How to Create a 680 Plus Credit Score

A good credit score improves your likelihood of acquiring a loan. While lenders vary in their definition of a good credit score, a FICO score of 680 or higher is generally enough to obtain a good interest rate and loan. Fortunately, there are many ways to raise a low score and improve your chances of getting financing.

Instructions

1

Get your credit score and assess your rating. You can request your credit report and credit score from websites such as AnnualCreditReport.com.

2

If you don't have a credit account, get one. You need credit to build a 680 credit score. If you have no credit history or bad credit, apply for a secured personal loan using collateral such as a car title, or obtain a secured credit card. Secured credit cards require a security deposit.

3

Make timely payments. Creditors report late or skipped payments to the credit bureaus. Avoid a negative remark by making on-time payments each month. Mail payments several days before the due date, or make online or telephone payments to ensure a timely arrival.

4

Keep unused accounts open. Closing older or unused accounts reduces your credit history and lowers your FICO score. Store unused credit cards in a safe place and keep the account open to increase your credit score.

5

Pay off your balances every month. Keeping a high balance on credit cards also reduces your score. If you're a frequent credit card user, resolve to pay off the statement balance each month to keep your debt-to-income ratio low.

6

Watch out for credit inquiries. Applying for multiple credit cards or store accounts may appear harmless. However, this action reduces your FICO score. Keep credit applications and inquiries to a minimum

7

Dispute credit report mistakes. Along with ordering your credit report and score, check your report periodically for possible mistakes. Erroneous remarks on your credit report decrease your score and may ruin your chances of qualifying for a loan.

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How to Obtain Credit After Chapter 13 Bankruptcy Discharged

Finalizing your Chapter 13 bankruptcy can lift a huge burden. On the downside, filing bankruptcy has a major impact on your personal credit score, and after the discharge, it becomes extremely difficult to acquire financing. While some lenders will not approve your loan applications, it's imperative to obtain credit after a Chapter 13 bankruptcy in order to rebuild your credit. Fortunately, there are ways to acquire credit and undo past mistakes.

Instructions

1

Start over with a high-interest credit card. While these cards are not appealing, high-interest credit cards are easier to acquire than traditional cards. Demonstrate a good payment history with the credit card issuer, and they'll gradually reduce your interest rate. Compare sub-prime credit cards on websites like Creditcards.com.

2

Rebuild credit with secured credit cards. Save about $500 for a security deposit and then apply for a secured credit card with your bank or another financial institution that provides these accounts. You'll be required to open a savings account with the bank, and the amount deposited into this account will reflect your credit limit.

3

Get an auto loan. Because your automobile secures an auto loan, it's possible to acquire a vehicle loan after a Chapter 13 discharge. Expect a higher finance rate and payment. Skip big dealerships and purchase the car from auto dealers who work with bad credit applicants.

4

Join another person's account. Ask your spouse, sibling or parent (with good credit) to add your name as an authorized account user on their credit card. This positive account will appear on your credit report and help rebuild your credit after a Chapter 13 discharge.

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What Is a Bad FICO Score?

Your FICO credit score is the main way lenders measure whether or not you're worthy of credit. It's important to keep your FICO score as high as possible in order to qualify for credit cards, loans and mortgages.

Score Range

FICO scores range from 300 to 850 with 300 being the lowest and 850 the highest. Few people are able to obtain an 850 FICO score, but the national median hovers around 711, according to the credit-reporting agency Equifax. Generally, a FICO score below 600 is considered high-risk and it's unlikely a lender will grant you credit.

Formula

FICO scores depend on a variety of factors. The Fair Isaac Corporation keeps the exact formula a secret, but generally the score's ratio is weighed 35 percent on your payment history, 30 percent on your outstanding debt, 15 percent on the length of your credit history, 10 percent on the amount of new credit accounts you open and 10 percent on the type of credit you use.

Improving Score

You have control over your FICO score. To improve your score, make payments on time every month, pay off as much debt as you can and limit the number of new credit accounts. Over time, your past mistakes will matter less and you'll see your FICO score increase.

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How Do I Get My Credit Information From Free Triple Credit Report?

It's almost a source of wisdom that anything described as "free" comes with a price. In the case of many on-line offers, "free" means something for free as long as you provide a credit card number for further charges.

Cute Commercials You Pay For

Freetriplecreditreport.com does not explain how much it charges for the monthly service on its homepage, but there is a monthly charge and no truly "free" credit report. Likewise, Freecreditreport.com has become popular because it's in our heads from the many catchy songs its commercials feature. And you do get a "free" credit report, but what is also required in enrollment in a monthly credit update service.Currently that monthly charge is $14.95 and is charged against your credit card. Some of the offered resources can be helpful, but there is nothing free about the report.

Truly Free Credit Report

Everyone is entitled to a genuinely free credit report through the Federal Trade Commission. You can request a free report from each of the reporting credit bureaus, all through the FTC.

Why Do I Need Credit Report?

The short answer is--you don't. If you're not financing a home or car or applying for credit, your credit score is not a part of your regular financial dealings. But what the commercials prey on is the idea that your credit report scores might be messed up. It's possible you have incorrect information on your credit report, but unlikely if you have not had identity theft or defaulted on a credit card or loan.

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The Disadvantages of Credit Ratings

Every resident in the United States needs to build credit if they plan to purchase a home, buy a car or rent an apartment. Good credit must be maintained by making payments on existing bills and loans in a timely manner. Failing to do so can lead to low credit ratings. The disadvantage of these credit ratings is that they often make it difficult to obtain necessary services in the future. While keeping a high score may be hard, it is important to do so to avoid being turned away from banks and financing companies when the help is needed most.

