credit reports

[pianistimo]

as many financial experts tell you, it's a good idea to keep on top of your credit report before you apply for loans (since a good report gives you the best interest rate).  here are the main three credit reporting co's in the usa:

equifax
po box 740256
atlanta, georgia  30374
www.equifax.com
1 800 685-1111

experian
po box 9595
allen, texas  75013
www.experian.com
1 888 397 3742

trans union
po box 2000
chester, pa  19022
www.transunion.com
1 800 888-4213

we went on consumer credit counselling and were assured that after the program our credit report would be restored.  well, after paying off all our debts, the report was still showing 'deliquency?'  so, i found out that not only do you pay off your debts, but you must write each of the three for a report and file a dipute form.  they have a certain number of days to prove what they say is correct - and if it is not - then they are supposed to remove it.  i'm in the process of this right now - and am hoping that it will clear our credit report and put it in the excellent category instead of good.  believe it or not, you have to have excellent to qualify just for the going interest rate (which is still high, imo, compared to a few years ago).

*question to those that are financial people:  who has a legal right to look at your credit report - and how can you limit the number of inquiries if you feel that it is way off (in terms of recent purchases).  we only bought one bed (large purchase) in the last year.  why would someone be looking so frequently at our report if we are not purchasing.  can you have the local store asking for your report for an item for $20.-50.  - and why would that be if they get paid and you have suitable income for your credit?  basically i want to know how to control the number of inquiries.  obviously it's not from buying large items only.  very curious about this.

second question:  are there any good books to read about what is going on with financial dealings today and how to stay on top of things like your credit report.  suze orman comes to mind -but haven't read her books yet.  i did glean some info from loan counselor, that the program 'quicken' allows you to download info from your bank account and credit cards directly to the program so you don't have to type everything by hand twice.  am starting this soon - so we will know what's there from day to day (since bank balances can be deceiving to one or the other of us).  usually i pay the bills, so i write the correct balance in the checkbook - but the atm might not show a bill that's not yet cashed.  quicken is a 'must have' to me now - and highly adviseable to young people just starting out as a way to control finances and budget spending.

**something else i learned was that with home equity lines of credit, they can make a 'balloon' payment after the 15 years that you might not read in the fine lines.  this can put your home at risk of foreclosure if you can't come up with the rest of payment.  we declined to accept the loan because we realized even for a smaller loan, it's not worth risking foreclosure should something unexpected happen.  better to work more- and pay by cash - and/or just take out a loan (not connected to home equity) that you qualify for (we like fixed rate over 25-30 years so the payment is low).

[thalbergmad]

I don't apply for loans coz i is stinkin rich.

[BoliverAllmon]

I heard that the more your credit is looked at, the lower your rating will go. That is why car salesmen want to check your rating immediatly before looking at the cars. It makes them moremoney.

[ahinton]

I don't apply for loans coz i is stinkin rich.

Then you'll be able to buy LOTS of Sorabji scores and not even notice the cost...

Best,

Alistair

[thalbergmad]

Then you'll be able to buy LOTS of Sorabji scores and not even notice the cost...

Best,

Alistair

Not dat Rich.

[Torp]

we went on consumer credit counselling and were assured that after the program our credit report would be restored.  well, after paying off all our debts, the report was still showing 'deliquency?' 

Yes, getting your credit reports cleared up can take a while.  But it can be done.

*question to those that are financial people:  who has a legal right to look at your credit report - and how can you limit the number of inquiries if you feel that it is way off (in terms of recent purchases). 

The answer to your question is inside your question.  It is a legal question, not a financial question.  Start with the credit agencies you listed and find out from them.  They have to live by the rules, they should be able to discuss them with you.

...the program 'quicken' allows you to download info from your bank account and credit cards directly to the program so you don't have to type everything by hand twice.  am starting this soon - so we will know what's there from day to day (since bank balances can be deceiving to one or the other of us).  usually i pay the bills, so i write the correct balance in the checkbook - but the atm might not show a bill that's not yet cashed.  quicken is a 'must have' to me now - and highly adviseable to young people just starting out as a way to control finances and budget spending.

If you currently are unable to comprehend that timing differences exist between what the bank shows for a balance and what your checkbook shows for a balance, Quicken will not solve this problem for you.  In fact, it will probably create more confusion for you.  Quicken is a useful program.  However, it only does electronically what you should be able to do manually.

