TransUnion got its start in 1968 when the Union Tank Car Company -a railcar leasing operation- created it as its parent holding company. Years later, TransUnion grew quickly after acquiring companies like Credit Bureau of Cook County and TrueCredit.com. The company tends to be a leader in innovation. After the acquisition of the Credit Bureau of Cook County, it became the first credit reporting company to replace accounts payable invoice data with tape-to-disc transfer. The company was also the first bureau to have an online information retrieval and storage data processing system. TransUnion has grown to operate in 25 countries.

Like Experian and Equifax, TransUnion has run into problems with the law. According to a study conducted by the U.S. Public Interest Research Group, 79% of credit reports have errors and 25% of those errors are serious enough to prevent you from acquiring credit. A PIRG survey suggests that the sheer capacity of the data collected makes the mistakes unavoidable. The company was sued for $5.3 million by Judy Thomas because she spent six years trying to remove another woman’s credit information off of her report. Later, the judged reduced the award to $1 million. The company was also sued for selling lists containing personal and financial consumer information to third parties for marketing purposes, violating the Fair Credit Reporting Act.

TransUnion offers various services. The bureau not only offers monitoring for its own brand of credit report but for all three credit reports. Another unique service the company provides is Authorized User Alerts. Authorized User Alerts reduces the negative effects of authorized user abuse by alerting you of possible artificial inflation in accordance with your risk threshold guidelines. Each credit bureau has its own services and products. Check out the TransUnion website for more information.

Visit http://www.icreditinc.com for more information on credit.

Previously known as CCN Systems, Experian is a large credit bureau with offices in approximately 36 countries. Experian was established in 1980 in Nottingham and grew drastically after acquiring several other bureaus. The company not only handles credit services but decision analytics, interactive services and marketing services. Experian collects data on: businesses, motor vehicles, insurance and lifestyle data.

Unfortunately, almost all of the bureaus have faced some trouble with the government. In August of 2005, Experian admitted that they violated the rules of Federal Trade Commission by not sufficiently explaining that by signing up for a free report with the company, consumers would be automatically signed up for a credit report monitoring service and that the consumer would also be charged $79.95 if they didn’t cancel within 30 days.

Each bureau offers its own way of handling credit information. Experian uses the PLUS Score method to determine credit ratings. The PLUS Score includes: the number of application inquiries, the combined balance, number of accounts with late payments and credit limit on open, revolving accounts. The PLUS Score model was designed to create a better understanding of these factors so that consumers can take immediate action to improve their credit ratings.

Experian offers various services but the company is best known for its Triple Advantage deal. Triple Advantage checks your report for signs of identity theft. The service also monitors all three national credit files and will alert you of key changes. Though, all three of the bureaus offer these services, most people find the deal in Experian’s price. While some credit bureaus offer separate prices for each service, Triple Advantage, offers one price for all three. Protect your credit. Check out all of your credit service options.

Visit http://www.icreditinc.com for more information on credit.

vantageScore

VantageScore is an innovative generic credit score model that simplifies and enhances the credit process for both consumers and credit grantors. It offers a highly predictive score with a consistent interpretation of consumer credit files across all three major credit reporting companies (CRCs) – Equifax, Experian and TransUnion.

VantageScore Features

* Predicts the likelihood of future serious delinquencies (90 days late or greater) on any type of account
* Returns a score range of 501-990 (higher scores represent a lower likelihood of risk)
* Consumer score is based primarily on a 24-month review of a consumer’s credit file
* Includes up to four score factor codes and a fifth FACTA reason code (Spanish version available)
* Can be accessed from all three CRCs
* Does not consider “authorized-user” tradelines to assess credit risk

Overview of VantageScore Benefits

Limits score variability across credit reporting companies: Leveled characteristics across Equifax, Experian and TransUnion ensure that any score differences for the same consumer are attributable to content differences in the consumer file, not the scoring algorithm.

Powerful risk prediction: Advanced segmentation techniques were used to create a strong, robust model. This results in a strong separation of good and bad performing accounts and the ability to assign meaningful and effective cut-offs.

