Advice on Identity Fraud

Identity fraud can happen to anyone; however, taking steps to protect your information can stop you from becoming a victim. The consequences of identity fraud include denials for credit, and it can take several months or years to clear your name and remove fraudulent information off your credit report. Credit Checkups Paying attention to your credit accounts and checking your report regularly helps you catch signs of identity fraud early. Every consumer can acquire free reports each year from Annual Credit Report. Take advantage of this...

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How to Build Credit If No One Will Give You a Chance

Credit is a important part of our consumer-driven society. In most cases, you need a positive credit history to finance a car or a house. It can also have an impact in other ways; many insurance companies use credit scores as a factor in determining premiums. In order to establish credit, you'll need to acquire credit. Most of the time, in order to acquire credit, you need some credit. This is a difficult situation for many people. There is no fail-safe way to establish credit overnight; however, there are a number of things you can do to establish...

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Can Unpaid Taxes Affect a Credit Score?

Your credit score provides lenders with a risk-based assessment tool on which to judge your applications for goods or services. Lenders, however, aren't the only ones that need access to your credit history. Insurance companies, utility providers and some employers also run credit checks on consumers. The lower your credit score, the more difficulty you will have finding financing for large purchases and obtaining new lines of credit. Derogatory entries on your credit report, such as unpaid tax debts, negatively impact your scores. Tax Liens...

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How to Dispute an Equifax Report

Many companies use credit reports provided by Equifax to approve people for loans or credit. Errors can be made on these reports as a result of incorrect reporting or fraud. These errors can damage a credit score and make obtaining a loan or credit difficult. Incorrect items on a credit report can be disputed online, by mail, or over the phone. A dispute is not guaranteed to be successful, but with proper proof most incorrect items can be removed....

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Does a Short Sale Show on a Credit Report?

A homeowner who cannot pay his mortgage may opt for a short sale as a way to avoid foreclosure. A short sale occurs when the property is sold for less than the outstanding loan, and the mortgage company forgives the remaining debt. Homeowners may believe that a short sale will have less impact on their credit than a foreclosure, but in fact a short sale does turn up on your credit report and will lower your score. How a Sale Is Reported When...

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How Does Adding a Home Equity Line of Credit Affect Your FICO Score?

A home equity line of credit (HELOC) can impact your credit score. If you already have lines of credit such as credit cards, adding another line can affect your score. It is important to use the home equity line of credit properly to prevent a drop in your credit score. Poor Credit Utilization A home equity line of credit can appear like a credit card on your credit report. If you spend the entire amount of the credit line, it looks like a large amount of utilized credit on your report. Credit utilization is the amount of used credit compared...

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How to Interpret an Experian Credit Score

A credit report details your financial history, including the balances on all your credit cards and loans and your tendency to pay balances in full when they're due. The Experian credit reporting agency compiles this information to produce a credit score between 300 and 850. The higher your score, the more likely it is that lenders will give you low interest rates when you borrow money. Instructions 1 If your Experian credit score is below...

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Credit Scoring Tools & Techniques

Your credit scores can be an important component of your financial picture. It's an indicator of how worthy you are to potential lenders for credit accounts, and a higher score can save you a lot of money through lowered interest rates. Understanding how credit scores are calculated and learning about techniques and tools for improving your score may be the difference between debt and financial independence. What Makes Credit Score It used to be there was only one main credit score, your FICO score, designed by the Fair Isaac Corporation...

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Pre-Approval Process & Its Effect on Credit Score

Initial credit preapproval has no effect on your credit score because you did not initiate the process. A bank or other lender bought your information from the credit bureaus and extended the offer based on its prescreening. You do cause some credit score impact if you choose to accept the offer because the lender will then do a credit check on you. Definition When a lender orders a list of consumers meeting certain criteria it determines which people qualify for preapproval, Fox Business writer Jeremy Simon explains. The TransUnion, Equifax...

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Can a Private Mortgage Go on a Credit Score?

You sometimes can get a mortgage at a discounted rate if you obtain a private mortgage, but this arrangement rarely improves your credit score. A private mortgage involves a loan agreement between two parties, such as if a parent were to offer a loan contract to a child. This is unlike a traditional mortgage, which originates from a bank or some other financial institution. However, subsequent potential lenders may not accept the payment history on a private mortgage as a legitimate predictor of the borrower's behavior. Identification ...

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Will My Credit Score Go Down From Declaring Bankruptcy?

A FICO credit score ranges from a low of 300 to a high of 850. The higher the credit score, the better. A high credit score can qualify you for a lower interest rate on loans and zero percent interest on credit cards. Negative items on a credit report, including bankruptcy, can impact that score and your financial health. Identification A bankruptcy is a court proceeding that allows consumers and businesses to either repay their debts or eliminate them completely. Five kinds of bankruptcy are the most common. Chapter 7, referred to as...

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What Is a Good Beacon Score?

