Posts Tagged Credit Checks
Do Credit Inquires Hurt Your Credit Score?
Mike Clover asked:
A credit inquiry is an item on your credit report that shows with permission a creditor requested your free credit score report.
Not all credit inquiries affect your credit score:
You may notice when you pull your credit report there are inquiries on there from a business you are not familiar with. The only inquiry that affects your credit score is the one where you are applying for credit. This is considered a hard pull on your report.
Inquiries that affect your credit score:
There is only one type of inquiry that affects your score. This type of inquiry is applications for a mortgage, auto loan and other credit, by you authorizing these creditors to access your credit report. This type of inquiry prompted by your own actions ends up on your personal credit report and affects your score.
An inquiry that does not affect your credit score: Checking your own personal credit report or any business that offers goods and services that requests your report. A business that you already have a account with that requests a check. A potential employer that does credit checks. Some of these types of inquiries might show up on your report but do not affect your credit score.
Checking your credit report does not affect your score:
Checking your credit report on a regular basis to ensure it is accurate and error free is recommended by Fair Isaac the inventor of the FICO Score. Maintaining a error free report is part of credit management which will improve your credit rating over time. Ordering your credit report at CreditScoreQuick.com does not hurt your credit score.
How credit inquiries are factored in your Credit Score:
There are five types of information used to calculate your credit score. Each category accounts towards a percentage of your score.
Payment History – 35%
Amounts Owed – 30%
Length of Credit History – 15%
Types of Credit in use – 10%
New Credit – 10%
Don’t let inquires scare you. There is nothing wrong with shopping for a better rate, or better terms on a loan. As you can see in the about chart, payment history is the biggest factor in calculation process of your credit score. The second biggest factor is how much of your approved credit limits are charged up. But of course you don’t want to go out and start applying for every credit offer out there either. Be responsible and have a good mix of credit, but stay away from too much credit as well You really on need 3 lines of credit reporting on your report.
Example:
1. credit card
2. car note
3. installment loan
This type of credit mix accounts for 10% of your score.
Alvin
A credit inquiry is an item on your credit report that shows with permission a creditor requested your free credit score report.
Not all credit inquiries affect your credit score:
You may notice when you pull your credit report there are inquiries on there from a business you are not familiar with. The only inquiry that affects your credit score is the one where you are applying for credit. This is considered a hard pull on your report.
Inquiries that affect your credit score:
There is only one type of inquiry that affects your score. This type of inquiry is applications for a mortgage, auto loan and other credit, by you authorizing these creditors to access your credit report. This type of inquiry prompted by your own actions ends up on your personal credit report and affects your score.
An inquiry that does not affect your credit score: Checking your own personal credit report or any business that offers goods and services that requests your report. A business that you already have a account with that requests a check. A potential employer that does credit checks. Some of these types of inquiries might show up on your report but do not affect your credit score.
Checking your credit report does not affect your score:
Checking your credit report on a regular basis to ensure it is accurate and error free is recommended by Fair Isaac the inventor of the FICO Score. Maintaining a error free report is part of credit management which will improve your credit rating over time. Ordering your credit report at CreditScoreQuick.com does not hurt your credit score.
How credit inquiries are factored in your Credit Score:
There are five types of information used to calculate your credit score. Each category accounts towards a percentage of your score.
Payment History – 35%
Amounts Owed – 30%
Length of Credit History – 15%
Types of Credit in use – 10%
New Credit – 10%
Don’t let inquires scare you. There is nothing wrong with shopping for a better rate, or better terms on a loan. As you can see in the about chart, payment history is the biggest factor in calculation process of your credit score. The second biggest factor is how much of your approved credit limits are charged up. But of course you don’t want to go out and start applying for every credit offer out there either. Be responsible and have a good mix of credit, but stay away from too much credit as well You really on need 3 lines of credit reporting on your report.
Example:
1. credit card
2. car note
3. installment loan
This type of credit mix accounts for 10% of your score.
Alvin
How to Arrange Credit Checks on Individuals
Chris J Anderson asked:
The credit check is very important step for back ground check in HR. The credit worthiness of some candidate can have significant importance in the decision of hiring especially if there is some unexplained area. The access of credit check is however not that easy, there are easy to understand legal requirement regarding the privacy of person to protect the personal credit history. The request to bank for credit check can include the following documents.
1- Request for obtaining Credit Report
2- The key information (simple or comprehensive report)
3- Permission for obtaining the credit report (endorsed by the future employee)
The legal requirements for the check in case of employee assessment is that the person should endorse in writing the request for the credit report. The reason for issuance of this information might be to obtain the honesty and credibility of the future employee. The bank however should provide the partial credit information not the complete credit history of employee.
If some decision like promotion is done based solely on the report, the legal requirement is there to disclose that information to the employee. This will automatically give him the right to challenge if he is not satisfied.
