What Is a Good Credit Score Number?

Your credit score number is a reflection of how wisely you've managed your credit over the past seven years. Making your credit card payments on time and not charging the maximum limit on your cards can help raise your credit score. Significance Having a good credit score number will allow you to receive lower interest rates on lending products such as car loans and mortgages. Employers may also check your credit report before extending an...

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What Does Transfer Sold Mean on a Credit Report?

Each account that appears on your credit report does so within a trade line. The trade line contains all of the information the creditor reported to the credit bureaus about your account and includes the amount you owe, the creditor's contact information and the current status of the account. Trade lines on your report that list a status of "transferred" or "sold" are no longer owned by the account's original creditor. Account Status A creditor reports an account as "transferred, sold" when it sells the account balance to a third party....

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What is the Credit Score After Negative Items Are Removed?

Events such as bankruptcies, car repossessions and charged-off credit cards have a negative impact on your credit score. When these items are removed from your credit report, it can cause your credit score to rise. However, many factors have an impact on your credit score and no two people's credit reports are exactly the same. Therefore, you cannot accurately predict how the removal of a negative item will impact your score. Negative Events In terms of credit reporting, a negative credit event can hurt your credit score in two ways. Firstly,...

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Does My Parents' Credit Affect Me?

You may not realize it, but your parents may have damaged -- or helped -- your credit rating. How your parents handle credit does not automatically pass on to you, but many parents attach their children's names to parental accounts that affect your credit rating. If you want to build credit on your own, you can probably acquire accounts by yourself. Identification The credit bureaus never merge credit reports. Your parents' credit can only affect you when they add your name to an account. Becoming an authorized or joint holder builds your...

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Where to Find Your Credit Score for Free

Your credit score is a three-digit rating that helps lenders, credit-card issuers and others determine if your creditworthiness. It is calculated based on your payment history, how much you have borrowed, the types of credit you have had and the average age of your credit-card accounts. While you can get a credit report for free from credit bureaus once annually, you typically must pay for an official credit report. Several websites offer some level of access to your credit score. Credit Karma Credit Karma gives you daily access to your...

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How to Remove Negative Marks From Credit

You have limited options for removing negative information from your credit report. You can have the information removed if it is inaccurate or outdated. Credit repair firms may insist that there are other options, but the Federal Trade Commission or FTC says that just isn't so. The FTC says credit repair agencies use misleading advertising when they say that late payments, foreclosures, bankruptcies and other information can be removed. Only the passage of time can cause accurate, negative information to be removed from your report, the FTC says....

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How Come My Credit Scores Are All Different?

Credit scores have been used in the United States since 1956, when engineer Bill Fair and mathematician Earl Isaac created a formula to determine whether a person was a good credit risk, according to Alexis Leondis of the Bloomberg financial website. These scores are now widely used by banks, finance companies, insurers and other companies to make important decisions about your credit worthiness when you seek loans or insurance policies. There are several different versions. Definition Your credit score is a three-digit number that tells...

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Can I Report My Own Good Credit?

Instead of depending on lenders to report your good payment habits, you can report your own good credit -- with a catch. The only credit agencies likely to accept your self-reported payments are far less known and respected than the national credit bureaus. Thus, reporting your own payments is of questionable value. Identification You can report your own good credit, but usually only to an alternative agency. Unlike the national credit bureaus -- Equifax, Experian and TransUnion -- alternative agencies accept almost anything they can verify,...

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Do Rental Lease Agreements Drop Your Credit Score?

Owning a home isn't for everyone. Unlike homeowners, renters are not liable for property taxes and insurance, and maintaining the property's condition is often the sole responsibility of the landlord. Renters, however, must sign a lease agreement with a landlord prior to moving into the rental property. A renter's failure to adhere to his lease can have a negative impact on his credit score. Lease Agreements A lease agreement spells out the terms of the renter's contract with the landlord, including such items as how long the renter agrees...

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How to Build Credit When You Are 17

Credit is one of the most important foundations of any individual's personal financial planning. A line of credit allows you lots of leverage to purchase items and make investment choices such as taking out a mortgage to purchase a home. Building up a superior credit history should ideally start as early as possible. Even if you are very young, you can still build up a good credit history that will allow you the freedom to achieve your long-term financial goals. Instructions 1 Find a part-time job and hold it for at least a year. A part-time...

