How and When to Talk to a Credit Bureau

Two women wearing pink smile at a phone while drinking coffee in a cafe against a gray wall.

Your credit score can have a huge impact on your life—for better or worse. In many ways, the three major credit bureaus are the keepers of your credit score. They’re responsible for maintaining credit reports, which means you may need to contact them about the information included on yours. While this may seem daunting, it’s really not complicated.

Read on to learn about when to contact a credit bureau and how to do it. Contact information and tips have been provided for each of the three credit bureaus—Experian, Equifax and TransUnion—to make it as simple as possible.

When to Contact a Credit Bureau

Anytime you notice inaccuracies on your credit report, you should immediately contact the credit bureau. This can include misspelled names, incorrect address information, unreported salary changes or erroneous employment information.

Here are some other reasons why you might need to contact a credit bureau:

  • There are credit cards, collections missed payments or anything else on your report that you don’t recognize.
  • You’re in credit disputes with your credit card issuer or financial institution. You can address this with the credit bureaus, which are required to investigate.

For help talking to the credit bureaus and starting a credit repair plan, you can work with a professional credit repair agency. They offer credit monitoring, credit repair services and text alerts so you don’t miss a thing.

Get Credit Repair Help
  • You want to get a hard inquiry removed from your history, especially if it’s an unauthorized inquiry.
  • An account is missing from your report.
  • You want to remove inaccurate or unfair collection accounts from your report. Keep in mind that if you can’t dispute them successfully, these accounts can stay on your account for a number of years.
  • You want to request a free annual credit report.
  • You want to put a temporary freeze or lock on your credit file.
  • You notice any sign of fraud on your credit report.

Information to Gather before You Call

You want to have the right information on hand when you call a credit bureau. Prepare yourself by collecting the following information in advance, just in case:

  • Your name, address, Social Security number and date of birth
  • A copy of your annual credit report
  • Evidence of the inaccuracies or errors, if relevant
  • Personal financial information, such as your mortgage information, depending on the reported issue
  • Any other supporting documentation

Credit Bureau Contact Information

Because there are so many potential reasons to contact a credit bureau—general inquiries, disputes and credit freezes, for example—there are many different phone numbers and online contact forms to wade through. If you call the wrong number, you may simply be told they cannot help you and directed to call a different number, wasting precious time and energy.

To help you avoid that frustration, we’ve gathered several ways you can contact the credit bureaus for common inquiries here.

Equifax Phone Numbers

Reason to Contact

Phone Number

Availability

General inquiries

866-640-2273

 

Service cancellation

866-243-8181

8 a.m. to 3 a.m. (ET)
7 days a week

Request a copy of your credit report

866-349-5191

8 a.m. to midnight (ET)
7 days a week

Fraud alert

800-525-6285

8 a.m. to midnight (ET)
7 days a week

Credit dispute

866-349-5191

8 a.m. to midnight (ET)
7 days a week

Credit freeze

888-298-0045

8 a.m. to midnight (ET)
7 days a week

2017 data breach

888-548-7878

8 a.m. to midnight (ET)
7 days a week

Opt out of mailing lists

888-567-8688

 

 

If you don’t like talking on the phone, Equifax also offers live chat support. You can chat with a member of their customer support team between 8 a.m. and midnight (ET), Monday through Friday.


TransUnion Phone Numbers

Reason to Contact

Phone Number

Availability

General inquiries

833-395-6938

8 a.m. to 11 p.m. (ET)
Monday–Friday

Credit dispute

833-395-6941

8 a.m to 11:00 p.m. (ET)

Monday–Friday

Credit freeze

888-909-8872

8 a.m. to 11 p.m. (ET)

Fraud alert

800-680-7289

8 a.m.to 11 p.m. (ET)

Free annual report

877-322-8228

 

Haven’t received your report

800-888-4213
800-916-8800 (to speak to a representative)

 

Manage your subscription

833-806-1626

8 a.m. to 9 p.m. (ET)

Monday–Friday

 

8 a.m. to 5 p.m. (ET)
Saturday–Sunday

Technical support

833-806-1626

8 a.m. to 9 pm. (ET)

Monday–Friday

8 a.m. to 5 p.m. (ET)
Saturday–Sunday


Experian Phone Numbers

Reason to Contact

 Phone Number

Availability

Experian membership

479-343-6239

6 a.m. to 8 p.m. (PT)
Monday–Friday

8 a.m. to 5 p.m. (PT)
Saturday–Sunday

Free credit report

888-397-3742

 

