What Do the Numbers in a Credit Score Mean?

According to Fair Isaac Corporation, almost 90 percent of banks in the U.S. use your credit score to determine whether --- and how much --- credit to give you. Credit scores range from 350 to 850, and the higher your score, the more likely you are to receive lines of credit and loans with favorable interest rates. Each credit bureau may have a different score for you based on information reported to that bureau, but the overall formula for determining...

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How to Report a Delinquency to Equifax

Businesses and individuals can report delinquent accounts to Equifax if they have a paid membership with the bureau and can provide relevant documentation proving that the account is delinquent. Alternatively, you can contract with a collections agency which will report the debt for you either for free or in return for a low fee. Instructions 1 Gather all data relevant to the debt. To collect on a debt taken out by an individual, you'll need their full name, Social Security Number and date of birth. For a business. you'll need its Tax Identification...

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How to File a Credit Report Dispute

Your credit report is very important because it can affect your ability to get low interest rates, loans and even a job. You are entitled to a free copy of your credit report once every 12 months from each of the major credit bureaus. If you find any errors on the report, such as accounts that do not belong to you, late payments you made on time or incorrect credit limits, you should dispute them with the credit bureau reporting the error. If more...

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The Length of Time Required to Improve a FICO Score

There are many factors that determine the length of time it takes to improve a FICO score. An individual with a few late payments and moderately high credit card debt will have a much easier time repairing credit than someone who has recently filed bankruptcy and been through a foreclosure. Start working today to improve your score. The sooner you start, the sooner you will achieve a desirable credit score. Get a current credit report Spelling...

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How to Solve Money Problems Fast & Forever

When you spend more than you save, you quickly rack up debt. Reverse your spending habits and create a savings plan to help you pay bills. You can solve your financial distress in any economic climate. Even if you are not wealthy, you can get to a point of financial stability by avoiding debt and always paying cash. Solve money problems fast and forever by sticking to your budget and making reasonable financial decisions. Instructions 1 Manage...

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How to Obtain a Bank Credit Rating

When the financial market experiences hardship, you might wonder if your bank or credit union is safe. A few online tools will help you obtain your bank's credit rating, tap into detailed financial information and show potential warning signs. Instructions 1 Check out the Bank Rate Credit Rating website (see Resources). Choose your institution type (bank or credit union), the name of the financial institution and click "See results." After you put in the required information, this tool will produce a bank credit rating based on a variety...

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What Comes Up on a Credit Report?

Your credit report is more than just your financial history; it can tell an employer or service provider about your character. If you do anything that involves borrowing money or owing a debt, it probably shows up on your credit report. Credit histories tend to favor the consumer, because positive information stays on a report longer than negative information. Accounts A loan or line of credit only appears on your account when you use a lender that subscribes to the national credit reporting bureaus. Common accounts that appear on your...

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How to Boost My FICO Score Now

A FICO score is basically a three-digit number that represents an individual's credit worthiness. The score was originally conceived by Fair Isaac Co., and is used widely by banks and other lenders to determine an individual's eligibility for a loan, mortgage or other forms of consumer credit. FICO scores are based on a person's credit history and ranges from 300 to 850. Generally speaking, most creditors view scores of 760 and above as excellent,...

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What to Do With an Inaccurate Credit Report?

Having an inaccurate credit report can prevent you from getting credit cards, lines of credits and home loans. Inaccurate information contained in your credit report can also hinder job searches when certain types of background checks are involved and even cause you to pay more for car or home insurance premiums. Dealing with an inaccurate credit report is a methodical paperwork process. Investigate If you suspect there is inaccurate information contained on your credit reports, you'll want to order a copy of your credit reports from Experian,...

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The Fair Credit Reporting Act in Arizona

The Fair Credit Reporting Act is a series of federal laws that govern the way in which credit reports are handled. Arizona has passed its own legislation that mirrors this act with a few additional safeguards in place to better protect its residence. These laws strive to protect consumers from unfair use of their credit scores and unscrupulous credit reporting practices. Release of Reports Credit reports in Arizona are considered private documents. Copies of them can only be given if the consumer has approved the release of the report or...

