If I Finance a Car Using a Co-Signer, Will My Credit Score Go Down?

Your credit score, also known as your FICO score, is one method that a creditor may use to determine how much risk is involved in lending money to you. Your score can fluctuate over time because of a number of factors. Using a co-signer to qualify for financing will not affect your score. It will, however, influence the co-signer's score. Determining Your Credit Score Credit scores are determined by factors including your payment history,...

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Does a Credit Card in a Husband's Name Affect the Wife's Credit?

Marriage often has a huge impact on both spouse's credit ratings, despite the fact that the credit bureaus do not track the marital status of individuals. This happens because couples often join their financial accounts. However, keeping accounts separate can still affect both spouses in some states. Joint Accounts A credit card in your husband's name can affect your credit if you co-sign on the account. When you merge accounts, you take on the credit history of that account. This might improve your credit history, or if your husband misses...

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Credit Scores Explained

A good credit score is an essential financial resource in today's world. Your credit score can determine if you can finance a car, obtain a mortgage or open a credit card account. Banks check your credit score before opening a checking account. Many employers take credit scores into consideration when making hiring decisions. Definition Your credit score is a number that summarizes the contents of your credit report. Lenders rely on credit scores to quickly assess the risk a person presents as a borrower. Although there are several credit...

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How to Establish an Excellent Credit Rating

Having an excellent credit rating comes with a range of benefits. People with strong credit ratings have an easier time getting a loan, buying a car or getting a mortgage. Bad credit can haunt consumers for seven years or more, according to the Federal Trade Commission. Therefore, the financial decision you make today can impact your credit rating for years to come. Make smart choices to establish an excellent credit rating. Instructions 1 Pay your bills on time. Creditors look at whether you pay your bills--and pay them on time. Stay on...

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Does Closing a Checking Account Lower Credit?

When you establish a checking account, you are loaning your deposit money to the financial institution that houses the account. Since your are not the recipient of credit in a checking account relationship, credit reporting agencies do not keep records of the account or the fact that you closed it. However, if a financial institution closes your account when the account has a negative balance, it may impact your credit score. Credit Scores Credit scores are a record of your credit history. The different types of credit you borrow, your...

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FICO Score Advice

A FICO score is a three-digit number that informs lenders of the risk associated with giving credit to a specific individual. The three consumer reporting bureaus -- Equifax, Experian and TransUnion -- use the Fair Isaac Company's credit scoring software to calculate FICO scores, which they call BEACON Scores, Experian Risk Models or EMPIRICA Scores. These scores run on a scale from 300 to 850, with 300 representing terrible credit and 850 representing perfect credit. You can maintain a good FICO score by following a few guidelines. Never Miss...

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Will Financing a TV Help Build Credit at All?

Financing a big-ticket item such as a television might seem like an easy way to build your credit, but it could destroy your credit rating instead. Also, financing is the most expensive way to purchase a depreciating good such as a TV. You could build some credit through financing a TV, but this is usually one of the worst ways to go about it. In-store Financing Could Hurt You If you want to finance a TV through in-store financing, just applying...

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Do Pre-Approved Offers Negatively Affect Your Credit Score?

Banks attempt to attract new customers through pre-approved credit card offers. These letters and phone calls advertise attractively low rates and generous rewards for a select few, yet people question how the bank found them in the first place. To find applicants, the credit bureau screens consumer reports for suitable names; many consumers believe there is a detrimental effect on their credit scores for such searches. But the truth is pre-approved...

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How to Clear a Repo From Your Credit Score

Repossessions on your credit report can significantly lower your credit score. These negative records can remain for up to seven years. The most common repossessions are for automobiles, but other items such as motorcycles, boats, and recreational vehicles can also be repossessed. A repossession occurs whenever the owner defaults on paying the loan on an item and the lien holder chooses to seize the item. Instructions 1 Negotiate with the...

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Does Looking Up Your Credit Score Hurt Your Credit?