Credit dispute

866-200-6020

 

Fraud alert

888-397-3742

 

Credit freeze

888-397-3742

 

Cancel membership

479-343-6239

 

ProtectMyID subscription

866-960-6943

 

Opt out of prescreened offers

888-567-8688

 


Alternatives to Calling Credit Bureaus

Not all experts think calling a credit bureau is the best approach. Don Petersen, an attorney at Howard Lewis & Peterson, PC, in Utah, recommends calling a bureau for only basic administrative questions—such as updating an address or asking if a recent data breach has affected you.

For most other issues, Petersen advises his clients to write to credit bureaus or submit disputes online. This provides you with an official record of your request.

If you do prefer to call a credit bureau, take notes during the call and follow up in writing after the telephone conversation. In your follow-up letter, you should include the name of the representative you spoke with as well as details of what transpired in your conversation.

Send important requests—especially disputes—through certified mail. This allows you to track the letter and ensure that the credit bureau responds in a timely manner. Never send original copies of documents, as the bureaus may not return anything you send.

Equifax Mailing Addresses

Reason for Contact

Address

Credit dispute

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374-0256

Request a copy of your credit report

Equifax Disclosure Department
P.O. Box 740241
Atlanta, GA 30374-0241

Fraud alert

Equifax Information Services LLC
P.O. Box 105069
Atlanta, GA 30348-5069

Credit freeze

Equifax Information Services LLC
P.O. Box 105788
Atlanta, GA 30348-5788


TransUnion Mailing Addresses

Reason to Contact

Address

Credit freeze

TransUnion
P.O. Box 160
Woodlyn, PA 19094

Credit dispute

TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19016-2000

Fraud alert

TransUnion Fraud Victim Assistance
P.O. Box 2000
Chester, PA 19016

Request credit report

TransUnion LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19016


Experian Mailing Addresses

Reason to Contact

Address

Credit dispute

Experian Dispute Department
P.O. Box 4500
Allen, TX 75013

Credit freeze

Experian Security Freeze
P.O. Box 9554
Allen, TX 75013

Privacy

Chief Privacy Officer
Compliance Department
Experian
475 Anton Blvd.
Costa Mesa, CA 92626

Report a relative’s death

Experian
P.O. Box 9701
Allen, TX 75013


Track Your Credit

Under the Fair Credit Reporting Act, you have the right to obtain a free copy of all three reports once each year. These free reports can be accessed on the government-mandated site operated by the big three credit bureaus, AnnualCreditReport.com.

You can also sign up for the free credit report card offered by Credit.com, which provides a snapshot of your credit as well as the ability to dig deeper into the elements that affect your credit score. When you sign up, you’ll also get regular emails with tips and tricks for keeping your credit healthy.

Sign Up Now

The post How and When to Talk to a Credit Bureau appeared first on Credit.com.

Source: credit.com

What Do New FICO Changes Mean for Me?

Have you ever applied for a credit card, car loan or mortgage? If so, then one of the first things the lender looked at was your FICO score. It has a major impact not only on getting approved in the first place, but also on the interest rate you will receive after approval.

On August 7, FICO announced some pretty major changes in how they will be calculating that ever-important number. Before you can understand how the changes will or won’t impact you, you need to have a firm grasp of the basics.

What is my FICO score?

Your FICO score, or credit score, is a number ranging from 300-850 that shows lenders how reliable you will be in repaying your debts. A bad score is anything below 560, not very good is 560-659, good is 660-724, very good is 725-759, and anything above 760 is classified as great. While it is best to be in the great range, you can sometimes qualify for the best available interest rates with 720 or above.

In order to calculate your credit score, FICO pulls information from your credit reports from the three major reporting agencies: Experian, TransUnion, and Equifax. When banks and other lending institutions consider your application, they look at several factors. The first is usually your FICO score, which will either get you in the door or get it slammed in your face, but after that they consider other aspects of your finances, such as income and the detailed history on the credit report itself.

What are the changes, and how will they affect me?

There will be four notable changes to how FICO evaluates your credit score once the announced new model is released. Some of them will be very good for some people, some of them will be bad for others, and some of them may prove to show negligible changes.

