Fair & Accurate Credit Transactions Act of 2003

The Fair and Accurate Credit Transactions Act of 2003 (FCRA) added additional requirements to the Fair Credit Reporting Act and provides more federal protection for American consumers. The act does prevent states from making their own stricter laws to protect consumers but strengthens the ability of the states to prosecute violators of the law more easily than they could before the law was passed. Credit Reports The act provides several provisions...

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Why Is My Credit Score Staying the Same?

Your credit score is often the determining factor for loan, credit card and lease approvals. If your credit score is never moving, that's a sign that you are not building your credit correctly. To see changes to your credit score, you'll need to either establish credit or begin using credit more frequently. Credit Score Components FICO credit scores are broken down into five components, all of which determine whether your credit score increases or decreases. Your FICO score is what financial lenders typically look at when considering you...

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Can I Get Collection Accounts Removed From My Credit Report?

Collections activity can damage your credit report and lower your credit score. Lenders use information from your credit report when considering your credit worthiness and the amount of interest you will have to pay when you borrow money. If the credit bureau incorrectly lists a collections account on your report, there are steps you can take to have it removed. If the report is accurate, you may be able to have it removed, but it will be up to the reporting agency. Your Credit Report The Fair Credit Reporting Act provides consumers with...

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Does Student Loan Consolidation Hurt Your Credit?

Student loan consolidation can lower your monthly student loan payment and might even save you money on interest charges. Combining loans might seem like it could hurt a credit score because you lose a few accounts, but it won't do any damage. As long as you keep paying promptly, debt consolidation helps your credit score. Identification Student debt consolidation does not hurt your credit score, according to Student Loan Network. Debt consolidation shifts several loans into a single large account. The consolidated accounts display a paid-as-agreed...

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Can You Get a Foreclosure Off Your Credit Report by Petition?

A foreclosure occurs when a lender files a lien against a property in order to collect payment on a mortgage that is no longer current on payments. Often, the foreclosure process ends with the property going back into the lender's hands. However, foreclosures have another consequence---they can completely wreck your credit score. Borrowers may not have control over these effects, but in some cases, they may be able to improve their credit situation by taking action. Typical Foreclosure Effects A foreclosure is one of the worst things to...

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FICO Scores Explained

FICO scores were developed by the Fair Isaac Corporation in the 1950s. These credit scores are used by lenders when considering whether to offer mortgages, credit cards or other forms of credit to individuals. Significance Your FICO score plays a large part in determining whether you will be offered credit, how much and at what interest rate. Function FICO scores range from 350 to 850, and the higher your score, the more likely you are to be approved for credit at the most favorable terms. Features FICO scores are based...

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Credit Score & Refinancing a Mortgage

When a person wishes to alter the interest rate, the payment structure or another term on his current home loan, he has two choices. With the permission of his current lender, he can modify his current loan. Or he can seek out another loan from his current lender as well as other lenders. This process is known as refinancing. The interest rate a person receives on a refinanced loan will depend in large part on his credit score. Home Loans When a person wants to buy a home, he will often need to take out a loan to make the purchase. To accomplish...

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How to Restore Credit After Chapter 13 Bankruptcy

Having an excessive amount of debt can create a huge financial burden. And oftentimes, it's difficult to make payments to your creditors. A Chapter 13 bankruptcy, wherein a court agrees to reorganize your debt and create a three- to five-year payment plan, can provide a fresh start. Unlike a Chapter 7 bankruptcy, Chapter 13 doesn't erase your debts. Rather, you repay a portion of your debts to creditors, and repayment is based on your current income....

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Can I Improve My Credit Score Over the Course of a Year?

If you know you will be applying for a new loan or credit score about a year from now, focus on improving your credit score now. One year is plenty of time to see major improvement in your credit score. A higher credit score will increase your chance of being approved for the loan and help you get a lower interest rate. Payment History Your payment history makes up the single largest component of your credit score, so focus here to see major improvement. Ideally, your credit report should not show any late payments, bankruptcies or other...

