Credit Reporting

Consumer Credit Information

Consumer debt has risen dramatically over the past few years, so if you are in debt, you are not alone. Many people have trouble paying bills and consumer debt drives millions of consumers into bankruptcy every year. Some people don’t know how to handle consumer debt or are afraid to seek help when they realize they are in financial trouble.

Credit Associates, Inc. offers the following advice on dealing with consumer credit.
As the United States becomes an increasingly credit-based society where many financial transactions are done on credit, a good credit standing has become one of the most important assets a person can own. Your ability to purchase a home, an automobile, or finance a college education may rely to some degree on your credit rating. Many of the decisions that lenders and creditors make concerning your needs rely on your personal credit score, or credit rating. While credit scores may seem complex or even scary, it’s important to remember that no one controls your credit score but you.


A credit score is a number that is calculated using a number of factors based on your credit and payment history. Lenders use credit scores to estimate risk. Analysis of those consumers with higher credit scores has shown that those with higher scores are less likely to default on a loan.

Credit scores are determined by software employed by the three credit scoring bureaus in the US, using data from your credit report. The software uses 5 key areas of your credit report to determine your score. In order of importance, the 5 key areas are:

  1. Payment History
    Your Payment History includes the number of accounts you have that are paid as agreed. It includes any negative public records or collections. For delinquent accounts you may have, it includes the number of past due items, how long past due for each, and how long it’s been since you’ve had a past due payment.
  2. Amounts Owed
    The types of accounts with balances and how much you owe on each in included. Credit scores consider how much of your revolving credit lines you’ve used to see if you may be over-extended. They also consider installment loan accounts to make sure you are making regular payments. These are also including zero balance accounts.
  3. Length of Credit History
    The length of credit history considers how long you’ve had a credit history, as well as the length of time since accounts were opened, and how long it’s been since you’ve had activity. Scores are increased for longer histories without problems.
  4. Types of Credit
    The types of credit you have are important in establishing a credit score – installment loans, revolving credit card or other charge accounts. Generally, a mix of different types of credit accounts is reflected in a higher score.

Credit scores also consider new credit accounts and the proportion new accounts represent of your total accounts. Scores look at recent credit inquiries and the time that has passed since inquiries and newly opened accounts. The scoring bureaus check to make sure you aren’t attempting to open multiple new accounts.

Remember that credit scores are only one of the items that a lender will use to determine if and how much they are willing to lend to you. Lenders may also typically also consider income, employment history, net worth, and the type and amount of credit you are seeking.


The United States Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. The federal FCRA promotes the accuracy, fairness and privacy of information in the files of consumer credit reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to consumer credit reporting companies.

Nationwide consumer reporting companies sell the information in your report to businesses, creditors, insurers, employers, and others that use it to evaluate your applications for loans, credit, insurance, employment, or renting a home.

A summary of your rights under the federal Fair Credit Reporting Act can be found at:

You can find more information about free credit reports at

If you feel you have been treated unfairly or unprofessionally by one of our agents, please write or email us at