A Guide To Understanding Equifax
By Mike Wayman
Equifax is a credit reference agency which keeps records of all of your credit information. They keep information on credits you have, credit your have applied for, your address, previous addresses, and your status on the electoral registry. When applying for credit or updating your credit report, Equifax is one of the three major credit bureaus that keep information. They have been around since the mid 1970’s and are based in Glasgow, Scotland.
When applying for a copy of your credit file from Equifax you pay about $15.oo. It will arrive within 7 working days. This report shows any late payments, CCJ’s, and what companies have looked at your file. Look through the file for any errors. You may find some things that are outdated or incorrect. After you determine what is out of date you can contact Equifax and they will update your information.
How recently your file has been updated can change your credit approval rating when applying for credit, so it is a good idea to update your file at least once a year. Most companies today use credit scoring when applying for credit with them, so doing a yearly check will help you to avoid mistakes and keep the credit application process smooth and easy.
Yes! Bad Credit Can Affect Your Car Insurance Rates
By Mike Wayman
Not only your ability to obtain a home mortgage or credit card depends on your credit rating, but now your auto insurance rates also can be affected either positively or negatively by your credit score. For about the last ten years, insurance companies have used applicant’s credit reports to help determine the potential risk of providing auto insurance. A negative credit rating is perceived as a higher insurance risk, while a higher credit score is perceived as a lower risk applicant and therefore could very well result in lower insurance rates.
The problem is that there are inconsistencies with this whole idea. It seems erroneous to assume that if a person has a high credit rating, hence it is assumed they either earn a high wage and/or have few expenses, that they are necessarily a more responsible or capable driver. Conversely, it seems ridiculous to think that those who earn lower wages or who have encountered financial difficulties resulting in a lower credit score will automatically be poor drivers and thus a higher insurance risk. But this is the way insurance companies are viewing credit histories with regards to prospective clients.
Of course, driving history is indeed considered as well, so maintaining a clean driving record will help even if your credit rating is low. Avoid accidents, pay any citations in a timely manner, and hope that your insurance agency will weigh more heavily on the side of your ability to drive than on the money in your pocket.
Who Should You Order Your Credit Report From?
June 15, 2009
By Mike Wayman
With so many credit report companies offering credit report services these days it can be difficult to tell who to get your credit reports from. National television commercials offer free credit reports to consumers but there has to be a catch, right?
The catch is quite simple. Many of these “free” credit report providers aren’t the well intentioned do-gooders they say they are. In fact, what they’re really after is what’s known as an “up-sell” in the sales industry. Sure, they might give you something that looks like a full fledged credit report, but what they’re really after is the ability to sell you their products and services.
The most annoying aspect of these free credit report websites is that they will continue to email you for years if you let them in their efforts to sell you their credit repair services. I like to think of these free credit report sites as gigantic bait and switch schemes. They reel you in with the bait (a free credit report) but they immediately switch to sales as soon as they give you the report.
You also need to be careful about who you give your social security number to these days. As a former police officer I’m highly suspicious of anyone that asks me to give out my social security number, especially when the product they provide is completely free of charge. Isn’t your social security number more valuable than a free credit report?
My advice is to get your credit reports directly from the credit bureau’s themselves. Just Google Experian, Transunion, and Equifax. You’ll be able to get a valid copy of your credit report directly from the source.
If you are looking for a free credit report to begin the credit repair process, I would first seek out a trustworthy credit repair company and ask what the credit repair representative advises. Some companies will want you to order your reports directly from the bureaus while other credit repair firms will want to pull credit on your behalf. If you are seeking a credit report for your own use, the bureaus will give you a free copy every year if you ask for it.
