How to Keep Your Credit Score 700 & Above

The Fair Isaac Corporation devised a rating system that most lenders use to determine your credit worthiness. Your FICO score, as the rating is known, ranges from 300 to 850 points. The higher your points, the more willing institutions are to extend you a credit line. Besides, when your credit score is above 700, you receive lower interest rates on loans, pay lower utility deposits and are more likely to get approved for apartment rentals, for example....

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Will a Settlement With a Credit Card Company Show on My Credit Report?

Settling with a credit card company can shave 60 percent or more off of your original balance, but this might end up costing you much more in the long run, because it can wreck your credit score. Most creditors consider this a serious offense, and credit scoring models tend punish borrowers who do not repay a debt in full. Identification Assuming your creditor reports to the credit reporting agencies, settling an account will show up on your...

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How to Get a Lower Interest Rate With a Great Credit Rating

A good credit rating is not always easy to maintain, but working to maintain and improve your credit score has its perks. A person with a good credit score--from 780 to 850, the highest ranking on the FICO scale--often pays lower deposits for apartments and utilities, and gets better deals on car loans or mortgage loans. Good credit can also help raise the limit and lower the interest rates on your existing credit cards. If you have a great credit...

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How to Report a Vendor's Late Payments to the Credit Bureau

Businesses of all sizes are sometimes confronted with vendors who are unable or unwilling to pay bills. Suppliers who are late with payments can be reported to credit bureaus through a number of different methods. Deciding whether to report these late payments is up to the individual business, but the various methods of reporting give a business several options. Knowing which option is open to you and choosing the right one for your needs is important. Instructions 1 Join the consumer credit reporting bureaus as a member. There are three...

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The Effects of Late Mortgage Payments on Credit Scores

Credit reports definitely do reflect all late payments, including mortgage payments, and these late payments do reduce your credit score. Exactly how much each late payment deducts from your credit score is calculated by complex formulas determined by each credit reporting bureau, but the number is largely based on your current credit score and how late the payment is. 30 Days Late Back in late 2009, FICO released some specific information about how specific events impact credit scores. For a person with a credit score of 780, a 30 day...

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What is a Tier 1 Credit Score?

A credit score is a rating from 300 to 850 that is assigned to those who use credit. Lenders use the scores to determine whether to give loans, the interest rates on credit cards and loans and for other financial purposes. A Tier 1 credit score is considered to be between 760 and 850. Background There are three major credit bureaus, as of 2009, that keep track of every American's credit rating: Equifax, Experian and Trans Union. These institutions compile data based on bank records, tax information, bankruptcy filings, law suits and other...

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Roles of a Credit Bureau

A credit bureau is a credit reporting agency, charged with collecting and reporting credit data. In the United States, there are three credit bureaus--Equifax, Experian and TransUnion. These agencies have a variety of roles, all centering on the monitoring of credit. Credit Scores One of the primary roles of a credit bureau is to issue credit scores for individuals. There are two credit score types: custom and generic scores. Where generic...

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How to Remove a Credit Freeze While in Collections

Many states require that credit bureaus allow consumers to "freeze" their credit. This action stops anyone (including yourself) from accessing your credit. Even if you're dealing with collection issues, you can still place and remove credit freezes on your credit file, according to the Federal Trade Commission. However, before removing a credit freeze on your account, you'll need to have your PIN handy (given at the time of the credit freeze). ...

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How to Raise My FICO Score Fast

Lenders use a FICO score to determine credit risk. These scores range from 300 to 850. A consumer with a low FICO score (lower than 600) may have difficultly accessing affordable financing. She may even struggle securing housing or getting employment. This can make everything more expensive, from getting an auto loan to paying rent. Cleaning up credit issues and focusing on areas that have the largest impact on your FICO score will raise credit quickly. Instructions 1 Catch up on missed payments. According to My FICO, payment history has...

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Legality of Credit Reporting Agencies

Under the Fair Credit Reporting Act (FCRA), credit reporting agencies are legal in the United States but must follow specific laws, according to the Federal Trade Commission (FTC). Even if you did not pay a debt such as a credit card bill as promised, credit reporting agencies must follow the applicable federal codes. Significance Almost every type of debt, whether paid on time or placed into collections because of nonpayment, could potentially end up on your credit report, according to both the FTC and the credit reporting agency Experian....