Effective risk management: Some risk models are unable to score a significant percentage of consumers due to insufficient credit information. VantageScore provides predictive scores on more consumers with limited credit histories, thereby reducing the need for manual underwriting.

Universe expansion: VantageScore was developed using a patent-pending analytical approach that provides lenders with access to a larger pool of scoreable consumers while maintaining accuracy in risk assessment. With this capability, VantageScore plays a vital role in making credit more accessible to creditworthy consumers while creating the corresponding opportunity for lenders.

Vantage_Score

The Vantage Score, technically spelled VantageScore, is a credit rating  system developed by the top three credit  agencies: Experian, Equifax, and TransUnion. It was created to directly compete with the Fair Isaac Corporation’s FICO Score, which is currently the most widely used credit scoring  system. Although the three agencies responsible for the new system tout is as superior to the existing FICO system, many analysts are skeptical that it offers anything new.

Fair Isaac has been operating various credit risk score systems since the 1950s, and it is both the oldest and most widely used credit analysis system. The credit report industry has exploded in the past decade, with individuals paying premium fees to have up-to-date access to their credit reports and scores. This is in part due to the much easier accessibility that now exists as a result of the Internet, and to a growing concern on the part of consumers to track their credit score. Through introducing the Vantage Score, the top three credit agencies are no doubt hoping to claim a portion of the profits from an industry for which they already provide the data.

The existing FICO score rates an individual’s credit reliability on a scale of 300 to 850, taking into account such factors as percentage of credit being used, number of credit lines open, delinquent payments, and the types of credit involved. Although the algorithm for calculating a FICO Score is not transparent, Fair Isaac offers general guidelines that let individuals get a feel for why their score is where it is and what they might do to raise their score in the future. The Vantage Score rates an individual’s credit from 501 to 990, and at the same time gives each individual a letter grade ranging from A to F. The system the Vantage Score uses to calculate this rating is currently not disclosed, leading to some critiques that improving one’s Vantage Score is more of a hit-and-miss affair than improving one’s FICO Score.

Consumers can purchase their Vantage Score through any of the three major companies, all of which use the same algorithm for determining the final Vantage Score. Because the data they use may have small discrepancies, however, it should be expected that one’s Vantage Score might differ slightly between the three agencies. Ultimately, the benefits the Vantage Score system offers over the FICO Score system seem to be largely illusory. Although the credit agencies tout their letter grade system as being easier to understand and present the uniformity of information as a major bonus, in reality, the letter grade is a simple conversion from the numeric score, and the FICO Score has always offered the same uniformity. While the Vantage Score might see some success because of the heavyweights behind it, it will likely coexist alongside the FICO Score for many years to come.

Vantage Credit Score

The Vantage Credit Score Explained.

This is the first of five posts relating to credit scores and credit history. If you ordered a credit score along with your Experian credit report, you probably got a VantageScore and wondered “what the heck is this?” It’s a new credit score developed by the three credit bureaus (Experian, TransUnion, and Equifax) to compete with the FICO score.

How Does the VantageScore Work?
The VantageScore is derived similarly to the FICO score, but uses a few additional scoring metrics. The score range is wider and higher, and you receive a letter grade in addition to your number.

FICO scores range from 300 to 850, while VantageScores range from 510 to 990. Each 100-point range is also assigned a letter score from A to F. Scores of 900-990 are the equivalent of an “A.”

Although both formulas are proprietary, experts say the scores are based on several factors.

The FICO score is calculated with the following factors:

* 35% payment history
* 30% outstanding balances
* 10% types of credit you hold (loans, credit cards, etc.)
* 15% credit history length
* 10% recent history

The VantageScore adds a few factors and changes the scoring model slightly:

* 32% payment history
* 23% amount of credit you’re currently using
* 15% credit balances
* 13% length and depth of credit history (kinds of credit and age of accounts)
* 10% new credit accounts and inquiries
* 7% total available credit

Who Uses VantageScores?
I couldn’t find much evidence to date that lenders are using the new scores. The score was introduced in 2006, so most lenders are still testing its use versus the FICO score. If you’re planning to apply for a mortgage, take out a car loan, or just want to know what the lenders are seeing, buy your FICO scores. You could ask your potential lenders if they use VantageScores, but I wouldn’t buy them unless they say they do.

