How to Erase Unpaid Accounts From My Credit

A good credit score means getting the best interest rates on home loans and auto loans. Negative collection and charge off accounts that appear in a credit report can damage scores for years. Those with credit scores under 600 end up paying higher interest and being denied low-interest credit cards. However, unpaid accounts may not be yours or could be from an ex-spouse. Knowing exactly what is in your credit report is key to removing inaccurate and old accounts. Instructions 1 Order your free annual credit report online from all three credit...

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How to Delete Negatives From My Credit Report

Your credit report contains information about how you have handled your debt payments in the past, such as your credit cards, mortgages, car loans and student loans. Having a good credit report is important because the credit bureaus calculate your credit score using the information in your credit report. Negative information such as late payments or defaults will lower your credit score. If the information in your credit report is correct, you cannot...

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How Much Will a Credit Score Increase With Paid Collections?

Paying collections is one of the toughest choices to make for a person's credit history, because it may not improve a credit score but likely improves the creditworthiness of the borrower. More important than the impact on a credit score is how future lenders look at paid collections. Also, avoid settling, because this just puts a further drain on a credit history. Identification A fully paid collections account has a minimal impact on a credit score, because the important thing is that the borrower broke the terms of the agreement in the...

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After Seven Years of Filing Chapter 13, How Much Will My Credit Score Go Up?

After seven years of painful waiting, a Chapter 13 bankruptcy finally leaves your credit report, but this could actually drop your score. Some people experience this anomaly because of quirks in the FICO scoring system, but fortunately even if this does happen to you, your score eventually bounces back. Most people see a boost from a Chapter 13 leaving their credit profile. Potential Drop The FICO scoring algorithm is really several formulas that rate the likelihood of a certain demographic defaulting on a loan, such as new borrowers. You...

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Can I Get an IRS Debt off of My Credit Report if It Is Older Than Ten Years?

Like all debt, IRS bills eventually become noncollectable, but not paying your tax debt could haunt you for the rest of your life and cost much more than what you owe the federal government. Most bad items eventually leave your credit report, but you can probably never wait out federal tax debt. Identification The Internal Revenue Service does not report delinquent tax debts to the credit bureaus, because it is an unnecessary step. It has a more powerful weapon: tax liens and levies. When you do not pay taxes, the IRS puts a public claim...

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How to Document an Identity Theft Crime Scene

You tried to protect yourself, but the worst has happened: Someone has stolen your identity, using your Social Security number or credit-card information to make fraudulent charges and stick you with the bill and an injured credit report. It's important to get your facts straight from the start, so try to keep a level head. Jumbled, conflicting information could lead your creditors to doubt your innocence. You need to know how to properly document...

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How to Protect Credit Rating From a Separated Husband in Pennsylvania

When you've separated from your husband, one of the last things you may be thinking of is your credit rating or score. Yet, it's important that you take steps to secure your property and credit so that if you end up getting a divorce, you don't emerge from it in a rough financial spot. You should come to an agreement with your spouse before the separation in order to make sure your credit is protected and that he will not be able to run up credit...

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FICO Scores & What They Mean

Many consumers do not have a clear idea of what FICO scores are, what they mean and how they can affect real-life circumstances. The FICO score is determined by a mathematical formula, and there is a direct correlation between your score and your ability to secure preferred loans or home mortgages. You should understand what FICO scores mean to identify ways to start making your score work to your financial advantage. Background FICO stands for the Fair Isaac Corporation credit scoring model, a software program that compiles your financial...

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How to Remove Bad Credit Fast

By taking specific steps you can fix a bad credit score fast and be on the road toward a good rating. Higher credit ratings are advantageous for several reasons. For starters, applicants with a good credit score often receive the best rates on car loans and mortgages. What's more, insurance companies and employers in the finance industry often review a candidate's credit score before issuing a policy or offering a position. Thus it's wise for responsible adults to maintain a good credit rating. Instructions 1 Work to keep late payments and...

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Can You Get a Free FICO Score?

Fair, Isaac and Co. is the creator of the FICO score, a widely used credit scoring model that determines a person's creditworthiness or debt risk. There are three FICO scores, one for each of the Big Three credit reporting agencies: TransUnion, Equifax and Experian. These scores are calculated, on average, from a minimum of one account that has been open or updated for at least six months. How to Get a Copy of your Credit Report (Free) One of the more popular places to go online and get a copy of your credit report with your FICO score...

