What is a Credit Bureau?

Equifax, TransUnion and Experian are the 3 main companies that handle consumer credit reporting. Various algorithms (math formulas) assist them in creating a profile for each person that is used to determine credit worthiness. These credit bureaus maintain a record of your credit history, what you have borrowed and how you paid it back. Any issuer of credit cards or car loans or home mortgage loans uses this profile to determine how much money to lend you and the terms of the loan.

What does Credit Counseling mean?

Professional organizations with specialized credit counselors teach people everyday how to use credit. Being responsible with your credit from the very beginning will have a positive impact on your entire life. These professional Credit Counselor will show ways to use credit and what pitfalls to avoid to remain debt free.

What is meant by Credit History?

Your credit history is used by any company or person to give an indication of how you have handled money you have borrowed. Will you pay it back on time? Have you walked away from a debt? Companies use your history to decide whether or not to give you any money and what to charge you for that privilege.

What is Credit Limit?

The greatest amount of money you may borrow at any given time.

What is a Credit Report?

In a credit report a profile is developed which attempts to show a person's credit worthiness. A picture is created that uses your age, marital status, past addresses, employment record and other specific details to help anyone wishing to loan you money decide.

What is a Credit Score?

The credit score is a simple snap shot of all the data about you and your credit history plugged into a mathematical formula and reduced to a number. This number will be used to anticipate the likelihood that money borrowed will be paid back.

What is Deferred Payment?

Payment arrangements or postponed payments which the lender agrees with.

What does Delinquent mean?

If you are late paying a debt on an agreed upon date for a specific loan then you become "delinquent". On a credit report it may state 30, 60, 90 or even 120 days late. Most lenders work in monthly cycles and each of these affects your credit score.

What is Finance Charge?

The agreed upon amount that a lender requires for you to borrow money is a finance charge or interest charge. This is determined by your credit score and is how companies that lend money, make money.

What is Grace Period?

Things happen, emergencies occur, if you can?t pay on time there is often a certain time period allowed before additional charges begin, the Grace Period.

What is an Installment account?

When you agree to pay a certain amount each payment for specific time period until you have paid off the debt.

What is Interest?

The privilege to borrow money has a price. Interest is how companies that lend money make a profit and it is usually calculated by an Interest Rate on the amount you borrowed.

What does Late Payment mean?

Depending on what you agreed would be your payment date for a specific loan the creditors (lender) may impose a penalty for missing that date. The credit reporting companies usually consider payments late when they have passed the 30 day mark.

What is Line of credit?

When you have the ability to borrow a pre-determine amount of money you have a line of credit. This is often times extended to you on just your promise to pay it back and in some cases it is secured against property or collateralized.

What is a Periodic rate?

This is a definition of the interest rate in regards to a particular duration of time.

What is Daily Periodic Rate?

Calculated by dividing the annual interest rate by each day shows the daily periodic rate charged for a loan.

What is Monthly periodic rate?

Interest rate expressed on a monthly basis. Divide the annual percentage rate by the 12 months of the year.

What is Prime rate?

Banks borrow money every day from the U.S. Reserve. The prime rate is the base interest rate which the government charges the member banks. It is the interest rate reserved for the most credit worthy institution or people.

What is the Principal?

The total amount originally borrowed is called the principal. This does not include interest rate or other additional charges.

What is Revolving credit?

When you receive credit, you will have a maximum amount available and the terms which you are able to use those funds. As you accrue debt the amount available is reduce by an equal sum. When you pay off the debt or make a payment on the total debt amount, the amount you pay becomes available again for other uses. This is revolving debt.

What is Secured loan?

A lender will often times ask for collateral in order to lend money, a house or car, jewelry, of something that has a value.

What is an unsecured loan?

Promise to pay and your credit is good and simple signature will get you the money you need. The only assurance the lender has is your word, the loan is not secured by real property.

Is credit repair legal?

You are lawfully entitled to dispute items on your credit report. FE implements your legal rights consistent with the Truth in Lending Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, and the Fair Credit Billing Act, and also other appropriate Federal statutes. FE helps consumers with credit reports that have incorrect, incomplete, ambiguous or unverifiable information.

Is it possible to repair one's own credit report?

It is possible; you can dispute inaccurate credit report items depending on your patience, time, perseverance, and the complexity of your dispute. The hardest part is following up with the appropriate party and continuing the process in the correct manner.

Why would FE disputes be successful where mine failed?

Our experience and efficiency in working with the credit bureaus facilitates a smoother credit repair process. We are always updated on the recent consumer credit laws. We also make sure to employ the latest and most up-to-date technology to evaluate our partners companies.

What is a Consolidation Loan?

When you have several accounts with high interest it may be the best option to put all those into one large loan with a lower interest rate. By consolidating all your bills you reduce the number of open accounts and give yourself only one payment to deal with each month.

For more information regarding your credit, choose an item from our menu or click on one of the links below:

• Credit Repair
• Credit Report
• Credit Card Offers