How to Protect a Child's Social Security Number

Protecting a child's Social Security number lowers the risk of identity theft, in which a stranger assumes the child's name and obtains credit usinsg the name. Children who are victims of identity theft may not be aware of the situation until they are adults and attempt to secure their own credit. Parents can take several preventative steps to secure a child's Social Security number and to protect a child against identity theft. Instructions ...

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How to Rebuild Bad Credit Easily

Individuals with bad credit understand the disadvantages of having a low credit score. Loan application denials, higher interest rates and in some cases, higher insurance premiums all result from bad credit. But there are methods to help you rebuild your credit easily. Whether you acquire a low credit score from bad credit habits or a serious situation like a bankruptcy, you can fix your credit history and maintain a high score. Instructions ...

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Can Collection Agencies Keep Updating Your Report?

Experian, TransUnion and Equifax are the three primary consumer credit reporting agencies whose business model relies on compiling consumer credit information. These three agencies report account listings from original creditors, debt buyers and collection agencies. Your credit report may consist of multiple negative entries tied to one original credit account. FDCPA & FCRA Regulations The FDCPA --- Fair Debt Collection Practices Act --- regulates debt collection agency and debt buyer collection activities. The FCRA --- Fair Credit...

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About Free Monthly Credit Reports

That catchy jingle that seems to be on all of the cable stations touts a novel service that gives a free credit report. Others claim to provide free monthly credit reports. This does not seem possible, especially since the credit bureaus (where the credit report comes from) only give a free report once a year or when you are turned down for credit. The credit bureaus otherwise charge for credit reports and reporting services. It makes you wonder how the companies with the catchy jingles get away with it. Well, they don't. No Free Lunch ...

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What Does Credit Rating Mean?

Your credit rating plays a huge role in determining your financial well-being. Your credit rating is also referred to as your credit score. Your credit rating is determined by your past willingness to pay your debt obligations to creditors. Significance Creditors may use your credit rating to decide whether or not to extend credit to you. Creditors and lenders use your credit rating to help determine the likelihood of default on a loan. Your credit rating impacts your ability to get a mortgage, auto or personal loan. Credit Scores ...

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How Does a Free Annual Credit Report Work?

If you have never checked your credit report, you should do so immediately---it is free and you may find errors that cost you thousands more on loans. Obtaining your free credit report requires a few basic pieces of information and possibly details about your financial profile. Watch out for scams, because only the Annual Credit Report website offers a truly free report. Identification The Annual Credit Report is a portal operated by the three major credit rating agencies in the U.S. and the only website to offer a no-strings-attached free...

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How to Obtain an Official FICO Score

The Fair Isaac Corporation invested the first credit scoring model in 1958--the FICO score, according to Yahoo Finance. Since then, lenders have been using the FICO score to approve credit applications in the U.S. Until early 2009, U.S. consumers who had active credit reports could get a FICO score for all three of their reports, until Experian cut its ties with Fair Isaac, according to a consumer alert published by the Experian, and began selling their Plus and Vantage scores. Today, U.S. consumers can still receive an official FICO score for...

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What Are Three Benefits of Having a Good Credit Record?

A negative credit history can induce a stressful situation when applying for financing. According to the Fair Issac Corporation, a credit score above 700 is considered excellent, whereas a score below 600 is considered high risk. Lenders take credit scores into account before approving anyone for a loan, and people with lower scores have fewer options available to them. There are numerous benefits to having a good credit record, and recognizing these...

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What Can I Do to Fix My Credit?

If your FICO score is leaving you frazzled, there are ways to improve your credit score. By understanding how credit bureaus rate your credit, you can identify what is weighing you down. Having a good credit score is even more imperative in times of economic downswings when banks are stingier with offering loans. To check your credit report, Experian.com offers a free report. Explanation of Credit Score Your credit score consists of five areas. The first, which accounts for a whopping 35 percent of your credit score, is how often you pay...

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What Does a Repossession on Your Credit Report Look Like?

