Strategies for requesting your free reportsIf you order all of your reports at once, you’ll be able to compare them easily. You will be able to verify information common to all three reports, as well as distinguish the minor differences, such as creditors that report to TransUnion but not Equifax. The downside to this strategy is that you won’t be able to order your free reports again for a full calendar year. If this doesn’t appeal to your sensibilities, you can opt for staggering your requests. One of the advantages to this strategy is that you will be able to track and verify new information being added to your reports, such as new accounts or loans.
Your debts and collections will remain on your credit report. Most items ranging from bankruptcies to collections will remain on your credit report for 7 years. It impacts different credit scores differently as well. For example, if you are looking at your FICO score, then the age of the bad debt or collections account will have less impact the older it is, compared to other credit scores who do not take that into account. Bankruptcies can vary as well, where Chapter 10 remains for 7 years, Chapter 7 will remain on your credit report for 10 years.
Instead: If you keep forgetting to make payments, set up as many reminders as necessary to ensure your bills get paid. If you can’t pay on time because you don’t have enough money, try scrutinizing your budget to see where you can cut back and asking for a grace period or reduced minimum payment. Your credit card company may understand if you demonstrate that you’re working to remedy the situation.
“Consumers participating in this process have greater control and transparency over the financial information that is being shared with a credit grantor,” Shellenberger clarified when asked about privacy and security concerns. “The consumer has direct access to this data and therefore knows exactly what is being shared.” Finicity, Experian and FICO have also set up extensive information security measures and protections to keep users’ data safe, he added.
The interpretation of a credit score will vary by lender, industry, and the economy as a whole. While 640 has been a divider between "prime" and "subprime", all considerations about score revolve around the strength of the economy in general and investors' appetites for risk in providing the funding for borrowers in particular when the score is evaluated. In 2010, the Federal Housing Administration (FHA) tightened its guidelines regarding credit scores to a small degree, but lenders who have to service and sell the securities packaged for sale into the secondary market largely raised their minimum score to 640 in the absence of strong compensating factors in the borrower's loan profile. In another housing example, Fannie Mae and Freddie Mac began charging extra for loans over 75% of the value that have scores below 740. Furthermore, private mortgage insurance companies will not even provide mortgage insurance for borrowers with scores below 660. Therefore, "prime" is a product of the lender's appetite for the risk profile of the borrower at the time that the borrower is asking for the loan.