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What Does the Score Mean in Credit Ranking?

Your credit score can determine whether you are approved for an auto loan, a mortgage, a credit card or a cell phone plan. If you do qualify for a loan, your score determines the interest rate. It also factors in to whether you qualify for an apartment and if you can get utilities without putting down a deposit. The higher your credit score, the better it is for you. What Is a Credit Score Your credit score is a tool lenders use to determine whether you are a good risk. Your actual score is a three-digit number calculated by a mathematical...

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How to Lift a Credit Freeze

Placing a freeze on your credit file is a tool used to prevent identity theft. During the time a credit report is frozen, no one can access your credit report without you giving prior permission. Lifting the credit freeze is referred to as thawing your credit file. During the time frame the credit freeze is lifted, your credit report is accessible to potential lenders. Instructions By phone 1 Call the credit-reporting agency with which you...

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A Fast Way to Increase Your Credit Score

Your credit score is critical to getting loans and credit cards and qualifying for affordable interest rates. Your score may need a quick boost if it is borderline and you need to apply for an important account like a major credit card, auto financing or a home loan. You can accomplish some repair work on your credit records if you know how to file disputes and have money to put toward your bills. Debt Reduction High-balance credit credit cards hurt your credit score, but MSN Money columinst Liz Pulliam Weston says that you can increase...

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How to Erase Charge Offs From Credit Report

Charge-offs hurt credit scores because they show that the debtor reneged on a credit agreement. Original creditors close accounts and list them as charge-offs after payments are past due by about three to six months, according to MSN Money. Credit scores drop significantly as the debtor misses payments and again after the charge-off appears on his credit report. There are few options for removing a charge-off. Instructions 1 Visit AnnualCreditReport.com to obtain a free copy of your credit report. Read the report to find the charge-off....

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What Does it Mean to Establish Credit?

You establish credit simply by doing common financial activities like opening bank accounts, starting utility service, using cell phones, obtaining credit cards and financing vehicles. The Experian, TransUnion and Equifax credit bureaus, which are the dominant players in the credit reporting field, and alternative bureaus like PRBC, collect and sell your data. You make it easier or more difficult to get new accounts, depending on whether you establish a good or bad credit rating. Credit Reports Your credit is established through activities...

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How to Improve a TransUnion Score

TransUnion is one of the three major consumer-reporting agencies. These companies keep a record of how well you manage your finances, including the types of credit you've used, your outstanding balances, and payment history. TransUnion has its own method of calculating your credit score, which can range from 150 to 934. According to the TransUnion website, if your credit score is above 700, your credit score is good. But if it's under 650, there's room for improvement. Instructions Boost Your TransUnion Score 1 Keep on top of your bill payments....

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The Effects of Closing a Credit Card on Your Credit Score

Closing a credit card can be a satisfying experience, but before you make any decisions, consider the effect that closing a card will have on your overall creditworthiness. In some cases, closing a card can lower your FICO credit score, which lenders use to determine how financially responsible you are. The lower your FICO score, the less desirable of a customer you will be to banks and lenders. Loss of Positive Credit History If you close...

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How to Obtain Copies of a Credit Report

Your credit report impacts almost all aspects of your life. What appears on the report influences the kind of banking and credit you can obtain, as well as your ability to enter into rental agreements or even be able to get and work in certain types of employment. It is essential that you examine your credit report periodically to look for errors and check the activity included on the report. You are entitled to a free copy of your credit report from each of the three major credit reporting agencies once every 12 months. Instructions 1 Go...

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How to Get My Income or Employment History on Credit Report

Your employment history is updated when you apply for a new line of credit or loan. If you have not applied for a new line of credit or loan and your employment history has changed, you might want to update your credit reports so new lenders and employers have the most current information. According to Credit Builders Alliance, "Lenders rarely rely on the employment section of a credit report to verify employment stability." Instructions 1 ...

