People will have free access to the credit scores being allocated to them by credit reporting agency Veda Advantage.
Veda has caused a stir by announcing that from next month every New Zealander on its books will have a credit score from minus 330 through to plus 1000.
A person with a score of less than 100 will have difficulty obtaining credit, 500 to 600 will be average, and anyone with a score of 700 and above will be considered a good credit risk.
The information will be based on their existing credit profiles, and under the law anyone can ask for a free copy of their file annually. From August 2 this will include the new scores.
John Roberts, Veda's New Zealand and international managing director, emphasised the only new factor built into the scoring system was an automatic driver's licence check to help counter rising levels of identity fraud.
But he said the system had been set up in anticipation of a move to what is known as positive or comprehensive credit reporting, whereby fuller details of a person's financial circumstances can be accessed by potential creditors.
At the moment only "negative" information is available, such as whether the person has ever defaulted on bill payments or been bankrupted.
The Office of the Privacy Commissioner is conducting a review into whether this country should move to positive reporting.
New Zealand and Australia are two of the few countries worldwide to retain a negative system.
Mr Roberts said negative reporting was an "archaic" system that penalised people if they had made the odd mistake. "What we're trying to do is drag [the system] kicking and screaming into the 21st century."
The national president of the Credit and Finance Institute, David Young, said the credit market had taken a battering of late and anything that gave people confidence to extend credit was a good thing.
He said that whereas large organisations had their own credit-scoring systems, small business operators did not necessarily have the skills to make an accurate assessment of someone's creditworthiness based on the raw data. "What they're getting here is a tool that will enable them to do that assessment."
For example, he had recently looked at a credit report where the person had five district court judgments against them, had defaulted 25 times and had applied for credit 32 times in the past two years. "There's a whole raft of information that I can interpret out of that quickly and decisively."
But John Scott, New Zealand head of rival reporting agency Dun & Bradstreet, said he did not see the commercial advantage of a consumer credit score.
Few small businesses extended credit directly to consumers.
He said what was more important was the quality of the data being fed into any credit reporting model.
Dun & Bradstreet supported an initial limited move to positive reporting, allowing information such as whether previous applications for credit had been approved, who the lender was and the extent of the credit.
Overseas credit reports contained details about a person's income, the size of their mortgages and credit card balances, but New Zealanders were "not ready to go all that way".
"No other other country apart from Colombia has moved from a negative to a full positive file."
Consumer magazine editor-in-chief David Naulls said the Consumers Institute did not have a problem with the new scoring system because it was based on existing information.
It cautiously supported a move to positive credit reporting because it could potentially bring costs down as financial institutions were able to make better lending decisions.
It might also aid those without much of a credit history. "Groups who haven't always accessed credit might find it easier in a positive system."
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Friday, July 31, 2009
Thursday, July 30, 2009
Higher Credit Scores Needed to Qualify for Premium Interest Rates
SpendOnLife has partnered with MyCreditHealth to ease the hassle for consumers needing a free credit score from each of the three credit bureaus.
Experts say nothing less than a score of 760 will ensure getting the premium interest rates on credit lines and loans. Someone with a lesser credit score may still qualify for a loan, but likely won't get the best deal. Due to low interest rates being reserved only for those with the highest credit scores, consumers need to track their credit history and monitor their score before approaching lenders.
SpendOnLife's partnership with MyCreditHealth introduces consumers to an around-the-clock credit monitoring service that allows them to access their latest credit reports and credit scores from all three credit bureaus - TransUnion, Equifax, and Experian. 3-in-1 credit reporting offers the most comprehensive view of one's credit in an easy-to-read format and consumers can clearly spot errors or unauthorized activity on all of their reports in one central location.
Members of MyCreditHealth's service are also eligible for key features including assistance in resolving inaccuracies on their reports from personal dispute specialists.
An alert program that sends members a warning when unusual or negative changes post to their credit report, like a delinquency or address change, also proves to be a vital part of the monitoring process. These notifications assist in preventing identity theft, which could severely hinder progress toward improving one's credit score.
