What Factors Influence My FICO Score?

The FICO score is the most widely used credit score by lenders to determine whether to issue you a loan. The algorithm developed by the Fair Isaac Corporation takes information in your credit report and converts it to a three digit number, between 300 and 850, with higher scores meaning lower risk. Your FICO score is based on five categories: your payment history, how much you owe, how long you've had credit, what credit you have applied for recently,...

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How Do Credit Reports Work?

The information in your credit report can help you buy a house -- or it can prevent you from doing so. It can get your application for a credit card accepted or rejected. It can make a difference in getting the apartment you want, the car you want and the job you want. That's why it's so important to understand how credit reports work. Credit Bureaus In the United States, three major companies produce credit reports: Equifax, Experian and TransUnion. These companies, called credit bureaus, collect a range of information on tens of millions...

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Tricks to Fix Your Credit

Bad credit haunts you when you try to get new accounts from banks and other lenders. The Federal Reserve Bank of San Francisco explains that your credit reports tell a detailed story of your financial dealings, including delinquent payments and excessive debts. You can use a few tricks to clean up those bad records and make yourself more attractive to creditors. Dispute Negatives Credit bureaus frequently make mistakes in their files, and the Divorcenet website advises that you can use this tendency to fix your credit. Every small error...

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Does a Credit Line Increase the Soft or Hard Inquiry?

You should ask your credit card company for a limit increase every so often, because the percent of your credit limit used, called credit utilization ratio, can impact your credit score. However, requesting a limit increase can put you over the edge when a lender determines whether or not you are an acceptable risk. Identification Some credit card companies increase the credit limit on an account at set intervals, such as every six months, while others perform a hard credit inquiry before granting a limit increase. If the company offers...

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What Does a Credit Bureau Do?

In the United States, there are three major credit bureaus, TransUnion, Equifax and Experian. Also called consumer credit reporting agencies, the three gather information on major credit use for every individual. Their role is essential in helping lenders make informed decisions about borrowers and helping borrowers get the credit they deserve. Gather Credit Information Lenders report information on each of their customers to credit bureaus. The information includes the name, Social Security number and address of the account holder, along...

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How to Get Online Credit History

Your credit history affects your ability to secure housing, loans and auto insurance. A poor history may even affect your ability to secure a job. According to MSN Money, as many as 80 percent of credit reports have some type of error. Some of these errors, such as late payments or inaccurate accounts, will lower your credit score. Credit reports are available online, allowing you to review your credit history. Instructions 1 Order a credit report. A free credit report is available through AnnualCreditReport.com (see Resources) once a year...

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How to Get a Rapid Rescore Within 3 Days

A low credit score can prevent you from qualifying for a favorable interest rate on a loan, such as a home mortgage. In many cases, a rapid rescore can raise your credit score and lower the interest rate, making your home purchase more affordable. A rapid rescore is a reevaluation of your credit score after a major change has been made. Although a rapid rescore can be completed within three days, there is no guarantee it can be achieved that quickly. However, rescoring is often accomplished a few days after changes have been made that affect your...

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How to Terminate Your Car Lease

While leasing a car offers its advantages, you need to be clear about the terms and conditions of the lease agreement before signing it. Dealerships make it difficult for you to terminate a car lease early, so if you dont like the car or cant continue making the payments, you can't simply return the car and walk away. Returning a vehicle before the lease expires will have an effect on your credit. Instructions 1 Find out what the car is worth....

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How Credit Repair Works

Disputes You may be able repair your credit by removing negative items from your reports through filing disputes with the three major credit bureaus. The law says that every item on your credit reports must be accurate and verifiable. If you find negative items that you believe to be incorrect, you have grounds to challenge them. You can do this via an online form. The credit bureaus must investigate the item, and if the creditor cannot verify...

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Does a Cosigner Need to Have Good Credit for an Apartment?

