Credit Score Compared With FICO Score

A credit score is a numerical calculation of a person's creditworthiness, based on information from accounts, such as credit cards, loans and mortgages; public records, such as tax liens or bankruptcies; and inquiries by lenders to view the person's credit. The credit scores that most lenders use are FICO scores, so called because software developed by Fair Isaac and Company produces these scores. FICO Scores The three credit bureaus in the...

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Tips on Building My Credit

Building your credit is a long-term process, but it is a critical part of getting good terms on future borrowing. Your credit score is based on the information found on your credit report and affects whether you qualify for new loans, such as a car loan, mortgage or credit card, and the interest rate you pay on your debts. Educate Yourself If you don't know what goes into your credit score, you have no idea where to start when building your credit. FICO, the company that calculates the credit scores that most lenders use, lists the components...

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How Do I Read My Credit Report National Risk Score?

Credit histories, getting credit and how lenders make decisions can be confusing. From the inside, it's a complex process. From the outside it can be so mystifying as to appear random. The first step in deciphering this process is understanding your credit history. Understanding that begins with your national risk score. Getting the Score You can request a free copy of your credit history from each of the three credit bureaus once per year. Do so by contacting Experian, Equifax and TransUnion individually with a request for your credit...

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What Is So Good About a Credit Rating

Lenders, rental management firms, insurance companies, cell phone carriers and employers are just a few of the entities that judge you by your credit rating. This rating is influenced by your credit use, as reported by the Experian, Equifax and TransUnion credit bureaus, and your credit score, which comes from the report data. A positive credit rating benefits you in several ways. Definition Your credit rating is your perceived creditworthiness, based on information in your credit reports, according to the Federal Reserve Bank of San Francisco....

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What Credit Gets Checked for a Car Lease?

Borrowers with bad credit often turn to car leases, because the common belief is that car dealerships accept any kind of credit history. When the dealership checks a person's credit history, it is usually a credit file kept by either one or all three of the national credit bureaus. The borrower might be able to work around a lack of credit history or bad credit, but without a great credit history, a lease is no guarantee. Identification A credit check refers to a traditional credit history tracked by Equifax, Experian and/or TransUnion...

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Does It Affect Your Credit Score if You Put Student Loans in Forbearance?

A forbearance is a temporary postponement of your student loans. It allows you to place making any payments on hold for a period of time as specified by the lender. Interest will continue to accrue while in a forbearance, which means it will increase the total amount that you owe on the debt. If you have or are considering getting a forbearance, it's helpful to understand if this forbearance will affect your credit score. FICO Scores Your FICO credit score is based upon the credit information contained within your credit report. The score...

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The Best Way to Find Out All of Your Credit Scores

Your credit scores give lenders and creditors a quick assessment of your financial history through a score ranging from 300 to 850. You can expect lenders, utility companies, insurance companies and even some employers to review your credit scores. You may not realize that numerous credit scores exist. While you can purchase these directly from the credit bureaus, the scores you receive arent the ones lenders use most often. Lenders use FICO scores,...

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Do Credit Checks by a Landlord Ding Your Credit?

Landlords often perform credit checks, because your credit history reflects your reliability to make payments. However, this credit check lowers your credit score. Apartment managers can perform a credit check even if you do not specifically grant permission to do so. The effect on your credit is minimal, so you may not have to worry unless you have poor credit. Identification Credit checks by a landlord appear as a hard inquiry and affect your credit score, according to Bankrate. Hard inquiries usually occur when you submit an application...

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What Is a Bad Credit Report?

Credit scores are used by creditors as a predictor of how likely an applicant is to repay his or her debt to the company in a timely manner. This score is just one part of your credit report, which contains information on your use of credit and your employment and payment history. Having a good credit report increases the likelihood that you will be able to secure good credit terms. Definition of Credit Report A credit report contains information...

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How to Check Someone's Credit Report

A credit reports can tell you a lot about people. It tells you if they are responsible with their bills, if they pay them on time, and even where they have lived during their lifetime. That's why many companies are starting to use people's credit report in hiring decisions, loan decisions and even when granting them auto or home insurance. It today's world, knowing how to check someone's credit report can tell you much about their character in a...

