As reported by Bloomberg news the other day, experts have doubts about this plan: “Bankers say the problem isn’t scarce credit, it’s lack of demand from creditworthy firms in a weak economy. The result may be more loans given to distressed firms and higher losses.”

I continue to be puzzled why so many experts and those in our government do not understand that the bad economy has rapidly stressed the root of the problem, individual credit scores.  After all an individual’s credit score is the main way credit is determined for most small businesses.

This is what happened.  The bad economy stressed personal and small business finances, caused downsizing, delayed payments, defaults, etc.  It made otherwise good creditworthy people have a significant drop in their credit score.

Now however, many have recovered from their personal or small business hardships.  If not for their depressed credit score, they would be “creditworthy”.

Problem is the downward effect on credit scores can remain for up to 7 years, regardless if the financial condition has improved.

So, it really is a credit score problem, pure and simple!  Fix that and the economy can roar back to life.

What is now needed is a massive credit score restoration program.  There is not much the government can do about that, but individuals should know that there are many credit report errors that can be fixed and things like identity theft removed from their credit reports.  Creditors are more likely to grant goodwill corrections of negatively reported items to those now in good standing.  Many small debts, weighing down credit reports and credit scores, can now be paid to collection agencies for much less than face value.  All this will help improve credit scores and rapidly.

SmartCredit.com can help individuals and small business owners in this endeavor.  It allows them to take personal responsibility for their credit score and credit education.  Smart Credit has an unrestricted free trial where members can use the Jean Chatzky Score Builder app to see where they stand and what their future credit score could be if recommended Action buttons are used to work out issues directly with creditors.  Smart Credit is connected to over 36,000 creditors for fast and effective results with the simple push of a button.

It is time we all recognize that until credit scores improve for millions of individuals and small business owners, the economy and the unemployment rate will remain bad.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Creditors report to national credit reporting agencies (i.e. – TransUnion, Experian, Equifax) who then prepare a credit report.  You, creditors and the government are among those who can see your credit report.  Your credit score is based on this credit report.  When creditors report incorrectly, it can have a major effect on your credit score for years.

Errors happen because names are similar, addresses are mismatched, social security numbers are off by a digit or two, accounts get crossed.  It happens all the time.  In fact, the Public Institute Research group has reported that up to 80% of credit reports have errors.  Its almost never the fault of a national credit reporting agencies.  They are data repositories and simply report information they get from creditors, collectors or court houses.

The problem is most people don’t know how to find find errors and it is your personal responsibility to ensure your credit report is as accurate as possible.  There are few easy ways to understand your credit report and even fewer tools to fix problems.

So what can you do?

SmartCredit.com has a very simple, easy to understand credit report with Action buttons to fix credit report errors, get goodwill corrections, eliminate identity theft and settle debts.  There is personalized video assistance and pop-up bubble help that shows you were to look for things like errors.

Below is a screen shot showing how to find credit report errors and take action, within the Jean Chatzky Score Builder app, included free with SmartCredit.com membership:

Be proactive about your credit report and credit score!  Use SmartCredit.com and its unrestricted free trial to see your free credit scores.  Use the action buttons to communicate directly with over 36,000 creditors for anything you need, including credit score improvement, remove identity theft and even get a goodwill removal of negative items on your credit report.  You can even ask for a more competitive interest rate on your credit cards.  It’s fast and effective and just takes the simple push of a button.

SmartCredit.com also includes both credit monitoring and identity protection, with a mobile rapid response system, for the fastest way to detect and stop identity theft.  Remember, you need both credit monitoring and identity protection.  Having one or the other is not good enough.  Credit monitoring alone will only show you what’s happened after the damage is done. Our identity protection with mobile rapid response will help you stop fraud before it impacts your credit and finances.

Additionally, identity theft insurance or guarantees are often not a good way to fix the problem.  It will simply bog your down in endless paperwork and third parties trying to do the work you can easily do with the push of a button in SmartCredit.com

David B. Coulter – founder and C.E.O. of SmartCredit.com

This legislation means your credit score is now more important than ever to get a loan or financing for both you personally and for small business owners whose personal credit is used.

Among other things, lenders will be required to certify that consumers have a reasonable ability to repay a loan.  Lenders will look at your income closely, but this will also force more scrutiny on your credit score and credit report showing your prior ability to pay your obligations.

This means your credit score is now more important than ever to get a loan and especially a mortgage.  It is interesting to note that Auto lending is exempt from this legislation, but your credit score plays a big role here too.

Make sure your credit score is the best it can be, before you apply for any loan.  Also, make sure you have credit monitoring and identity theft protection.

How to get the best credit score possible.

No credit score will last forever.  It will change over time as your credit patterns change, or you get new credit, or perhaps you use too much available credit.  Think of your credit score as a snapshot of your credit performance at a fixed point in time.  Your score can go up or down depending on how you manage your credit.

Your credit score is based entirely on your credit report.  It is one of the most powerful tools creditors use to assess your credit risk.  Credit monitoring and identity protection will help protect your credit score and your efforts to get a loan.