The first, and biggest, is that medical debts will no longer be considered when calculating your score. This is a huge relief. Many otherwise fiscally responsible people go into massive debt when a medical emergency happens. Others don’t even know they owe money on medical bills in the first place, as they thought their insurance was going to cover their costs. When they realize they owe money, the responsible consumers pay it back, but it still leaves a scar on their credit report and, therefore, their FICO score.

With this new change, your FICO score will not be impacted. In fact, if you have no other negatives on your credit report (which would mean you most likely have a halfway decent score), you can expect to see your FICO score increase by up to 25 points.

Changes will also be made in considering debts that you have paid off. Currently, after you’ve paid off a debt, it stays on your credit report for seven years. That will continue to be the case after FICO’s updates go into effect, but FICO will no longer look at those debts, even though they show up on your credit report. If you have consumer debts that you have paid off, and they’re the only thing holding you back, you may see your score improve, as well.

There will also be an update to consider the creditworthiness of people who do not have an extensive report, taking into consideration things beyond just paying your month-to-month bills on time. (A lot of times, the people you are paying those bills to don’t even report that anyways.) Depending on how this is done, it could be a boon for those who are unable to get credit not because they are irresponsible, but simply because they have never chosen to borrow money before.

The final update is not good news for those who hold consumer debt. If you owe money and it isn’t paid in full, you can expect to see your credit score take a hit.

Hold your horses – and your enthusiasm.

While FICO has announced that it will make these changes, the new model has not gone into effect. It will not be ready to release to lenders until late 2014 or early 2015. Even then, banks have to choose to adopt it. Thismodel will be FICO 9. FICO 8 was introduced in 2009, and some lending institutions still have not updated since FICO 7. Just because they are releasing a new model doesn’t mean that your lending institution will apply it to their evaluation process.

Another thing to remember is that while your FICO score gets you in the door, banks will look at your credit report. All of those things FICO ignores will still show up. If your medical debts are deemed too oppressive for you to possibly be able to pay for a mortgage on top of them, you may still be denied. And while FICO will ignore debt that has been paid off and closed, it will still stay on that pesky credit report for seven years for all of your potential lenders to see.

While these changes could be a great way to get your foot in the door with lenders, they’re not a holy grail to your credit problems. The same tried and true wisdom will still apply: Spend responsibly, make sure the information on your credit report is accurate and pay off any debts as quickly as possible.

Femme Frugality is a personal finance blogger and freelance writer. You can find more of her writing on her blog, where she shares both factual articles and esoteric ruminations on money.

The post What Do New FICO Changes Mean for Me? appeared first on MintLife Blog.

Source: mint.intuit.com

Boost Your Credit Score: 8 Helpful Credit Monitoring Apps

Two smiling women look at credit monitoring apps on their cellphones.

Maintaining a healthy credit score requires a good bit of focus, determination and hard work. There’s a lot to keep up with: We need to pay our bills on time, reduce debt and maintain a low debt-to-credit ratio, among other requirements—all to ensure a top-notch credit score. We can use all the help we can get! To that end, here are eight credit monitoring apps that can help keep your credit building on track.

1. Credit.com

One of the only truly free credit monitoring apps—most others require you to have a paid subscription to their digital service in order to use the “free” app—the Credit.com mobile app allows you to access your entire credit profile, including your credit score and insight into how it compares to your peers. You’ll see where you currently stand, see how your score has changed—and why—and get credit information and money-saving tips tailored to your score.

Availability: Apple and Android

Cost: Free

2. myFICO

The myFICO app is free, but it requires an active myFICO account, which means it effectively costs $20 per month or more, depending on which features you want. With this app, though, you can view and monitor your FICO scores—the most widely used credit score—and credit reports. They also provide a FICO Score Simulator, which shows you how your score may be affected if you take certain actions.

Availability: Apple and Android

Cost: Free, but requires an active myFICO account

3. Lock & Alert from Equifax

Lock & Alert from Equifax lets you lock and unlock your Equifax credit report to protect against identity theft and fraud. You’ll get an alert any time your account is locked or unlocked so you know you’re the one in control. A credit lock is not as secure as a credit freeze, but it does offer some level of protection and is generally easier to turn on and off. This app works only for your Equifax credit report, so if you want to lock all three reports, you’ll have to work with TransUnion and Experian separately.

