Where can I get a copy of my credit report?
How much does it cost? It is important that you obtain and review a copy of your credit report from each of the three major Bureaus once a year to make sure your information is accurate. Each agency charges a service fee that varies from company to company.
Experian ($14.95)
TransUnion ($12.95)
Equifax ($9.00)
3 in One Credit Report (all three agencies in one report) ($29.85)

All three reporting agencies collect information and all three may be looked at by creditors

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How do I dispute inaccurate information on my credit report?
You have the right to dispute any misinformation on your credit report. You should begin the dispute process by contacting the creditor responsible for the inaccuracy. The contact information for each of your creditors is listed at the end of your credit report.

You can also dispute inaccurate information directly with the Credit Bureaus.

 
How can I improve my creditworthiness?
By observing the following guidelines, you can gradually boost your creditworthiness:

• Pay your bills on time. Prove that you are a reliable and consistent consumer.
• Check your credit report regularly and dispute inaccuracies. Don't let your creditworthiness be lowered by inaccurate information.
• Watch your debt. Keep your account balances below 75% of your available credit.
• Watch your available credit. If you have multiple accounts, all with high credit limits, lenders may conclude that your access to excessive unused credit could result in too much debt.
• Avoid excessive inquiries. Inquiries mean that you have been seeking credit with various credit grantors, resulting in multiple requests for your credit report. Creditors may view too many inquiries as a sign that you are experiencing financial difficulties.

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How do I build a credit history and establish credit?

New credit
Building a good credit history is important. If you have no reported credit history, it may take time to establish your first credit account. This problem affects young people just beginning careers as well as older people who have never used credit. It also affects divorced or widowed women who shared credit accounts that were reported only in the husband's name. If you do not know what is in your credit file, check with your local Credit Bureaus. Most cities have two or three Credit Bureaus, which are listed under "Credit" or "Credit Reporting Agencies" in the Yellow Pages. For a small fee, they will tell you what information is in your file and may give you a copy of your credit report.

If you do not have a credit history, you should begin to build one. If you have a steady income and have lived in the same area for at least a year, try applying for credit with a local business, such as a department store. Or you might borrow a small amount from your credit union or the bank where you have checking and savings accounts. A local bank or department store may approve your credit application even if you do not meet the standards of larger creditors. Before you apply for credit, ask whether the creditor reports credit history information to Credit Bureaus serving your area. Most creditors do, but some do not. If possible, you should try to get credit that will be reported. This builds your credit history.

Your own credit
If you have had credit before under a different name or in a different location and it is not reported in your file, ask the Credit Bureau to include it. If you shared accounts with a former spouse, ask the Credit Bureau to list these accounts under your name as well. Although Credit Bureaus are not required to add new accounts to your file, many will do so for a small fee. Finally, if you presently share in the use of a credit account with your spouse, ask the creditor to report it under both names.

Creditors don't have to report any account history information to Credit Bureaus. If a creditor does report on an account, however, and if both spouses are permitted to use the account or are contractually liable for its repayment, under the Equal Credit Opportunity Act, you can require the creditor to report the information under both names. When contacting your creditor or Credit Bureau, do so in writing and include relevant information, such as account numbers, to help speed the process. As with all important business communications, keep a copy of what you send.

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Why aren't my spouse's accounts on my credit report?
The Credit Bureaus maintain credit files on individuals, so your credit report contains payment information on credit accounts that are in your name only. This is why your credit report is separate and unique from that of your spouse.

What to do if your credit requests are turned down
If you are rejected for credit, find out why. There may be reasons other than lack of credit history. Your income may not meet the creditor's minimum requirement or you may not have worked at your current job long enough. Time may resolve such problems. You could wait for a salary increase and then reapply, or simply apply to a different creditor. However, it is best to wait at least 6 months before making each new application. Credit Bureaus record each inquiry about you. Some creditors may deny your application if they think you are trying to open too many new accounts too quickly.

If you still cannot get credit, you may wish to ask a person with an established credit history to act as your co-signer. Because a cosigner promises to pay if you don't, this can substantially improve your chances of getting credit. Once you have repaid the debt, try again to get credit on your own.

You need a steady work record and continued residence at the same address. If you do not have a checking account, open one and be careful not to bounce checks. You may apply for credit at a local department store or credit union. You might also consider a secured credit card, which requires you to deposit money as security for the charges you make on the card.

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What do the codes on my credit report mean?
The most common of the codes used to describe an accounts condition are as follows:

On the far right hand side of the report is the consumer payment history for the past 25 months. These codes reflect the monthly status of an account and are displayed for balance reporting loans. Collections and charge-offs are not graded. These codes stand for: