What Range of Values Is an Excellent Credit Rating?

A credit rating, or score, is a three-digit number that is basically a grading system that gives creditors a quick snapshot of your credit report and insight as to how you pay your bills and manage your credit. A low score can cost you extra money in interest over the life of a loan or, if you have a really low score, can prevent you from getting credit at all. Credit Score Calculations A credit score is also known as a FICO score, which...

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What Is a Credit Limit on a Credit Report?

Your credit report can have a significant impact on your ability to gain credit, rent a home, get insurance and get a job. If your credit score is too low, it can affect your interest rates and the amount you pay for security deposits. Insurance companies may deny your application for insurance and a prospective employer may pass you over for employment if you have a low score. A large part of your credit score is the credit limit on your accounts. Your credit limit shows your credit utilization ratio, or the amount of credit you have for your...

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Are Credit Scores Free?

Your credit score is a number that represents the sum total of your financial history. Three different credit reporting agencies, Equifax, Experian and TransUnion, monitor your use of credit and compile a credit history as well as a credit score to provide to lenders who inquire about your credit. For you to receive your credit score, you'll generally need to pay a fee to the agency you choose. Free Credit Reports Many people have heard about the availability of free credit reports, which can lead to confusion when it comes time to pay...

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How Does a Bankruptcy Affect Credit After Two Years?

While you should always do everything possible to avoid bankruptcy, sometimes it is the best thing for your financial future. You can recover from bankruptcy before it leaves your credit report. Take an active approach to rebuilding credit and two years might be all you need -- sometimes a bit less. Identification Bankruptcy will affect your credit in some way as long as the bureaus report it. Chapter 13 stays for seven years and Chapter 7 for 10 years. However, all negative items become less important with each passing day. After two years,...

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Can Canceled Debt Be Removed From a Credit Report?

Canceled debt typically appears as a charge-off account on a consumer credit report. Charge-off accounts will negatively impact your credit rating for years. Canceled debt, or charge-offs, can be removed from a credit report in accordance with the laws outlined in the Fair Credit Reporting Act. Consumers should be aware of the laws that pertain to canceled debt and monitor their credit report for inaccuracies and items that fall outside the statute of limitations. What Is Canceled Debt? Canceled debt is the term used when a commercial lender...

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Does Paying a Bill on Your Credit Score Make Your Score Go Up?

Boosting your credit score takes time and patience. In order to boost your score, you must focus on the top areas impacting your credit score each month. Paying a bill on your credit report helps your score to increase as long as the creditor reports to the three major credit bureaus each month. Credit Score Impacts Creditors report information to the credit bureaus monthly. Based on the information reported, the credit bureaus calculate...

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How Does a Misdemeanor Affect Your Credit Score?

A credit score is a summary of your credit history from the past seven years. It includes your borrowing and repayment information, as reported to the credit bureaus by lenders. Your credit report does not include your criminal record. Therefore, a misdemeanor will not affect your credit score. However, it could still keep you from getting a job or renting an apartment, as many employers and landlords run criminal checks, as well as credit checks. Credit Score Whenever you borrow money, whether a loan, a credit card, a mortgage or a cell...

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Effects of Credit Ratings

The effects of credit ratings can be felt in almost every aspect of life. From jobs to purchases, your ability to obtain the job or goods that you want may be thwarted if your credit rating is too low. With a good credit rating, you have more access to savings, financing and job opportunities. Employment In finance-related jobs and the insurance industry, prospective employers routinely screen the credit rating of applicants to help determine...

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Instructions on how to Read a Credit Report

Building up a good credit score is vital to be approved for loans, buying a car or buying a house. There are various websites and organizations where you can get your credit report and look it over. Many people, however, do not know how to accurately read a credit report. Credit reports contain several sections, and these sections include abbreviations that sometimes cause confusion. Once you know what is covered in each section and what each abbreviation stands for, reading a credit report is very easy. Instructions 1 Look over the ID section...