A landlord sometimes requires potential tenants to get a cosigner if they cannot qualify for a place on their own, but having a cosigner does not guarantee approval for anything. Thus, you should ask someone to cosign a loan if they have a history of responsible borrowing and repaying debt on time. You may even be able to avoid use of a cosigner altogether. Identification A cosigner should have good credit to help you qualify to rent an apartment. In general, a score of 620 is considered the cutoff for good credit for most creditors, according...

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FICO Classification

Every credit reporting agency has its own system of determining credit scores. The system known today as FICO comes from the name Fair, Isaac and Company. That's the company that developed the grading system to provide potential lenders with a way to evaluate the risk involved with a credit applicant. Other companies have largely copied the model. Significance The different models have created problems because each company also has different...

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Bankruptcy and Foreclosure on a Credit Report

Bankruptcy and foreclosure can be two of the most disastrous financial events a person can face. In a foreclosure, a bank takes possession of an individual's home due t the homeowner failing to pay his mortgage. In a bankruptcy case, a person declares himself unable to repay his debts and either develops a three- or five-year repayment plan or receives a debt discharge from a bankruptcy court. Both of these events have major impact on a person's credit report. FICO Score Impact FICO scores are numbers that rate an individual's creditworthiness....

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What Are the Effects of a Credit Bureau Judgment?

A judgment means that a creditor had to take you to court in order to get you to pay a past-due debt. If you have a credit bureau judgment it can affect you in a number of ways. The best thing to do is contact the creditor before the lawsuit and make arrangements for payments of the debt. It may be possible to negotiate some favorable terms with the creditor including paying less than the full balance. Once a creditor has received a court judgment, there are a number of actions he can take to pursue the balance. Credit Score A credit bureau...

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Programs for Rebuilding Your Credit

Bad credit is generally the result of having high amounts of debt, spending more than your credit limit and paying your bills late or not at all. Consequently, bad credit can make you miss out on receiving job offers, moving into a first-choice apartment or securing a large loan, like a mortgage. Programs that can help you improve your credit score can also help you eliminate debt and learn money-management skills. Debt Consolidation Programs Debt consolidation programs, also called credit card consolidation programs, can help rebuild your...

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Absolutely Free Credit Report Without Using a Credit Card

Here is some great news for people interested in their credit history: You do not have to pay to see it nor give your credit card number. However, you are probably just as interested in seeing your credit score, because lenders often make a deal over this number. Getting your credit score likely requires using a credit card, but not always. Identification Receiving a free annual credit report from one of the national credit bureaus does not require the use of a credit card, according to the Federal Trade Commission. You will have to provide...

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What Is Contained in a Credit Report?

A credit report is a record of identifying and bill-paying historical information. Most U.S. citizens, who are over the age of 18, have a credit report. When someone applies for a loan or a credit card, the lender will view of copy of that person's credit report to determine if he is a good candidate to borrow money. The credit bureaus in the United States are Equifax, Experian and TransUnion. Personal Information Each credit report contains a person's full name, date of birth, Social Security number, and current and past addresses. ...

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How to Update a CreditKeeper Credit Report

CreditKeeper is a "comprehensive program that provides you with the tools to take control of your credit," according to its website. Users pay a monthly fee for the service to monitor their credit reports through the three major credit reporting agencies, be able to correct errors found on their reports, and learn ways to improve their credit rating overall. Some of the features subscribers can take advantage of include tracking their progress from...

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How to Dispute on Equifax

Disputing an aspect of an Equifax credit report is as simple as filling out an online form on the company website, but doing so effectively requires documentation. The right to dispute a credit report is guaranteed by the Fair Credit Reporting Act (FCRA), although the cost of investigating a dispute is borne by Equifax itself. Instructions 1 Gather documentation that supports your contention that some aspect of your credit report is inaccurate. Written proof of an agreement with a creditor is crucial to proving a dispute. An oral agreement...

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Credit Checks With Instant Results

Consumers can see how a lender might view their creditworthiness almost instantly and for free at least once a year. As of 2011, the national credit bureaus only offer instant credit checks when the consumer requests a report online. The other options require the agencies to mail a report. Purchasing additionally services may be necessary if the consumer wants to know when their report changes immediately. Identification The only way customers can get their credit report instantly is after verifying their identity by providing their personal...