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How to Clean Up Paid Debts on Your Credit Report

Your credit score is the single most important element that businesses use to assess your trustworthiness. You need at least fair credit to get a credit card or a loan, and you need a great credit score to get even a decent interest rate. Paying off your existing debt is a great way to raise your score. Once you make the final payment on a debt, your credit report should be corrected automatically within about 60 days. If the debt still appears on...

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Simple Steps to Repairing Credit

You may feel that it's impossible to achieve a better credit rating. But even if you have a low score now, simple steps can improve your rating and put you in a better credit category. Think of the benefits of a good credit rating -- better interest rates on loans, easy approvals and a sense of accomplishment. Don't Apply for Credit Accounts The less inquiries you have on your credit file, the better. Credit checks are part of the application process, and each time you complete a credit or loan application, you can expect the lender to...

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Effect of a Credit Inquiry on Creditworthiness

Traditionally, lenders have used a variety of different factors in determining your creditworthiness when you apply for an extension of credit. Lenders check your credit report to get an insight into your character from a borrowing perspective. You may have problems obtaining credit if you have a poor score but ironically, a lender can actually hurt your credit score simply by checking it. Score Equifax, Experian and TransUnion all compile consumer credit reports in the United States and each firm has its own credit-scoring formula. Nevertheless,...

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How to Repair Bad Credit With a Checking Account

A low credit score may cause you to pay more money in interest and cause a denial for certain things, like a vehicle or house. Fortunately, you can reestablish your credit and increase your credit score by making timely payments and obtaining long-term credit accounts. A checking account, if used properly, can also help repair your bad credit depending on which merchants you choose to work with. Unfortunately, the checking account itself will not...

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Does Making Late Payments a Couple of Times Affect Your Credit Rating?

Your credit rating can, and probably does, vary among the different credit bureaus. This is due to some lenders reporting the timeliness of your transactions to only one or two credit bureaus while other creditors report to all three major credit bureaus. The three major credit bureaus are Experian, TransUnion and Equifax, and they use a new credit rating system called VantageScore. Several factors determine whether late payments affect your credit...

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How to Get a Loan With Bad Credit and Without a Checking or Credit Account

There are several reasons you may need a loan. A medical emergency, unexpected bill, or car trouble are common ones on the list. If you have bad credit, getting a loan can be more difficult, but you can get a loan even without a checking account. If you have collateral or a job, it may be possible to get a quick loan for those emergencies. If the loan is for something specific, such as a car, your proof of employment may suffice. In some cases, you...

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How to Use a Personal Statement to Protect Credit

The Fair Credit Reporting Act lets you protect your credit rating by disputing incorrect entries on your TransUnion, Equifax and Experian credit files. The Federal Trade Commission explains that the agencies have to verify their information with the providers and erase it if this is not possible. Sometimes a lender or other provider will produce verification even if you do not agree with it. You can add personal statements to your credit files to tell your side of the story when this happens. Instructions 1 Review your credit reports to...

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How to Clean Up & Improve Your Credit Score

Cleaning up and improving your credit score can put you on the path to A+ credit, which means lower interest rates on loans and easy loan approvals. Acquiring good credit is a major accomplishment. But like most things in life, keeping a high credit score is an ongoing job. While it takes effort to maintain a high rating, the rewards of a prime rating are well worth the effort. Instructions 1 Monitor your personal report. Get a credit report annually to keep wrong information off your report. Dispute errors to help increase your credit score....

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What Are Consumer Credit Reports?

A consumer credit report is a document that is generated by the credit bureaus and outlines your credit history. This document keeps track of much of your financial information, and it is consulted by any lenders who wish to make a lending decision about you. The information in this document can significantly affect your financial life. Where Reports Come From While several credit bureaus exist, the three major credit bureaus are the most prominent players in the credit reporting industry. TransUnion, Experian and Equifax are the three...