Are the Scores the Same for All Bureaus?
Each credit bureau computes an individual VantageScore using the information they have in their files. Some of your accounts may not be reported to all the bureaus, so there could be some variation.

How Does the Score Compare to the FICO?
We discovered the VantageScore when my husband checked his credit report and requested his credit score along with it. We were confused when we saw this strange number and letter grade, so we ordered his FICO score and Experian report from MyFico.com. The FICO score was 20% higher than the VantageScore, a significant difference that could impact his interest rate. If we were applying for a mortgage today, we’d want that top score used!

What Does It Mean for You?
Currently, the score means nothing for you. However, it’s possible that lenders will opt for these scores in the future. They’re cheaper than FICO scores, so smaller institutions might opt for them sooner. On the other hand, bankers don’t like change; they might opt to stick with the score they know for several more years.

It appears that you can no longer buy your FICO score from Experian. The other two bureaus still sell them rather than VantageScores. That does make me wonder how good the scores really are if the other two bureaus don’t sell them to consumers. I suggested that my husband call Experian to demand a refund, but he pointed out that they asked if he wanted to buy his “credit score,” not his “FICO score.” Technically, they didn’t lie, but I think it’s very deceptive marketing. Most people don’t know about VantageScores, and everyone knows about FICO scores. If you see the words “credit score,” you assume “FICO score.”

If you’re very curious, go buy your VantageScore from Experian, but I would wait until there’s some evidence that the score is in use. Unfortunately, that means you can only get two of your three FICO scores for the lower fees charged by the credit bureaus. FICO will only sell them bundled with a credit report for $15.95 each. Want to see your FICO score for free? Get a Washington Mutual credit card.

An Equifax credit report compiles a staggering amount of personal credit information from all credit users in the United States

An amazing amount of credit information about you is continually stored, updated into Equifax databases and converted into a FICO credit score which is what lenders ultimately base their lending decisions to you on.

One of the main purposes of Equifax is to track your re-payment history to creditors and assess your timeliness in repaying debts.

A simple example: if you miss a monthly payment on a Discover Visa, or Master card by 30 days it is immediately reported to Equifax and lowers your credit score 25-45 points!

Equifax is one of the big 3 credit bureaus so it’s not the ONLY credit score that matters.

Experian and Trans Union are the other two major credit bureaus, which compile and rate your credit history also.

What information is found on an Equifax Credit Report?

Most importantly is your Credit History.

The major portion of your Equifax credit report consists of every detail about credit accounts opened in your name. That means every account where you are an authorized user.

So remember, if you and your spouse open a joint credit card it payment history affects BOTH of your Equifax credit history records. This applies to parents too! So be careful handing out credit cards to the kids.

Account details will be provided to Equifax by your creditors (like Visa, Master card and Discover) regarding:

Date the credit line was open

Credit limit on the card

Balance to be paid

History of payment – did you pay ‘on time’ or 30-60-90-120 days late

Closed or inactive accounts

Keep in mind; Equifax has a very powerful influence on lenders.

If you are a getting a mortgage, car loan or even applying for a credit card, Equifax will play a critical role in what interest rate you will be awarded.

To learn more about other important information Equifax tracks (personal information, public records, and inquiries into your account) or how Equifax awards your exact credit score please visit the website below. Also, 30 or 60 days late? Find out how many points you’ll be losing…

Equifax is one of the three major credit reporting agencies, along with Experian and Tans Union. All three get information from creditors voluntarily. You may have heard of the agencies, and realize the important of your credit report. If you do, then you may be interested in retaining a copy of your own credit report from Equifax. Your Equifax credit report should be of great interest to you since the contents can have such a profound influence on your ability to make certain purchases. Therefore, it is important to understand what you are going to see on your report and what it means. The contents of your Equifax credit report can basically be broken down into five parts: your personal information, inquiries, your credit history, public record information, and your overall credit score.

The first part of your Equifax credit report is your personal profile. Your personal information is kept in this portion. You name, aliases, spouses name, current and former addresses, birth date, employment history, and Social Security number. When looking at your Equifax credit report, make sure the information is accurate. You can make corrections to the information by talking with Equifax.

