How Long Does a Texas State Tax Lien Stay on Your Credit?

A Texas state tax lien can have a severely negative impact on your credit rating. If the Texas state comptroller places a tax lien on your property, it may take as long as 15 years to remove the lien from your credit history. Tax Lien Definition A tax lien is a charge that a creditor imposes on property when the property owner fails to fulfill an obligation, such as paying the appropriate taxes. Texas Taxes Texas does not have a state...

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How to Build Credit Fast & Easy

Wealthy individuals are often in a position to pay for expensive items with cash, and they may pay little attention to their credit history or score. However, the average person has to finance cars and homes, which requires a credit history and a decent credit score. Building a good credit history takes time, and it often involves establishing good habits and being financially responsible. Instructions 1 Get added as an authorized user on...

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How to Check Your Credit History for Free Online

You can check your credit history for free online by getting a copy of your credit report from the website Annual Credit Report (see Resources below). The three nationwide credit bureaus established the site to offer free credit reports as required by the Fair Credit Reporting Act. The act, which is a federal law, entitles you to three free copies of your credit reports every 12 months, including one from each of the credit bureaus. Instructions...

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Which Lenders Work with Credit Scores Under 460?

Many people have less-than-perfect credit, but just because their credit score is below 460 doesn't mean that they don't still want and need credit. Part of rebuilding a credit score is to show that you can handle credit responsibly and you need open credit lines to do that. Though many banks feel that people with scores under 460 are too high of a risk, some lenders will work with you. Mortgages Many people with low credit scores feel that they will never own their own home. However, the Federal Housing Administration (FHA) may be willing...

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Does It Affect Your Credit Score If You Pay a Collection Debt in Full?

If you have debt that's gone into collection, a note will appear on your credit report and it will negatively affect your credit score. Paying off a debt that's in collection is sometimes a good idea as far as your credit report is concerned, but it will take time to repair the damage and you should be careful how you do it. Credit Report If you pay off a debt that's in collection, that payment will be recorded on your credit report. But the fact that you had a debt that went into collection will remain on your report for seven years, whether...

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Who Has Permission to Run My Credit Report?

In order to check your credit, a person or company must have your written permission and a legitimate reason for checking your credit. There are legal penalties for checking someone's report without permission. Lenders Lenders, including credit card issuers, will check your credit before loaning you money. The better your credit report, the more likely you will get a lower interest rate on your loan. Potential Employers According to MSN Money, over one-third of employers run a credit check before hiring individuals, especially for...

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When an Account Is Sold Does it Come Off Your Credit Report?

Defaulting on your debt means the creditor has deemed the account noncollectable. The account is written off as a loss by your creditor. However, your liability does not end. Your creditor can sell the account to a third-party collection agency, which can still pursue you for the amount owed. These events get reported to the credit rating agencies and impact your credit score. Charge-off A credit account usually is charged off after several consecutive months of non-payments; however, it is up to the lender's discretion when an account...

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How Are Credit Scores Arrived At?

Among history's greatest secrets is the formula for credit scoring developed by the Fair Isaac Corporation. Although we do not known exactly how the FICO formula calculates scores, we know what information it uses to arrive at a score and a general idea of the weights of the most important factors. The Formula The FICO website reveals that 35 percent of a score comes from "payment history," which includes any missed payments and the time since the last occurrence of a negative item, such as a public judgment. The amount of debt owed constitutes...

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How to Check Your Credit File for Free

You get to check your credit file for free once per year if you know where to order the information, according to the Federal Trade Commission (FTC). TransUnion, Equifax and Experian are the main credit reporting agencies. They sell report copies, but the Fair Credit Reporting Act makes them each give you a free annual copy if it is ordered through annualcreditreport.com. You can buy additional copies directly through the agencies, but the FTC recommends taking advantage of your free entitlement first. Instructions 1 Decide whether you want...

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Smart Way to Get a Credit History

When you apply for a mortgage or car loan, lenders look at one number first: your credit score. This number, which springs from the credit reports kept on you by the three national credit bureaus, Equifax, Experian and TransUnion, is a snapshot of your credit history, the way you've paid your bills and managed your money. But what if you don't have much of a credit history yet? The good news is that you can build one, and you have the opportunity to do it the smart way. Paying Bills on Time Certain actions will have a negative impact on...

