How to Erase Negative Credit Reports

Every credit report has a credit score associated with the report. The credit score relates to how well you have handled your previous credit. Negative entries lower your credit score and damage your ability to obtain future credit. Credit reports should be reviewed once a year to check for any errors in reporting. Negative entries that are incorrectly reported can be disputed with the three credit bureaus: TransUnion, Equifax and Experian. Instructions...

Read More

Does a Credit Limit Increase Help My Credit?

Your credit limit is the maximum amount you can spend on your credit card at any given point in time. Once you have reached your limit, you have to pay down your balance before you can use the card again. When your credit limit is increased, this can help your credit score, but only if you don't actually use the extra credit. Credit Utilization The main way that increasing your credit limit can help your credit score is through your credit utilization. This ratio compares the balance on each credit card to the card's limit, in addition...

Read More

Definition of Credit Rating Agencies

Credit reporting agencies compile information regarding consumer credit files, which are forwarded to the agencies by a number of lenders. The credit reporting agencies will forward this information to those same lenders for the purpose of determining credit worthiness. There are others who use information from credit reporting agencies as well. Lists Credit reporting agencies sell lists to companies that send out pre-approved credit and insurance offers to consumers. Update Information from individual consumer credit files is...

Read More

When Do Credit Cards Update Information on Your Credit Report?

Your credit report contains information your creditors pass along to the credit bureaus that manage your credit report files. Your credit score can change whenever your creditor sends a new piece of information, such as a payment received or a change in your account balance. These changes occur at different times for different accounts. Time Frame In most cases, each credit card company updates information on your credit report monthly. Companies do not all report on the same day of the month, so you need to call your credit card company...

Read More

Does Your Credit Rating Go Down If You Are Late on Paying a Utility Bill?

Credit reports and credit scores are often ordered and viewed by potential lenders during the process of evaluating you for a loan. The information that creditors report to credit bureaus affects your credit score. You should be aware of which creditors you have that report to credit bureaus and how late payments can affect your credit score. Credit Reports Credit reports are maintained by three major credit bureaus: TransUnion, Equifax and Experian. Creditors report information to the credit bureaus of which they are members. A creditor...

Read More

What Is the Difference Between a FICO Score and Credit Report?

Your credit report and FICO Score are used by a multitude of people. From potential creditors to perspective employers; many people require a credit check before conducting business with you. For this reason, it is important to ensure that the information featured on your credit report is accurate and up to date. Basic Differences While both your credit report and your FICO Score are used to determine your credit-worthiness, they are very...

Read More

Should I Hire a Company to Improve My Credit Score?

You might have seen an ad tempting you with a promise to clear your credit report in return for a few hundred or thousand dollars -- but this is almost always a scam. At the very least, they are overcharging you for a service you are often better off doing yourself. However, these companies are not always out to get you and might offer help you legitimately need. Disadvantages The Federal Trade Commission, the agency tasked with acting as a consumer watchdog for U.S. citizens, warns consumers that many credit repair companies are scams....

Read More

Does Co-Signing Build Credit?

A co-signer on a loan or credit account is someone who agrees to be held jointly responsible for repaying the debt. Co-signing can be dangerous because you are legally liable to repay the debt. However, it can also help you build credit if the primary borrower manages the account well. Co-Signing Basics The lender reports all of the account information, including the payment history, on both the primary borrower and the co-signer's credit report. Usually, the co-signer has a good credit score and signs the agreement because the lender will...

Read More

Will Debt Consolidation Hurt or Help My Credit Rating?

According to the Fair Isaac Corporation (FICO), debt consolidation does not affect your credit score, as you are not removing or adding debt, just transferring it. However, methods used to consolidate debt may affect your credit score and deter lenders. Benefits While debt consolidation does not affect your credit score directly, transferring debt to a lower interest loan may reduce debt more quickly. Lowering overall debt aids your debt-to-credit...

