How do I maintain good credit?

How much equity do I have?

Will a new loan help me improve my credit rating?

How do I get errors on my report corrected?

I've paid off an account and it still shows a balance on my credit report. Why?

How long does negative credit information stay on my credit report?

How do I maintain good credit?

If you have ever borrowed money for a loan, or have any credit cards, chances are you have a credit file.

If you have made payments on time and these are creditors who report to the bureaus, you probably have good credit.

If your bill(s) have gone to collection, you have declared bankruptcy or liens have been filed against you, you probably don't have good credit.

To be sure check your credit at least once a year!

How much equity do I have?

On average, a home will appreciate in value around 3% per year. Some areas may appreciate at a higher or lower rate than this. Homes can even depreciate (go down in value). Homes which have recently been sold in your area will be used in comparison to your home to come up with the appraised value.

Your appraised value - the amount remaining on your loan = Equity.

If your property value has not increased, and you have paid only the amount owed per month on your mortgage and have been in the home less than 5 years, you have not built much equity. This is because most of your payment has gone towards the interest on the loan.

Making one extra payment per year towards principal will cut off as much as 7 years on a 30-year mortgage!

Will a new loan help me improve my credit rating?

Have interest rates been lowered significantly since your original mortgage was taken out. (-1%).

Has your income grown? This would allow you to qualify for a higher payment and shorter term.

Has your credit situation changed for the better allowing you to refinance at a lower rate? If in the past you had late payments, or a bankruptcy this could have affected the rate at which you borrowed money. If you have made payments on time, your credit report will look better and it may lower your rate.

Have you built substantial equity over the years, but do you have excessive credit card or personal loan debts? A refinance or a home equity loan may help to lower the rate and/or payment on high interest debt.

How do I get errors on my report corrected?

If you see an error on your report, report it to the credit bureaus. You will need to contact all three bureaus.

Write to them and include your name, social security, the account number/name in question and tell them you are disputing the item.
They have 30 days to verify the information or remove it.

I've paid off an account and it still shows a balance on my credit report. Why?

Most credit-issuing companies report data to the credit bureaus on a monthly basis. Due to the time necessary to properly gather and report this data to the credit-reporting agencies, it is possible that these updates may take additional time to reflect on your Credit Report. If you do not see the updated information on your current Credit Report, you may wish to request another copy from the bureau within the next 30 to 60 days following the request of your original report and check for the updated information. Our credit experts at 1-888-213-8652 will help you do this.

How long does negative credit information stay on my credit report?

In accordance with the Fair Credit Reporting Act (FCRA), the statute of limitations for reporting of negative or derogatory information is as follows:

• Bankruptcies: Will be reported for 10 years from the date of entry for relief.
  
• Suits & Judgments: May be reported for seven years from the date of entry or expiration of applicable statute of limitations, whichever is greater.
  
• Tax Liens — Paid: May be reported seven years from the date of entry.
  
• Tax Liens — Unpaid: There is no limitation on the reporting of unpaid tax liens.
  
• Collection Items: Information may be reported for seven years, beginning 180 days after the date of delinquency which immediately preceded the collection activity.
  
• Charge-offs to Profit and Loss: Information may be reported for seven years, beginning 180 days after the date of delinquency which immediately preceded the charge-off.
  
• Criminal Record Limitations: There is no limitation on reporting information on criminal convictions.
  
• Other Adverse Information: May be reported for seven years.