Availability: Apple and Android

Cost: Free

4. Experian

The Experian mobile credit monitoring app lets you track your Experian credit report and FICO score, with an automatically updated credit report every 30 days. The app also comes with Experian Boost, which can help you boost your score. The app alerts you when changes to your report or score occur, and offers suggested credit cards based on your FICO score.

Availability: Apple and Android

Cost: Free, but some features require a paid Experian account

5. Lexington Law

If you’ve signed up for credit repair services with Lexington Law, you can use their free mobile app to keep track of your progress. In addition to providing access to your credit reports from all three credit bureaus and updates on ongoing disputes, the money manager feature, similar to Mint, helps you track your income, spending, budgets and debts.

Availability: Apple and Android

Cost: Free, but requires a paid Lexington Law account

6. TransUnion

The TransUnion mobile app allows you to refresh your credit score and credit report daily to see where you stand. It offers instant alerts if anything changes and offers Credit Lock Plus, which allows you to lock your TransUnion credit report to avoid identity theft and fraud. The Debt Analysis tool lets you calculate your debt-to-income ratio, and it allows you to view public records associated with your name.

Availability: Apple and Android

Cost: Free, but requires a paid TransUnion Credit Monitoring account

7. ScoreSense Scores To Go

ScoreSense offers credit scores and reports from all three credit bureaus and daily credit monitoring and alerts to changes on your reports. This app also provides creditor contact information so you can address errors on your report quickly and efficiently. Score tracking features let you review how your score changes over time and how it compares to your peers.

Availability: Apple and Android

Cost: Free, but requires a paid ScoreSense account

8. Self

Self helps you build—and track—your credit, making it great for people just establishing their credit profile or trying to rebuild damaged credit. Self offers one- and two-year loan terms, but instead of getting the money up front, the amount is deposited into a CD. You make regular payments for the term of the loan (at least $25 per month), and then get access to the money. There is no hard inquiry to open the account, but your payments are reported to all three credit bureaus, helping build your credit. Plus, while you are repaying your loan, you will have access to free credit monitoring and you VantageScore so you can track your progress.

Availability: Apple and Android

Cost: Free, but requires a Self loan repayment of at least $25 per month

Credit Monitoring Apps to Fit Your Needs

With so many different options, you’re sure to find a credit monitoring app that meets your needs. And don’t forget: you can always check your score for free using Credit.com’s free Credit Report Card.

The post Boost Your Credit Score: 8 Helpful Credit Monitoring Apps appeared first on Credit.com.

Source: credit.com

How to Financially Prepare for Post-Pandemic Life

As the dust slowly begins to settle and we observe businesses putting their action plans in place to recover, we all sit and wonder what this may look like for us. How will I recover from this? How am I going to cover these unexpected expenses? How will I increase my earning potential? Whether you’re navigating the muddy waters of being unemployed, furloughed, return to office plans or continue working remotely – we have many things to consider as time continues to quickly progress. How should we handle debt? Are there any more relief programs or funding? How can we pick up the pieces and properly recuperate what may have been lost? Use the tips below to jumpstart your journey of reclaiming your finances.

Identify your financial focuses

Over the course of this year, many financial goals that were initially set needed to be tweaked or came to a screeching halt altogether. While it would be nice if we could rectify the many financial aspirations we have for ourselves and our families all at once, it’s simply not realistic. To alleviate the impounding pressure many have had to experience for a good chunk of time this year, it’s best to identify two to three key areas of focus. Not only does narrowing your focus help direct where your efforts should lie, it removes unnecessary stress so that a plan of attack can be created and executed upon. For example, if you would like to begin rebuilding your emergency fund, savings or simply get caught up on bills and other overhead expenses – make sure the actionable steps you take align with the overarching goal. This helps create tunnel vision to execute on the goal while quieting the noise of things that can be tackled at a later time. You owe it to yourself and your finances to see these goals through to the finish line.

Revisit your budget and make adjustments as necessary

Many think of budgeting like that pesky chore you put off every single week. It’s that ‘thing’ you know needs to be done, but you always find something else to do instead. However, once it’s done – you’re always glad that you did it. Even if you have to have an adult temper tantrum, pull out the pen and paper (once again) to compare your income with expenses. Has your income increased or decreased? Are there expenses that are no longer on the list? Are there certain wants or luxuries that can be temporarily put on hold until things settle down? Take all of these factors into consideration when recalibrating your budget. Since there’s an increased amount of time indoors, are there any spending habits you’ve noticed that have been on the rise? If these questions are not easily answered, commit to reviewing the last few months of your bank statements. Do you notice more to-go food orders? An increased amount of emotional or impulsive purchases? Be honest with yourself and your habits so that you can address and make changes to healthily rebuild your finances.