Beacon scores were the name that Equifax used when it issued credit scores using the older Fair Isaac Corporation scoring algorithm. However, when the scoring model was changed to generate NextGen FICO Scores, Equifax began to call its scores Pinnacle scores. Pinnacle scores are calculated the same way FICO scores are. What is a Good Score? Scores range from 300 to 850, with the highest scores being the best. About 13 percent of the population has a credit score of 800 or more, while about 14 percent have a credit score below 600. The median...

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Lenders Taking Low Credit Scores

The three major credit bureaus use the FICO algorithm, which takes into account payment history, types of credit, debt owed and recency of credit, to determine a person's credit score. Having a good FICO score -- 640 or above according to The Credit Scoring Site -- can be crucial in gaining access to loan financing, including car and mortgage loans. Additionally, individuals with scores below 640 often pay higher interest rates. However, a few loan options are available to individuals with less-than-perfect credit. Independent Auto Dealerships...

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How to Check a Credit Report in India

Your credit report in India is important. It is responsible for opening or closing lines of credit and used by all lenders when assessing your suitability for credit. It is important to check your credit report in India regularly. Your credit report enables you to assess areas where improvements could be made and to get errors, which could be negatively affecting your credit score, rectified. It is only recently that checking a credit report in India...

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What Does a Credit Report Listing a Grid Code G Mean?

Understanding your credit report is an important part of managing your personal finances. Credit reports often appear cryptic, but the various alphanumeric codes indicate important parts of your financial status -- including some, like code G or "collections," that could have serious repercussions if neglected. Consumer Payment History Codes Code G, found in the "consumer payment history" section of an Experian credit report, means that at least one account is in collections. This code is applied if the loan -- possibly a credit card, car...

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How to Get Closed Accounts Removed From a Credit Report

Protecting and improving your credit score is one of the soundest financial courses of action you can undertake---but it requires vigilance on your part. Often, credit agencies don't update information on your credit report quickly or accurately, and it is up to you to ensure that things like closed accounts are removed from your report. It's not difficult to get closed accounts removed from your credit reports, but the process can be confusing. This step-by-step tutorial will walk you through removing closed accounts. Instructions 1 Request...

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How to Raise Your Credit Score Without Credit Cards

It is generally known that if you use credit cards wisely, you can help raise your credit score. However, if you have no credit cards, other methods can be just as effective. You have several other options at your disposal to raise your score. Instructions 1 Pay your bills on time. Your bill paying history impacts your credit score; thus, paying late or having a debt that goes to a collection agency will negatively affect your score. Timely...

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How to Remove Collection Accounts From Credit Report

Every negative item that you are able to remove from your credit reports will raise your credit score. As your credit score goes up, you will be eligible for loans with better interest rates. Collection accounts that are older than seven years will usually be removed from your credit reports whether you take action to remove them or not. Recent collection accounts will remain on your credit report for up to seven years, so it will benefit you to...

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How to Get Your Credit Score by US Mail

Under the Fair and Accurate Transactions Act, U.S. consumers are entitled to one free credit report per year from each of the three credit reporting companies. TransUnion, Experian and Equifax are the only three authorized credit reporting companies. While the free credit reports are available online, it is possible to receive them via U.S. mail. Instructions 1 Visit AnnualCreditReport.com. This is the only website that's authorized by the...

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Removal of Hard Credit Inquiries by a Collection Agency

Hard credit inquiries appear at the bottom of your credit report and are added each time you apply for credit. For example, if you apply for a mortgage, auto loan or credit card, the hard inquiry will appear after the lender checks your credit. Debt collectors do not extend credit and should not be making hard inquiries against your credit. Illinois Attorney General Lisa Madigan reported on her website in July 2010 that everyone has the right to...

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How Long Do Soft Credit Inquiries Stay on Credit Reports?

As you pull a copy of your credit report, you may be alarmed by the number of credit inquiries there. Credit inquiries appear on a credit report whenever a potential lender requests a copy of the report, usually to determine if the lender should extend credit to the individual. Inquires can hurt your credit score, but only hard inquiries do. For that reason, it is important to understand the differences between these inquiries. Types A hard credit inquiry occurs when you request credit from a lender and the lender then requests a copy of...

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How Does Going Bankrupt Affect Your Credit?

The word "bankruptcy" carries a stigma, but this is not always a fair perception. Many people file for bankruptcy because of unavoidable problems like job loss, divorce or serious medical problems. Sometimes it is the only way to handle a heavy debt load, but it takes a toll on a person's credit score. Definition Consumers normally file one of two different bankruptcy types. Chapter 13 is a debt reorganization that lets people keep certain things like their houses and cars. They make a payment plan that spreads the debt over three to five...

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How to Have a Bad Debt Charge Off Removed From Your Credit Report

If you have a bad debt charge off reported on your credit report, you may have to wait it out. First, you can try to take action though. If you believe the report is being made in error, you can contact the credit bureaus. The major credit bureaus all have a process you can use to challenge erroneous reporting on your credit report. This process removes the offending reports and can restore your credit rating. If you believe your debt is valid, you can try to negotiate directly with your creditor to have the charge off removed. Instructions ...

