What Makes Up a Credit Score?

Credit scores can be complex and difficult to understand. However, it is important to grasp what makes up a credit score so that you know what you have to pay attention to when trying to maintain or improve your credit score. Credit Bureaus There are three major credit bureaus that have credit information and scores on you. These are Equifax, Experian and TransUnion. All three of them will have different scores for you as they calculate...

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How to Get a Free FICO Credit Score

Obtaining your credit report helps you determine what areas need attention to improve your credit score, such as paying off a debt or making payments on time. You can also check for errors in the report, and make sure that no one is committing credit fraud by using your personal information. Several companies and websites offer free credit score reports if you sign up for a free trial of their service, and FICO is one of those corporations. Instructions...

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What Is the Average Person's Credit Score?

Your credit score gives you a good or bad reputation in the eyes of banks and lenders. It is based on your credit history and tells them whether you are fiscally responsible. You may not even know your score because you are not entitled to get it for free. You can purchase it from Fair Isaac Corp.--or FICO, the company that developed the score--or from the credit bureaus to see if you fall within the national average or in a more desirable range....

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What Does Delinquency on a Credit Report Mean?

Credit reports are financial records that record virtually every loan, credit card and other account. The Federal Reserve Bank of San Francisco explains that the information is gathered, stored and regularly updated by credit reporting agencies such as Equifax, TransUnion and Experian. They sell it to banks and companies evaluating credit and insurance applications. Certain items, such as delinquencies, affect the ability of borrowers to qualify for new accounts. Definition A delinquency refers to an account that is not being paid on time....

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Laws on Credit Ratings

Whether or not you pay your bills on time determines your credit score; your credit rating helps lenders decide whether they will conduct business with you. Credit ratings are governed by the federal Fair Credit Reporting Act. The three major credit reporting agencies operating in the United States are Equifax, Experian and TransUnion. On-Time Accounts If you pay your bills on time and keep an account open, the resulting positive account information reports indefinitely under the Fair Credit Reporting Act. Once you close the account, the...

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What Is a Fair Credit Score?

What constitutes a fair credit score varies from one lender to another. One lender may grant credit to anyone with a credit score above 670 while another lender may use 690 as the cutoff score. Different credit situations may also have different requirements. For example, a mortgage loan might require a different score than an auto loan. Types There are two major types of credit scores, FICO and VantageScore. They have different ranges, so a fair score on one scale might be a poor score on the other. FICO Scores FICO credit scores...

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Help with a Credit Profile

The average American had a credit score of 692 in January 2011, with some areas of the country having average scores in the 670s, according to the Experian National Score Index. You need a score higher than the average to get a loan at the lowest rate. Most consumers can improve their credit profile on their own, but counseling could help. Just watch out for scams. Who Can Help? When debt becomes unmanageable or you cannot fix your credit...

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About New Credit Advice on FICO Forums

FICO Forums was developed by Fair Issac Corp., which owns the website myFICO (See Resources section). FICO Forums gives free access to anyone who chooses to participate in the forum and offer advice. Who Publishes in FICO Forums The FICO Forum website is for U.S. consumers to share their knowledge and experience with credit with one another. It was created to help educate consumers about credit. Information in FICO Forums FICO Forums...

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Which Factor Has the Largest Impact Percentage-Wise on Your Credit Score?

Credit scores are calculated by a company called Fair Isaac Corp.--which originated the scoring system--and the Equifax, TransUnion and Experian credit bureaus. The formulas are all similar, and the resulting three-digit numbers tell lenders whether you are statistically likely to pay your bills or default. Your scores come from five different categories of financing information, each of which has a certain percentage of influence on the final number. Payments Your payment history on your credit-related accounts has the largest impact percentage-wise...

