Personal Credit Rating System Problems

As credit reports and credit scores become more embedded in the social consciousness of consumers, the personal credit rating system is more important than ever. We've never known more about the formulas that determine whether we'll get approved for credit and what kind of rates we'll get, which is both a blessing and a curse. While we can now build our credit around the metrics used by the banks, we can also see the flaws inherent in the system. Credit Rating System Today's most prominent personal credit rating system, the FICO score,...

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What If There Is An Error In Your Credit Report?

Under the Fair Credit Reporting Act, FCRA, you have rights as a consumer that entitle you to accurate reporting of your credit history. Both the credit reporting agency and the entity providing information about you are responsible for the accuracy of the information on your report. The Federal Trade Commission, or FTC, is the federal agency tasked with enforcing the FCRA, and can provide some assistance in correcting errors on your credit report....

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How to Dispute the Validity of a Credit Report

Your credit history has a direct effect on your financial health. Having negative items on your credit report, such as late payments, charge-offs and collection accounts, can bring down your credit score and make it difficult for you to qualify for a new credit card or loan. Even worse, the credit bureaus who keep a record of your credit history can make mistakes, giving you a negative rating you do not deserve. By law, you have the right to review your credit report and dispute inaccurate information. Instructions How to Dispute a Credit Report...

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How Can I Get a Credit Report on a Person Who Is Not My Relative?

Creditors use credit reports to help determine if someone is a good candidate for a loan or other form of credit. Every person who has ever used credit has a credit report, and while you can look at your own report for free once a year, you cannot look at someone else's report without permission. You cannot even view your spouse's credit report unless you have legal permission, and looking at a non-family member's report is no different. Instructions 1 Ask the person for a copy. The easiest way to look at someone else's credit report is...

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Free Credit Score Online & No Credit Card Required

A credit score is a three-digit number that represents your creditworthiness based on information in you credit report. While it is impossible to calculate your credit score yourself, you can manage whether your credit score increases or decreases each month. You can obtain a free copy of your credit report once a year through AnnualCreditReport.com to monitor your credit-related axctivity, and you can order your credit score for a fee or, in some instances, for free. Trial Memberships Sometimes you can obtain a credit score free as part...

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How Much Does Your FICO Score Change Once a Charge Off Has Been Taken of Your Credit Report?

Charge-offs can do serious damage to your credit score, so getting them removed is an important step in improving your credit. Once removed, you should see an improvement in your score, though the extent of the improvement depends on other factors, including the age of the debt. Credit Scores A credit score is a number that represents your financial history, particularly your use of credit. A higher credit score indicates a history of responsibly using of credit. There are several different formulas used to develop credit scores, though...

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Which Credit Score Do Lenders Use?

A credit score can determine whether you get a loan and affect other aspects of your life, such as getting a job, but not all credit scores are the same. Most lenders use the same formula to calculate your credit score, but they rely on information gathered by a third party. However, there are several alternative scores lenders can consult. Identification As of 2010, most lenders use a credit scoring formula developed by the Fair Isaac Corp., according to Kiplinger. The FICO score is so common among lenders that credit scores are often...

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