Faqs

Answers to the Most Frequent Questions

Some of your Questions:

What is a credit report?
A credit report is a record of your personal and financial information. It tracks your payment history, loan payment history, balances owed to you and any items in default collections.
What is a credit score?
Your credit score is a 3-digit number that measures your worthiness to acquire credit. Your score is a number between 300 and 850, with 850 being the best score. Lenders use this score to decide if you qualify for a loan and what your interest rate will be.
Does looking at my credit report affect my score?
No, looking at your credit report will not affect your credit score. You can request a free copy of your credit report once per year.
What does my credit score affect?
Having a low credit score can prevent employment opportunities, low interest loans, securing specific loans and financing high priced items like home and cars.
Why is credit repair important?
Many people have errors on their credit reports that may lower their credit scores. Without identifying them, these mistakes can become costly. A credit repair specialist can help to analyze your credit report and take steps to correct errors.
Who can check my credit report?
Your financial information is only given to entities that legitimately need it. Banks, employers, landlords, collection agencies, insurance companies, utility companies, student loan providers, collection agencies and government agencies can view your credit report with your permission.
How common are credit report errors?
The Federal Trade Commission conducted a study and found that one in five people have an error on one or more of their credit reports. These errors can lower your credit score and your ability to obtain new credit or low interest rates.
How many credit bureaus are there?
There are three major credit reporting agencies that lenders report to. They are Equifax, Experian and TransUnion. Credit bureaus use data provided by creditors to create your credit reports.
How often does my credit score update?
Data is added to your credit report when lenders report information, which is at least once per month. These modifications will likely produce a new credit score.
What is APR on a credit card?
APR refers to Annual Percentage Rate. It’s the annualized interest rate applied to loans, mortgages and credit cards. Borrowers are required to pay a finance charge in addition to the amount of the loan.
What are signs of credit card fraud?
Any signs of strange or suspicious activity could be credit card fraud. Signs to look out for are unknown transactions, payments from unfamiliar locations, unreputable merchants, lower credit limits, small charges applied to your account and new accounts that have been opened in your name without your knowledge.
How far back do employment credit checks go?
According to FCRA rules, pre-employment credit checks are not permitted to cover more than seven years of credit history. In cases where the salary exceeds $75,000 the credit check can consider up to 10 years of financial history.
Why Do Employers Check Your Credit?
Employers use credit checks to verify information about the applicant, such as experience, debt management and responsibility of financial obligations. Many companies do credit checks to ensure the safety of staff and consumers, secure quality candidates and protect the reputation of the company.
What’s a soft inquiry on my credit report?
A soft inquiry is a credit check that happens when you check your own credit`or a lender checks your credit for preapproval for a loan. This type of inquiry will not affect your credit score.
What a hard inquiry on my credit report?
A hard inquiry is a credit check that occurs when you apply for a credit card or a loan. This type of inquiry can affect your credit score.