Be proactive about your credit score!  Use SmartCredit.com and its unrestricted free trial to see your free credit scores.  Use the action buttons to communicate directly with over 36,000 creditors for anything you need, including credit score improvement, removal identity theft and even get goodwill removal of negative items on your credit report.  You can even ask for a more competitive interest rate on your credit cards.  It’s fast and effective!

Smart Credit also includes both credit monitoring and identity protection, with a mobile rapid response, for the fastest way to detect and stop identity theft.

David B. Coulter – founder and C.E.O. of SmartCredit.com

I have a friend of mine who says his credit score goes down almost 50 points every World Cup because he is too distracted to pay his bills.  It’s not that he doesn’t ultimately pay his bills; he just lets it slip past the due date.  It’s that late payment ding on his credit report that lowers his credit score.

Many of us in America might find this hard to believe, but I can understand why this happens.  Being new to Soccer, I will say this World Cup has me addicted.  I have watched every game.  Some games are very early in the morning and others I watch on DVR into the late hours of the night.  I am reading everything I can about it and following the charts and statistics.  Even given that, I am nowhere near the enthusiasm of some Soccer fans, especially those with immigrant and family ties to other countries. Yet, I have found myself behind on simple things like my blogs.

The problem is, the World Cup is almost a month long from start to finish.  There is very little down time.  Have you ever tried to segregate parts of the Internet to avoid accidentally seeing sports scores on say Google News?  What about telling friends and colleagues: “Say nothing about the World Cup, not a word”.  It’s not easy to wait until after work to watch a recorded game.

So, if you find the World Cup has you paying your bills maybe next week or perhaps after the finals of the World Cup, then know you may have years of a lower credit score.  I know the anxiety and tension might be high, but take a deep breath and pay your bills.  You’ll be glad you did, even if, during the excitement of the World Cup.  Also, don’t ignore your credit monitoring or identity theft alerts either.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

The insurance industry uses your credit report to calculate an insurance score to help determine underwriting risk and sudden financial stress that might lead to insurance fraud.  As a result, this insurance score is used, in part, to determine your rates and detect possible claims fraud.

Many states prohibit the use of your credit report by the insurance industry for setting rates or fees.  Regardless, insurance companies are allowed to check your credit report and insurance score if you make a claim.

Who can look at your insurance score: insurance brokers, insurance underwriters and you.

Where allowed by law, insurance companies may use your credit report, and calculate your insurance score, when you apply for insurance.  They will check every time you apply for life insurance over $150,000.  They may check upon annual policy renewals and before a claim is paid.  The amount of a claim and the frequency of claims are major factors determining if an insurance company will check your insurance score, and examine your credit report, looking for possible fraud.

You are giving your permission for these checks with your initial insurance application.

You can view your insurance score by becoming a member of SmartCredit.com Whenever you update your credit report, all your credit scores are updated as well, including your insurance score.

Click here for more information on Insurance Scores >>

What can you do?

With identity theft the most common crime in America and errors on many credit reports, it is possible your insurance score could be artificially low resulting in higher rates or delayed payments on your claims.

You need to be proactive and use SmartCredit.com

Ensure all your credit scores are the best they can be.  Smart Credit’s patent-pending Action buttons communicate directly with your creditors for anything you need, including improving your insurance and credit scores.

It’s simple.  Just use Smart Credit’s innovative credit report and click on action buttons to talk directly with your creditors to get better interest rates or ask your creditor anything.  No need for phone calls, writing letters or looking up account numbers.  You can fix credit report errors, get goodwill corrections, recover from identity theft, replace a lost or stolen credit card or settle a debt all directly with their creditors.  It’s fast and effective!

Plus, Always Active Complete Protection gives Smart Credit members the most complete credit monitoring and identity protection available.  Having only one or the other is not enough.  It also includes our Mobile Rapid Response action button in alerts for the fastest way to stop identity theft.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

The auto score is a very popular alternative to the standard credit score and it is important consumers understand who can look at it.

The auto lending industry uses a specialized auto score, usually from FICO.  It’s called the Auto Industry Option Score.  Approximately 90% of auto loans use this auto score instead of the more familiar credit score.  The auto score judges your credit risk more heavily weighted to your prior auto loan or lease payment history.

Who can look at your auto score:  auto lenders, auto dealers and you.  Your permission is required, in the form of a signed credit application, for an auto dealer or lender to view your auto score.

You can view your auto score by becoming a member of SmartCredit.com Whenever you update your credit report, all your credit scores are updated as well, including your auto score.

Be sure you understand there is a difference between your credit score and your auto score.  Confusion often is to the advantage of the auto dealer.

Click here for more information on this Auto Scores >>

What can you do?

Be proactive by using SmartCredit.com and ensure all your scores are the best they can be.  Smart Credit’s patent-pending Action buttons communicate directly with your creditors for anything you need, including improving your auto and credit scores.

Its simple.  Just use Smart Credit’s innovative credit report and click on action buttons to talk directly with your creditors to get better interest rates or ask your creditor anything.  No need for phone calls, writing letters or looking up account numbers.  You can fix credit report errors, get goodwill corrections, recover from identity theft, replace a lost or stolen credit card or settle a debt all directly with their creditors.  It’s fast and effective!