Next, you will find the inquiries section. Here, you can see everyone over the last two years that has requested your credit report. You will find two types of inquiry on your Equifax credit report: hard and soft. A hard inquiry is one made by a company and initiated by you, like when you apply for a mortgage or credit card. A soft inquiry does not show to creditors unless you request it and is made by existing creditors who are monitoring your credit.

Third on your Equifax credit report is your credit history and public records. Your history will have a detailed list of your credit debts. It will include how you have done in terms of paying, all late payments, and information about how the account has been paid to date. You records will include bankruptcies, liens, and over due child support type information. Any public records are negative and will lower your overall score. They usually will stay on your Equifax credit report for six to ten years.

Last you will find your credit score. The credit score is a rating that shows how great of a credit risk you are and what the chances are that you may default on a loan. Most lenders will use the credit score as factor in y our loan application. The number of the score is between 300 and 850. The higher the score on your Equifax credit report, the less risky you will be considered by creditors. If the score is lower, you will be seen as a higher risk and while you still may get loans, you will likely be headed toward higher rates of interest.

Your Equifax credit report has a big influence on your ability to make purchases on credit. Many state and federal laws allow you to receive a copy of your Equifax credit report either for free or at a low cost. Take the time to get a copy of your Equifax credit report, as well as ones from the other companies. That way you can be sure that all of the information is correct and have an idea of how risky you are so that there are no surprises when you got apply for any loans.

There are 3 major credit bureaus that have information on your regarding your credit history. Anyone that has ever applied for a loan or credit of any kind has a file at one of the 3 major credit bureaus. Since merchants usually report to only one of the 3 major credit bureaus, you may have to request a free report from all three to get an overall look at your credit report.

To request a free credit report from either or all of the three major credit bureaus, all you have to do is to request a free report online. You can also send the request by mail and you have to provide all your personal information. There are sites that will charge you for a credit report from one of the 3 major credit bureaus, but it is necessary for you to know that by law you are entitled to one free credit report a year. You should contact the credit bureau directly to get your free report.

When you do receive your credit report from the 3 major credit bureaus there are certain sections of this report that you need to pay particular attention to. The first section details your name and address. You should check this to make sure that it is correct. If there are any inaccuracies in this section, you need to contact the credit bureau that sent the report with the correct information.

The next section will give details of your current bills. Each of the three major credit bureaus may contain the same information or one of the three may have different information regarding your credit history depending on which merchants report to that credit bureau. You should also note that you might have an excellent credit record with two of the 3 major credit bureaus and a poor rating with the other.

Check the listing of your bills, the amount of the payment and the due date. If you have been late with a payment or missed one altogether, this will show up on the credit report you receive from the 3 major credit bureaus. You also need to check to see who has been inquiring about your credit history to make sure that no unauthorized person or company has been making inquiries without your permission. When you see that everything is as it should be, then you know that your information is safe with the 3 major credit bureaus. If there are any inaccuracies in the debt information, you will need to contact the credit bureau to start taking the necessary steps to have it corrected.

There are 3 credit bureaus and you need to know about them if you are concerned about your credit report.

This is the absolute fastest way to correct errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage company or a bank. If you apply for a home
loan and find errors on your credit report, request the loan
officer to conduct a Rapid Rescore. But don’t mistake it for the
credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the account is not your
account, a letter stating the account was paid satisfactorily,
a release of lien, a satisfaction of judgment, a bankruptcy
discharge, a letter for deletion of collection account or any
relevant evidence.

This is the same documentation a bank or mortgage company would
require for the credit accounts anyways. The difference is, now
you can improve your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about $50
per account.

2. Deleting Negative Credit

This is the infamous area where you’ve heard of all the scams.
Credit repair clinics charge “an arm and a leg” and promise a
clean credit report. Sometimes even a new credit profile! People
spending hundreds, or even thousands, of dollars for something
they can do themselves.

Removing errors is simple. Deleting negative credit that is
accurate requires advanced methods. But that is not the scope
of this report. So I’ll focus on the deleting the negative
errors.

Credit report errors easily disappear by using a simple dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau’s job easier and
you will get faster results.

