Q: What is my Credit Report?
A: Your credit report has four parts:
1.Your identifying information.
2.Your public record information (used to determine if
you have any legal judgments against you).
3.Other credit history information (a list of your credit
cards, outstanding loans, payment histories, etc.)
4.Inquiries (a list of creditors/parties who have previously
requested your credit report).
Q: How can I get a copy of my Credit Report?
A: There is no single credit report. It is advised that
you obtain a credit report from all three of the major credit
reporting
bureaus:
TransUnion, Experian and Equifax. The Fair and Accurate Credit
Transactions Act ("FACT")
enables you to obtain a free copy of your credit report,
once a year, from each of the three credit reporting bureaus.
Call 1-877-FACTACT for more information,
or visit the FACT web
site to learn more about access to your credit
history. Q: How often should I get my credit report?
A: It is suggested that you review your credit report once a
year, or, prior to making a major purchase such as real estate, to
ensure that there are no errors in your credit reporting which could
slow down any credit approval process or deny you the best loan
terms.
Q: What should I be looking for when I review my credit report
and how do I correct any erroneous information?
A: You should make sure that your credit
bureau accurately reflects the payment history on your accounts. If
your report incorrectly displays a late payment you will want to correct
that immediately. You should also verify that all accounts listed on
the report are yours, especially if you have a common name (such as
John Smith).
Q: What is a credit score and why is it important?
A: A credit score is a number calculated by a credit bureau
or another company for use in making a decision on a loan application
or other product or service. PFFCU uses a system developed by Fair
Isaac and Company called the "FICO score." Think of credit scoring
as a point system based on your credit history, designed to help
predict how likely you are to repay a loan or make payments on time.
Different lenders may use different scoring systems, so your score
may vary significantly from one source to another.
In general, the better your credit score, the better your chances
are of getting a loan with an attractive interest rate.
Q: What are the most important factors in determining my credit
score?
A: Typically, your credit score is most influenced by
two factors: how timely you pay your debts, and how much debt
you owe. Late payments on loans, a past bankruptcy, debt collections,
or a court judgment ordering you to pay money as a result
of a lawsuit, will negatively affect your credit score.
Lenders want to be sure that the debt you owe is manageable. Lenders
get concerned if you have a significant amount of debt compared to
your income.
Other factors that can affect your credit score include how long
you've used credit, how often you've applied for new credit and whether
you've taken on new debt.
If you have any questions or concerns about a specific credit bureau,
you may contact the Federal
Trade Commission at 1-877-FTC-HELP, or visit
their web site.
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