Always Active Complete Protection gives Smart Credit members the most complete credit monitoring and identity protection available.  Having only one or the other is not enough.  It also includes our Mobile Rapid Response action button in alerts for the fastest way to stop identity theft.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

The government has broad access to your credit report, but rarely does.

Local, state and federal governments have broad rights to access your credit report and in some cases, put things on it.  However, you might be surprised how few times the government actually looks at your credit report.  They mainly use it to aid in verifying your identity when you apply for a government service or job, which is entirely in your control.  It is also used by the courts to post judgments, including small claims cases, but these are infrequent as well.

The Internal Revenue Service can access your credit report in asset searches or to report notices of tax liens.  Contrary to popular belief this is also infrequent and only when they conduct an investigation.

Law enforcement has instant access to your credit report to aid in their investigations.  The U.S. PATRIOT Act, as modified in 2003, under section 126 expands the Department of Home Land Security, Federal Bureau of Investigations and other law enforcement agencies ability to obtain your credit report by simply certifying they will use it “in connection with their duties to enforce federal law”.  Note the use of the word “federal”.  States have their own rules to access your credit report as well.  Section 126 does not require any investigation be related to terrorism or a violent criminal offense.  There is also no notice of law enforcements access to your credit reports that are permitted under 15 USC §1681b(a)(1).  This means you will not get a credit monitoring alert and your credit score will not be affected.

Other ways government agencies can use your credit report is to judge your credit and verify identity for such things as student loans and loan guarantee programs as well as ways to verify your information if you apply for governmental assistance programs, such as disaster relief, welfare or Medicaid.

State and local governments generally use your credit report for criminal investigations, warrants, court judgments, small claims, bankruptcy, collections for child support, and your employment.

How can SmartCredit.com help?

Not all judgments and liens, especially from the Internal Revenue Service, are accurate.  Smart Credit has both identity protection and credit monitoring to keep you informed.  Be proactive about your credit report; make sure it is the best it should be before you apply for a government service or job.

Smart Credit not only includes all your credit scores, but includes our exclusive Jean Chatzky Score Builder App, which is a personalized 120 day plan to better credit, for the credit-challenged or those going from good to great credit.

Use Smart Credit’s innovative credit report and click on action buttons to talk directly with your creditors to get better interest rates, or to ask your creditor anything.  No need for phone calls, writing letters or looking up account numbers.  You can fix credit report errors, get goodwill corrections, recover from identity theft, replace a lost or stolen credit card or settle a debt all directly with your creditors.  It’s fast and effective!

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Here are the three main ways others can look at your credit report:

1.  Those you give your permissions to.

If you give your permission to a third party to access your credit report they still need a permissible reason, such as, when you are applying for a credit card, auto loan, mortgage or a job.

This is called a hard credit report inquiry and this will lower your credit score, except in the case of your job application.

2.  Your creditors.

Creditors you have an open account with may look at your credit report to see how your overall credit is being maintained.  They look for sudden financial stress or defaults on other obligations as a guide for determining your open accounts status and overall credit risk.

This is called a soft credit report inquiry and it will not lower your credit score.

When a creditor sells your unpaid debt to a debt collector, they can access your credit report.  It will be a hard credit report inquiry lowering your credit score.

3.  A government and law enforcement need.

Governments at all levels (local, state and federal) along with law enforcement have access to your credit report for a wide range of reasons.  Details of this will be in the next blog, please stay tuned.

This is usually a hard credit report inquiry that will lower your credit score.  However, that is not always the case such as a check by Welfare.  Some law enforcement access to your credit report is never revealed and will not lower your credit score.

When your credit score is lowered by a hard credit report inquiry, it is usually by 8 points, on a scale of 350 to 850, bad to excellent.  Depending upon where your credit score is, this could have a profound effect on your ability to get credit or loans.  This is especially true if you have multiple hard credit report inquires in the last six months.  Mortgage applications and multiple hard credit report inquires, in a 30 day period, are counted as one inquiry.

This 8 point deduction stays on your credit report for up to two years.  However, only the last six months takes the full 8 point deduction.  After that it is lower.

In two years the hard credit report inquiry is required by law to be removed from your credit report.

Soft credit report inquires are never count against your credit score.  Also, when you subscribe to a credit monitoring service and look at your credit report, it is never counted against you either.

What can you do?

Get alerts whenever someone accesses your credit report.  Do to this effectively you need to have not only strong identity theft protection, but credit monitoring as well.  Having only one or the other is not enough.

SmartCredit.com has both.  It’s Always Active Complete Protection, guards both your credit and identity.  You will get alerts whenever someone accesses your credit report.  The Rapid Response feature puts action buttons right on your mobile phone allowing you to stop identity theft with the simple push of a button, avoiding the need to login or call anyone.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Most understand their credit report is used to calculate their credit score which in turn is used to grant new credits or loans.  However, many people struggle to accept the importance of their identity information contained in their credit report.

Even more people disregard the importance of having the identity portion of their credit report current.  After all, some say, “my credit score is calculated only by my credit history”, or, “when I need credit, I can simply show my driver’s license to prove that I have moved”.  This is partially true if you are applying for credit in person and then at the discretion of that lender.  However, it’s not that simple if you are applying for an auto loan or credit card on-line.  Why?  Because Identity Theft is a big deal and most of it is committed on-line.  Creditors may be wary enough to hold or decline credit if there is a mismatch of identity information on your application versus your credit report.

