Does Being a Week Late Affect Your Credit?

Your credit score ranges from 300 to 850, according to FICO. A higher score can qualify you for better rates on loans, credit cards and other credit-based products. Your FICO score can even make the difference between an employer hiring you versus another candidate or whether an insurer will issue a policy to you or not. Credit scores are important, so it's wise to understand if a one week late payment can impact your credit. FICO Scores According to FICO, certain factors are considered in the scoring model's computation of your score....

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Why Has My Credit Score Gone Down?

Your credit score can change each month depending on the type of activity you have on your account. If you are noticing a dip in your score, you naturally want to determine what's decreasing it so that you can rectify the situation. Look at your recent financial behavior to see if you can find the reason. New Credit Opening a new credit account can cause a dip in your credit score and there are plenty of opportunities to start a new credit account. For example, you might not think twice about applying when a cashier offers you a 30 percent...

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How to Remove Negative Statements From Credit Report

Negative accounts on your credit report, often known as derogatory accounts, refer to collection accounts, accounts with late payments in the payment history, charge-offs, foreclosures, repossessions, judgments, bankruptcies and liens. Negative accounts generally can be reported on your credit report for seven years, although some account types extend to the 10-year mark. If a negative account is past the reporting date, you can dispute it for removal. If an account is not yours or the information is not reported accurately, you may also dispute...

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The Effects of a Foreclosure on a Credit Score

In December 2010, foreclosures were at some of the highest levels in years with 1 out of every 501 homes in foreclosure in the U.S., according to RealtyTrac. Foreclosure means your family will likely have to find a new place to live, but this could prove challenging, because your credit takes a massive hit after such a financial disaster. Identification The effect of foreclosure on a credit score depends in large part on where your credit was before the foreclosure. Average-to-poor scores tend to take less of a hit, because the credit history...

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How to Define a Credit Check

A credit check is the act of obtaining a credit report. Credit reports provide detailed financial information about an individual, including past financial problems and information about employment history. Consumers can use a credit check to make sure they aren't victims of credit fraud or identity theft, which can harm a credit report by attributing poor behavior to the individual. Purpose The purpose of a credit check is to call to attention both good and bad points that make up an individual's financial history. While most of the items...

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How Long Does a Late Payment Remain on Your Credit Report?

A single late payment on your credit report can make you too risky in the eyes of creditors, according to The Motley Fool. This can affect your credit for years after the late payment. Identification Negative information on a credit report, such as late payments, stays there for seven years, according to Credit Info Center. Credit reports list late payment accounts based on the date of the bill. Considerations If your late payment leads to a default, or if the creditor writes it off as non-collectable, the negative mark can stay...

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How to Correct a Trans Union Credit Report

Trans Union is one of the three major United States credit bureaus. It compiles information on consumers and sells it to lenders and other companies where it is used to make financial and employment decisions. Trans Union, like the other bureaus, may make errors in the items it includes on its reports. The Fair Credit Reporting Act (FCRA) gives you the right to review your TransUnion report for free every year and ask that mistakes be corrected through a specific dispute process. Instructions 1 Photocopy the pages of your TransUnion credit...

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Is Being Debt-Free Good for a Credit Score?

You need a track record of responsible debt management to establish a good credit score. That's why living without debts may not be helping you build a good credit rating. You may not even have a credit score if you've never accumulated debts that credit bureaus regularly track. Credit History Debt-free people may see themselves as financially responsible, but creditors and lenders judge financial responsibility by looking at people's credit histories. The information in your credit report affects your credit score. However, there isn't...

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How to Fix and Restore My Credit Report

If you are the victim of identity theft or a credit card issuer has falsely reported delinquent accounts on your credit report, you'll need to fix and restore your report before obtaining new credit accounts. By documenting and reporting incorrect or fraudulent activity on your credit report, you make it easier for credit-reporting bureaus and creditors to correct your report and stop your credit score from plummeting as a result. Instructions...