**something else i learned was that with home equity lines of credit, they can make a 'balloon' payment after the 15 years that you might not read in the fine lines.  this can put your home at risk of foreclosure if you can't come up with the rest of payment.  we declined to accept the loan because we realized even for a smaller loan, it's not worth risking foreclosure should something unexpected happen.  better to work more- and pay by cash - and/or just take out a loan (not connected to home equity) that you qualify for (we like fixed rate over 25-30 years so the payment is low).

Typically a Home Equity Line of Credit would be in a secondary position to any first mortgage that you had on your house.  The ability to foreclose on a property owner from a secondary position is pretty limited.  Unless your 1st mortgage holder is willing to relinquish their position regarding your house as collateral (not likely) then the 2nd mortgage holder would have to go around the 1st bank (again not likely).

This will sound harsh, but, if you're having difficulty reconciling between your checkbook and the bank balance then any discussion about long-term financing will probably be lost.

Word of advice...keep a running balance of your checking account just like your accustomed to doing.  Believe that balance.  Going to an atm to find out your balance is ludicrous.  It only tells you the balance the bank knows about.  If your bank account shows $10k as a balance and you've written $10k in checks, how much money do you really have?  Sure as hell not $10k!!

Do not make the bank responsible for you balance.  You need to be responsible for it.

Jef

[pianistimo]

agreed, torp.  my husband is one sometimes looking at the atm balance, but i am pretty definitavely in the checkbook balance and ask about atm withdrawls so i can write them in.  being a pianist, too, makes me sort of 'perfectionistic' when i have time to be.  thankfully, my husband is that way about taxes, but everyday stuff is  just not as important - so we have to 'connect' to find out what each other has spent that day.  (or saved)  *much better to tell your husband how much you saved.  i'm the one that usually pays out the monthly bills (and hides the bag of clothes in the closet ).  we equalize the spending on off months - as he likes magazines and computer stuff.  i have to buy his clothes or he would never have any except old ones.

[contrapunctus]

I don't understand why people go into debt (except for the house), I don't like the idea of spending money you don't have.   

A N/A on your credit report is better than an 860. It shows that you don't go into debt.

Your credit report score is merely an "I love debt score".

[pianistimo]

well, when you have a family, it's a little bit different sometimes.  although i agree in general about buying what you can afford.  for us, i feel that our biggest spending is on eating out sometimes too much.  i've been trying to cook more.

we always run at least one car into the ground.  for instance i think our 'second car' is way over 250,000 miles now.  it's almost unsafe to drive, but i only drive it to the store and to get the kids to school.  if i want to drive the only other vehicle - i drive my hubby to work and then use the van.  anyway, car maintenence (which is pretty much necessary) can add up quickly.  just new tires alone.

and, children get sick.  health insurance covers hospitalization/medication - but u still have to pay the premiums and take 'sick days.'  for me, i found it just easier to stay home with my kids (i have three) than pay a babysitter.  if anyone knows how much babysitters/or preschools were nowdays they'd fall over backwards  (unless you get one that is not as watchful of the little ones - or just plain cheap - or you luck out and find a private babysitter to come to your home and they are RELIABLE).  plus, for me, i like being with my kids.

another expense is of course dental.  one dental emergency and even the co-pay is something that goes on the credit card sometimes.  the best thing, imo, contrapunctus, is for guys to wait until they're like 30 to get married.  once you are married and have children there are a lot of expenses that you don't have as a single guy.  we have two daughters - and so with the 10 year old - a trip to the mall doesn't mean the same thing anymore.  it means 'can i get a shirt - or maybe a couple of them - or a pair of jeans'  i'm outgrowing the ones i have.  how can you argue with outgrowing? *sprinkles shrinking powder on children at night.  and, of course the little one thinks it's unfair if she doesn't get something, too.  (she has too many stuffed animals, admitted).

probably the only way to save for us is to never go outside the house - to the mall or store with the kids.  but, then they complain - so we go from saving - to spending - to saving. it's a cycle.  i used to try to grocery shop this way (6AM - no kids) - but i'm not that energetic anymore.  emergency rooms are another thing that can get you.  each one of us has been in them.  in fact, i got the treatment when i broke my leg and got the ambulance ride, too.

thankfully, my husband makes good money - but staying on top of what you make (no matter the income) is really a good idea.  being organized and finding paperwork is another good idea.  you just have to set up as system and stick to it.  whatever works for you.  some money management software lets you see a sort of 'pie' that breaks up your spending into categories.  then you know which ones to go after (if you don't alreadY).  i do talk with my children, too, about what is affordable and a need vs. want.