What is a credit bureau? Experian, TransUnion, Equifax
February 10, 2016
What is a credit bureau? There are 3: Experian, TransUnion, & Equifax
When you opt to buy something on credit or take a loan, the lenders don’t just decide to give you the facility right away. They try to collect information on your credit behavior, both past and present, track record, and various other data to ensure that you have the potential to fulfill the liabilities you obligate yourself with. This is where the Credit Bureau comes into the picture.
Ok, so what is a credit Bureau?
A credit bureau is a company that collects and maintains credit information of individuals and supplies it to the interested organizations and bodies such as lenders, creditors, etc. As a consumer, you can also have your own credit report from the bureau. The credit information is basically a summary of your credit behavior and includes the following details:
- How much of credit you have
- How much of the credit is left
- How much credit are you using
- How often do you make your payments
Credit information also contains rental repayment reports if you own a property. Other details mentionable in a credit report are liens, judgments, and other details that expresses your current financial position.
There are 3 major national credit bureaus in the United States:
- Experian – This global information service group operates in almost 40 countries and employs a total of 17k people. The agency was founded in 1996, the headquarter of which is in Dublin, Republic of Ireland.
- Equifax – Another consumer credit reporting agency and one among the three largest credit bureaus, Equifax records and maintains information of over 400 million credit holders in the world. Based in Atlanta, Georgia, the company employees 7000 plus employees and operates in 14 countries. Equifiax is also one of the oldest credit report gathering agency that has its operations ongoing since 1899.
- TransUnion – The third largest credit bureau in the United States, TransUnion is an American credit information management agency. The company has information of approximately 500 million customers worldwide and over 45,000 business houses. It works closely with Callcredit, a UK based credit reference agency.
Based on the information on your credit report provided by any of the three aforementioned credit bureaus, the lender assesses whether they can offer you the credit or not. Whether your credit scores pose a risk and put you in a bad standing or has a high score that easily help you in obtaining the loan. This will also help them in deciding what interest rates they can offer you.
Summary: What is a credit bureau?
There are agencies that can help you in getting out of a bad credit report. They will help in reestablishing your reputation as a credit holder and will solve all your credit issues. Search on the Internet to find such providers and take their help to get back on your feet.
Credit Repair Services – How Do They Work?
January 24, 2016
Credit Repair Services – How Do They Work?
Do you look at your credit report and think about nothing but credit repair services? Have you had one or more financial misfortunes over the past several years and now have a less than ideal credit score? If yes, then it’s high time to get your credit repair process started. Credit scores have been one of the biggest victims of the financial crisis and the recession. Anyone with poor credit scores will definitely know what a low credit score can cost you.
Credit repair services can improve your credit enough to lower the rate of interest, which can result in saving you thousands of dollars on a loan. When making an essential purchase, such as buying a car, it’s vital to make sure your credit rating is as its best in order to get the best rate and terms possible. Bad credit can land you up in problems and have a considerable negative impact on interest rates or loan approval.
How credit repair services work?
The credit card repair services have been around for a couple decades with better known rules surrounding credit repair and know how to handle those rules to either raise your credit score or give you your money back. The legitimate credit repair agencies will state what quickly repairable issues to look for, how to approach your credit issues and then will submit the appropriate challenge, dispute, or intervention letters to credit bureaus on your behalf, so that your credit rating can get upgraded. They will identify the mistakes, correct the appropriate information, get rid of negative reporting and monitor the creditors to ensure that your credit report is as accurate as possible and corrected accordingly.
Necessity of credit repair services:
- Better car insurance policies: The policies that most car insurance company offer are usually based on the clients’ credit reports. For example, you will end up with a reasonably priced car insurance policy if your report suggests that you are late with paying other accounts. Thus, credit repair services can clean up your credit rating and help you get considerable savings over the duration of your policy.
- Better car loan or mortgage facilities: A low credit score can put a negative impact on getting different car loans. You may not get the desired loan amount or land up paying greater interest on your loans for the lifetime. A bad credit score can lower your credit limit, thus making the loan even more pricey for you. But a report with good credit score will increase your chances to get your own desired vehicle.
A higher credit score can help you with: lower interest rates on your credit card, get approved for low interest loans and lower insurance rates on your car. So, it’s important to keep your credit score in good condition. The higher your credit score is, the lower your interest rates are. There are a handful of benefits that come along with a credit score repair. So, open that door, hold out your hand and grab hold of those opportunities with a credit repair.
What is a Good Credit Score?
April 13, 2015
What is a Good Credit Score?
You may not fully understand your credit score. When trying to get a loan, you may think, “What is a Good Credit Score?” You want to know what type of score you need to qualify for loans. You want to make sure that you are on the right track or that you know when there is a problem. If you do not know what a good credit score is, though, you cannot do this. Thankfully, it is not that hard to understand. While there are several sources for a credit score, it is all easy to understand and is quite similar.
