Q:  How long does debt stay on your credit report?

A: According to the FTC's Fair Credit Reporting act, most negative credit information will stay on your credit report for 7.5 years (7 years + 180 days) from the date of delinquency.  It can be a bit confusing, but the jist of it is that the 7 year time clock starts 180 days from the first missed payment, which brings the entire period up to 7.5 years.  The exact quote is:

"The 7-year period shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action."

As with most legalese, there are some exceptions to this guideline.  The following items will remain on your credit report for the time period indicated.

1. Bankruptcy information: 10 years from the date of filing.
2. Civil suits, civil judgments, and records of arrest: 7 years or until the statute of limitations runs out.
3. Tax Liens: 7 years from the date they were paid
4. Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limitation.
5. Information reported because of an application for a job with a salary of $75,000 or more has no time limitation.
6. Information reported because of a credit transaction involving a principal amount of $150,000 or more has no time limitation

By law, everyone is entitled to one credit report per year from each of the three credit bureaus, which you can get for free at www.annualcreditreport.com. Although this is a nice service, it only lets you know what your credit history is like at that point in time – it doesn't protect or monitor your credit report on a daily basis. Negative information can appear on your credit report at any time and you will suffer the consequences unless you are notified and can act immediately. Additionally, you can't get your credit score for free. Because of this we recommend subscribing to a credit report monitoring service like our top reviewed Identity Guard.

Q:  Does Credit Report Monitoring include more than one credit card?

A. Yes, it does.  Credit Report Monitoring keeps tabs on any changes to your personal credit report.  Your credit report covers your entire credit history, which includes all credit cards, loans and any type of credit account you open.  It also includes public record data such as bankruptcy information, unpaid tax liens, and past due child support.

Basically, credit report monitoring is a convenient and practical way of making sure your credit history is only affected by changes YOU make.  It helps to protect you from identity theft, and some services even go a step further and provide tools to help you improve your credit score.  Our top reviewed pick is Identity Guard, because it goes beyond other services by monitoring public records for any changes in your name and checking the Internet's black market for any use of your credit cards or other personal information.

If you're interested in your current credit report score, many of our credit report monitoring service (including Identity Guard) offer a free trial. You can sign up  to see your score for free and then cancel later at no charge.  However, we do recommend you keep the service because we feel it offers real-time monitoring that is almost impossible to achieve on your own and protects you from damage to your credit history over time.

Q:  What is the best way to do a credit check on a prospective tenant?

A: Every experienced landlord or property manager knows that it makes good financial sense to run a credit report on prospective tenants.  This simple step can save you time and money in the long run, but it's surprising how many landlords don't get this information prior to renting their property.  With the explosion of internet commerce, it's easier than ever to get this information quickly and securely online.

Experian offers two options to check a tenant's credit and is very reasonable in price.   There are also a number of other companies out there that provide credit checks for prospective tenants.  You can do a simple Google search on a phrase like "tenant credit report" to find them.

Q:   I don't have a credit or debit card. How can I still get a free credit report?

A: Contrary to popular opinion, you don't need a credit or debit card to get a free credit report.  In fact, your credit report contains more data than just credit card information.  A credit report is a record of all your credit activities, including both credit-card accounts and loans.   If you have ever taken out a car loan or mortgage, this information will be on there.  It also shows if any action has been taken against you because of unpaid bills. This information is obtained mainly from lenders, creditors, insurers, employers and other institutions with which you may have a financial relationship. Any company that issues you any type of loan (such as a mortgage or car loan) or a credit card reports to at least one and often all three credit bureaus each month.

You are entitled to one credit report per year from each of the three credit bureaus, which you can get for free at www.annualcreditreport.com, without a credit card. While getting one report from each bureau once a year is nice, we don't believe it is all that useful. Negative information getting posted to your report or identity theft can happen at any time and you will suffer the consequences unless you are notified and can act immediately. There is no way to get your credit score for free.

If you wish to purchase a credit report or subscribe to a credit monitoring service such as Identity Guard, you will generally need either a credit card or debit card. Using debit cards to make purchases online is riskier, though, since the money is coming directly out of your account. If you plan on making any purchases over the Internet, having a credit card is essential.

Q: I tried to sign up for your 3-in-1 credit monitoring with FICO score, $14.95 per month, but the application asked for a promotion code, but in all the information describing the promotion, there was no promotion code that I could find.

A: Assuming that you are referring to our Equifax w/Score Power offer, there is no promotional code required. You should be able to access the $14.95/mo deal and free 30-day trial simply by clicking any link on NextAdvisor.com, without the need for a code. I'm not sure why the application would ask for a code, but it may have been an error on the Equifax landing page. I would suggest that you try clicking through again to see if you are offered the $14.95/mo price and free 30-day trial without entering a code.

To learn more about Equifax w/Score Power and other credit report monitoring services, see our reviews and comparison chart.

Q: When looking at your credit report, is there a way of prioritizing which areas to work on? E.g., if you have credit card debt, are working on paying an offer and compromise with the government, is there a reference to how much your credit score will change upon making payments or finalizing agreements? By that I mean is there a scale of values that a reporting agency like Equifax would use to grade your adjustments? If so, how does one find the "rulebook," so to speak?

A: There are several different algorithms used to calculate credit scores, and those formulas are rarely if ever made available to the public. The most commonly used score is the FICO score, and the exact method for calculating this score is closely guarded by the Fair Isaac Corporation. However, we do have a rough idea of how the various items in your credit report are prioritized by FICO and similar credit score formulas.

35% of your score is based on payment history. Late payments, bills that have been sent out for collection, and bankruptcies will have the most significant impact on your score. Negative items that occurred recently are the worst for your score.

30% of your score is based on the amount of debt you owe in proportion to your available credit. If you have unpaid loans or carry high balances on credit cards, this will lower your score. Credit cards with high limits and low balances will improve your score.

15% of your score is based on the length of your credit history. The longer you've had some form of credit, the higher your score will be. This means that canceling your oldest credit cards will hurt your score.

10% of your score is based on new credit and hard inquiries of your credit report. If you recently opened many new credit accounts, this will temporarily lower your score. However, multiple hard inquiries within a short period of time will be counted as one, so you won't be penalized for shopping around for a loan.

10% of your score is based on the diversity of your credit. If you have multiple types of credit, such as credit cards and loans, this will improve your score.

The importance of any one particular factor will vary depending on your overall credit history. Some credit monitoring services, including Equifax Credit Watch Gold 3-in-1 Monitoring Plus Score Power and myFICO Score Watch, provide score simulators that predict how your score would change if you took certain actions, such as paying off certain loans or cancelling a credit card. These services also include a full explanation of the factors affecting your credit score.

To learn more about Equifax Credit Watch Gold 3-in-1 Monitoring Plus Score Power, myFICO Score Watch, and other credit monitoring services, see our reviews and comparison chart. You may also find our FAQ helpful.

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.

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.

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.

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.