If your address is nowhere near where you claim or your maiden name is showing on your credit report, this could be a problem.  Many applications for credit are rejected by risk calculations based on a mismatch of your name or address location.  You may not get an opportunity to demonstrate otherwise.

The answer is your credit report is NOT a substitute for a government issued physical form of identification; it is only a tool to verify your identity.

The identity portion of your credit report can get stale, there are credit reporting errors and identity theft is the number one crime in America.  All this can make using your credit report to verify your identity difficult.  No one should have their credit score go down, as a result of a credit report inquiry, where ultimately credit is declined because the identity portion of their credit report is not accurate.

Beyond a record of your credit history and a list of who’s looking at your credit, the identity portion of your credit report contains:

- Your full name and any previous names you have used, like a maiden name

- Your address and any previous addresses

- Your phone number and any previous phone numbers

- Your place of employment and any previous employment

- Your date of birth

- Your social security number.  This can be limited to certain credit grantors.

Your credit report does not have your driver’s license number, passport number, nor your physical attributes like your hair and eye color.

Another important factor to consider is credit reporting bureaus never remove any of your identity information from your credit report.  It stays there forever, unless, you have inaccurate portions removed or corrected.  There is no reporting time limit as there is for reporting negative information.

You should consider your credit report part of your identity.  Know that it may be used to verify your identity many times.  Just like you need to keep your driver’s license or passport updated, you need to keep all aspects of your credit report updated.

Also ensure you have strong identity theft protection along with credit monitoring. Having only one or the other is not good enough.  SmartCredit.com, with its Always Active Complete Protection, guards both your credit and identity. Smart Credit’s Rapid Response puts action buttons right on your mobile phone allowing you to stop identity theft with the simple push of a button, avoiding the need to login or call anyone.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

How will this affect you?

First, this legislation addresses a serious concern that people with low credit scores and little income were given mortgages and other types of loans that they shouldn’t have.  The criteria for approval became so low in 2006 and 2007 that many who could not afford their loans got them anyway.  So what does this mean to you?  This means your credit score is now more important than ever.  If you are below a 700 credit score, you should take a serious and hard look into your credit health.  The days of easy credit are over for good.

Second, there will be new regulations increasing criteria for lending.  Things like no-income verification mortgages will no longer exist.  Additionally, under many circumstances, banks will have to assume some of the risk if they sell your loan.  As a result, the documentation and income verification you will need will not only have to match your ability to repay the loan, but must be in good verifiable order.

Third, the time to get larger loans like mortgages will increase.  This is mainly a result of requiring more documentation combined with a new lengthily verification process.

We are entering a new era of credit and financing.   It will affect most everyone as I described above, including small business owners, where their personal credit is essential.

To see a summary of the financial reform legislation click here: http://banking.senate.gov/public/_files/FinancialReformSummary231510FINAL.pdf

What can you do?

Plan ahead when using your credit report and credit score to get a loan or credit card.  Make sure you have researched the lender’s reputation, rates and terms before you apply.  Also, ensure your credit is the best it can be.  A simple way is to use SmartCredit.com

Smart Credit has the only simplified horizontal credit report with action buttons, on each element of your credit report, allowing you to control your credit and identity with the simple push of a button.  It includes all your credit scores as well.

Use the action button to ask your creditors anything.  Perhaps you want a better interest rate or pay off a collection account.  No need for phone calls, writing letters or looking up account numbers.  You can even fix credit report errors, get goodwill corrections of negatives, recover from identity theft, and replace a lost or stolen credit card, all directly with your creditors.  It’s fast and effective!

Smart Credit’s Always Active Complete Protection gives its members the most complete credit monitoring and identity protection available.  It also includes our Rapid Response action button in alerts for the fastest way to stop identity theft.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Today we will examine what it means to have a creditor post “Account information disputed by consumer” in creditor remarks, and if it affects your credit score.

Generally, a creditor posts this remark to your credit report because of an action initiated by you.  Maybe the creditor is reporting an account that is not yours and you are the victim of identity theft, or, there might be an error in the amount owed.

The Fair Credit Reporting Act governs how credit bureaus are required to handle consumer disputes: § 611. Procedure in case of disputed accuracy [15 U.S.C. § 1681i]. They are required to post to the creditor all dispute information within five business days of receipt of your dispute.

§ 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2] (a).3 states that creditors must report “Account information disputed by consumer” if they do not agree with your dispute.  This remark would appear on your credit report within thirty days and stay on your account until it is no longer reported.  Usually accounts are reported for 7+ years.

There is no date when this creditor remark was posted, which means that future creditors will not know if your dispute was a month ago or four years ago.  They will not know if your dispute was directly to your creditor or to a credit bureau.

This means there is no way for credit scoring to adjust your credit score, either good or bad, with a creditor remark of “Account information disputed by consumer”.