Read More

Steps to Achieve a Better Credit Score

Your personal credit profile determines your ability to attain credit from a bank or other lending company. Credit scores are numbers between 350 and 800. The higher your personal credit rating, the easier it is to get a line of credit or a loan. You can achieve a better credit score. This involves learning smart ways to manage credit, and implementing what you learn into your daily life. Credit vs. Debit Card A low credit rating can result from overuse of credit cards and excessive debt. What you owe to your individual creditors account...

Read More

Does Getting a Credit Card Improve Your Credit Score?

If you want to build credit and achieve a better rating, you will have to use credit. The U.S. has more credit cards than people, so they are one of the most popular ways to use credit. Simply getting a credit card does not always improve your score and could wreck it if you are not careful. Considerations Applying for any type of credit lowers your score. Each hard inquiry into your credit history dings you three to five points. If you are applying for several other types of loans, getting a credit card magnifies your risk to lenders because...

Read More

Free FICO Score Laws

A 2011 survey by the Consumer Federation of America found that people who obtained their credit score were more knowledgeable about how credit scoring works than people who did not. You can obtain a free copy of your credit report, which provides the information used to calculate a credit score, but not the score itself. Typically, you cannot obtain your FICO credit score unless you pay for it. Identification As of 2011, there are no laws that require the national credit bureaus to furnish a free FICO score. The Fair Credit Reporting...

Read More

How to Repair Credit in Canada

Having a poor credit history can be a source of stress and shame for many. It can also prevent you from living the lifestyle you want. Repairing your credit isn't impossible and there are many things you can begin doing immediately to help relieve that stress. Instructions 1 Obtain a credit report. Every Canadian is entitled to one free credit report per year. Your free credit report can be obtained (via Canada Post) from Equifax Canada and...

Read More

The Importance of Credit Rating Agencies

Credit rating agencies provide investors and debtors with important information regarding the creditworthiness of an individual, corporation, agency or even a sovereign government. The credit rating agencies help measure the quantitative and qualitative risks of these entities and allow investors to make wiser decisions by benefiting from the skills of professional risk assessment carried out by these agencies. The quantitative risk analysis carried...

Read More

Does Applying for a Loan and Not Getting It Affect Credit Score?

Your credit score plays an important role in whether or not you get a loan. You actually have scores from three major credit bureaus -- Experian, Equifax and TransUnion. They consider similar factors in calculating your scores, including recent credit inquiries. If lenders have denied your loan applications, these recent inquiries count against your scores. Improve your chances for getting a loan next time by first improving the other factors against...

Read More

Can I Remove Myself From a Credit Bureau?

When a person takes out a loan or accrues debt, this information is often added to his credit report. A credit report is a dossier compiled by credit bureaus or credit reporting agencies and includes information used to determine credit ratings. A person cannot remove his credit report from a credit bureau -- it is the bureau's property -- but he does have certain related rights. Credit Reports A credit report includes a variety of information related to a consumer's debt. The report will include all current and many past debts, as well...

Read More

What Are Open Trades on a Credit Report?

Trades or trade-lines listed on your credit report are currently active credit accounts. Your mortgage, car loan and credit card accounts all show up as trade-lines on your credit report. Credit reporting agencies base your credit score on data related to your current trade-line activity as well as records pertaining to closed accounts. Credit Reports Your creditors make monthly reports to Equifax, Experian and TransUnion that detail your recent account activity including the amount of your last payment and the balance you owe. If you miss...

Read More

What Are the Benefits of Good Credit History?

The time and effort spent to build a good credit history is worth the trouble. Any carelessness with debt management will be reflected on your credit report for lenders and employers to see for the next seven years. Having a good credit history will give you the security of knowing that you will never be turned down for a credit card or loan. The Facts Your credit history is a list that appears on your credit report. It details all of...

Read More

Who Are the Three Largest Credit Bureaus?

Credit scores are intended to indicate how much of a risk an individual is when it comes to borrowing money. Our credit score determines what credit card offers we receive, whether we're approved for bank loans and how much interest we pay on our mortgage or car note. There are three major credit bureaus, each of which uses its own formula to calculate credit scores. Equifax Equifax is the oldest and largest of the three major credit reporting...

