FICO Expansion scores use uncommon sources of financial data – including pay day loans and purchase payment plan (lease to own) performance – in order to provide a complete view of the consumer’s credit risk. Fair Isaac has selected the best commercially available data sources to power the score.

Approximately one-fourth of all adult U.S. consumers, roughly 50 million individuals, either lack credit reports entirely or have credit reports with too little information to make a good prediction of credit risk. This group includes immigrants, young adults and people who are recently divorced or widowed.

Similarities and differences between a traditional credit score and the expansion score include:

• Like traditional FICO scores, the Expansion score ranges from 300 to 850.
• The Expansion score is a credit risk score based upon non-traditional consumer credit data (in other words, not based on data from the major national credit bureaus: TransUnion, Equifax and Experian).
• The same logic behind traditional FICO scores applies, meaning that the higher the score a consumer earns the lower a risk they are to lenders.
• As with traditional credit scores, consumers turned down for credit based on the Expansion scores will be able to get a copy of their credit report, which they can challenge or take steps to improve. Up to five reason statements, provided with every score, indicate why the consumer failed to score higher, helping lenders better communicate with their customers.

Whether you have credit or not, paying bills on time, keeping your checking account in good standing and being responsible with your finances provides its own benefits to consumers.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Two types of Debit Cards

A traditional debit card is issued through your bank and requires a personal identification number, or PIN, to complete a transaction. A PIN-based or direct debit card removes a purchase price from your checking account almost immediately. These kinds of debit cards are accepted at gas stations, supermarkets and stores such as Wal-Mart, Walgreen’s and Target. A deferred debit card is also issued through your bank but bears a logo of a major credit card company. To use it you can enter a PIN or sign for the purchase as you would with a credit card. A signature-based or deferred debit card has a Visa or MasterCard logo. These cards are accepted anywhere Visa and MasterCard are accepted. Just hand the clerk your card and sign a sales slip and you’re done. The purchase amount will be removed from your bank account in two or three days. When you swipe your card through at the checkout line, you’ll be asked if you want to pay by debit or credit. If you hit “debit,” you’ll need to input your PIN number. If you hit “credit,” you’ll need to sign the sales slip.

PIN offers the best protection

Some consumer experts urge people to choose PIN-based, direct debit cards only. With a PIN-based debit card you have to know the PIN number to make a purchase. With a signature-based debit card, anyone could pick up the card and sign your name to it. It may limit the number of places you can use it. But that’s the tradeoff you make for extra security.

Return policies can vary

According to the ABA many merchants treat a debit card purchase as they would a personal check or cash. This means you may get several hundred dollars in store credit instead of a refund for debit card purchases. So as a dissatisfied debit card customer you’re pretty much stuck trying to resolve the dispute with a merchant on your own. It could go on for weeks or months and when it’s all said and done you may not get your money back. When you make a purchase with a credit card you have the option of withholding payment should you be unsatisfied with the quality of an item. This right is protected under the Fair Credit Billing Act. This federal law does not apply to debit card purchases. In summary it makes sense to use credit cards when ordering merchandise from the Internet or a catalog or for big-ticket items or expensive services. Debit cards are a great way to pay for everyday items such as gas or groceries. A debit card can also be a good money management tool if you’re diligent about recording every single transaction in your checkbook.

Fees

According to the Wall Street Journal one in five banks add a charge for each transaction completed by entering a PIN. Other fees are levied for minimum balance requirements, ATM use or even for having the debit card itself. In a 2004 report to Congress, the Board of Governors of the Federal Reserve estimates that 15% of all consumers with debit cards are subject to debit transaction fees. Therefore when you chose a debit card first find out what kind your bank offers and ask about the fees. If you chose to have overdraft protection, please refer to the overdraft protection article from DMCC for additional information.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Credit insurance assures a loan will be repaid in the event of the death, disability or involuntary unemployment of the insured borrower. It can be taken to protect all types of consumer borrowing, including loans to finance or refinance a home. These products may be sold by credit card companies, auto dealers, finance companies, department stores, furniture stores or wherever loans are made and credit extended for the purchase of personal property.