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Can Charge-Offs on Credit Reports Be Reopened?

Charge-offs on credit reports are a top reason for denial of new account applications, according to Steve Bucci of the Bankrate financial site. These negative entries can be reopened and paid, but they must be handled correctly or it will not improve a person's credit score. Ideally, the charge-offs should be completely erased so they no longer influence the credit records. Definition A charge-off is an accounting procedure done by a credit card company or other lender so the amount owed is no longer viewed as an asset, according to Bucci....

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How to Join Equifax

Equifax is a credit and money managing firm that has been serving personal customers and businesses for nearly 100 years. Equifax offers a variety of personal finance services that will keep you on track to managing your credit debt and paying off this debt in a timely fashion while protecting your identity. You should have peace of mind knowing that Equifax backs their products with a $25,000 or $1 million ID protection insurance, depending on your...

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What Makes a Credit Inquiry Drop-Off on Your Credit Report?

Credit reports gather much of your financial information into one place, letting potential lenders, landlords or employers get a sense of your ability to handle credit wisely. Because of the complexity involved with collecting and reporting large volumes of information about your credit history, including individual loan accounts, earned income and payment history, what makes your credit report score drop off or improve might seem confusing. Consumers...

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Components of Credit Scores

FICO is the major credit score provider in the United States. It bases its scores on five major areas of financial activity, each of which makes up a certain percentage of the total score. The information for each area is gathered from a consumer's credit reports. It continually changes as the consumer makes or skips payments, opens or closes accounts, pays down balances or makes more charges, and does similar financial and credit-related activities....

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Statute of Limitations on Closed Accounts on Credit Reports

The statute of limitations for closed accounts listed on credit reports is governed by the Fair Credit Reporting Act. The act covers the reporting of all items including unpaid obligations, good credit items, bankruptcy, legal judgments and tax liens. Charge-Offs and Delinquent Debt Any type of legal judgment or tax lien remains on the credit bureau reports for a period of seven years. From the date of the last delinquent payment, 180...

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How Can I Remove CBCS From My Credit Report?

CBCS is a collections agency offering collection services to health care, financial, utility, communication, cable and satellite companies. Due to a high number of complaints, the Better Business Bureau graded CBCS with a "C" because of issues being linked to improper collection practices or unsubstantiated charges. Under the Fair Debt Collection Practices Act consumers have the right to question any debt listed on a credit report and to request...

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How to Build a Better Credit Record

The first time you applied for a credit card, a car loan, an insurance policy or a personal loan, a credit report was opened under your name and Social Security number. This report contains your employers, addresses you have lived, your debt, how you pay your debt, bankruptcies, judgments and lawsuits in which you have been involved. Potential lenders, landlords, employers and insurers view your credit report. Having a good credit report is therefore...

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About the Consumer Credit Reporting Reform Act of 1997

The Consumer Credit Reporting Reform Act, or CCRRA, of 1997 changed the way employers were able to gain access to credit reports dealing with the hiring process, promotions, and retention. How the law affects consumers depends on whether employers are requesting credit reports for consumer reporting or for investigative reporting. Consumer Reports Knowing your rights will help protect you and your credit. A consumer report covers the...

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Letter to Repair Credit

Credit repair is accomplished in several different ways, including debt reduction and rebuilding of timely payments records. These efforts can take many months, but quick repair is possible for people with mistakes on their credit reports. The Federal Trade Commission cites letters as the best method for cleaning off bad report entries by filing disputes. Purpose Credit repair letters are used to dispute credit report mistakes. The Experian, TransUnion and Equifax credit unions compile financial information, but they do not audit its accuracy....