Adjust debt payoff plan

If you haven’t taken the opportunity to contact your creditors – consider this as a reminder! It’s imperative you maintain an open line of communication with all lenders. These conversations can potentially lead to various options being available to assist you in your debt payoff process. Remember to keep in mind that you are not the only person experiencing financial hardship, so let pride become a thing of the past and be candid. Are there relief options during the pandemic? Are interest rates being lowered because of the current climate? If I were to miss a payment, what are the consequences? Are negative remarks being reported to the credit bureaus? Be very clear in your delivery. There are thousands and thousands of people attempting to pick up the pieces on their money journey. Take some time to check all creditor accounts for the most recent balances. From there, create (or readjust) your plan based on your personal circumstances. If it’s easier to tackle the smallest debt, shift your attention to those accounts. If catching up and restoring good standing with utilities and other overhead expenses need to be addressed first, do that. There is no right or wrong way to approach your plan; just don’t adopt the spirit of avoidance.

Monitor your credit score regularly

There’s been a huge surge in personal data being compromised due to the pandemic. To protect yourself and your credit score, be sure to obtain a copy of your credit report from at least one of the bureaus (Experian, TransUnion and Equifax) and review regularly. Normally, you are allotted one free credit report every year – however, because of the pandemic you can now request your report weekly at no cost to you until April 2021. We all know there’s a lot on all of our plates, but this can be incorporated in your weekly routine to make sure information stays accurate. During your review if there’s anything that’s false, submit a dispute and be sure to have any supporting documentation that can serve as evidence to support your claim.

Even though we don’t like to admit it, life can present a lot of challenges that we may not be fully prepared for in our ever-changing adulthood journey. This pandemic has shined a light on the areas in our lives that can use some more time, intention and attention. Instead of beating ourselves up about the lack of preparedness, let’s be sure to make adjustments now so no matter what happens with the economy or the state of this country it does not have such a huge, negative impact to our financial goals. Let’s face it – even in the midst of tragedy, this year equipped us with a different level of endurance and resilience. It reminded us what really matters and where our energy should really be dedicated to. Start where you are and do what you can. Refrain from comparing your personal money story to someone else’s. We all have unique situations and obligations that influence our saving and spending plans. Dust yourself off, grant yourself grace and begin a new chapter in your financial journey.

 

The post How to Financially Prepare for Post-Pandemic Life appeared first on MintLife Blog.

Source: mint.intuit.com

Average credit card interest rates: Week of January 20, 2021

The average credit card interest rate is 16.05%.

U.S. credit card lenders once again declined to revise APRs on some of the country best-known cards, according to the CreditCards.com Weekly Credit Card Rate Report. None of the 100 cards tracked weekly by CreditCards.com advertised new rates. As a result, the average starting APR for brand-new cards remained at 16.05% for the eighth consecutive week.

APRs have remained within rounding distance of 16% for nearly 10 consecutive months

APRs on brand-new credit cards have remained unusually stable for months now. For example, the average new card APR hasn’t wavered by more than a quarter of a percentage point since April and it has remained just above 16% since mid-November. Earlier in the year, the average card APR briefly dipped to 15.97%, which is the lowest APR average CreditCards.com has recorded since 2017. But for most of 2020, the average card APR remained above 16%.

Despite their current stability, average APRs are dramatically lower than they were a year ago when the average APR began 2020 at 17.30%.

At that time, even cardholders with excellent credit were likely to be assigned rates as high as 17% or more. Today, by contrast, few general market cards that are marketed to borrowers with the best credit charge such high rates.

Among the 100 cards tracked by CreditCards.com, for example, only one general market card for borrowers with excellent credit currently charges a minimum APR above 16.99%. The Capital One Venture Rewards Card starts APRs at 17.24% and caps them at 24.49%. But most comparable cards charge lower rates.

