Do Credit Bureaus Track What I Buy?

Savvy borrowers know that the three major agencies track their financial history, such as whether they pay their credit cards on time every month. You may think that the credit bureaus can also see what purchases you make and whether you buy "frivolous" things, but the credit bureaus do not care what you buy. In some cases, however, they do know your purchase history. Identification The major bureaus -- Equifax, Experian and TransUnion -- do not itemize your purchases on a credit report. Credit reporting agencies are more concerned with...

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How to Obtain a Credit Score By Phone

Credit scores are important for buying a house, buying a car, obtaining credit cards, renting an apartment or even getting a job. A low credit score gives the impression of poor financial decisions while a high credit score gives the impression of good financial decision-making skills and abilities. Credit scores can be obtained at any time. Common ways of obtaining credit scores are over the Internet at credit report websites, through the bank...

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How Short Sales Affect Your Credit for a Couple of Years

When your mortgage debt exceeds the value of your property, your lender may allow you to sell the house for less than you owe. Lenders refer to these transactions as short sales. Although your lender approves the transaction, you essentially failed to honor your original loan agreement and therefore a short sale can have a damaging impact on your credit score for a number of years. Closed Accounts When you take out your mortgage, your lender informs the credit bureaus about the size of the loan and the monthly payments you are required...

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What Information Do Apartments See When Checking Credit?

Part of the process of getting a rental property typically involves getting a credit check. When a landlord runs your credit, he can gain valuable information about your past and whether you will be a good tenant or not. When this type of credit check is run, the landlord can find out about your other accounts and payment history. Running a Credit Check When the landlord wants to run a credit check on you, he has to get permission first. You will need to sign a document that states you give the landlord permission to run a credit check....

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How Do I Quickly Rebuild a Credit Score?

More than 30 million Americans have credit scores in the low 600s or under. If you find yourself in this situation, you will pay more for any kind of credit. Whether your bad score results from unemployment, illness or careless management, you can improve it if your finances have stabilized and you manage them responsibly. Better yet, several fast techniques to repair your credit cost nothing. Instructions 1 Get your credit reports and scores....

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Improving Credit by Paying Old Balances

Old balances on your credit reports are probably accounts that are no longer active. Chances are you stopped paying on the accounts at some point and they were closed by the original creditor, who then sold them to a debt collector. The accounts are now considered to be collection accounts and will cause a drag on your credit scores. In some instances the dormant account is not sold to a debt collector but is kept in-house with the original creditor's...

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Is it Safe to Get a Credit Score From FICO?

A consumer's FICO score provides a rating for the consumer based off the consumer's credit report. Many creditors use the FICO credit score when determining whether to accept a loan or credit application and what rates to offer the consumer. Consumers should check their own credit scores on a regular basis, especially before applying for large credit or loan accounts. Ordering a FICO Score Consumers can order a copy of their credit score from the Experian, TransUnion or Equifax websites or from MyFico.com. Consumers can also request their...

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How to Rebuild Credit With Rent-to-Own

Rent-to-own scenarios are an ideal way for someone with bad credit to rebuild his credit without using credit cards. Contrary to popular belief, a consumer can improve or increase her credit score without credit cards by using rent-to-own opportunities, promptly repaying student loans and/or auto loans, and consistently reporting to PRBC (Pay Rent, Build Credit), a credit reporting agency. Instructions 1 Start with rent-to-own appliances and/or...

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How to Establish a Credit Rating in Canada

Like the United States, Canada has three credit bureaus that keep track of money borrowed and how promptly it is paid back. Having a good credit history in another country isn't good enough to establish good credit in Canada. You have to build a good credit history when in Canada as a resident. The simplest way to build a good credit history is to open a secured credit card and pay at least the minimum payment on time every month. Instructions...

