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Credit
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Questions & Answers
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8 of 8 Credit
Rating
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Why do we need credit reporting?
Credit reporting is needed because it provides the information that
helps consumers make purchases, secure loans, pay for college
educations, and manage their personal finances. Credit reporting
makes it possible for stores to accept your checks, banks to offer
credit and debit cards, businesses to market products, and
corporations to better manage their operations to benefit the
world's economy.
What is a credit inquiry?
An "inquiry" is a listing of the name of a credit grantor,
or authorized user who has accessed your credit file. Each inquiry
is posted to the credit file so you know who has obtained a copy of
it. Credit grantors post an inquiry before offering you a
pre-approval credit card application. These are listed as
"promotional" inquiries on your credit file because only
your name and address were accessed, not your credit history
information. They are NOT sent to credit grantors or businesses for
reasons of credit reporting. They are listed for your informational
purposes only.
How does divorce affect consumer credit?
A divorce decree does not supersede the original contract with the
creditor, and does not release you from legal responsibility on any
accounts. You must contact each creditor individually and seek their
legal binding release of your obligation. Only after that release
can your credit history be updated accordingly.
Should I use one of those companies that promise to help
correct my credit?
It's your choice. However, beware of companies that promise to
remove accurate information from your credit file. Accurate
information cannot be removed from a credit file. There is nothing
they can do for you that you cannot do for yourself by contacting
the credit reporting agencies directly. Only time will heal a
delinquent credit history.
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