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How Can I Remove Wrong Information From My Credit Report?

Your credit applications may be denied for legitimate reasons, such as high debt or slow payments, but you may get turned down unfairly because of wrong information on your credit report. Bob Sullivan, a "Red Tape Chronicles" reporter for MSNBC, warns that there is incorrect data bad enough to hurt borrowing prospects in as many as one quarter or more of reports. You are legally empowered by the Fair Credit Reporting Act to find and eliminate all wrong information on your Equifax, TransUnion and Experian records. Instructions 1 Find the...

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Can Credit Card Restrictions Hurt My Credit Score?

If your credit is less than perfect, you might be satisfied just to be approved for a credit card. However, if your new card is overly restrictive, it may be more trouble than it's worth. These restrictions can quickly snowball, getting you into debt and hurting your credit score. Credit Card Fees Many companies offer credit cards that are specifically for customers with poor credit. However, the fine print in these agreements often notes that the credit card company charges numerous fees for their use. These fees may include annual fees,...

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Does a Bounced Check Affect a Credit Score?

As people try to juggle payments, bounced checks may show up. Because credit scores are so important in getting new financing, it's a good idea to understand the impact bounced checks have on your credit score. Sometimes bounced checks don't hurt your credit score, but this depends on the person or group to which you wrote the check, as well as whether you cover the amount of the check quickly. The Credit Status of Your Account Checking...

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How Does a Credit Report Affect the Prospect of a Job?

When an employer is examining a job applicant, in addition to verifying previous employment history and military service and running a criminal background check, some employers run credit report background checks for certain sensitive positions. In most cases, employers don't request credit reports for applicants for minor entry-level positions. Function The reason that an employer might run a credit report on a job applicant is to determine how well that applicant can handle his finances. Since credit reports also present the amount of...

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How Long Does a Student Loan Stay on Your Credit?

With low interest rates and favorable payment terms, many students and parents take advantage of student loans every year. What loan recipients sometimes fail to realize is that these are installment loans which stay on the credit report until they are completely paid off, or longer. Federal law changes have eliminated the statute of limitations on student loan collections and made it almost impossible to discharge a student loan in a bankruptcy....

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If I Pay Off My Collection Account, Will the Original Debt Show As Paid?

When you have paid off a collection account, you should rightfully expect to have that information reflected in your individual credit report. However, it is important to check your report to ensure the collection agency reported it accurately. Documentation Hold on to your proof that the collection was taken care of until you can see that the debt has a "Paid" status on your credit report. Significant documentation includes collection agency...

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Credit Score Debt to Available Credit Ratio

Just a few hundred dollars of credit card debt can kill your credit score if you have a low limit. The credit scoring agencies look at your debt to credit ratio when calculating your risk. You might be able to drastically cut this important ratio without paying a single cent toward your balance. Identification Most financial experts refer to the debt to available credit ratio as "credit utilization" or "debt utilization." Calculate your credit...

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Can Getting Sued for Breaking a Lease Affect My Credit?

If your landlord takes you to court for breaking your lease and wins, the resulting judgment will affect your credit. The act of getting sued does not affect your credit standing; if you win the lawsuit, your credit will not be affected. Civil judgments can impact your credit standing for decades in some states. Judgments Judgments are court rulings that result from getting sued by a creditor, such as your landlord. A judgment provides your landlord with the legal means necessary to pursue collection for the unpaid rent. If you present...

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What Can I Fix on My Credit Report?

The information on your credit report affects your credit score, which in turn influences your ability to obtain new credit accounts and low interest rates. Under the Fair Credit Reporting Act, you have the right to dispute incorrect information by sending a letter to the credit bureau that provided the credit report with an error. Look for a few major types of information to fix. Inaccurate Late Payments One type of error you might find on your credit report is when one of your accounts reports that you paid late when you actually made...

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Does Being Rejected for Credit Cards Affect Your Credit Score?

A credit score is a fragile thing. It takes years to build up a strong credit history, but you can destroy it in weeks. A single rejected credit card application should not hurt your credit score, but multiple applications will. If you've had an application rejected, try to find out why, so you don't make the same mistake a second time. Credit Scores Credit bureaus use complicated secret formulas to calculate your credit score. They plug...

