How to Recover After Bankruptcy & Foreclosure

Situations such as a bankruptcy or foreclosure can devastate your credit rating, and it can take years to recover from the damage. During this time, you'll likely experience a few loan denials or you may acquire higher interest rates on credit cards. While both situations are bothersome, bankruptcies and foreclosures do not last forever. Both remarks are deleted from your credit report within ten years (seven years for a foreclosure). Fortunately,...

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What Does Key Derogatory Mean on My Credit Report?

A key derogatory on your credit report is any account that has gone into collections. These entries have the potential to severely damage your credit rating and prevent you from being approved for credit and loans in the future. Facts Although "key derogatory" sounds as if the entry is of special importance, it is merely a classification used for collection debts. All collection accounts will be categorized as key derogatories. Function...

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Does Paying Off a Large Balance Affect Your Credit Score?

If you have several open accounts and a large chunk of money, you may wonder if you would be wise to pay off a large balance on an open account. The effect that paying off an account has on your credit score differs depending on whether you pay off a balance on a revolving account, such as a credit card, or on an installment account, such as a car or student loan. Paying off the balance on a revolving account is more likely to significantly raise...

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How to Remove a Late Payment on a Student Loan

A portion of your credit score is calculated by how well you pay regularly scheduled payments. If you make a payment on any debt 30 days after the payment is due, you will receive a late payment notation on your credit report. Even one late payment can cause your credit score to drop. The Fair Credit Reporting Act requires that all information contained within consumer credit reports be accurate. If you notice a late payment notation for your student loan appearing on your credit report and you know you made your payment on time, you can take...

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Can a Collection Agency & the Original Credit Company Report You on Your Credit Report?

Your credit report and credit score help determine whether you will get approved for loans or credit cards, what credit limit you can have and what interest rate you will be charged. If you had an unpaid account in the past and the original lender sold that account to a collection agency, you likely have two black marks on your credit report. The original lender and the collection agency both can add information to your credit report. That information will remain on your credit report for years. Bad Debts If you go without paying your monthly...

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How to Improve a Credit Score in Canada

If you plan to get a mortgage, car loan or personal loan anytime in the future, it's essential to have a good credit score. Lenders use credit scores to decide whether to give you credit and the terms of that credit. Generally, a higher credit score will give you lower interest rates and more lending options. There are two major credit reporting bureaus in Canada: Equifax and TransUnion. If you have ever used credit, you will have a file with at...

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How Are the Three Major Credit Bureaus Different?

Equifax, Experian and TransUnion are the three credit reporting agencies responsible for producing your credit report, which creditors use to determine whether or not to lend to you. The information these agencies produce is often similar, but may vary due to differences in the agencies themselves. What's On Your Credit Report Your credit report is essentially a record of the debts you owe and your history of repaying them. It lists every lender or creditor with whom you have an account, how long the account has existed, how much you owe...

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How Much Will Closing a New Card Hurt My FICO Score?

Closing a credit card account may force you to curb your spending habits, but it is usually a poor decision if you want to raise your FICO score. Actually, closing a credit card account will likely lower your credit score. If you decide to close an account, failing to do it properly could hurt future applications for credit. Misconception Canceling a new credit card account, even one less than a day old, does not remove it from your credit...

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How to Apply for the Best Secured-Loan Rate

A secured loan is a loan backed by collateral, such as a mortgage, automobile loan or secured credit card. The collateral can be taken by the bank or lender if you default on the loan. In the case of a secured credit card, money you have on deposit serves as collateral. The secured nature of loans often makes them easier to qualify for than unsecured loans. However, you must meet certain standards to qualify for the best rates on secured loans. Instructions 1 Obtain a free copy of your credit report from AnnualCreditReport.com. This website...

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How Long Does It Take to Raise Your Credit Score 100 Points?

There are many reasons why people would like to have a higher credit score and the good news is that there are many ways to try and raise your credit score by 100 points. The length of time that this change occurs can differ but is based upon the methods you use to raise it. Your FICO score (beacon score) can range from 300-850, also, please note that there are three scores available, via Experian, Equifax and TransUnion. Payment History Thirty-five percent of your score is based upon payment history, so every month that you make a payment...