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How Do Credit Reporting Agencies Make Money?

Credit reporting agencies can have a profound effect on a consumer's ability to borrow money, get insurance, or get a new job. It's well-known that agencies provide information on a person's credit history to potential lenders, employers, and insurers, but that is not the only way these companies make money. Credit reporting agencies actually have several sources of income. Definition Credit reporting agencies are agencies that compile consumer...

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How Settling Debts Impacts a Credit Score

Collections accounts on your credit report will have a damaging affect on your credit score and will hinder your ability to obtain credit for home and car loans. Settling these accounts instead of paying off the account in full will do more to hurt than help your credit score. What Is a Debt Settlement? Creditors will offer a debt settlement to account holders whom they have not received payment from, or haven't received payment from in a...

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Does Paying Charge Offs Raise Your Credit Score?

When you are delinquent on a debt (typically after at least six months of non-payment), a creditor may declare your debt as a charge-off. A charge-off can significantly lower your credit score and remain on your credit report for seven years. Though a charge-off is assumed to be noncollectable, you are still expected to pay it. Lawsuits While paying your charge-off won't guarantee that your credit score will improve, failure to pay your charge-off could result in a lawsuit. It's always a good idea to pay off any charge-offs. Credit Report...

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Credit Line Increase & Credit Score

Just because a credit card issuer surprises you with a credit line increase to show you how much it values your patronage, it doesn't mean you should celebrate by buying a new pair of shoes. In fact, while the impact of a limit increase is good for your credit score in general, the way you treat the account will determine how your score is impacted over time. Credit Line Increases Credit card issuers reward good behavior like making on-time...

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How Long Does a Negative Credit Score Last?

The negative items on your credit report that result in a poor credit score may have an expiration date, but the quicker you break bad credit habits, the faster your score will improve. Identification A poor credit score is the result of negative items on your credit report. Negative items include payments 30 days or more overdue, charge-offs, accounts reported to collection agencies, foreclosures and bankruptcies. These items can remain on your credit report for seven to 10 years. Time Frame When it comes to the length of your negative...

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How to Get Your FICO Score Online

The Fair Isaac Corporation was founded in 1956 and the agency created a credit scoring module called the FICO Score (Fair Isaac Corporation Score). This score ranges from 300 to 850. Since the birth of the FICO score, credit providers and employers have utilized it to determine creditworthiness. A low FICO score will often result in a denial of credit. For that reason, it is wise to check your score often to ensure it is accurate. This can be done through several online resources. Instructions 1 Visit the Experian website. Click the option...

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A Credit Check by a Landlord

Credit checks are not just executed by lenders to judge your creditworthiness; landlords also run a report on potential tenants as standard practice in tenant screening. Landlords can also use a credit report to corroborate the story of a tenant, because credit files also contain demographic information. Sometimes, however, credit checks can be illegal. Identification Most landlords pull reports from a potential tenant via one of the major credit reporting agencies. The landlord might require a certain minimum credit score from tenants...

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Why Do I Have Three Credit Scores?

Most people do not know what a credit score signifies, according to the Consumer Federation of America. Add into the mix three different scores from the major national bureaus and figuring out your risk calculation can be nerve-racking. However, this is normal and you have different scores from the three credit bureaus due to variance in their databases. Identification The major credit bureaus -- Experian, Equifax and TransUnion -- control almost all of the consumer credit reporting industry in the U.S., but they are three separate companies,...

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How to Raise Your Credit Score Without Credit Repair

Your credit score is very important for the terms of any credit you receive, such as the interest rates, the amount of credit, and the length of time you have to pay it back. It can affect your credit cards or loans, your insurance premiums, and even whether or not you get a job. The good news is that you can take steps to improve your credit score on your own, and it is not necessary to have to go to a credit repair agency to do so. Instructions...

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How to Clear Old Items Off a Credit Report

To clear old items off a credit report, you have to file a dispute with the credit bureau reporting the account. Account information can vary between Equifax, TransUnion and Experian, the three major credit reporting agencies. When requesting the removal of old accounts, order a copy of your credit report from all three agencies. This ensures all your credit reports are reflecting accurate and up-to-date information. Instructions 1 Order a copy of your credit report from all three bureaus. You can do this by contacting the credit reporting...