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Credit Report Facts

Your credit report is critically important in its ability to help or harm you in making certain financial transactions. It can help you buy a home or car or make those actions nearly impossible. It can make you attractive to employers and insurance companies or cause them to shy away from you. You should learn what credit reports contain and how you can check your own report and exert some control over its contents. Definition The Federal...

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Digging Into Your Credit Report

Your credit report determines if you get approved for new credit cards or loans and what kind of interest rate you get. Creditors report all kinds of information about you to the three major credit-reporting bureaus, Equifax, TransUnion and Experian. You can benefit by checking your own credit report at least once a year. Looking at your report will show you where to improve, what accounts you should pay off and what you did well in the past. ...

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How to Get a Credit Card After Chapter 7 Bankruptcy

Although tricky, obtaining credit after a chapter 7 bankruptcy isn't impossible. In fact, applying for a credit card immediately after a discharge is a key way to begin rebuilding your credit history and bouncing back from a credit mishap. And while you may be unable to acquire an unsecured credit card, several lenders offer prepaid or secured credit cards, which can put you on the path towards a solid credit rating. Instructions 1 Show proof...

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How to Prevent Divorce from Destroying your Credit Score

Signing divorce papers sometimes does not signal the end of your emotional anguish. Among other things, the potential exists for financial ruin. Many have indeed seen the detrimental effects on their credit reports for many years following. To prevent divorce from destroying your credit score, it is important to proactively take a few important actions. Instructions 1 Understand that even if the judge orders your ex to be responsible for a...

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List of Massachusetts Credit Reporting Agencies

Credit reporting agencies are private companies that collect and document an individual or business' use of credit. This credit history generates a credit score used as a rating of reliability for prospective employers, business partners, credit granting institutions, banks, mortgage brokers and landlords. The Fair Credit Reporting Act allows consumers to request free copies of their credit reports annually from the three major credit reporting agencies: Equifax, TransUnion and Experian. In addition to these national bureaus, smaller regional agencies...

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Explanation of Credit Ratings

Your credit rating, or your credit score, is the number that determines how credit-worthy you are. It is used when you apply for new credit cards, or for mortgage loans, car loans and student loans. Landlords and employers may also look at your credit score, or your credit report. There are three different bureaus which store the data and information used to determine your credit rating: Equifax, TransUnion and Experian. These credit reporting agencies receive data from lenders, which is then used to calculate your FICO score (named for the Fair...

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How to Remove Derogatory Credit Remarks From a Credit Rating

Removing derogatory remarks from your credit rating will help your credit score improve, and will help your chances at obtaining any type of financing, an apartment or even a job. So many aspects of life in today's society depends upon one's credit rating. The three major credit bureaus--Experian, TransUnion and Equifax--all assign you a unique credit rating depending on your credit history. By taking the time to remove derogatory remarks from your credit report, you will be in much better financial shape. Instructions 1 Obtain a copy of...

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Debt Settlement's Impact on Your Credit Score for Point Reduction

When your debt situation gets to the point that you consider a debt settlement -- offering a creditor a partial payment to call a debt even -- the impact of a settled account is probably insignificant on your credit score. Debt settlement does the most damage when you go into negotiations with an average or better credit score. If you want to keep as many points as possible, avoid settling, because you cannot predict what effect it will have. Identification The impact of debt settlement or any other negative item is unpredictable in the...

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The Effect of a Revolving Account on a Credit Score

Credit scores are a useful tool that lenders use in determining creditworthiness. The higher the scores, the less likely a person will default on any type of loan or obligation. How a person uses his revolving credit lines has a big effect on scores. Abusive use of credit lines, in which they sit near "maxed-out" condition, will injure scores and effect whether you are approved for a credit request. Your timing with what is going on in the marketplace...

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Important Information About Your Credit Report Order

Lenders will consider your credit report, credit score or both when deciding whether to approve you. By ordering your own credit report, you can see what information the lender sees when making their decision. You credit report contains your personal information and a detailed picture of your past credit history. Free Access Any time a lender denies your application, you can get a free copy of your credit report. The lender must tell you which credit bureau they used in making their decision. Bankrate reports that you have 60 days to contact...

