Are Credit Score Quick Fixes Fact or Fantasy?

The world of credit repair is filled with promises of fast fixes. Some of them are an exaggeration at best and criminal at the worst. There are a few ways to fix your credit score immediately, but nothing remedies poor debt management. Practice good borrowing habits now, however, and your score will rise eventually. Fixing Your Credit in Hours Quick credit scores fixes are not entirely a fantasy. Rapid re-scoring can clean up a credit report within 72 hours, but only if you have mistakes. If you can prove a negative item on your report...

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10 Best Ways to Fix Your Credit Score

The higher your credit score, the more likely your chances of being approved for loans, credit cards and discounts from your bank. Many people strive to keep their credit score within a particular high range, but variables often influence the ability to accomplish this. If your credit score drops below a point of comfort, bringing it back up is not impossible. Fixing your credit score takes time and effort, but is doable. Get Organized Keep...

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How to Post Trade Lines

A trade line is an industry term which refers to any item listed on a credit report, including a mortgage, car note and credit card accounts. Each individual account on a credit report is referred to as a trade line. Getting trade lines posted to one's credit report can be vitally important, especially if it reflects on time payment history, as it helps improve one's overall credit score. Instructions 1 Obtain your credit report from all...

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Answers for Credit Solutions

Knowing the various methods to improve your present credit situation can make you a good candidate for a low-rate auto loan, mortgage or credit card. Credit is imperative, and people with low or bad credit scores tend to receive more credit rejections than someone who shows creditworthy habits. Fix your credit now, and open the door to numerous financing opportunities. Lateness and Payments Solve credit problems with better payment habits....

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How to Rebuild Your Credit With No Upfront Fees

Some credit repair companies ask for high upfront fees to wipe out bad credit, but the Federal Trade Commission (FTC) explains that this is illegal. A credit repairer cannot collect any money from a customer until it performs its job. Unscrupulous firms ignore this requirement and usually do not fulfill their promises. You can rebuild your own credit without paying anyone because you can use the same methods as legitimate repair companies and some financial actions of your own. Instructions 1 Pay all of your current credit cards, loans and...

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The Definition of "Risk Based" Underwriting

Some borrowers are more creditworthy than others. That is why lenders are willing to offer the lowest interest rates to people who have the best record of repaying their bills and debts on time. Lenders and other financial institutions such as insurance companies use "risk-based" underwriting to either set or adjust the price and other credit conditions for a particular borrower or client based on that person's credit history. Anyone applying for an insurance policy or any type of loan, including mortgages, cars or credit cards, can expect that...

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The Advantages of Good Credit History

A person's credit history is a seven-year record of the positive and negative reports that creditors have made in regard to his payment patterns. A credit history that contains mostly positive reports results in a higher credit score, which in turn can open up further opportunities. Those with good credit histories can secure financing more easily at lower rates and will be more attractive prospects to employers and landlords. Credit Cards ...

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How to Erase Negative Credit Report Entries

Negative credit report entries on a personal credit report are detrimental to your financial health. These negative entries will prevent you from obtaining low-interest loans (especially on mortgages and car loans), getting an apartment or even getting a job for which you are otherwise qualified. If you have a legitimate reason for credit bureaus to review your report, you can erase some of these entries. However, the process is quite challenging....

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Why Is a Good Credit Score Important for Students?

Credit scores are essential to financing some of the larger items in life. Though college students may think they're years away from buying a new home or car, many do not realize that even the smaller things in life come with a credit check--and even the smallest missed payments can make that number look disastrous. Smart college students begin building their good credit early, knowing full well the positive and negative repercussions that a bad...

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How to Re-Establish Your Credit After a Car Repo

Having your car repossessed is an embarrassing situation, but if you fall too far behind on your payments, it is the likely outcome. What you may not realize is that losing your car to the bank costs you more than just your freedom. It has a huge impact on your credit score, and bouncing back can be a challenge. If you are trying to rebuild your credit score after a car repo, take some time to learn about the steps you can take to raise your score...

