How to Contact the Big Three Credit-Reporting Agencies

The three U.S. consumer credit-reporting agencies are TransUnion, Experian and Equifax. Credit-reporting agencies keep a record of consumer credit history. Creditors will update a debtors payment history once per month. You can contact the credit-reporting agencies using several methods. The method you use will depend on your reason for contacting that agency. Sometimes credit-reporting agencies are contacted to dispute items on a credit report. People also contact credit-reporting agencies to get copies of their credit report. Instructions ...

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Does a Forebearance Hurt Your Credit Score?

Debt can be a beneficial way to manage your finances as well as a potential source of problems. Investments such as a home mortgage or college education often leave borrowers with major financial commitments, and any financial hardship can make it difficult to pay back the loan. A forbearance, which is temporary permission from the lender to stop making payments, is one way to avoid default, but it can have unintended consequences. Loan Types If your lender grants you a forbearance, it will appear on your credit history. However, the way...

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Does Using a Debit Card Build One's Credit History?

Debit cards are a convenient way for consumers to make purchases since paying with a debit card is faster than writing a check and easier than carrying large amounts of cash. Debit cards are such a common feature of checking accounts that you probably have one in your wallet right now. Unlike credit cards, however, debit cards do not help you build a credit history. Facts Your debit card is tied directly to your bank account. When you use your debit card, you are not borrowing money from the bank. You are paying for purchases with your...

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Are Credit Scores Valid?

When you obtain a copy of your credit report, you can also pay to access your credit score. In some cases, the credit score displayed may not seem completely accurate. Your credit score is a compilation of all the information that credit bureaus document on your credit report. In some cases, your credit score may be affected by incorrect information. Credit Reports Every time you make a payment, open an account, close an account or take some other action that involves a creditor, it usually is reported to the credit bureaus. The three major...

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How to Repair Your Beacon Score

Your credit score is very important, especially if you are preparing to make a large purchase, such as a home or car. Before you complete any applications for credit, you should take a look at your credit report and make sure everything is correct and that your credit score is good. You want to make sure your Beacon score is at least 620, which will give you some of the better interest rates and less problems when trying to buy something on credit. Instructions 1 Call one of the three major companies (Experian, TransUnion or Equifax) to...

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How to Rebuild Credit After Repossession

Skipped or late payments contribute to a low credit score. Additionally, experiencing a repossession can damage your score and make it harder for you to obtain future financing. To qualify for a future car loan or mortgage, you'll need to rebuild your credit history and maintain a high score. Instructions 1 Dispute credit report errors. Credit report errors reduce your credit score. If you're trying to rebuild your credit history after a repossession,...

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Why Do Companies Check Credit Histories?

Though applying for a credit card and applying for a job might seem like unrelated events, they share one thing in common: The company to which you apply may request a copy of your credit report. Knowing how companies use this information can help you change your financial habits to work in your favor. Your Payment History To creditors, the most accurate indicator of whether you will make timely payments on a loan is your past payment history. So, they request a copy of your credit report when you apply for a loan to find out how often...

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How to Scrub Your Own Credit

There are no easy fixes for a credit score. Repairing your credit takes time, commitment and consistency. However, there are some steps you can take that will help boost your score relatively quickly. Instructions 1 Find out your credit score. Websites such as annualcreditreport.com provide three free credit reports per year, with scores costing between $5 and $10. Make the investment so that you can understand your score and how to improve...

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Mandatory Reports to a Credit Agency

With credit scores playing such an important part in our lives, many people are worried about what is being said about them on their credit reports. While it's easier than ever to obtain a copy of your credit report, it helps to understand what the credit bureaus require creditors to report about your credit activity. Credit Reporting Requirements According to the Privacy Rights Clearinghouse, the Fair Credit Reporting Act does not require creditors to report anything to the credit bureaus, including negative information. This can work...

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What Is the Fastest Way to Increase Your Credit Score or to Raise Your FICO?

Lenders depend heavily on your FICO score to determine your creditworthiness for a car loan, home mortgage and consumer credit cards. Your score may not always reflect accurate information, but true credit missteps take time to repair. Expert Insight "There's no quick fix for creditworthiness...it takes time, a conscious effort and sticking to a personal debt repayment plan," according to the Federal Trade Commission. The FTC warns against...

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What Looks Worse on My Credit Report, a Repossession or a Bankruptcy?

Generally, your payment history with lenders has the most influence on your credit report when determining credit scoring. Late payments do damage your credit score, but not paying debts at all lowers your score and significantly reduces your creditworthiness with would-be lenders. The negative influence of bankruptcy or repossession depends on other information on your credit report and your starting score. Credit Scoring Facts According...