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How Can a Person Check His Credit Score If He Doesn't Have a Credit Card?

Credit cards aren't the only determining factor when it comes to your credit score. Loans have an effect as well, so your credit score may go up or down regardless if you've ever applied for a credit card. You can check your credit score at any time, even if you don't own a credit card. Free Annual Credit Report Annualcreditreport.com is the only officially authorized free credit report website, according to the Federal Trade Commission. You can use the website to obtain your credit report and score from all three credit reporting bureaus....

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How to Fax a Dispute to the Credit Bureau

Guarding your credit report is an important element in maintaining financial security. In order to keep your score high and ensure yourself the best treatment by lending institutions, the three credit bureaus need to have accurate information. Occasionally you'll find information that doesn't reflect your borrowing habits. This could range from a simple reporting error to fraud. If you find a mistake, it's your responsibility to dispute the incorrect...

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Help for Self-Repairing My Credit

Repairing credit is a lot like weight loss. It seems to take no time or effort to create the damage, but turning things around is a lot slower and more difficult. There are some quick steps you can take to improve your credit. But, depending on the amount and type of damage, you will have to be steady and patient in creating a positive credit picture before your credit scores really start to climb. Tackle Your Credit Report Get a copy of...

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How to Read Credit Rating Scores

A credit rating score is a number based on a borrower's ability to pay the bills. The credit score reflects your payment history and debt profile, and lenders make use of this information to determine the level of risk you pose if given a loan. Because your credit rating score can affect your mortgage rate and credit card interest rate, among other things, it's important to understand the significance of the credit score and how to read it. Instructions 1 Obtain a credit report. There are three credit reporting agencies--TransUnion, Experian...

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How Fast do Changes on a Credit Report Appear?

It can take 30 to 60 days for a borrower's credit report to be updated by the credit bureau. While the lenders have to send the credit bureaus updated information once a month, the credit bureaus may update the reports prior to the lender's update, delaying the information by 60 days. Significance A small change in a borrower's credit report, such as one late payment or an increase in one credit card balance, can have a significant change...

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How to Increase a Credit Score When I Have Defaulted on Student Loans

Lenders report student loans as being in default when you fall four to 12 months behind on student loan payments depending on the lender. Having a default appear on your credit report significantly lowers your score and makes it difficult to get approved for loans and credit cards. After your loan goes into default, take action to remedy the situation and repair your credit score. The best course of action depends on whether you had a federal student loan, such as a Stafford, Perkins or PLUS Loan, or a private student loan from a bank or credit...

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The Best Way to Get a Free Credit Report

While it is easy to get a free credit report online, be careful where you go to get your personal information. Many websites try to deceive customers by enrolling them in a trial membership and then charging them a monthly fee soon thereafter, even when the customer asks to not continue the service after the trial period. To avoid the hassle involved with calling credit companies and disputing charges, go to the one correct website that will offer a free yearly credit report. How to Receive a Report Everyone can get a free credit report...

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Does My Husband's Credit Affect Mine for a Mortgage?

Credit reports are individual documents, so credit solely in your spouse's name will not affect your report, and vice versa. However, when applying for a mortgage, most couples assume they will buy together. Each of your credit scores will impact the mortgage application unless only one of you applies for the mortgage. Separate Credit Scores You and your husband have separate credit scores. Each of your scores is based only on accounts in that spouse's name. Therefore, any accounts you have that list only your name will appear only on your...

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How to Remove Paid-Off Collection Accounts From Credit Report

Unfortunately, when you pay a debt that has been sent to collections, your credit score does not improve. Even though you have satisfied your obligations to the debt, it will remain on your credit record until the seven-year federal reporting period expires. Because you no longer owe money to the collection agency, you have lost any leverage you may have had to demand that the entry be removed in exchange for payment. Luckily, there are still options available to you to remove a paid collection from your credit report. Instructions Method...

