Steps You Should Take in Debt Management

Due to the fact that they really feel that they can well manage on their own, a number of people usually tend to neglect the great debt administration insight professionals can provide. These individuals are those that have the propensity to make inadequate decisions that could in fact aggravate their monetary issues.

Debt administration is merely the ways lowering your debt through handling your possessions and working out matters with financial institutions. It includes financial obligation management strategies wherein you pay set funds each month to specified accounts. The money is then used by the financial obligation management company to settle your bills.

In selecting a debt management service provider, you ought to consider different aspects. Enumerated here are tips on the best ways to choose a firm that might bring you closer to monetary comfort and ultimately debt freedom.

The Story Not Told by Your Credit Report, the 3 Bureaus, and Score

Your credit report, 3 bureaus, and score don’t contain your entire financial picture, though it does contain a big chunk of it. However, when creditors pull your report for lending decisions, there are some things they’re not going to see. Since credit scores are just a numerical representation of the credit report information, your scores are not influenced by these factors either.

Salary Information and Employment Status

Salary information used to be listed on credit reports, but that practice was abandoned in the 90′s. Collecting the information was rather speculative since it came from consumers, and there are far too many factors that can change a salary over the course of a year. In addition, salaries are not a measure of credit worthiness. They are a measure of an individual’s capacity to repay a loan. Employment status is also never listed on a credit report, although employment information such as last known employer, can be listed, depending on which of the 3 credit bureaus the report is pulled from. If you were laid off or fired from a job, that information will not be made available to prospective lenders.

Certain Criminal Activities

If you have a criminal record, for the most part, that information is not going to make its way on to your credit report. It has no bearing on whether or not you can repay your debts, so there is no need for it to be on your report. There are a few exceptions to this, however. Any liens – such as tax liens – that involve the court will show up as they are also public record, child support payments can show up as regular debt, and if you ever received a fine or ticket that went to collections, that will show up on your report, as well.

Your Net Worth

A credit report is essentially a list of your current and past debts, while a credit score is a numerical representation of that report. Your net worth is composed of assets you own outright, such as bank accounts, certificates of deposit, certain investments, and any property that does not have a lien against it. This information usually surprises people because most consumers believe that their net worth will make a lender more likely to lend to them. However, just as salary is not an indicator of credit worthiness, neither is your net worth. It is a tool to determine capacity. Credit reports, credit bureaus, and credit scores contain a lot of information about a person. It can often feel like your credit report is spying on you, and it can certainly make you nervous when applying for credit. However, there are pieces of your life that are not found in your credit report, and knowing this can both put your mind at ease, and help you better understand what a credit report does for you. Keep up with your credit worthiness through credit monitoring from CreditReport123 by visiting us at

How to Use Your 3 Bureau Credit Reports and Scores to Rebuild Credit

Rebuilding credit can be a very time-consuming and arduous task. However, you can use your 3 bureau credit reports and scores to assist in this process. There are three specific tips to get you started on this task, and by having your credit reports and scores handy, you will know exactly where you stand, and how to move forward.

Tip # 1: Plan a Date Night with Your Credit

Although that probably doesn’t sound like an ideal evening to anyone, it is important to schedule time to review your finances at least once a month. This is especially important when you’re working to rebuild your credit. If you have not looked at your credit report or scores in some time, you have no idea where to begin with your repairs. The best way to do this monthly is to invest in a credit monitoring service, but you can also do this yourself if you prefer. Simply pull your credit report and review it for accuracy. Make sure your personal information is correct and that all of your creditors are current and accurate.

Tip # 2: Watch Out for Double Dipping on Your Credit Report

Credit reports only maintain information for a certain period of time. For instance, late payments, collection accounts, and charge-offs typically fall off your credit report after seven years from the date posted. However, collection agencies still try to collect their money before it falls off your credit report. As a result, they may sell the debt to another collection agency to get their money, and then keep it on your credit report. The trouble with that is that usually the first collection agency is not removed from your credit report, so the debt and the number of collectors stating you owe them money has doubled. There are reported horror stories where a few credit card debts turned into double-digit numbers of collection accounts. That is a serious drain on your credit score, and should be looked into immediately.

Tip # 3: Dispute Errors Right Away

Once you actually sit down and review your credit reports and scores, you might find errors on the report. Those errors cause your credit score to drop, and make your credit history worse than it really is, so it’s in your best interest to resolve them as soon as possible. The best way to do that is to report them to all three major credit bureaus immediately. There are two ways to do that: online and via written letter. Each of the credit bureaus has its own online dispute form that you can fill out, or if you prefer, you can write them a letter. However, you will have to dispute the error with each credit bureau individually because they do not share information regarding disputes amongst each other. By following these three actionable steps, you can begin to repair your credit and build good habits for future maintenance of that credit. Many people shy away from their credit reports and scores when they know the numbers look grim, but by facing those numbers and knowing what is on your credit report, you are able to repair the damage and rebuild your credit rating. For credit monitoring services to help you rebuild your credit, visit CreditReport123 at

How do You Read Your Credit Report and Scores?

Ordering your credit report and scores from all three credit reporting bureaus will give you a clear picture of your creditworthiness. It is simple to get a single report that contains all of the information that each credit reporting bureau in the United States has. The information is in an easy-to-read format so you can check your credit history at a glance, but you need to know how to read your credit reports and what key things you should be on the lookout for.

Check Your Credit Score

When you order a credit report and scores, the first and most important thing to look at is your credit score. Your credit score is a three digit number that generally ranges between the low 300s and the mid-800s. Each of the different credit reporting agencies will give you a slightly different score, so you’ll need to order all credit reports and scores to see the different grades you have. Many lenders look only at your score, and not at all of the additional information contained in your report, so this score is essential to pay attention to. A score above 720 is considered excellent, while a score below around 620 is usually considered a bad score that will make borrowing money more expensive and more difficult. Check your scores to find out if you have room for improvement or if you are a good credit risk.

Check Your Account History

Once you have checked your credit score, you need to take a look at the rest of the credit reports. The reports contain all of the details about both open and closed credit accounts. There is information about what accounts you have, how much credit is available to you, how much credit you used, whether you have paid on time or not, and whether you have judgments against you. All of this information is used to determine your score, so take a careful look to see if there are any mistakes or inaccuracies that you need to have corrected. Understand How Your Credit Report and Scores Affect You It is also important to understand how your reports and scores affect you. A high score can make it easy to borrow money and allow you to get the most favorable rates. A low score may force you to turn to subprime lenders. You can raise your score by paying down debt and making all of your payments on time, and you should track your credit report and scores carefully as you make efforts to pay down debt to see how your score changes. CreditReport123 allows you to regularly check your credit report and scores so you can monitor how your score changes over time.