Being late on your car payment could have dire consequences. If your payments to your lender are delinquent enough, your lender may opt to repossess the vehicle. The repossession will then appear on your credit report for future lenders to view. Facts When a car is repossessed, that fact will appear in the trade line for the original auto loan on your credit report. Features A repossession is a negative notation on your credit report...

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Things That Can Cause Your Credit Score to Drop

A low credit score is easy to achieve if you avoid demonstrating restraint in the area of personal finance management. The three major credit reporting agencies (TransUnion, Experian and Equifax) determine your credit score on the basis of documented information that indicates your financial conduct. Unwise spending habits are the source of most credit score reductions, as they cause credit reporting agencies to evaluate you as a credit risk. ...

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Secrets to Fix My Credit

Many companies and unscrupulous people claim to hold the magic key to repairing bad credit overnight. The hard truth is that there isn't a magic button to raise your credit score -- it takes persistence, dedication and a little inside knowledge on the credit industry to repair your credit to a positive standing. Pay Bills on Time Your payment history comprises 35 percent of your credit score. Creditors report payments that are more than 30 days late to the credit bureaus, so even one late payment can lower your credit score. Routinely skipping...

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Does Chapter 7 Decrease My Credit Score?

Over 1 million people file for bankruptcy each year to get legal protection from creditors, according to the Administrative Office of the U.S. Courts, but they also hurt their credit rating significantly in the process. While bankruptcy is the most disastrous outcome for your finances, it might be the best option for your long-term financial health and creditworthiness. At the worst, you might have to wait several years to get over a bankruptcy, and that might be better than a lifetime of struggling to pay bills. Identification All bankruptcies...

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How to Dispute a Credit Bureau

Credit bureaus are not perfect, and often include incorrect information on consumer credit files. These mistakes can lower your credit score and make it difficult for you to get loans, insurance or even a job. Fortunately, it's not difficult to dispute a credit bureau that has included erroneous data on your credit report. Instructions 1 Check your credit reports for incorrect information. Request a copy of your credit report from each of...

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Regulations of Credit Rating Agencies

Credit rating agencies (not to be confused with consumer credit bureaus) are responsible for keeping investors informed about the creditworthiness of financial instruments such as stocks and bonds and the companies that issue them. A level of trust must exist between the investor and the credit rating agency. To this end, in April 2009, the Securities and Exchange Commission (SEC) passed new rules under the Credit Rating Agency Act of 2006. Enhanced...

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Things to Do to Raise Your Credit Score

Some people don't understand the importance of maintaining a good credit score. True, acquiring and keeping a high score requires a consistent plan, but the benefits are well worth the effort. When applying for a credit card or home loan, a good credit rating helps you get an approval, and you're more likely to get a low finance rate. Don't Ignore Old Debts Just because a creditor stops collection attempts on your delinquent account doesn't mean you're off the hook. You're still responsible for this debt, and failure to satisfy the debt...

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Advantages & Disadvantages of Credit Rating

Many people know that a high credit rating is an advantage, while people with a low credit rating are often hard-pressed when looking for loans and other financial products. Often, their low FICO score brings them the worst terms available. However, people with a high FICO score are welcomed by banks, employers and landlords. There are both advantages and disadvantages to the credit rating system for both lenders and consumers alike. Definition of Credit Rating In the most basic terms, your credit rating is a three-digit number that signifies...

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How to Report an Error on Credit Reports

Reporting an error on a credit report involves contacting the credit agency and the creditor who made the erroneous report with documentation validating the disputation. The three major credit bureaus are Experian, Equifax and TransUnion. The Federal Trade Commission (FTC) mandates that the credit reporting agency investigate any claim of error and to provide some sort of response within 30 days of receiving the complaint. Instructions 1 Gather documentation demonstrating that a particular entry on a credit report is somehow erroneous. Bank...

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How Many Years Before Credit Debt Falls Off Your Record?

