Credit FAQ
What is your credit score?
Your credit score is the summary of your entire credit report information expressed as a single number. This number is calculated by evaluating the many data points (or score factors) from a credit report at each of the credit-reporting agencies. They compare this information with patterns found in past credit reports and use it to determine a credit score and identify a specific level of credit risk. This score allows lenders to know how likely it is for a person to repay a loan or to make timely credit payments. The higher the score is, the more likely that a person is going to get the credit that they apply for.
How is my credit score determined?
There are score factors that can positively and negatively affect your score. Some of the factors that are used for this purpose are listed below by how much they affect your score negatively. A few examples of these factors can include:
- Credit inquiries (how often you submit an application for credit)
- Serious credit delinquencies (how timely account payments are)
- Recently opened lines of credit (too much activity is not good)
- The average balance of your revolving credit accounts is too high
- Not enough mortgage accounts
How do US companies use credit scores?
Credit scores are one of the most-used tools by creditors, employers, insurance, and finance companies. These kinds of companies all rely on credit scores when they determine creditworthiness. A personal credit score is considered a credit snapshot that is used when companies make quick credit decisions. Creditors may also choose to get your full credit report in order to assess a more complete and detailed set of information that helps them decide on your level of risk.
Each of the credit reporting agencies in the US, weather is it Equifax, Experian, or TransUnion, also use industry-specific scores when checking a person's credit. Such industry-specific credit reports will allow lenders in these specific industries to get a better assessment of the certain factors that are often in a person's credit file. For example, a lender that is working in the automotive industry might request a score model that will more closely evaluate an individual's auto loan payment history. This score would be based on the data available with that agency, and might be different from one agency to another. Keep in mind that your credit score rating can also be different, depending on the score model that has been requested (auto, mortgage, etc.).
Can I get my own credit report?
Yes! To get your free credit report (that you are entitled to by federal law) visit annualcreditreport.com where you can request your credit report from all three credit reporting agencies. And you can do this one time every twelve months. If you would prefer daily monitoring of your credit report from all three of the credit reporting agencies, then sign up for Credit Max Pros. This service will let you to get your personal report online 24 hours each day.
How often does my credit report get updated?
It is typical for creditors to forward information to the credit reporting agencies every month. Of course, the day of the month the creditors forward the information can vary. The agencies might receive updates from one creditor on the third of every month and from a different creditor on the twentieth. That is why it is important to have access to your credit reports every day.
What is credit monitoring?
Credit monitoring is a service that continuously monitors your credit report for changes and updates, including new inquiries, missed payments, or new accounts. If you are a Credit Max Pros member, we will contact you if any new alerts appear on your credit file. Credit monitoring is also a useful tool for fighting identity theft. With Credit Max Pros, you will be notified immediately when someone attempts to open an account in your name. Without credit monitoring, a person could be at risk for someone to steal their identity or create debt in their name.
What is a credit inquiry?
A credit inquiry is when a financial company requests information that will help them better understand a person's creditworthiness. These types of companies use the elements of your credit report to help them decide how much credit they should issue to you. Some of the most common types of inquiries are when you are applying for an auto or car loan and even when you want to rent an apartment. Remember, inquiries are only made with your permission.
What kind of benefits do I receive with a Credit Max Pros membership?
When you become a Credit Max Pros member, you will receive unlimited access to your credit reports and scores. You will also get round-the clock credit monitoring and credit alerts.
How do I view my credit report & score?
Once you have completed the enrollment process, you will be automatically directed to our member dashboard. From there, you will be able to access your reports and explore the different benefits of being a Credit Max Pros member.
How can I view my credit alerts?
When you login to your member dashboard, you will see a 3-credit alerts tab. When you click on that tab, it will display the alert that you received and a notice that you should review the information.
I received a credit alert -what do I do now?
What you need to do depends on the topic and specifics of the alert. If you were to receive an alert that there is a new inquiry on your report, you will need to review a few data points before taking action. For example, if you have recently applied for credit, then the notice could possibly be explained by this action. If the inquiry was not caused by you, then you should call the company that is listed on the inquiry. These steps would be the same for any new accounts that you notice are opened in your name.