What if a teenager loses his wallet?

Posted by Caitlin on November 9th, 2009

The following post in our Reader Question series is an actual user submitted question.

Q: If someone who has just turned 18 and has no prior credit history loses his wallet, what can he do to prevent someone using his driver's license to open up new accounts in his name? Would it do him any good to contact the credit bureaus, or are they only an available resource for people with credit histories?

A: A credit report is not created until you open your first line of credit. And if you do not have a credit report, it is not possible to set a fraud alert. Since the young man in this particular case is now over 18, he should request his own credit reports from all three bureaus in order to confirm that no fraudulent accounts have been opened in his name. He may also find that he does, in fact, have a short but legitimate credit report already, perhaps due to a gym membership, DVD rental card, or student loan. If so, he can set fraud alerts or freeze his credit file to prevent new accounts from being opened in his name.

If he truly has no credit file whatsoever and wishes to set fraud alerts or freeze his credit, he would first need to apply for some form of credit, such as a credit card. In order to acquire his first credit card, he may need a cosigner.

However, whether or not this young man has an existing credit file, he could subscribe to a credit report monitoring or identity theft service, which would immediately alert him to any suspicious activity. You can check out our reviews, comparison charts, and frequently asked questions to learn more about credit report monitoring or identity theft protection services. You may also be interested in our Student Identity Theft Protection Guide.

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Will a reduced credit card limit hurt my credit score?

Posted by Caitlin on October 26th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: My bank is lowering my credit card limit, even though I always pay on time. Will this hurt my credit score?

A: Unfortunately, yes. Lately, many lenders have been cutting credit limits, even for consumers with high credit scores. And the ratio of the balance you carry to your available credit is an important factor in calculating your credit score. Sometimes, a credit limit is cut due to underuse, rather than failure to make payments. So if that is a concern, be sure to use your oldest credit card, or the card with the highest limit, from time to time. Depending on the limit and the balance you carry, you may also be able to offset the negative impact by paying off more of your balance. Or, if necessary, it may make sense to open a new credit account with a high limit.

See our reviews and comparison charts to learn more about credit reports and scores and credit cards.

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Why do I have different credit scores from TrueCredit and Experian?

Posted by Caitlin on October 14th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: I have a 3 score report from True Credit and one from Experian. They have totally different scores. Why would this be? I am trying to get Identity Guard but have not had success with that.

A: Your credit score is calculated based on the information in your credit report, and you have three different credit reports, one from each of the three major credit bureaus. Since some businesses choose to report to only one or two of the three bureaus, it is likely that each of your three credit reports contains slightly different data, which would result in different scores. The credit bureaus use different formulas to calculate their scores, which is another reason for variation. Your credit score also changes as new data is added to your credit report, so if you request credit reports and scores from different bureaus at different times, that would account for further variation.

The varying scores provided by the credit bureaus can help you gain an understanding of your credit health. But the vast majority of lenders rely on the FICO scoring system, created by the Fair Isaac Corporation. You have three FICO scores, one based on each of your three different credit reports.

You can purchase your TransUnion and Equifax FICO scores directly from MyFICO. MyFICO also offers a service that monitors your Equifax credit report and Equifax FICO score and alerts you to any changes. Equifax offers a similar service that provides your Equifax FICO score, but monitors all three credit reports. Identity Guard monitors all three credit reports and provides all three credit scores as calculated by the CreditXpert scoring system, which is similar but not identical to the FICO scoring system. It is not possible for consumers to access Experian FICO scores at this time.

If you are particularly interested in your FICO score, the best option would be to obtain all three credit reports and your FICO score from Equifax. Assuming that the data is consistent across all three reports, it would be fairly safe to assume that your Experian and TransUnion FICO scores will also be quite consistent with your Equifax FICO score.

However, it is important to bear in mind that the information on your credit report matters more than any individual credit score. You can't necessarily anticipate how a particular lender will choose to calculate your score, but you can ensure that the data on all three of your credit reports is positive and accurate.

To learn more about credit reports and scores, see our reviews and comparison chart.