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Will Paying Off Credit Card Debt Help My Credit Score?

If you are planning to apply for a loan or a new credit card soon, lowering your credit score first can help you get a better interest rate. Paying off credit card debt is one of the best ways to help your credit score increase rapidly. Effects The main effect of paying off credit card debt is that it decreases you utilization ratio, or the percent of available credit you are using. Because the utilization ratio makes up 30 percent of your...

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What a High Credit Score Can Do for You

A credit score is a three-digit numerical measure of an individual's creditworthiness. TransUnion, Experian and Equifax -- the three major credit bureaus -- use the FICO algorithm, which takes into account a consumer's credit report information including payment history, debt owed, length of credit and types of credit, to calculate these scores. Credit scores range from 300 to 850, with scores above 640 considered good and ratings above 720 considered excellent. You can gain many advantages by having a high credit score. Interest Rates ...

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Does Being Sued Affect Your Credit Score?

A lawsuit provides a civil method by which a business or individual can seek justice for a real or supposed wrong. The court then determines liability for the incident in question and, if the plaintiff wins the case, awards him a monetary judgment. While the act of being sued does not in itself affect your credit score, losing a lawsuit does. How It Works A judgment the court levies against you becomes a part of your county's public record....

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Does Opening a Joint Bank Account Merge Credit Scores?

The good news for your credit score is that joint bank accounts do not require you to merge credit reports with the co-owner, but a joint bank account can still affect your credit score. Thus, you should only open a joint account when you have complete faith in a person to use it wisely, such as when you have a blood relation to the co-owner. Identification The credit reporting bureaus never merge credit reports, so opening a joint bank account cannot merge the reports of any consumers. The bureaus report accounts on multiple credit reports...

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Does Getting on Someone Else's Credit Help Your Credit Score?

Your chances for improving your credit score by getting your name added to a friend or family member's credit card account are limited. Some creditors and lenders don't use such accounts to gauge financial responsibility, and a dispute with your credit benefactor could hamper your efforts to build credit altogether. Authorized User The credit card industry refers to someone who can legally use another person's credit card as an authorized user. In such cases, cardholders have their card issuers add another person's name to their account...

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How to Increase Your Credit Score by Reporting Payments to the Credit Bureau

It is very important to improve and maintain a good credit rating. You can do this by making sure all your payments are being recorded on your report. Your credit report might not contain all your credit accounts or payment records. Some creditors don't provide information to credit reporting agencies. Sometimes current accounts with good payment records are not being reported. This can be frustrating, especially when you are trying to build credit. However, you can ask your creditor to add your missing payment history to your credit report. Your...

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Why Doesn't the Date of Last Activity Show on My Credit Report?

Credit reports are largely known for important items such as payment histories, inquiries and public records. However, your credit report contains some other information that can be critical to your financial future. One such item is the date of your last activity. What's Included On Your Credit Report Your credit report shows all of the credit accounts you have, which includes the payment history of each account. Also included is the date you opened the account, the high balance on your cards, how many times you've been late and the last...

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Does Applying for a Loan Hurt Your Credit?

Each time you apply for a loan, those banks and lenders make an inquiry into your credit report to determine your credit score and how responsible you've been with financial management. They use this information to determine whether to extend credit and approve the loan. Too many loan applications can have a negative impact on scores, depending on a variety of factors. Existing creditors may make inquiries to ensure that their customers are generally keeping up with loan payments, although those have no impact on credit scores. Applying for...

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Is Your Debt-to-Income Ratio on Your Credit Report?

Your credit report is a record of your borrowing and repayment activity from the last seven years. It includes a lot of your financial data, but not your income. You can calculate your debt-to-income ratio by adding up all of your monthly bills and dividing them by your monthly income. What's On Your Credit Report Your credit report contains personal identifying information such as your name, date of birth, Social Security number, current...

