Credit Reporting 101

Let's take on the fundamentals of the credit reporting system. From the big three credit bureaus, TransUnion, Equifax and Experian, to your rights under the Fair Credit Reporting Act, this article will help you navigate the credit report maze.

The credit reporting agencies - TransUnion, Equifax and Experian (formerly TRW) are the three national credit reporting agencies that keep records on consumers. The reporting agencies work with lenders, creditors, insurers and employers to update and distribute your information to the appropriate institutions. Here's an example of how the system works:

1. When you apply for a new credit card the creditor requests a copy of your financial history from the reporting agencies. This causes a "hard inquiry" to be recorded on your credit report.

2. The creditor uses your credit reports and scores along with income and debt information to determine what rates to offer.

3. You start to use the new credit card and the creditor reports your activities to the credit reporting agencies about every 30 days.

4. The credit reporting agencies update your credit report as they receive new information from creditors or lenders.

5. Your credit profile changes based on your financial activity. The next time you apply for a credit card or loan, the process repeats.

Your credit report - Your credit report is divided into six main sections: consumer information (address, birthday and employment), consumer statement, account histories, public records, inquiries and creditor contacts. When you open a new account, miss a payment or move, these sections are updated with new information. Old negative records will stay on your credit report for 7-10 years. Positive records can remain on your credit report longer. Not all creditors report to all three agencies and the agencies obtain their data independently so your reports from TransUnion, Equifax and Experian could be substantially different from each other. That's why it's important to check your three credit reports every 6-12 months to ensure that the information is accurate and up-to-date.

Correcting inaccuracies - Under the Fair Credit Reporting Act, consumers are protected from having inaccurate information on their credit reports. If you find an inaccurate record on your report, try contacting the creditor or lender associated with the mark first. These companies can usually correct the mistake and send an update to the credit reporting agencies. If you can't make progress this way, you can also dispute the inaccuracy directly with the credit reporting agencies.

Working the system - Managing your credit and maintaing a good credit history can lead to better rates on major purchases. We recommend that you check your credit reports every 6-12 months or at least 3 months before a major purchase in order to guard against damaging inaccuracies and identity theft. Routine check-ups along with paying your bills on time, keeping your credit card balances below 35% of their limits and correcting any negative inaccuracies will help you maintain a healthy credit profile.

Financial Education Services (FES) and FES Protection Plan

Financial Education Services - FES Protection Plan

Protect your Credit File with Positive Credit Builder! p>

Your Credit Score is the most important number in your financial life. Your Positive Credit Builder credit analysis document will provide the necessary tools to understand the credit scoring system and how it impacts your financial health and freedom.

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As the leader in proactive identity theft protection, LifeLock takes proven steps to help prevent thieves from destroying your credit and good name – even if they get your information.

Protect Your Loved Ones Future with FES Will and Trust Plan!

Planning for life's uncertainties brings you and your family peace of mind. But a will alone is not enough. You also need a living trust, medical power of attorney, and financial power of attorney.

Protect your finances with FES DebtZero!

SAVE THOUSANDS with the most effective, most efficient debt pay off system available. Get out of debt easier than ever with a clear precise plan that is customized for you.

What is FES DebtZero?

FES DebtZero is a web-based debt acceleration program that provides individuals with personalized direction they need to accelerate the pay off time of all their debts and mortgage. FES DebtZero guarantees that if you follow your personalized instructions you will be 100% out of debt and mortgage free in less than half the time it takes the average person, making regular payments, while saving or gaining thousands of dollars in the process.

Can anybody qualify or use FES DebtZero? Is FES DebtZero right for me?

If you have a checking account, make more money than you spend and have debt that you want to pay off quickly then FES DebtZero will work for you.

How Does FES DebtZero Work?

1. Deposit Income

Deposit your income, as you normally would, into your standard checking account. It doesn't matter if you direct deposit or hand it to a teller. FES DebtZero is a web-based program that is used as a management tool like a navigation system for your finances. Provide the secure FES DebtZero system your financial overview and the system will offer step-by-step direction so you can properly apply optimal payments toward your debt. FES DebtZero directs you on the best quickly pay off your debt that is also conducive to wealth accumulation. The less money that you have to pay on interest, the more money you'll have growing in your account.

2. Follow Prompts

The program looks at your deposited funds, expected expenses, dates they are due, and safely reserves funds for any unexpected expenses. FES DebtZero then analyzes this information and generates monthly prompts that will provide precise directions for paying off 100% of your debt, without any alteration to your existing lifestyle. In other words, you will still be able to enjoy yourself while paying down your debt!

3. Pay Expenses

Continue to use your checking account to make payments to your monthly bills, as they become due. If you currently pay your bills using online bill pay you can continue to do so. You will also use your checking account for daily budgeted spending (i.e. gas, groceries, entertainment etc). Any money that you have not spent is left in your account to accumulate and then used to pay off your debts or mortgage.

