Sterling Credit Solutions - Who sees my credit report?

Who sees your credit report?

Your credit report is private and can only be access by yourself, someone that you have given permission to see it, for example when you apply for a loan, credit card, or to rent an apartment, or your attorney. The Fair Credit Reporting Act (FCRA) governs access to your credit report and is limited to specific situations, which are referred to as "permissible purposes." They are:

Order of a court having jurisdiction

Written instructions of the consumer

Businesses that intend to extending credit, reviewing an existing customer, and collecting a debt

For employment screening purposes

As part of the insurance underwriting process

To determine eligibility for a license granted by the government

In response to state or local child support enforcement authorities

To determine the credit risk and valuation of loans for the purposes of investing or servicing .

Some lending institutions have access to your credit report to determine if you still have good credit; these are typically credit card companies. This practice has increased with the changing economic times. Credit card companies have added terms to their agreements that will allow them to raise your credit card interest rate if you have been late making payments to other lenders. The credit card companies also look to see what your credit utilization is at and may use this information to reduce your available credit.

Some credit card and lenders will solicate credit reports to look for people to send advertizements to. When you get an offer in the mail for a credit card, it is typically due to a inquiry to your credit status. These reports do not include detailed information that is in your credit report.

Both the credit inquiry and status checks do not impact your credit score and are permissible.

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How will your change in credit card interest rates impact you?

September 1, 2011

If you happen to miss a payment on your credit card or any other loan it may impact your credit card interest rate. If you owe about $1,000 at 11% interest it will take you 73 months (6 years) to pay it off and $320 in interest. but when your credit card company increases your interest rate due to a late payment, even if the late payment is not that credit card, they can increase your rate to a penalty rate. Let's say that rate is 19.9% (some states allow up to 29.9%). It will now take you 100 months to pay off your balance (8.3 years) and $860 in interest.

It pays to pay your minimum payments on time.

FREE Credit Scores for Prospective Borrowers or NOT.

September 5, 2011

It has been just over a month since the new Federal credit score disclosure law went into effect. Lending institutions have already found loopholes to keep from disclosing your credit score when you are denied credit, loan, or if you received less desirable terms because of your score. According to SmartMoney.com there are time you may not get a credit score. These are usually when banks use their own in-house credit scoring system. There are other ways to get your credit score that will not impact your credit rating by going to MyFICO.com Click here for more information.

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