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How to Determine FICO

Invented by the Fair Isaac Corporation, FICO is a numerical snapshot of a consumer's credit worthiness. Based on payment history and debt-to-credit limit ratio, a credit score will determine how good a consumer is at paying his bills on time. If you want to determine your FICO score, read on to learn what a FICO score can mean for you and your family as well as how you can increase your FICO score. Instructions 1 Understand what a FICO credit score is and why it matters to you and your family. The three nationwide credit bureaus, Equifax,...

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Credit Report Score Range & Meanings

Your credit score uses information from your financial history to predict how likely you are to default on your future loan payments. When you apply for credit, such as a credit card or loan, one of the first criteria lenders look at will be your credit score. The most widely used credit score is the FICO score, which is calculated using an algorithm developed by the Fair Isaac Corp. The Fair Isaac Corp. licenses this algorithm to the credit bureaus...

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The Best Way to Get Your Credit Score

Knowing your credit score in today's economy is crucial. Every credit repair and credit enhancement company knows this and will bombard you with offers about how to obtain your free credit score. Here are the best and cheapest ways to obtain your credit score. Free Credit Report The best and cheapest way to obtain your credit score is through annualcreditreport.com. The Fair Credit Reporting Act (FCRA) entitles you to one free credit report per year from each of the three credit reporting bureaus: Experian, Equifax and Transunion. You can...

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Do Judgments Count on a Credit Report?

A legal judgment is serious business. Both private parties and commercial creditors have a right to sue when you have debts you either will not or cannot repay. The result of a successful nonpayment lawsuit is a court order, commonly called a judgment, which not only orders you to pay, but also gives your creditor additional ways to collect on the debt. In addition, once the court files a judgment against you, it will affect your credit report for...

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How to Get Your Free Credit Report Online Now

As a consumer, keeping track of your credit report plays an critical role in your continued ability to qualify for credit, including business loans, mortgages, auto financing and credit cards. Because the details are so important, the federal government requires credit reporting agencies to provide everyone with one free credit report per year. Although you can access your credit report from any company of your choice, Annualcreditreport.com is the only Federal Trade Commission-approved free credit report provider in the U.S. You can use the service...

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How to Correct Wrong Information on a Credit Report

Lenders look at your credit report to evaluate your risk related to becoming a potential borrower. If your credit report shows you pay your bills on time and don't max out your credit cards, you will likely qualify for better interest rates than others who are not as diligent with their personal finances. It is important to look over your credit report thoroughly to check for any errors. Name misspellings, address errors, and mistakes regarding delinquent...

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Are Past Due Phone Bills Reported to the Credit Bureaus?

Some cell phone users purposely miss payments, because providers often do not report late payments to the credit bureaus. In 2011, however, this plan could backfire, because some cell phone providers have the ability to report payment history to the credit bureaus. Consumers should pay their bill on time either way, because delinquent accounts can be referred to collection agencies. Identification Traditionally, the major cell phone providers...

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Does My Credit Get Lower if I Close an Account?

Closing a credit account can lower your credit rating, no matter who initiates the closure. Whether you close the account to eliminate unnecessary statements or if the creditor closes the account for inactivity, your credit score can take a hit. If the account information is positive and it's not costing you anything, keep it open to give your credit a boost. Revolving Accounts Credit scores are mathematical computations based on several factors that indicate your financial well-being at a given point. If you or the creditor close an account,...

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How to Add a Seasoned Trade Line

The term "seasoned trade line" is credit industry jargon for a credit line or credit account with a longstanding history of on-time payments, typically over three to five years in age. Credit-responsible parents who add their children as authorized users engage in the practice of adding a seasoned trade line or what is known as "piggybacking." The authorized user is afforded the benefit of good credit without having to build her own. Adding a seasoned trade line to improve your credit score is simple. Instructions 1 Add your name as an authorized...

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How to Obtain Your Credit Score Numbers

Every loan you take out, credit card you apply for, apartment you rent and many purchases you make depend on the strength of your credit, which is determined by your credit score. You don't receive a credit score in the mail every month, and you can't get it from your bank either. You can obtain your credit score for free once a year from the AnnualCreditReport website. You can also obtain your credit score by visiting a third-party credit report...