There are five principal types of credit insurance:

1. Credit Life Insurance insures that a borrower’s insured debt will be repaid if the insured borrower dies during the term of the coverage.

2. Credit Accident and Health Insurance, also known as Credit Disability Insurance, pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes disabled during the term of coverage.

3. Credit Involuntary Unemployment Insurance pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes involuntarily unemployed during the term of the coverage.

4. Credit Property Insurance pays to repair or replace personal property purchased with the loan or credit proceeds and/or serves as collateral for the credit if the property is lost, damaged or stolen. Unlike the first three credit insurance products, credit property insurance is not directly related to an event affecting a consumer’s ability to pay his/her debt.

5. Credit Card (Fraudulent Use) Insurance simply stated is protection against unauthorized use of your credit card in the event that your card is lost or stolen.

Benefits of Credit Insurance

• Credit insurance is affordable because it is based on group rates. This means that generally all consumers or borrowers who voluntarily select credit insurance pay the same rate in their state.

• The cost of Credit Life Insurance for middle aged and older consumers is generally less than term life insurance.

• Credit insurance is generally offered and written with few, if any, underwriting conditions that apply to other types of insurance.

• Consumers can generally obtain credit insurance, including credit life insurance, without the need to fill out a medical history, take a medical examination, or disclose if they are smokers.

• Federal and state laws require that consumers be told credit insurance is a choice and is not required to obtain a loan. Credit insurance is always optional.

• Consumers can get a “free look” at credit insurance by getting a full refund within a set period that usually ranges from 10-30 days. Consumers can cancel the trial at any time before the set time period and receive a prorated refund of any premiums paid.

• State laws and regulations establish credit insurance rates, which have been adjusted and regulated to protect consumers in a majority of states within the past five years.

• Credit Life and Disability Insurance rates do not rise as an individual ages. There is one rate for everyone, regardless of age or medical condition.

Do You Need This Insurance? Let us look at Credit Disability Insurance and Credit Involuntary Unemployment Insurance. Remember, these insurance plans will pay your credit card bills if you become disabled or you lose your job. These plans may be a good thing if your potential sources of income would not be enough to pay your monthly debts in the event of your disability or unemployment. However, there may be a waiting period before you receive your first benefit payment and the insurance may only pay the MINIMUM card payment each month (up to the policy coverage limit). Consequently, unless you are disabled or out of work for a very long time, the cost of the premiums could easily exceed any monthly benefits.

Likewise, insurance that will pay off card balances in the event of your death make sense only if you have a lot of credit card debt and little or no other life insurance. You might be better off insuring yourself against income loss or death by purchasing regular disability or life insurance instead of credit insurance.

Credit Property Insurance guarantees the purchased item or property value of the loan amount. For example, if you used an item that is collateral for a loan and that item was damaged, then its value as collateral may now be worthless but your obligation for the full loan amount has not changed. That is why the lender may require this insurance in order to guarantee the collateral against the loan.

Some telemarketers are aggressively selling insurance that covers the fraudulent use of your credit card. Do you really need that kind of credit card insurance? Most experts say no. Remember, Federal Law already limits your liability to the first $50 of fraud losses per account, provided you make a reasonable effort to notify the card issuer of any lost or stolen cards within a reasonable period of time. In many cases, the issuer will waive the $50 requirement. If your card issuer insists on the $50 payment, then check with the company that insures your home because your existing homeowner’s policy may cover the loss. If you are considering credit card insurance, ask yourself these questions:

• Why do you want this type of protection?

• What benefits will you gain from it and how much are you willing to pay?

Finally, make sure you are dealing with a legitimate insurance company. If you have doubts about the policy or the company, contact your state government insurance commissioner or office of consumer affairs. Never give your credit card number and information to anyone selling credit card loss protection over the telephone because you may be dealing with a con artist who could make unauthorized charges to your card.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

A secured card is a credit card that a cardholder “secures” with a deposit to ensure payment of the outstanding balance if the cardholder defaults on payment. Secured credit cards are targeted to customers with imperfect or limited credit histories who do not qualify for a traditional unsecured credit card. An unsecured credit card is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt and, therefore, have higher interest rates than other forms of lending such as mortgages that hold property as collateral.