Credit Ratings Affect Future Loans

A disadvantage of credit ratings is how difficult they can make it to obtain a loan to purchase a home or vehicle. Banks and financing companies require good to excellent credit scores to lend money to individuals to make such purchases. The credit ratings also determine the annual percentage rate (APR) that is to be paid by the individual. If the person requesting the loan has a poor credit rating, he might be turned away from the bank or financing company, or given a high APR, which can lead to higher monthly payments.

Credit Ratings Affect Employment

Employers often run background checks on potential employees to ensure that they will not be a threat or liability to the company. Part of these background checks include viewing the potential employee's credit rating. Most job seekers are unaware of the effects that a credit rating can have on employment. Employers may feel concerned about individuals with low credit ratings, as financial troubles might affect job performances or distract from tasks that require special attention. However, if a potential employer makes the decision not to hire an individual do to low credit ratings, the applicant must be informed of it.

Credit Ratings Determine Living Situations

Individuals who are looking to rent an apartment or home within their community may find it difficult due to their credit ratings. Property managers and owners may turn away potential renters because they may have little or poor credit. These managers and owners, much like banks and financing companies, need to ensure that future tenants can pay their rent on time and in full. Individuals who have been turned away from renting can seek assistance from a friend or family member with a good credit rating to co-sign on the agreement.

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What Happens to a Cosigner if I Get Sued?

A cosigner is someone who qualifies for a loan for which the original borrower does not qualify, and the cosigner agrees to sign the loan along with the primary borrower. In doing so, the cosigner is taking on the same responsibility as the primary borrower, which means that if the primary borrower does not pay his bills, the cosigner is responsible for paying them. Essentially, it is as if the cosigner borrowed the money himself, which means he is subject to the same legal consequences as the borrower if the loan is not repaid.

Sued

If the original borrower does not pay her bills, the cosigner can be sued. Usually attempts will be made to collect from the original borrower, but if she will not or cannot pay, the cosigner is pursued. In addition, the cosigner's name will usually be turned over to a debt collection agency that will attempt to collect the debt before further action is taken. If the debt collection service is unsuccessful, the process of filing a suit to collect the money through the court begins. If the original borrower is broke, suing her will not help the creditor, so the cosigner most likely will be sued at the outset of the legal proceedings.

Foreclosure

A cosigner can have his property foreclosed, especially if he cosigned for the loan through a bank. If neither the original borrower nor the cosigner has enough funds to repay the loan, the bank can take whatever assets it deems necessary to repay the value of the loan. If the original borrower does not have enough assets to repay the loan and the cosigner does, the bank will foreclose on the cosigner's property to obtain its repayment. For example, if you cosign for the loan on a house and the borrower does not make payments, the creditor can foreclose on his house, and you, as the cosigner, will be billed for the unpaid debt. If you do not pay the debt, the creditor can foreclose on your home.

Garnished Wages

If payment is not received, a creditor can obtain a judgment to have a cosigner's wages garnished. If the original borrower does not have a job and therefore has no wages, he obviously cannot make his payments. Therefore, the creditor turns to the cosigner. If the cosigner refuses to make the payments but has a job, the creditor can seek a judgment from the court. If the court grants the judgment, the creditor can request that the cosigner's wages be garnished until the debt is repaid.

Ruined Credit

If the original borrower misses payments, stops making payments or submits late payments, it affects the cosigner's credit rating too. In addition, the creditor does not have to notify the cosigner of the missed or late payments, so the cosigner's credit could be adversely affected without her knowing it. Having a damaged credit rating could make it difficult for you, as the cosigner, to obtain financing or get loans at low interest rates.

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What Is the Time Frame to Remove Negative Credit Information Excluding Bankruptcy?

If you exclude bankruptcy from the federal credit reporting time limit, negative items may remain on your report for from two years until the end of your life. Although bankruptcy is the worst financial incident you can experience, is not always the most serious event for a credit report. Owing the government money comes with extra punishment to motivate taxpayers to repay their debt.

Identification

Most negative credit report information abides by the "seven-year reporting time limit," except inquiries, which remain for two years, and unpaid tax liens, which can remain indefinitely, according to Smart Credit. Bankruptcy usually takes more points off of a credit score than a tax lien, but the government allows the credit bureaus to report a lien forever, because it does not want to give citizens any incentive to avoid paying tax.

Exception to Tax Lien Rule

Under the Fair Credit Reporting Act (FCRA), the credit bureaus can shorten the federal credit reporting time limit. As of 2011, only Experian utilizes this provision and reports unpaid tax liens for 15 years. However, the states can also shorten the reporting time frame, but this is rarely exercised by the states. California, for example, is the only state that does this, reducing the time limit on unpaid tax liens to 10 years.

Shortcut

The FCRA also lets citizens dispute inaccurately reported negative information as long as the bureaus report it, according to the Federal Trade Commission (FTC). Because negative items are usually the most important to a credit history, it is in a consumer's interest to dispute inaccurate negative items immediately. Consumers can dispute an item through an agency's online website or by writing a certified letter detailing why the item is inaccurate. Include documentation that supports your dispute. The credit bureaus are required to investigate the claim, and if it cannot verify the validity of the disputed item, it must be removed from your credit report.

Tip

Federal law allows the credit bureaus to ignore all credit reporting time limit statutes when the borrower requests more than $150,000 in credit or life insurance or when he applies for a job that pays more than $75,000 a year, according to the FTC. As of 2011, the credit bureaus follow the federal reporting limit in all cases, but this does not mean they cannot change their policy in the future.

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