Gene: to the 9 1 1 Credit Builder Podcast Show, where we're on a mission
to help you unlock the doors to your credit and financial freedom.
Join host Jean Davis and Laura Summers Davis as they embark on a
journey to decode the intricacies of credit and credit repair.
In this episode, they dive deep into the fundamental aspects of credit,
answering burning questions and shedding light on essential concepts with
expert insights and practical advice.
This podcast sets the stage for a deeper dive into the world of credit.
In this series of Unlocking Credit Mysteries, we are talking
about the fundamentals of credit and also demystifying credit.
We'll answer a hundred burning questions by breaking down the
questions into four episodes.
We are on part three or episode three.
Welcome back everyone to Unlocking Credit Mysteries.
Laura: I am Gene Davis.
And I'm Laura Summers Davis.
Today we're tackling the fundamental questions about
credit that many people have.
Let's jump right in.
Gene: I appreciated our listeners reaching out to us and asking
a lot of these questions.
So there are some good questions that they've done.
We're on number 51.
How do inquiries affect my credit score?
Laura: Inquiries, also known as hard pulls or hard hits on your credit occur
when someone checks your credit report in response to a credit application,
while each inquiry typically has a small negative impact on your scores, multiple
inquiries within a short period of time can signal higher credit risks to lenders.
What's the difference between a soft inquiry and a hard inquiry?
Gene: Soft inquiries, like those from pre approved credit
offers or background checks.
They don't impact your credit scores.
Hard inquiries, on the other hand, occur when you apply for credit and can
temporarily lower your credit scores.
Can I dispute accurate information on my credit report?
Laura: While you can dispute inaccurate, unverifiable, and untimely information,
you generally can't dispute accurate information on your credit report.
However, when those things happen, you can negotiate with creditors to
remove negative items in exchange for payment, and other things like,
Removing late payments when you've had an emergency happen in your
life, even when they are accurate.
These things can affect your scores in a negative way, so of course you should ask.
It doesn't hurt to ask when you're already at zero anyway, does it Jane?
Gene, are there different tiers for credit utilization?
Gene: Yes, there are.
The best is between one and nine percent, never to zero.
That doesn't really help you.
The next tier is ten to twenty five percent.
And then the next tier is 26 to 49 percent.
And then the next tier is 50 percent and above.
Anything above 50 percent starts to go negative.
The higher you go to having it maxed out, the worse your credit scores are.
So anything above 50 percent is bad.
Keep it always below 50 percent and there again the best is one to nine percent.
Laura: Yes, and a lot of people ask us about that one to nine percent.
What is that one percent, Jane?
That one percent is super, super important because it allows the algorithms to work
in your favor, showing that you are a better prospect when it comes to loans
and other offers that benefit your credit.
Gene: What should I do if I'm a victim of identity theft?
Laura: When you suspect identity theft, place a fraud
alert on your credit reports.
You also can review your reporting information for any unauthorized activity
or signs of concern, and then report any fraudulent accounts or activity to the
credit bureaus as well as law enforcement.
For
the best thing to do is to go to our website at 911creditbuilder.
com.
Click on the tab that says dollar credit report.
Once you have access to that information, we'd be happy to review your credit
and give you suggestions on how to contact the bureaus, as well as law
enforcement, to fix these things.
Can I build credit without a credit card, Gene?
Gene: Yes, you can build credit through alternative methods.
Like secured credit cards, credit builder loans, or becoming an authorized
user on someone else's credit account.
number 57, how long does negative information stay on my credit report?
Laura: Most negative information such as late payments, collections,
and bankruptcies can remain on your credit report for seven to ten
years depending on the type of item.
What's the difference between a credit freeze and a credit lock?
Gene: Oh, that's good.
A credit freeze restricts access to your credit report, preventing new
accounts from being opened in your name.
While a credit lock provides a similar protection, but can be more
easily lifted or managed online.
Can utility bills affect my credit score?
Laura: While utility bills typically don't directly impact your credit
scores, unpaid bills definitely do.
When they're sent to collections especially, those items can end
up on your credit report and negatively affect your scores.
how does co signing affect my credit?
Gene: Co signing for a loan makes you equally responsible for that debt.
And a missed payment or default can impact both the primary borrower
and the co signer's credit scores.
So be careful there guys.
Laura: when you're wanting to merge your credit with someone else or
wanting to benefit from someone else's credit, have them talk to us.
We'll look at their credit and we'll make sure that it's an ideal situation for you.
You definitely don't want to have their credit, should there be negative,
impactful things, hurt your credit when you're wanting to build your credit.