Knowing what your credit report contains is an important part of maintaining your credit. You may have heard that too many credit inquiries lowers your credit score. This is true. However, you are able to pull your credit report without being penalized. Soft Inquiries Credit bureaus do not treat all inquiries the same. If you obtain a copy of your credit report, it is classified as a soft inquiry. Soft inquiries do not affect your score....

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How Does Cashing Your 401k Affect Your Credit Score?

Your credit score is widely used by banks and financial institutions to determine whether to issue you credit. Insurers, landlords and even cell phone companies may also require it before approving your application. 401k Facts Your 401k plan is a retirement savings plan that you contribute to through your employer. Many people take advantage of the tax benefits from the Internal Revenue Service and employer matching contributions that some...

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Do it Yourself Credit Repair and Credit Restoration

Credit repair firms run banner ads promising to repair and restore tarnished credit for a price. They don't tell you that the Fair Credit Reporting Act (FCRA) lets you do the same thing yourself for free. You can't get rid of accurate negative information until the end of the legal reporting period, which is usually seven years. The Federal Trade Commission (FTC) states you can still repair your record by finding and eliminating harmful inaccuracies...

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How to Unfreeze My Credit Report

A credit freeze locks up your credit, preventing criminals from opening new credit accounts in your name. Once you place the credit freeze, only existing lenders can access your credit. This means you cant get new credit without unfreezing your credit. There are two options for unfreezing your credit, a permanent unfreeze and a temporary unfreeze. A permanent unfreeze will lift your freeze for good. However, a temporary unfreeze will lift the freeze for the amount of time you specify. For example, you may lift the credit freeze for 24 hours. After...

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What Are the Three Credit Score Agencies?

Three consumer credit reporting agencies compile and retain information that makes up your credit report and which factors into your credit score. The Fair Credit Reporting Act requires each of the three agencies to maintain accurate information, protect your privacy and provide a free copy of your credit report at least once every 12 months upon request. Experian One of the three credit reporting agencies responsible for calculating your credit score is Experian. You can call, write or visit Experian.com to request a free credit report,...

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Three Credit Bureaus in the United States

Businesses and lenders use a consumer's credit score when making decisions about lending out money. In the United States, three major companies provide credit information: Equifax, Experian and TransUnion. These companies are for-profit; they are not government entities and receive no funding from the government. Local, independent credit bureaus operate in the U.S., but most are affiliated with one of the three major companies. A fourth credit union--Innovis--exists, but it is not widely used. Equifax Equifax is based in Atlanta, Georgia,...

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Does Closing Accounts Improve Credit?

After paying off a credit card or another similar account, many people opt to close out the account so that they are not tempted to accumulate more debt. While this is a sound strategy, it does not help your credit score. In fact, quite the opposite may be true, depending on your situation. Lowering Available Credit When you close out a credit account, it essentially lowers the amount of available credit that you have to use. While this might sound like a good thing from a practical standpoint, the credit bureaus do not see it that way....

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How Many Points Do Inquiries Have on a Credit Report?

Many actions affect the information that shows up on your credit report, which is used to compile your credit history. Your current accounts and the way in which you use and pay them is a major influence on your credit score. In addition, applying for new credit can have an impact on your credit score as well. Definition Your credit reports and credit score are two different but interrelated items that affect your ability to get loans and credit cards. The information is compiled by the three credit bureaus, TransUnion, Experian and Equifax,...

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The Average U.S. Credit Ratings for Individuals

The average credit rating in the U.S. is in the upper 600s, but much of the population has a credit score in top credit tier, in the high 700s. Identification The average credit score for individuals in the U.S. changes in large part with the economy. During times of a recession, when defaults are typically at their highest, credit scores tend to dip because of missed payments. In August 2010, for instance, the average credit score was a 667, according to CBS Money Watch. In March 2011, the average score moved up to a 692 in light of a...

