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A Credit Card Glossary of Terms
The Credit card industry comes with a lot of jargon. You can't
be expected to recognise all the technical phrases employed and
some of them could be very important. Listed below you will find
a quick description of the most common credit card...
Bad Credit Doesn't Rule Out Unsecured Credit Cards
Many people believe that because of their bad credit, unsecured credit cards are not available to them. While it may be more difficult, there are options for people with bad credit who want an unsecured credit card to build their credit or have...
Credit Counseling Or Bankruptcy: Which Is Best For You?
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including...
Increase Your Sales - Accept Credit Cards
Many people today simply prefer the convenience of paying by credit card. If you want their business, you must be able to accept their credit-card payments. In part one of this series we will discuss why you should accept credit cards, and the...
What is Credit?
Ever wondered what is credit? Credit is more than just a plastic card you use to buy things - it is your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and...
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Credit Scoring: What it is, and How It Affects You
If you have applied for a mortgage in the past five years, you’ve probably heard of credit scoring by now. Perhaps you were told that your credit scoring was wonderful, or needed work. Or maybe your mortgage would have been lowered by several points, if you had better credit scoring.
Credit scoring models, as the industry calls them, started to become widely used around 1994. Two secondary market players, Fannie Mae and Freebie Mac, started creating automated underwriting programs around this time, and this is how credit scoring came to be the way it is today. Both auto lenders and credit card issuers have used these types of systems for years – well before the mortgage brokers did.
The aforementioned companies that started to use these processes about 10 years ago now thought it was strange that someone could walk into an auto dealership, and two hours later drive away with a $100,000 car – but a potential homeowner couldn’t do the same thing. Which made no sense, because cars depreciate over time, and can get lost or stolen – but houses usually appreciate, and are fixed in location. So, using this logic, the industry movers and shakers decided that if the car buying process was this easy, then home buying should be as well.
Although in theory this sounds quite amazing, it’s only been recently that this has actually been the reality of the process. This is partially because the credit scoring models have become more refined over the years. And now, almost all mortgages
are determined using some sort of credit scoring process.
These mortgage brokers usually use some sort of credit reporting agency to get information about someone who has applied for financing, or credit scoring, with them. But what most people don’t know is that there are two different kinds of credit reporting agencies whose information determines your credit scoring. The first is the four big credit agencies: Innovax, Equifax, TransUnion and Experian. When a person gets credit, or even applies for credit, this is reported back to these credit agencies, and kept on file indefinitely. Files are updated, usually, on a monthly basis. However, these credit scoring agencies only accept the information as it is given to them; there is no fact checking process to ensure that your credit scoring is accurate.
Credit scoring agencies will also get information on a consumer applying for a mortgage using other sources, such as the Department of Motor Vehicles, the Medical Information Board, the FBI, local law enforcement agencies, county records, government records, and the like. The mortgage industry has a repository of their own for information about people they give credit to, which can be accessed in a pinch if required, so that those who are bad credit risks don’t get a good credit scoring.
About the Author
For more more information about credit scoring please visit http://www.moneytipsdaily.com/Money-Tips/Credit-Abuse-You-May-Be-an-Innocent-Victim-and-Not-Know-It.html
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| Credit Reports - Credit Cards - Car Loans - Home Loans - Credit.com |
| Credit.com offers a variety of credit related products and services including credit reports and credit scores, credit cards, car loans, home loan and ... |
| www.credit.com |
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| Equifax Personal Solutions: Credit Reports, Credit Scores ... |
| National consumer credit reporting company that offers credit reports, FICO(R) credit scores and identity theft protection products to consumers and small ... |
| www.equifax.com |
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| The FTC's web site on Credit |
| Credit is much more than a piece of plastic, and the resources on this site can help you become a more savvy consumer. You’ll also find compliance ... |
| www.ftc.gov |
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| Federal Trade Commission - Consumer Credit Center |
| Features an assortment of helpful articles related to credit issues. |
| www.ftc.gov |
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| AnnualCreditReport |
| Site set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law. |
| www.annualcreditreport.com |
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| Springboard - Non-Profit Consumer Credit Management |
| Our mission is simple: To offer education on the wise use of credit. ... SPRINGBOARD has been approved to provide credit counseling services and issue ... |
| www.credit.org |
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| myFICO - FICO Credit Scores, Online Credit Reports and Identity ... |
| myFICO.com: Get your Free credit report and Free credit score with a 30-day trial of Score Watch. All three FICO Scores and Credit Reports Available now ... |
| www.myfico.com |
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| Credit Suisse Global |
| Credit Suisse Group is an international financial services group. - Shares part of SMI. |
| www.credit-suisse.com |
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| Experian: Free Credit Report and Credit Score, Credit Check ... |
| Credit referencing and consumer targeting for the USA and other countries. |
| www.experian.com |
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| National Credit Union Administration - Home Page |
| An independent federal agency that supervises and insures 7152 federal credit unions and insures 4240 state-chartered credit unions. |
| www.ncua.gov |
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| Credit - Wikipedia, the free encyclopedia |
| Debits and Credits, a type of bookkeeping entry; Credit (creative arts), acknowledging the ideas or ... Retrieved from "http://en.wikipedia.org/wiki/Credit" ... |
| en.wikipedia.org |
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| Credit (finance) - Wikipedia, the free encyclopedia |
| Any movement of financial capital is normally quite dependent on credit, ... Sometimes if a person has financial instability or difficulty, credit is not ... |
| en.wikipedia.org |
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| The National Foundation for Credit Counseling |
| DebtAdvice.org is a service provided by the Members of the National Foundation for Credit Counseling (NFCC), most of them known as Consumer Credit ... |
| www.nfcc.org |
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| FreeCreditReport.com | Free Credit Report and Credit Score Online ... |
| FreeCreditReport.com: Free credit reports and credit scores from Experian. Get your free credit report and credit score now. It's free, fast, and easy! |
| www.freecreditreport.com |
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| Compare credit cards | apply for a credit card | 0% balance ... |
| Compare over 300 credit cards, including 0% offers and balance transfers, and make a credit card application online... |
| www.moneysupermarket.com |
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| Ford Credit - Auto financing for Ford, Lincoln and Mercury cars ... |
| Ford Credit provides auto financing to finance a lease or purchase a car or truck through Ford, Lincoln or Mercury dealerships. |
| www.fordcredit.com |
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| The Credit Card Prank |
| In my lifetime, I have made nearly 15000 credit card transactions. ... Credit card signatures are a useless mechanism designed to make you feel safe, ... |
| www.zug.com |
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| Credit magazine, corporate bonds, derivatives, structured credit ... |
| Credit magazine provides information on the international credit markets for credit investors, issuers and market professionals. |
| www.creditmag.com |
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| CUNA: The Credit Union National Association |
| News and resource directory about credit unions. |
| www.cuna.org |
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| Credit/Debt Management - Tools and Advice for Managing Credit and Debt |
| Drowning in debt? Trying to improve your credit score? This is the place for you. Get real world information and tips, as well as the legal low down, ... |
| credit.about.com |
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