Credit for Paycheck

Alphonso Smith asked:


As credit increased thoughout the country, there arose a great need to issue reports concerning those who are not a good credit risk as well as those who are of credit worthiness.

Because of this great need, credit reporting agencies were

formed several years ago. These agencies, known as credit bureaus, receive information about consumers (such as you) from banks, loan companies, credit card compnies, department stores

and other credit issuing sources. Credit bureaus earn their profits by giving a computer readout showing a financial profile and credit history of any individual. These reports are requested by a lender or any credit issuing firm from which you

or any individual have requested credit.

Most lenders will base their acceptance or rejection of your credit application on the information on your credit report. If your credit report shows that you have been reliable in the

past, then in most cases credit is granted. The amount being a determining factor also. However, what if your report reveals that you have had some credit problems in the past? Perhaps you

have encountered circumstances beyond your control which made it possible to meet your personal credit obligation. It happens.

What if your credit report shows that you’ve defaulted on a particular credit account or you were constantly late with your monthly payments? Or you have co-signed for a ‘friend’ or relative that leaves you holding the bag. This of course can be most embarrassing but worst, usually leads to credit denial.

There are approximately 2500 credit reporting agencies in the U.S. These agencies sell information about you to banks, department stores, credit card companies, loan companies, etc.

These credit bureaus keep on file information concerning you and your credit but they do not make the final judgment on your credit worthiness. The decision is up to the lender which you have dealt with, to decide who to issue credit. The decision is usually based on information in your report.

You have a right to know what is in your credit report. It is your personal credit file, you should know what information the credit bureau is giving out concerning your name and your credit. If the information is adverse, outdated, or incorrect,it can be changed. For the better.

Ryan Cote asked:


Good credit is crucial in today’s economy. Good credit allows you to have credit cards, obtain car or home loan, and to take advantage of many other money-related conveniences. It is possible to live without good credit, but having a bad credit rating can affect you negatively for the rest of your life.

You might be surprised to know that only a handful of credit bureaus in North America hold the key to your credit rating, and therefore your financial future. These credit bureaus receive the positive and negative reports issued by your creditors and create your personal credit report and credit score based on the results. If your credit history is poor, it is important to repair your credit so that you don’t get turned down for a mortgage or even a department store credit card. In order to do this, you must first learn how to deal effectively with a credit bureau.

Begin by finding out what credit bureau has your file. This information will be on any rejection letters you may have from a declined credit application. Next, you’ll need to obtain a copy of your credit history. Remember that you are allowed, by law, to obtain a copy of your credit history if you’ve been denied credit, though some organizations might imply otherwise. You should only pay for a credit report if you want an instant copy, rather than to have one mailed to you, in which case a bureau will send you one for a fee.

It is important to remember that a credit bureau is in the business of collection and selling information. This means that you should never provide them with any information that you are not required to by law, unless you want them to use it against you. It is legally necessary for you to provide the following to get a copy of your credit report:

1. Name

2. Social Security Number

3. Legal Address

The credit bureau might request copies of your social security card or your driver’s license. If they ask for a copy of your driver’s license as proof of address, it’s best to provide them with a copy of a bill or something else addressed to you instead. You should be careful when providing credit bureaus information, because most own collection agencies and they will use any of the information that you provide to hassle you with the credit and collection issues that you are already trying to fix.

Examine your report closely and note any possible errors. If you have questions about a specific debt, you can mail a written request to the credit bureau that they investigate that particular debt. Legally, the credit bureau is required to document any discrepancies on your credit report, otherwise, if they don’t do this in 30 days, the entire item must be removed. Most of the credit repair companies out there will charge you fees to perform this service, but you can do it yourself for free with just a little bit of time and effort.

Learning to deal with credit bureaus will allow you to engage in successful credit repair without paying a credit repair company a high fee. When you educate yourself in what the legal obligations are that credit bureaus entail, in many cases, you can effectively repair your own credit just as quickly as a credit repair company.