And you could be doing it unknowingly.
Sometimes people know what's on their credit and other times they
just assume what's on their credit.
It's best to check first since this is very, very important to your credit.
Gene: Good advice.
Can my credit score impact my job prospects?
Laura: Some employers may check credit reports as part of the hiring
process, particularly for positions involving financial responsibilities
or higher security clearances.
How do joint accounts affect my credit?
Gene: Joint accounts can impact both parties credit scores.
As activity on the account, including missed payments or
high balances, this reports on both individuals credit reports.
So be careful there again.
It's similar to cosigning, but it's not exactly the same.
Joint accounts are definitely different than cosigning.
What is the difference between a credit report and a credit score?
Laura: A credit report is a detailed, profiled record of your credit
history, while a credit score is a numerical representation of your credit
worthiness based on the information in the background on your credit report.
The background is what determines the scores.
Can I have a credit score without any credit history?
Gene: No.
You typically need some credit history.
Such as a credit card or a loan to generate a credit score.
A collection account will also generate a score, which is not good.
You don't want to have those.
How often should I check my credit reports?
Laura: It's a good idea to check your credit report from each of the three
major credit bureaus, TransUnion, Equifax, and Experian, at least once a year.
this monitors for inaccuracies or signs of identity theft, as well as lets you
know what's going on with your credit.
What factors don't affect my credit scores?
Gene: Income, race, religion, marital status, and age are not considered
in credit scoring modules and do not impact your credit score.
Can a landlord check my credit score without permission?
Laura: Landlords typically need your permission to check your credit report as
part of the rental application process.
How does moving affect my credit?
Gene: Moving Excel doesn't directly impact your credit, but changes in
address may affect the accuracy of your credit report if they're not updated with
the creditors and the credit bureaus.
Number 69.
Can I negotiate with creditors to remove negative items from my credit report?
Laura: Yes, you can negotiate with creditors to remove negative items,
especially when you're willing to pay the debt in full or settle for
less than the full amount owed.
It's very important for you to make sure what category you are
in in this department, reach out to us, 911creditbuilder.
com, so that we can advise you on what the best course of action is
when you're negotiating with creditors to remove those negative items.
When you are capable of paying the debt.
Gene, how does getting married affect my credit?
Gene: Getting married doesn't merge your credit reports or scores with your
spouse, but joint accounts or shared debt can affect both parties credit scores.
Can I inherit someone else's credit scores?
Laura: No, credit scores are individual, just like your thumbprint,
and are not transferable upon death.
It relies on your own personal.
Social security number.
That's why it's imperative when you use it for any merging
with anybody else's credit.
How do missed payments affect my credit scores?
Gene: Missed payments can have a significant negative impact on your
credit score, as payment history is one of the most influential factors
in the credit scoring modules.
don't miss a payment.
Don't be late.
Don't not become 30, 60, 90, 120 days late.
Laura: And when you are late, Hire us, we'll help you figure it out.
There may be some methods we can advise you on in disputing some of
those missed payments, especially when an emergency has happened or
you're just a little bit behind.
Gene: However, the bureaus don't care about any emergencies.
They just go off of facts.
Laura: Yes, you may have multiple credit scores from different scoring models or
versions, as well as separate scores for each of the three major credit bureaus.
And sometimes one credit bureau might not even report one of your
accounts, whereas the other two will.
Gene: That's true because it's a voluntary system and it depends on
whether or not they want to provide that information to the credit bureaus because
it does cost them money to do that.
Can my credit scores be different between the credit bureaus?
Laura: Yes, your credit scores can vary between credit bureaus due
to differences in the information reported and the scoring models used.
Gene: Just like we said before, one vendor or one company reporting may only
report it to one bureau or all three.
They don't have to report it to anyone in particular.
It's a voluntary system.
But whatever they report has to be 100 percent accurate and 100 percent
verifiable and report on time.
Do
Laura: how does declaring bankruptcy affect my credit?
Gene: Bankruptcy can have a severe and long lasting negative impact on your
credit, potentially lowering your credit scores by hundreds of points and staying
on your credit report for up to 10 years.
That's a long time, guys.
Laura: As we wrap up today's episode, we hope you've gained valuable insights into
the world of credit and credit repair.
Remember, knowledge is power, and by understanding the factors that
influence your credit, You can take control of your financial future.
Join us next time as we continue our journey through the realm of
credit, answering more of your burning questions and providing
expert guidance along the way.
Until then, stay informed, stay empowered, and remember your credit journey
starts here with 9 1 1 Credit Builder.
Thanks for tuning in!