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How to Raise a Poor Credit Score

Credit scores are indicative of your financial health at any given time. Credit scores change based on the amount of outstanding debt, your payment history, the types of credit listed on your report, the length of time you have been using credit and new credit inquiries. Poor credit scores can prevent you from obtaining a loan, increase your insurance rates or prevent you from getting a job. You can raise a poor credit score with attention to detail and by managing your credit accounts responsibly. Instructions 1 Pay your bills on time....

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How Credit Scores Are Computed

Credit scores can control whether or not you get a loan and a credit card, but even the biggest experts in the field of credit scoring don't always agree on the value of the specific variables in the major credit scoring equation. If anyone knew the credit scoring formula, competitors could steal the FICO formula and make their own scoring system. Fortunately, we have a pretty good idea of how scores are computed. Identification The FICO...

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How to Translate a Credit Score

Credit reports provide potential lenders with information about the risk associated with lending to a particular borrower. Checking your credit report is important because it verifies the information available to creditors. A free credit report is available once a year from three different companies: Equifax, Transunion, and Experion. The score ranges from 300 - 950 and is based on several factors. Each company provides different information but the basic layout is the same. With a quick overview, it is possible to translate this report into useful...

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Importance of Establishing Good Credit

While it may seem like one three-digit number couldn't possibly have that large an impact on your life, if the number in question is a credit score, it definitely can. Your credit score, the overall rating of your creditworthiness, can play a part in determining everything from where you live to how much money you ultimately end up paying for financed items. To ensure that your credit leaves you with as many options as possible, and money in your pocket, dedicate yourself to establishing good credit. Getting Approved When you apply for...

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Does Negative Credit Fall Off Your Credit Within Seven Years?

Most negative information drops off your credit report after seven years. However, bankruptcies remain 10 years, and some negative information may remain forever. To verify the information in your report, review your credit reports at least annually. Scrutinize your report carefully to ensure that the report is accurate. Credit Card Negative credit card information stays on your credit report for seven years. The seven-year time frame begins...

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Does a Small Claims Court Judgment Go On Your Credit?

A small claims court judgment against you is recorded on your credit report. These civil judgments are automatically sent to all three credit bureaus and often result in significant negatives on your credit report. Civil judgments will remain in the public records section of your credit report for at least 7 years --- after the judgment, not the date of the debt. Credit Bureaus Get Public Information The courts do not need to specifically...

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Advantages & Disadvantages of Credit Reports

Understanding your credit, or the credit history of someone you or your business considers lending money to, is essential to making good borrowing and lending decisions. Credit monitoring agencies are private organizations that collect information about how and when individuals borrow money and compile it into documents known as credit reports. Credit reports are valuable resources, but can also serve as obstacles for borrowers. Credit Monitoring Credit reports give consumers an accurate, convenient way to monitor their own credit. The...

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What Lowers Your Credit Score

When you purchase a vehicle or buy a home, a lender will request a credit score to determine your creditworthiness. A high credit score will yield lower interest rates and lower payments. A low credit score, on the other hand, will yield high interest rates and payments.There are many factors that contribute to having a low credit score. Being aware of these factors can make the difference in your finances. Making Late Payments Payment history...

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Can You Repair Your Credit?

Your credit score and history bears great influence on your life, affecting your ability to buy a home, obtain a loan, enter into a cell phone contract, purchase auto insurance and even get a job. When you suffer a financial hardship that results in detriment to your credit, all is not loss. With time and responsible use of credit, you can rebuild your credit score and bounce back from financial disaster. Your Rights You have a right to inspect...

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Government Laws on Free FICO Scores

Checking your credit report annually can save you from a mountain of financial troubles. Not only does it show you what creditors see when you apply for credit, but it helps you spot suspicious activity on your credit accounts. The Federal Trade Commission recognizes these benefits, which is why it allows you to check your credit report for free every year. Unfortunately, this doesn't include free access to your credit score. Fair Credit Reporting Act Under the Fair Credit Reporting Act, you may access your credit report for free once every...

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Why Is a Credit Report Important?