There are some cases where the other person can easily have the access to the personal information especially the credit reports; these include the case where the person might have given the power of attorney to bank for obtaining it. The minor, children and legal hires can obtain the credit reports, the procedure will be to send a request with due documents attached stating the reason of obtaining this information.
The exceptional cases for obtaining of the credit report can also include the credit report relating to some transaction to assess the credit worthiness, for example the credit checks done for the re mortgage or credit debt settlement cases.
Another similar situation where the credit can be requested is in case of insurance, or assessment for credit worth for underwriting purpose. This request is normally provided to the bank with due reason, so in return the bank shares the particular information with the insurance company or the other financial institution involved.
The eligibility of someone for obtaining some official benefit can also be attached to it. The government benefits and licenses are some times attached to certain income groups, as the result the agencies responsible for dispersal of these benefits can ask for the credit report too.
Elaine
The credit check is very important step for back ground check in HR. The credit worthiness of some candidate can have significant importance in the decision of hiring especially if there is some unexplained area. The access of credit check is however not that easy, there are easy to understand legal requirement regarding the privacy of person to protect the personal credit history. The request to bank for credit check can include the following documents.
1- Request for obtaining Credit Report
2- The key information (simple or comprehensive report)
3- Permission for obtaining the credit report (endorsed by the future employee)
The legal requirements for the check in case of employee assessment is that the person should endorse in writing the request for the credit report. The reason for issuance of this information might be to obtain the honesty and credibility of the future employee. The bank however should provide the partial credit information not the complete credit history of employee.
If some decision like promotion is done based solely on the report, the legal requirement is there to disclose that information to the employee. This will automatically give him the right to challenge if he is not satisfied.
There are some cases where the other person can easily have the access to the personal information especially the credit reports; these include the case where the person might have given the power of attorney to bank for obtaining it. The minor, children and legal hires can obtain the credit reports, the procedure will be to send a request with due documents attached stating the reason of obtaining this information.
The exceptional cases for obtaining of the credit report can also include the credit report relating to some transaction to assess the credit worthiness, for example the credit checks done for the re mortgage or credit debt settlement cases.
Another similar situation where the credit can be requested is in case of insurance, or assessment for credit worth for underwriting purpose. This request is normally provided to the bank with due reason, so in return the bank shares the particular information with the insurance company or the other financial institution involved.
The eligibility of someone for obtaining some official benefit can also be attached to it. The government benefits and licenses are some times attached to certain income groups, as the result the agencies responsible for dispersal of these benefits can ask for the credit report too.
Elaine
3 Simple Ways to Use Online Credit Reports to Improve Your Personal Credit
Aaron Vaughn asked:
Like most Americans you may be skeptical of why an unseen online agency would want to “help” you by checking your credit score for free. I mean, aren’t they just out there to get your money? The truth is, these credit checks can really help you, especially if you are trying to improve your credit.
First, by checking your credit online, you avoid “dings,” which lower your score. Many consumers are afraid to investigate their credit because they think their score might drop, putting them in even worse shape. This isn’t true with online credit reports. Thus, without dinging your credit, online sources allow you to check out your score, for better or worse.
Alternately, if you have been denied credit within the last 30 days, you can ask the credit bureau for a free report that won’t ding your credit. You do have to use a local reporting agency, which can take more time than using an online source. Most people go in person to the agency to request the report and then pick it up. Both of these steps seem quite tedious when compared to online credit checks.
Another benefit of online credit reports is the ability to see both good and bad credit you have on your report from the privacy of your own personal computer. No nosy bankers trying to get your a credit card or auto loan. Without sales pressure, you are less likely to get into more debt and lower your credit score.
Lastly, you can verify the accuracy of your credit. The online report will be taken from each of the three national credit bureaus. Occasionally you will see accounts that you dispute, which gives you the opportunity to contact the bureau. To do this, you must write a letter explaining exactly what is incorrect or disputed. The agency must investigate. When they contact the creditor, he has 14 days to respond or the item is deleted off your credit. A little known secret is that if the item is less than $500 or older than one year, most creditors won’t bother responding, whether your dispute is accurate or not. Disputing bad credit is the most direct way you can improve your credit. When your bad credit is reversed your credit score will increase. Most importantly, after your score goes up you have the right to demand that your updated credit report be sent to all those who have denied you credit in the last six months. Good news!
So, if you wonder how good, or bad, your credit score is, don’t be afraid to check it out online. The report is excellent information that arms you with power to change and improve your credit. Most people with bad credit don’t know much about how it gets that way or how to fix it. Your knowing both is a good start to improving your credit.
Kristin
Like most Americans you may be skeptical of why an unseen online agency would want to “help” you by checking your credit score for free. I mean, aren’t they just out there to get your money? The truth is, these credit checks can really help you, especially if you are trying to improve your credit.