If you don’t have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau’s have a “reasonable time” to validate your claim. They
will contact the creditor for verification of your dispute. Then
the account will be reported accurately – or deleted. It has been
generally accepted the “reasonable time” to complete this task is
30 days.

If you’re not the do-it-yourself kind of person. Or don’t have
the time. You could hire someone who is very economical.

3. PiggyBack Someone’s Credit

This is a fast and great little credit score booster. But it
requires a very trusting relationship. Simply put, someone else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their payment history is now
reported on your credit report too. If they have perfect credit,
now you have a perfect account.

To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card account with a
perfect payment history and a balance of only 50% of the credit
limit. Wouldn’t you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire account history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts – especially installment accounts. Your credit
score could sky-rocket!

The challenging part? Finding the trusted person. Since you already
have a low credit score and bad credit, how eager will someone be
to make you a cardholder? Even your parents don’t want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or PIN or any information. Since the
bills and all account information is still mailed to the trusted
person’s address, you won’t know anything about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques
around. It used to be accomplished with secured savings accounts.
But now, it’s much easier with secured credit cards. In fact,
I’ve used this method myself.

Here’s how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash advance of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash advance of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash advance of
70% of your credit limit.

Open a new checking account with the final cash advance. Use this
account only for making payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new perfect payment
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be patient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS
LATE!

That’s right folks. For some reason people think, “I’m only a
few weeks late. What’s the big deal?” Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a simple interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I’m certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn’t it? But it is not as
transparent as you might think. Remember, we’re playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here’s what you do…

Never pay off your revolving debt in it’s entirety! Isn’t that a
surprise? Think about it. Your credit score is a reflection of
your ability to manage your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you manage
it? You don’t. It no longer exists. And you cannot manage what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your ability to swiftly pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you’re over extended to begin
with. Pay off what’s necessary to make your credit profile look
great. Then manage the remaining credit.

7. Don’t Close Accounts

Even if you pay off revolving debts, do not close the account.
The longer an account is open with no negative reports, the
better it reflects in your overall credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts suggest a balance of 30% of your credit limit. That’s
ideal. But you can go as high as 70% and still maintain a
healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This usually drops your credit score
slightly. When you have fresh credit, there is no track record
how you will manage (or pay) this account. Therefore, it’s a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.

Here’s what you do: obtain credit for your housing, transportation,
college or continued education and 3-5 credit cards. That’s really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a “variable” monthly
payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid
on time and you will witness your credit score climb to great
heights.

10. Don’t File Bankruptcy or Foreclosure

Here’s the most obvious advice: Don’t file for bankruptcy or
foreclosure. These stay on your credit report for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure account becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It’s not easy. But it’s possible. See the
advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.

http://myLoanHero.com/go.cgi/daveczach.

But then we go off on our little shopping sprees and buying basically enough merchandise to open up a store of our own, thus putting us in debt. This said it will be safe to say they we do not think of the consequences of maxing out our credit cards.

Many financial advisors say that you should be really careful when it comes to credit and credit cards, because we do not take into account that one day we will want to buy a home or buy a car, and if you have bad credit rating you will be turned down flat out.

A bad credit rating makes life really hard and a bad credit rating makes it really impossible for anyone to get credit from any company, including the tiny little clothing store on the street corner.

Free Fico Credit Score Explained

So if you are wondering how your credit score is determined you will have to do a bit more research, but basically it is a system called the Fico (Fair Isaac company) credit score system.

This system is used mainly buy banks and other financial institutions like credit card companies to determine your worthiness when it come to paying back the money they give you. The Fico system is also the biggest and most used system in the United States of America.

Many financial advisors and accountants’ plea to consumers to keep track of their free fico credit score at all times, as it is what will determine your future financial status.

The best way to do so is to get a free fico credit score. The free fico credit score can be got almost anywhere on the internet and it incorporates reports from all three of the credit bureaus, so you can stay on top of your entire score at all time.

Not many places offer free fico credit scores, but if you do find the better websites you will find a few places online offering free fico credit scores.

So do not delay, it might mean the end of your financial future, stay on top of your credit reports and get the free fico credit score.