The score tracker gives members a useful visual of their credit score progress month after month. The tracker plots all three bureau scores on an easy-to-read chart for simple tracking. By providing a continuous birds-eye view of members' reports and scores, MyCreditHealth helps consumers see if they are headed in the right direction in reaching their credit goals.
SpendOnLife.com (http://www.spendonlife.com) is an online resource that offers the educational materials and tools needed to achieve healthy credit and prevent identity theft. SpendOnLife.com makes it easy to get your credit reports and scores, and offers credit monitoring services. Our goal is to help consumers understand their credit and the dangers of identity theft.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Experts say nothing less than a score of 760 will ensure getting the premium interest rates on credit lines and loans. Someone with a lesser credit score may still qualify for a loan, but likely won't get the best deal. Due to low interest rates being reserved only for those with the highest credit scores, consumers need to track their credit history and monitor their score before approaching lenders.
SpendOnLife's partnership with MyCreditHealth introduces consumers to an around-the-clock credit monitoring service that allows them to access their latest credit reports and credit scores from all three credit bureaus - TransUnion, Equifax, and Experian. 3-in-1 credit reporting offers the most comprehensive view of one's credit in an easy-to-read format and consumers can clearly spot errors or unauthorized activity on all of their reports in one central location.
Members of MyCreditHealth's service are also eligible for key features including assistance in resolving inaccuracies on their reports from personal dispute specialists.
An alert program that sends members a warning when unusual or negative changes post to their credit report, like a delinquency or address change, also proves to be a vital part of the monitoring process. These notifications assist in preventing identity theft, which could severely hinder progress toward improving one's credit score.
The score tracker gives members a useful visual of their credit score progress month after month. The tracker plots all three bureau scores on an easy-to-read chart for simple tracking. By providing a continuous birds-eye view of members' reports and scores, MyCreditHealth helps consumers see if they are headed in the right direction in reaching their credit goals.
SpendOnLife.com (http://www.spendonlife.com) is an online resource that offers the educational materials and tools needed to achieve healthy credit and prevent identity theft. SpendOnLife.com makes it easy to get your credit reports and scores, and offers credit monitoring services. Our goal is to help consumers understand their credit and the dangers of identity theft.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Wednesday, July 29, 2009
Five Points to Fixing Your Credit
A couple of months ago a friend was telling me about some financial difficulty with their business and remarked how fortunate they were to have their credit line on their home available for backup. I advised them to check with their bank to make sure their credit line was still available. Unfortunately, I was correct because their credit line had been closed without their knowledge.
Another client called to ask about buying a home and when I asked about their credit history they said they were trying to pay down some credit cards only to find that once the amount due was paid the bank reduced their limit.
The first basic in credit scoring is to understand what the numbers mean. FICO or the Fair Isaac Corporation is the company that for the past 53 years has offered a measurable number by which creditors can determine your credit worthiness. Credit scores range between 200 and 800. Scores above 720 are considered desirable for obtaining a mortgage. They have determined five main factors will affect your score…things you ultimately have control over.
1. Your payment history. Whether you paid credit card obligations on time.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.
There are some variations on the theme but the basics itemize your scores and more importantly indicate how you can improve your scores, which in turn, improves your life.
I spoke with Linda Ferrari who has a FREE ebooklet called: “Save Your Credit, Save Your Life” which is a 10 step action plan to help clean up your credit. She offers great advise starting out with only ordering your credit report when you visit the various agency websites. Apparently even the credit agencies are trying to sell additional services that you may not need. Another point she makes is that everyone is entitled to one FREE credit report each year and to be sure you order only from www.annualcreditreport.com …all other sites offer paid services so don’t be fooled.
Another option is to pay a credit repair company to “scrub” your credit. Typically this is done once you have a complete copy of your credit report from the three main agencies: Experian, TransUnion and Equifax. Thoroughly examine your report, line by line, and be ready to prove any incorrect information. Once you challenge any information they are required by law to look into and correct anything false. If you find you are having trouble this is where a credit repair service can come in handy.