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How Debt Consolidation Affects Credit Score

It's not uncommon for people to get into debt to a level where it becomes hard to keep up with payments. Once someone gets to that point, finding a way out can be difficult. It is easy to get further and further behind. Debt consolidation is one way to deal with out-of-control bills. Debt consolidation programs bundle together your debts and you make one payment instead of several. Understanding all the potential hazards and benefits of a debt consolidation...

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How to Change Wrong Items on Credit Reports

You credit report is important and can easily be inaccurate. The credit reporting agencies aren't nearly as accurate as you would imagine. There are three agencies, and anything from perspective employers to utility companies to mortgage and car loan companies check this report before they decide how and if they will do business with you. Correcting mistakes on your credit report will save you money and headaches. Instructions 1 Get a copy of your credit report. The three credit reporting agencies are Experian, Trans Union and Equifax. All...

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How to File a Complaint Against a Credit Reporting Agency

Credit reporting agencies like Equifax, TransUnion and Experian are required to follow a consumer-protection law called the Fair Credit Reporting Act. Unfortunately, there might be times when you feel credit reporting agencies are violating the FCRA, and they might be unresponsive to your complaints about the situation. The Federal Trade Commission monitors their compliance with the FCRA, so if you feel they are in violation, report them to the FTC using a simple process. Instructions 1 Write up a detailed account of your complaint. Stick...

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Fastest Way to Repair Bad Credit

Consumers who have gone through a bankruptcy, fallen behind on bills or who have otherwise seen their credit score decrease can improved their scores almost immediately by taking the proper steps. Though long-term credit repair usually requires a credit repayment plan, there are some fixes available to consumers who need to improve their score quickly. Obtain Credit When you apply for a loan, the creditor wants to know that the money it gives...

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Do Child Support Judgments Affect a Credit Score?

Your Credit Scores Your credit scores are made up from algorithms that determine how likely a person is to default on an obligation. The theory is the higher the score, the less likely a person is to default on something. You are a low credit risk if you have scores in the 750 range; a score in the 500 range would be a higher risk to a creditor who is asked to grant a credit request.. How Judgments Affect Your Scores If your divorce has you obligated to pay child support for your children, and you are in default, it is possible that...

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What Hurts Your Credit?

Fair Isaac Corporation (FICO) determines your credit score based on a formula that applies a percentage to each item. When you apply for a loan or a mortgage, the lender checks your credit. Often prospective employers and landlords also check credit. Your auto insurance company bases the rate you pay on your credit score. Because your FICO score is important to many areas of your life, you must avoid anything that hurts your credit. Delinquent Payment History The My Fico website shows that fully 35 percent of your credit score results from...

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Does Closing Credit Cards Affect Credit Scores?

You may think that closing a few credit cards makes you more attractive to lenders, because it lowers the amount of debt you can carry, but it can sometimes have the opposite effect. Instead of eliminating history on the account from your report, closing cards hurts your score mostly by reducing a key component of any score: credit utilization ratio. Identification The most important thing you lose from closing your credit card is available...

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Do Free Credit Reports Hurt Your Record?

Even some people who work in the lending industry mistakenly believe that obtaining a free credit report hurts a person's credit score. This stems from the fact that certain types of inquiries will damage your score. Whether you receive a free report or pay for one, checking your score won't hurt; only applying for a loan can. Misconception Receiving a free credit report through AnnualCreditReport does not hurt your score because personal credit checks are considered a "soft inquiry," according to the BCS Alliance. Soft inquiries do not...

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What Is the Penalty for Walking Away From a Mortgage?

Walking away from your mortgage usually results in a voluntary foreclosure, with the lender taking possession of the home and eventually selling it. It is not illegal to walk away, but the penalties can be numerous, sometimes causing devastating consequences that can last for years. Judgments The bank will eventually foreclose on your home after you stop paying the mortgage. The house will eventually be sold at auction to the highest bidder,...