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Who Can Report to a Credit Bureau Agency ?

A person's character, reputation, and lifestyle are often judged based on a credit report. Various corporations and entities report to credit bureau agencies and these reports can help or hurt an individual's credit. A person's credit report is used to analyze financial history and often determines past and present fiscal responsibility. There are three major prominent reporting agencies that constitute the credit bureau industry--Experian, TransUnion, and Equifax. These three agencies can help an entity determine if a person is credit worthy....

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What Raises a Credit Score

The main type of credit score that lenders use when evaluating an application for credit was developed by Fair Isaac Corporation and is generally abbreviated FICO. Individuals can raise their FICO credit scores by managing credit effectively across multiple areas that appear on the credit reports compiled by TransUnion, Equifax and Experian. Consistent Payment History Making payments on time and avoiding negative payment items, including collection accounts and bankruptcies, is the single most important way to raise a credit score. The...

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10 Tips to Improve Your Credit Score

Credit history reports and credit scores are used by financial institutions, utilities, retail stores, landlords and others to determine the creditworthiness of individuals. Credit reports contain historical information on the types of credit used and the amounts owed. Credit scores rank individuals on their credit history. Individuals with bad credit histories can improve their credit scores through sacrifice and perseverance. Verify the Credit Report You are entitled to one free credit report per year from AnnualCreditReport.com, which...

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How to Check for Credit Fraud

Credit fraud is a form of identity theft in which someone steals your personal information to open an account in your name or use one or more of your credit cards without your knowledge. You can check for credit fraud by regularly reviewing your credit report for suspicious activity. Order your credit report from a credit monitoring company, such as Experian. Instructions 1 After receiving your credit report, print it out. Credit monitoring...

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How to Remove a Fraud Alert From a Credit Report

Fraud alerts are useful if you have been a victim of identity theft, or if you have reason to believe you may become one. There are two types of fraud alerts: a temporary alert and a permanent alert. The temporary alert lasts for 90 days, after which, it is automatically removed. The permanent alert is not truly permanent; it lasts seven years. If you wish to remove a fraud alert from your credit report, you must submit your request in writing; fraud alerts cannot be removed online or by phone. Instructions 1 Gather the documents needed...

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Can I Get a Car With a 500 Credit Score?

A credit score of 500 does not bode well for a car shopper. While it does not mean you cannot find an auto loan, it will be challenging. Ratings of 500 to 579 are considered "very poor" by the Fair Isaac Company, which developed the FICO system. With a score of 500 you will not find an auto loan with a low, or even moderate, interest rate, and it may take time and a special financing program to find a loan at all. Identification Though the FICO model has a floor of 300, just finding a willing lender when you have a score of 500 will be...

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How to Get My Credit Rating in British Columbia

Personal credit is measured in Canada using the North American Standard Account Ratings system, which assigns a number from 0 to 9, with lower numbers being more desirable. A rating of 1 means you always pay your bills on time, whereas a 9 indicates that you have outstanding debts and have not responded to collection requests. Credit ratings differ from the credit scores commonly used in the United States, which judge your financial health in three-digit...

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What Caused My Credit Score to Drop?

Your credit score determines the interest rate you pay for loans and mortgages. It also influences the size of auto and home insurance premiums. Frequently, potential landlords and employers base their decisions on your Fair Isaac Corporation (FICO) score. It is important to check your credit history periodically and correct any circumstances that caused your credit score to drop. Credit Card Fraud Although you have some control over the...

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Why Did My Good Credit Card Reports Come Off My Credit Report?

You may have paid off several loans with a perfect payment history, but the credit bureaus usually eventually purge positive information some time after the account is closed. Theoretically, an active account in good standing can stay on your report the rest of your life, however. Identification Positive credit information usually stays on your account for 10 years after you close an account without a missed payment or any other negative activity, according to Equifax. If the account has any derogatory information on it, such as a charge-off,...