A credit report is important for a number of reasons. When you make purchases by credit, your payment history is reported to the three major credit reporting agencies. Many companies will review your credit history to determine if they want to do business with you. Mortgage Loans If you have a credit report with bad credit, you may have to pay a higher interest rate for a mortgage loan, which can cost you thousands of dollars in finance charges over the life of the loan. Employment Some employers will review your credit report before...

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Do Landlords Report Tenant Payment History to Credit Bureaus?

For years, rental history never appeared on a credit report, because the credit bureaus did not find data from private leasers reliable or available for all consumers. In 2010, your rental history can appear on the reports of some credit rating companies, but this is the exception rather than the rule. Even if your rent does not appear on your report, it can still make you creditworthy. Identification Landlords cannot report directly to the...

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How to Clean Your Credit the Legal Way

Before heading to a car dealership, mortgage lending office or employment line, clean up old, inaccurate and incomplete credit information from your credit report. A good credit rating can qualify you for lower interest rates, more attractive loan products and higher paying jobs. While not all employers consider an applicant's credit history when making employment decisions, many do. Clean up your credit using several effective credit repair tips....

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How to Do a Credit Score Check Without a Computer

AnnualCreditReport.com is the official source for getting your free credit report, but it isn't the only option if you want your credit score, but don't have access to a computer. You can contact the credit bureaus directly by phone to request a copy of the report and credit score. Each citizen is entitled to one free credit report each year, but to see your credit score, you'll have to pay a small fee, usually less than $10. Instructions 1...

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How to Check Credit History

Knowing what's on your credit report is important and can determine how informed you are about your credit history. Checking your credit history and being sure that your payment history is accurately reported is moderately easy and can be accomplished in a matter of minutes. There are three credit reporting bureaus. Each collects and maintains your credit history. Other sites allow you to gain access to your credit report, but these services can only link back to the credit-report history that is provided by the three credit-reporting bureaus....

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The Credit Score Required to Buy a Car

Unless you have the necessary cash to purchase a car, you're going to need to finance the vehicle of your choice. If you haven't done a lot of car shopping in your life, you may be wondering what credit score you need to secure an auto loan. There are a lot of factors that come into play when applying for an auto loan, and there's no magic credit score that will get you approved. Range of Credit Scores The terms "Good credit" and "Poor credit" don't really mean anything if you have no idea what constitutes as good and poor credit. A credit...

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Tips on Boosting a Credit Score

Your credit score is determined by proprietary formulas developed by the FICO scoring company and the credit bureaus. The My FICO website explains that certain factors affect the calculation. Boost your score by concentrating on the most heavily weighed factors. Your credit reports, from which scoring information is obtained, will reflect your efforts. Pay Bills on Time Your payment history on your credit reports shows whether you pay bills by the due dates and any delinquency period when you are late. The My FICO site advises that 35 percent...

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How to Dispute Credit Report Entries

Having good credit determines if you will have the ability to buy a home or purchase a car at an affordable price. The interest rate on items you buy on credit is affected by your credit score. The lower your score, the more you pay in the long run. Negative entries on your credit report decrease your score and make you look like a bad credit risk. Check your credit report regularly to ensure all the accounts are accurate. If you find inaccuracies,...

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Will IRS Delinquency Affect a Credit Score?

The Internal Revenue Service is charged with collecting taxes on behalf of the federal government. Filers are expected to pay any taxes owed. Failure to do so can lead to the IRS taking legal action against you. Identification If you're delinquent on taxes owed to the Internal Revenue Service, the IRS can file a tax lien against you. These liens are reported to the credit bureau and will appear on your credit report as a public record. ...

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How to Monitor All Three Credit Bureaus

You have two choices for ways to monitor all three credit bureaus (TransUnion, Equifax and Experian). You can choose to subscribe to a monthly monitoring service such as CreditReport.com that monitors your credit for you. Your second option is to pull your credit reports from each agency, for free, and complete an annual check-up of your credit. The main difference is that the monitoring service alerts you to any changes to your credit reports immediately...

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