Does Credit Counseling Hurt Your Credit Score?

The idea that credit counseling hurts your credit score is for the most part mistaken. However, some credit counseling programs may cause harm to your credit score while helping you to resolve your debt. Credit Score The myth that credit counseling hurts your credit score is a persistent one. "The credit score system ignores any reference to credit counseling that may be in your file," BankRate reports. In other words, your credit score does not know whether you are receiving credit counseling. Credit Report Credit counseling...

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What Is the Difference Between Transunion & Equifax?

TransUnion started reporting credit histories in 1969 after it had purchased the Credit Bureau of Cook County in 1968. TransUnion, itself, started as a railcar-leasing company. Equifax has been reporting credit histories since 1899. Equifax's original name was Retail Credit Company, which tracked individual spending habits for the local Retail Grocer's Association. Function TransUnion and Equifax collect personal information that reflects...

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How Does Putting Somebody on My Credit Card Affect My Credit?

You might help a friend or loved one build his credit history or access a line of credit he otherwise could not get by adding him to your account, but this person could wreck your score while, in some cases, doing no damage to his own credit. Whenever you add someone to a credit card account, you should trust the person and set ground rules on account use. You can even help him get a separate account. Joint Account Adding somebody as a joint account holder makes the person a co-owner of the account, so he can use the credit limit as he...

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Is it Possible to Start a New Personal Credit Record?

People with poor credit usually do best to avoid credit repair clinics, which sometimes claim they can give you a new credit record. You cannot wipe your credit file; otherwise consumers could abuse credit and have few repercussions. Instead of trying to get a new record, you should up clean your current file -- and probably get credit sooner than you think. Why It Is Not Possible The credit rating agencies track your financial habits via your Social Security number (SSN). Theoretically, you could obtain a new credit record using a Tax...

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How to Request an Update On a Credit Score With a Letter

Credit reporting agencies, such as TransUnion, Equifax and Experian, provide records of individuals' credit history and past bill-paying behavior. These agencies also assign a numeric value, called a credit score, to the individual's credit history. Creditors supply the information for credit reports, and federal law requires credit reporting agencies to only report accurate information. If you notice outdated information that could impact your credit score on your credit report, you have the right to request an update to your credit file. Instructions...

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Does an H&R Block Card Affect My Credit Score?

The H&R Block Emerald card -- a prepaid card which requires you to load funds from direct deposit payroll or at an authorized retailer -- might save you hundreds of dollars in checking fees and build some type of credit history. If you want to use this card to improve your credit history with the national credit reporting firms, you are out of luck. The only way this card can build history is through an alternative agency, which lenders may or may not accept. Identification As of 2011, the only creditable account H&R Block offers...

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How Often Can You Request and Get a Free Credit Report?

Every individual has a credit file. Companies offer to give you paid access to your credit report for a fee. However, you are eligible to receive a free copy of your credit report annually. Consumers should check their credit report at least one every 12 months. Identification The Fair Credit Reporting Act defines the term "consumer report" as any written, oral or other communication of a consumer's credit history, including how often and...

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What Do Revolving Trade Lines Mean on a Credit Bureau?

Revolving trade lines are credit products that creditors can use multiple times. These accounts include credit cards and equity lines. The accounts "revolve," meaning the balances fluctuate from month to month based on usage. The term "trade" simply means account. The balance you owe, relative to the maximum line amount, has an impact on your overall credit score. Credit Accounts Credit accounts fall into two categories: amortizing loans and revolving trade lines. Amortizing loans involve a borrower making fixed monthly payments of principal...

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How to Get a Truly Free Credit Report

If you need to get a copy of your credit report, you will never pay anything if you know where to look. There is one website that exists to help consumers obtain a free copy annually from each of the three major bureaus. This will enable you to keep close tabs on your record, whatever your purpose. Instructions 1 Access annualcreditreport.com. After you log on securely, you will be directed to one of the three credit bureaus --- Experian,...

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Why Did My New Auto Loan Lower My FICO Score by 60 Points?

When you get any type of new credit, including an auto loan, your FICO credit score will drop. The exact number of points depends on your credit history before the loan. People who have not been managing credit for very long or who have only a couple of credit accounts will see a greater impact than those with a lot of credit history. Credit Inquiry Credit inquiries, which occur when a lender checks your credit report in response to a loan application, hurt your credit score. If you did all of your rate shopping within a two-week period,...

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Quick Ways to Improve Your Credit Score

A borrower's credit score is a direct reflection of his past and current credit history. A lender uses that credit score to determine a borrower's ability and willingness to repay new debt. With a few simple fixes, a borrower can quickly improve his credit score prior to applying for a new debt. Check Report for Errors Pull a copy of your credit report. A free one can be obtained from AnnualCreditReport.com. Check your report for errors and...

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What Are the Two Major Sources of Information About a Person's Credit?

Your credit is used to determine the risk that you'll default on money you borrow on a credit card or through a loan. Your credit report and credit score are two major sources of information about your credit. Credit Report A credit report is a compilation of most of your credit-based accounts, including credit cards and loans. It gives details about how much you've borrowed and whether you've paid on time. Credit Score Your credit score is a numeric summary of the information in your credit report. Credit scores range from 300 to...

