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What should I know about my credit report?

Your credit report contains information about your credit history.  Developed by Fair Isaac & Co. credit scoring is a method of determining the likelihood that credit users will pay their bills.  Fair, Isaac began its pioneering work with credit scoring in the late 1950's and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation.  A credit score attempts to condense a borrowers credit history into a single number.  Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed.  The Federal Trade Commission has ruled this has acceptable. 

Credit scores analyze your credit history considering numerous factors such as:

• Late payments

• The amount of time credit has been established

• The amount of credit used versus the amount of credit available

• Length of time at present residence

• Employment history

• Negative credit information such as bankruptcies, charge-offs, collections etc.

There are really three FICO scores computed by data provided by each of the three bureaus - Experian, Trans Union, and Equifax.  Some lenders use one of these three scores, while others may use the middle score to qualify you for a loan.

How can you increase your score?  While it is difficult to increase your score over the short run, here are some tips to increase your score over a period of time.

• Pay your bills on time.  Late payments and collections can have a serious impact on your score.

• Do not apply for credit frequently.  Having a large number of inquiries on your credit report can worsen your score.

• Reduce your credit card balances.  If you have "maxed" out on your credit cards, this will affect your credit score negatively.

• If you have limited credit obtain additional credit.  Not having sufficient credit can negatively impact your score.  A general rule of thumb is to have two to three credit cards.

What if there is an error on my credit report?  If you see an error on your report, contact the credit bureau - the three major bureaus in the U.S., Equifax 1-800-685-1111, Trans Union 1-800-916-8800, and Experian 1-888-397-3742 all have procedures for correcting information promptly.  Our loan officers may help you correct any problem as well.  This is usually the quickest way to solve any problems as our loan officers know exactly what to do to assist your particular situation and still provide you with a loan program right away.

We offer a variety of loan programs which will allow

you to choose the financing options that suit your needs.

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