First time buyers need to understand that they didn’t get into their situation overnight and it might take just as long to correct the situation so don’t despair. There is gold in those hills and it’s in the form of tax credits BUT they are due to expire Nov 30th 2009 so NOW is crunch time. Making the effort to improve your credit will pay big dividends and could ultimately result in home ownership…don’t let this market pass you by.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Another client called to ask about buying a home and when I asked about their credit history they said they were trying to pay down some credit cards only to find that once the amount due was paid the bank reduced their limit.
The first basic in credit scoring is to understand what the numbers mean. FICO or the Fair Isaac Corporation is the company that for the past 53 years has offered a measurable number by which creditors can determine your credit worthiness. Credit scores range between 200 and 800. Scores above 720 are considered desirable for obtaining a mortgage. They have determined five main factors will affect your score…things you ultimately have control over.
1. Your payment history. Whether you paid credit card obligations on time.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.
There are some variations on the theme but the basics itemize your scores and more importantly indicate how you can improve your scores, which in turn, improves your life.
I spoke with Linda Ferrari who has a FREE ebooklet called: “Save Your Credit, Save Your Life” which is a 10 step action plan to help clean up your credit. She offers great advise starting out with only ordering your credit report when you visit the various agency websites. Apparently even the credit agencies are trying to sell additional services that you may not need. Another point she makes is that everyone is entitled to one FREE credit report each year and to be sure you order only from www.annualcreditreport.com …all other sites offer paid services so don’t be fooled.
Another option is to pay a credit repair company to “scrub” your credit. Typically this is done once you have a complete copy of your credit report from the three main agencies: Experian, TransUnion and Equifax. Thoroughly examine your report, line by line, and be ready to prove any incorrect information. Once you challenge any information they are required by law to look into and correct anything false. If you find you are having trouble this is where a credit repair service can come in handy.
First time buyers need to understand that they didn’t get into their situation overnight and it might take just as long to correct the situation so don’t despair. There is gold in those hills and it’s in the form of tax credits BUT they are due to expire Nov 30th 2009 so NOW is crunch time. Making the effort to improve your credit will pay big dividends and could ultimately result in home ownership…don’t let this market pass you by.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Tuesday, July 28, 2009
Legitimately improving your credit score solo
flIn this economy more businesses are offering ways to improve your credit score, but are they just a waste of your money?
Payment history, and how much you owe creditors represents 65% of how your credit score is determined. And while paying a local agency to fix your problem may seem like a quick solution, one local couple is out hundreds of dollars and still in the credit hole.
Since 2002, the Moore’s of Kinston have faced credit problem after credit problem—chapter 13 bankruptcy—unpaid medical bills—-and past due loan payments.
So they gave a local credit correction agency $1200 to pull their credit score up—it didn’t work.
Rich Hutson, vice president of State Employees’ Credit Union in Greenville says the Moore’s should have kept their $1200 and invested time getting their hands on their credit report.
The Moore’s credit report is long. Hutson says they should go through it, page after page, find the items they believe are inaccurate and dispute it in writing, “You have to provide the proof that the bill is unjust and that they’re reporting it incorrectly.“
The consumer reporting agencies Equifax, Experian and Trans Union must investigate each item in question within 30 days. But Hutson warns, things like bankruptcies will stay on that report for a decade no matter what, so don’t be fooled by companies that advertise they can remove it.
Hutson adds, “They can’t erase any of that information…It’s going to save you a lot of money in the long run by making sure you’re paying everything on time and you credit score will reflect that.“
Hutson says if your credit score is below 620 you’re in trouble. Even if you have an average score of around 640—you should still review your credit report regularly. Identity thieves could be charging items on your credit without your knowledge. A 90-day late fee could stay on your credit report for 7-years.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Payment history, and how much you owe creditors represents 65% of how your credit score is determined. And while paying a local agency to fix your problem may seem like a quick solution, one local couple is out hundreds of dollars and still in the credit hole.