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How Are FICO Scores Calculated?

Major Categories About two thirds of the FICO score is based on just two categories. The first, payment history, accounts for 35 percent of an individual's credit score. Credit history refers to the extent which you make your credit payments on time. Delinquent payments lower a credit score significantly, as do adverse judgments such as liens or bankruptcy. Late payments are grouped into 30, 60 and 90+ day categories, with the overall score...

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Where Do I Get Official Credit Reports?

The Federal Reserve Bank of San Francisco explains that credit bureaus compile reports on every person who uses credit credit cards, loans and other accounts. The bureaus make money selling this official information to lenders and other firms who make decisions on loans, insurance applications and employment. Federal law lets consumers see their own official credit reports, too. Definition A credit report is an official record of a consumer's financial activity, according to the Federal Reserve Bank of San Francisco. It contains demographic...

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Does a Credit Card Limit Matter in a FICO Score?

Fair Isaac Company uses five factors to determine a credit score. While the actual credit limit on a line of credit is not a direct factor in a credit score, factors connected to the limit play a role. Credit Card Limit A credit card limit is the maximum amount that can be charged on a credit card in a specified period. The creditor sets the amount. FICO Scores FICO scores are determined through payment history, amount owed, length of credit and types of credit. Amounts Owed Thirty percent of a FICO score is determined...

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Financial Advice for the Unemployed

The thought of not having a job or steady source of income can create panic and fear. It can take months to find employment in a bad economy. If you don't generate income soon, you may be in jeopardy of losing your home and other personal possessions. Fortunately, there are ways to survive unemployment and keep your head above water. Claim Unemployment Beneftis Being fired or laid off from your job may make you eligible for unemployment compensation. Visit your local employment office to inquire about eligibility and submit a claim. Use...

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The Uses for a Cross-Cut Shred

The cross-cut shred design cuts paper into confetti pieces. All information on the shredded paper is undecipherable. Any bank numbers, social security numbers, addresses and names turn into little pieces of paper. Not only does the cross-cut shred make confetti out of paper it chews up CDs and DVDs in some machines. Some brand name shredders have a powerful enough motor to pull a plastic CD or DVD through the cross-cut blades. These shredders can...

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Will a Settlement on a Credit Card Affect My Credit Rating?

Your credit rating is a mathematical formula that indicates your credit worthiness. Potential lenders, landlords and insurance companies use the number to determine loan eligibility, interest rates and premiums. The higher your credit rating, the less risk you represent. Negative items that affect your credit rating include delinquent payments, judgments and a settlement on a credit card. Definition Your credit rating is derived from information...

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Can Someone Run My Credit Report Without My Knowledge?

Your credit report contains personal information regarding how you spend money and how you repay bills, and it is difficult for Americans to keep their credit history private. The federal government passed the Fair Credit Reporting Act (FCRA) in 1970 to address issues such as consumer privacy, but much of the language in the act leaves room for interpretation, often making it possible for someone to run your credit report without your knowledge. Prescreening Access Companies extending credit or insurance offers to consumers via the mail,...

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Section 605(c) of the Fair Credit Reporting Act

The Fair Credit Reporting Act provides consumers with the right to see their credit report and dispute any reports that are not correct. Written in 1970, the act was revised in 1996 to give consumers more rights to their information. In 2003, Congress revised the act to provide consumers one free report each year and guaranteed consumers a fair price on any extra reports. Length of Time Section 605(c)(1) states that negative information must...

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Does Leaving Your Lease Affect Your Credit Score?

Leaving or walking away from a lease can affect your credit score in certain situations. A lease agreement is a contract. People who lease homes or apartments agree to pay rent for a certain number of months. If they break the lease by leaving early, the landlord can sue for the balance remaining on the agreement in most cases. The same is true for other types of leases, including automobile leases. A lawsuit could lead to a court judgment and garnishment of your wages or bank account or wages -- all bad for your credit score. Considerations...

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