How To Repair Debt Letters

Credit repair letters are easy to write, but they are supposed to be used for only one purpose -- to challenge incorrect information on your credit report. The credit bureaus are legally obligated to respond within about 30 days after receiving your letter. Federal law requires the bureaus to conduct investigations and prove that the information on their reports is true. If they cannot prove it, or cannot do it within the time allotted, the information...

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How to Pay Someone to Clean Up Your Credit

Those who find themselves struggling to make monthly credit card payments may want to consider paying someone to clean up their credit. Credit repair companies offer services that can do just that. The problem is, the Internet is flooded with scam artist companies offering to repair credit. It is important to be smart when searching for the right company to help repair your credit. Instructions 1 Do some research. Finding a legitimate credit...

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Three Largest Credit Reporting Institutions in the U.S.

According to the Farlex Financial Dictionary, "a credit report is a summary of your financial history. Potential lenders will use your credit report to help them evaluate whether you are a good credit risk." Experian, TransUnion and Equifax are the three major credit reporting bureaus. Consumers are entitled to one free credit report per year from each bureau, says Farlex. Experian Experian was created after TRW Information Systems &...

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How to Do a Credit Report on a Renter

Getting a credit report for a prospective tenant is an important step that you can take as a landlord to limit your potential risk. Credit reports show the record of the tenant for paying her bills on time. Most importantly, it will show whether that tenant has an eviction or foreclosure on her record. While past behavior is not necessarily indicative of what she will be like in the future, it's important enough to want to know before you make a...

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Why Doesn't My Lease Show Up on My Credit Report?

Credit reports are compilations of information assembled by credit reporting bureaus about your lending history. Any trade line, including a line of credit or a loan, can appear on your credit report. Many leases involve the extension of some form of credit to you. While these leases may appear on your credit report, in many cases they will not, for a variety of reasons. Credit Reports Your credit report includes only information that pertains to your access to credit, debt load, and record of paying back loans. While some leases are structured...

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How to Build a High Credit Score

Building and maintaining a high credit score can be challenging under the best of circumstances. But knowing what variables the credit rating agencies look for can make the process much less difficult. Although the exact formula for determining your score is a secret, getting a good score requires more than just eliminating all of your debt. Instructions 1 Control your spending. This is still the most important aspect of maintaining a good credit score. Don't give in to impulse buying, especially with big-ticket items like cars or boats....

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How Long Does it Take Once I Pay a Collection Bill for it to Show As Paid on My Credit Report?

Creditors typically make monthly reports to the credit bureaus. In instances where you have paid off a delinquent debt, the debt should show as having been paid within about 30 days of the pay-off date. However, in some instances creditors fail to notify credit bureaus about paid-off debts, and even if the debt shows as having been paid, you may not see a big rise in your credit score. Errors Under federal law, the three major credit bureaus -- Equifax, Experian and TransUnion -- have to provide you with a free annual credit report through...

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How to Check a Credit History in India

Everything we do financially can have an effect on a credit rating and, as with most things in life, going down is easier than going up. It is important that you check your credit history at regular intervals to make certain that it is correct. Inaccurate files can mean refused credit. It is only recently that it has become possible to check your personal credit history in India. The service is not free, and only one agency is appointed to offer...

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Does Paying Off a Defaulted Student Loan Restore Credit History?

If you default on any debt, you will receive negative notations on your credit file. Paying the debt afterward does not undo the damage to your credit report. In the case of some defaulted student loans, however, it is possible to repair your credit history by bringing the loan current. Types Student loans can be categorized as either federal or private. Federal loans are distributed by the U.S. government and private loans are distributed...

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How to Stop Unwanted Inquiries on Your Credit Report

Whenever an individual or company pulls up your credit report, it appears as an inquiry on your credit report. Hard inquiries are those by a potential lender that you initiate through an application for credit, and these affect your credit score. Soft inquiries include checking your own credit report, having an employer or landlord check your credit report, and inquiries for preapproved or prescreened credit card offers. You can take steps to stop unwanted inquiries of both types. Instructions Stop Unwanted Hard Inquiries 1 Apply for new...

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What Is a Bad Beacon Credit Score?

As of 2010, none of the three major credit reporting companies sells the FICO score used by most lenders, but they do provide credit scores based on the FICO model. Experian, for instance, sells the Beacon score. The Beacon score has the same numerical range as the FICO model, and it weighs the variables in its credit score formula much the same way the FICO formula does. Thus, a bad Beacon score means you probably have a poor rating at the other credit rating companies. Identification The FICO and Beacon scores range from 300 to 850, for...

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How to Obtain All Three Credit Reports

Credit is one of the most important financial aspects of adulthood. Credit worthiness determines whether someone can obtain a loan, travel or receive a good rate on auto insurance. One way that lenders and financial institutions determine someone's credit rating is to pull a credit report. For the consumer, obtaining all three credit reports from Experian, TransUnion and Equifax before obtaining a loan will prevent any uncertainty when a lender pulls...

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Why Do Some Employers Check Credit Reports?

Financial institutions want to check a borrower's credit: to ensure he is responsible with money. Employers, on the other hand, check credit so they can make a character -based assessment of a possible employee. They can infer many things about a person based on their credit. Profile Someone with a bad credit score may be seen as having a less than stellar character or have commitment issues. Some employers fear this will transfer into their work life. Security Reasons Jobs on the state and federal level may check credit to determine...

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Does Co-signing for a Mortgage Hurt My Credit?