Since 2002, the Moore’s of Kinston have faced credit problem after credit problem—chapter 13 bankruptcy—unpaid medical bills—-and past due loan payments.
So they gave a local credit correction agency $1200 to pull their credit score up—it didn’t work.
Rich Hutson, vice president of State Employees’ Credit Union in Greenville says the Moore’s should have kept their $1200 and invested time getting their hands on their credit report.
The Moore’s credit report is long. Hutson says they should go through it, page after page, find the items they believe are inaccurate and dispute it in writing, “You have to provide the proof that the bill is unjust and that they’re reporting it incorrectly.“
The consumer reporting agencies Equifax, Experian and Trans Union must investigate each item in question within 30 days. But Hutson warns, things like bankruptcies will stay on that report for a decade no matter what, so don’t be fooled by companies that advertise they can remove it.
Hutson adds, “They can’t erase any of that information…It’s going to save you a lot of money in the long run by making sure you’re paying everything on time and you credit score will reflect that.“
Hutson says if your credit score is below 620 you’re in trouble. Even if you have an average score of around 640—you should still review your credit report regularly. Identity thieves could be charging items on your credit without your knowledge. A 90-day late fee could stay on your credit report for 7-years.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Monday, July 27, 2009
Answering Reader Questions on Credit Reports
Wallet readers recently wrote in wanting to know more about all things credit-related. They asked savvy questions about what information is put on a credit report–and for how long–and what factors can hurt or help your credit score. We did a little digging on your behalf. Here is what we learned:
One reader wanted to know how long one’s employment history stays on a credit report. The short answer: Don’t worry about it. Employment history, which is sometimes included in the identification section of a credit report, “doesn’t count in your credit score and doesn’t have a negative effect on your credit at all,” says John Ulzheimer, president of consumer education at Credit.com.
In fact, most consumers have outdated employment information on their credit reports, says Norm Magnuson of the Consumer Data Industry Association, a trade group for the credit-reporting industry. If having the information on there is bugging you, you should contact each of the three national credit reporting agencies (TransUnion, Equifax and Experian) to have employment information removed, says Ulzheimer.
Readers also wanted to know how long it takes for your credit report to reflect recently paid-off credit-card balances. Any payments made to your credit card should show up on your credit report within 30 days. Credit-card issuers send updates to the credit bureaus once a month, so depending on when you made the payment, it could take a few days or a full month before the lower balance shows up on your credit report.
Another reader asked how going over your credit-card limit affects your credit score. Credit bureaus look at how much of your available credit is being used up when they calculate your credit score–and going over the limit on a credit card will give you a high debt-to-credit ratio, which can ding your score. “And that can lead your other lenders to take actions like lowering limits, increasing your interest rate, increasing your minimum payment requirement or closing the account down completely,” says Ulzheimer.
The experts advise avoiding this situation by being conservative with credit-card use and making timely payments. If you happen to go over the limit accidentally, you might be able to minimize the damage if you immediately pay down the balance before the credit-card issuer sends an update to the credit reporting agency. But this is a risky gambit that you’re likely to lose.
Remember, you’re entitled to see your credit report–the blueprint for your credit score–once a year at no cost from each of the credit-reporting agencies. You can order a free credit report at AnnualCreditReport.com.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
One reader wanted to know how long one’s employment history stays on a credit report. The short answer: Don’t worry about it. Employment history, which is sometimes included in the identification section of a credit report, “doesn’t count in your credit score and doesn’t have a negative effect on your credit at all,” says John Ulzheimer, president of consumer education at Credit.com.
In fact, most consumers have outdated employment information on their credit reports, says Norm Magnuson of the Consumer Data Industry Association, a trade group for the credit-reporting industry. If having the information on there is bugging you, you should contact each of the three national credit reporting agencies (TransUnion, Equifax and Experian) to have employment information removed, says Ulzheimer.
