CREDIT REPORT

Can You Dispute A Credit Report

People often talk about disputing a credit report, but in fact it is in everyone’s interests including the credit rating bureau that the credit report is completely and 100 cent accurate, as it is used as the basis for producing a credit score which ultimately determines individuals ability to loan money from Ford credit or any other financial lender.

A credit report is effectively a dossier made up of information taken from the potential customers application form, and a wealth of other personal and financial and credit information, with current and historical.

Normally an individual is allowed to see a copy of their credit report from the three major credit bureaus for free once a year. This is really important as it allows them to check the information contained in the report, and make sure it is accurate and up-to-date.

There is certain information that although accurate can normally only be used for a certain length of time. Types of information that this relates to can include things such as bankruptcy. This means that after a certain number of years a credit bureau can no longer include these items as a basis for determining your credit score.

Can You Dispute A Credit Report

If you discover information in your credit report that you believe is inaccurate or up-to-date this is really important that you get back to the credit rating agency or bureau and tell them. It is in their interest that the information in the credit report is accurate and current, and if what you are saying to them is evidently provable than they should be open and willing to change it.

The problem in terms of disputing a credit report often comes when the customer disagrees with the value of the credit score that has been determined by the credit report, rather than information contained in the credit report itself.

This is a much trickier area, as the allocation of a credit score is a judgement by a credit rating agency, normally done by mathematical algorithms largely, which they believe reflects the accuracy of information they have about you.

Trying to get them to change their mind can be tricky, but if there are exceptional circumstances or reasons why certain areas of your credit report may look worse and they actually are then it is certainly well worth contacting them and telling them.

At the end of the day, a credit bureau is there to provide an accurate assessment of what they believe your credit worthiness is.

They should be open to including any information about you that is relevant, but there will also be wary of using a focus on their own internal workings and experience to help them determine what they believe to be an accurate credit score for you or anyone applying with you for credit or a loan.

What is a Credit Bureau Report

A credit bureau report is normally referred to as a credit report. There are three main credit bureaus in the United States and most countries broad, and they are used by Ford credit and most other finance institutions such as banks and credit unions to whom people turn when they want to obtain any type of credit or finance.

A credit bureau report is a  document that is a compilation of a huge amount of information about individual, both personal and financial. This report is used as a basis for generating a credit score, which is then used as a basis for determining whether or not to give the potential customer any type of finance or credit, and if so on what terms and conditions.

A credit bureau report will contain information such as the individual’s name, their social security number, date of birth, their current and previous addresses and how long they have lived that, their current and previous employers and the length of employment, and whether the employment was part-time or full-time, their current patient and sources of income.

What is a Credit Bureau Report

The credit report will also look at the individual’s credit history, including all types of loans and debt agreements, including any issues such as late payments or defaults on loans.

It is important for any potential customer to obtain a copy of their credit report or credit bureau report and check that the information contained in it is accurate and up-to-date. Most people can access a copy of their credit report for free once a year from each of the major bureaus.

The reason this matters is not any to check that the information is accurate and correct, but because certain information that can have a major impact is normally only valid for a certain number of years. This means that after the time period has elapsed it must be removed from the credit report and cannot be used as part of the assessment.

A credit bureau report can be quite an intimidating document, but its accuracy is hugely important for all areas of a persons life revolving around credit and finance. It is crucially important therefore that it is checked at least once a year to make sure it is accurate and correct. C

What is a Credit Check

A credit check is an assessment that will be undertaken initially by Ford Credit, and passed onto one of the three major credit rating bureaus, to assess whether or not a potential customer is deemed to be a good credit risk or not in terms of lending them the money to purchase a car or truck from Ford.

Ford operate a finance arm known as Ford credit, which offers dealership financing to potential customers who are interested in buying or leasing a vehicle from them. In order to know whether or not the customer is a good risk from a financial point of view for credit will undertake what is known as a credit check on individual.

This involves the individual fully out an application form, which they may do initially online or at a Ford dealership, which will detail a significant amount of personal and financial information about them.

What is a Credit Check

If they have a cosigner then the same information will be required but them, and if the purchase is being done on a commercial basis than information may will be sought about other partners or directors of the business.

Once the application has been processed it will be passed onto one of the major credit rating bureaus who will assess it alongside a range of other information that they have obtained through public records about the potential customer.