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How to Re-Establish Credit After Bankruptcy

Reestablishing credit after bankruptcy is the key to repairing your damaged credit history. You can anticipate a drop in your FICO score after a proceeding. But low credit scores aren't permanent fixtures on your credit report. There are many ways to raise a low score and prove that you're capable of managing your money and debt after a bankruptcy. Although bankruptcies stay on your report for 10 years, a better credit score will prompt a lender...

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Debt to Credit Ratio Score

The debt to credit ratio score is a very important calculation for many reasons, including an indication of an individual's financial health. The score, which is used by financial institutions to determine whether or not to grant a loan, and if so, the terms including interest, can be expressed in a range from zero percent to 100 percent. Debt Credit card statement outlines debt. Debt is the total amount of money owed, which for debt...

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Which Is Worse on Your Credit: Bankruptcy or Foreclosure?

When you are having money problems, options like foreclosure or bankruptcy start to become realities. While no one wants to go through either one, sometimes you have to choose one over the other. If you are looking at the decision from a credit standpoint, bankruptcy will do more harm almost immediately. Function Foreclosure is a process that a mortgage lender goes through in order to repay an outstanding mortgage debt. If you owe money to a mortgage lender and you do not make your payments, the lender will foreclose on the property and...

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Privacy Guard Credit Reporting

Identity theft is becoming more common. Once a thief gets personal information such as your Social Security number, credit card numbers and bank account information, he can quickly drain your accounts and open new ones using your identity. Even if you are able to recover some of the losses, it can take a lot of time and effort to undo the damage to your credit report. Because of this, services such as PrivacyGuard are becoming more common to prevent...

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Income Information on a Credit Report

A person who makes the minimum wage can be a far better risk than a millionaire, because repaying debt has little to do with what you earn. This does not mean the national credit bureaus do not know your income or that your income cannot affect your credit. Even if you never reveal a salary to your lenders, the bureaus are exceptional at guessing it. Identification Lenders report anything you put on an application to the credit bureaus, even your salary. However, the credit bureaus do not list this on your report, because verifying total...

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How to Order a Credit Report From 3 Places

No matter what you've heard on credit report jingles and seen on commercials, there is only one place to get a completely free credit report. By law, at your request, the three credit reporting agencies, Equifax, Experian and Transunion, have to provide you with one free credit report every 12 months. Credit Report About Credit Reports A credit report is a collection of your credit history.Each credit agency collects information about...

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How to Restore Positive Information to Credit Bureau File

Positive information on your credit file helps you get mortgages, auto loans and credit cards. Consumers who hit a rough patch, due to layoffs or a drop in income, will find it hard to keep up with payments to creditors. Bad credit isn't permanent and you can restore positive information to your personal credit file. Instructions 1 View a copy of your credit report yearly. Go to AnnualCreditReport.com and order a free credit report once a...

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How Long Do You Need an Active Credit Line to Achieve a Valid Credit Score?

Nearly every American adult has a credit score, but few know what it is or why it is so important. Lenders use credit scores to evaluate how likely you are to repay any money they lend you. Scores are computed using factors from your credit history, such as how good you are at making payments, the amounts you borrow, how long you've had credit, how much new credit you have taken on and which types of credit you have used. Why It's Important...

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How Much Does a Car Foreclosure Hurt a Credit Score?

When you obtain a car loan to buy a car, your lender typically requires that you give it a security interest in the car that allows the lender to take the car back if you don't pay the loan on time. This failure to pay back the loan will negatively effect your credit score regardless of how good a credit history you had before it happened. Repossessions A car foreclosure, usually called a car repossession, occurs when a car buyer uses a car loan to buy the automobile and later fails to repay the lender in accordance with the terms of the...

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Why Don't All Three Credit Bureaus Agree?

Each of the three credit bureaus, Experian, Equifax and TransUnion maintain a credit file on you that lists your debts and payment history. It is possible, however, for each credit bureau to assign you a different credit score. Facts All three credit bureaus use the same formula to calculate your consumer credit score. If the information contained in each credit report differs, however, you will be assigned a different score by each bureau....

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Will It Improve My Credit Score if I Consolidate Debt With a Home Equity Loan?

Debt consolidation can seem like a solution to many of your financial problems. It gives you the scenario of trading in several expensive loans for a single cheaper loan that would allow you to be debt-free sooner. The reality of debt consolidation is less rosy. If done correctly, it can save you money and even raise your credit score. For many people, however, a consolidation loan is just one more debt hanging around their necks. Debt Consolidation...

