My Credit Wasn’t Going To Fix Itself… I Had To Do Something…

It was then that I realized only I could take charge of my credit and get it fixed… The first thing I did was try a so-called “professional” credit repair agency, but…

Monday, February 27, 2006

Does Opening Multiple Bank Accounts Hurt My Credit Score?

Opening multiple lines of credit in a short time period usually is a credit score no-no, because it makes lenders question why you need so much available credit. Because you can use a bank account in many of the same ways you use a line of credit, it's reasonable to assume that opening multiple bank accounts also would ding your credit, but this isn't the case most of the time. The General Rule Bank accounts are backed by the Federal Deposit...

Sunday, February 26, 2006

How to Improve FICO Score with a Secured Credit Card

When your FICO credit score is low, you might have a hard time finding a credit card company that will approve your application. One strategy is to get a special type of card called a secured credit card. To get this card, you must put down a deposit, usually a minimum of about $500, to get a credit line of an equal amount. The credit card company holds your deposit as security in case you fail to pay the bills. A secured credit card will gradually improve your credit score if you use it responsibly. Instructions 1 Research secured credit...

Saturday, February 25, 2006

Secondary Use of FICO Scores

Your FICO score, named after the proprietary scoring system created by the Fair Isaac Corporation, is a measure of how well you manage your available credit. When you apply for a credit card or home or auto loan, lenders look at your FICO score to determine whether to extend credit to you, how much you should get and what interest rate you should pay. While this is the most common use of your FICO score, there are also secondary uses as well. How Your FICO Score is Determined Fair Isaac Corporation uses the information in your credit report...

Friday, February 24, 2006

Where to Report Identity Theft

If you are ever a victim of identity theft, you must move quickly. You should report the incident as soon as possible. When you act quickly, you have a chance to stop or minimize the damage done. Keep a record of your actions and be prepared to notify the correct parties. Federal Trade Commission If you are a victim of identity theft, you should contact the U.S. Federal Trade Commission. Your report may help them locate the identity theft ring. Call them at (877) 438-4338. You can also go right to the website at yourlost.info (see link...

Thursday, February 23, 2006

The Difference Between "Paid in Full" & "Settled in Full" on Credit Reports

If you just negotiated with a creditor to settle a balance for less than what you owed, you may feel victorious, but such a settlement damages your credit score and might end up increasing your interest rates down the line. Whether a debt affects you depends on whether the account is reported "paid in full" or "settled in full" on your credit report. Identification A account listed as "paid in full" means you paid off the entire amount due on a loan. "Settled in full" means you negotiated with the lender to pay off some amount less than...

Letter to Remove Inquiries From Your Credit Report

Credit reports can contain errors in multiple areas of your credit report: balances, type of account, monthly payment, payment status, personal information and inquiries. Disputing items on your credit report is a right given to you by federal law. You can dispute any item on your credit report that is reported incorrectly. Disputing incorrect items helps keep your credit report and score at their optimum. Inquiries Credit inquiries come in two forms: hard and soft. A hard credit inquiry is performed by a creditor when you apply for credit....

Tuesday, February 21, 2006

When Are Credit Checks Done?

The federal Fair Reporting Act and state laws regulate who can have access to your credit report. Your credit report contains highly confidential information about you (including your Social Security and telephone numbers), and many people can gain access to it. There are two types of credit checks (also called "credit pulls"). "Soft" credit pulls appear in your credit history but do not affect your credit score. "Hard" credit pulls can negatively...

Sunday, February 19, 2006

The Bank Repossessed My House: How Does It Affect My Credit?

In the third-quarter of 2009, one in every 136 homes was in foreclosure, according to RealtyTrac. Foreclosure means more than just losing your home. Your credit rating takes a dive, as well. A poor credit rating can affect your life in ways other than making loans more expensive, so you should do whatever it takes to prevent foreclosure. Identification If a bank repossesses your home, usually called a foreclosure, your credit rating takes a huge dive. The number of points depends on your score before the foreclosure occurs, but it is possible...

Is Your Credit Score Updated Once a Month?

Just because you cleared up your credit history recently does not mean those actions show up on your credit report immediately, which could end up costing you a loan or making it much more expensive if you apply for a loan. The credit reporting bureaus often have significant lag time between when they receive new information about your credit history and when they update their reports. You may have to fight with the bureaus to correct your report. Identification Your credit score does not necessarily update once a month, because the credit...

When Can I Get a Free Copy of My Credit Report?