These records will then be collated into what is known as a credit report, which is a document which effectively evaluates your credit application. On the basis of this evaluation a credit score is generated.

A credit score is simply a number that is set on a scale between two other numbers to show its relevance in terms of being high or low, and thus giving information back to Ford credit as to the opinion of your creditworthiness.

This credit score is then used as a basis for determining whether or not to lend the customer money, and if so, what terms and conditions such as the size of the deposit, the interest rate etc.

What is a Free Credit Check?

A free credit check normally refers to a free credit report. Depending upon where you live, there is normally a legal obligation on  the three main credit bureaus to provide a copy of an individual’s credit report free to them once a year.

In addition, many of the bureaus will also offer the customers the chance to see their credit score, but this is normally something they charge for.

Having a look at your credit report is actually a very sensible thing to do, especially if you are thinking of applying for any type of auto loan with Ford credit or any other type of finance body. The reason is simply that viewing a copy of your credit report allows you to check that the information contained in it is accurate and up-to-date.

The credit report contains a significant amount of information relating to the individual’s credit history, their credits transactions and their financial health generally.

Free Credit Check

This information is used to assess the credit bureaus interpretation of the customers creditworthiness, for allocating them a credit score that is then used to determine whether or not to lend the money and if so on what terms and conditions.

Some people also worry that when they apply for a loan this has a negative impact on their credit score. Generally speaking this is true, as certain factors affect the credit bureaus interpretation of a customer’s need for credit.

If someone is continually applying for loans and either be accepted or rejected it can tell the credit bureau a loss about that customers credit habits.

When applying for an auto loan with Ford credit or any other lender this does not apply. Made credit bureaus expect you to get quotations from  alternative lenders in order to be able to compare them on a like-for-like basis.

This means that if you are applying for an auto loan, then it is a good idea to obtain tones of quotations from other sources in order to be able to compare them. Normally two or three alternative quotations should be sufficient.

What is an Equifax Credit Report

Equifax is one of the three main credit rating bureaus that are used to produce credit reports and credit scores on potential customers for Ford credit, as well as other banks, finance houses and credit unions.

It is worth bearing in mind that there are three main credit agencies in the US and worldwide, and that Ford credit may well use any one of them or all three if they feel it necessary.

Equifax along with the other credit rating agencies use similar methods for compiling their credit report, and similar ways of interpreting the information contained in such a report, and will arrive at their own version of a credit score for the individual.

It is important to understand that a credit report is a document made up of a significant amount of personal and financial information. First of all, there is information provided in the application form by the applicant, possibly by a cosigner, and possibly by other members of the applicant’s family or business colleagues if appropriate.

Equifax Credit Report

In addition the credit report will contain information such as the individual’s name, date of birth, the current and previous addresses, their current and previous telephone numbers, a drivers license, the passport and their current and previous employers.

There will be a significant amount of history about the individual’s credit concerning any use of credit cards, lines of credit from a bank of the sources, the length of their credit history etc.

There will also be note of any major credit defaults or problems regarding payments for late payments on any mortgages, loans or significant financial collections.

Once Equifax has collected all this information, it will release it into a report that it then analyses by way of a number of algorithms to produce a credit score. This credit score is in effect a number that is plotted on a graft between two of the numbers to show its relevance between them.

The important thing from a customer point of view is to obtain a copy of the credit report, and check that the information contained in it is accurate and up-to-date. This is especially true if the applicant has had any serious financial problems such as bankruptcy in the past, as there is normally a time limit as to how long the type of information can be used for

Can You Get A Personal Loan To Buy A Car?

Anyone buying a car is likely to use some type of personal loan, or a mix of cash and  credit.

Personal loans can be what are known as either secured loans or unsecured loans, and when thinking of buying a car or a truck can be done directly with the manufacturers dealership, such as Ford, Nissan, General Motors etc, or with another institution such as a bank or a credit union. A secured loan is more normal when buying a car or truck, or any type of motor vehicle.

A secured loan means that the loan is based against the value of the car that it is being lent against. This means that in the event of the person taking out the loan defaulting on it or not being able to pay it back the car becomes the property of  whoever lent the money and they can sell it in order to try and  get their money back.