Read More

How to Check a Person's Credit History

Your credit history is checked when you apply for credit accounts, insurance, apartments and even some jobs. When you know what's on your credit report, you know exactly what to expect when you're going in with an application of any sort. You can also fix any problems on your credit report that arise from inaccurate information or identity theft. Landlords, creditors and other authorized businesses may request a credit report for an individual. Instructions Your Own Credit 1 Use your Internet browser to go to annualcreditreport.com. 2...

Read More

How to Improve a Credit Rating With a Repair Service

Everyone is capable of improving their credit rating in the same way that repair services do--by exercising their rights under the fair Credit Reporting Act (FCRA). You may not wish to take on this task because it can be time-consuming or you may prefer to let someone with expertise handle it. A good credit repair service can remove many negative listings through filing disputes, but the Federal Trade Commission (FTC) warns that you must work with...

Read More

How to Raise My Credit Score for Free

A person's credit score is very important. A good credit score enables a person to take out a loan to buy expensive items, such as a car or a house. A credit score can even affect a person's ability to be hired for a particular job. If your credit score is not good, you might be asking yourself, "How can I raise my credit score for free?" Fortunately, you can raise your credit score. Instructions 1 Order a free copy of your credit report....

Read More

Does a Collection on My Credit Report Automatically Get Me Denied?

Lenders have various reasons for turning down credit applications. The Fair Isaac Corporation, which produces FICO credit scores, explains that high debt load, late payments, long-term delinquencies that lead to charged-off accounts, repossession and bankruptcies all play a role. Collection accounts are among the harmful items that can lead to denial when combined with other factors. Definition A collection is an unpaid account turned over to a collection agency by the original creditor. For example, a bank might charge off seriously delinquent...

Read More

How Fast Can I Raise my Credit Score?

Your credit score is that magic number that can help you purchase your dream home or that flat-screen TV. Getting your credit score a few points higher could help you score better interest rates and even improve your job prospects. Boosting your credit score can be achieved in the short-term and long-term. Credit Score Factors The timeliness of your payments, the amount of money you owe, the time span of your credit history, how much credit...

Read More

Does Requesting a Credit Report Hurt My Credit Rating?

Checking your credit report is crucial to keeping an eye on your financial standing and protecting yourself from identity theft, and doing so will make no positive or negative impact on your credit score if you're doing it through the right avenues. From buying or renting a house to getting a job to acquiring new credit, many important decisions are based on your credit score. Educating yourself about which credit report requests will and will not...

Read More

How to Improve a Poor Credit Score to Get a Home Loan

There is more to buying a house than having an acceptable credit score, but that's where many people start as they gauge their creditworthiness. Credit scores range from 300 to 850, according to Privacy Rights Clearinghouse, a nonprofit consumer information company. The agency reports that scores above 720 are excellent, with a 620 score often enough for standard mortgage approval. That doesn't mean people with lower scores are shut out of the housing market. In 2010, home loans insured by the Federal Housing Administration were available to people...

Read More

How to Fix Your Credit After Two 30 Day Late Payments

Paying on time matters to creditors so much that it makes up 35 percent of your credit score. Multiple late payments can hurt as bad as bankruptcy, a collection, judgment, or repossession if it goes unpaid too long. In other words, a $45 monthly payment missed for over 30 days can matter as much as a $2,500 monthly payment simply because they are paid late. Fortunately, there are ways to minimize and repair the damage before it's too late. Instructions...

Read More

Does It Hurt My Credit Score to Close an Account if I Carry a Balance?

Consumers have plenty of good reasons to close credit card accounts, including annual fees, increases in interest rates and trimming down on the number of cards to carry. In addition to thinking about these factors, you should also weigh the impact that closing a credit card can have on your credit score. Especially if the card has a balance, the move could seriously impact your score. Credit Utilization Basics The main way that closing an account with a balance affects your score is through credit utilization. Your utilization is the ratio...