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How to Repair My Credit After My Mother Ruined it

Being a victim of identity theft can create issues that last several years. Identity theft is not always done by strangers but rather by family members. Having a family member use your identity to obtain credit can result in collection accounts and high balances which may, in turn, result in a bad credit history and score. While there are laws to protect consumers from identity theft, many people are reluctant to turn a family member in, which results...

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What Is a Decent Credit Score?

Credit reporting agencies calculate your credit score based on your financial history. Lenders, banks, insurance companies and some employers use this score to determine risk factors and responsibility. A decent credit score is a significant factor in determining loan approval and favorable loan terms. While your credit score may differ among the three major credit-reporting agencies, most lenders in the United States use the Fair Isaac Corporation FICO scoring system. Facts FICO credit scores range from 300 to 850. While lenders look at...

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How to Get Rid of Old Incorrect IRS Information on a Credit Report

If an individual owes taxes to the Internal Revenue Service that are not promptly paid, a record of the unpaid tax debt will appear in his credit report as a derogatory entry. Because the IRS must keep track of the taxes owed by every taxpayer in America, mistakes do sometimes occur. The Fair Credit Reporting Act gives you the right to a fair and accurate credit report. Although a legitimate tax lien will continue to report on your credit file for seven years after it is paid, a tax debt that does not belong to you can and should be addressed for...

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How to Convert a Vantage Score to a FICO Range

The Vantage Score was created by the three major credit bureaus, Experian, TransUnion and Equifax, to compete with the FICO score. The Vantage Score is on a range from 501 to 990, while the FICO score is on a range of 300 to 850. The scores are not directly comparable because the criteria are weighted differently for each calculation. However, the goal and reasoning of the scores is similar enough for a rough conversion. This can be done mathematically...

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Why Should I Care If My FICO Score Goes Down?

The Fair Isaac Corporation is the creator of the FICO score. Your FICO score is usually what lenders refer to when they talk about your credit score. You have a different FICO score for each of the three main credit reporting bureaus. You should absolutely care if your FICO score goes down, because you will encounter problems when you apply for loans and credit cards Identity Theft As technology grows and advances, so do the tools of thieves. There were 5.4 million complaints to the Consumer Sentinel Network from 2005 to 2009; 721,418 of...

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How to Repair Your Credit Rating Fast

This is not going to be some overnight credit repair trick. This will take effort and you will have to pay your bills. I know we have all heard crazy claims over eliminating your debt and repair your credit, but unless you apply the following techniques, you will likely remain in credit hell for years to come. Instructions 1 1: Check your reports, all of them. There are three major agencies that handle all credit reporting: Transunion, Equifax,...

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How Long Is a Mortgage Default on a Credit Report?

Whether financial distress leaves you unable to continue making mortgage payments or you opt to strategically default on your mortgage loan, your failure to adhere to the terms of your loan contract appears on your credit report as derogatory information and damages your credit score. The consequences of your mortgage default and your lender's policies can sometimes impact how long the negative information remains within your credit history. Missed Payments Each lender maintains its own standard regarding how many missed payments constitute...

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The Three Major Credit Reporting Agencies

When someone applies for credit, the lender nearly always obtains at least one credit report or credit score to check the applicant's creditworthiness. Three major credit reporting agencies provide this information for a fee. Identification Equifax, TransUnion and Experian are the three major credit reporting agencies. They maintain electronic records about the amount of credit each consumer has along with the payment record. Function The three agencies function very similarly. Many lenders use a combination score, compiling results...

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How to Fix Personal Credit History

Fixing your personal credit history by increasing your credit score may require serious effort on your part. Credit scores range between 300 and 850, and acquiring a high score entails consistently managing your credit well. But even if you've made mistakes in the past and you're dealing with the consequences of poor credit choices, it's possible to fix your personal credit history. Instructions 1 Use online or Internet services to pay your bills. Avoid delinquencies by paying bills early using online bill-pay services. Sign up for free...

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Can Reducing Medical Debt Help Your FICO Score?