FICO makes no mention of this in their overview of factors considered, or not considered, in credit scoring: http://www.myfico.com/Downloads/Files/myFICO_UYFS_Booklet.pdf

Also, there is no such thing as a dispute period shown on a credit report.  True, credit bureaus and creditors are required to respond within thirty days to your dispute, but that is their requirement and is not reflected anywhere on your credit report.  Remember, your credit report does not contain a date of original dispute; there is simply no way for a lender or scoring agency to calculate a dispute period.

This also means that while your dispute is being resolved, your credit score is NOT artificially high, created by credit scoring calculations somehow skipping an account in a fictitious dispute period.  Despite reports to the contrary, this simply does not happen.  Can you imagine the havoc unscrupulous credit repair companies could wreak on the credit reporting system?  There is simply no evidence anyone is promoting this tactic.  Note this report to congress in 2006 where there is no mention of this:  http://www.ftc.gov/os/comments/fcradispute/P044808fcradisputeprocessreporttocongress.pdf

This also means potential lenders do not wait until disputes are resolved unless they have first hand knowledge of it, again, because they cannot see a dispute-originated date.

What if a mortgage lender does a manual review of one’s credit report because my credit scores did not qualify me?

In rare cases, if one is not qualified for a mortgage and a lender wants to do a manual review of the credit report, that lender may have a question about “Account information disputed by consumer” in creditor remarks.  Lenders know about identity theft and errors on credit reports, so this is an opportunity for the consumer to show that he/she is proactive about their credit health.  It is perfectly normal for a lender to ask for clarification during a manual review, but it should not have any impact one way or another.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

SmartCredit.com selected by Finovate as one of Americas top most innovative companies.

On May 11^th, at Finovate Spring 2010 in San Francisco, CA both Jean and I presented Smart Credit’s newest application (‘app’):  the Jean Chatzky Score Builder.  This app is the result of a great partnership between Smart Credit and Jean Chatzky, combining our advanced technology and Jean’s trusted financial expertise.  Together we set out to create a platform for consumers to understand their credit and control it like never before.

Finovate Spring 2010 was a wonderful opportunity for both Jean and I.  Finovate selected Smart Credit as one of America’s top 36 most innovative companies.  They also loved the Score Builder App strategy we were building with Jean.  As a result, we decided to launch the Jean Chatzky Score Builder App at Finovate.  It was great to be on stage presenting with Jean in front of our peers, members of the press and analysts.  They got a chance to see how unique and helpful Score Builder is.

I presented SmartCredit.com and how its unique horizontal credit report made it easier to read and understand one’s credit.  Then I talked about how our Smart Action buttons let members ask their creditors anything with the simple push of a button.

Jean then presented the Score Builder app and how it uses Smart Credit’s technology to show individuals a personalized step-by-step credit score building program.  She talked about how it helps people understand their credit score, sets a credit score goal and how action buttons can be used to achieve this goal.

It was a big hit at the show!

Building the Jean Chatzky Score Builder App.

Jean and her team worked with our designers and development team at Smart Credit almost around the clock to launch the Score Builder app in time for Finovate.  We had a lot of fun coming up with great ideas to make Score Builder unique in its ability to help consumers achieve better credit in 120 days.

Score Builder is more than just showing what possible action buttons to push.  It is a behavioral change tool.  It helps one better understand their credit score and the impact on their lives.  Then it sets a goal: a better credit score in 120 days.  The heart of Score Builder are action buttons used to achieve this credit score goal in 120 days.

Score Builder shows each credit report account in a simple way and presents four action buttons for individuals to choose how they can improve their credit and finance situation.  Here are the actions that can be taken:

- Fix credit report errors

- Get good will corrections of negatives

- Negotiate and pay off small debts

- Remove and declare identity theft.

Choosing a reason to take an action is simple with the drop down menu of default reasons and messages direct to the creditor.

Each action has a targeted video and help bubbles to help explain what action(s) could be taken.  Jean did over two dozen personalized videos that are integrated in Score Builder.

When an action is taken it goes directly to the source, the creditor.  Score Builder uses Smart Credit’s technology to communicate with over 36,000 creditors to ask them anything.  It’s fast and effective.

Best of all, we made Score Builder free with SmartCredit.com membership.  We are so confident about our product, we allow new members to enjoy an unrestricted free trial period to look around and make sure they want to stay a member, before they get charged any membership fees.

For the first time SmartCredit.com, in conjunction with the Jean Chatzky Score Builder app, truly gives consumers a simple tool to control their credit with a button.

David B. Coulter – Founder and C.E.O. of SmartCredit.com

Three simple rules everyone can follow.

One of the most important things for us as Americans to do is control our credit and protect our identity.   It is entirely our individual responsibility.  For many, credit and online identity can be a complicated and tough concept.

Your credit can be used not only to determine credits and lending, but also for insurance and even for a job.  Your identity, such as your credit card information, social security number, date of birth, address, etc. is stored in thousands of data bases and not all are secure.  It’s easier than ever for identity thieves to take out credit in your name.

How can you take ownership and control your credit and identity?

With these three simple rules:

1.  Review it.

- Look at your updated credit report at least once a month.

- Know your credit score before you apply for credit.

- Carefully review any credit and identity monitoring alert you get.

2.  Control it.

- Make sure your credit report is accurate.

- Ask your creditors to fix errors, settle small debts and get goodwill corrections.