First, by checking your credit online, you avoid “dings,” which lower your score. Many consumers are afraid to investigate their credit because they think their score might drop, putting them in even worse shape. This isn’t true with online credit reports. Thus, without dinging your credit, online sources allow you to check out your score, for better or worse.
Alternately, if you have been denied credit within the last 30 days, you can ask the credit bureau for a free report that won’t ding your credit. You do have to use a local reporting agency, which can take more time than using an online source. Most people go in person to the agency to request the report and then pick it up. Both of these steps seem quite tedious when compared to online credit checks.
Another benefit of online credit reports is the ability to see both good and bad credit you have on your report from the privacy of your own personal computer. No nosy bankers trying to get your a credit card or auto loan. Without sales pressure, you are less likely to get into more debt and lower your credit score.
Lastly, you can verify the accuracy of your credit. The online report will be taken from each of the three national credit bureaus. Occasionally you will see accounts that you dispute, which gives you the opportunity to contact the bureau. To do this, you must write a letter explaining exactly what is incorrect or disputed. The agency must investigate. When they contact the creditor, he has 14 days to respond or the item is deleted off your credit. A little known secret is that if the item is less than $500 or older than one year, most creditors won’t bother responding, whether your dispute is accurate or not. Disputing bad credit is the most direct way you can improve your credit. When your bad credit is reversed your credit score will increase. Most importantly, after your score goes up you have the right to demand that your updated credit report be sent to all those who have denied you credit in the last six months. Good news!
So, if you wonder how good, or bad, your credit score is, don’t be afraid to check it out online. The report is excellent information that arms you with power to change and improve your credit. Most people with bad credit don’t know much about how it gets that way or how to fix it. Your knowing both is a good start to improving your credit.
Kristin
“So. I can’t hire you cause you have bad credit, SORRY”. ARE YOU SERIOUS?
Posted by admin in Personal Finance on July 9, 2010
.:~ B@dOnKiE ~:. asked:
Wow!
I truly thank God I have a job right now! But am I the only one that is bothered by this? Please tell me.
Wow!
I truly thank God I have a job right now! But am I the only one that is bothered by this? Please tell me.
Many employers are now starting to do credit checks on applicants and basing their hiring decision based on this!
First off with the poor economy many Americans are having a had time simply keeping up. Many have lost their jobs due to lay-offs. I don’t know about you but I can’t be with out a job for no more than 3 months.
READ THIS:
“Employers reviewing a credit report want to see that the applicant is financially stable, not overextended, and meeting his or her obligations in a responsible manner,” says Sam Davidson, customer service manager with Bills.com.
The credit information is important, Meschke adds, when comparing two applicants. “If, for example, an applicant reports a significant level of personal debt obligations or credit delinquencies that might distract that person from his/her job responsibilities, then a hiring entity may take that information into consideration when comparing such an applicant to another comparative candidate without such distractions.”
I feel that if you have bills to pay, this will motivate ANYONE to bust their A$$ and make that money. Do you agree? Even to be a Law enforcement officer! They would rather hire someone that has previous gang association than to hire someone with a fico score of under 600. Next they’ll start juding people that have experiance divorce cause they can’t consintrate on their work…. PLEASE!
We are all human and $hit happens. I realize that some people ARE irresponsible and spend more than what they can, but seriously… People need to work to survive and to be judged based on this especially with there difficult economic times is just not right.
PEACE!
YOU GOT IT FROGLADY!!!!! Jude me based on my criminal background and job performances! Sorry, But no matter how much I might me hurting financially I would NEVER steal! That is being judgmental and discriminating!!!!!!!
lol! Sorry… got emotional and spelled “Judge” wrong. hehe!
Jerry
Why Should I Get My Totally Free Credit Report?
Gary Bunn asked:
Your credit file is a document that presents a complete picture of your financial situation, both past and present, and is the primary deciding factor that leads your creditors to accept or decline your applications. So you can clearly see how important your credit report is! It’s also really important that you make sure the information recorded on your report is up to date and accurate. It is estimated that 7 in every 10 credit reports requested contain an error or incorrect entry of some sort! Just imagine the effect this must be having on your applications.
Your credit report is used to decide not only if you should be approved for a credit application, but it will also affect the rate of interest you pay, and also whether you will be required to provide a deposit or guarantor. Checking your credit file can be a quick and easy task that could mean the difference between getting that next credit card, motor loan or even a mortgage, so the sooner you check your report the better!
There are 3 main companies that collect and record your details and these are known as ‘credit referencing agencies’. The major 3 are Experian, Equifax and Trans-Union. You can apply individually to these agencies who are required to provide you with a copy, however there may be a fee associated with it.
Alternatively you can get a free copy of your credit report from all three companies here. These companies also offer subscription services to protect and monitor your files, which also helps prevent identity theft, but don’t think you have to pay for this! Regular credit report checks and common sense with your personal details (such as shredding) will certainly help keep you one step ahead!