Readers also wanted to know how long it takes for your credit report to reflect recently paid-off credit-card balances. Any payments made to your credit card should show up on your credit report within 30 days. Credit-card issuers send updates to the credit bureaus once a month, so depending on when you made the payment, it could take a few days or a full month before the lower balance shows up on your credit report.
Another reader asked how going over your credit-card limit affects your credit score. Credit bureaus look at how much of your available credit is being used up when they calculate your credit score–and going over the limit on a credit card will give you a high debt-to-credit ratio, which can ding your score. “And that can lead your other lenders to take actions like lowering limits, increasing your interest rate, increasing your minimum payment requirement or closing the account down completely,” says Ulzheimer.
The experts advise avoiding this situation by being conservative with credit-card use and making timely payments. If you happen to go over the limit accidentally, you might be able to minimize the damage if you immediately pay down the balance before the credit-card issuer sends an update to the credit reporting agency. But this is a risky gambit that you’re likely to lose.
Remember, you’re entitled to see your credit report–the blueprint for your credit score–once a year at no cost from each of the credit-reporting agencies. You can order a free credit report at AnnualCreditReport.com.
source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Sunday, July 26, 2009
Consumers Find Not All Credit Scores Created Equal
Not all credit scores are created equal. That's what a consumer found out when she started asking questions about why her credit card interest was more than doubled.
Maria Polk carries debt on her credit card but makes regular payments. So she was surprised to find her Bank of America credit card jumped from 12% to 30% in one billing cycle.
"I had no idea what happened. I was never late on any payments. I thought I had excellent credit," Polk said.
She pulled up her VantageScore credit score from Experian to see what was wrong.
"My credit score was 853 and I thought, 'Wow, that's pretty good,'" Polk said. "So why am I getting 30% interest rate on my credit card?"
It didn't make sense, so she applied for another credit card at a different bank – Wachovia – hoping she'd get a better deal so she could transfer her balance.
"So I got my credit card from the bank and it was a credit limit of $3,500 and I thought, 'Well, there's not much I can do with that,'" Polk said.
Wachovia told her they based that low limit on a different credit score; a much lower 664, which was her FICO score.
"Why can't they get the score together? Why can't we really understand the score? Why isn't there a formula that the average person can understand?" Polk said.
Rick Harper with the Consumer Credit Counseling Service of San Francisco explained there are different credit scoring models.
"For instance, different creditors, automobile dealers, dealerships, might have their own credit score. The bureaus themselves, the three, have proprietary scores, and there may be more," Harper said.
He says different services also have their own scoring scales and criteria.
-FICO scores range between 300 and 850 points; Experian's VantageScore goes from 501 to 990.
-The length of your credit history makes up 15% of your FICO score and 23% of your VantageScore.
-And your amount of debt makes up 30% of your FICO score and 15% of your VantageScore.
Harper said what is dragging down scores during the recession is consumers carrying higher card balances, opening more lines of credit and transferring balances. He also explained credit scores are only a snapshot in time and they can change in a matter of hours as accounts get updated.
Harper's advice as the best way to monitor credit is to pull up a free annual credit report and make sure everything on it is correct.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Maria Polk carries debt on her credit card but makes regular payments. So she was surprised to find her Bank of America credit card jumped from 12% to 30% in one billing cycle.
"I had no idea what happened. I was never late on any payments. I thought I had excellent credit," Polk said.
She pulled up her VantageScore credit score from Experian to see what was wrong.
"My credit score was 853 and I thought, 'Wow, that's pretty good,'" Polk said. "So why am I getting 30% interest rate on my credit card?"
It didn't make sense, so she applied for another credit card at a different bank – Wachovia – hoping she'd get a better deal so she could transfer her balance.
"So I got my credit card from the bank and it was a credit limit of $3,500 and I thought, 'Well, there's not much I can do with that,'" Polk said.
Wachovia told her they based that low limit on a different credit score; a much lower 664, which was her FICO score.
"Why can't they get the score together? Why can't we really understand the score? Why isn't there a formula that the average person can understand?" Polk said.
Rick Harper with the Consumer Credit Counseling Service of San Francisco explained there are different credit scoring models.