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Can You Stop a Collection Agency From Reporting to a Credit Bureau?

When a collection agency receives a defaulted debt from your original creditor, it has the right to report that debt to the credit bureaus. Collection accounts that exceed $100 have a significant negative impact on your credit rating. In some cases, you can prevent a collection agency from reporting your debt to a credit bureau. Features Many collection agencies use the threat of bad credit as a negotiation tool, by noting that if you pay the debt immediately, the company won't file a report with the credit bureaus. Thus, paying the collection...

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Is It Better for Your Credit Score to Close a Zero Balance Credit Card?

Lose Good Credit Reporting When you have a credit score with no balance, the credit card company will report the card as being current every month, which will contribute to a positive credit score. In addition, your credit score will also benefit because you have a lower debt to available credit ratio. Too Many Cards The Motley Fool warns that the FICO scoring algorithm, the most widely used credit scoring model in the United States, penalizes people who have over seven credit cards. Bottom Line The Fair Isaac Corporation,...

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How Long Does Eviction Stay on a Credit Report?

Introduction The actual eviction is not usually found on a credit report, but the collection action to collect the past due rent is on the credit report and becomes part of your credit history. The actual collection attempt that shows on your credit report is what hurts your credit. The collection action lowers your credit score and can make it difficult to get another rental and other forms of credit, including credit cards or a mortgage. Time An eviction is a civil suit against a person for non-payment of rent. Pursuant to the Fair...

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How to Rebuild a Credit History on Your Own

Living with a low credit score reduces your chances of acquiring a mortgage loan and other types of financing. There are numerous ways to rebuild or establish your credit history. And while some people choose to improve their FICO score with credit or debt management companies, it's possible to raise a low score on your own. The key is identifying factors that reduce your score, and making smarter decisions. Instructions 1 Start a new line...

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How to Improve a Credit Score in 2 Months

There is no magic way to immediately improve your credit score, but there are certainly things you can do in order to move toward raising your score. Don't expect an instantaneous increase, but if you monitor your credit score while aggressively working to improve it, then you will soon start to notice an improvement. Even small increases in a credit score can increase your chances of getting approved for credit at a reasonable interest rate. Instructions...

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Does Paying Judgements Affect Your Credit Score?

Nobody wants to end up in court, defending themselves from a debt collection lawsuit. If you lose the case, however, the creditor that filed the lawsuit receives a legal judgment from the court. Like a bankruptcy, tax lien or foreclosure, a judgment is a public record that appears on your credit report and has a detrimental effect on your credit scores. Depending on when the creditor received its judgment, paying off the debt could protect your credit...

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What Happens to Your Credit When You Get a Charge Off?

If you stop submitting payments to your credit card company on your outstanding card balance, the company will eventually write off the debt. Referred to as a "charge off," this process does not mean that you no longer owe the debt. Rather, it reflects the fact that your credit card provider is no longer willing to carry the liability of your bad debt in its accounting ledgers. A charge off can have severe credit consequences. Significance ...

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Five Factors in the Development of Your FICO Score

If you're like most consumers, you might look at those three digits of your FICO score and scratch your head. You know that the Fair Issac scale falls between 350 and 800, with anything north of 700 considered the elusive "good" credit. Understanding the different categories of your FICO score and how they rank can demystify the numbers -- and help you take steps to improve a weak score and get in the habit of regular credit report checkups. ...

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How Long Does it Take for Inquiries to Fall Off Your Credit Report?

Credit inquiries come from a number of sources. An inquiry appears any time you apply for a new credit card, a car loan or a mortgage or even rent an apartment. Too many inquiries can lower your credit score, but they do fall off your credit report with time. Significance Inquiries are important because they hurt your credit score if you have multiple credit applications in a short period of time. Rate shopping, though, does not lower your...

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How to Build Credit With a Credit Union

Credit unions provide members with the same kinds of products and services that you can obtain from banks. If you have very little credit history or poor credit, credit unions offer certain kinds of accounts that can help you to build your credit. When you improve your credit score, you can obtain credit more easily and pay less to borrow. However, not everyone can join a credit union so before you can start working on your credit you must first find a credit union that you are eligible to join. Instructions 1 Call credit unions in your...

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