For many people, the days of having no one to report your credit card transactions are long gone. However, many do still have their credit cards which they use to pay bills and other bills. Once those credit card accounts were reported, all of them would have been reporting to the big three credit reporting companies, Equifax, Experian, and TransUnion.
The truth is that there are a lot of people — especially people with bad credit or no credit — who are automatically turned down for credit cards. This is because it does not indicate that they possess the greatest level of credit, or that they would qualify for a mainstream line of credit.
The only way to determine your ability to carry forward debts is by whether or not the creditor reports these purchases to each of the major credit bureaus.
The decision is often made to use the ‘revolving credit card’, but with the downside that you could end up having to pay a higher interest rate than if you had a secured line of credit.
Though the fact is that it is still extremely important to pay all of your bills. If your bank or creditors reports your monthly balances and credit card payments to all three of these credit reporting agencies, there is literally no way that you would qualify for a mainstream line of credit.
If you really need a line of credit, go to a major credit bureau and request a copy of your reports — whether or not they keep your information is confidential — and request that the reports be reported to all three agencies.
The whole process is cost-effective — even if you might not qualify for a traditional line of credit.
As far as getting credit is concerned, with only two months left before Christmas, you and your family will be spending hundreds of dollars each in interest, fees, and higher interest rates on your credit cards.
According to the Bureau of Labor Statistics, more than half of all low-income workers are classified as underemployed. That means that they have less than a year left on their prime job and have no real means of paying back the loans they’ve been given.
That’s where the problem begins. Under the Fair Credit Reporting Act (FCRA), only the major credit bureaus that report to all three credit bureaus — Experian, Equifax, and TransUnion — are required by law to honor your credit report. (These credit bureaus are not required to report to all three bureaus. They are just required annually by law to do so.) The results? Since 1979, only three major credit bureaus have reported your credit history to all three credit bureaus: Experian, Equifax, and TransUnion.
When you dispute all three reports, you are automatically turned down for a line of credit, but almost all of these people don’t. Only about 30% of those on the losing end of the converse trade and 9% of the remaining 1% on the ‘catalog’ end of the credit trade have ever filed their original requests for credit.
Now if that statistic were to continue, the number of people who would just drop out of college with no or less than perfect credit would have nearly tripled over the next ten years.
If you are an individual who would be devastated to lose your home, your car, your job, or a home you bought with your hard earned cash, there is a good chance that you have already lost thousands upon thousands of dollars in hard earned cash.
This is especially true for people who would be without a job and who simply don’t have the money to put down. Not only would the losses on the new home, car, car loan, and mortgage losses be thousands of dollars more than what you would have lost during the original renovation and life insurance cost, but if those home and car loan losses were to be reported to the three bureaus, the combined cost of your house, your properties, and the cost of attorney’s fees would be almost $2,500 per year in legal fees.
Even if you already pay the new home, car, car loan, and mortgage interest, the total cost of that home, car, car loan, and mortgage is between $900,000 and $1,200,000 per year ($700,000 in mortgage interest and $500,000 in attorney’s fees).
If you are such an individual and are counting on your ability to repay the new loan and the new attorney’s fees, this is all going to increase dramatically when one of those new automobiles is totaled in an auto salvage accident.
According to experts such as Kelly Smith of TransUnion, it is not uncommon for a senior citizen (if a permanent resident or permanent resident) with no credit history or no credit history at all to be denied credit because of a poor credit history.