- Also request better interest rates and terms where ever possible.

3.  Protect it

- Ensure you have credit monitoring and identity protection.

- Put these alerts on your mobile smart phone.

- Immediately tell your creditor if an alert is not accurate or is not related to you.

This will help ensure you have the best possible credit score and prevent identity theft.

Where can you do all this?  It’s hard to know which web sites are simple enough to help you easily understand and control it all in one place.

This is why we built SmartCredit.com

You can easily review, control and protect your credit and identity all in one place.

Our first big innovation is our Smart Credit Report.  It’s an entirely new experience.  What makes it unique is we turn your credit report horizontal and isolate each element in to its own slide making it easier to read and understand.

Then we gave it simple search and sort features.  You can view only your negatives or just your credit cards.  Click on an item and your credit report will slide right to it.

Our other big innovation is our Smart Action button.  This will communicate directly with creditors you see on your credit report.

We spent years building our network of 36,000 creditors so you can ask them anything.  No phone calls, no writing letters, you don’t even need your account number.

You can ask about an unknown charge on your billing statement or tell them you lost your credit card.  Maybe you want a more competitive interest rate or settle a debt.  Even tell them the balance is incorrect or you weren’t late last month.

We also put this Smart Action button right on your mobile phone.  It’s the fastest way to talk to your creditors and stop identity theft.

We also have an integrated application center (‘App’) center which is all relevant to your credit and lifestyle.

As simple as our Smart Action button is, some people need things laid out for them in step-by-step manner.  Just tell me what to do concept.

For this, we partnered with trusted national- financial expert Jean Chatzky and built the Jean Chatzky Score Builder App to show all types of consumers the action buttons they can push to improve their credit and finance situation in 120 days.

It has great help icons that show you how to fix errors, get goodwill corrections, settle a debt or remove identity theft.  Help videos are specific to your credit score and explain each action you can take to achieve better credit.

The Jean Chatzky Score Builder is an industry first and only available at SmartCredit.com

SmartCredit.com is the premier online product where you can easily control your credit and identity.

David B. Coulter – Founder and C.E.O.

Your credit report is a history of all your credit activities.  It will contain your name, address, social security number, date or birth, your employer, your phone number, a list of those who have looked at your credit and everything positive or negative about your credit accounts.

This information is very sensitive and private.  Only those with your express permission or legal need are allowed to view your credit report.

It is your credit report that determines your credit score.  Your credit score is a number between 350 to 850, bad to great.  There are different credit scores which may use a range of 500 to 999.  However, most credit granting decisions are made with the FICO credit score which ranges between 300 to 850.  Your credit score number helps those viewing your credit report understand a lot about you.

Your credit is used not only to help creditors decide whether or not to grant you credit, but can be used as a form of identification, determine your insurance rates and guide employers on hiring, firing and promotion decisions.

How is credit scoring calculated?

Credit scoring is a statistically based computerized method for predicting how likely it is that a borrower will pay back a loan before credit is granted.

To make sure you score high with your credit history, it’s important to understand what factors affect your credit score.

Different types of information, known as factors, are gathered from your credit report to make up your credit score. These factors fall into broad categories, such as payment history and outstanding debt.

Credit scoring rates the importance of each category to calculate your credit score.

Credit scores reflect credit patterns over time. An adverse action, like a tax lien or bankruptcy filing, can immediately and significantly impact a credit score.

Several factors can have a negative impact on your credit score:

-        History of nonpayment

-        Public record information

-        Evidence of collection accounts

-        Recent delinquent accounts

-        High balances owed on accounts

-        Credit cards charged to their limits

-        Too many new accounts

Only the applicant’s prior credit history is considered when calculating a credit score. For this reason, credit scoring is considered unbiased. Any factors that would show bias are not allowed.

Your credit score cannot be based on any of these factors: race, gender, age, income level, national origin, sources of income, religion or marital status.

Because income level is not a factor, you could have a low income and a high credit score; or, you could have a high income and a low credit score. It just depends on your credit history.

FICO® scores, developed by Fair, Isaac and Co., Inc., are the most commonly used credit scores today. According to FICO, the various factors used to calculate credit scores can be grouped into five primary areas:

-        Payment history

-        Outstanding debt

-        How long you have been using credit

-        Pursuit of new credit

-        Types of credit in use

-        FICO is one credit scoring company. Other companies may use different factors.

Five sample factors for calculating credit scores are listed below, along with a sample of the importance each factor has to the total score. As you read through the list, think about how your credit might score today.

Payment History: 35%.

What is your track record? Have you made your payments on time?

Outstanding Debt: 30%.

How much do you owe? Do you have a high level of debt? Are you near the credit limit on some or all of your accounts?

Credit History: 15%.

What is the length of your credit history? Has it only been a few years? The longer your credit history, the better.

Pursuit of New Credit: 10%.

Have you made numerous applications for new credit? Are you taking on too much debt?

Types of Credit in Use: 10%.

Do you use a variety of credit types? The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It is NOT necessary to have one of each, nor is it a good idea to open credit accounts you do not intend to use.

Each factor is given a weight or level of importance. This weight is assigned as a percentage (such as 35%, as shown in the example above). The score is graded for each factor, and then each factor is multiplied by the weight. Computers calculate credit scores in an instant.