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How to Cancel My Monthly TransUnion Credit Report

If you signed up for TransUnion's free 30-day credit report, you need to cancel the subscription before the 30 days are up, or else they are going to start billing you. You may also choose to cancel after a few months if you are no longer interested in receiving this service and monitoring your credit. To cancel your subscription to TransUnion, also known as TrueCredit, all you need to do is contact its customer service team and request a cancellation....

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How Does Disability Affect Credit?

As many as 20 percent of citizens in the U.S. have some sort of disability, according to the World Bank. If you ever experience a disability, even just for a short period, you could wreck your credit score for years. Thus you should always prepare for the worst, because disability insurance coverage through an employer may not be enough to pay for your expenses. Identification Disability's most prominent effect on credit is the reduction in the ability of the borrower to pay his bills due to lost income. If your disability coverage fails...

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Canceling Credit Cards and Credit Score

Any event involving your credit accounts can have an impact on your credit score. Closing a credit card normally has a negative impact on your credit score, assuming that your creditors report the card closure to the credit bureaus. However, many factors impact your credit score, so closing one card has more of an impact on someone who only has a few open credit accounts than someone with multiple accounts. History Credit reporting agencies calculate your average length of credit account history. If you have had several credit accounts...

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How to Improve a FICO Credit Score

Most people have applied for a car loan, mortgage or credit card at one time or another. And, as you probably know, part of the application process includes a review of your credit report. In addition to providing an overview of all your debts and financial obligations, your credit report also includes a FICO credit score. Although this numerical value may seem rather innocuous, it helps lenders determine whether you are eligible for credit and,...

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What Makes a Credit Score Bad?

Your credit score is determined using a software that weights different factors of your credit history. FICO scores are the most commonly used. Scoring System FICO scores can range from 300 to 800; the higher your score, the lower the credit risk to lenders. In general, any score of less than 600 is not great, but a score of less than 500 is considered high risk and will make it difficult for you to secure credit with reasonable terms. ...

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What Do I Consider My Credit Score if I Have None?

Some people pride themselves on having no credit score -- proudly declaring a score of "zero." Not having a credit score could be beneficial because you have no loans growing. However, you may have accounts that should go toward building your credit but the major credit bureaus either don't know about them or are not picking them up. Identification The credit reporting agencies do not rate consumers who have an empty credit profile or a limited credit history. In this case they just report something in the vein of "insufficient credit history."...

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What Can I Do if a Creditor Refuses to Remove Something on My Credit Report?

You may feel resentment when a creditor reports missed payments on your report, especially when other creditors allow you a longer grace period to pay a debt, but you probably can do nothing about a negative item. Unless the creditor reports false information, it can legally report something to the credit reporting bureaus. Dispute Item You can dispute anything on your credit report -- even legitimate items -- if you think the creditor cannot verify the accuracy of the data. For example, if a court loses record of your bankruptcy petition,...

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How Long Can Items Stay on Your Credit Report?

Basics There is a variety of different items that can be attached to your credit report. Once an item is attached to your account history, it will take at least seven years for the item to be removed from your credit report. Once the item is removed, your credit report score is increased. However, there are exceptions to the seven-year rule that govern the majority of items attached to your credit report. How Long Items Can Stay on Your...

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How to Purchase a Credit Report

If you are in the middle of checking your credit accounts for corrections, you may need more than just a yearly view of your credit report. Waiting 12 months until the next time you check is fine when there is nothing strange going on with your credit. For those trying to clear up fraudulent accounts or for victims of identity theft, track your credit account more regularly with an online service. Instructions 1 There are several reputable credit monitoring services to choose from online, and several more that will try to push more services...

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The Difference Between a Credit Report & Credit Score

In ads on TV, radio and the Internet and in newspapers, you hear and see announcements about credit reports and scores. It has become so constant that borrowers are getting the message that to buy and finance anything, they need to check their credit report and scores. You can check your credit report once per year for free by going to annualcreditreport.com. (see Resources). You can access your scores for a small charge. These are not one in...

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How to Obtain a Credit File in Australia

Getting a copy of your credit file in Australia is similar to obtaining information on yourself in most countries of the world. The credit bureaus Veda Advantage and Dun and Bradstreet report information on Australian consumers. Having an accurate credit file is important because it is a major factor in whether banks and finance companies will lend to applicants. Fortunately, there are ways to find out what information Australian credit bureaus keep under your name for free or a low price. Instructions 1 Visit Veda Advantage's website (see...