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How to Cancel Credit Expert

Good credit is one of the keys to getting necessary loans or low interest rates. Because many people don't know their current credit score, companies offer free credit score reports. However, some companies offer the reports for free only if you sign up for a membership and then make it exceedingly difficult to cancel the membership prior to being billed for the additional services. This article explains how to cancel Credit Expert from Experian. Instructions Call 1 Call Experian's toll-free number (1-866-252-8811). Call this number to cancel...

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Does Your Credit Score Go Up if You Have a Cosigner?

When your credit score is low, lenders might ask you to get a creditworthy co-signer for your loan. The co-signer is a person who signs the loan documents with you as a pledge to pay back the loan if you do not. The lender then gives you the loan based on the co-signer's good credit history. Having a co-signer does not directly affect your credit score, but you might experience a few indirect effects. Credit Reporting Each of your credit accounts, including loans, credit cards and lines of credit, appears on your credit report if the lender...

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A Legitimate Way to Establish Credit if You Don't Have a Credit History

Your credit score is based on your past history of credit use, according to major score provider FICO. Lenders want to see established positive records before they open an account for you. This makes it tricky when you are just starting out and have no accounts yet. Liz Pulliam Weston of MSN Money explains that secured credit cards are a legitimate way to establish some records that will eventually qualify you for other other cards and loans. Instructions 1 Save several hundred dollars to provide as collateral for your secured credit card...

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Ways to Build My Credit Score

A credit score, also known as a credit rating, is a numerical score used by credit card companies and lenders to assess the likelihood that a person will pay back a loan. Generally, a failure to pay back a loan within the agreed-upon time frame will lower one's credit score, raising the amount of interest the borrower will have to pay on future loans. Fortunately, for those holding low scores, there are a number of ways of building up one's rating....

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How Are Credit Scores Calculated?

Though it may not seem like it, our lives are constantly governed by one thing--our credit score. A few simple numbers decide whether you get approved for things like credit cards and bank loans, and decide just how much interest you're going to pay. A high number means a lifetime of low interest rates and large limits. A low number can mean trouble. This poses the question: How exactly are rates calculated? Thankfully, the answer is a simple one....

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How Will a Repo Affect My Home Loan?

Car repossession may wreck your credit, but your home loan is probably safe. However, in some cases the bank can cause you to miss payments, leading you to default on the mortgage. This can happen only when you bank with a single institution. Thus, going to separate creditors mitigates the chance that a car repossession also affects a mortgage. Immediate Effect As long as you already have a home loan, a car repossession will not affect your mortgage, according to Bills.com. In the credit card industry, defaulting with one creditor allowed...

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What are Credit Scores?

Your credit score is yet another number that becomes a part of your life. It is unlike your Social Security number because your credit score can change. A credit score is somewhat similar to what your grade point average was to you in school. Just as your GPA reflected how well you were doing in school, your credit score reflects how well you are doing with the money you borrow. Credit Scores Whenever you take out a loan, charge items on your credit card or pay rent or a mortgage, your creditors report your activity to the three major credit-reporting...

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Does Marriage Affect Your Credit Score?

When you say "I do" and sign your marriage license, you make a legal change that affects many areas of your life. Although getting married does not change either of your credit scores immediately, the steps you take together as a married couple could impact both of your credit scores. Separate Credit Scores Marriage does not directly impact your credit score. Your credit scores are not averaged into one joint credit score. After you get married, you and your spouse still maintain entirely separate credit reports and credit scores. Therefore,...

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The Length of Credit History

The length of time items stay on a person's credit history is ruled by several guidelines, Most people are concerned with the negative credit information, which remains on a person's credit report for seven years and then is removed; however, there is other information, such as concerning bankruptcies, which remains on a credit report for a longer time. What Lenders Look For In general, a person needs to have at least 12 months of established...

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Is it Possible to Remove a Charge-Off From My Credit Report?

A charge-off is a very damaging item to have reported on your credit report. Charge-offs occur when you fail to repay a loan for a significant portion of time. Once your credit report has a charge-off on it, you should take any steps you can to remove it, as it will significantly affect your chances of getting additional credit. Charge Offs A charge-off occurs when a creditor determines that an uncollected debt is no longer an asset. Charge-offs...

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Can You Get a Free Credit Report in Florida?

Floridians, like everyone throughout the United States, have records at the three major credit reporting agencies. TransUnion, Experian and Equifax collect, store and sell personal and financial data. The Federal Trade Commission explains that Americans, including Florida residents, are entitled to review those records regularly at no cost under a federal regulation called the Fair Credit Reporting Act, or FCRA. Definition Credit reports are compilations of data that include a person's current and past credit card accounts, outstanding...

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How to Get a Copy of a Credit Report When You Are Refused Credit

If you are denied credit for any reason, you have the legal right to obtain a free copy of your credit report, thanks to the Fair and Accurate Credit Transactions Act of 2003. Although the report does not include your credit score, it can help determine any inaccuracies or problems with your report. Instructions 1 You should get a credit denial letter by mail. The institution that denied you credit must provide the reason, as well as the name of the credit agency that supplied the report. By law, credit denial letters must be provided within...

