credit report - Credit Score - An Introduction

Unless you are able to pay cash for all of your purchases throughout your life your credit scores are vitally important. They are the basis for every decision lenders make on whether to exend credit to you. Unfortunately, as important as these scores are to your purchasing ability, you were never given a formal education on how to manage and maintain an acceptable score. Your credit score is only as accurate as the information is is based upon. If there is inaccurate information residing in the data bases of the big three credit reporting agencies - Equifax, TransUnion and Experian - your credit scores will be inaccurate and may cause you to be declined for credit by a lender. Managing your information in your credit files will be covered in another article. Here I want to cover the origin and process of credit scoring. In 1956 Bill Fair and Earl Isaac created the Fair Isaac Corporation to help companies apply computer technology to their business challenges. In the 1980's they began using the vast amount of information in the data bases of the credit reporting agencies. This led to the creation of the FICO credit scores. These scores are the defacto standard among lending institutions. These FICO scores are used by 99% of all lenders. There are, however, other scores out there. But unless they are advertised as a FICO score you will not be seeing the same information as your lender. Be sure to always obtain your FICO scores. There are many factors that affect your credit score but the one that most often is the culprit is a credit inquiry. There several types of inquiries and some of these do not affect your credit. The are also certain entities that have permission from the Fair Credit Reporting Act to check your credit. The instant your score is ordered, it is recalculated. Therefore, if you are in the market for a major purchase it is a good idea to begin monitoring your credit reports on a regular basis. Although your scores are calculated immediatley, it can take as long as 60 days for an update to appear on your credit report. Michael V Cathey is the author of Credit Score: A Definitive Guide To Credit Scoring. He has over 20 years experience in the field of financial credit. All information contained here and in his book was derived from actual experiences. If you want an unabridged version of this article and the entire credit scoring/credit report topic unraveled, please visit http://www.credit-score-ebook.com. Article Source:http://EzineArticles.com/?expert=Mike_Cathey credit report - Protecting Yourself From Credit Card Fraud Credit card fraud has become surprisingly common nowadays. Credit card fraud can potentially cause consumers a great deal of stress and hassle. Therefore it is important to pay attention to the security features offered in your credit card deal. For example, in the case of unauthorized charges on your card, are you liable for any portion of that money? Credit card fraud protection is also increasing with credit card companies striving to contain fraud and consumers becoming more aware of the problem. There are certain steps you can take to make sure that you are protected from credit card fraud. When you apply for a credit card, make sure you look at the security and credit card fraud prevention features offered by the issuing company. Fraud protection features are important for individuals and businesses. You can protect yourself from credit card fraud by checking your monthly statements. This way you will be able to detect any unauthorized charges on your credit card. You will have to contact the credit card company to let them know. The earlier you spot such fraudulent charges, the less negative effects they will have. Many companies and banks also offer online account management where you can access your statements 24 hours a day. To protect yourself from credit card fraud you should never reply to an email message that appears to come from your credit card company or your bank. This is an omnipresent scam where fake email messages are generated to trick people into handing over their account numbers and other personal information. Also do not give personal information when you receive a phone call purportedly from your credit card company. Be sure to call them yourself or when online enter their web address to reach the issuer's Website. Try to keep your credit card with you as much as possible. When handing it to a waiter at a restraunt, be sure it is returned promptly. Keep it safe from view of others when in public so your account number stays safe. Also carry the credit card in a safe place such as in a wallet so that you do not drop it accidentally. It is important to properly dispose off statements and other documents to prevent thieves from going through your trash and stealing your identity. This is where a shredder can come in handy. If your credit card gets stolen or you find any indication of credit card fraud, you should report the problem immediately to the issuing company or bank. They usually have a fraud prevention hotline where their customers can report fraudulent activity. Small steps can help you avoid falling victim to credit card fraud. While many credit card companies offer zero or limited liability for unauthorized charges, it can be a great hassle correcting the mistakes, especially on your credit report.