Once you have copies of your report take a few minutes read through your file and highlight any potential problems you see. Once you have a list you can contact the referencing agency and let them know your disputes, they are legally obliged to look in to these for you. It may also help to write to the company who has entered the inaccurate info.
The most important thing for you to do is to get a copy of your report and check the details! You could be very surprised at what you discover! Remember you can get a free copy of your Free Instant Credit Report here, it really won’t cost you a dime. Good luck!
Maurice
Your credit file is a document that presents a complete picture of your financial situation, both past and present, and is the primary deciding factor that leads your creditors to accept or decline your applications. So you can clearly see how important your credit report is! It’s also really important that you make sure the information recorded on your report is up to date and accurate. It is estimated that 7 in every 10 credit reports requested contain an error or incorrect entry of some sort! Just imagine the effect this must be having on your applications.
Your credit report is used to decide not only if you should be approved for a credit application, but it will also affect the rate of interest you pay, and also whether you will be required to provide a deposit or guarantor. Checking your credit file can be a quick and easy task that could mean the difference between getting that next credit card, motor loan or even a mortgage, so the sooner you check your report the better!
There are 3 main companies that collect and record your details and these are known as ‘credit referencing agencies’. The major 3 are Experian, Equifax and Trans-Union. You can apply individually to these agencies who are required to provide you with a copy, however there may be a fee associated with it.
Alternatively you can get a free copy of your credit report from all three companies here. These companies also offer subscription services to protect and monitor your files, which also helps prevent identity theft, but don’t think you have to pay for this! Regular credit report checks and common sense with your personal details (such as shredding) will certainly help keep you one step ahead!
Once you have copies of your report take a few minutes read through your file and highlight any potential problems you see. Once you have a list you can contact the referencing agency and let them know your disputes, they are legally obliged to look in to these for you. It may also help to write to the company who has entered the inaccurate info.
The most important thing for you to do is to get a copy of your report and check the details! You could be very surprised at what you discover! Remember you can get a free copy of your Free Instant Credit Report here, it really won’t cost you a dime. Good luck!
Maurice
Would you find it odd if oh say a bank(Bank of America for instance) ran 14 credit checks on you in less than?
Posted by admin in Immigration on January 22, 2009
SilverPhoenix asked:
a year on your personal credit report and the only thing you hold with them(per se) is a business loan account? Just curious. Especially(just as an example of course) you’ve had done business with them the past five years and never had anything like this in any of the previous years happen?(per se)
Funny thing is i did. They hung up on me. LOL. The payments were never late. Sure did a number on my score though.
Actually from my estimate its five to 7 points per check. Yes i have copies of all my quarterly credit reports for the past five years. I’d say they’re screwed.
to kynance: Well get this, CHASE sent me a letter not a month after i dscovered this saying they lost my personal information. Hmmm. yah just coincidence right?
Trust me its bigger than it sounds.
Well, that would be fine and dandy if i was not paying two to three times the amount owed each month. I’m a stickler for paperwork. And yes i have every statement, receipt,invoice for the past 7 years. They are not looking too good here, and THEY KNOW IT.
To baby poot: Let’s just say its out of my hands now. Figured some might find it interesting. My question to them at the beginning was where did they get my social security number? Remember it was a business account.
There’s a reason why i posted this in immigration. All one would have to do is go back and look at previous questions i have posted and answers i’ve given (along with links) to be able to put two and two together. Just read them. It will not take you long to figure it out.
And yes it’s very real.
Kansieo.com
a year on your personal credit report and the only thing you hold with them(per se) is a business loan account? Just curious. Especially(just as an example of course) you’ve had done business with them the past five years and never had anything like this in any of the previous years happen?(per se)
Funny thing is i did. They hung up on me. LOL. The payments were never late. Sure did a number on my score though.
Actually from my estimate its five to 7 points per check. Yes i have copies of all my quarterly credit reports for the past five years. I’d say they’re screwed.
to kynance: Well get this, CHASE sent me a letter not a month after i dscovered this saying they lost my personal information. Hmmm. yah just coincidence right?
Trust me its bigger than it sounds.
Well, that would be fine and dandy if i was not paying two to three times the amount owed each month. I’m a stickler for paperwork. And yes i have every statement, receipt,invoice for the past 7 years. They are not looking too good here, and THEY KNOW IT.
To baby poot: Let’s just say its out of my hands now. Figured some might find it interesting. My question to them at the beginning was where did they get my social security number? Remember it was a business account.
There’s a reason why i posted this in immigration. All one would have to do is go back and look at previous questions i have posted and answers i’ve given (along with links) to be able to put two and two together. Just read them. It will not take you long to figure it out.
And yes it’s very real.
Kansieo.com