Read More

How Can I Get My Official FICO Score?

The credit scores used by creditors are developed and offered by the Fair Issac and Company website. The FICO website is where you get the official FICO credit score. You also get a copy of your credit report with the score so that you can see the factors affecting your number. Instructions 1 Go to MyFICO.com. 2 Click "FICO Scores and Credit Report." 3 Click "Buy Now" under the "FICO Standard" section. This purchase gives you your official FICO score from TransUnion or Equifax. 4 Check the credit reporting agency whose...

Read More

How to Repair a Credit Score Quickly

When you are getting ready to apply for a loan or credit card, improving your credit score can help you qualify for a lower interest rate. This can go on to save you hundreds or even thousands of dollars in interest as you repay your debt. Although much of your credit history is based on long-term habits, there are a few things you can do to quickly repair your credit. Even with the fastest methods, however, it could take up to 60 days to see results. Instructions 1 Order copies of all of your credit reports. If at least one year has passed...

Read More

Steps to a 720 Credit Score

Your credit score will determine whether you will be approved for a mortgage loan, an education loan, car loan or many other forms of credit. If you are approved, the lower your credit score, the higher the rate you will pay to borrow that money. To reduce the percentage rate you are charged and increase your chances of approval, take steps to improve your credit rating. Pay Bills on Time For the active loans and line of credit that you have,...

Read More

How to Repair Credit History Report

Your credit report is a prominent factor in a creditor's decision to approve or deny a loan or credit card. The report is a history of your credit activity and your credit rating is based on the report. It is possible to improve a credit report containing negative entries. It may take up to a year of responsible behavior to see positive results. Instructions 1 Obtain a free credit report. The three credit reporting agencies, Equifax, TransUnion and Experian, must provide you with a free report once a year. You can obtain all three from AnnualCreditReport.com....

Read More

What Do Credit Scores Impact?

A credit score impacts every area of your financial life. The three-digit number ranging from 300 to 850 points reveals to creditors, insurance and finance companies how well you manage your money. Credit scores reflect information found in your credit report, such as your payment history and debt amount. Because a credit score impacts your ability to get additional credit, qualify for a loan or insurance and determines what interest rates you pay, the Federal Trade Commission suggests you learn your score. Credit Cards Your credit score...

Read More

The Removal of a Collection Agency From a Credit Score

If you receive your credit report and spot an account erroneously listed in collections, you have the right to have it corrected or removed. Accounts in collection should automatically disappear from a person's credit report after seven years, but if you want it removed before then, you will need a good argument along with proof that the inclusion of the collection agency is not justified. Having a collection agency removed from your credit report...

Read More

How to Get a TransUnion Credit Report by Mail

Everyone is entitled to a free annual credit report from each of the credit reporting bureaus. Usually, you can access them online, but sometimes you'll have to write the company with additional information. This is how to get a TransUnion credit report by mail. Instructions 1 Write a request to TransUnion to get your credit report by mail. There are times that you can get your credit report over the telephone or the internet. The address...

Read More

How Much Will a Credit Score Rise With a Paid-Off Credit Card?

How you use your credit card -- and the payments you make on it -- help determine your credit score. While paying off any credit card debt you incur is admirable, the amount that doing so impacts your credit score will vary. In certain situations, paying off your credit card may even prove detrimental to your credit rating. Scoring System You have more than one credit score. Not only do you have a separate credit score with each credit bureau, lenders use different credit scoring models when determining your ability to repay new credit...

Read More

Credit Rating Calculation

Your credit score is a three-digit number that has a significant affect on your ability to get credit cards, car loans and mortgages. Knowing what factors go into your credit score will help you manage your finances to maximize your score. The scores are calculated by the three major credit bureaus: Experian, Equifax and TransUnion. Factors The most common credit scoring algorithm is designed by the Fair Isaac Corporation, also known as the FICO score. When credit bureaus calculate your credit score, they take into consideration your payment...

Read More