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Reader Questions: Is there a free on line credit report service that has no trial or any other hidden fees?

Posted by Joe on June 24th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Is there a free on line credit report service that has no trial or any other hidden fees?

A: Thanks to the Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transactions (FACT) Act, you are entitled to one free credit report per twelve month period from each of the three major credit bureaus, Equifax, Experian and TransUnion. You can order your free credit reports online by visiting AnnualCreditReport.com, by calling 1-877-322-8228 or by submitting a request in writing to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Here are some tips and general information on how to get the most out of the AnnualCreditReport.com free credit report program:

• It is a good idea to stagger your requests so you get one of your three annual reports every four months. This ensures that you get credit data throughout the year, which is important because your credit file is always changing. Keep in mind that your credit file can vary greatly from bureau to bureau, so you may still miss some important changes even if you stagger your requests.
• AnnualCreditReport.com only provides your credit report and not your credit score. We suggest that you sign up for a free trial of a credit report monitoring service if you want to receive free access to your credit scores.
• AnnualCreditReport.com will not alert you if changes post to your credit report. If you want up-to-date information about how lenders view your credit file, we suggest considering a credit report monitoring service.

You can read our full review of AnnualCreditReport.com to learn more. If you are interested on learning about services that will provide you with free credit reports and free credit scores, you can read our comparison on credit report monitoring services.

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If LifeLock requests reports on my behalf, do I still get my 3 free reports per year?

Posted by Caitlin on May 7th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Each person is entitled to a free credit report from each of the 3 bureaus each year. If LifeLock requests the reports on a client's behalf, can the client also request a free report from each bureau directly in the same calendar?

A: You are entitled to a free credit report from each of the 3 credit bureaus per year. You can request these free credit reports at AnnualCreditReport.com, which is a central website sponsored by all 3 bureaus. When LifeLock requests credit reports on behalf of its clients, these reports do count toward your limit of one per bureau per year. However, when you purchase a credit report from one of the credit bureaus, or when you recieve free credit reports from credit monitoring services such as  CreditCheck Total, or other identity theft protection services such as Identity Guard, these are unrelated to your 3 free reports and do not count against that limit. If you purchase credit reports or recieve them from a credit monitoring service, you can still request 3 free reports per year from AnnualCreditReport.com.

To learn more about credit report and score services, see our reviews and comparison chart.

• I understand that I am entitled to 3 free credit reports per year. How do I get this service?
• Reader Questions: Is there a free on line credit report service that has no trial or any other hidden fees?
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Do credit reports show the drop off dates for delinquent loans?

Posted by Caitlin on April 15th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Do the credit reports from Equifax with Score Power show the approximate drop off dates for delinquent cards or loans?

A: The credit reports provided by Equifax do not indicate when negative information, such as negative accounts, accounts that have been turned over to a collection agency, or public record information, will eventually expire and be removed from your credit report. However, in general, you can expect missed credit card and loan payments to remain on your report for 7 years from the time of delinquency. An account that has been turned over to a collection agency could remain on your report for 7 to 10 years. Unpaid tax liens stay on your report indefinitely, but paid tax liens drop off after 7 years. Foreclosures stay on your report for 7 years. Bankruptcies stay on your report for 7 to 10 years.

You may also be interested in our in-depth guide on how to read, analyze and dispute your Equifax credit report. To learn more about credit monitoring services, see our reviews and comparison chart.

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Why does my credit score fluctuate?

Posted by Caitlin on April 14th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Why does my credit score fluctuate by 3-5 points from one month to the next when I have paid accounts on time, have not applied for credit, and had no collection issues with debtors?

A: There are a few other factors that impact your credit score, aside from paying your accounts on time, applying for credit, and the absence of any delinquent accounts. As you pay off your debts, your amount of available credit grows. Conversely, when you spend more than you pay off in a particular billing cycle, your available credit shrinks. Available credit is an important factor in determining your credit score. Another important factor is the length of your credit history, which, obviously, is always growing. The longer your credit history, the better your credit score will be.