Among travel rewards cards, for example:

  • The Bank of America® Premium Rewards® card and the Chase Sapphire Preferred Card both start APRs at 15.99%
  • The APRs on the high-end Chase Sapphire Reserve card and Citi Prestige® Card start at 16.99%.
  • The minimum APR on the Discover it® Miles card is 11.99% while the APRs on a number of popular airline cards, such as the Southwest Airlines Rapid Rewards Premier Credit Card, the Delta SkyMiles® Gold American Express Card and the Frontier Airlines World Mastercard from Barclays, start below 16%.

The average maximum card APR is also significantly lower. For example, the average maximum APR for all 100 cards included in the CreditCards.com rate report is currently 23.55%. The average median APR is 19.8%.

Capital One’s decision to leave rates alone last spring leaves it out of step with other issuers

When the Federal Reserve cut federal interest rates by more than a full percentage point last spring, Capital One was the only major, nationwide issuer not to match the central bank’s rate cut on new general market cards. As a result, cardholders with lower scores are less likely than other cardholders these days to secure a significantly lower APR than what they would have been able to get a year ago.

That’s because Capital One is one of the leading issuers of cards for borrowers with fair credit. Its line of subprime cards continues to charge the same 26.99% APR the cards advertised for much of last winter.

However, borrowers with lower scores do have more options than they had a year ago if they compare rates with other issuers. For example:

  • The Discover it® Secured card and the BankAmericard Secured Credit Card currently offer a 22.99% APR.
  • The Citi® Secured Mastercard® card starts APRs at 22.49%.

Not all lenders have given borrowers with bad credit a reprieve, though, amid the pandemic. For example, U.S. Bank dramatically hiked the APR on its flagship secured card, pushing the card’s only APR to 25.99%. As a result, the average APR for all subprime cards tracked by CreditCards.com is the same as it was a year ago: 25.3%.

The average APR for rewards cards, by contrast, has fallen from 17.11% to 15.76%, while the average low interest card APR has tumbled from 14.1% to 12.77%.

See related: How do credit card APRs work?

*All information about the Chase Sapphire Preferred Card and the Citi Prestige has been collected independently by CreditCards.com and has not been reviewed by the issuer. This offer is no longer available on our site.

CreditCards.com’s Weekly Rate Report

Avg. APR Last week 6 months ago
National average 16.05% 16.05% 16.03%
Low interest 12.77% 12.77% 12.83%
Cash back 15.85% 15.85% 16.09%
Balance transfer 13.85% 13.85% 13.93%
Business 13.91% 13.91% 13.91%
Student 16.12% 16.12% 16.12%
Airline 15.53% 15.53% 15.48%
Rewards 15.76% 15.76% 15.82%
Instant approval 18.38% 18.38% 18.65%
Bad credit 25.30% 25.30% 24.43%
Methodology: The national average credit card APR is comprised of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category listed above. (Introductory, or teaser, rates are not included in the calculation.)
Source: CreditCards.com
Updated: January 20, 2021

Historic interest rates by card type

Some credit cards charge even higher rates, on average. The type of rate you get will depend in part on the category of credit card you own. For example, even the best travel credit cards often charge higher rates than basic, low interest credit cards.

CreditCards.com has been calculating average rates for a wide variety of credit card categories, including student cards, balance transfer cards, cash back cards and more, since 2007.

How to get a low credit card interest rate

Your odds of getting approved for a card’s lowest rate will increase the more you improve your credit score. Some factors that influence your credit card APR will be out of your control, such as the length of time you’ve been handling credit.

However, even if you’re new to credit or are rebuilding your score, there are steps you can take to ensure a lower APR. For example:

  1. Pay your bills on time. The single most important factor influencing your credit score – and your ability to win a lower rate – is your track record of making on-time payments. Lenders are more likely to trust you with a competitive APR – and other positive terms, such as a big credit limit – if you have a lengthy history of paying your bills on time.
  2. Keep your balances low. Lenders also want to see that you are responsible with your credit and don’t overcharge. As a result, credit scores take into account the amount of credit you’re using, compared to how much credit you’ve been given. This is known as your credit utilization ratio. Typically, the lower your ratio, the better. For example, personal finance experts often recommend that you keep your balances well below 30% of your total credit limit.
  3. Build a lengthy and diverse credit history. Lenders also like to see that you’ve been successfully using credit for a long time and have experience with different types of credit, including revolving credit and installment loans. As a result, credit scores, such as the FICO score and VantageScore, factor in the average length of your credit history and the types of loans you’ve handled (which is known as your credit mix). To keep your credit history as long as possible, continue to use your oldest credit card so your lender doesn’t close it.
  4. Call your lender. If you’ve successfully owned a credit card for a long time, you may be able to convince your lender to lower your interest rate – especially if you have excellent credit. Reach out to your lender and ask if they’d be willing to negotiate a lower APR.
  5. Monitor your credit report. Check your credit reports regularly to make sure you’re being accurately scored. The last thing you want is for a mistake or unauthorized account to drag down your credit score. You have the right to check your credit reports from each major credit bureau (Equifax, Experian and TransUnion) once per year for free through AnnualCreditReport.com.