An unsecured loan is more common from banks and credit unions, and can be for any purpose at all subject to the approval of the lender. An unsecured loan does not have any collateral against it, and as such is likely to have a higher rate of interest than an unsecured loan, and generally less favourable terms and conditions such as the size of the down payment or the length of time of the loan period.

A personal loan that is taken out with someone such as Ford Credit or GM financial is for many people the most normal and straightforward way to borrow money to buy a new or used car, but as with all types of personal loans there are other options available, some long-term some short-term, some better than others !

Personal Loans and Payday Loans

Payday loans have a pretty bad reputation largely because of their huge interest rates, and are unlikely to be used when buying a type of car or motor-vehicle.

However some may consider them if they fall short during a particular month and had problems with your other commitments for their monthly repayment on a car loan. Payday loans market themselves as being a short-term solution to help bridge some temporary funding problems.

Whilst this may be true one sense, they can be hugely expensive to manage and should only be used as an absolute last resort. There are normally other options available including the option of refinancing the original loan should export first.

Personal Loans and Bad Credit Loans

Bad credit loans can be a real problem for a lot of people looking to buy or use any car or truck. People who have a bad credit history not only find it more difficult to obtain any type of credit or loans, but also more open to be exploited by people offering what may seem to be easy solutions.

The whole idea of bad credit is one that plays into the hands of people looking for some type of financial help us at the same time feeling grateful for any type of loan or credit offered however poor the terms and conditions may be.

The real solution is to really examine the nature of your credit report credit history, and take a longer-term view to re-establish a good credit reputation and manage credit for much more effective and beneficial way.

Personal loans and On-line Loans

The growth of the Internet has spawned a whole range of on-line loan companies and businesses, many of them offering supposedly cheap and easy solutions to anyone looking to arrange finance to buy a car or truck with a personal loan.

The problem with a number of these websites is very exactly who you are dealing with. If the website is a front for a legitimate bank or credit union than there should be no problems.

If it is a purely on-line company that can be trickier as they will our a considerable amount of personal and financial information from you in the first place by way of application, and  in the event the application is successful, there may be problems further down the line in terms of contacting them and dealing directly with any personnell.

Personal Loans and Small Loans

Small loans may seem small at the time, but can quickly go if they are potentially payday loans is referred to above, where the interest on explode very quickly and turns what looks like a fairly small loan or advance in something actually quite huge. When considering a personal loan to buy a car or truck try and stick to auto dealerships such as Ford and General Motors,  or the more traditional routes such as a bank or a credit union. If emergency cash is needed by and use a credit card if possible, or some other type of temporary bridging facility.

Personal Loans and Quick Loans

Personal loans that are advertised as quick loans often come under the same banner as small loans and payday loans.

The indication in the very name quick loans is that there will be an easy and quick decision made, can often appealing to people who have a bad credit history or who fear a lengthy investigation that finances prior to being able to borrow any money.

Any reputable leader be it Ford Credit or General Motors is likely to consider an application form reasonably quickly as it is no interests to come to a decision and let you know what that decision is. Anyone advertising an incredibly quick loan may do it quicker, but odds are they are likely to charge a much higher rate of interest or impose much less favourable terms and conditions.

No Credit Check Loans

Any loan provider seeking to entice custom by way of making a point that they do not carry out a credit check either has money to give away (which is unlikely !)  or is in some way looking to attract people who are vulnerable because they have a poor bad credit history and believe that any credit check will simply stop them being able to have a personal loan.

Anyone with a poor credit history or bad credit looking to obtain a personal loan would do well to investigate their own credit report first, and do what they can to improve their credit score and then shop around.

Even someone with bad credit may well contain some type of personal loan from a  reputable financial institution, even if the rate of interest is higher than it would be otherwise. In the long term this is likely to be a much more beneficial solution financially.

Personal Loans Low Interest Loans

Low interest loans obviously have an attraction, just be aware that there are normally other terms and conditions which will compensate for a lower rate of interest than would otherwise be the case.

Sometimes low interest loans are aimed at people who have an exceptionally high credit score, and are deemed a very good risk to lend money to. At other times, low-interest loans are affected subsidised by acquiring a much higher down payment, or a significantly longer period of a loan term.

The thing to watch for these type of loans is whether there is any penalty charge that may be incurred if the loan is paid off early, which can often be significant in terms of additional charges.