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What Does My Credit Score Have to Be to Be a Police Officer?

Becoming a police officer is often seen as a prestigious and rewarding career option. Like most careers in law enforcement, candidates for the police force must undergo extensive background checks, including a credit check. While there is no specific credit score required to become a police officer, a negative credit history can hurt your chances of being hired onto the force. FICO Fair Isaac Company scores range from 300 to 850, with 700...

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Multiple Credit Checks When Buying a Home

When you are preparing to buy a home, one of the most important steps is to select a mortgage lender and get your mortgage set up. The lender you choose and interest rate you get will affect you for years, so you should shop around and choose wisely. As part of the process of getting a mortgage, lenders may run multiple credit checks to determine your ability to borrow. Effect on Score Every time a lender obtains a copy of your credit report for a credit check, that lender's name appears on the section of your credit report that lists credit...

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How to Fix My Credit Check

Your credit score is one of the most important numbers attached to your name. It significantly impacts your ability to secure new credit, qualify for the best interest rates and purchase houses and cars. If your credit score is subpar, you may be able to improve your score by reviewing your credit report for errors. Since an estimated 79 percent of credit reports contain errors, chances are you're being penalized for something that isn't your fault. Instructions 1 Obtain a copy of your credit report. Go to www.annualcreditreport.com and...

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How to Explain Late Payments on Credit Reports

It happens to many people. You're late on paying a bill for whatever reason. What a lot of people don't realize is how those late payments can have a negative impact on your credit report. Many people go through financial hardships that cause them to be late on loan and credit card payments. Although most of these hardships are temporary, negative entries can stay on your credit report for up to seven years, or 10 years for bankruptcy. Negative items on your credit report can prevent you from getting approved for credit, so you must be able to...

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How to Fix Bad Credit for Free

The Federal Trade Commission states that firms bombard consumers with ads for paid credit repair services, but credit clean-up is free and can be done without any outside help. The Fair Credit Reporting Act allows you to dispute and request the removal of certain negative items. Additionally, you can pull up your credit rating by concentrating on certain financial management practices recommended by the FICO credit score company. Credit report disputes and a sound financial plan are all legal, effective and free strategies to fix bad credit. ...

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Are Credit Repair Companies Legit?

When you've got bad credit, you want to turn it around as quickly as possible. With credit repair companies promising a fast increase in score, it's tempting to contact them for help. It's smart to research ahead of time, though, because most will not be the instant solution that you're looking for. In fact, some are not legitimate at all. Legitimate Companies When you have bad credit due to mistakes in your credit report, a credit repair company can help make the necessary disputes. You can contact the credit reporting companies yourself...

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What Shows Up on a Credit Report?

A credit report lists information about your financial activities. If you apply for a loan, insurance or a credit card, the information will be lodged with the Consumer Reporting Agency (CRA). CRA's (Equifax, Experian or TransUnion) store the files on a huge database, which is kept private unless potential creditors, landlords or employers require the information to ascertain your suitability for credit. Identity Information Your credit file...

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What Is a Plus Score Credit?

A "plus" credit score is used by the credit reporting agency Experian to give customers an idea of where their credit stands. It takes into account the person's current credit, as well as credit history for up to seven years. It is important to remember that the Plus credit score is not necessarily equal to the FICO credit score, which is the standard credit score for most lending institutions. Function The "plus" credit score is a simple representation of a person's overall credit history and is used to give people a general idea of how...

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How Much Does a Collection Agency Ruin a Credit Score?

Credit scoring formulas take various credit-related factors into account, like the number of accounts you have, your available credit lines, account use and payment dates. The "Payment History" category is 35 percent of your score, and it encompasses many things beyond your payment dates. The percentage also includes things like court judgments, bankruptcies and accounts placed with collection agencies, according to MyFICO.com Collection Agency Reporting The Experian, Equifax and TransUnion credit bureaus draw information for your credit...

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What Is the Minimum FICO Score for a Home Loan With FHA?

Ninety-nine percent of the U.S. population met the minimum credit score requirement to receive a Federal Housing Administration mortgage, according to Score Truth. The minimum credit score to acquire an FHA-backed mortgage is purposely low because the agency's directive is to help first-time borrowers acquire a home loan when they would not normally qualify on their own. Not all credit scores will qualify for maximum financing, but most do. Identification As of 2010, borrowers must have a credit score of at least 500 to qualify for an FHA-backed...