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How to Read a Trans Union Credit Report

At first glance, a TransUnion credit report may feel overwhelming, pages swimming with confusing numbers. However, each credit report is laid out in the same format, with the sections appearing in the same sequence each time. By using a quick primer on the format and learning a bit of credit union shorthand one can easily understand all the information on a TransUnion credit report. Instructions TransUnion Report Codes 1 Locate the sheet...

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What Is a Great Credit Score?

What constitutes a great credit score depends on several factors. Different types of scores have different scales. A number that is a great score on one scale may be only a fair score on another. Also, different credit situations have different requirements and individual lenders often have different standards. Types There are two major types of credit scores used by lenders, the FICO score and the VantageScore. By far, the most widely used is the FICO score. The VantageScore is relatively new. It was first offered in 2006. FICO Scores...

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Definition of a Credit Score

It has been said that your credit score is more important than your SAT score. While the SAT determines the caliber of college you attend, your credit score or FICO score (named after Fair, Isaac, and Company) is a numeric tabulation of risk compiled by three different credit reporting agencies: Equifax, Experian and TransUnion. Lenders use your score to assess how willing they will be to lend you money and at what rate. The higher your FICO score,...

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Why Are There Other People on My Credit Report?

Credit reports contain various information regarding your past and present financial accounts. It is possible for credit reports to contain errors not only in the account information but in the personal information listed on the credit report. Other people's names showing on your credit report may or may not be in error. Credit Reports Creditors report information to the credit bureaus. A creditor reports the type of account, balance, credit limit and monthly payment as well as the names and addresses of the account holders. Just because...

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FICO Proxy Agreements

FICO stands for the Fair Isaac Corporation, the creator of the FICO scoring method that is used to evaluate an individual's credit worthiness. Proxy agreements are legal documents that give authorization for someone to act on another party's behalf. The FICO Scoring Method FICO scores range within a scale of 300 to 800. FICO scores are obtained through statistical models that examine an individual's credit report for payment history, current...

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How to Buy Credit Scores From Credit Bureaus

Although you are entitled to one free credit report per year from each of the major credit bureaus, that credit report will not include a credit score. Your credit score, also known as a FICO score, is calculated from the information in your credit report using an algorithm developed by the Fair Isaac Corporation and is used by lenders to determine how likely you are to repay loans given to you. Instructions 1 Request a free copy of your credit report from all three credit bureaus from the free annual credit report website link in Resources....

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Can a Visa Debit Card Help Build Credit?

Credit scores are a measurement of how you manage your debts. Debit cards are a method of managing your money; they don't incur debt. Because of this, banks do not report debit transactions to the credit bureaus. The Facts To build credit, you must accrue debt and pay it off. Credit cards allow you to do this, but Visa debit cards do not. Benefits Debit cards teach you how to manage your money and are good practice for learning how...

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Credit Bureau Disputes

The three major credit bureaus --- Equifax, TransUnion and Experian --- collect credit information on consumers to provide lenders with credit histories and scores, which lenders and businesses use to determine the creditworthiness of a consumer. A consumer's credit history can impact his ability to take out credit cards, get a home loan or even receive employment. Federal law gives consumers the right to have errors in their credit file corrected through the credit bureau dispute process. Considerations To determine if there are errors...

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Definition of Credit Repair

Credit repair is meant to mend your credit score. You can do this yourself or engage the services of a credit repair agency. Credit repair is a three-step process. It involves analyzing the factors for a low FICO credit score, devising a plan to address the problems and finally building up your credit score and rating. When credit is repaired, you will be able to fetch loans at more competitive interest rates. Credit Scores Individuals with a FICO score of 720 or higher receive financial services such as home mortgages and vehicle loans...

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Can a Credit Score Keep You From Getting Hired?

It's common knowledge that credit scores are crucial for getting loans, qualifying for credit cards and obtaining financing for home purchases. In addition, some employers may factor your credit rating into the hiring decision. Significance Many employers run background and credit checks on prospective applicants. Employers generally look to hire people without serious black marks on their credit history, such as bankruptcy or foreclosure. Additionally, hiring managers prefer applicants with average to excellent credit scores, according...

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