Credit Reports - News You Can Use

A Credit Article Contributed by Nithya K

Credit Reports - News You Can Really Use

People have a general unwillingness to see their credit history. A survey conducted in Canada of over 2, 000 people showed that a meager 20% checked their credit reports in the last year. Almost two-thirds of the population said they had never checked their credit.

For such people who are a bit hesitant to check their credit, many interesting developments are on the horizon.

* In Canada, Mastercard has recently launched its second annual credit report week to make the domestic population check their personal credit rating. A credit history has a major impact on anything like loan, studies, insurance premium etc. To encourage Canadians to check their credit MasterCard offered the first 10, 000 consumers a $14.99 TransUnion on-line Credit Report at no charge, by visiting the credit wise website.

* In Central Oklahoma, college students who find managing their money difficult, there is a credit counseling service made available by the Consumer credit counseling service. The organization recommends getting a merged credit report from all the three credit report bureaus to show all credit accruable to the person. This report is available for $25 with CCCS.

* In Maryland, people are entitled to one free credit report per year. Several consumer advocates are up in arms to stop identity theft and have launched a financial literacy campaign. The campaign urges all the Marylanders to take advantage of the right to get a free copy of their credit report. The attorney general noted that the local Marylanders could call the three bureaus and get their free credit reports.

Negative Credit Report Information

Federal law states and control how long negative credit report information stays in the credit history. According to the Fair credit reporting Act, negative information can be reported for 7 years and bankruptcies for 10 years. This includes late payments, accounts that a credit grantor turned over to a collection agency and judgments filed against you in court.These remain even if you have paid the account in full.

The length of the bankruptcy remains on the credit report depending on which Chapter you file under.Chapters 7, 11, and 12 remain on the credit report for 10 years, whereas Chapter 13 remains on the credit report for 7 years.

Some Common Questions about Credit Reports

Q: Is it OK to pay bills after they are due as long as you pay them within 30 days of the due date?

A: No, you might end up paying late fees which would be a total waste.

Q: Does it affect the credit score if you pay with a debit card but which says "Visa" and rings up as a credit card?

A: No, when you use debit cards with the Visa or MasterCard logo, you are just accessing your own money. Hence it is not considered a charge.

Q: Can a parent be penalized for putting a child's name on his or her credit card?

A: No, unless the child has delinquent payments. If you co-sign a credit card, whatever happens on the account, goes to your credit report too.Hence it would be advisable to get your child a secured credit card.