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Who Puts Negative Comments in a Credit Report?

The credit agencies and your lenders work behind the scenes to keep the most accurate and up-to-date tabs on your financial habits for your credit report. However, you might cause some negative information to appear on your credit report. In any case, you may be able to remove certain negative items from your report. Creditors The national credit bureaus get most of their information from your lenders. If you miss a payment, your creditor can report it to the bureaus, but does not have to. Sometimes, creditors give you a break and do not...

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How Soon After You Clear Your Credit Card Is Your Credit Score Increased?

Clearing your credit card debt is one of the fastest and surest ways to boost your credit score. Wiping out credit card debt and how soon those accounts reflect on your credit report have some bottlenecks, such as the lender and the credit reporting bureau. You may need to wait a few months to use your new and improved score to apply for credit. Identification The credit reporting bureaus usually take about a month to update a credit file....

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How to Help Raise My Credit Score

On average, a person with a poor credit score will end up paying hundreds of thousands of dollars more over the course of their lifetime than a person with a good credit score. This is due to the fact that your credit score determines how much you'll end up paying for mortgages, credit cards, consumer loans, insurance and a myriad of other items. Typically, a good credit score is a score over 700; a poor credit score is a score under 619; and an average score is everything in between. To raise your credit score to a higher level, you should pay...

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An Explanation for Lowered Credit Scores From the Past Few Years

Your credit score gives potential creditors a quick impression of how likely you are to pay your loan back on time. During poor economic times, many people may have lower credit scores because of loss of income and other financial crises. Always contact your creditors to make payment arrangements if you cannot pay your bills on time and use credit wisely to keep your credit score healthy regardless of economic conditions. Lower Income FICO bases your credit score in part on your debt-to-income ratio: how much debt you have in comparison...

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How to Improve a FICO Score With Credit Cards

Credit is important. Without it, you couldn't get an auto or mortgage loan. In addition to establishing credit, it's also vital for consumers to maintain a good FICO score. Nowadays, many entities, such as insurance companies and employers, check an applicant's credit score. Those with a high FICO score receive prime consideration. Fortunately, there are ways to improve a low score. And in many cases, a credit card can help boost a low score. Instructions 1 Apply for at least two credit cards. Having one credit account isn't enough to improve...

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Steps to Establish Credit

Taking steps to establish credit should start early in your life if you intend to buy a house or a car. You need to have a stellar credit rating to get those loans for the big things you want after graduating from college. However, establishing credit doesn't end there. It should be a lifelong endeavor in case you need credit late in life. Maintain Savings and Checking Accounts An early way to establish a good credit score is to open and...

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What Are Landlords Looking for in My Credit Report?

Before renting an apartment, house or other residence, a landlord will ask you for permission to access your credit report. This report contains a wealth of personal, legal and financial information about you compiled by the three credit bureau agencies Experian, TransUnion and Equifax. A prospective landlord then uses this information to decide whether you will be a reliable tenant. Payment History Landlords want to know if you pay your...

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How Getting Another Credit Card Would Affect My Credit

While obtaining a new credit card is sometimes a good thing for your credit score, it might wreck it. Ultimately, how you use your credit card determines whether it is a help or hindrance to your credit. Pay your credit card on time and use it sparsely and it will probably positively affect your credit. Credit Inquiry Whether or not you receive approval for the new credit card, the inquiry into your credit will harm your score. Whenever a creditor runs a check because of an application you put in, it always dings your score a few points....

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How to Get a Bankruptcy Off Your Credit Report After 10 Years

Your credit reports are the main ways a lender determines whether or not to grant you a loan or issue you a credit card. Some potential employers even use a credit report when considering whether or not to give you a job. Credit reports list everything from your contact information to employment information to information on your credit accounts. Credit reports also show if you have tax liens and bankruptcies in your financial history. The federal Fair Credit Reporting Act says that discharged bankruptcies can stay on your credit report for...

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