Source: creditcards.com

How to Add Rent and Utilities to Your Credit Report

A father and teenage son sit out on a porch with a laptop discussing how to add rent and utilities to your credit report.

More than 43 million people in America pay rent, but you wouldn’t know it to look at their credit reports. In fact, most rent and utility payments are not reported to the credit bureaus, which means you may not be getting credit for bills that you regularly pay. Here’s how to add rent and utility payments to your credit report.

>> Learn more: How Rent Can Affect Your Credit Score

How Tradelines Work

Your creditors—including your credit card issuer, loan issuer, utility provider, and landlord—are not required to report to the credit bureaus. In fact, they have to pay a fee in order to report to the credit bureaus. That’s why many creditors like landlords and utility providers don’t report on-time payments, or will only report to one or two bureaus instead of all three.

But if you pay your rent and utilities on time regularly, those payments could be helping you build your credit profile. You just need to convince your creditors to report them to the bureaus. If they’re reported, the credit bureaus will include that information on your credit report and use it to determine your credit scores.

Sign Up for ExtraCredit

We don’t want to sound arrogant, but ExtraCredit is one of the easiest way to get your rent and utility payments added as new tradelines on your credit reports with each bureau. One account with ExtraCredit allows you to add those payments, and so much more—for less than what many other services charge.

ExtraCredit will securely connect to your bank account and automatically identify rent and utility payments, then facilitate a connection with each credit reporting agency. You’ll start seeing your payments show up as tradelines on each credit report in a matter of weeks. If you keep up with your on-time payments, these could help you build your credit profile with these payments as tradelines on your report.

What’s the “so much more” included in an ExtraCredit account? How about 28 FICO® scores and credit reports from all three credit bureaus. And dark web monitoring. And $1 million identity theft protection insurance. And cashback opportunities. And an exclusive discount to one of the leaders in credit repair. For just $24.99 a month. ExtraCredit may not be the only company to offer rent and utility reporting, but we are the only company to combine it with total credit coverage. Learn more.

Try Experian Boost

Experian Boost allows you to add utility and mobile phone payment history to your Experian credit report. Boost is free and will only add positive payment history, but it is only added to your Experian credit report. So if a creditor pulls your Equifax or TransUnion scores, the boost  you got from Experian Boost won’t help.

Use Other Third-Party Services

There are other third-party services that can help you add tradelines to your report, like RentReporters and SimpleBills. But that means signing up for multiple accounts and keeping track of them separately—and without easy access to your credit scores and credit reports so you can see how those payments are affecting your credit profile. These services also generally have a high sign-up fee plus monthly fees. And many only report to one or two credit bureaus, not all three.

Talk to Your Landlord

Another option is talking to your landlord or other creditor directly and asking them to start reporting your payments to the bureaus. Remember, there’s a fee for them to do so, so they might not be interested. You could offer to pay—but if you’re paying, you’re probably better off signing up for an account that you can regularly access.

Other Ways to Build Credit

Getting your rent and utility payments added to your credit report is far from the only way to build your credit. Your payment history accounts for 35% of your credit score, so the best way to build your credit is to pay all of your bills on time—every time.

If you don’t have any credit accounts, consider applying for a secured credit card or opening a credit-builder loan. These credit-building tools are great for individuals with a thin credit file.

Add Rent and Utility Payments to Your Credit Report

Learn More

  • I Can’t Pay My Rent: What Are My Options?
  • How to Get Out of a Lease
  • I Hate Having Roommates: 7 Ways to Afford Living Alone
  • Landlords and Credit Checks: What You Need to Know

The post How to Add Rent and Utilities to Your Credit Report appeared first on Credit.com.

Source: credit.com