My Credit Wasn’t Going To Fix Itself… I Had To Do Something…

It was then that I realized only I could take charge of my credit and get it fixed… The first thing I did was try a so-called “professional” credit repair agency, but…

Wednesday, October 31, 2007

Can a Bad Credit Report Stop You From Getting a Job?

Companies check more than your references and job history when you apply to work for them. In addition to the standard criminal background check, many employers now pull a credit report on job applicants. The credit report shows a snapshot of the candidate's level of personal responsibility. This may be a detriment to people with medical bills or the long-term unemployed whose credit has suffered. Federal Law The federal law that prohibits...

Tuesday, October 30, 2007

How Do Timely Rental Payments Affect a Credit Score?

Credit scores are generally based on information that is reported to credit bureaus. While it is rare that a landlord or property management company reports rent payment history to a credit bureau, the consequences of not paying rent on time can end up on credit and tenant screening reports. Credit Reporting In order to report accounts to credit bureaus, a creditor must be a client of the credit bureau. This is an expensive undertaking, and...

Sunday, October 28, 2007

Definition of a Subprime FICO Score

When lenders consider applications for mortgages, car loans or any form of credit, their first concern is to determine how likely it is they will get their money back. The FICO score is a number ranging from 300 to 850 (a perfect score) that summarizes the credit risk a potential borrower presents. The term "subprime" indicates a low score--low enough that there is a significant risk that the borrower won't be able to repay the debt. Identification There is no formal definition of a subprime FICO score. A FICO score is considered subprime...

How Quick Can a Creditor Change a Credit Report?

Even though creditors can update records with the credit bureaus at will, they cannot control how long it takes to change a report. One type of company, rapid re-score, can change a report within a matter of hours. However, to use a rapid re-score company requires certain conditions and going through a lender. Identification In the scoring system set up by the major credit reporting bureaus, lenders control the information the bureaus report on a borrower's credit file. Updates can happen the same day, but the credit bureaus take up to...

Saturday, October 27, 2007

How to Check a Credit Score in Canada

Checking your Canadian credit score regularly helps you monitor changes, check for errors and see where improvements can be made. You can access credit disclosure reports for free, but these do not show your credit score. The two major credit reporting bureaus in Canada, Equifax Canada and TransUnion Canada, charge a fee to check your credit score. Instructions 1 Get your credit score in Canada online. The process is simple and allows you...

Why Does Cosigning Lower Your Credit Score?

When someone with a shaky or limited credit history applies for a loan, a borrower may offer a lower rate if the person can get a cosigner. The cosigner guarantees the loan will be repaid and becomes responsible for the loan if the borrower does not repay the loan. More Debt When you cosign for a loan, the credit scoring formula treats that debt as debt that you are responsible for repaying, even though you are just the cosigner. Having a large amount of extra debt will lower your credit score. Payment History The payments made by...

Does Getting Preapproved for a Mortgage Affect Your Credit?

Just shopping for a home could damage your credit rating. Fortunately, the damage done by mortgage preapproval usually has a marginal effect on your credit score, and potentially less damaging than shopping for other loans, such as a personal loan. You should run a report on your credit well before you start looking for a mortgage, and ask the lender about the credit rating it wants for its best rates. Identification Mortgage preapproval and any application for credit lowers your credit score by five or fewer points. Although one application...

Friday, October 26, 2007

What Makes Up a FICO Score?

Your credit score is a number that represents your credit history and current credit risk. Credit scores are based on information in your credit report. They are called FICO scores because Fair Isaac Corp. developed the software that credit bureaus use to calculate them. Lenders use your credit score to decide whether they will offer you credit, how much they will lend you, and the terms and conditions of that credit, according to FICO. Scores range...

Where to Get Your National Credit Score

Two of the best ways an American consumer can obtain his national credit score is by contacting one of the three major credit-reporting agencies on the Internet or in writing. They are Equifax, Experian and TransUnion. The three major credit-reporting bureaus may produce or generate three different national credit scores primarily because the credit history at each bureau is usually different. Loan officers make decisions to extend consumers credit generally based on just one national credit score. What is a Good National Credit Score? ...

Is My Prior Work History Included on My Credit Report?

Consumer credit histories are not only important for lenders to review your financial history; they also contain your work history. Employers and lenders often use this demographic data to make informal decisions on loans and, possibly, potential jobs. Fortunately, if the credit bureaus have a false work history, or you do not want anyone to see it, you can request the bureaus remove the information from your report. Identification Your work history is included in your credit report, but not your salary. The credit bureaus ultimately get...