Your credit report is a list of all your debt accounts, including your mortgage, student and automobile loans, credit cards, personal installment loans and revolving lines of credit. Additionally, your credit report lists negative items like delinquent loan accounts, charged-off credit cards, collection accounts and foreclosures. Your credit report can affect your job prospects, ability to purchase a home or a car and your access to personal loans and credit cards. Time Frame The federal Fair Credit Reporting Act allows you to access free...

Saturday, February 18, 2006

Does Increasing My Credit Line Hurt My Credit?

Increasing your credit line alone can actually help your credit score. In fact, many consumers seek credit limit increases as an approach to improve their credit. However, a hard credit inquiry, which some creditors perform when you request a limit increase, can cost you some points. Credit Score Basics Credit scores offer a basis for lenders to make informed decisions about your credit worthiness. The FICO scoring model, developed by the...

Friday, February 17, 2006

How Long Does It Take for Derogatories to Go Off Your Credit Report?

The Fair Isaac Corporation, which is responsible for the FICO scoring formula, intends its credit scores to be an accurate risk-assessment tool for lenders. Derogatory accounts on your credit report signify that you pose a lending risk for businesses. Therefore, failing to pay debts lowers your credit score, in order to warn lenders of the potential risk involved in lending to you. However, negative entries do not remain on your credit record forever. Types The FICO scoring formula treats certain types of entries on your credit report as...

Thursday, February 16, 2006

How Is Credit Report Affected by Garnishment?

Your credit report lists a variety of personal financial information, from your address and workplace to your loans, credit cards and other accounts. It also lists certain court actions, such as bankruptcies, judgments and wage garnishments. Creditors, insurance companies and employers use your credit reports or your credit score, which is compiled from the information in those reports, to make important decisions. It is critical to know how certain...

Credit Scores Vs. Available Credit

Your credit score is calculated based on information from your credit report. Thirty percent of your score is based on the money you owe, which includes how much of your available credit you are using. How Available Credit Is Calculated Your available credit is the sum of all your credit lines on your different credit cards. Your installment payments like mortgages are not included. Debt to Available Credit Ratio The ratio used in calculating your credit score is the amount you owe divided by your total credit limit. For example,...

Will a Three Bureau Credit Report Hurt Your Credit Score?

Some credit checks can hurt your score, but it is not always obvious whether a credit pull is this type of inquiry. Applying for an apartment or a loan hurts your credit score, but checking your own score or agreeing to let an employer see it does not. A three-in-one credit report is often advertised as the best way to view your score. Most important for your score, the 3-in-1 report should have no effect on it. Identification The U.S. has three major credit reporting bureaus -- Experian, Equifax and TransUnion. Each has its own file on...

Wednesday, February 15, 2006

Are Business Checking Accounts Reported on Credit Reports?

As an individual, banks and other creditors report information about your accounts to credit bureaus. When you start a new business, you also have to concern yourself with the information that gets reported to commercial credit bureaus. If you're planning to open a business checking account, you may wonder if this action will affect your business credit report as well. What Is a Business Credit Report? A business credit report is a listing of transactions related to the activities of a company. The report usually links to an employer tax...

Friday, February 10, 2006

Best Way to Rebuild Credit Quickly

Your credit score is a good indicator of your financial situation. Many mortgage brokers, loan officers and credit card companies gauge your credit worthiness based on your credit score. The three credit reporting agencies (Experian, Equifax and TransUnion) look at your credit history and based on many factors, determine your credit rating. A high score gets you any loan you want at attractive interest rates, while a low score deems you to be a credit risk for which you will pay higher interest rates. But there are a few things you can do to improve...

Do Business Credit Cards Report on Your Personal FICO Score?

The concept behind business credit is to finance a business, build credit without relying solely on your personal history and to protect your personal assets should the business fail. Business accounts are reported to business credit reporting agencies, which are separate from personal credit agencies, and FICO only uses personal credit information when determining scores. However, a business account may end up on your personal credit report and affect your FICO score depending on how the line of credit was opened. Personal Guarantees Business...

Wednesday, February 8, 2006

Free Credit Check With No Credit Card Information Required

Monitoring your credit report is an important part of maintaining your credit. It is a good idea to check your credit report annually to dispute any discrepancies or errors. Obtaining a copy of your credit report can also help prevent identity theft. Your Credit Rights Under the Fair Credit Reporting Act, consumers are entitled to a free copy of their credit report each year from Equifax, Experian and Trans Union. The overall goal is to keep...