Your credit report contains records documenting your financial behavior. In addition to positive financial data, such as mortgages, credit cards and car loans in good standing, it also lists negative information, such as your unpaid debts, charged-off cards and collection accounts. This negative information damages your credit rating and can impact your chances of finding a job or getting additional credit. Fortunately, negative information doesn't stay on your credit report forever. Collections and Late Payments Whenever you pay a credit...

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What Is Tier One Credit Rating?

Tier one credit is one of the highest rankings issued by the nation's credit-rating services. Applied to customers with an average FICO score of 770 or above, excellent credit allows the holder access to lower interest loans, cheaper car insurance and more opportunities. Function A top credit score can open many doors for a consumer, as well as save them money on interest and fees. A tier one rating offers many perks. Excellent credit holders...

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Does a Job Credit Check Affect Your Score?

Employers check credit scores as a way to gauge the financial responsibility of potential employees. These checks appear on the credit report as a soft inquiry. This record appears only on the credit agency report that is used for the inquiry, i.e., TransUnion, Experian or Equifax. Although credit checks of any kind appear on the credit report, no one is ever denied credit based on employment credit checks. Soft Inquiries Every inquiry...

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5 Easy Tips to Boost Your Credit Score

Your credit score determines whether you are eligible to receive credit, how much credit you can get and what interest rate you will pay. Credit scores are also used in determining approval for apartment leases. With all these financial determinations made based on your credit score, it is important that you know what you can do to boost it. Make Regular and Timely Payments Make sure your payments are on time. Making sure payments are...

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What Does DFD/DLA Mean on a Credit Report?

Date of first delinquency (DFD) and date of last activity (DLA) are common abbreviations found on a credit report. Understanding these abbreviations makes it easier to understand what credit reporting agencies are saying about you. DFD Defined Date of first delinquency means the date when you first had a late payment on the account. Credit reporting agencies may not report anything older than seven years, so late payments made since then...

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Does Paying Off Derogatory Closed Accounts on Your Credit Report Increase Your Score?

On a credit report, a closed account deals a large blow to a consumer's financial history. Not only does it show that the account holder couldn't pay the bill, but that the debt is old enough to allow for a write-off. Paying this old debt may feel good, but it doesn't serve to increase the credit score in the long run. Some experts even argue that payment may lower the score and re-start the clock on the legal statute of limitations, allowing the...

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Will Reinstating a Mortgage Improve Your Credit?

If you are contemplating reinstating your mortgage, it is probably because your bank has started foreclosure proceedings. You now have to worry not only about losing your home, but incurring a terrible credit score. Although reinstating your mortgage won't improve your credit score immediately, it is a far better alternative than letting the bank proceed with foreclosure. Identification of Need Reinstating a mortgage -- paying the delinquent balance so your account becomes current -- probably won't have much of an affect on your credit...

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When Delinquent Accounts Are Removed From a Credit Report Does It Improve Your Credit Score?

Over 9 percent of credit card holders fell behind on their payments in May 2010, this might mean the credit card company raises their interest rate, but that one late payment also taints the account for years. You can eventually remove delinquent accounts or wait out any bad items. Most of the time this improves your credit score. Identification Delinquent accounts lower your score more than just about any other item. A foreclosed mortgage, for instance, lowers your score by up to 160 points, according to online financial information resource...

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How to Remove Old Items From a Credit Report

Your credit report is one of the most important reflections of who you are as far as most businesses are concerned. The three major credit bureaus keep track of your reliability as a borrower, and this information is used by credit lenders and businesses such as your electric company so they can determine whether you are a good credit risk. If your credit report contains old information that negatively affects your score, you have a serious problem...

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How to Improve Credit Score in One Year

Most information and accounts stay on a credit report for more than five years. Even closed accounts will appear on a credit report for years. Although an individual may have improved his financial standing with a higher salary, it is still difficult to get good interest rates with a low score. A credit score cannot magically be fixed in one year, but by being proactive you can reverse the damage. Instructions 1 Get a copy of your credit report and score from each of the three leading companies. Look it over for any mistakes such as accounts...

