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Credit Help Information & Resources

Credit can impact every financial aspect of your life. Credit is the lifeblood of a solid financial game-plan, since it measures your financial health and also regulates your access to (and cost of) debt and credit products. Whether you are talking about credit cards, credit scores, or interest rates, you need to be on top of your credit at all times.

Your credit score affects your ability to qualify for loans, and credit cards have a significant effect on your credit, both positively and negatively. If you are not mindful of how credit works and end up with a poor credit rating — it can hurt you financially and sometimes even personally. Bills.com is here to help you learn why your credit needs to be in good shape and what steps you can take to improve and protect your credit.  Also, if  you end up in a bad financial situation, we can help you with the credit counseling and credit restoration tips you need to get back on your feet.

Bills.com has the information and resources you need to learn about credit, check and improve your credit rating, and use credit cards to your advantage so that you get all of the credit solutions you need. Here you will find credit guides, tips on how to improve your credit, and even a credit savings center to help you find credit solutions to all of your money problems. You can also search for related services such as credit reports, credit monitoring, credit counseling and even credit repair. If you are concerned about your credit, are thinking about buying a home, getting a mortgage refinance or financing a major purchase, or just want to see where your credit lies, Bills.com is the credit resource center for you.

  • Are there varying types of credit? If so, what are they?

    Yes. There are actually three general types of credit. They include:

     
    Revolving credit - A type of credit where you borrow money up to your credit limit and pay it back in one lump sum or make minimum monthly payments with interest, e.g., Visa and MasterCard.


    Charge credit - A type of credit where you borrow money up to your credit limit and are not able to make partial payments. With charge credit, you are required to pay back the full amount at the end of the month. 


    Installment credit -  Installment Credit is granted to you to make a one-time purchase. You pay back your debt within a predetermined period of time at a specified interest rate, e.g.,  mortgage payment.

  • Can I get a copy of my credit report at any time?

    By law you are entitled to one free credit report annually from the credit bureaus. This can be accessed at www.annualcreditreport.com - You can also request a free copy of your credit report if you were denied credit; however, you can only request a copy from the specific credit bureau that supplied the credit report to the creditor who denied you.

  • Does credit monitoring monitor my credit with all three bureaus?

    The specific credit monitoring service you use will determine which credit bureau is referenced in monitoring your credit. Each credit monitoring service uses only one of the three bureaus to monitor your credit; however, since the activity you are looking for affects your credit across the board, it won't matter which bureau your credit monitoring service uses. They'll still be able to identify unexpected changes or discrepancies in your credit report.

  • How do I get a copy of my credit report and is it free?

    Three major consumer credit reporting agencies, also called credit bureaus, offer credit reports:

    Equifax Experian TransUnion
    800-685-1111 888-397-3742 800-916-8800
    Equifax.com Experian.com TransUnion.com
    File a credit dispute online at Equifax File a credit dispute online at Experian File a credit dispute online at TransUnion

    The best place to get your credit report for free every year, however, is at Free Annual Credit Report. The government mandates that once annually every American can pull their credit reports.

  • How do I start establishing credit?

    The idea behind establishing credit is proving that you are a worthy borrower. This means borrowing money and maintaining a perfect payback record. Consumers desirous of establishing a good credit record should start off by applying for a credit card. The companies that monitor credit history compile information based on your payments and responsible consumers build up a good credit report by promptly paying off what they owe. However, if you do not already have established credit, some credit card companies will not approve you, this is frequently called a thin file consumer (there is not much info in their credit bureau). So another option is to apply for a secured credit. This method lessens the lender's risk by having access to some kind of guaranty from the borrower in case of default (a.k.a. collateral). One additional option to establishing credit is to have someone cosign with you. This lessens lenders' apprehension of qualifying someone with no credit. That is because if you default on the payments, they can always go to your cosigner for payment since he/she is also on the paperwork. However this is not recommended since the idea of building credit is to borrow and payback ASAP. You never want to default on your payments.  If these methods do not work, you can also apply for store cards or gas cards, which carry lower limits and are easier to be approved for.

  • I was denied a loan because of my credit! I need Credit Solutions fast!