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How to Apply for Credit Cards After Bankrupty

During 2009's economy, many people have been faced with unemployment and the inability to meet their monthly bills. As a result, bankruptcy is the only solution for some. Although it may feel like it, bankruptcy is not the end of the world. It is possible to apply for and be approved for credit after filing for bankruptcy. You just have to know which credit cards to apply for and how to gradually improve your credit rating. Instructions 1 Wait until the bankruptcy petition is discharged. Most credit card companies won't entertain offering...

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What Is an Insufficient Debt Experience?

Having no credit history can be worse than having less than perfect credit, because the lender has no way to judge your credit history. If a creditor ever rejects one of your applications for insufficient debt experience, you need to start using debt more often. You also need to use several kinds of debt. The more experience you can show handling debt responsibility, the more likely it is you can get a loan at the lender's lowest rate. Identification Insufficient debt experience means you do not have enough credit history for the credit...

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Can a Used Dealer Sell a Car Without a Title?

Most used car sales transactions go by in a straightforward manner. You arrange financing, sign a bill of sale, pay for the car and receive the title. But in some cases, problems may arise regarding that last step. Issues regarding the car title can cause serious complications when it comes to registering the car and completing the sale legally. Used Car Sales A used car dealership is commonly a fast-paced operation. As is the case with any company that sells tangible goods, one of the dealership's main goals is to sell off inventory as...

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What If I See Inaccuracies on My Credit Report?

Inaccuracies on consumer credit reports are common. According to a survey conducted by the U.S. Public Interest Research Group, 79 percent of all consumers' credit reports contained some form of error. Fortunately, federal law gives you the right to dispute and correct any information within your credit report that you recognize as inaccurate or that you do not recognize at all. Facts All the information within your credit report was provided to the credit bureaus by your creditors. Thus, a small error within a creditor's computer database...

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Can Being Added to Someone's Credit Card Increase My Credit?

Your credit score determines whether you get credit and what interest rate you pay on it, so increasing this score is always in your best interest. One way that you might be able to increase your score is by having someone add you to their credit card account. Being added to a credit card can help your score, hurt it or have no effect at all, depending on a few factors. Account on Credit Report Credit card companies offer two major ways for individuals to share accounts. If you are a joint account holder, you have legal responsibility to...

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How do I Help Rebuild Bad Credit Scores?

When reviewing your credit to see if you're eligible for financing, lenders obtain your credit score from one of the three bureaus: Experian, TransUnion or Equifax. Maintaining a good credit score helps you get approved for loans and credit cards. On the other hand, a low score can trigger a loan denial or a higher interest rate on loans. There are methods to rebuild your credit scores and become a prime applicant for a loan. Instructions 1...

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Credit Check FAQ

When you are ready to apply for that next job, you may be surprised when you are asked to sign a waiver giving the employer the opportunity to check your credit. This may leave you with many questions about just what a credit check entails and what exactly it means to you. Understanding who can check your credit, what they will see and how that affects you will help you make better financial decisions in your future. Who Has the Right to Check My Credit? Your credit history is considered personal, and therefore private, information. Only...

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How to Get a Free Annual Credit Report Online

Consumers within the United States are entitled to a free credit report each year. The Fair Credit Reporting Act requires that national credit reporting agencies provide a free annual credit report to consumers. The credit report contains information regarding your open and closed credit accounts, payment history and inquiries. Experian, TransUnion and Equifax are the three major credit reporting bureaus in the United States. You can request a free annual credit report through a website jointly managed by the bureaus. Instructions 1 Access...

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How to Read & Interpret TransUnion Credit Ratings

TransUnion is one of the three major credit bureaus--along with Equifax and Experian-- that reports your credit and gives you a credit score (also known as FICO score) that helps potential creditors, including credit card issuers and mortgage lenders, determine your creditworthiness and how likely you are to pay back your loans. Not only does your credit score influences creditors to approve or deny your loan application, but it also determines the interest rates they charge your for the loan. Monitoring your credit report and knowing your credit...