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Problems With an Annual Credit Report

Your three-digit credit score is an important number: Lenders of all types use it to determine whether you qualify for mortgage, auto or personal loans. They also rely on it to set the interest rates on these loans. If your score is high, you'll pay a lower interest rate. This is why it's so important to check your credit reports at least once a year. By doing so, you can uncover any problems, such as incorrect information about your bill-paying habits or open credit card accounts, that could lower your credit score. Missed Payments Visit...

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What Is the Difference Between Vantagescore & FICO Score?

The three main credit reporting bureaus -- companies that collect consumer credit information and furnish it to lenders -- have long produced credit scores using formulas devised by the Fair Isaac Corp., which gave the scores their name: FICO scores. In 2006, the bureaus began producing scores based on a formula they devised themselves. They call their version the VantageScore, and they offer it to lenders and consumers alongside the FICO score. Background Fair Isaac developed its first general-purpose credit score, the "Beacon Score,"...

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How Do Tax Relief Services Affect Your Credit Rating?

Tax relief services might save you thousands of dollars when you have to appear before the Internal Revenue Service to negotiate a tax debt. Not only does this save money, it could help your credit score, because the IRS will probably file a tax lien once it has to start collection procedures. Going to a tax relief service, however, is a risky move because it could just cost a lot of money for no benefit. Identification When you owe the IRS money, you have the option of hiring a third party to represent you in tax disputes. Tax services...

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Why Is the Credit Score That My Car Dealer Pulled Different From the Score I Pulled?

A credit score is a measure of creditworthiness banks and lending organizations use to make loan approval decisions. This three-digit number, also known by names such as FICO score and credit rating, can determine whether you get access to an automotive loan, mortgage, credit card or other type of credit. You can have different credit scores in some cases. Why Credit Scores Differ The three major credit bureaus use the Minnesota-based Fair Isaac's computer credit scoring algorithm to calculate your credit score, which can range from 300...

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How Often Do Creditors Report?

The information that appears on your credit report does not get there automatically. Each of your creditors reports account information regularly to the three major credit bureaus--Experian, Equifax and TransUnion--that gather information for your credit report. Most creditors send information to the bureaus once per month. Timing Each lender chooses which day during the month to report account information. The day is consistent month-to-month, so you will always have one month worth of new information each time the lender reports. Some...

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How Much Will My Credit Score Go Up When a Charge-Off Drops Off?

Your credit score is a three-digit rating based on your credit history, which lenders use to determine your creditworthiness. Credit problems such as a charged-off debt can lower your credit score, but these negative marks do not remain on your credit history forever. Once a charge-off drops off your credit history, you should see an improvement in your credit score. Charge-Offs If you stop making regular payments on a credit card or loan,...

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When Will I Have Decent Credit After a Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a legal proceeding in which a federal court reorganizes your outstanding debts, allowing you to repay your creditors over a long period of time, ranging from three to five years. Although filing for Chapter 13 protection helps you get your finances in order, it severely damages your credit score. However, the credit rating impact from Chapter 13 doesn't last forever. Expiration Chapter 13 bankruptcy will drop off your credit report seven years after the court approves your debt repayment plan. Your credit score...

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Does Opening a Checking Account Lower Credit?

Ironically, even though lenders often ask about your current banking or savings accounts, the credit scoring systems used by lenders rarely gives credence to your banking habits. Opening a checking account, however, may have certain credit implications, especially if you misuse it. It can also help you open other accounts at banks. Identification Banks may check your credit report if your checking account comes with overdraft protection ---...

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List Three Credit Bureaus

Credit can affect many aspects of an individual's life, including the ability to get loans, open a checking account and to be eligible for a mortgage. By law, as stated by the Federal Trade Commission, you have the right to a free annual credit report. Consumer credit is reported through the three major credit bureaus: Equivax, Experian and TransUnion. These companies also offer various offer services for consumers. Equivax Equifax is one...

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