Here is a list of credit related questions and answers that Louisville Real Estate .com’s clients often ask about.

1. Why is credit reporting necessary? – It is needed because it provides information that helps consumers make purchases, secure loans, pay for college, and manage personal finances. Credit reporting is what makes it possible for stores to accept checks, banks to offer credit and debit cards, business to market the right products, and corporations to manage their operations in order to benefit the economy.

2. What is a credit inquiry? – A credit inquiry lists the name of the credit grantor or user who has accessed your credit file. Every inquiry is posted so that you know exactly who has obtained a copy of it. Credit grantors will post an inquiry before offering you a pre-approved credit card application. When this happens it will be listed as “promotional” inquiries on your credit file. This is because only your name and address were accessed as opposed to your entire credit history.

3. How does divorce affect my credit? – Divorce does not nullify the original contract you had with the creditor and will not release you from legal responsibility on any accounts. You will have to contact each creditor individually and seek their legal binding release of your obligations before your credit history can be updated accordingly.

4. Should I use a company which promises to help correct my credit? – That is up to you, but you need to know a few things before doing so. Anyone who promises to remove accurate information is “pulling your leg” so to speak. This is illegal and is not possible to do. They can do nothing for you that you cannot do for yourself by simply contacting the credit reporting agencies directly.

More Information On Credit

• Credit guide scoring
  
• Credit profile
  
• Credit questions & answers
  
• Credit reporting agencies