    There are a few reasons why you might have been denied credit. If you do not have sufficient income, have been employed or residing at a residence for a very short-time, or simply a have poor credit history, lenders will tend to deny you. If you are denied because of credit, you are entitled to a copy of your credit report they referenced. At the very least, you will see what your credit score is and other possible reasons why you were denied.  Be sure to clean up inaccuracies and also do your homework so that you know what your own loan to value, debt to income and credit score is.

  • If I consolidate my debt what will debt consolidation do to my credit?

    Debt consolidation loans typically have a minimal effect on your credit. In most cases, you apply for a home refinance or debt consolidation loan and use the proceeds to pay your other debts. Although you will now have a single larger debt on your credit report, several small debts will be eliminated, lowering the credit utilization of those accounts. Other forms of debt consolidation services, including debt settlement or credit counseling will hurt your credit rating for the life of the debt resolution program, and potentially even longer.

  • What Information do credit bureaus collect about me?

    Credit bureaus collect your identification information, employment history, address, payment history, credit inquiries, and any additional public records and data.  Credit bureaus do not record or track income.

  • What is credit monitoring?

    Credit monitoring is the automated process of keeping an eye on your credit. Credit monitoring helps protect you against identity theft and monitors any changes and/or inquiries made to your credit file by alerting you within approximately 24 hours of any major changes made to your credit file.

  • Why should I pay a company to repair my bad credit?

    If you use a reliable credit repair service, everything WILL NOT reappear after a few months -- if you have been the victim of identity theft, all of the wrong information should be removed. Most reputable bad credit repair services correct your entire credit file and stick with it until all issues are resolved and cleared. Your bad credit might have a long and deep trail, so it could take time to completely clear your credit file of all issues.

  • Account Condition

    The current payment status of your account. It identifies if your account is current, past due, in collections, etc. It does not, however, indicate payment history.

  • Accounts in Good Standing

    Accounts that reflect a positive history on your credit report.  Accounts in good standing reflect favorably on your overall creditworthiness.

  • Association Code

    A code that identifies an individual's relationship to an account, such as primary, authorized user, etc.

  • Collection Agency

    A company hired by a creditor to collect a debt that it is owed.

  • Credit History

    Your credit history is a personal record of your current and  past credit accounts and how they were managed and paid. Credit history is commonly used to predict a person's likelihood of making future payments on time.

  • Credit Report

    A record of your credit accounts, including balances, credit limits, and payment history. Closed accounts continue to appear for up to ten years.

  • Credit Score

    A measure of credit worthiness. Typically, it is a gauge of a consumer\'s likelihood to default on a future credit line. FICO is the industry standard measure of a credit score, which is primarily based on payment history, debt utilization, and the amount of debt owed.

  • Credit-related Insurance

    Life, health, and/or accident insurance intended to pay the outstanding balance of debt.

  • Creditor

    Any person or organization to whom the debtor owes money or has a legal obligation.

  • Fair Isaac and Company

    Fair Isaac is the company responsible for creating the FICO score. This three digit score is created using information from your credit report and ranges from 300-850. The major credit bureaus use this score in evaluating your credit.

  • FICO Score

    Your FICO score is a mathematical equation/calculation that lenders use to evaluate the risk associated with lending you money. FICO stands for Fair Isaac Company, the company that originally created the formula.

  • Line of Credit

    A HECM option that provides access to a set amount of cash whenever needed.  Interest is only paid on any cash that has been drawn against the line of credit account.

  • Revolving Account

    A revolving account is an account issued with a maximum credit limit that does not have to be paid in full every month. The borrower usually is required to make a minimum monthly payment that is based on the  size of the balance. Most credit cards are examples of revolving accounts.

  • Universal Default Clause

    Universal Default Clause is a term and condition of your credit card agreement giving credit card companies authority to increase your interest rate when payments are missed or late and the credit card company is informed you have defaulted on other payments to other creditors. The Credit Card Act of 2009 eliminated universal default.

  • Verification

    Verification is the process of checking whether or not data in a credit report is accurate. Verification is initiated by consumers when they question information in their credit report. Credit reporting agencies are required to accept valid documentation from the consumer and eliminate information from the credit report that cannot be verified.

  • Victim Statement

    A statement that can be added to your credit report that alerts creditors that your identification has been used fraudulently to obtain credit in the past. This statement requires potential creditors to contact you personally and get a verbal confirmation from you when a credit inquiry is made. A victim statement remains on your account for seven years or until you request to have it removed.

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