F.A.Q.

• 35% – Payment History
• 30% – Debt Ratio
• 15% – Length of Credit History
• 10% – Types of Credit
• 10% – Number of Credit Inquiries

A credit report is the equivalent of a consumer’s financial report card. It details your credit history as it has been reported to the credit reporting agency by the lenders who’ve given you credit. Your credit report lists the types of credit you use, the amount of time your accounts have been open, and if you pay your bills on time. Your credit report is used by many different companies to make decisions about you. Credit card companies, Banks, mortgage companies, auto loan and insurance companies, also landlords and employers check credit reports to check on your credit history. Why? They know that if you were responsible in the past, you are likely to be responsible in the future.

“Credit scoring” of is a system creditors use to help determine whether to give you credit, and how much to charge you for it. When you apply for credit, the creditor or lender will often request your report (or credit score) from one of the big three bureaus (Equifax, Experian or Trans-Union). In some instances, however (such as when applying for a Mortgage), the broker or lender will pull reports from all three. These Bureaus grade your “credit worthiness” by calculating your credit history against a system called the Fair Isaac Model. Fair Isaac uses a variety of factors to determine your score, such as; your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts. The final outcome of those calculations is referred to as your FICO® score. FICO® scores range from 300 to 850, but the majority of scores fall between the 600s and 700s. Higher scores indicate a lower credit risk. A FICO® score above 700 will get you a very good mortgage rate. A score above 720 will get you an excellent rate. A score below 700 will make it very difficult for you, and definitely should be worked on. Correcting mistakes on a credit report in order to repair an undesirable credit score takes time. It’s your responsibility to correct mistakes that may appear in your credit report. To do this, you must regularly obtain copies of your credit reports, and contact each of the big three credit reporting bureaus to correct any misinformation.

The bulk of the report will be filled with credit information showing the following:

1. 1. Identification Information –– The first thing listed will be your name, date of birth and Social Security number. These are used for identification. Employment information may also be listed. As well as current and past addresses, spouse’s name (if you’re married) and date of birth are also listed for further identification.
   2. Public Record Information — Data from federal, state or county court records. Bankruptcies, liens or judgments and other types of claims. The information listed will be; Date filed, court case number, amount, status and date settled.
   3. Collection Agency Information — A collection is an account that has been turned over to a collection agency by one of your creditors because you have not paid the account as agreed. Listed here are; collector’s name, originating creditor/client, original amount, balance due and account number.
   4. Credit Information — This section makes up the bulk of the report. It will include mortgage, installment, revolving, other, open and closed accounts. It will also list accounts in good standing, accounts currently past due, negative account history, merchant/creditor name, subscriber number, account number, date opened, date closed, current balance, highest credit limit, highest amount of credit used, and your repayment history. Your repayment history is shown as a string of numbers showing your payment history. With each credit account, you will see listed the account’s status and history. They are generally marked as follows:
      • Current Account – “Account Open” or “Closed in Good Standing”
      • Closed Account – Credit Account Closed
      • Paid Account – Closed Account or Zero Balance
      • Credit Account Reinstated – Previously Closed Account Now Available for use
      • Foreclosure – Collateral sold to collect Defaulted Mortgage
      • Collection Account – Credit Account Assigned to Collection Agency
      • Inquiry – your credit information was requested by this company or Creditor
   5. Inquiries that display All authorized and legitimate requests to see your credit history.
   6. Inquiries that DO NOT display These inquiries are displayed only to you and are not considered when tabulating your credit score. Examples of this inquiry type include a pre-approved offer of credit, insurance or periodic account reviews by an existing creditor.

Consumer Statements If for some reason you cannot prove that a negative item is an error or if you are having a disagreement with a certain creditor, you have the right to tell your side of the story in 100 words or less. This statement will be ADDED to your report.

Items cannot come back as long as the item is current or paid at the time of removal or if the collection is older than three years. This holds true except in very rare circumstances.

• Medical information (unless you provide consent)
• Notice of bankruptcy (Chapter 11) more than ten years old
• Debts (including delinquent child support payments) more than seven years old
• Age, marital status, or race (if requested from a current or prospective employer)

• Delinquencies (30- 180 days): A delinquency may remain on file for seven years; from the date of the initial missed payment.
• Collection Accounts: May remain seven years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked as a “paid collection” on the credit report.
• Charge-off Accounts: When a delinquent account is sent to a collections company. This will remain for seven years from the date of the initial missed payment that led to the charge-off (the original delinquency date), even if payments are later made on the charged-off account.
• Closed Accounts: Closed accounts are no longer available for further use and may or may not have a zero balance. Closed accounts with delinquencies remain for seven years from the date they are reported closed, whether closed by the creditor or by the consumer. However, the delinquency notation will be removed seven years after the delinquency occurred when pertaining to late payments. Positive closed accounts continue to be reported for ten years from the closing date.
• Lost Credit Card: If there are no delinquencies, credit cards reported as lost will continue to be listed for two years from the date the creditor is contacted. Delinquent payments that occurred before the card was lost are reported for seven years.
• Bankruptcy: Chapters 7, 11, and 12 will remain on one’s credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy.
• Judgments: Remain seven years from the date filed.
• City, County, State, and Federal Tax Liens: Unpaid tax liens remain for fifteen years from the filing date. A paid tax lien will remain on one’s score for 10 years from the date of payment.
• Inquiries: Most inquiries listed on one’s credit report will remain for two years. All inquiries must remain for a minimum of one year from the date the inquiry was made. Some inquiries, such as employment or pre-approved offers of credit, will show only on a personal credit report pulled by you.