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How to Improve Your Credit Score With Effective Credit Report Repair

Improving your credit score is important for obtaining future lines of credit with lenders. There are many different ways to repair your credit report so that you can have the credit score you deserve. Staying on top of your credit is important, and it can be done easily with a little dedication. It only takes a little bit of time, and you can do it without the help of a credit repair company. Instructions 1 Request a current copy of your...

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How Often Are Credit Scores Pulled?

Lenders use credit scores to help determine whether they should extend credit terms to consumers. Credit bureaus such as TransUnion, Experian and Equifax provide a three-digit credit score to lenders upon request. Maintaining favorable credit scores could position you to obtain competitive lending terms. Generally, you should know about third-party requests to view your credit report, as your signature is required for a lender to pull your credit....

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How to Rebuild a Credit Rating After Foreclosure

A foreclosure is devastating on many levels, including to your credit. Having a foreclosure on your credit report has a large negative impact on your score and your ability to get credit in the future. However, your credit is very dynamic and the foreclosure, while initially devastating to your credit, will eventually fade and in seven years will be removed. As long as you keep any other credit accounts in good standing, your credit will recover...

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When Is a Credit Repair Company Allowed to Charge an Upfront Fee?

Unscrupulous companies that charged upfront fees for credit repair services led to so many complaints to the Federal Trade Commission (FTC) that the FTC banned this practice. However, some jurisdictions allow a few exceptions to this rule. Also, this does not stop businesses from trying to charge upfront fees, even when it is illegal to do so. Identification As of 2010, provisions in the Credit Repair Organizations Act make it illegal for credit repair companies to charge upfront fees, according to the FTC. Some companies charged customers...

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How to Calculate a FICO Credit Score

The FICO credit scoring system, created by Fair Isaac Company, is the most common method used to determine the creditworthiness of a consumer. FICO provides a number between 850 and 300, which correlates with several factors of your credit history. A credit score of 720 or higher demonstrates that you are a good credit risk, while scores below 660 mean your credit might need some work. FICO score information is provided to creditors on your credit report, which can be obtained from one of three credit bureaus (Experian, Equifax or Trans Union)....

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Can You Build Up Good Credit in 6 Months?

Your credit gets ruined very quickly if you skip a few payments, have a car repossessed, declare bankruptcy or have other negative events happen within a short timeframe. Building up good credit takes longer because lenders want to see enough evidence of financial responsibility to feel confident that you will pay back your debts. You cannot completely fix bad credit in six months, but you can make a lot of progress. Credit Report Cleanup Credit report cleanup is the fastest way to build good credit quickly if there are significant mistakes...

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Do You Need Good Credit to Open a Cell Phone Plan?

Good credit comes from a variety of factors, according to the My FICO credit score company website. The primary factor is making on-time payments, but many lenders and companies look at your account credit limits and balances and the length of time you have used credit. and installment loans. They also consider negatives, including charged off bills, repossessed cars and foreclosed homes, and use the data to make a decision. Qualifications Cell phone providers extend a service to you and expect monthly payments for your telephone use. They...

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How Fast Can I Increase My Credit Score?

Your credit score is a number that tries to quantify your credit history and practices so that lenders can quickly compare and assess you as a potential client. Recent activity counts more than old activity, but pretty much everything is there. So, while good behavior can improve a low score over time, bad behavior shows up for years. Recent Activity The best thing you can do is to clean up your act immediately. Pay all your bills on time, stop relying on your credit card and try to pay off any outstanding balances. Good behavior can start...

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What Is the Credit Score Increase After Deleting a Negative Item?

According to Bankrate.com, seventy percent of consumers have an error on their credit report -- which could cost them a loan or even a job. The credit rating agencies have a system in place for disputing these errors. If an investigation finds an error on your report, your credit score could see a huge increase. Effects Any negative item will ding your credit score. Removing an erroneous negative item will raise your score, but the severity of the error dictates how much of an increase you will see. Eighty percent of credit reports contain...

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