There are several sources for a credit score, as mentioned above. One source is not the same as another source. A lender will look at these scores to determine where you stand. An important part of these scores is that their range differs, too, so the lenders are not looking for a single specific number. They all start from the low hundreds and go up to the high hundreds, but the exact starting point and ending point changes. Since it changes, what makes a good score or the line drawn for a good score is not the same for all of them.
What makes a good score is not the same for all lenders, either. Looking at a single score, the line drawn will change from lender to lender. Some have higher standards or expectations while others are more lenient when looking at credit scores. A 700 may be the minimum score required for one lender, but 600 or 650 may be the minimum for others. Since there are so many differences between lenders, you should not aim for a single number. You should attempt to make your score as good as possible so that you can gain from a high credit score. By aiming for as high of a credit score as possible, you can try to qualify for all lenders.
When thinking, “What is a Good Credit Score?” there is not a lot to consider. A good credit score is a high score. As long as the number is as high up there as possible, you will have a good score. The line drawn and the minimum and maximum scores change, but there is one constant: You should aim high. If you already have a good score, try to improve it and keep up the good work. If not, work on improving it so that your score can actually benefit you.
Does a Car Loan Help My Credit?
April 10, 2015
Does a Car Loan Help My Credit?
You would have probably heard about how a car loan can actually help you in increasing your credit history. But, you must be wondering, ‘Does a car loan help my credit?’ Well, we will try to provide an answer for this question below. Yes, if you are trying to improve the credit health of yours, after facing a bankruptcy, or are just trying to get started as a borrower, taking car loans, and repayment of these loans can help in building up your credit score. Well, we give some details regarding the car credit, and how these are helpful:
Does a Car Loan Help My Credit? – Reasons
• Auto loans are paid back in instalments. When the lenders and the credit bureaus check the credit history of a person, they like to see a good mix of revolving credit and instalment loans. The revolving loans include the home equity loans, and the credit cards. And, the instalment loans include the auto loans, mortgages, and the student loans. Auto loans is one of the easiest kind of loans, and you will be eligible for a good credit history.
• Refinancing of auto loans is easy. If you are a borrower without credit history, you will have to pay the premium for the car loan. And, the interest rate could be high, too. But, after you make the payments on time, for about one or two years, you would be able to refinance the car loan at a lower rate of interest.
• Flexible car loan repayments: Early payment of loans might invite penalties, but other than that, the car loan payments are quite flexible. And, if the monthly instalment for the car is low, you can also plan to make double payments, or extra payments, whenever you feel that you have the liquidity. When you are able to make the payments faster, it can reduce your interest burden, and can also help in boosting the credit score.
These were some of the reasons for taking up a car loan. Hope these answers were satisfactory, and helped you in finding the answers for ‘Does a car loan help my credit?’ Taking a car loan is definitely a good and easy way for boosting the credit history. It is not only easy, but is also quite flexible and affordable. You can drive your way to a good credit history, by purchasing a car with car loans.
How to Build Good Car Credit
April 1, 2015
How to Build Good Car Credit?
While most of us have a credit card with us, it is usually not easy to get hold of the first credit card. There are lots of things, which are checked by the credit card company, before they issue an unsecured credit card. Also, if you wish to purchase anything in life, you need to also have a good credit. Having a good credit history can make you eligible for all kinds of loans, like housing loans, car loans, and other kinds of loans. So, how does one build a good credit history? How to build good car credit? These are some of the questions, for which you will find answers over here.
Want to Know How to Build Good Car Credit?
There are some ways by which you can build a good car credit. And, that is by not paying the full money in cash. Well, if you are planning to purchase a car, you can use the option of dealer financing for purchasing the vehicle. Once you take the dealer financing, you can prepay the complete loan, after just one monthly instalment. Are you wondering how this will help you? Well, you will be paying minimal interest, and you would be establishing a good credit history, by making the payment on time. In fact, some people end up getting better deals on their cars, because the dealers give a lower price when they help you in financing the loans. So, you would actually be making a good profit.
Yes, this is one of the best ways for improving the car credit. And, with the help of this credit history, you would be able to get a credit card issues on your name too. But, once you have the credit card, you should use it in a responsible manner. Sometimes, the credit score is calculated on the basis of the time period, for which the accounts are open. So, it is always useful to have the credit card account kept open. This will help you in achieving the high credit score. And, of course, you should pay the bills on time, and in full. But, remember that you should not go overboard with all these credit cards.
Hope you got your answer for “how to build good car credit”. You can use these options, and improve the car credit, which will be useful for you in purchasing new cars, and also in other things.