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Tips and Self-Help for Credit Repair

Credit repair is a business for some firms, but the Federal Trade Commission (FTC) explains that people can use the same tactics for self-help without paying exorbitant fees. A federal law called the Fair Credit Reporting Act (FCRA) sets forth rules for the credit bureaus that let you get rid of some harmful credit report entries, and the My FICO scoring education website spells out areas of concentration to repair your score. Check Your Credit You do not know the exact state of your credit until you review your reports with the TransUnion,...

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How Long Does a Charge-Off Stay on Credit Bureaus?

Having a clean credit report leads to lower interest rates, lower fees and more approvals for credit cards, lines of credit and loans. Unfortunately, many consumers face financial hardships and end up with blemishes on their credit report, such as charge-offs. A charge-off can cause future financial problems. According to Bankrate, charge-offs are the number one reason for credit denials. What are Charge-offs? After a consumer fails to make...

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Help Fixing a Credit Report

Fixing a credit report can involve disputing errors and improving areas reported by your creditors and lenders. The reasons for fixing a negative credit report are plentiful. These include the ability to qualify for loans and acquire low rates on financing. Rather than live with negative information on your personal file, be proactive and fix your personal report. Credit Report Credit reports are documents that lenders and creditors review after receiving your application for a loan or credit card. Banks don't offer credit and loans without...

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5 Steps Involved in Credit Management

Credit management is a critical part of taking good care of your financial health. Good credit will garner you superior credit offers, and ensure you get the best deal. This in turn will reduce interest payments and save you money. To get this beneficial circle started, follow these five steps to keep your credit in order. Minimize Credit Applications Applying for credit negatively affects your credit score; don't ask for it unless you need...

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How to Increase My Credit Score Today

A few tips that are followed by good credit habits will help increase my credit score and yours. Instructions 1 Knowing my credit score. Having an idea of where to begin will allow me to measure my credit score improvement. 2 Order a copy of my credit report. My credit report will display information that creditors, employers and others have submitted. It's in my best interest to know that the data is correct. To stay updated, I order a copy of my credit report quarterly. 3 Request my credit score. When ordering my credit...

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How to Put a Fraud Alert on Your Account

According to the Federal Trade Commission (FTC), as many as 9 million Americans suffer identity theft each year. Identity thieves steal your personal information--such as your Social Security or credit card number--to rack up charges on your credit cards, open a new credit card in your name, establish a phone or bank account in your name or even rent an apartment. Not only do identity thieves steal your money, but they also can seriously damage your...

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Should I Bother Correcting Incorrect Addresses on My Credit Report?

It is important to keep credit reports up to date and correct. Correct the Address Some financial experts say it is best to keep the credit report as up to date as possible, including current and previous addresses. According to the Federal Reserve Bank of San Francisco, lenders look at the credit report before loaning money or authorizing credit limits and need to see accurate information before making a decision. Leave...

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How to Figure Your Credit Score

It doesn't get any worse than this: Your car has taken its last breath and you need it to go to work. You find a new one, but the loan arranger at the dealership tells you you've been turned down for a loan, or will pay high interest, because of bad credit. You weren't aware of this problem because, like most people, you didn't check your credit score before you applied for that loan. In fact, you probably don't know how a credit score is figured, either. Here's some helpful information to help you determine yours. Instructions 1 Know how...

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Does a Short Sale Ruin Credit?

Credit scores are not calculated on one specific item; the score is based on a compilation of many factors. Short sales show on your credit report as a home lost to creditors, but a short sale is a better alternative than foreclosure or bankruptcy. If you are concerned that a short sale will ruin your credit, consider the impact of the alternatives. Definition A short sale is the term for selling a home for less than the outstanding balance on the mortgage loan. Short sales must be approved by the current mortgage holder. Many lenders...

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Introduction to Consumer Credit

When you apply for a car, personal, business or mortgage loan, lenders rely on your credit score to determine whether to lend you money, and at what interest rate. Credit Bureaus Not using credit wisely can hurt your credit score. Three national credit bureaus--TransUnion, Experian and Equifax--compile credit reports on consumers. If you miss payments, pay bills late or file for bankruptcy, it's on your credit report. Credit Score...

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