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How Does the Credit Bureau Know My Income to Compare to My Debt?

Credit reports contain information pertaining to the credit utilization of consumers. Credit or FICO scores are not affected by debt-to-income ratios. Credit bureaus gather consumer information and keep records of employment history, but not wages. Lenders gather income information directly from consumers on credit applications and compare it with credit reports to determine debt-to-income ratios. History Equifax began gathering consumer information in 1913. TransUnion became the second major credit reporting agency in 1968 and Experian...

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How to Check Your Credit Score Without Paying

It's good to know your credit score. Lenders check your score each time you ask for a line of credit. The higher your score, the more likely you are of being approved for credit. Check your credit score regularly. Over time, you can track whether your score is improving. If it's falling you can take steps to rectify it. Most credit reporting bureaus charge to access your credit score but it is possible to check your credit score from all three credit...

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How to Obtain a Perfect Credit Score

A credit score can range from 300 to 850, but, according to Bankrate.com, a credit score above 825 is rare. According to MSN Money, lenders offer the best rates to borrowers with credit scores of 740 or higher. Created by the Fair Isaac Corporation, a credit-scoring company, your scores are checked during many transactions, from the setting of insurance policy premiums to evaluation of job applications. If your credit is already tarnished, you may need a longer time to reach a perfect score because late payments and other negative listings can...

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What Can I Do to Build Up Credit?

Your credit score helps lenders to determine whether to approve or deny you credit. The higher your credit score, the easier it is to obtain new credit. If you have a low credit score due to bankruptcy or other financial difficulties, or if you're just beginning to establish your credit history, there are several things you can do to give your credit score a boost. Apply for a Secured Credit Card If you're having trouble getting approved...

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Consumer Credit Reporting Agencies

When a landlord, employer or loan officer asks you for permission to run a credit check, he will usually use the services of a consumer credit reporting agency. These agencies collect information about your financial behavior from numerous sources, including your creditors and court records. Because the information that they collect and provide to others is so sensitive, there are numerous state and federal laws that govern their business practices....

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Easy Ways to Repair Credit

Applying for credit and being denied by a lender often signals a weak credit score. Your credit score says a lot about your ability to manage debt and credit wisely, and lenders use the information in your credit report to determine whether you're eligible for loans, credit cards and other lines of credit. Fortunately, bad credit is fixable and you can repair credit without professional help. Build a Good Payment History Paying bills on time every month is one method of repairing a poor credit history. Lenders and creditors extend credit...

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How Much Does an Eviction Affect a Credit Rating?

A person's credit rating is based on a number of factors that credit rating agencies consider indicative of the likelihood that a loan will be paid back on time. In some cases, your credit rating may be lowered if you have been evicted from your apartment. Features According to the California Tenant Law website, the three major credit reporting agencies, Equifax, Experian and TransUnion, will include an eviction notice on a credit report...

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Does Settling With Debt Collectors Affect My Credit Score?

Debt collectors sometimes try to pressure consumers into settling an account by claiming that doing so will improve their credit rating, and this may be true -- somewhat. A settled collection account probably does not improve your score as much as you think, or it may lower your credit score. In some cases, settling a collection account is unnecessary and has a null effect on your credit rating. Effect The status of a collection account does not matter in the FICO scoring system. Settling any account damages your credit rating a few points,...

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Easy Ways to Bring Your Credit Score Up

Maintaining a high credit score (700 or higher) indicates a measure of responsibility. It takes great strength to resist the urge to use credit cards. With credit, it's possible to fulfill many desires. Uncontrolled spending can lower your credit rating and if you are unable to pay your minimum each month, you'll likely receive negative remarks on your credit report. But fortunately, there are ways to raise a low score. Avoid Delinquencies Improving your payment habits can have a tremendous impact on your credit scoring. According to MyFico.com,...

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How to Improve a Credit Score After Debt Settlement

The credit improving and financial recovery process after debt settlement is much similar to recovering from some of your other major financial problems, such as bankruptcy, foreclosure or car repossession. And while improving your credit score at all three credit bureaus will require a little bit of your money, it will mostly require your time and effort, and time in general for records updates. Indeed, you can start your recovery process during debt settlement but leave your major work until after the fact so that you will not lose focus. Instructions...

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Does It Hurt Your Credit to Prequalify Online for a Real Estate Loan?

Obtaining a loan is a necessary part of buying a home for most people, and it makes sense to shop around for the best terms before committing to one. Prequalifying for a loan online lowers your credit score, but the effect isn't cumulative when you make several inquiries. As long as they are mortgage-related and are made in a short period of time, only one counts against you, and it usually doesn't do much damage. Credit Inquiries Initiating...

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How to Check My Credit History Online

Consumers are allowed one free credit report per year by law, according to the Federal Trade Commission. This free credit report is available on the website AnnualCreditReport.com, which is the only website allowed to give the free credit report. Consumers can quickly and easily access their credit report by providing basic information to the service. This credit report lists a consumer's credit history and provides him with an overview of his financial...

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