Is Obtaining An Unsecured Credit Card Easy?

Criteria used to determine eligibility varies from card issuer to card issuer. Most banks and financial institutions will grant you credit if you meet the following requirements:

• You must be a resident of the United States.

• You must be at least 18 years of age.

• You must make at least $95 a week.

• You must have a valid Social Security number.

• You must be employed for at least 6 months.

Are All Credit Cards The Same?

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. Do you expect to pay your bills in full each month or do you plan to pay off your purchases over time? Consider the annual fee, finance charges, interest computation method, whether or not there is a grace period for purchases and cash advances or balance transfers. It is also a good idea to look at the credit limit, how widely the card is accepted, additional services and features, and the Annual Percentage Rate (APR) and finance charges.

NOTE: Most credit card plans allow the issuer to “reprice” your current APR if the account falls into poor standing or becomes delinquent. Repricing is the act of increasing the APR.

What Is An Annual Fee?

Some issuers charge an annual membership fee or participation fees. These range from $25 to as much as $100.”Gold” or “Platinum” cards sometimes reach as much as several hundred dollars. These fees may be charged whether or not you use the card.

Are There Transaction Fees And Other Charges?

A card may include other costs. Some issuers charge fees if you use the card to get a Cash Advances, make a late payment, or you exceed your Credit Limit. Often an issuer will charge a fee to transfer a balance from another creditor’s account to their account. Fees are disclosed to you in your Terms and Conditions as well as in your Account Agreement. It is important that you read these documents in order to understand your responsibilities as an account holder.

What Is Credit Card Fraud?

One way to keep fraud under control is to closely monitor your credit report. A great way to do this is with a credit monitoring service. The cost of this service can range from $20-$50 per year. They give you unlimited free copies of your credit report so you can check it whenever you need to, online Monthly Monitoring Alerts to inform you of changes, black marks, inquiries and possible credit fraud signs on your report, information to help you deal with inaccuracies in your credit report, a newsletter with tips for managing your good credit, and articles to help you stay on top of your credit.

Is It Safe To Use Credit Cards Online?

It is much safer to use your credit cards on the Internet with a secure server than calling someone and giving your credit card numbers over the phone. However, people are still somewhat leery about using their credit cards on the Internet. When you use a secure server over the Internet, the data gets scrambled or encrypted and then put back together again once it reaches its intended destination. If you give your credit card numbers over the phone it is not in cryptic form. Furthermore, most credit card companies guarantee safe shopping on the Internet so you really have nothing to lose.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Learn about the costs and rules of the card.

What is the annual fee and are there any costs in acquiring the credit card? What is the interest going to be after the initial 90-day teaser interest rate vanishes? What is your credit limit and what is the penalty if you go over the limit? How and when can your interest rate and credit limit be changed? All of this information is located in the fine print section of your credit card agreement and you have an obligation to pay these fees and costs if you accept and use your credit card. These terms and conditions come into effect as soon as you start to use the card. Below is a list of the different fees imposed by credit card companies.

The Annual Fee: Many bank and Travel & Entertainment Cards come with an annual fee of $50 or more. The borrower is charged this fee for the privilege of using this credit card. Some banks will waive this fee if you have outstanding credit or may charge more if your credit is marginal.Cash Advance Charges: A bank will charge you up to 3% of the amount advanced and at the same time charge rates of up to 20% annually on the amount advanced. As a general rule, credit cards should not be used for cash advances except in the case of an emergency.

Late Payment Fees: Many credit card companies charge late payment fees. Since the date refers to the day of receipt of your check and not the date of postage, you must be certain to get your payment out in a timely fashion to avoid this fee. Remember, this fee will be added to your outstanding balance and interest will be charged on the total amount.

Over-the-Limit Fees: If you carry high credit balances each month and do not pay them, your high credit card interest charges will accrue and could push you over your pre-approved credit limit, prompting the creditor to charge an over-the-limit fee. These fees vary by issuer. Remember, these fees will automatically be added to your existing balance, which will be charged interest.