Importance of a Good Credit Score

Having a good credit score is the result of good financial management and responsible spending. Good credit allows access to resources that would not otherwise be available. Learn the importance of a good credit score and how to get on the road to financial freedom. FICO Fair Isaac Company, also known as FICO, is responsible for the development of the credit score formula. Today, the same company determines and reports credit scores to consumers and creditors. Good Score The standard for a good FICO score varies by creditor. However,...

Tuesday, February 7, 2006

What Information Is on a Third Party Credit Check?

Not every party that pulls your report can see all items in your credit history and some items only you can view. What information a third party can see depends on who checks the report and which credit bureau it uses. Just about any third-party can see what accounts you have, the details on them and some of your demographic data. Exclusions Privacy laws and credit bureau policy limit some of the information a third party can see when it runs a credit check. The bureaus, for example, don't let third-parties see your "soft inquiries" --...

Monday, February 6, 2006

How to Prevent Access to a Credit Report

Identity theft has claimed many victims, so it would be prudent to take steps to prevent identity theft from happening to you. The easiest way to keep yourself from becoming the next victim of identity thief is to prevent access to your credit report, which is done through a credit report freeze. Nearly all lines of credit access your credit report before offering approval or denial on a new account. If you freeze your credit report, a potential identity thief will be unable to open new accounts in your name: When companies attempt to check your...

Sunday, February 5, 2006

Credit Repair Laws in California

Credit reports represent financial responsibility and credit histories to potential lenders. Credit scores and credit report information affect interest rates and loan approval. Credit repair companies assisting consumers with their credit reports must follow California and federal laws regarding contracts, payment schedules and misleading information. If a disreputable credit repair company fails to complete contractual obligations or otherwise...

Credit Score Factor Code Definitions

Credit scores are based on key factors from the credit bureau. Key factors include payment history, amounts owed, credit history length, new credit and type of credit. Payment History The payment history is the most important factor in calculating a credit score, encompassing 35 percent of the score's calculation. Specific information includes the number of adverse public records, such as bankruptcies or judgments, and the length of the longest past due account. Amounts Owed Amounts owed encompasses 30 percent of the credit score's...

Saturday, February 4, 2006

What Are Some Fallacies About Your FICO Score?

A FICO score is a number used to determine a person's creditworthiness. It is necessary to understand concepts that are false regarding a credit score. Eligibility A person's score alone does not determine whether new credit is extended. Income, employment history and a lender's underwriting policies also determine whether a person can obtain credit. An individual with a low score can still have credit extended to them, while a person with a high score can be declined. Low Score A low FICO score is not permanent. When new information...

What Happens When One Gets a Foreclosure on Their Credit Report?

If your home goes into foreclosure, it can have far-reaching effects on your life. Not least of these is the effect on your credit report. Foreclosure will always have a negative impact on your credit score, but there are ways to manage the process so that you can still access credit. Credit Score Your credit score will be affected throughout the whole process of loan default and foreclosure. As soon as you miss one home payment, it gets reported to the credit agencies, who will note that on your report. Generally speaking, by the time...

Thursday, February 2, 2006

Does a Bank Judgment Affect My Credit?

Judgments are powerful legal instruments that give banks and other creditors the means to collect a debt. A bank judgment will negatively affect your credit score for an extended period . The repercussions of enforcing a judgment can also affect your credit, effectively adding insult to injury. What is a Bank Judgment? A judgment is a court ruling that provides a creditor with the legal recourse necessary to force collection of a delinquent account. Types of bank judgments include those relating to defaulted revolving credit accounts or...

Do Credit Counseling Services Damage Your Credit?

A job loss, a sudden unexpected expense or poor planning can cause you to fall into debt. You may find yourself unable to manage your debts, and you may miss payments on your credit card and loan accounts. Having large debts or missing payments on your credit and loan accounts will hurt your credit score. Credit counseling services offer ways to help you overcome your debt problems without taking a toll on your credit score. There are, however, a number of factors to consider. Function A credit counseling service works with you and your...

Wednesday, February 1, 2006

Landlords Report to Credit Bureaus

Even if you have a spotless rental history going back several years, it will have no effect on your credit history. The only way rent can affect your FICO credit score is when you show evidence of being a poor renter. Landlords can report you to alternative agencies that collect information on rent payments. Credit Score Landlords rarely report rent payments to the credit bureaus because the credit bureaus have stringent reporting requirements...