 

What Are Bad Credit Car Loans?

The idea of bad credit is something that can affect many people – knowing what it is and how to fix it can make a real difference when buying or leasing a car.

Key to understanding what bad credit means is understanding the idea of a credit report, and how that credit report generates a credit score that is then used as a guide by car manufacturers such as Ford Credit, GM Financial as to whether or not to lend you money and if so on what terms and conditions.

A credit score is essentially a number between a fixed range of two other numbers that gives a guide as to the credit rating agencies opinion about your creditworthiness. From this stands the notion of good and bad credit.

This idea of good and bad credit is to some extent true, but that is often a lot of flexibility in the system that means the numeric idea behind it should not be seen as too rigid.

Bad Credit – FICO Sore and Vantage Score

Fico is perhaps the most well-known scoring system, the other one that is also widely used is the vantage score.

Both systems use a scoring range of between 300 and 850, with the ratings system adjusted accordingly, implying that a score  that is bottom to mid of this range is poor or bad credit, whilst a score ranging from the middle of the range to the top is a good or excellent score.

Naturally people look to the scoring system as almost an exact science, and whilst it’s understandable it can also be used to literally.

Whilst the scoring system is used to determine creditworthiness, a lender will often take other factors into account on the individual situation, and will also base their decision differently depending upon what the money is to be used for, and whether or not the loan is a personal secured loan or an unsecured loan.

In reality, there is also quite a lot of negotiating that can be done around the idea of a car loan, given the different components of a down payment and length of term of the loan, and options such as having a cosigner guarantee the loan.

Bad Credit – What Impacts a Credit Score

The main credit bureaus will have slightly different assessments of how to generate a credit score, and different lenders will use a credit score and relating information differently. However, there are a number of factors that affect a credit score.

Wells Fargo have given the following formula as a guide, and it is useful as such. According to them 35% of your score is based on your payment history, 30% is based on current debts, 15% is determined by your credit history, 10% is allotted to new credit applications and 10% is about types of current credit.

A lot of what affects your credit score is common sense, and anyone with a bad or poor credit rating would do well to understand the mechanics of credit and do what they can to improve their credit report and subsequent credit score.

Bad Credit and No Credit.

People often assume that these two are the same thing as a fact they are not. A lot of young people started off a working life will have no credit history, and as such may be penalised unfairly when applying for a car loan or any other type of unsecured loan or credit agreement.

But are however a number of banks and financial restrictions will appreciate the difference between bad credit and no credit and make adjustments accordingly.

Anyone who is relatively young, say under the age of 25, and is looking to buy a car is going to be hit by significant insurance costs in addition to the cost of buying or leasing a car, and the idea of a cosigner can be a hugely beneficial addition to the  whole process.

A cosigner will essentially take responsibility for making sure the loan is paid back, and they will be liable for the outstanding amount of the loan if payments are missed or repayment is not able to be made. Obviously this is quite a significant responsibility for the cosigner, and is normally done either by a parent or guardian or some other family member.

The advantage of a cosigner is at it allows someone else to buy or lease a car at a much more reasonable rate, and allows them to build up a credit history in their own right.

Improving Bad Credit

Anyone who considers themselves have a bad credit score would do well to do what they can to improve it. The first port of call is to obtain a copy of your credit report, and see what information is in there. Check that the information is accurate, and that any out of date information is removed.

Certain areas of inflation have a time bar on them as to how long they can be included in your credit report and you should be checked and removed as necessary. The other things that you can do all relate to improving how your credit is viewed by credit bureaus.

The sort of things they look for are prompt payment of bills, some type of regular payment history regarding to all direct debits and use of available credit. Taking time to update payments and clear debt can make a real difference.

In addition, doing things such as building up a positive credit history can help, although it can also take time. Having additional credit cards and personal loans that are secured can show a pattern of behaviour that demonstrates responsibility regarding money.

Having said that it is important not to take on additional debt or loans unless you have sufficient ability to repay them, otherwise she simply end up with a worse credit history than before. It is often possible to obtain credit cards that are either known as secured or pre paid.

A secured credit card me that is is essentially guaranteed against some type of deposit that you hold, often in a bank account. A prepaid credit card means that you have two load it with a certain amount of money before you’re able to use it, I can only use it to the extent of the funds secured on it.