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Will My Credit Score Drop If I Order My Credit Report?

The Fair Credit Reporting Act governs nationwide credit reporting agencies and consumers' rights to check their credit scores. Ordering a credit report generally does not have an impact on a consumer's credit score, with some exceptions. Facts Nationwide credit reporting agencies like Equifax and Experian have to provide consumers with a free copy of their credit report at least once every 12 months, according to the Fair Credit Reporting...

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How Does Settling a Debt Affect a Credit Score?

Settling your debt with your credit card issuer for less than what you owe affects your credit score a lot, according to the Kiplinger website. This black mark on your credit remains for seven years. Effects Typically, your credit card issuer only settles with you if you are late on your payments. If the credit card company agrees to a settlement, the usual practice is to report the number of days you were delinquent and the amount of the...

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How to Get a Credit Card With Terrible Credit

Getting credit with a terrible credit history can prove challenging. Although credit is needed to improve a bad score, lenders and banks may not accept your applications. While you may not qualify for a major credit card or other types of financing with a terrible credit history, getting credit is doable. The key is knowing where to apply and choosing the right type of credit card. Instructions 1 Get an income source. Credit card applications...

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Help to Repair My Credit Report

A credit report is a record of your financial borrowing and repayment history, including late payments. Credit bureaus maintain your credit reports in the event you, or a lender, needs to examine your credit worthiness. Having a bad credit report can cause you to pay higher interest rates or be ineligible for loans. However, it is never too late to repair a credit report. Creating a Budget A bad credit report is typically a consequence of delinquent debt payments or debt that is out of control. When you create a monthly budget, you will...

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Levels of Credit Ratings

Your credit is checked anytime you apply for a mortgage, car loan or credit account. Potential employers may also check your credit, as do banks when you want to open an account. Your credit score, or rating, is a summary of your credit history. Lenders rely on credit scores to assess risk. They want to know how likely you are to repay the money you want to borrow. Description Your credit score is based on the contents of your credit history, or credit report. Consequently, a good credit history results in a high credit score. Although...

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Why Will Paying Off Collections Hurt Credit Scores

When you are trying to improve your credit score, you may think that paying off old collections will help. Think again. You may be surprised to learn that paying off old debt could hurt rather than help your credit score. Misconceptions If you are working to boost your FICO credit score, there are a number of steps you can take. Some are obvious, such as staying current on paying your bills. But others are not so clear and may be counter...

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If You Pay Your Rent Monthly Does it Affect Your Credit History?

Paying your rent on time used to do nothing for your credit history. It was only if you went seriously into arrears that your payments would show up on your credit report. But changes at one of the credit bureaus, Experian, mean you can now help your credit history by keeping current with your rent. Defaults The only information that used to be reported to the credit bureaus about rent payments was debts that went into collection. If you...

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National Credit Rating Agencies

Credit rating agencies are responsible for providing investors with information regarding corporation and organization creditworthiness. Credit rating agencies are different from the more widely known credit reporting agencies. While credit reporting agencies are responsible for compiling a wide variety of financial data necessary for loan decisions for individuals, credit rating agencies do the mathematical and statistical math involved in placing a number (rating) on an organization or corporation's credit history. Standard & Poor ...

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Does a Mortgage Payment Made During the Grace Period Affect Credit Score?

Credit scores are determined based on the information your creditors provide to the credit reporting agencies. Creditors do not report your payments as late unless your payment is a minimum of 30 days late. If your creditor receives a payment during your grace period, it has no effect on your credit score. You should mail your payment at least two weeks before the grace period ends, however, to ensure it arrives on time. Scoring The exact method of scoring is proprietary information, but all three credit reporting agencies are believed...

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How Does Credit History Work?

The Past Credit histories are collected and cataloged by the major credit reporting bureaus: TransUnion, Experian and Equifax. The process behind collecting the data is relatively simple; lenders report to the credit bureaus, and the bureaus in turn keep track of all the information. Every consumer who has ever applied for credit or been granted credit by a reporting lender has a credit history. The history lists pertinent information that...

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How to Transfer Your Credit History to a Newly Assigned SSN

When you are assigned a new Social Security Number (SSN), your previous credit history will not automatically transfer. Credit history is not kept by the Social Security Administration. Instead, the three major credit bureaus, Experian, TransUnion and Equifax, keep their own records of your credit history. Therefore, to transfer your credit history you will need to notify each of the credit bureaus directly and provide evidence of your claim. Instructions...

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How to Report Corrections to All the Credit Bureau Agencies

Errors on your credit report can lower your credit score and inhibit your ability to open new accounts. Fortunately, you are entitled to copies of your credit reports and can notify the credit bureaus of any corrections that are needed to remove erroneous information. You will need to check your reports from all of the bureaus and report any problems to each individual bureau to make sure they are corrected. Instructions 1 Request a free copy...

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