1. Credit Reports Take Notes

2. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25,000.002%60($438.19) $ 25,000.004%60($460.41) $ 25,000.006%60($483.32) $ 25,000.008%60($506.91) $ 25,000.0010%60($531.18) $ 25,000.0012%60($556.11)

3. Credit Report  An Overview Of Your Credit Report and Score  Did you know that all your credit card payments – and non- payments – are compiled into a single document known as your credit report? Did you also know that the information in this report can be given a numerical value called a credit score? Your credit report and credit score are the two primary methods that creditors and lenders make a credit decision about you.credit reportcredit score  When you apply for a credit card, either your credit report or credit score (or both) are checked to see if you have a history of late payments on credit cards. Mortgage lenders check your credit report for previous loan defaults. Even the power company checks your credit report and score before turning on your electric service.late payments

4. Credit Report  Your credit report includes information about where you live, where you work, how you pay your bills, whether you’ve filed bankruptcy, and if you’ve been sued. Your report is maintained by credit bureaus. There are three major credit bureaus – Equifax, Experian, and TransUnion.three major credit bureaus  Credit bureaus collect information from credit card companies, banks, virtually anyone with whom you have an agreement to pay. The information is compiled and sold to businesses who want to view the information to make a credit decision about you. The Fair Credit Reporting Act, FCRA, limits the businesses that can access your credit report to those that have “permissible purpose”.Fair Credit Reporting Act  Your creditors and lenders send information about your accounts to credit bureaus. This includes monthly payment status, account balance, credit limit, account status, and any other information that can be used to determine your creditworthiness. Once the information appears on your credit report, it’s available for future creditors and lenders to see.

5. Credit Score  Your credit score is a numerical summary of your credit report. Since it's a number, creditors and lenders can easily assess your credit risk to make a decision about extending a loan or credit card to you. Credit scores range from 300 – 850.  Consumers with higher credit scores are considered to be less risky borrowers than those with lower credit scores. Higher credit scores allow you to get lower interest rates on credit cards and loans, lowering the cost of having credit. Consumers with low credit scores usually have higher interest rates and might be denied for some credit cards, loans, and other credit-based services.  There are many different methods of credit scoring and some lenders even have their own credit score. The most widely used version of the credit score is the FICO score, named for Fair Isaac Corporation, the company credited with developing the score.FICO score

6. Credit Score  All three major credit bureaus have their own version of the FICO score. Equifax uses the Beacon system, Experian uses the Experian/Fair Isaac system, and TransUnion uses the Empirica system. Even though the systems are different, each produces comparable scores.  Credit scores aren’t included in the free annual credit report benefit enforced by the FCRA. Instead, you must purchase your credit report from the credit bureau issuing your credit

7. FICO  Your FICO score is based on five key pieces of information: the timeliness of your bill payments, your level of debt, the types of accounts you have, the length of time you've had credit, and the number of recent credit applications.  You can check your Equifax and TransUnion FICO scores by visiting myFICO.com. Unfortunately, you cannot purchase your FICO score based on Experian credit report data.  FICO is also the name of the company formerly known as Fair Isaac who developed the FICO scoring model.

8. How To Read Your Credit Report  Your credit report contains a wealth of information about your financial actions. If you have credit or loan accounts, those accounts, and how you pay them, are included in your credit report. It’s important to review your credit report at least once a year so you know what your creditors are saying about you.  Understanding your credit report can be confusing, especially if you’re reading it for the first time. Here is a breakdown of the types information contained in your report.

9. Personal Information on Your Credit Report

10.  Personal information including your name, address, and place of employment is used to identify you. Previous addresses and places of employment might also be included.  It’s not uncommon to have variations or misspellings of your name. Most credit reporting agencies leave these variations to maintain the link between your identity and the credit information. Having different variations of your name and old addresses won't hurt your credit score as long as it's actually your information. Make sure personal information is identifying you and not someone else.

11. Credit Summary

12.  The credit summary section of your credit report summarizes information about the different types of accounts you have. This section lists the total number, balance, number current, and number of delinquent accounts. It will include the following account types:  Real estate accounts, any mortgages that you have  Revolving accounts, like credit cards and lines of credit  Installment accounts, like loans  Other accounts  Collection accounts  Your credit summary will also summarize the number of accounts you have open, closed, in public records, and the number of inquiries made against your credit within the past two years.

13. Account History

14.  The account history section of your credit report contains the bulk of the information. This section includes each of your credit accounts and details about how you've paid. Your account history will be very detailed, but it's important that you read through to make sure the information is being reported correctly.

15. Account History  Each account will contain the several pieces of information. Creditor name of the institution reporting the information.  Account number associated with the account. The account number may be scrambled or shortened for privacy purposes.  Account Type, i.e. revolving account, education loan, auto loan.  Responsibility. This indicates whether you have individual, joint, or authorized user responsibility for the account.  Monthly payment is the minimum amount you are required to pay on the account each month.

16. Account History  Date opened. The month and year the account was established.  Date reported is the last date the creditor updated the account information with the credit bureau.  Balance. The amount owed on the account at the time data was reported.  Credit limit or loan amount.  High balance or high credit is the highest amount ever charged on the credit card. For installment loans, high credit is the original loan amount.  Past due. Amount past due at the time the data was reported.  Remarks are comments made by the creditor about your account.  Payment status. Indicates the status of the account, i.e. current, past due, charge-off. Even if your account is current, it might contain information about previous delinquencies.  Payment history. Indicates your monthly payment status since the time your account was established.

17. Public Records

18.  Public records include information like bankruptcies, judgments, tax liens, state and country court records, and, in some states, overdue child support. Depending on the type of account, a public record can remain on your credit report between 7-10 years. Only severe financial blunders appear in this section, not criminal arrests or convictions. Because public records can severely damage your credit, it's best to keep this section clear.

19. Credit Inquiries

20.  Credit inquiries list all parties who have accessed your credit report within the past two years. While your version of the credit report lists several credit inquiries, not all of these appear on the lenders' and creditors' versions. Only "hard" inquiries are shown to lenders. These are inquiries made when a lender checks your credit report to approve your credit application. Your version will also include "soft" inquiries consisting of inquiries made by lenders for promotional purposes.credit inquiries