For more information contact

Mark Bustamonte Regional Sales Director Financial Education Services 954-707-2932 Direct

Financial Education Services (FES) and FES Protection Plan

VR Tech announces name change to Financial Education Services

At the first annual National Convention in Atlanta, GA in February 2010, VR Tech Marketing Group announced the name change to Financial Education Services (FES) to better identify the mission of the company and related product line.

Coral Springs, Florida (PRWEB) March 5, 2010 -- VR Tech Marketing Group, in order to better identify it mission, products and services, announced a name change to Financial Education Services (FES).

VR Tech Marketing Group, now Financial Education Services (FES) has been in successful operation for over 7 years. FES has worked with consumers since 2003 to help educate consumers about the importance of credit as well as providing resources to help consumers improve and maintain there credit rating.

Financial Education Services over the years has continued to build it's product line by adding products that enhance the credit restoration process. FES recognizes that the key to helping someone that has credit issues requires more then just deleting derogatory items from the credit report.

Some on the enhancements include the VR Tech Prepaid MasterCard as well as the UltraScore program. The prepaid MC offers an unsecured minimum line of credit that is acquired by applying a direct deposit from an employer to the consumers card. This ensures the repayment of the unsecured line as well as building good payment history.

UltraScore provides a comprehensive credit analysis for the consumer as well as an "Action Plan" to help the consumer understand all the components of there credit profile and what they need to do in order to maximize there credit in the most efficient manner.

Another major announcement that was made a the National Convention was the creation of the YFLF (Youth Financial Literacy Foundation) and the YFL (Youth Financial League) designed to help teach youth the importance of being financially literate. This program is geared toward youth ages between 8 to 18. This program will provide interactive web based teaching modules. Youth that complete the financial curriculum will be eligible for educational scholarships.

As well introduced was the launch of the FES Protection Plan. The FES Protection Plan is holistic approach to help consumers protect all areas of their finances and includes: Positive Credit Builder, Identity Theft Protection, Estate Planning, FES Debtzero.

FES Debtzero is a web based application that helps consumers to establish a clear and precise method of eliminating personal debt, secured or unsecured, in the most effective way. This tool will show the consumer how to repay there debt while creating discretionary income for savings.

Financial Education Services (FES) with it's long history of success as a company and very high valued products is positioning it self to be a major player in the revitalization of the economy by address the issue of financial illiteracy in communities all across the country.

For additional information about how you can on Financial Education Services (FES) please contact Mark Bustamonte at 954-707-2932 or visit https://www.myfinancialeducationservices.com.

About Financial Education Services (FES):

Mark Bustamonte is a Sales Director for Financial Education (FES) services and has been a member since 2003.

Contact Info

Mark Bustamonte, Sales Director Financial Education Services 954-707-2932 http://www.myfinancialeducationservices.com http://www.primefinancialcreditservices.com http://www.financialempowermentnetwork.com

What is the definition of accurate information?

This is the $64 question. The Yale University School of Law put together an excellent publication that states, "Consumer reporting agencies must correct or delete inaccurate, incomplete or unverifiable information..."

http://www.yale.edu/hronline/careers/screening/documents/FairCreditReportingAct.pdf This is the first key to understanding what information can be placed on your credit report and which party bears the burden of proof. There are volumes of case law on this subject, but don't expect to see the credit bureaus placed in a negative light when looking for this definition on their websites. This would be like the IRS providing you with a guide on how to fool the tax auditor.

Consumers don't really know what should and should not be on their credit reports and hence, don't have the basis to challenge the information it contains. Look at the class action law suit filed at www.bankruptcydischargesettlement.com. This law suit alleges that bankruptcy debts in particular were manipulated to bring down credit scores more than they would be from the bankruptcy itself. There is a clear advantage to banks and insurance companies who profit from charging higher rates and fees to this class of consumer.

The process of identifying "inaccurate, incomplete, and unverifiable" information is best accomplished by someone who knows exactly what information is being reported. Many times, there can be something as simple as the opening date of the account that is wrong. Be definition, this is inaccurate. If the last activity date is unknown, this is incomplete. If the current balance on a loan cannot be verified, then that information is unverifiable. There are numerous other pieces of data that all fall under this same category.

10 Reason to Repair Bad Credit

Bad credit not only keeps you from getting a credit card or loan; it can leave you homeless, carless, and even worse, jobless. This is due to the fact that more and more businesses are using your credit to make decisions about you. If this isn't reason enough to get your credit in order here are 10 reasons why you should repair your credit.

1. Save money on interest Low credit scores mean you have higher interest rates and pay more on loan balances.

2. Lower insurance rates Your credit history affects what you pay on insurance premiums. This includes home, auto, and life insurance.