A credit score, or FICO score, is a number that signifies the risk of lending to a particular borrower. Your credit score can affect how easily you can access credit and the interest rates you are charged on debt. When you co-sign a mortgage, you agree to pay for the debt if the primary borrower does not pay. Co-signing is likely to damage your credit score. Outstanding Debt The amount of debt you have versus your total amount of credit is one of the main factors that determines your credit score. The more debt you have, the lower your...

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I Want to Raise My Credit Score

Raising your credit score not only increases your chances of qualifying for a new loan or credit card, but it also decreases the interest rate you pay on borrowed money. Use several strategies to raise your credit score, some of which have an immediate effect and others that require a few years to have a significant impact. Lower Utilization Ratio One of the fastest ways to raise your credit score is to lower your utilization ratio. This number is the ratio of the amount you are currently borrowing on your credit cards to the amount you...

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What Information Is Found on a Credit Report?

A credit report is a detailed and current report of your credit history and activity. Your credit report is one of the most important pieces of information you have in protecting your name and assets and in helping you acquire credit for a credit card, car or home loan. Typically, when you apply for credit, a creditor will refer to your credit report. Personal Information Your name, Social Security number, address history, employment history and driver's license are on your credit report. Credit History Your credit report includes...

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Will Going Over My Limit on My Secured Card Affect My Credit Score?

About 14 percent of credit card holders are close to reaching the limit on their card at any given time, according to the 2008 CNN article "Credit: Know Your Limits." While people often think fees and rate hikes are the most serious consequence of going over the limit on a credit card, doing so also damages your credit. You can go over the limit on a secured card and damage your score just as much. Identification Secured credit cards are...

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How Will Credit Be Affected After Getting a Car Repossessed?

The more reliable you are about paying your bills on time, the higher you can reasonably expect your credit score to be. If you fail to pay your car payment, your lender may repossess the vehicle. The repossession will then appear on your credit report and hurt your score. Facts A car repossession will have a different effect on your credit score depending on how high it is. An individual with a high credit score can expect to lose more points...

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How a Foreclosure is Reported to the Credit Bureaus

The biggest worry of going through a foreclosure is, of course, losing your home. But you should also be concerned about the effect on your credit. Foreclosure can be very hard on your credit score and a note of the foreclosure remains on your credit report for seven years. Lender Reporting Your mortgage account is reflected on your credit report from the moment you take out the loan. Your monthly payment history is noted on your report via...

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Will Paying Off Charge Offs & Collections Boost My Credit Score?

Financial experts, such as Steve Bucci of Bankrate, say that paying a charge-off or collection account does not affect your credit score, but in some circumstances it might. However, the effect on your credit score usually is negligible. Far more important to creditors is the fact that you paid a collection or charge-off. Identification The status on a charge-off or collection account -- paid or unpaid -- does not affect your credit score; the credit scoring model looks at all such accounts as a negative. However, the outstanding balance...

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How Do I Change My Credit Report?

If you apply for new credit, such as a mortgage, car loan, credit card, or other form, the lending agency will likely use your credit report as a deciding factor in whether you get the loan, or in determining your interest rate. Any errors on your credit report can harm your chances of receiving the credit you need. The Fair Credit Reporting Act requires that creditors and credit reporting agencies provide accurate information in these reports. Because of this, all three of the major credit reporting agencies allow consumers to request changes...

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How to Stop a Debt Collector's Hard Credit Pull

A hard credit pull is when a creditor identifies a problem with your account, namely a late or missed payment, and inquires about you via credit bureaus. When a debt collector shows up on your report, it is called a hard pull because it can negatively affect your credit score; meanwhile, a soft inquiry just checks the status of your other accounts. Though there is no guarantee that it will work, you can take steps to try to stop a debt collector from doing a hard credit pull. Instructions 1 Contact the debt collector as soon as you receive...

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How to Add Aged Trade Lines to Credit

Today's financial environment demands higher credit scores. Apartment rental, automobile insurance and cell phone companies look at applicants as a financial risk. The philosophy is how a person handles their credit may indicate how they handle other aspects of their life. Adding seasoned tradelines to your credit report is a legal way to raise your credit scores and add good payment history to your credit. Seasoned tradelines are credit accounts that have been active for several years. They should have low balances and excellent payment histories....

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Do I Earn Credit With a Debit or a Savings Account?

Having a debit card or savings account shows financially responsibility, but won't improve a credit score, even though a debit card "looks" like a credit card. Opening a savings account or account linked to a debit card may boost your creditworthiness in the eyes of lenders. You could opt for a sort of "in between" card known as a "secured credit card." Identification Debit cards and savings accounts do not report to the credit bureaus, because...

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What to Do About Credit Fraud

Credit card fraud affects millions of Americans each year, and the problem is so widespread that most credit card companies have departments dedicated exclusively to credit card fraud. If you own a credit card, it's important to understand what to do if you believe you've been victimized and how you can prevent credit card fraud. Contact the Card Issuer The first thing to do if you believe you are the victim of credit card fraud is to contact...

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Consumer Credit Index Definition

The consumer credit index includes the amount of credit Americans have, the amount they are using and their confidence in their financial situation. The consumer credit index changes daily with the economy and has ups and downs as with any other index. Significance The significance of the consumer credit index is that it provides a realistic view of the country's creditworthiness as a whole. For example, the consumer credit index shows how in debt Americans are, how the debt is being paid off, when consumers on average are late in paying...

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