To view a Free Credit Report provided by all three national credit bureaus you can visit annualcreditreport.com You will not be able to see your credit score, just your credit reports.

How to get the best credit score possible

No credit score lasts forever. It changes over time as your credit behavior changes. Think of it as a snapshot of your credit performance at one point in time. Your score can go up or down depending on how you manage your credit.

Your credit score, which is based entirely on your credit report, is the creditor’s most powerful tool for assessing credit risk.  Credit Monitoring and Identity Protection will help protect your efforts.  Be proactive about it!  Use SmartCredit.com and it’s unrestricted free trial to see your free credit scores.

Smart Credit and its patent-pending Smart Action™ buttons to communicate directly with your creditors for anything you need.

It’s simple.  Just use Smart Credit’s innovative credit report and click on action buttons to talk directly with your creditors to get better interest rates or ask your creditor anything.  No need for phone calls, writing letters or looking up account numbers.  You can fix credit report errors, get goodwill corrections, recover from identity theft, replace a lost or stolen credit card or settle a debt all directly with their creditors.  It’s fast and effective!

Smart Credit’s Always Active Complete Protection gives members the most complete credit monitoring and identity protection available.  It also includes our Rapid Response action button in alerts for the fastest way to stop identity theft.

David B. Coulter – founder and C.E.O. of SmartCredit.com

Many auto and mortgage insurance companies look at your credit report, in part, to determine if you are qualified for their lowest pricing plans.

They also look closely at recent financial stress that may hint at possible fraud.  Meaning if you’re maxed out on your credit, you might be tempted to make a false insurance claim.

It is also common that insurance companies will review a policy holder’s credit report to look for sudden financial stress which may spur them to investigate any damage, theft or lost item claim as possible fraud.

If you apply for life insurance over $150,000; your credit report will generally be checked as a matter of procedure.

Depending upon applicable state laws your credit report can even be used to deny you insurance.

Many people believe this practice is troubling.  Especially considering credit reports may have errors and identity theft is the number one complaint to the Federal Trade Commission.  In fact, a growing list of States prohibit the use of your credit report for determining insurance rates.

Smart Credit developed an insurance score that considers many factors insurance companies use to determine rates and possible fraud.  Our insurance score range is between 350 and 850 and this chart will show you how insurance companies may rate you:

SmartCredit.com includes this insurance score at no additional charge.  It’s a great way for you to track how insurance companies may judge your credit for your insurance rates or claims.

How to best prepare for an insurance application and get the best possible rates?

Be proactive!  Make sure your credit report is the best it should be before you apply for insurance.  Use SmartCredit.com to fix errors, get goodwill corrections and settle out debts.  It’s fast and easy with our Smart Action buttons.

David B. Coulter – founder and C.E.O. of Smart Credit

Almost 90% of auto lenders base their lending decision on your auto score. It is calculated primarily on your previous auto loan history and not your overall credit as would normally be the case for a mortgage or credit card.  You would be surprised how many people can get a car loan and not a credit card.

Many lenders are willing to give out auto loans to those with less desirable credit scores. This is because studies have shown people with poor credit histories will generally keep their auto loan payments in pretty good shape all the while letting their other credit go unattended in one way or another.  This is another reason why they need an auto score to better guide their lending decision.

Because lenders are more likely to use your auto score, instead of your credit score, getting an auto loan can be a great way to build or restore your credit. Make those payments on time and begin to build up a positive credit history.

Know your auto score.  SmartCredit.com includes our auto score at no additional charge.  It is heavily weighted on the following credit report factors, which FICO also uses in their auto score:

- An auto loan or lease sent to collections

- Any late payments on an auto loan or lease

- An auto loan or lease settled for less than owed

- A repossession by the lender

- Previous two year overall credit

Smart Credit’s auto score range is between 350 and 850:

How to best prepare for an auto loan application?

Make sure your credit report is the best it should be before you apply for an auto loan.  Use Smart Credit to fix errors, get good will corrections and settle out debts.  It’s fast and easy with our action buttons.

Being proactive with your credit will not only improve your credit score, but will have a positive impact on your auto score as well.  Especially, if you take these actions on your current or past auto loans.

David B. Coulter – founder and C.E.O. of Smart Credit

An Employment Credit Score is a pioneering concept from Smart Credit.  It is a score for individuals to understand how employers may judge them based upon their credit report.

Because your credit report is being used by 50% of employers to determine hiring, firing or promotion we felt it was important to create a new score that considered factors an employer may use.

Our Employment Score is determined by your credit report.  It weighs certain factors more, or less, depending on how an employer may look at your credit report.  Remember, employers cannot see your credit score.  This means factors on your credit report are manually reviewed and determined differently for a job or promotion than for a loan or line of credit, which is almost exclusive credit score based.

Your Employment Score range is between 350 and 850:

The Employment Score is calculated from lots of different credit data in your credit report. The percentages below reflect how important each category is to your Employment Score.

As you can see, the last 12 months is very important to an employer.  Paying your bills on time, low financial stress and avoiding tax liens or collection accounts demonstrates good healthy behavior on your part.  This is important to employers who are looking to judge your character.

