CREDIT » Credit Scores & Reports

Disputing a bad item on your credit report can be very gratifying since you know it will eventually be removed. However, the question is: how long will it take? You probably have already been briefed that if you want a legitimate debt to be removed, it can take 7-10 years depending on what that debt is. Removing a bad debt is a little bit different.

What is Considered a Bad Debt On a Credit Report?

Identity theft. You’re hearing the words more and more, on TV and especially online. And there’s good reason. Identity theft is among the largest growing crimes in the world, and it costs consumers millions per year. Here are some facts about identity theft and how you can prevent it from happening to you.

Don’t miss out on all the info. Check out the fullsize graphic.

In an effort to help individuals identified as unbanked and underbanked open savings accounts, a new pilot program was created by the FDIC. The program will be identified by participating banking institutions as the FDIC Model Safe Accounts Template and will offer safe, low-cost transactional and savings accounts to lower-income households.

Some products to be offered include specific electronic deposit accounts that may not charge fees for insufficient funds or overdrafts. The hope with this new program is that in addition to good savings account rates, customers will have an opportunity to build credit and work toward financial security (Loan Safe).

With all the recent changes in the banking and credit card industries, you’re bound to get more than a few e-mails or letters from your bank or credit card company.

But, wait. Was that last e-mail really from your bank?

It might have been, but there’s a pretty good chance it might not have been. Phishing is a pretty common practice for those trying to steal your identity. All they need is you username and password, and off they go, taking all your private financial information with them. Phishing is serious and you’ve probably been targeted whether you realize it or not.

Check out some pretty surprising phishing stats below:

Ryan Guina is an entrepreneur and writer. He has worked for Fortune 500 companies and served six years in the USAF. He writes about money management and small business topics at Cash Money Life and military money topics at The Military Wallet. You can follow his twitter feed.

Your credit report includes very important documentation of your credit history, which is used by lenders to assess risk as well as employers and other agencies which have a vested interest in how well you manage your credit and finances. For this reason, it is imperative each consumer not only take the necessary steps to improve their credit management but also to remain abreast of the information reported to the credit bureaus.

The FICO(R) 8 Score, according to FICO, is becoming a popular choice for consumer credit risk assessment among banks and financial institutions. Being used by over 2,500 so far, this score is a way to determine the risk involved in taking on a customer.

A recent report from a major U.S. bankcard issuer says its use has helped it produce more profits because it has taken on fewer risky customers who are likely to default with car financing, credit cards and more. As a borrower, this means it’s good to learn more about the new FICO credit score to understand how it affects your personal credit score and opportunities for financing (Market Watch).

If someone has ever requested to pull your credit report, it’s likely that you were told that it would be a hard check or soft check, leaving you to wonder what the difference is between the two. There is a difference and it is something that should be understood before you allow someone to check your credit at all. To help you differentiate, let’s look more closely at what they are and how they can affect your credit report or credit score.

Hard Credit Check Versus Soft Credit Check

At some point, everyone learns that in order to build good credit, you must take on some debt. Paying the debt back on time ensures your score goes up and usually, credit cards are relied upon for this purpose.

A survey released by the Society for Human Resource Management found that an increasing number of employers are using credit checks to screen job applicants. Unfortunately, the credit checks are resulting in a larger number of applicants being turned down for jobs thanks to a missed payment on a mortgage loan, auto loan or credit card.

According to the survey, 60 percent of employers were using credit checks. This represents a significant increase over the 35 percent reported in 2003. With so many people suffering through the residuals of the Great Recession, experts believe employers’ timing for the use of this screening technique couldn’t be worse (CNN Money).

By Casey Bond

One of the factors that can impact your credit score negatively is too many credit inquiries. The more credit checks performed against you, such as when you apply for credit card offers or loans, the likelier it is your credit score will drop.