One Time Fees: These fees are usually assessed to consumers with poor credit and are charged in addition to the annual fee. These fees are charged at the time you apply for the card and can range from $25 to $100 depending on the issuer.

Transaction Fees: These fees are charged by the issuing bank. The charge is usually 50 cents for every transaction you make with their card. Returned Check Fees: A credit card company will charge you a return check fee for checks that are returned for insufficient funds. You would also be liable to your bank for another fee for writing the bad check. Plan your finances accordingly to avoid these costly fees.

Transfer Fees: If you decide to transfer your existing balance to another credit card company, you may have to pay a transfer fee to your current credit card issuer before your balance can be transferred to the new account. These fees can range from a flat rate of up to $50 or a fixed percentage amount of the balance that is transferred. Understand these costs before you jump from one credit card to another just to get a low introductory credit card rate.

Minimum Finance Charges: Pay off your existing balances each month and, depending on your credit card issuer, you could be charged a fee for paying your balance in full.

Inactivity Fees: These are fees that are charged to your account for inactivity on your account. Not using your credit card could cost you money if this fee is in the contract you signed when you acquired this credit card.

Review your account statements and mailings from your credit card company. Immediately review these statements and confirm the charges with the receipts for all of your purchases. You should do this to challenge any charges that are incorrect and to guarantee that there are no fraudulent charges being billed to your credit card. There are federal consumer protection rules that assist you in challenging charges with your creditor. To be fully covered by these laws you must send a letter to your creditor within 60 days of the date that the bill was sent to you and document the error on your statement. If such charges continue, stop using the card and close the account.

More importantly, if you have just applied for a credit card and have been approved, you should wait until all of the paperwork arrives from the company to make sure you are fully aware of all of the terms and conditions found in the fine print. If you do not understand all of the information provided to you, talk to the customer service department and get all of your questions answered to your satisfaction before you use the card. Once you use the card, it is implied that you have agreed to all of the rules and you are automatically responsible for any fees and charges.

Keep your original card agreement and any change notices to your account. This paperwork is your contract, containing all of your terms and conditions for the use of the credit card. These are the only documents you can refer to that will help resolve a problem if a disagreement arises in the future. They will also answer the following procedural questions:

• How to notify your card company if you purchased a product with your card that is defective and the merchant is not responsive to your needs?

• What is your liability if your card has been fraudulently used?

• How are cash back awards paid out if you cancel before the expiration date?

Considering a New Credit Card?

If you are considering opening a new account you should consider asking these questions while reviewing credit card offers or re-evaluating existing cards:

• Fees: Are there annual fees, late payment fees, overdraw fees for exceeding your credit limit, cash advance fees, or fees for paying off your credit card in full each month? Be aware of transfer fees. They can be costly if you decide to transfer a balance to a new credit card. Can one fee trigger another fee? (i.e. if you are charged an annual fee and it pushes you over your credit limit can the bank charge you the over-the-limit fee?)

• Interest Charges: What is the Annual Percentage Rate (APR) on the card? Is the advertised low introductory rate going to drastically change after several months? What interest rate will you pay on transferred amounts? How will your interest be calculated: average daily balance (most common) or another system that may cost you more? Is there a different interest rate for cash advances than for other uses of the card? Can the interest rate be changed without prior notice, and if so, under what circumstances? (i.e. if you are late on a payment.)

• Grace Periods: Does the lender give you time to send in a payment before interest is charged on your account balance? If so, how long is the grace period and does it apply to new purchases versus old purchases that are still on your account? How many days before the due date will the lender give you before imposing a fee for a late payment?

• Miscellaneous: What is your credit limit and what are the restrictions on the credit card freebies such as frequent flier miles, cash rebates or other bonuses? What is the company policy on sharing or selling information about you to other companies or charities that might want to contact you? Can you ”opt out” if you do not want this information provided to anyone else?

