Facts You Should Know

Payment history on your credit file is supplied by credit grantors with whom you have credit.  This includes both open accounts and accounts that have already been closed.

Payment in full does not remove your payment history.  The length of time information remains in your credit file is shown below:

Credit Accounts - Accounts paid as agreed remain for up to 10 years; accounts not paid as agreed remain for 7 years.
Collection Accounts - Remain for 7 years (the time periods listed above are measured from the date in your credit file schown in the "date of last activity" field accompanying the prticular credit or collection account.
Courthouse Records - Remain for 7 years from the date filed, except:   

      Bankruptcy - Chapter 7 & 11 remain 10 years from the date filed. 
      Bankruptcy- Chapters 13 non-dismissed or non-discharged remain 10 years from the date filed. 
      Unpaid tax liens remain indefinitely. 
      Paid tax liens remain for up to 7 years from the date released.

A divorce decree does not supercede an original contract with a creditor and does not release you from legal responsibility on any accounts.  You must contact each creditor individually and seek their legal binding release of your obligation.  Only after that release can your credit history be updated accordingly.

There may appear to be duplicate accounts reporting in your credit file.  Please review it carefully as some credit grantors issue both revolving and installment accounts using similar account numbers.

The balance reported is the balance on the date the source reported the information. Credit grantors supply information on a periodic basis, so the balance shown may not be the balance you known it is today.  If the balance reported was correct as of the date reported, it is not necessary to investigate the balance on that account.

Credit Scoring Highlights: (2yr Window) 

By definition, a credit score is a mathematical model that evaluates many types of information in a credit file.  It indicates the likelihood that a person will make payments on time.  The higher the score, the less the risk.

1. Various factors determine a credit score. See below
2. Each factor carries a certain percentage that determines a credit score.
3. Credit scores vary from industry to industry - Each have their own criteria.  This is based on the mortgage industry model to calculate your credit score.
   
   35% Based on Payment History - Recent Delinquency, Frequency, Severity.
   30% Revolving Debt Ratio - Credit cards/Department Stores (Balance 33% of Credit Limit)
   15% Credit History - Number of Credit Cards / Length of time opened.
   10% Inquiries - 7 to 10 inquiriesfor that 12 month period permitted.
   10% Types of Credit Trades - A mix of types of trade is a positive factor. (Mortgage, Auto loans, credit cards)

The Credit Do's and Dont's

DO

1. Know your credit facts and consumer rights
2. Pay bills on time!!
3. Keep balances on credit cards under 33%
4. Watch inquiries - excessive inquiries diminish rating (loan shopping)
5. Ask creditor for 1 time courtesy to remove late date
6. Negotiate collections beginning at 30%

DO NOT 

1. Do not borrow from High Risk finance companies 
2. Do not close revolving accounts
3. Do not pay off old collections before pulling credit
4. Do not open any new credit before a new loan
5. Open small equity lines