A Beginner’s Guide to Reading Your Own Credit Report

A Beginner’s Guide to Reading Your Own Credit Report

Credit Scoring

It is important that you know how to read your own credit report. This is something you should do at least once each year to look for errors. The credit bureaus make mistakes sometimes, and it is up to you to catch them. These errors are fairly rare, but it is a good idea to do this nonetheless. You might have to pay for some copies of your report, but it is definitely worth it.

What Does Your Credit Report Consist of?

Your credit report is an official record of all your credit activity. It lists things like bankruptcies, late payments, defaulted loans, and liens. You technically have three separate credit reports from the four main consumer credit reference agencies—Experian, Equifax, Callcredit, and Crediva. Some creditors will report missed or non-payments to one of these agencies, while others will report them to all four.

Your Personal Details

Part of your credit report is personal details, such as your name, address, phone number, and date of birth. When you go to check your credit report, it is important to make sure that it is all correct. If there is anything that is out of date, you should make the credit bureau aware right away.

History of Employers

Your credit report will also list the various employers that you have had over the years. Sometimes this list needs to be updated, and you will have to inform the credit agencies if an update is necessary. This is important information for lenders to use when deciding if someone is going to get approved for a loan. They need to know that the person they are giving the loan to is reliable.

Account Details

There will also be details for your various credit accounts that you have had. This includes any open accounts, closed accounts, your full payment history, and the payment status of any active loans. This section plays a fairly large role in determining what your overall credit score is going to be. A single late payment can have a surprisingly negative impact on your credit score. This is why you need to keep track of all the bills you have to pay.

Public Records

The standard credit report also consists of any items that are a matter of public record, including bankruptcies and judgments against you in civil court. These kinds of things that do a lot of damage to your credit. After a while they will eventually fall off your credit report, and this change will be reflected in your overall score.

Inquiries

Whenever you submit an application for a loan or credit card, it counts as a hard inquiry, which has a small but negative impact on your score. This is precisely why you should avoid filling out a lot of credit applications within a very short period of time. This can really count against your credit in a big way.

Removing Errors from Your Credit Report

If you ever find that there is a mistake on your credit report that needs to be corrected, it is important that you get it taken care of. You should report any inaccurate information to the appropriate credit reporting agency. It can take a while to get these items removed from a credit report, which is why some people hire a third party company. There are certain businesses you can hire to get the job done faster than you could by yourself. The sooner these items get taken off your credit report, the sooner your score will go up.

How to Check Your Credit Report

Checking each of your three credit reports really isn’t that difficult. Each credit reference agency has a different process for doing this. Both Experian and Equifax offer free 30-day trials that you can take advantage of for checking your credit. You can get a free copy of your credit report from each agency, but only once a year.

If you want to get it more often, you can pay for a service. A full credit reporting service can be useful if you frequently need to check your credit for whatever reason. Each of the credit reference agencies offer this service.

Make sure that you get a copy of your credit report from each of the main CRAs. By doing this you will be able to see if there are any mistakes on any of your reports. Since each report will likely be at least a bit different, it is crucial that you do this.

Final Thoughts

Your credit reports are very important for a number of reasons, so you should make a point of looking at them on a semi-regular basis. Those who do this will be able to spot mistakes on their credit report. If you there is some kind of error on your report, you can get it removed to increase your score.

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7 Reasons Why Payday Loans Are So Popular

7 Reasons Why Payday Loans Are So Popular

Payday Loans

There is no question that payday loans have skyrocketed in popularity in the last several years, and there are numerous reasons for that. These loans have quite a lot to offer for many different people. If you need to borrow money for any reason, you should be aware of payday loans and the benefits that are associated with them. This information can help you make a borrowing decision to match your needs.

  1. They Are Short-Term

The average length of a payday loan is two weeks, which means that you don’t need to pay a lot of interest. While some people might look at a short loan period as a bad thing, it will ultimately save you money. Just because you have more time to pay back other types of loans doesn’t necessarily mean you come out on top. The money you save on interest will likely make it easier to return the money you have borrowed by the due date.

  • It’s All Done Online

There are tons of different private lenders such as Emu that give out payday loans, and most of them are based online. You will be able to apply for one of these loans and get your money (if you are approved) without even leaving your home. This makes the whole process of getting a lot much easier and far less complicated. If you want to save yourself a lot of time and effort, you should definitely consider this option. The process of filling out an online payday loan application only takes around 20 minutes or so.

  • People with Bad Credit Can Get Approved

Even people with bad credit can get approved for payday loans without much hassle. If you have a low credit score that is preventing you from getting a traditional bank loan, this is a good alternative. Lots of private lenders who give out payday loans don’t have the same kinds of high standards for applicants’ credit that banks do. It can be difficult to get approved for a loan with bad credit, but this is one way to get the money you need.

  • No Long Waiting Period

Most bank loans will require you to wait a minimum of 3-4 business days before you get your money even after you have been approved. If you cannot wait because you need funds immediately, you should consider applying for one of these loans. Those who are approved can get the money transferred into their bank account within 24 hours. This process usually goes very quickly. This is why payday loans are such a popular option for people who are in a financial emergency. If some expense has suddenly come up and you need money, a payday loan could save you from disaster.

  • Many Lender Options

You definitely won’t be limited when it comes to lenders for a payday loan. There are hundreds of private lenders out there that you can borrow from, but you shouldn’t choose just any of them. Instead you will need to do some research. Make sure that you find a lender that is reputable and seems to have a solid reputation. There are numerous websites where you can go to look up reviews for these lenders. This information will help you make the best possible decision.

  • No Restrictions on Usage

There are no restrictions on how you can use a payday loan like with a bank loan. You don’t have to specify what the loan is for when filling out an application online. This makes it easier to use the funds you receive however you want. Whether it is for car repairs or home improvements, you are free to spend it how you see fit.

  • Interest Rates Aren’t Always That Bad

Payday loans have earned a somewhat negative reputation for high interest rates, but they aren’t always that bad. The rate that you pay on your loan will depend on quite a few factors, including your credit. If you have good credit, you can probably get a very reasonable interest rate. Even those with low credit scores still might be able to get a fair deal. Take some time to shop around with different lenders so you can get a rate that isn’t too high.

Final Thoughts

When you are looking to borrow a smaller amount of money, a payday loan could be exactly what you need. You could borrow anywhere from 50 to 2,000 pounds with one of these loans. Make sure that you choose a legitimate lender so you don’t end up getting ripped off at all. You should also spend some time doing the math to see if you can really afford to take out a loan right now. This information will help you make the right decision.

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