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How to Obtain FICO Score Used by Lenders

The Fair Isaac Corp. created the FICO score used by lenders. Your FICO score is compiled from data from the credit-reporting bureaus TransUnion and Equifax and is based upon your payment record, credit history and outstanding debts. Your use of credit cards is also monitored. Your FICO score ranges from 300 to 850. Scores above 700 are good, while scores below 600 are considered to present a risk to lenders. Your FICO score is used by most lenders...

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What Does Buying Trade Lines Mean When Referring to Credit Scores?

People needing good credit instantly might hope that they could just buy a credit history--and they can. The credit scoring model used by most lenders has a loophole that lets consumers piggyback on the credit of another party. In 2011, this option is back after several years of being ignored by the bureaus, but only for people legitimately connected to an account. Identification Buying trade lines refers to the practice of paying a company or private individual to add a consumer to a credit account in good standing. When a consumer becomes...

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Fastest Ways to Increase a Credit Score

Before you apply for a major loan, such as a mortgage, you want to get your credit into the best shape possible. Even a difference of a few points can cost you hundreds or thousands in interest over the lifetime of your loan. It's a simple fact -- those who have a higher credit score are eligible for the best rates. Quickly increase your score if you want a better deal. Fixing Errors Comb through your credit report at each of the three bureaus -- Experian, Equifax and TransUnion -- and look for errors. You may notice an account that you've...

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Does It Affect Your Credit if You Get a Credit Card and Not Use It?

A new credit card is reported to the credit bureau by the card issuer and will appear on your credit report. Your payment history accounts for 35 percent of your FICO score. Negative payment history remains on the report for seven years, and positive history can remain for up to 10 years. If you don't make charges on the credit card, however, that credit card can still impact your FICO score in a number of ways. Credit Utilization The creditor will report the credit limit of the card as well as how much of that line of credit is used. Thirty...

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Is My Credit Score Affected If Someone Conducts a Credit Search on Me?

Consumers may access their credit reports for free once a year, according to the Federal Trade Commission, if they use the Annualcreditreport.com website. They may buy additional copies directly from Equifax, Experian and TransUnion. These self-inquiries do not affect their credit scores. Banks, credits and other companies conduct credit report searches when a person fills out an application. These inquiries do affect the score. Definition A credit score is a three-digit number meant to predict a consumer's likelihood of defaulting on bills...

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How to Use Credit Card Dispute Forms to Your Advantage

If you've recently received a copy of your credit report from Experian, TransUnion and Equifax you believe that contained errors, you can't simply sick back and do nothing. Instead, you have to take action to get those items removed from your credit report now so that they don't negatively affect your credit rating. And, you do this by filling out a credit card dispute form. In this article, we'll discuss how to use credit card dispute forms to your...

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How Long Do You Owe Debt After a Charge Off?

If you aren't paying your bills no matter how much your creditors ask you to, then you may watch your credit score plummet. This is because somewhere in the area of 6 to 9 months after you stop paying on your account, your creditor will list the amount owed as a charge-off. This is an accounting term that means your credit no longer expects to get paid and has moved the account to bad debt. Before you start thinking you're off the hook, having an account charged off will show on your credit report making it impossible for you to get a good rate...

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How to Get Creditors to Remove Negative Reports

If a company provides a negative report to a credit reporting agency in error, federal Fair Credit Reporting Act allows consumers the opportunity to dispute the negative reports. Inaccurate or incomplete reports must be corrected by the reporting company. If the negative reports are accurate, the company is not required by law to remove the information. Accurate negative information may appear on your credit report for seven years and bankruptcy...

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Are All the Credit Reports Supposed to Have the Same Information?

Credit-reporting bureaus probably each have a different set of a data on you that could lead to a 50-point differential or more on your credit score. Ideally, the bureaus should have the same information on you, because variance in scores leads to confusion on your true credit rating. You may have to fight with the credit bureaus to correct data on your report. Identification Credit reports are supposed to have the same information because it reduces credit score variance. Lenders often have to manipulate scores, such as taking the average...