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Addiction Help line

800-711-6402

www.addiction-help-line.com

Adult Children of Alcoholics

310-534-1815

www.adultchildren.org

AIDS Hotline

800-342-2437

www.ashastd.org

Al-Anon Family Group

757-563-1600  Alcoholics Anonymous

See local directories

www.alcoholicsanonymous.org

American Bar Association  Service Center

800-285-2221

www.abanet.org

American Society for Adolescent Psychiatry

972-613-0985

www.adolpsych.org

Americans with Disabilities Act

800-514-0301

www.usdoj.gov/crt/ada/adahom1.htm

Auto Safety Hotline

888-327-4236

www.nhtsa.dot.gov

Centers for Disease Control and Prevention

800-232-4636

www.cdc.gov

Centers for Mental Health

800-789-2647

www.mentalhealth.org

Child Abuse

800-422-4453

www.childhelp.org

Cocaine Anonymous

World Services

310-559-5833

www.ca.org

CODA (Co-dependants Anonymous)

602-277-7991

www.coda.org

Drug Abuse Resistance Education

800.223.DARE

www.dare.com

Debtors Anonymous

800-421-2383

www.debtorsanonymous.org

Domestic Abuse

800-355-8547

www.avdaonline.org

Gamblers Anonymous

888-GA-HELPS

www.gamblersanonymous.org

Girls and Boys Town

800-448-3000

www.boystown.org

Housing and Urban Development (HUD)

202-708-1112

www.hud.gov/offices/hsg

Jobs

Job search-Hot Jobs www.hotjobs.com

Job search-Monster Jobs www.monster.com

Federal Government Jobs www.usajobs.opm.gov/

MADD

877.ASK.MADD

www.madd.org

Marijuana Anonymous

800-766-6779

www.marijuana-anonymous.org

Narcotics Anonymous

818-773-9999

www.na.org

National Association of School Psychologists

866-331-NASP

www.nasponline.org

National Center for Victims of Crime

202-467-8700

www.ncvc.org

National Clearinghouse for Alcohol & Drug Info.

800-729-6686

www.health.org

National Council of Alcoholism & Drug Dependence

800-622-2255

www.ncadd.org

National Domestic Violence

800-799-7233

www.ndvh.org

National Mental Health Consumers Self Help

800-553-4539

www.mhselfhelp.org

National Drug and Alcohol Treatment Hotline

800-662-4357

www.health.org

National Hotline for Missing & Exploited Children

800-843-5678

www.missingkids.com

National Runaway Hotline

800-621-4000

www.1800runaway.org

Phoenix House (Drug Help)

800-378-4435

www.phoenixhouse.org

Rape Abuse & Incest Network Crisis Hotline

800-656-4673

www.rainn.org

Teen Help Hotline

800-355-8336

www.vpp.com/teenhelp

CREDIT BUREAUS

Equifax

800-685-1111

www.equifax.com

Experian

888-397-3742

www.experian.com

TransUnion

800-888-4213

www.transunion.com

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Three major credit reporting agencies create your credit score.  Because your credit report is an important part of many credit scoring systems, it is very important to make sure it is accurate before you submit a credit application.  To get copies of your report, contact the three major credit reporting agencies:

• Equifax – (800) 685-1111  (FICO/Beacon Score)

• Experian – (888) 397-3742  (Experian Score)

• TransUnion – (800) 916-8800  (TransUnion Score)

How Scores are Calculated

Designers of credit scoring models review a set of consumers – often over a million – who opened loans at the same time, and determine who paid their loans and who did not.  The credit profiles of the consumers who defaulted on the loans are examined to identify common variables  exhibited at the time they applied for the loans.  The designers then build statistical models that assign weights to each variable, and these variables are combined to create a credit score.

What is in a Credit Bureau Score?

The information that impacts a credit score varies depending on the score being used. Credit scores are only affected by elements in your credit report, such as:

• Number and severity of late payments

• Type, number and age of accounts

• Total debt

• Recent inquiries

If the business card/corporate card or gas card does not appear on your credit report, it will not affect your score.

What’s Not in a Credit Bureau Score?

