Managing Credit
Impact of the new Credit Card Act of 2009 is visible in the statements we get in the mail...learn more.
Many people have little knowledge about the information in their credit file or even where the information is located. Your credit record ...more
- What is a credit rating and what difference does one make to me?
- How do I get my credit report?
- How do I fix my credit rating?
- How can I learn more about managing credit?
Frequently Asked Questions:
1. What is a credit rating and what difference does one make to me?
ANS: A credit rating is a measure of your credit worthiness. It is based on your credit file which is a record of your bill-paying habits and information from courthouse files such as filings for divorce, declaring bankruptcy, and any judgments against you for not paying debt. This data is maintained by credit bureaus. Credit bureaus sell this information to creditors, insurance companies, prospective lenders and employers. A summary of your credit history and credit worthiness, called a credit report, is prepared and sent to legitimate inquirers. You can request a copy of your credit report any time for a fee. Such fees are waived if you've been denied credit based on information contained in your credit report. You have at least 30 days from date of denial to request a free copy of the report. You can also request a free copy of your report once every 12 months from each of the three major credit bureaus through www.annualcreditreport.com.
Because your credit rating can positively or negatively impact your application
for a loan, credit, insurance, housing or employment, you want the information
in your credit file to be accurate and up to date. For more information
about credit files, obtain a copy of Your
Credit File. Another source is
the National Foundation for Credit Counseling.
2. How do I get my credit report?
ANS: Your credit report is a document listing the data about you that is kept in a file by a credit bureau. There are three national credit bureaus - Equifax, Experian, and TransUnion. You can order a free copy from each of the three credit bureaus once in a 12-month period by contacting AnnualCreditReport.com by telephone, mail or by using this web site. Be wary of imposter sites that charge you for unwanted services. Only the site listed above is authorized to fill orders for free annual reports under the new law.In addition to your credit report, you can also request your credit
score. There is currently a cost to receive your credit score. Unless
you have been denied credit, employment, insurance, are unemployed or are
receiving public benefits, there is also a cost associated with receiving more
than one copy of your credit report within a twelve-month period.
Click here for your free copy.
For additional reports or to contact a bureau directly, go to:
Equifax 1-800-685-1111
Experian 1-888-397-3742
Trans Union 1-800-888-4213
For more information, order Your
Credit File from UNH Cooperative Extension.
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3. How do I fix my credit rating?
ANS: The use of credit is part of everyday life for the majority of Americans. Retailers and lending institutions extend credit to consumers to purchase goods, services, appliances, automobiles, and residential real property through credit cards, installment loans, home mortgages, and home equity lines of credit. Both federal and New Hampshire laws provide important safeguards and remedies for consumers in their credit transactions and consumer leases.Consumers with less-than-perfect credit ratings may be tempted to enlist the assistance of a company promising to "clean up" or "erase" bad credit. It's important to remember that credit repair companies can do nothing for you that you cannot do for yourself, for free! Under the Fair Credit Reporting Act, you have the right to review any file, and to dispute inaccuracies in any file, maintained by any credit-reporting agency. Accurate negative credit information can be reported for seven years (most bankruptcies for 10 years). The only way to "repair" bad credit is to engage in good credit practices from now on.
In response to abuses in the industry, credit service organizations are defined and regulated in New Hampshire by the Credit Service Organizations Act. This Act requires disclosure of the nature and costs of their services to customers. For more information about the laws affecting credit, obtain a copy of the New Hampshire Consumer's Sourcebook.
If you have credit problems and want to work them out, a legitimate, nonprofit credit counseling service is available to consumers throughout the state. The Consumer Credit Counseling Service has offices in a number of New Hampshire towns and cities. Look in your local telephone book for the office nearest you or call (800) 327-6778.
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4. How can I learn more about managing credit?
To learn more about managing credit, consider registering for UNH Cooperative
Extension's Credit Check Up or Making Money Work For You, money management courses offered in your County that
includes free access to the Power Pay Debt Reduction Calendar. Consider
requesting the learn-at-home series, Getting a Grip on Your Money or obtain
a copy of Your
Credit File and When Your Bills Pile Up.
Publications:
- Developing A Spending/Savings Plan
- Getting In Touch With Your Creditors
- NH Saves – Build Wealth Not Debt
- What To Do When You Can't Pay Your Bills
- When Your Bills Pile Up
- When Your Income Drops
- Your Credit File
Other Resources:
- National Foundation for Credit Counseling
- Federal Reserve Board: New Credit Card Rules
- AFI: Understanding the Credit Card Act of 2009
- NH Legal Advice and Referral Center
- Financial Security In Later Life [eXtension-Consumer Credit]
- CardWeb.com, Inc
- CFA's Your Credit Score