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What Is a Credit Score Range?

A credit score represents the information in a credit report as a numeric value. This number is often used to determine not only whether or not a person qualifies for a particular loan, but also the interest rate for that loan. The higher the number, the better the chance of qualifying and getting a better rate. Lower numbers, of course, mean the opposite. Size A credit score can range from a low of 300 to a high of 850. Much like other number ranges, however, the minimum and maximum numbers are rare. Most credit scores will be in between...

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How Long Do Trade Lines Stay on My Credit?

Trade lines are the most common item on a credit report and the most important, because they can stay forever. A few mishaps, such as a late payment or two, will disappear from your record even when the trade line remains on your report. Since a negative trade line can stay for years, it is better to prevent defaults that dealing with the damage. Identification A trade line, often spelled "tradeline" in the credit industry, is any creditable account, such as a credit card or auto loan. Trade lines stay on your credit report for as long...

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Inaccurate Credit Ratings

Consumers can feel cheated after spending hard-earned money on credit scores only to find out that their lender has a completely different score for them, but this is normal. The United States has one dominant credit scoring system (the Fair Isaac or FICO model). Some firms, such as the national credit bureaus, sell scores that look like a FICO score. Causes Credit ratings are not "inaccurate," because they only calculate risk based on data in a consumer's credit profile. Missing or false data can cause a higher or lower than normal credit...

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How Points Affect a Credit Score for Collections

Unpaid library fines and parking tickets might not seem like a major financial issue, but they can have lasting negative impact on your credit score. When creditors don't receive payments owed, they can turn accounts over to collection agencies. These agencies purchase your debt, sometimes at a discount, assuming responsibility for the recovery of the debt. Collection agency letters and phone calls can be intrusive and stressful; they can also affect...

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How to Add a Primary Account to Your Credit Report

The Fair Credit Reporting Act (FCRA) governed by the Federal Trade Commission (FTC) does not require lenders to report to the credit bureaus. This means that there is no legal method to force a lender that you have a primary account with to add it to your credit report. In some cases, a primary account may appear on some of the credit bureaus' reports but not all of them. Check your credit report with each of the three major reporting agencies (Equifax, Experian, TransUnion ) to detect whether the account shows up on one or more of them. Instructions...

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Repo Effect on Credit Score

A repossession occurs when you default on an auto loan and the bank takes possession of the car. According to Financial Web, it's one of the most devastating things that can happen to your credit score. Effects According to FICO, 35 percent of your FICO score reflects how well you pay your bills. A repossession indicates that you defaulted on an auto loan and as such, it will lower your score. How much it lowers your score depends upon the...

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Nebraska Security Credit Freeze Rights

A security freeze blocks access by new creditors to your credit report. You have the right to institute a security freeze on your credit report for any reason if you are a Nebraska resident, as established under state law. You must follow the procedures laid out by the major credit bureaus to place a freeze on your report. Filing Complete a security freeze form for each of the three major credit bureaus in the U.S., Transunion, Equifax and Experian. Send supporting documentation, including a copy of your state identification and proof of...

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How to Clean Up Credit History Legally

Landlords, employers and insurance companies are all checking your credit history. Consumers with less than perfect credit may be feeling the effects. Cleaning up credit imperfections won't happen overnight. However, reviewing your credit report, identifying the areas that need improvement and focusing on behavior changes will clean up credit over time. It's also important to review your credit file to safeguard against fraudulent activity. Instructions 1 Order a copy of your credit report. The first step in cleaning up credit is determining...

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The Best Ways to Monitor My Credit Score

A credit score is what lenders use to gauge how much loan or credit should be given to you. Your credit score is based on your credit report, a factual record of your entire credit payment history created by credit bureaus, updated by additional reports from lenders, and shared with the rest of the industry. It’s best to monitor both your credit scores and credit report, as it also helps you spot any reporting errors or signs of identity theft. ...

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Does Paying for Insurance Build Credit?