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How Long Should I Save Credit Report Copies?

Your credit report contains the details of your financial history. Your ability to get good interest rates on loans, approved for credit cards or even an apartment can depend on your credit report. As such, not only must the information contained in the report be checked for accuracy, it must be checked regularly because creditors report information to the credit agencies to be included in credit reports. Fair Credit Reporting Act Under the Fair Credit Reporting Act you have a right to know the information contained in your credit report,...

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Credit Report Rating Explanation

You're disappointed to learn that you have a low credit score. Or maybe you're surprised to learn how high your score is. You're not alone. The key to understanding why your score comes in at a certain level is to understand the information contained in your credit reports. What They Track Credit reports will list your missed payments. Three national credit bureaus--Experian, Equifax and TransUnion--compile credit reports on you. These...

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How to Establish First Time Credit

Building a credit history is just as important as using credit responsibly. If banks don't have proof that you are a responsible borrower, they are more reluctant to issue loans to you at reasonable rates. This affects your ability to buy a car or a house or to make other large purchases. One of the best ways to establish your credit is to get a low limit credit card while you are young. Instructions 1 Apply for a basic credit card through...

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Do Employment Credit Checks Lower Your Score?

A consumer's credit score is made from computations relating to payment history, comparative credit and debt ratios, the timeline of credit maintenance and credit account types. Certain credit checks lower your credit score, but employment credit checks have no impact on the overall credit rating. Employment listings within your credit report provide information that potential creditors and employers may find interesting; inaccuracies in this area may affect employment or loan qualification. Hard Inquiries Experian, TransUnion and Equifax---the...

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Free Information on Cleaning Up Your Credit

You may have seen ads for companies offering to clean up your credit. The truth is that you can do it yourself at little or no cost, but it takes diligent effort and patience. Expect to spend a lot of time combing over statements and credit reports, as well as disputing information when necessary. Afterward, you will need to improve your borrowing habits. However, the time and energy you expend will more than pay for itself. Get Your Credit Report If you haven't already received a free copy of your credit report within the last year, visit...

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Fair Credit Reporting Act Requirements

For a society to function, the banking system needs to be fair and accurate. Mistakes can cost both the individual and the system as a whole, if the information provided in inaccurate. Public trust gets undermined. The credit reporting agency system is a massive network designed, with the aid of the Fair Credit Reporting Act, to run efficiently and honestly. A series of requirements are in place to keep the reporting agencies operating at high trust...

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Does Getting an Auto Loan Raise Your Credit?

Paying your bills on time, disputing negative or inaccurate information on your credit report and keeping your account balances low -- all these ideas can potentially raise your credit score. Simply getting an auto loan won't raise your credit score; in fact, it may lower it slightly at first since it will be a new account on your credit report. The way in which you approach the auto loan process, however, and your overall management of the loan are what counts. Before the Auto Loan Banks and financial institutions that make auto loans...

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How to Clear Outdated Information on a Credit Report

The Fair Credit Reporting Act prohibits creditors and debt collectors from reporting negative information that is outdated. Negative information, such as charge-offs and collection items, can be listed on your credit reports for seven years. Bankruptcies and foreclosures can be reported for 10 years. Getting them removed from your credit reports is easy--once the proper amount of time has passed. Instructions 1 Get a copy of your credit report...

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5 Biggest Factors That Affect Your Credit Score

Companies that issue credit to customers such as automobile lenders, credit card companies and banks use a scoring system to evaluate a consumer's creditworthiness. Organizations that compile credit scores use statistics of existing customers to determine the factors that contribute to the risk for nonpayment. Companies may not use factors such as race, gender, national origin, religion or marital status to determine credit risk. Insurance companies use credit score to determine a consumer's likelihood of filing claims and the expense of insurance...

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