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How Often Does a Credit Reporting Agency Update Your Score?

How often the credit reporting agencies update your credit score can have a dramatic effect on your ability to obtain loans at a favorable interest rate. Typically, there is no schedule for score updates because your lenders report to the agencies throughout the month and your score can change with each report. A low credit score can lead to higher interest rates on the things you buy or prevent you from receiving credit offers. Lender Reporting Lenders report your payments to the credit bureaus every 30 to 40 days. When the bureaus receive...

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How to Use Credit Cards to Build a Credit Rating

Getting a credit card is a key way to build a credit rating. Establishing credit and maintaining a decent FICO score demonstrates a measure of responsibility. And with a high score, you'll qualify for most types of financing, from auto loans to mortgages. Acquiring a credit card is only one aspect of building credit. To achieve a high rating, you'll need to use credit cards wisely. Instructions 1 Consider your options. Apply for a prepaid...

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How to Clean Up, Restore & Repair Credit

Disregarding your credit file and history can have lasting consequences. Try to maintain a satisfactory relationship with your creditors: they have the power to lower your interest rate and submit positive remarks to the credit bureaus. In return, future lenders are more apt to approve your applications for credit based on your prior history. But even if you currently have poor credit, it's possible to clean, repair and restore your rating. Instructions...

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Definition of a Good Credit Score

Your credit score is a number used by lenders to measure your creditworthiness. This score is also known as the FICO score, having been developed by the Fair Isaac Corporation. According to SmartMoney.com, a good credit score is 760 points or greater. However, this definition varies among lenders--many consider anything above 700 to be fine. Possible Range A person's FICO score can range anywhere from 300 to 850, with the higher number...

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What Will CCCS Do to My Husband's FICO Score?

Consumer Credit Counseling Service agencies are nonprofit agencies in communities throughout the U.S. that offer free or low-cost services to help individuals and families resolve financial difficulties. Types of Assistance CCCS offers educational services, such as financial counseling, credit report review, bankruptcy counseling and housing counseling. If you are having difficulty meeting your debt obligations, a CCCS debt management plan might reduce your interest rates and fees, allowing you to make lower monthly payments. Potential...

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Will Consolidating Student Loans Help My Scores?

Student loans can reach into the hundreds of thousands of dollars, so a consolidation loan could save you thousands. However, even though the lender might claim it will positively affect your credit score, the effect, if any, will probably be nominal in either direction. Installment loan debt is not nearly as important to credit scores as revolving debt. Just having an installment loan is sometimes the most important thing. How It Affects Score Consolidating student loans into one account causes a few points of damage to your credit score...

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How to Repair Bad Credit Fast

Gone are the days when you could get credit if you had a job and promised to pay the debt back. Now, lenders are stricter. A bad credit score can keep you from getting a loan, renting an apartment and many other things. Its also very stressful to live with financial woes. Its important to clean up a bad credit score, and you can start today. It will take some time, but some things can speed up the process. Instructions Rebuild Your Credit 1...

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What Information to Fix First on Your Credit Report

A credit report is a record of your borrowing and repayment history from the last seven years. Credit bureaus use the data from your credit report to calculate your credit score. Negative information on the report will lower your score, making it difficult and expensive to borrow money. If you find a mistake on your credit report, you should fix it as soon as possible to avoid ruining your credit history. Credit Report A credit report is a record of your borrowing and repayment history. In reality, you have not one but three credit reports....

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What Contributes to Your Credit Score?

Each individual consumer has his own credit score as reported by three major credit reporting bureaus. Based on the Fair Isaac Corp. scoring model, each bureau reports what are referred to as FICO scores. Each score offers creditors a glimpse of your individual credit worthiness which is used in loan decisions and the establishing of rates and terms. Credit Score Basics Equifax, Experian and TransUnion are the three major credit reporting...