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How to Clean Up Bad Credit Fast

Perhaps you're ready to apply for a mortgage loan or buy a car. Checking your credit report and score before applying for financing provides some indication of your approval odds. But what if your report and score reveal problems that can ruin your chances of an approval? Rather than accept credit problems, take steps to clean up your bad credit fast and get the financing you need. Instructions 1 Pay down accounts that have balances. You can...

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Credit Rating FAQ

From television commercials to radio ads you have probably heard about credit ratings (also called credit scores) for a long time. Credit ratings are complicated and at times confusing for most consumers. Make sure you are informed about credit ratings and how they affect you; it is important to separate the fact from fiction. Does Applying for Credit Lower Your Rating? Yes, it does---but only slightly. Each time you apply for credit your...

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What Does EFX Mean on My Credit Report?

The oldest of the three major credit rating agencies, Equifax, started in the 1890s as a company that sold credit reports of customers to members of the Retail Grocer's Association. If you see EFX on a report, it is an abbreviation for this company. EFX scores are technically not a true FICO score but are essentially close enough. Identification The acronym "EFX" comes from the stock ticket symbol for the company. The other two credit agencies also sometimes go by this. TransUnion uses "TU" and Experian "XP." Until 1979, Experian was known...

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Does Having a High Credit Card Limit Lower Your Credit Score?

Before you apply for a new loan, do whatever you can to raise your credit score so you get the best loan possible. Having a high credit card limit rather than a low credit card limit, in most cases, will raise your credit score. Effects Having a high credit card limit helps you keep your balance-to-limit ratio low (provided you pay off your cards in full each month, and don't carry a lot of debt). The FICO credit-scoring model uses your credit use, or balance-to-limit ratio, to determine about 30 percent of your credit score. Example...

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Credit Freeze FAQ

If you're concerned about who may be accessing your credit history or if you want to avoid the risk of identity theft, consider implementing a credit freeze. Each state has different laws on when and how you can enact or remove a credit freeze. If you're interested in protecting your credit, understand how the freeze process works and how it can benefit you. How Do I Freeze My Credit? To place a freeze on your credit, you must contact each...

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Impaired Credit History

Your credit history gets impaired by many different financial activities. Fair Isaac Corporation, or FICO, takes information from your credit reports to calculate your credit score. The Experian, Equifax and TransUnion credit bureaus sell your credit history to lenders and insurers when you seek loans, credit cards and insurance, so impaired records hurt you by getting you rejected or subjecting you to higher interest rates or premiums. Common Impairments Past-due payments impair your credit history, as does ignoring a bill until it gets...

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How to Clear Up an Error on My Credit Report

A credit report details an individual's credit history. This document details a person's repayment history, revolving lines of credit (such as credit cards and home equity loans), mortgage loans, personal loans and automotive loans. Additionally, credit reports contain negative credit items, such as collection accounts, late payments, foreclosures and bankruptcies. Equifax, Experian and TransUnion, the three credit bureaus, use a person's credit report to determine her FICO score. A credit report inaccuracy, especially a negative item such as a...

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How to Have Things Deleted on Credit

If you have been late on payments to your creditors in the past, you likely have some negative items on your credit report. These items may be affecting your credit report and credit score enough to prevent you from obtaining financing with favorable terms. There are ways to remove some or all of these items as a way to rebuild your credit profile as long you make timely payments on your current accounts. Instructions 1 Call and request...

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How to Dispute an Incorrect Credit Report

A low credit score can not only affect your ability to obtain credit but also sometimes your ability to get a job. A low credit score means your report contains negative information about some or all of your accounts. You should review your credit report annually to check for inaccuracies and incorrect information. Individuals who have discovered inaccurate account information on their credit report can dispute this information with the reporting...

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How to Freeze Your Social Security Number With a Credit Bureau

Your credit report and the Social Security Number (SSN) the credit bureau has on file carries significant importance for individuals interested in a loan or other form of credit. Individuals who have their Social Security number linked to a poor credit score may encounter difficulty finding low-interest credit rates, and may be rejected outright. Sometimes, individuals who fall victim to identity theft find their SSN used in conjunction with false information that may jeopardize their credit score. Learn how to freeze your credit report and the...

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Will a Short Refinance Payoff Hurt My Credit Score?

Twenty-five percent of mortgage holders owe more than the current market value of their home -- they have what's called an underwater mortgage. Many people in this situation seriously consider just walking away from an underwater mortgage, but you should consider another option: short refinance. This can save your home, but sacrifices your credit score. How it Works In a short refinance deal, the mortgage provider forgives the "underwater"...