A FICO score is a reflection of what's in your credit report. FICO scores can be adversely impacted by judgments, late payments on credit cards and outstanding medical bills. If you are looking to find a way to increase your FICO score, paying off your medical bills could be one way to do it. FICO Score Definition A FICO score isn't just one score: it's usually a combination of three scores from the three major credit bureaus: Experian, TransUnion...

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How Do Inquiries Affect Your Credit Score?

Hard Inquiries vs. Soft Inquiries Inquiries affect your credit score only if they come in as a "hard inquiry." A "hard inquiry" is when a creditor pulls your credit report to verify credit information, often for loan approval, financing approval or credit card approval. A hard inquiry will show all information on your credit report to the creditor. A creditor must have your permission to do a hard inquiry. A "soft inquiry" is done for promotional purposes--usually by credit card companies wanting to verify identity to send you unsolicited...

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How to Repair a Bad Credit Score Quickly

Having a bad credit score can make it very difficult to get a loan or credit card. A bad credit score can also dramatically increase the interest rates that you have to pay on your credit obligations. Fortunately, there are ways to repair your credit score quickly. Contrary to what many people believe, you don't have to pay anyone to repair your credit score. You can do the entire job by yourself. Once your credit score has increased, it will be easier to get a loan such as a mortgage, auto loan or personal loan with a lower interest rate. Instructions...

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Credit Report Scams

There is never a shortage of unscrupulous tacticians out there, thinking up new ways to pry our personal information from us or to get us to unknowingly sign up for a service with fine print that we barely understand. These scams are constantly evolving, and even though we think we can spot them a mile away, sometimes they reach up and bite us. Here are three to watch out for. Free Credit Reports There are abundant free credit report commercials...

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Will Purchasing a Car Increase My Credit Score?

Purchasing a car could help you increase your credit score, and this might be an added bonus if you planned on buying one anyway. However, part of the process of building your credit through an auto loan involves a bit of pain to your credit score. Handle the loan responsibly and it becomes an important positive account on your record. Financing Paying cash for the vehicle up front, the cheapest and fastest way to buy the car, does not improve credit one bit. National credit bureaus do not track cash payments. You must finance at least...

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Does Paying Off a Loan Increase a Credit Score?

Paying off a loan can help your credit score improve if you don't neglect higher-interest debt in the process. It will Improve a Credit Score Paying off debt is almost always a good idea. Paying the full balance on a loan -- whether it be a car loan, personal loan or mortgage -- will not only help you establish a credit history, it can also increase your credit score, according to MyFico.com. It Can Lower Your Score ...

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Does Bad Credit Affect My Chances of Getting Financial Aid?

Bad credit can prevent you from getting a job or a loan, but it probably has no effect on your financial aid package. It can affect your ability to acquire some aid, but the financial aid that depends on a credit check usually is not something you want to use to pay for college. In some cases, your credit history can increase your aid package. Loans The most common way that bad credit affects your financial aid package is private student loans. Private lenders probably won't offer you loans if you or your parents have a credit score rating...

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How to Get a High Credit Score Fast

The fastest way to get a high credit score is to keep your credit accounts open and take a few simple steps, all of which can be executed now and carried out over the course of the next several months. You'll need a copy of your credit report and credit score to get started, but, contrary to false television and print advertisements paid for by credit repair companies, you don't have to sign up for an outside service. Instructions 1 Obtain a copy of your credit report and credit score from one of the three credit reporting bureaus, TransUnion,...

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Removal of Outdated Negative Credit Information

Negative credit information is unavoidable when you run into financial problems. Late payments, repossessions, charge-offs and similar entries pop up on your credit reports and act as a barrier to new credit applications. FICO, the dominant credit score company, states that they reduce your score too. Their effect does not last forever, according to the Federal Trade Commission (FTC), because they only show up for a limited time. You can force the credit bureaus to remove them after the designated time if they don't do so automatically. Instructions...

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How do I Solve Identity Theft?

If your identity is stolen, the culprit could quickly spend your cash, set up accounts in your name, and seriously affect your credit rating. It is imperative you act swiftly to solve this problem by taking the appropriate action quickly and contacting the correct people who can help. Instructions 1 File a police report with your local police for identity theft. In addition to reporting a serious crime, it will give you legal rights to clear...

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