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How to Report Information to a Credit Bureau

A credit bureau is an organization or corporation that catalogs financial data to categorize and track an individual's money management and debt repayment abilities. The credit bureau's data is used to calculate a person's credit score, which is then used by banks and financial institutions to make lending determinations. Report inaccurate or missing information on your credit report to avoid a damaged credit score. Instructions 1 Review your credit report. Double-check your personal data (name, phone number and address) and current outstanding...

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How to Raise a Mid-Six Credit Score

A mid-six credit score isn't horrible, and you'll likely obtain a loan approval. However, if you're looking for the best rate on auto loans or mortgages, it pays to raise your credit score into the high-six or 700 range. Raising your score involves understanding how credit scoring works and recognizing factors that bring down your score. Instructions 1 Make purchases using your older credit cards. Creditors may fail to report inactive accounts...

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About Poor Credit

Poor credit, which is generally considered a credit score that is lower than 619, can have a major effect on your personal finances. If you have a low credit score, you need to learn what you can do to improve it. If you have a good credit score, you need to protect it by being responsible with your finances. Effects Your credit score is an important part of your personal financial health. This is the number that lenders will look at to determine...

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If Your Credit Scores Are Down From Being Late How Long Does it Take to Bring Them Back Up?

Borrowers currently delinquent on a monthly debt can reverse almost all of the damage from a late payment if they act quickly. A revamp of the Fair Isaac risk model in 2008 resulted in the algorithm punishing the random slip-up far less than people that constantly miss payments. Once you become current, take extreme care not to mess up again, because you could cause heavy damage for years. 30 to 60 Days Late Payment late by 30 to 60 days are the least serious of the missed payments. As long as you pay the delinquent bill now, you can probably...

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Will My Credit Score Increase When Old Debts Drop Off?

Your credit score includes information about your credit management and lenders review your credit report when evaluating applications for new credit. However, inactive debts only remain on your report for seven years. If you have outstanding debts on your credit report that you were unwilling or unable to settle, your credit score may increase when these debts are no longer included in your credit report. Reporting Creditors typically submit consumer reports to the credit reporting agencies about once a month. These reports include information...

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The Advantages of Having a High Credit Score

Your credit score is a three-digit number that carries significant weight in several arenas. The major type of credit score is provided by FICO and ranges from 300 to 850, with higher scores for individuals who pose lower risks to creditors. According to the Bankrate website, K.E. Varner, a former manager at credit reporting agency Equifax and the author of " The Insider's Guide to Credit Repair," claims a credit score over 700 is considered good, although people should shoot for scores of over 750 for the best results. Easy Approval If...

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If Credit Is Approved Does Your Credit Score Drop?

A credit approval means someone found your credit history worthy enough to extend a new line of credit. This new account may or may not drop your score. Your credit history contains dozens of items that can have a host of effects on the credit scoring system used in America. As long as you use a new account responsibly, it will likely have a positive effect on your score eventually. The Credit Check Regardless of approval, any application for a line of credit usually requires consent to a hard credit check by the lender. This usually drops...

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The Effect of Paying Down a Mortgage on a Credit Score

Your credit score is impacted by each financial move you make in regards to debt. Paying down any debt, especially mortgage debt, will help to raise your score bit by bit. Significance Your credit score is a numerical indicator to a lending institution as to what risk you might hold when lending you money. The higher your credit score, the better chance that the lending institution has of getting prompt and full payment. Therefore, you want...

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What is the Maximum FICO Score?

When most lenders request your permission to review your credit report and score, they are referring to your FICO score. FICO scores are not the only credit scores available, but lenders depend on the FICO scoring model than any other when assessing lending risks. The Fair Isaac Corporation, which introduced FICO scores in 1958, owns the mathematical formula used to calculate FICO scores. A high FICO score indicates that you are likely to repay your debts and therefore present a low risk for lenders. Maximum FICO Score FICO credit scores...

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