Christian Government Credit Report

A free Christian government credit report is available to every American citizen who has a social security number and any kind of borrowing history. Instead of having to pay about ten bucks a piece for a report from each of the three big reporting bureaus, Congress has passed the federal Fair Credit Reporting Act giving credit overview access to that dark and mysterious document that really does control many lives. A soiled borrowing report can tank a mortgage loan, an apartment rental, a chance for a car, a student loan and even a job opportunity. Experian, Equifax and Trans Union must provide the knowledge each company has about our borrowing histories which craft the actual scores we are destined to wear to every place we ever ask for a loan. Going for any loan without knowing one's FICO score is like walking into a shoe store in bare feet and trying on those ninety dollar basketball shoes without socks on. It's a recipe for getting asked to leave the store and being turned down for that loan.

If a person never cared one bit about identity theft, he ought to be concerned about where he stands on the credit food chain. A free and mandated government credit report can do that very thing. And since Americans can actually do something to raise their FICO or credit score, ramped up interest in how these scores are put together ought to be of interest to all. The equation for a FICO score is formulated by the information on a consumer's borrowing history overview. And once that equation is understood, the overview and score become less dark and mysterious.

When a consumer orders the free government credit report from each of the bureau giants and takes a look at all the information, much of it hard to understand, the temptation may be to just throw the overview away in frustration. But there are websites that can help a person make sense of the codes and language. Typing in "understanding a credit report" in one's web browser will get the user the information needed. In the meantime, finding out how the equation works is good reading until the reports arrive. "Thou shalt love the Lord thy God with all of thine heart, and with all thy soul, and with all thy might." (Deuteronomy 6:5)

Think of a FICO overview as a five legged table. Each of the legs represents part of how the final FICO score is arrived at, but some of the legs are more important than others. When a consumer's government credit report arrives, the information on that account is given various weights that affect the FICO number. The two most important pieces of information on the report are payback integrity and depth of debt. Payback integrity measures the commitment a consumer has had to paying back loans on time every month. Depth of debt measures actual money borrowed against the debt ceiling of each account.

Pay back integrity is a scan of late payments, no payments, bankruptcies and repossessions. A couple of 30 day late payments spread out over a two year span are not a big splash in the pool but one ninety day late payment is a belly flopper! Some experts even compare a ninety day late payment to a bankruptcy or a lien when describing its seriousness. Depth of debt looks at how much of the allowable borrowing power has been used in each account. Differing views can be found on what percentage of an account is a negative drag on a FICO score, but most everyone agrees that sixty percent is too high and begins to affect the bottom line number. These first two legs of the FICO equation can be easily seen on a free government credit report.

While the first two legs are worth 65% of a FICO's score, the remaining three comprise just 35%. The third leg might be called history longevity. This part of the FICO equation measures how long the consumer has used borrowed money with the reasoning that a longer history gives a better snapshot of payback integrity. The last two legs are loan types and borrowing curiosity. The loan types leg scans for the kinds of loans that a consumer has had. Just having revolving charge accounts can actually pull a score down, but if a person has successfully paid down an installment loan and a finance company loan, the government credit report score can go up. The borrowing curiosity leg counts how many times you have said yes to, "Would you like for me to run your social security number to see if you qualify?" More is definitely not better on a free government credit report.

Financial experts are quick to point out that when ordering the free reports, care should be taken to only order one each four months. Doing so will give a person a full year of coverage in monitoring their FICO account. On the other hand, if a person does not want a government credit report, there are a number of online companies that will provide a report any time one is desired by the customer. The cost is reasonable at about fifteen dollars a month. And while the reports that are provided free once a year will not include a FICO score, the online services provide scores at the bidding of the customer. For peace of mind, order the free report soon.

Christian Consumer Credit Reports

Consumer credit reports are the foundation on which every consumer in the United States that wishes to carry a credit card does business. Every revolving credit loan, every installment plan, every finance company loan is recorded and every payment, on time or late is also recorded and known in these consumer credit reports. There are three major credit reporting companies in the United States, and businesses, apartment complexes, insurance companies, banks, car rental companies and a dozen more examples use these borrowing histories to decide the integrity of each American looking for the privilege of borrowing money. Since companies cannot look into the heart of a person to ascertain whether or not he will pay back a loan, a mathematical formula comprised of a number of distinct factors will make the decision for each business. Making the initial calculations for each consumer is a formula developed by the Fair Isaac Company. Thus consumer borrowing reports are often referred to as a person's FICO score.

Each of the three companies that calculate consumer credit reports have their own small characteristically different ways of interpreting the data given to them. Experian, Equifax and Trans Union handle millions of borrowing inquiries each day and their information will quickly give thumbs up or thumbs down on whether or not a refrigerator or braces for a child or a new car or a Caribbean cruise or any of a number of other types of purchases will be possible on any given day. In a matter of seconds or a few minutes, the newly married couple in Snake Valley, New Mexico will know whether their new living room furniture will be theirs for forty eight easy payments of one hundred and four dollars. In Chicago, a young single mother struggling to find a way to work each day will know if the twelve year old used car will be hers in just three minutes. And the basis of all this and thousands of other stories is the consumer credit reports that pour out of Allen, Texas, Atlanta, Georgia and Chester, Pennsylvania.

When calculating consumer credit reports, the three major reporting bureaus use five basic factors to come with their magic numbers. The first factor is how well the consumer has handled borrowing money in the past. Every payment that is on time, early and late is calculated in the formula. The late payments are weighted in terms of thirty days late, sixty days late and so on. Of course bankruptcies, and defaults on accounts are also in the mix which would drastically bring down a FICO score. The second factor in deciding FICO scores is the current level of indebtedness. Each plastic charge card comes with a maximum amount that can be charged on that card and the Fair Isaac formula looks at the ratio between allowable indebtedness or the ceiling on each card and the actual amount charged on a card. When it comes to installment loans, these loans are maxed when first transacted, such as a car loan which is at its max at the beginning of the loan life.

These first two factors have the most weight in the FICO borrowing formula. When consumer credit reports are crafted the first factor, past history, has a weight of 35 while the indebtedness has a factor of 30. The third piece of the FICO formula is the length of time borrowed money has been used. In other words, a person who has had a twenty five year period of credit history has a much better record on which to judge credit worthiness or not than a young person just out of high school seeking her first credit card. This particular factor is given a weight of 15 in the FICO analysis. The fourth factor that goes into making up consumer credit reports is type credit that has been used. Jesus has always been clear on who is really a Christian. He said, "So likewise, whosoever he be of you that forsaketh not all that he hath, he cannot be my disciple." (Luke 14:33)

The fifth factor that makes up consumer credit reports means that all inquires for borrowed money are placed on this report and the more inquiries there are, the more the borrowing score can actually go down. Each borrowed money application that a person makes can be a sign of not being able to live on the income one has and can weaken the chance to receive more borrowed money. So let's say that a person sends away for a report from each of the reporting bureaus and sees some issues that aren't true, which actually happens a lot. And by the way, every consumer is allowed one free report each year from each of the big three, so the best plan is to get one about every four months from one of the companies, making the yearly allowance more effective. What can be done to help raise the score?

Christian consumer borrowing reports can be challenged, especially if there are inaccuracies on the report that are bringing down a person's score. Letters can be written to the reporting bureaus and explanations give for the false information on the reports. If there are compelling reasons for doing so, the bureau will remove the negative information. Issues such as accounts that are years old and should have been closed can be disputed. Additionally, old accounts that show past due payments can be made right by contacting the company and making financial restitution can help bring up a borrowing history score.

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