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Does Refinancing Hurt Your Credit Score for a Mortgage?

Individuals with mortgages will often choose to replace their mortgage with a new, more favorable one. This process, called refinancing, can be motivated by many things: an improvement in interest rates, a change in the mortgage holder's financial situation or a desire to change the loan's repayment terms. So long as the size of your new mortgage is similar in size to that of the old mortgage, refinancing should not harm your credit score. Amount of Debt One of the chief factors that goes into the calculation of a person's credit score...

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Effect of Balance Transfers on Credit History

Your credit history is quite comprehensive. Three national credit bureaus called TransUnion, Experian and Equifax maintain databases with information on your credit-related activities, including credit card use. Various actions, such as purchases, payments and even balance transfers, affect your credit history and the way in which lenders view you. Definition A balance transfer is an action in which you move the amount you owe from one credit card account to another. You can transfer the entire amount or just part of it, according to the...

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Code of Conduct for Credit Rating Agencies

In September 2003, the International Organization of Securities Commission established a code of conduct for credit rating agencies. The overall goal for the code of conduct is the oversight of investor and public protection and transparency and fairness in business practices. Integrity The code of conduct provides for specific integrity standards. A few of these include detailed written procedures, efficient internal records, a consistent...

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Do Financial Inquiries Lower Your Credit Score?

In some cases, the mere act of having a creditor check your credit score can result in your score dropping a few points. This is because the credit reporting bureaus responsible for maintaining credit reports will interpret this inquiry as a sign that you are considering taking out another loan, suggesting you may be less creditworthy. However, only certain types of inquiries hurt your score. Credit Report Whenever a creditor inquiries about your credit history to a credit reporting bureau, this inquiry is listed on your credit report....

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Where to Get Free Credit Score Information

Under the Free Credit Reporting Act, American consumers are entitled to one free credit score report from the three major credit reporting companies per year. Other companies may offer free credit score reports, but usually with conditions. Ordering the Report Equifax, TransUnion and Experian --- the three major credit score reporting companies --- have jointly established a toll-free number, a mailing address and a website for consumers...

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What Items Are Considered on an Overall Credit Score?

Having a good credit score is important because it has a direct impact on whether or not an individual will get approved by lenders for mortgages, car loans and other credit. In addition, having a low credit score can lead to significantly higher interest rates. Understanding the different items that are considered on an overall credit score is an important part of being financially responsible. Payment History Payment history accounts for...

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How Derogatory Items Affect Your Credit Score

Your credit score serves as an assessment of your credit history to help creditors and lenders reduce their financial risks when lending to you. Derogatory entries on your credit report, such as a bankruptcy or collection account, lower your credit score and lead to lenders charging you higher interest rates on money you borrow -- if they agree to do business with you at all. Derogatory entries influence your credit score differently depending on a variety of factors. Initial Impact An identical negative report will damage different consumers'...

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What Are the Three Major Credit Reporting Companies?

Three companies---Equifax, Experian and TransUnion---control the credit file that most lenders see when you apply for a loan. However, they do not necessarily control your credit score. Another company, the Fair Isaac Corporation, has a proprietary formula that the major bureaus use when you purchase your score from them. The bureaus themselves, however, are mostly the same with subtle differences. History Equifax has the longest history of any of the bureaus. Cator and Guy Woolford started Retail Credit Company to collect payment history...

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Debt-to-Income Ratio and Credit Scores

Consumers with a high debt-to-income (DTI) ratio can breath a sigh of relief -- credit scores do not factor in their DTI ratio. However, a high DTI also means you might not qualify for any loan. The DTI may be as important as a credit score in determining credit approval and often is the decisive figure on a credit application. Relationship DTI does not affect credit score calculations because income is not reported to credit reporting bureaus, and those bureaus cannot confirm a consumer's income. DTI and credit scores usually have a direct...

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Tricks to Raise My Credit Score

A low credit score can cost you both time and money. If you have poor credit, you will have more trouble getting a mortgage or auto loan. You will have to pay a higher interest rate on a loan than people with high scores. But your credit score changes as new information updates your credit history. Find out how to raise your credit score by managing your use of credit and improving your credit history. Pay Bills on Time Your credit score...