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Meaning of a Personal Credit Score

A personal credit score represents how likely you are to default on future loans, based on your financial history. The most widely used personal credit score is the FICO score, which is calculated using an algorithm from the Fair Isaac Corp. Function Credit bureaus collect information about how you have handled debts in the past from financial institutions and then use this information to compute your credit score. Creditors look at your score as one measure of your creditworthiness when you apply for a loan. Considerations The FICO...

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How to Restore My Credit Report

There are five factors that determine a consumer's credit score: length of credit history, payment history, amounts owed on credit lines, types of credit accounts and new account openings. Of these five factors, when attempting to restore a credit report, a consumer should focus on amortizing credit balances, cease opening new accounts, be prompt with revolving payments, and dispute any inaccuracies being reported. Instructions 1 Order a copy...

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How to Get Prequalified With Bad Credit

Your credit score is the main tool with which creditors decide whether you are a low- or high-risk client. Your score can range from 300 to 850. According to the three major credit reporting agencies, bad credit exists when your score is below 550. If you have bad credit, you can still attempt to get prequalified for a loan and can begin to build your credit into an acceptable or even good credit score. Instructions 1 Order your credit report from the three major credit reporting agencies: TransUnion, Equifax and Experian. All three have...

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Do Late Payments Ruin My Credit Score?

According to Experian, one of the credit reporting companies, making payments on time is the best way to have a good credit score. Therefore, having late payments will negatively affect your credit score, but whether or not it will be completely ruined depends on the overall payment pattern. One-Time Incident One late payment mixed in with several years of timely payments will not destroy your credit. If the payment is just a few days late, the credit issuer may not even record the payment as late on your credit report. If the payment was...

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Will Buying a Car Hurt My Credit Score?

When buying a vehicle, a buyer can finance the purchase in a number of ways. For older, less expensive cars, a buyer may choose to pay in cash. However, when buying more expensive vehicles, a buyer will often choose to take out of a loan. While purchasing a vehicle with cash will generally not affect a person's credit score, taking out a loan will -- like all new loans -- affect the borrower's credit score. Credit Scores Credit scores are determined using information contained in a person's credit report. The credit report, compiled by...

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Why Isn't a Credit Score Free?

It is a bit of cruel irony that perhaps the most important three-digit number in your life costs money to see, even though it is based on your private information. Credit scores are not free because they are a product, whereas credit reports are more of a dossier on your life. Check with the bureaus frequently and they might let you see your score for free. Legal Reason As of 2011, neither the Fair Credit Reporting Act (FCRA) nor any other piece of legislation requires the major credit bureaus to give all consumers a free credit score....

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Does Bankruptcy or Delinquency Hurt Your Credit More?

A variety of businesses, such as mortgage lenders, credit card providers and insurance companies, rely on your credit rating to offer you products and services. The lower your credit score, the less likely you are to qualify for the products and services you need. When you cannot pay your creditors and your accounts fall into delinquency or you file for bankruptcy, this information appears on your credit file and adversely affects your credit scores. Delinquency vs. Bankruptcy The degree to which any negative item impacts your credit scores...

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What Should I Look for on My Credit Report?

Consumers are entitled to one free credit report from each credit bureau each year through the Annual Credit Report website. You also might be entitled to a free report if you have been denied credit, are unemployed or are on welfare. It is your responsibility to ensure that your credit report is accurate. When you get your credit report, focus on a few major areas. Identity Theft Viewing your credit report is one of the best ways to discover credit-related identity theft. If someone opened an account in your name with your Social Security...

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What Is Happening to People's Credit After Foreclosures?

The information found in your credit report determines your credit score. According to FICO, your FICO credit score ranges from 300 up to 850, and the higher your FICO score the better your credit is considered to be by lenders. Your credit score helps determine your approval for credit and the interest rate charged for that credit product. A foreclosure impacts your credit score both now and in the future. FICO Scores According to FICO, how well you pay your bills accounts for 35 percent of your FICO score and is the largest factor in...