Not all of your bills affect your credit score. The only payments that regularly appear on your credit report are those in which you borrow money and are paying it back. Because insurance is a service, not a loan, paying your insurance premiums will generally not build your credit history. Payments Not Reported In order for payments to affect your credit score, the company you are making payments to must report these to the credit reporting bureaus. Once the payment history appears on your credit report, the credit score formulas consider...

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The Most Reliable Credit Reporting Agencies

Credit reports are used for a number of instances throughout a consumer's lifetime. In addition to checking a report in order to grant new credit accounts, potential employers, utility companies and insurance companies can also access a consumer's credit file before granting service or extending an offer of employment. As of 2010, three major credit bureaus are responsible for reporting the payment history and account information of consumers. Equifax Equifax has more than 100 years of experience providing both business and consumers with...

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Does Opening New Accounts Affect Your Credit?

Opening a new account may cause a change in your credit score, depending on the type of account. In most cases, the result of opening a new account will be a lower credit score. By understanding how opening a new account will affect your credit score, you can determine if opening a new account is a good decision. Bank Accounts There will only be an impact on your credit score when you open an account that reports to the credit bureaus. For example, opening a savings or checking account will not affect your credit in most cases, as financial...

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Where to Get an Absolutely Free Credit Score

Although you are entitled to access a copy of your credit report from each of the three major credit bureaus once annually, you are not entitled to a free credit score. The majority of places on the Internet offering a free credit score require you to provide information and enroll in a free trial of a program that becomes an annual subscription if you do not cancel in a set period of time. However, there are several places on the Internet where it is possible to obtain a completely free copy of your credit score. Credit Karma Credit Karma...

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If You Are Late on Utility Bills, Does It Affect Your Credit Score?

Missing a utility bill payment usually triggers a late fee, but in some cases, it can have an even more significant impact by lowering your credit score. The effect of late utility bill payments on your credit score depends on whether or not the utility company reports it to the credit bureaus. Credit Report Your credit score is based on the information that appears on your credit reports. Therefore, information that is not on your credit report cannot affect your credit score. Your payment information appears on your credit report only...

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How to Create a New Credit Report

With a majority of your lager purchase relying on loans (car and home), it is important to stay up to date with your credit score. The higher your credit score, the more likely you are to be approved for a loan and the lower the interest rate is going to be. It is important to create a new credit report once or twice a year to know exactly what is going on with your score and if there are any mistakes present. Instructions 1 Navigate to a site such as "AnnualCreditReport.com" or "Equifax.com." These are two sites that provide free annual...

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Consumer Credit Problems

Signs of consumer credit problems include a bad or low FICO (an acronym based on the Fair Isaac Corporation) score, high credit card debts, bankruptcy, foreclosure and the inability to acquire credit. Being an undesirable candidate for a loan can complicate your personal finances, since you're less likely to buy a home or car without credit. Rather than live with consumer credit problems, take steps to fix a bad history. Causes There is no one cause of consumer credit problems, and often, problems arise from situations beyond a consumer's...

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What Organizations Can Report Debts to the Credit Bureau?

Credit scores can be an important part of the lives of United States consumers. The credit score contains information about payment history on accounts, the number of inquires into the report and any public records against the consumer. Lenders use the credit reports of applicants to determine whether they qualify for a financial product. Many employers also check the credit of potential employees to determine whether to hire the person. Knowing what types of accounts can report to a credit bureau can help consumers keep accurate information...

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What Are the Benefits of Using Credit Repair Companies?

The Federal Trade Commission advises consumers to avoid paying for credit repair, but this does not mean a credit repair company cannot save you time and money. While it is true you can repair your credit on your own, this is not always the best use of your time. If you do go with a credit repair company, watch out for potentially illegal practices. Identification Credit repair companies do not have any secret knowledge that lets them erase anything. The only benefit they can offer you is saving time. The typical dispute process, such as...

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What Inquiries Affect Credit Scores?

Companies use your TransUnion, Equifax and Experian credit reports and your credit score to make decisions about granting credit or letting you buy an insurance policy. You give them permission to check your records and pull your score and this activity is recorded so other firms know who has been looking at your credit bureau files. Your credit score also reflects the inquiry process. Hard Inquiries Hard inquiries are credit report views conducted by companies in response to credit or insurance applications, according to the Lendingtree...

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