How to Compute a Credit Score

It may sound creepy, but you're being tracked. Somewhere, a statistician is logging down your on-time Visa payments and your missed department store card payment. They can see if you have a car loan out, a past bankruptcy filing and where you live or work. At the end of the day, they churn out a three-digit number that answers the question: Should I loan to this individual, and if so, what rate should I charge? Instructions 1 Don't miss a credit card payment. In the breakdown of your credit score number, 35 percent is based on payment history....

Wednesday, October 24, 2007

Does Merging Credit Cards Hurt Credit?

In an effort to simplify your life or take advantage of a lower interest rate, you may give into the temptation to combine your credit cards into a single account. Although this can possibly save you some money in interest, it also has the potential to negatively affect your credit score. Balance Transfer A balance transfer is a process that many credit card holders use to move their credit card balances from one card to another. With this process, you take the debt that is on one credit card and transfer it over to another credit card....

How to Calculate Credit History

A credit report is made up of four parts: identifying information, credit history, public records and inquiries. Together, these four parts determine your overall credit rating, which lenders and creditors evaluate when deciding whether or not to offer you a loan or revolving line of credit. Your credit rating is the best snapshot of your credit history. When calculating your credit history, consider your complete credit file. Instructions 1 Request your free annual credit report through the Annual Credit Report's website. Complete a short...

Sunday, October 21, 2007

How to Obtain a New Credit File

If you are just out of college or have recently become a resident in the U.S., you need to obtain a new credit file. Your credit file is used by all lenders to assess whether you are suitable for credit. Without a credit file, it will be difficult to obtain lines of credit. With a little time and patience, and by following a few guidelines, you can obtain a new credit file. Instructions 1 Get a prepaid card to obtain a new credit file. Apply...

Saturday, October 20, 2007

Do Closed Items Help My Credit Score?

A three-digit number -- your credit score -- often is the key to whether you can borrow money for a new home or car, or receive low interest on your credit cards. The three major credit bureaus, Equifax, Experian and TransUnion, rank every borrower with a credit score from 300 to 850. Higher scores are better, and lenders tend to view these borrowers as less risky and offer lower rates. If you're considering canceling accounts to raise your score, think carefully before you do. It probably won't help. How Credit Scoring Works Your credit...

Friday, October 19, 2007

Does Paying Off Credit Cards Raise the Credit Scores?

Your credit score is influenced by credit card use, your account balances, when you make your payments and your available credit lines. This information, combined with data about loans and other credit use, is used by the credit bureaus to calculate three-digit scores, according to the myFICO credit scoring information website. Your credit-related actions, including paying off accounts, affects those scores. Score Factors Various factors and financial activities carry varying weight in determining your credit score, according to the myFICO...

Wednesday, October 17, 2007

Does Applying for Student Loans Hurt Your Credit?

Applying for most types of loans and credit cards can hurt your credit score a little, because the lenders run a credit check when evaluating your application. However, only some types of student loan applications affect your credit score, because some student loan offers are not based on credit history. Credit Inquiries Applying for any type of loan, including a student loan, can hurt your credit if the application generates an inquiry on your credit report. An inquiry is a notation of each creditor who checks your credit report or credit...

Tuesday, October 16, 2007

Secrets to Raising Your FICO Score

Your FICO credit score ranges from 300 to 850 and can affect many areas of your life. Lenders usually perform a credit check before approving a loan to see if you qualify. This score may also affect the interest rate you're charged for that loan. In addition, some employers check your credit before extending a firm offer of employment. It's important to know what steps you can take to help raise your credit score. Pay Bills On Time According to MyFico, how well you pay your bills accounts for 35 percent of your FICO score. Paying credit...

Monday, October 15, 2007

How to Report Customer Credit

In the course of doing business, you may have to report a customer's delinquent account or nonpayment of a lease to the credit bureaus. There are three credit reporting agencies in the United States that list consumer credit history and compute credit scores: Equifax, TransUnion and Experian. There are a few different methods for reporting customer credit to the credit reporting agencies. Instructions 1 Hire a credit reporting service. Credit reporting services such as Equidata take business debt accounts and report the amount of the debt,...

Does a 25-Year Mortgage Help Credit?

Obtaining a 25-year mortgage not only helps fulfill your dream of owning a home, it can lead to easier access to future loans for other big-ticket items. Despite their enormous value, paying a mortgage may not boost your score as quickly as revolving loans, such as a credit card. Revolving loans tend to give a better impression of your willingness to pay back a loan. Identification Assuming you pay every bill on time, a 25-year mortgage helps most facets of the FICO credit score calculation. You will gain good credit history and reduce...