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What Is a Poor Credit Score Range?

If you have an excellent credit score, you might be able to get a loan to buy an entire store in New York City. But with a poor credit score, you might not get any credit at all. Credit scores range from 300 to 850. If your score is in the poor range, now is the time to improve it. Otherwise lenders will offer you only the most expensive loans, if they offer you any loans at all. Identification The term FICO refers to Fair Isaac and Corp.,...

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How to Block Credit Information

You have the right to restrict third parties from gaining access to your consumer report. The law permits you to block all or a list of specifically named third parties from viewing your credit report at any time and for any period of time. Placing a block on your credit report also can be reversed at any time. Before blocking credit information, consider the timing and understand that a block -- or security freeze as it is also known -- can seriously delay credit and loan applications. Instructions 1 Contact each of the three consumer reporting...

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What Is R3 on a Credit Report?

A credit report---a record of how you have handled your financial responsibilities---contain numerous codes to denote account activity. The reader of a credit report must understand what the codes stand for to be able to correctly interpret the credit report. Why Use Codes? A credit report contains so much information on each account that codes are necessary to keep the length of the credit report reasonable. Common information including...

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Will My Husband's Short Sale Affect My Credit?

Sometimes, one spouse sacrifices his credit history so the other spouse can save hers. However, because spouses often join their accounts, a major delinquency like a short sale can affect the reports of both spouses. The effect of a short-sale on your husband's credit report depends on where you live and how you set up the mortgage. Identification Your husband's short sale will not affect your credit rating as long as you did not co-sign on the mortgage. If you co-signed the mortgage, the lender reports a delinquency on both of your reports....

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How Quickly Does a Credit Score Increase After Full Payment of Credit Card Debt?

Your credit score reflects your creditworthiness at a particular point in time; it tells lenders how much risk they would be taking by lending you money. You can expect your credit score to increase within 30 days of paying off your credit card debt. Paying down a significant chunk of your credit card debt can also raise your score within a month. Time Frame Typically, creditors update consumer accounts with new information on a monthly basis....

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How Can You Protect Yourself From Identity Theft?

Introduction Identity theft occurs anytime someone else uses your information, without your permission, to commit any type of crime. The most common forms of identity theft involve using social security numbers and personal information to open up credit accounts in your name. Identity theft can have a real impact on your financial life, leaving a ruined credit report and loads of debt that you never accrued. However, taking a few simple steps...

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State Laws on Identity Theft

Though the specifics are different, all 50 states have some type of identity-theft legislation in place. The National Conference of State Legislatures reported in 2010 that 11 states have created programs to help the victims of identity theft. The District of Colombia, Guam, and 29 states have specific laws requiring the perpetrators of identity theft to make restitution to their victims. Alabama: Making Crime Pay Anyone convicted of identity...

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How Many Points Does a Collection Account Lower Your Credit Score?

Having an account sent to a collection agency is a major hit in terms of your everyday money management and your confidence in your financial health. Where a collections account hits the hardest, though, is on your credit report. Having an account placed in collection status can cripple your credit score by itself, both now and in the long-term future. Collections Accounts If you fail to make a payment to one of your creditors by the due date, you'll be subject to calls from the creditor as well as a late fee. If you fail to make your payment...

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How Long Does It Take for a FICO Score to Rise?

Fair Isaac Corportion (FICO) provides credit scores to the consumer reporting agencies that provide credit reports. Most credit score improvements require at least 30 days to take effect, states Bankrate. There are some ways, including rapid rescoring, that can help scores within days. For the most part, though, a high FICO score requires months or years of positive credit history. Balances Paying down a substantial amount of credit card...

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How to Delete Outdated Credit Information

According the Fair Credit Reporting Act (FCRA), negative information on your credit report, such as collections and charge-offs, can be reported only for a certain number of years. After the allotted time frame has passed, the credit-reporting bureaus have to remove the information from your report. Despite the FCRA rule, sometimes you have to be proactive in getting the bureaus to delete the information. If you remain passive, your information will stay outdated, which can hurt your chances of getting future credit. Instructions 1 Pull...