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Do Closed Accounts Affect Your Credit Report?

Closed accounts affect credit report ratings, whether the closures are initiated by the consumer or by the creditor. You may wish to close an account for convenience so that you no longer receive statements and creditor information, or the creditor may close an account for nonactivity. The impact on your credit report is the same, no matter how the closure came about. Credit score calculations are all about the numbers; don't negatively impact yours for convenience or inactivity. Credit Rating Definition Your credit report consists of personal...

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Why Does My Credit Report Not Include My Credit Score?

When you are preparing to apply for a loan, you may wish to know what is on your credit report. After receiving your copy, you may be surprised to find that it does not contain your credit score. Even without the score, these reports can be quite helpful in understanding your financial health. How to Get a Report By law, you are entitled to receive a free copy of your credit report from each of the three credit bureaus, Equifax, Experian and TransUnion, each year. The law requires the bureaus to give you a copy of your history, but not...

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How to do Personal Credit Repair

Credit repair has become an essential part of personal finances in today's world. Knowing the ins and outs of how to improve your credit score can help you get approved for the things you need. Learn how to dispute negative items on your credit report to remove them. Your payment history makes up 35 percent of your credit score and improving it will raise your credit score. Instructions 1 Order copies of your credit reports from each of...

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How Much Does Your Credit Score Go Up for Each Negative Item Removed?

Calculating your credit score takes more than just adding and subtracting numbers for each item in your credit report. The effect of negative items can vary with your overall situation, and so can the effect of removing them. If you rebuild your credit after bankruptcy, for instance, the damage may be gone long before the credit bureaus erase the bankruptcy from their files. Credit Scoring Your credit score is based on several elements: Your payment history is most important, but credit bureaus also look at how much you owe, how long your...

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How to Fix Credit With the Credit Bureau

Your consumer credit file is one of the most important aspects of your financial life because lenders see this information when deciding whether to offer you a new loan. Approximately 80 percent of consumer credit reports contain mistakes, and 25 percent contain inaccuracies serious enough that the consumer is denied credit. The Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) give consumers the right to challenge incomplete,...

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How to Find Out if Someone Has Done a Credit Check on Me

A notation is made on your credit report each time your credit is checked. These notations are called "inquiries" and can be viewed by you each time you pull your report. There are two types of credit inquiries. So-called "hard" credit inquiries are initiated by you when you apply for a credit card, mortgage, auto loan or some other type of credit. An excessive number of hard credit inquiries can cause your credit score to drop. "Soft" credit inquiries, which do not affect your credit score, include regular reviews of your credit by your existing...

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How to Clear Negative Credit History

If you have a negative credit history, it can prevent you from getting loans or increase the interest rate that you must pay when you do get a loan. Unfortunately, unless there are mistakes on your credit report, there are no easy ways to clear negative credit history quickly. However, you can, over time, create a more positive credit report, which will put you in a better position. This requires patience and determination, because you may have to make due with less. Instructions 1 Correct mistakes on your credit report. Look over your credit...

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How to Clear Your Credit Report

Every person who has applied for and used credit has a credit report. Credit identification is based on several pieces of information, including social security number, date of birth and employment information. Credit scores are based on credit accounts (credit cards, loans), credit inquiries and collection items (overdue debts). Many credit scoring agencies score these in slightly different ways, which is why the score may differ across companies. Credit reports can often seem confusing and difficult to change; however, there are ways to not only...

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How to Restore Your Credit Easily

Your credit score is all that matters to many businesses and financial institutions. It details your financial responsibility and history, dating back as far as you've had credit. Any time you make late payments or default on money owed, the institution reports it and your credit score drops. Even if you have a low or unsatisfactory credit score, there are things you can do to restore your credit and get back on track without filing for bankruptcy....

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