Credit bureau-based scores, like those generated by Experian, cannot use demographics prohibited under the Equal Credit Opportunity Act, such as race, color, religion, national origin, gender, age, marital status, receipt of public assistance, or exercise of rights under the Consumer Credit Protection Act.

Why Lenders Use Credit Scores

Credit scores help lenders assess risk more fairly because they are consistent and objective.  Consumers also benefit from this method.  No matter who you are as a person, your credit score only reflects your likelihood to repay debt responsibly, based on your past credit history and current credit status.

Credit Score Factors

Score factors are the elements from your credit report that drive your credit score.  For example, such elements as your total debt, types of accounts, number of late payments and age of accounts are what determine the outcome of your credit score.  Score factors can have a positive or negative affect on your credit score.

Factors with the Most Significant Impact to a Credit Score

Paying your bills on time is the single most important contributor to a good credit score. Even if the debt you owe is a small amount, it is crucial that you make payments on time. In addition, you may want to minimize outstanding debt, avoid overextending yourself and avoid applying for credit needlessly.  Applications for credit show up as inquiries on your credit report, indicating to lenders that you may be taking on new debt.  You may want to use the credit you already have to prove your ongoing ability to manage credit responsibly.

If you do have negative information on your credit report, such as late payments, a public record item (e.g., bankruptcy), or too many inquiries, your best strategy may be to pay your bills and wait.  Time is often your best ally in improving credit.

Improving Your Credit Score

Scores reflect credit payment patterns over time with more emphasis on recent information.  In general, a score may improve if you:

• Pay your bills on time.  Delinquent payments and collections can have a major negative impact on a score.

• Keep balances low on credit cards and other “revolving credit.”  High outstanding debt can affect a score.

• Apply for and open new credit accounts only as needed.  Do not open accounts just to have a better credit mix – it probably will not raise your score.

• Pay off debt rather than move it around.  Do not close unused cards as a short-term strategy to raise your score.  Owing the same amount but having fewer open accounts may lower your score.

Also, make sure the information in your credit report is correct.  It will not affect your score to request and check your own credit report.  If you find errors, contact the consumer reporting agency and your lender.

How Long Does it Take to Rebuild a Score?

The length of time to rebuild your score after a decrease depends on the reason behind the drop in the score.  Most decreases in scores are due to the addition of a new element to your credit report such as a delinquency or an inquiry.  These new elements will continue to affect your score until they reach a certain age.  Delinquencies remain on your credit report for seven years, although some bankruptcies may remain for 10 years and unpaid tax liens remain for 15 years.  Inquiries remain on your report for two years.

What Happens if you are Denied Credit or do not get the Terms you Want?

If you are denied credit, the Equal Credit Opportunity Act requires that the creditor give you a notice telling you the specific reasons your application was rejected. You have the right to learn the reasons if you ask within 60 days.  Indefinite and vague reasons for denial are illegal, ask the creditor to be specific.

Credit scoring systems consider updated information and change over time.  Sometimes, you can be denied credit because of information from a credit report.  If so, the Fair Credit Reporting Act requires the creditor to give you the name, address, and phone number of the credit reporting agency that supplied the information.  You should contact the agency to find out what your report said.  This information is free if you request it within 60 days of being turned down for credit.  The credit reporting agency can tell you what is in your report, but only the creditor can tell you why your application was denied.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Credit Grantors (banks, finance companies, etc.) are the businesses that lend you the money. Credit Users (car dealers, mortgage brokers, etc.) use the credit report to qualify you for a loan from the Credit Grantors.

Credit Grantors are the only ones that are supposed to report the information about you in your personal credit report. However, “Instant Update,” a subscription service available to reporting agencies, makes it possible for any subscriber to report negative or unverified information about you in your credit report.

Credit bureaus are required to maintain maximum accuracy with regard to the information they report. The only time data in your credit report will be verified is if you dispute an item in the report. Once an item is disputed, it is up to the credit bureau to prove that the information is correct.

It should be noted that credit bureaus are interested in selling as many reports as possible. They know each time a consumer is denied credit, the consumer will most likely apply somewhere else and the credit bureau will be paid again for selling the same information, even if it is inaccurate.