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What Company Can Raise My Credit Score?

There is one person who can raise your credit score, and that person is you. You may hear companies promising in radio or TV commercials that they can boost your credit scores, but don't believe their hype. Only by changing your own spending and money-managing habits can you raise your credit scores. Put Your Credit Report Under a Microscope Put your credit report under a microscope. Lenders generally consider anything over 720 a good...

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Credit Score Guidelines

One of the most important factors in whether a lender will approve your application for a loan is your credit score. Knowing how your score is calculated can help you maximize your chances of being approved for loans or having access to other types of credit. The Facts Credit bureaus calculate your credit score using information found in your credit report, such as your credit history, the types of credit you have and how much you owe. Misconceptions Even though personal and employment information is included in your credit report,...

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How to Fight Unfair Credit Reports

Every consumer benefits from a good credit score, however, it's a misconception that individuals who have a negative mark on their credit report are irresponsible consumers. If there is a glitch in a creditor's system and a payment isn't reported on time, your credit score can plummet. If a consumer is involved in an automobile accident and the insurance company delays payment to the hospital or doctor, the same thing can occur. In such cases the...

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How Long Do Satisfactory Student Loans Stay on a Credit Report?

When you receive a student loan to fund your education, evidence of the loan and its payment history will appear on your credit report. Once the loan is paid off, however, the credit bureaus will eventually remove it. Time Frame A student loan, whether it has been paid off satisfactorily or whether you have defaulted on the loan, will appear on your credit report for 10 years. Facts If your student loan is considered satisfactory but...

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Is It OK to Run a Free Credit Report?

Your credit report is one of the major factors in helping lenders determine whether to offer you credit. The Fair Credit Reporting Act gives you the right to view a copy of your credit report from each of the three major credit bureaus once per year. You are not charged or penalized for these annual credit reports. Get Free Reports The federal government only authorizes one website to provide you with a free credit report from Experian, Equifax and TransUnion each year. Visit the Annual Credit Report website and fill in your identifying...

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Does Paying Bad Debt on Your Credit File Help It?

Reporting When you stop paying a debt and it becomes delinquent by at least six months, the creditor may decide to charge it off. If this is done, it becomes a bad debt and will be reported on your credit report with the three major credit bureaus. Anyone who reviews your credit report will be able to see the date and amount of the bad debt and the fact that it was not paid. This will hurt your credit report and bring down your credit score....

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How to Dispute an Item From a Collection Agency

It is important to check all three of your credit reports every year for inaccuracies. Not only could this alert you to potential identity theft and fraud, but errors on your credit report can hurt your credit score. Common errors include inaccurate balance information, accounts marked delinquent that were paid and old credit listings that were not removed from your report. If you find errors, take steps to correct them right away. Instructions 1 View your credit reports. You are entitled to one free credit report from each agency every...

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Does a Bank Levy Affect Your Credit?

Through a bank levy, a creditor you owe seizes payment from you by deducting it directly from your checking or savings account. Creditors can levy your accounts repeatedly until they successfully recover the entire balance you owe. A bank levy does not have a direct impact on your credit scores. The financial events connected to the levy, however, can leave your good credit in shambles. Court Judgment With the exception of the United States government, all creditors must sue debtors and obtain legal permission from a judge before levying...

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Does Forfeiting a Contract for Deed on Property Effect Credit Rating?

Contract for deed sale agreements offer an opportunity for a buyer and seller to skip the lending approval process and deal directly with each other. Unfortunately, when the buyer is unable to make payments on the contract, he not only forfeits the home but the payments he made as well; whether or not the forfeiture will affect credit depends on whether the seller reported the payments to the credit bureaus. Contract for Deed and Credit History...

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How to Make Payments for a Summary Judgment in New Jersey

When a civil suit in New Jersey results in a summary judgment for money, the losing party -- the defendant must pay the amount awarded to the winner, i.e. the plaintiff. Since judgments and payment thereof are public records that are reported to the credit bureaus, they can have a lasting effect on your credit record. In the state of New Jersey, the defendant is normally expected to pay the plaintiff or her attorney directly. The plaintiff is...

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