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What Is a Poor Credit Score?

A poor credit score makes it difficult to borrow money. It makes it harder to get a mortgage or an auto loan with favorable interest rates. According to Bankrate.com, the big credit bureaus--TransUnion, Experian and Equifax--use different formulas to figure your FICO score, the most common type of score. As a result, you probably have a different score at each bureau. If your low score is causing problems, you can raise it if you understand its...

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Why Is a Collections Not on My Credit Report?

When you keep receiving calls about an account in collections, you probably assume that the credit bureaus know about it and put it on your file. Sometimes the credit bureaus do not list a collections -- a great benefit to your credit score. Usually, this occurs because of a bureau slip up and you should take this as an unexpected gift. Credit Reporting The credit agencies are not perfect and miss some items. Collection agencies usually have a private database the bureaus can search rather than updating accounts individually. Not all credit...

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List of Legitimate Credit-Reporting Agencies

Credit-reporting agencies maintain and distribute public and private credit information on people around the world. Private information is provided by creditors that report individual credit account activity to the agency. Public information is gathered from court records, such as bankruptcy filings and civil judgments. The information is included in individual credit reports that the credit agencies sell to banks, credit card companies and other lending institutions. Creditors rely on information on the credit reports to help make lending decisions....

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Credit Score Scales & Information

Credit scoring models review consumers' credit files to identify common variables. The models are used to highlight variables that are most likely to predict consumers' future behavior when handling financial matters. Some variables are given more weight than others, which can help consumers understand how creditors and lenders judge their creditworthiness. Credit Scoring According to the Experian credit-reporting company, lenders as a whole may use any of more than 1,000 types of credit scores to determine consumers' creditworthiness....

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How to Understand Credit Scores & Risks

Gain knowledge necessary to understand credit scores and types of credit risks. Knowing and understanding these terms is essential in today's society. Credit scores coincide with credit reports and are maintained by three main credit agencies, Equifax, Experian and TransUnion. Each of these maintains a separate credit file for each individual, identifiable by an individual's personal information and Social Security number. Each credit file contains a credit score that potential lenders or companies use to evaluate financial risk. Instructions...

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Will Several Mortgage Preapprovals Affect My Credit Score?

Mortgage preapprovals help you as a home buyer because you know how much you can spend and sellers know you are serious. You are in a better negotiating position when you have financing in place. Credit applications are required for mortgage preapproval, and they result in inquiries that appear on TransUnion, Equifax and Experian credit reports and figure into score calculations, according to the MyFICO credit scoring website. Effects Mortgage applications generate hard inquiries, meaning credit report reviews made for the purpose of evaluating...

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How to Build a Better Credit Report

Your credit report is important to your financial standing. A good credit report is helpful should you need a line of credit, allowing you to get lower interest rates, often with preferential terms. Check your credit report regularly to ensure it is correct. This will allow you to monitor areas that need improvement. Building a better credit report can take time and effort. By following a few procedures, your credit report can improve. Instructions...

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How Often Does Your Credit Score Go Up?

You may feel tempted to check your credit score every day to track its improvement, but this usually becomes an exercise in futility. The national credit reporting bureaus update their files all the time, but it is ultimately up to your creditors to give them something new to report. In some cases, you may wait months to see your score improve or as little as a few days. Identification Your credit score only improves when new, positive data enters your report. The effects of the data has two limitations: When your creditor reports it and...

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What Is the Meaning of Beacon Score?

The Beacon score is the name of the credit score used by the Equifax Credit Bureau. It's calculated using a complex secret formula that tells lenders whether the individual is creditworthy. Identification There are 3 main credit bureaus in the United States: Equifax, Experian and TransUnion. Each one uses a slightly different algorithm to calculate credit scores. Equifax calls its version of the score the Beacon score. Features The exact formula that Equifax uses is kept secret. However, it does include borrowing history, repayment...

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Will Disputing an Item Temporarily Raise Your Credit Score?

The Fair Credit Reporting Act requires that credit rating agencies investigate all disputed items and correct any errors, according to the Federal Trade Commission. Disputing any negative item on your credit report is a common tactic suggested by nefarious credit repair agencies to raise your score. This, however, is a temporary solution to long-term credit problems. Identification Disputing an item will temporarily raise your credit score...

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What Your Credit Score Means

A credit score is a way for mortgage lenders and other companies to know if you make your payments on time. Fair Isaac Corporation (FICO) has a formula that is used for calculating your credit score. This calculation gives companies a way to figure out how much risk you pose as a borrower. There are several things that effect your FICO score. These include your payment history, how much you currently owe, how many and what types of credit cards...

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