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Can Having Your Credit Checked Multiple Times Hurt Your Credit Score?

The time frame during which you apply for credit can have a huge impact on your score, because just the act of requesting credit can negatively your credit score. If you have several checks on your score, you could do significant harm to your creditworthiness. Not all credit checks will impact your score and you can soften the blow of multiple credit checks by looking for the best rate. Identification Credit checks can have a small but negative...

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Are Charge-offs Supposed to Be Removed From a Credit Report?

Of all the negative information you can have on your credit report, a charge-off is one of the worst. It can be hugely detrimental to your credit score. It tells potential lenders that you cannot be trusted to pay back your debts. A charge-off stays on your credit report for seven years before automatically falling off. It is possible to remove it from your report before it expires, but not everyone is successful. You can improve your credit score...

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How to Contest Derogatory Items Affecting a FICO Score

Keeping your FICO score high is important to many parts of your life. Not only is it important for getting credit or buying a home, some employers may even check your credit score. Therefore, when you see something on your credit report that is negatively affecting your credit score, you want to get it off. The tricky part is that you cannot dispute this information through FICO, even if you purchased your credit report from their website. You must dispute this information with the individual credit bureaus who are reporting it. Instructions...

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My Son's Information Is Showing Up on My Credit Report

If your credit history and your son's get mixed up, you may face months of headaches and possibly financial difficulty. Take action to correct your credit history immediately and keep monitoring your credit report until the matter is resolved. You may be able to obtain credit before the credit bureaus fix your problem. Why It Happened Any number of reasons can cause the bureaus to mix up your and your son's information, such as a computer glitch or an employee entering wrong information on your accounts. For example, if you and your son...

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How a FICO Inquiry Affects My Credit Report

A person's credit score, sometimes called his FICO score, is a measure of his creditworthiness in the eyes of creditors. Credit reporting companies determine an individual's credit score using information related to his lending history. Information that suggests a person will pay back his loans on time boosts his score, while negative information pulls it down. This report is available to many lenders. Inquiries made by certain lenders will pull a person's credit score down slightly. Hard Inquiries Two types of inquiries are made into...

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How Long Do Negative Items Remain on My Credit Report?

A positive credit report is a ticket to loans with low interest rates, according to Cari Noga of the Bankrate.com financial advice site. People who make a string of late payments or default on accounts start to lose the benefits, and those with big problems like bankruptcy face continual turn-downs. Fortunately, negative credit report items eventually go away. Definition Credit reports are summaries of a person's demographic information and financial activity, compiled by the Experian, TransUnion and Equifax credit bureaus. Positive information...

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How to Protect Your Credit History

A good credit history is a precious asset. It enables you to open accounts or get loans whenever you need them. Lenders will see you as a good potential customer and may offer incentives like a low interest rate to win your business. Identity thieves can destroy your good history by running up bills in your name unless you take steps to protect it. Instructions 1 Order your current credit report from TransUnion, Equifax and Experian. You must...

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How Does a Beacon Score Work?

Inside Beacon Scores There are five components of a Beacon (FICO) score. On-time payment of bills counts for the most (35 percent of the total score). Payments more than 30 days late count off heavily. Another 30 percent is based on total debt. Excess debt for a person's income lowers this part of a Beacon score. The type of debt matters as well (10 percent of the total). Secured debt is best. Too much unsecured debt (like credit cards) lowers the score. The amount of time you have used credit responsibly is a factor that counts 15 percent....

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Does a Credit Score Decrease When Credit Is Checked?

It is impossible to determine if your credit score will drop once you apply for credit. The website MyFICO says that if your credit does drop, it will not be by more than about five points. Inquiries Each time you apply for credit, you authorize the lender to review your credit report. Each time a lender reviews your credit, it is listed on the report as a credit inquiry. You can see who has requested to see your credit by reviewing your...

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