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Guide to the Credit Bureaus

Credit bureaus are companies that collect information about the lending history of individuals and small business. These credit bureaus process this information and issue a number rating for each consumer that has taken out some form of credit. This number, known as a credit score, is a calculation by the bureaus of the likelihood that a person will pay back a loan. The higher the score a person receives, the more faith a bureau has that the person will pay back the loan. Purpose The main purpose of credit bureaus is to offer an impartial...

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How to Reference Credit History

Credit history documents a business or individual's paid and unpaid debts over a certain amount of time and may list information pertaining to credit cards, mortgages, car loans, and medical billing. This official information is used by lenders to assess the likelihood that a person will pay bills in a timely manner. Credit score is also a key factor in credit-history information. The score, typically ranging from 300-900, is calculated using a mathematical...

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Does it Hurt Your Credit to Apply for a Credit Card?

Your three-digit FICO score is key to obtaining a credit card at the best possible rate, but the act of applying for one can hurt your score. Fortunately, the bruising from a credit card application is slight as long as it does not look like you are trying to prepare for a financial meltdown. Identification Applying for credit hurts a credit score by one to five points, according to the website Bankrate. A credit card application does not...

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How to Raise Your Credit Score While Keeping an Eye on Your Credit

When you undertake credit repair on your own, monitoring the changes in your credit helps you to see the effect your efforts are having on your credit score. Credit scores are affected by many different aspects of your credit accounts and overall debt. Your credit is also affected by on-time payments and collection accounts listed on your credit report. Instructions 1 Sign up for a credit monitoring service. All three major credit reporting agencies offer credit monitoring services, as does MyFICO and a number of third party companies. Credit...

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Steps to Rebuild Credit

Many people have to contend with falling credit scores due to a bankruptcy, foreclosure, job loss or other major event. When credit scores fall, people have to pay more to borrow money and in some instances people become ineligible to borrow at all. Additionally, insurance premiums are higher for people with low credit scores, which means it costs more to get health coverage or to protect your property. There are several things people with low scores can do to improve their credit rating. Check Your Credit Report The major credit bureaus...

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Does It Affect Credit Scores to Withdraw a CD Early?

A certificate of deposit, or CD, is a deposit account in a bank or other financial institution. The CD has a specific interest rate, dollar amount and redemption period that determines long the money must remain in the account to avoid a penalty for early withdrawal. If you withdraw funds from the account early, it's a good idea to understand if this will affect your credit score. Significance According to myFICO, a FICO credit score is a numerical representation of your credit history based upon the credit information from Equifax, Experian...

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Defining Credit Scores

Credit scores are calculated using information from your credit report to determine how much of a risk you pose to potential lenders. The five categories used to calculate your credit score are your payment history, the amount of debt you carry and how much credit is available to you, the length of your credit history, how many recent credit applications you have submitted and the types of credit you use. Payment History Payment history accounts for 35 percent of your credit score. This category looks at whether you have paid your bills...

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Credit Reporting Agencies in the United States

Credit reporting agencies, also known as credit bureaus, are companies that keep records on how well individuals pay their bills. Companies who lend money will check the credit reports of individuals who apply for loans so lenders can determine how creditworthy the applicant is. If a person has a history of not paying back money, the company will see that on the credit report and be protected against making a loan to that person. There are three major credit bureaus--Equifax, TransUnion and Experian--in the United States that are used by consumers...

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How Long Does a Closed Account Remain on a Credit Report?

Closed credit accounts may be forgotten by their former owners once the bill is paid in full, but they are not forgotten by the credit bureaus. Credit cards, loans and other account types show up on credit reports for many years. The exact time frame depends on whether they were paid on time or closed under negative circumstances. Definition A credit report is a document compiled by the three dominant credit reporting agencies, according to the Federal Reserve Bank of San Francisco. TransUnion, Equifax and Experian all gather demographic...

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