It is normal for your credit score to fluctuate by a few points, and it is not cause for concern. It is far more important to keep an eye on your credit report, in order to ensure that no fraudulent accounts are being opened in your name, and that the credit bureaus are not inadvertently reporting false information about you.

To learn more about credit report and score services, see our reviews and comparison chart.

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Do the Virgin Islands use seperate credit reporting practices and bureaus?

Posted by Joe on April 9th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Do the Virgin Islands use seperate credit reporting practices and bureaus?

A: No. The U.S. Virgin Islands use the same credit reporting agencies and practices as the rest of the United States and its territories. These practices are mandated by Federal laws such as the Fair Credit Reporting Act (FCRA).

You can learn more about credit report services by visiting our credit report monitoring reviews and comparison.

• Reader Question: How do I order my free credit report?
• Reader Question: Am I entitled to a free credit report each year?
• I understand that I am entitled to 3 free credit reports per year. How do I get this service?
• Reader Questions: Is there a free on line credit report service that has no trial or any other hidden fees?
• Do my spouse and I have one credit report?

I am trying to select the best credit report monitoring service for my needs and have questions. Can I call you?

Posted by Joe on April 8th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: I am trying to select the best credit report monitoring service for my needs and have questions. Can I call you?

A: We would love to be able to address individual questions for each person who visits our website. Unfortunately, it would literally be impossible for us to do so given the many hundreds of thousands of consumers that visit our site each month. So we try to focus on having as much detailed information as possible on our website about each service.

When it comes to selecting a credit reporting service there are a couple of things to consider depending on whether your primary goal is to:

• Monitor your credit for any changes as cheaply as possible.
• Receive specific information about your current credit health (particularly if you are going to be applying for a loan in the near future).
• Have on-going access to as much information about your credit as possible.

If you are looking for a cheap way to monitoring your credit, then FreeCreditReport.com is probably your best bet. While this service only provides access to your Experian credit reports and scores (versus all three reports and scores like some other services), it does monitor your credit file at all three bureaus (Experian, Equifax and TransUnion) and alerts you as soon as any changes are posted for just $12.00 per month. This ensures that you can address any negative changes to your credit reports at the earliest possible moment.

If you are in the process of securing a loan or credit of any sort, we would suggest signing up for Equifax with Score Power. Not only does this service provide three bureau monitoring, it also gives you access to your FICO score (based off of your Equifax credit file) which is the type of credit score that most lenders use when make lending decisions. Equifax with Score Power also offers a free three bureau credit report and free FICO score when you sign up for a 30 day free trial, as well as unlimited Equifax credit reports for paying members (the service costs $14.95 per month after the free trial period).

Finally, if you want access to credit report and score data from all three credit bureaus plus three bureau credit reporting monitoring, then we would suggest Identity Guard. This service also has some great features, like free Internet security software for your PC, that will help protect your identity online and in the real world. Identity Guard offers free credit reports and scores from all three bureaus when you sign up for a 30 day free trial, then just costs $14.99 per month thereafter. You will receive all three credit reports and credit scores each quarter as a paying member.

You can learn more about these services and others by visiting our comparison and reviews of credit report monitoring services.

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Can I print my credit report?

Posted by Caitlin on March 19th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Can the Equifax report be printed? About how many pages will it be? I have an ink jet printer and am worried about running out of ink. Can it be saved as a PDF or other printable document, and emailed to a friend for printing on another (office laser) better printer?

A: Yes, any credit report can be printed. The length will vary depending on your personal information and the format of the particular credit report, but you can probably expect it to be somewhere around 10-20 pages. The easiest way to print it from a different computer would be to go to log into the Equifax member center on that computer and access your credit report from there.

However, most credit reports, including those provided by Equifax, are designed to be viewed on screen rather than printed. Unless you have been asked to provide a paper credit report in order to secure a loan, there is no real benefit to printing one out. And if you do provide a paper credit report to a lender, you should be mindful of the risks involved in circulating a document containing so much sensitive personal information.

To learn more about Equifax and other credit report services, see our reviews and comparison chart.

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