Compare that to how standard credit scores are calculated, including the FICO credit score:

Understanding your employment score can be the difference between getting hired, fired or promoted.

Be prepared by keeping your credit report the best it should be.  Use SmartCredit.com

Our patent-pending Employment Score is available to all members of Smart Credit at no additional charge.  We want our members to see what an employer sees and specifically how they may judge their credit report.

With Smart Credit you can protect yourself from sudden identity theft and keep your credit monitored with our state of the art 24/7 protection.

Use our action buttons to fix credit report errors, remove identity theft, get goodwill corrections of negatives and even settle small debts.  It works fast and is very effective.

David B. Coulter – founder and C.E.O. of Smart Credit

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As we have learned in part iii, the job applicant’s death spiral, your credit can derail your prospects for a job or promotion.

Now we’ll explore how your credit can possibly get you fired.

Checking credit during employment is a new trend. Employers have started using your credit to monitor on-going behavior while you are employed.  Many employment contracts now include your permission to check your credit twice a year or whenever determined necessary.

The need for this does have relevance if you have a sensitive job, high security clearance or handle the identity of others.

Why is checking an employees credit a growing habit beyond the obvious need?

It’s primarily because employers see credit checks as a component of on-going employee management.  There are other factors too.  Checking ones credit during employment is a way to avoid liability risk in firing someone.  An employer could be at risk of negligence claims should they continue to employ high risk individuals.  However, it could be used as an excuse to fire someone.

This is a problem for employees who become the victim of identity theft, which negatively affects your credit.  Or imagine if you have an unexpected medical bill you can’t pay which then becomes a collection on your credit report.

Doing your job well no longer assures continual employment.  Your credit can become a significant factor.

What can you do?

Ask your company to offer the SmartCredit.com employee benefits package.  Our state of the art system offers real identity and credit protection.  Smart Credit will provide all employees with our great credit, identity and finance service at a volume discount.

Be proactive!  Make sure your credit is the best it should be using our Smart Action buttons to fix errors, get goodwill corrections of negatives and settle debts.  You can do this all with the simple push of a button.  Your actions go directly to your creditors who then update all your credit reports.  It’s fast and effective.

David B. Coulter – founder and C.E.O. of Smart Credit

How your credit can get you hired, fired, and even stop a promotion. Part iii of iv: The job applicant’s death spiral.

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It starts with someone who is unemployed and searching for a job. Then, one of the two following factors is needed to create a job applicant’s death spiral:

1) Your credit is negatively affected by errors or identity theft; or,

2) You have used up your savings and can’t pay your bills on time, negatively affecting your credit.

We have learned that almost 50% of employers are checking your credit report and that bad credit can derail a job or promotion.

This combination of factors is a perfect storm and happens more often than you imagine.  It is very difficult to recover from this downward spiral.  It may mean long term financial stress and lower paying jobs.  Time is the problem in most cases.  You need the job quickly; however, it will take some time to correct the problems on your credit report.

The job applicant’s death spiral is even more frustrating if you feel your credit should not matter to a potential employer especially if you have the talent, education and experience for the job.  Also, consider that explaining you’re the victim of Identity Theft may not be persuasive to an employer.

How do you recover from a job applicant’s death spiral?

Use SmartCredit.com and its state of the art identity and credit protection.  It will help prevent Identity Theft.  If you are a victim of Identity Theft, use our Smart Action buttons to get rid of it.  You should know that Identity Theft is the most reported crime to the Federal Trade Commission for the last several years.  It’s a huge problem.  In fact, over 9mm people in the United States alone are victims every year.

Also, be proactive!  Make sure your credit is the best it should be using our Smart Action buttons to fix errors, get goodwill corrections of negatives and settle debts.  It works fast and is very effective.

Coming soon:

Part iv – Getting fired because your credit changes during employment.

David B. Coulter – founder and C.E.O. of Smart Credit

How your credit can get you hired, fired, and even stop a promotion. Part ii of iv: Why your credit report can stop you from getting the job or promotion.

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To understand why bad credit can stop you from getting a job or promotion, let’s first understand that good or great credit will only bring you to neutral in an employers hiring decision.

In part i, we learned most employers are not qualified to review your credit report.  Additionally, most do not know the difference between good or great credit by looking at a credit report, which has no negatives items (remember: employers cannot see your credit score, only your credit report).  It is true that good or great credit will give you an advantage over other applicants with bad credit.  On the other hand, do not count on good or great credit to be anything more than judging you as one with normal credit.

To help you prepare for an interview, let’s examine how employers interpret your credit report.  If necessary, review part i again, to see what employers are looking for on your credit report.

If the employer interprets your credit report as Below Normal or worse, your chances of getting the job or promotion become slim.

What can you do?

Understand your credit well and be prepared for an interview.  Part of being prepared is making sure your credit is the best it should be.  Be proactive and use SmartCredit.com Our Smart Action buttons work quickly to fix errors, get goodwill corrections of negatives and settle debts to help your overall credit.

Coming soon:

Part iii – The job applicants’ death spiral.

Part iv – Getting fired because your credit changes during employment.

David B. Coulter – founder and C.E.O. of Smart Credit