3. Stop paying high security deposits Phone companies and utility service providers check your credit before establishing service. They charge a deposit to offset the risk of default. Bad credit can often mean a hefty deposit amount.

4. Get a higher credit limit The more you pay bills on time; creditors will increase your credit limit. Before an increase though, they will check your credit.

5. Buy a new house Owning a home has always been the American Dream. Bad credit means a high interest rate that can often make a home unaffordable.

6. Rent an apartment Bad credit can not only keep you from buying a home, it can also keep you from renting an apartment. Landlords check credit to determine the probability that you'll be late on your rent.

7. Buy a new car Auto lenders are among the many businesses that often check your credit before lending to you.

8. Get a job Employers will check your credit before deciding to hire you. A bad credit history can cost you a job or a promotion.

9. Stop relying on co-signers When your credit is bad, you'll often need others to co-sign for credit cards and loans. This puts financial pressure on them and they don't receive any benefit.

10. Start your own business Starting a new business takes money, so to get your business off the ground many entrepreneurs often rely on small business loans. Bad credit can keep you from getting financing.

Country Moutain Coastal is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit creditfor more information on Country Moutain Coastal.

Is Credit Repair Ethical?

Most Americans know that it is possible to have information changed on your credit report, but many are concerned about whether or not it is ethical.

This begs the question: If you were to start up a credit reporting agency, how would you go about it? After all, isn't that what Experian, Trans Union and Equifax have done?

Well what would you do? The process requires that you contact a variety of financial institutions, taxing authorities, collection agencies, etc. and then propose to pool that information into one record source that could be mutually accessed by all participating members. The credit agencies love to say, "don't shoot the messenger", but in fact, they have solicited, finagled, begged, pleaded and bought their way into the "messenger" position. This is the very reason why there are 3 main reporting agencies and not just one – competition for business!

Once you understand that, the Fair Credit Reporting Act makes a lot of sense. You see, since 1971, and with numerous amendments and subsequent Acts passed by Congress, the issue at stake is not their capacity to report, but rather, the privacy of US citizens.

Trust me; these agencies would report your age, sex, religion, bank account balances, health records, blood pressure, driving record, and your grades from elementary school if they thought they could get away with it. The core purpose of the FCRA and other Acts like the Fair and Accurate Credit Transactions Act is to place the burden of proof upon the credit agencies, and NOT the consumer.

It is as if the credit agencies are writing a book on every financial relationship you've had since age 18, and they offer, on the cheap, to sell that book to anyone who wants to join the book club. When a consumer attempts to challenge the information contained on their report, they are merely calling for a "fact check" with the publisher. The FCRA requires that information contained on a consumer report be 100% accurate, complete, and verifiable.

Back to the ethics question. Let's say I own a million-dollar home with a million-dollar mortgage balance. I've never been late. Is it really EVERYBODY'S business to know how much I owe, when the debt was taken out, whom is obligated on the debt, the current balance, which bank, the payment amount – and ALL of that in addition to the payment history? Wouldn't it be sufficient to state "George pays his mortgage on time?" A person inclined to privacy might want to have that information deleted, even IF they pay on time. The fact that someone chooses to challenge the negative information is merely an expression of their right to privacy. Let's hope we never get too cavalier about that.

I am a member of the Financial Empowerment Network Team and Prime Financial Credit Services

Your Credit Score Is Yours to Control

Are you confused by credit, and how to create a better credit score? Don't feel bad, many consumers and business people find it hard to understand why their credit score is low. They pay their bills. And when they are a little late on a payment, they pay extra fees to the Lenders to make up for that. The Lenders enjoy great profits, and yet, the Borrower gets penalized more. Is it fair? I say NO! Enough! It's time for us to take control of our credit scores, and get them to reflect accurately, what kind of people we really are. In fact, the United States government agrees. Toady, there are laws to protect us, and allow us to take back control of our credit histories and credit scores.

Use these laws to make sure you aren't forced to pay more for auto loans, credit cards, mortgages, insurance and utilities. Besides costing you more money in monthly bills, we've been hearing more about people who get job offers that are later taken back, because of a "bad" credit score, a result of having been out of work for a year or longer. They didn't use credit to support a luxurious lifestyle. Ironically, they are penalized by taking away the very thing that they need to get back on their feet and to get back to paying their bills. Is it just me, or does it seem ridiculous to you as well? Credit reporting agencies, and Lenders, seem to believe that it's their right to penalize consumers to any level that they choose. The US government says it isn't their right. It is their right to report late payments and defaults on payment agreements, to the extent that they report it accurately. Is the information on your credit report accurate?

Frits Tessers is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit Personal Coaching for more information on Frits Tessers.