"For instance, different creditors, automobile dealers, dealerships, might have their own credit score. The bureaus themselves, the three, have proprietary scores, and there may be more," Harper said.
He says different services also have their own scoring scales and criteria.
-FICO scores range between 300 and 850 points; Experian's VantageScore goes from 501 to 990.
-The length of your credit history makes up 15% of your FICO score and 23% of your VantageScore.
-And your amount of debt makes up 30% of your FICO score and 15% of your VantageScore.
Harper said what is dragging down scores during the recession is consumers carrying higher card balances, opening more lines of credit and transferring balances. He also explained credit scores are only a snapshot in time and they can change in a matter of hours as accounts get updated.
Harper's advice as the best way to monitor credit is to pull up a free annual credit report and make sure everything on it is correct.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
Saturday, July 25, 2009
Consumer shopping bag: Credit scores
Q: Does stuff fall off credit reports with time? How long for a score to become good? What hints do you have to move forward and what should I avoid?— Kim W. and Paul P., Denver
A: Credit scores — and by that I mean the FICO score we're all familiar with, though there are many others — are an interesting animal in that they don't actually exist.
They are not sitting in a file somewhere, ebbing and flowing daily with each financial transaction you make. A FICO score only exists when there's a request for it. At that moment, a score is generated and is a snapshot of your credit history.
Though the snapshot is of the moment, the history goes back much farther — sometimes for 20 years.
The basic timeline for most all adverse credit issues is seven years. Chapter 13 bankruptcies, where you pay back some of your debts in time, are there that long, and pretty much all other debts.
Other than a Chapter 7 bankruptcy that lasts 10 years on your credit report, the longest is a tax debt from the Internal Revenue Service. Those are timeless.
Collection accounts last seven years and six months from the date you first fell behind on the original indebtedness — not when the collection agency took charge of your account.
But as debts get older, they fall away in importance to your credit score. So while a 30-days-late issue can be reported for seven years, in time it is less and less critical to your score.
Here's a tip: You can challenge anything on your report for accuracy or completeness. Challenge long-standing issues long resolved — such as a collected account from four years ago — and often times the collector won't bother responding to the bureau's inquiry. In such case the bureau must remove it from your report.
Paying on time is critical and today 750 is the new 720 for excellent credit. Build a good payment history and the old stuff won't matter so much.
Too, experts say outstanding balances shouldn't be any more than 10 percent of your available credit.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
A: Credit scores — and by that I mean the FICO score we're all familiar with, though there are many others — are an interesting animal in that they don't actually exist.
They are not sitting in a file somewhere, ebbing and flowing daily with each financial transaction you make. A FICO score only exists when there's a request for it. At that moment, a score is generated and is a snapshot of your credit history.
Though the snapshot is of the moment, the history goes back much farther — sometimes for 20 years.
The basic timeline for most all adverse credit issues is seven years. Chapter 13 bankruptcies, where you pay back some of your debts in time, are there that long, and pretty much all other debts.
Other than a Chapter 7 bankruptcy that lasts 10 years on your credit report, the longest is a tax debt from the Internal Revenue Service. Those are timeless.
Collection accounts last seven years and six months from the date you first fell behind on the original indebtedness — not when the collection agency took charge of your account.
But as debts get older, they fall away in importance to your credit score. So while a 30-days-late issue can be reported for seven years, in time it is less and less critical to your score.
Here's a tip: You can challenge anything on your report for accuracy or completeness. Challenge long-standing issues long resolved — such as a collected account from four years ago — and often times the collector won't bother responding to the bureau's inquiry. In such case the bureau must remove it from your report.
Paying on time is critical and today 750 is the new 720 for excellent credit. Build a good payment history and the old stuff won't matter so much.
Too, experts say outstanding balances shouldn't be any more than 10 percent of your available credit.
Source
A great article about Free Credit Report and Score. Subscribe to the Free Credit Report and Score blog now to get more updates on free credit report services, check credit online score, and business credit report.
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