Friday, October 12, 2007

How Long Negative Credit Stays on Your Credit Report

Negative information can remain on your credit report for a long time--10 years for bankruptcies and seven years for other negative information, including foreclosures, charge-offs, collection accounts, late payments and more. Removal Negative information must remain on your credit report until it expires--unless it is found to be inaccurate. You can challenge any mistakes on your credit report by writing the nationwide credit bureaus The...

How Does a Short Sale on a House Affect Your Credit?

Falling property values mean many people are upside down on their mortgages, according to the Bankrate.com financial site. Those homeowners owe more money that their houses are actually worth. Some opt for short sales to avoid foreclosure and its devastating credit effects. Short sales hurt your credit rating, too, but not as severely as actually losing the property. Definition A short sale means selling your home for less than you owe on your mortgage loan, Bankrate.com explains. Your lender must agree to the sale and amount, and most...

How to Improve a FICO Score Quickly

FICO scores are risk-management scores created by the Fair Isaac Corporation used by banks and other lenders in making lending decisions. Your FICO score is very important because it determines what interest rate you will get on a loan, as well as whether you will be approved for a loan. If your FICO score has dropped, there are some tips to raise your FICO score as quickly as possible. Instructions 1 Obtain copies of your credit score. You...

Thursday, October 11, 2007

Does It Help My Credit If I Add My Name to the Title of a House?

Credit experts sometimes suggest consumers co-sign an account in good standing because the credit bureaus report the positive history for any name on an account. Adding your name to the title on a home gives you more assets to secure a loan, but won't boost your credit. If you wanted to use a home to improve your credit rating, you need to add your name to the mortgage. Identification Adding your name to the title on a home does not affect your credit. The credit rating bureaus only list accounts when a lender reports them. A bank would...

How to Improve Your Credit Rating and Increase Your Credit Score

Credit scores and ratings determine a plethora of things for a person. Your credit score determines whether you are eligible for renting or buying a home, for car loans, and for other credit cards and financial assistance. If your score or rating is too low you might be rejected or declined and no longer eligible for a specified amount of time, depending on the business reviewing you. By keeping your credit score and credit rating up, you will have...

How to Improve an Excellent Credit Score

For most Americans, the fate of their financial future is determined by three numbers: their credit score. The range of credit scores in the United States is from 300 to 850. A person with excellent credit will have a credit score of approximately 720 to 799. These people can secure low interest rates on things like home loans, credit cards and car loans. There are perks that people with an exceptional or perfect credit score have access to that even people with excellent scores cannot. Instructions 1 Keep the balances on your existing...

Tuesday, October 9, 2007

How Much Does a Repossession Change Your Score?

If you take out a secured loan and then do not repay the debt, the lender has the right to repossess the property that you pledged as collateral. Repossessions appear as bad debts on your credit report and have a negative impact on your credit score. However, the degree to which a repossession affects your credit score depends on your length of credit history and the way in which you manage your other accounts. Credit Bureaus In the United States, Equifax, Experian and TransUnion compile consumer credit reports. These companies all use...

Sunday, October 7, 2007

What Is a R9 on a Credit Report?

An R9 on a credit report means a particular type of account has been charged off by the lender. The terms charged off, bad debt and losses are interchangeable. The lender is reporting this account as a loss and removing it from its receivable listing because it has not been able to collect the balance. Identification On a credit report the, "R" stands for revolving. A revolving account is an account without a specific term such as 36, 48 or 60 months. Credit cards are examples of revolving accounts. Time Frame A charged-off account...

How to Obtain a Credit Report From All Three Agencies

A free credit report from all three credit reporting agencies can be requested once per year. TransUnion, Equifax and Experian are the three credit reporting agencies in the United States. These agencies compile information about credit history into a credit report that is typically accessed by financial institutions or other businesses offering credit. Instructions Request a Credit Report Online 1 Go to the website Annual Credit Report (see Resources). This website is the only site that provides a free annual credit report from all three...

Friday, October 5, 2007

How to Dispute a Credit Rating

A good credit rating is important to your financial planning. Get your credit ratings regularly from the three credit reporting bureaus: Equifax, Experian and TransUnion. You should check the reports for errors. They affect your credit rating and your ability to get a line of credit. Always dispute a credit rating if you think the information is wrong. The Fair Credit Reporting Act (FCRA) requires credit reporting bureaus and lenders to correct...