Whilst both of these are a bit cumbersome, they do mean that you are able to use the basis of credit cards as a way of securing an improvement in credit history, and overcome some of the problems associated with bad credit. U

How Does a Credit Score Work ?

A credit score is a rating system that is used to determine whether or not to lend you money, and if so on what terms and conditions. Some of the most common questions are :

A credit score is the one real determinant that applies to most auto credit, whether it be a loan for a new or used car or a lease agreement with one of the main manufacturers. Anyone applying for auto credit will need to go through an application process, the end result of which is a credit score that determines both whether or not the loan is approved, and if so what terms and conditions.

One of the reasons it is important to understand both what a credit report and a credit score is, is that it is possible to do a number of things to improve both the credit report and consequently the credit score, and thus make obtaining a loan or getting better terms and conditions much more likely.

Credit Score – Application Process

Anyone applying for any type of auto credit will need to fill out a fairly detailed application form, either online or more traditionally in paper form. The application form will require a significant amount of personal and financial information about individual, possibly their family and possibly their business associates before loan is in any part for a commercial vehicle or enterprise. The information required will normally relate to items such as the individual’s name, their date of birth, their current and previous addresses, their current telephone numbers and email addresses.

More sensitive information will also be required such as their Social Security number or their social insurance number, their drivers license number and possibly a copy thereof and possibly their passport as well. Their current and previous employers details will also be needed, both to verify their employment status and give some indication of stability regarding work. If self-employed, then either a number of years worth of accounts or some statement from the accountant will be needed to verify their financial position.

Credit Score – Credit History

Once the application process has been done, the application form will be forwarded to one of the major credit rating agencies, who will compile what is known as a credit report. This is a mix of the parcel information in the application form and a summary of the credit history of the individual. The credit history of the individual moment refers or contains information regarding the following areas. Information that is in the sense of public record such as bankruptcies, as well as information that is essentially private such as their banking records, overdrafts and closed accounts.

The credit history will look for areas such as bounced checks, what lines of credit there have been and how they have been used, current and previous loans and mortgages and how they have been managed. Items such as credit cards and store cards will also be looked at both for any sign of late payments or defaults, or how the credit has been managed. One big warning flag is the issue of pay day loans.

Credit Score – Credit Report

Once all this information has been collected, it is compiled into what is known as a credit report. This credit report is then used to produce what is known as a credit score. Essentially what happens, is that the individual is allocated a number set within a sliding scale of two of the numbers. The standard example or is given is the individual being allocated a number of 350 between a sliding scale of zero and 700. This credit score is then used by the credit rating agency, by the main dealerships and any bank or finance house as a way of determining whether or not to blame the individual any money.

Also to determine the terms and conditions including the size of any down payment that may be deemed applicable to the loan. In essence the credit report will compile information that gives the credit rating agency sense of how the individual managers their money. With regard to credit this will essentially summarise their payment history of credit, their use of available credit, the length of their credit history, the various types of credit they have used and whether they have continually tried to obtain different methods of credit and with what degree of success.

Credit Score – Bad Credit

Many people have what they believe to be a pall of a bad credit score which they believe reflects the ability to obtain any type of credit loan. The first thing to do is to obtain a copy of your credit report, which can easily be done either on-line or through a number of local agencies. Bear in mind that this should be free, and should not be tied to any request for money for any other service. Once you have obtained your credit report you can check it to make sure that the information in it is accurate and up-to-date. Depending upon where you live, there are normally legal requirements as to how long certain items such as bankruptcies can be included in a credit report.

This means that there is a time limit as to how long they can effect your credit score. If these items are still being included you can demand that they be removed.There are potentially other ways to improve your credit, either by way of paying off certain outstanding debts, or by managing things such as credit cards in different ways.

Credit Score – No Credit

There are certain people who simply do not have any credit history, either because they have never had any need to obtain credit cards or loans, or because they are too young to have built up any sources of credit themselves. Sometimes, in the event of an auto credit loans that will be a requirement for a cosigner to effectively guarantee the loan. This is normally a parent or a Guardian, although it could be an employer as well. This can sometimes be quite a good way of building up a degree of credit, although it also carries a high degree of risk for the cosigner themselves if the individual falls behind with payments or defaults on the loan.