How Do Companies Use My FICO Score?

Determining the credit worthiness and potential risk of a credit applicant is the major function of a credit score. This little three-digit number carries a lot of weight. Employers use the score to determine the financial risk of job applicants while utility companies use the score to set deposit amounts. Although in today's tough economic climate a FICO score is subject to many setbacks, companies still use the score as an indicator of future risk....

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How to Legally Raise Your Credit Score

A borrower's credit score is a direct reflection of credit history. It is a quick indicator to a potential lender of a borrower's willingness and ability to repay debt. Borrowers with the highest credit scores receive the best and most favorable interest rates on loans. It is in the borrower's best interest to have the highest credit scores possible. There are numerous ways to legally raise your credit score. Instructions 1 Visit AnnualCreditReport.com...

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When You Move to Another State, Does Your Credit Report Follow You?

Moving to another state requires you to make many administrative changes, including transferring your vehicle title and registration, getting a new driver's license, paying state taxes and, in some cases, getting a new bank account. However, one thing that does not change with an interstate move is your credit report. National Credit Reports National credit bureaus manage your credit reports, so they are not dependent on which state you live in. Experian, Equifax and TransUnion maintain credit reports that compile all of your credit-related...

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What Happens to Your Credit Due to a Foreclosure?

Your credit rating changes according your financial activities. Your score goes up and down based on accounts you open and close, your loan and credit card balances and whether you pay bills by the deadlines. Major events have a significant and long-lasting impact on your credit score. For example, foreclosure stays on your credit records for seven years, according to the Federal Trade Commission. Definition Foreclosure involves the repossession of a house by a mortgage lender when the borrower defaults on the loan. A mortgage is a form...

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What Credit Score Do You Need to Get a Loan?

Whether you want to buy that house you have had your eye on all year or finally buy your dream car, you will likely need a loan to finance the purchase. Trouble is, your credit history isn't very strong. In fact, maybe it's bad. Maybe you are carrying too much debt or you have a history of late payments. But to get a loan your credit score doesn't need to be top-notch. The difference is that if your score is low, your interest rate will be high....

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How to Remove Credit Report Inquiries Fast

When you apply for a new loan or credit card, the lender checks your credit report to help determine whether or not to issue you an account. Each time this happens, a notation is made on your credit report showing that a lender accessed your credit report. Having several credit inquiries on your credit report in a short period of time can have a negative impact on your credit score and keep you from getting the credit you want. Its likely you want...

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The Three Main Credit Reporting Bureaus in the United States

If you've ever used a credit card, taken out a mortgage or applied for utilities in your name, chances are your lender has taken a look at your credit report. Your credit report contains information about your balances, payment history and the types of credit you have. Credit reports are maintained by each of the three credit reporting bureaus: Equifax, Experian and TransUnion. These companies organize your financial information and make it accessible...

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Is Repossession As Bad As Credit Card Debt on Your Credit Report?

Credit card debt and repossession are both usually bad for your credit, but repossession is much worse. In some cases, credit card debt can boost your credit score. If it comes down to a choice between credit card and repossession, you should almost always choose credit card debt. Ideally, you should not have credit card debt or a repossession on your credit report. Identification Repossession always wrecks credit history, because the lender has determined that you cannot afford the debt and must take back the property. Similar negative...

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Disputed Information on Credit Reports

You have no direct input into the information on your Equifax, Experian and TransUnion credit reports because the bureaus receive data directly from your creditors. They scan public records and court proceedings for additional information. Incorrect data sometimes makes its way into your credit bureau reports. Bob Sullivan of the MSNBC Money website warns that mistakes are present on about 16 to 25 percent of reports. If affected, you may dispute errors to force an investigation. Credit Report Monitoring You are legally entitled by the...

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How Much Will My Credit Score Jump by Paying Off a Credit Card?

A credit score --- or FICO score --- says much about a consumer's credibility to repay loans and manage money. Considering credit cards as plastic loans, how those balances are paid off and whether those cards are used at all weigh heavily on a person's credit score. Maintaining a high credit score is key to securing loans, earning low interest rates on loans, and sometimes even getting a job. Utilization Ratio Using credit reaps rewards...

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How to Improve Your Credit Rating If You Have Insufficient Credit History

According to MyFico, your FICO score ranges from a low of 300 to a high of 850. The higher the score, the better. If you have insufficient, or limited, credit history, you will need to establish new trade lines in order to raise your score. Unfortunately, traditional lenders may hesitate to approve you for new credit. Subprime lenders may approve you for unsecured credit cards but at a high interest rate. There is another alternative, however, that can help you build credit and increase your credit score. Instructions 1 Apply for a secured...

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How Changing Your Name Affects Your Credit

One might assume that if you change your name you could start a new credit history. Changing a name sometimes causes errors in credit reporting, usually due to an oversight on the part of the borrower. Name changes after marriage are common. Changing your name to avoid bad credit is illegal and does not work. Identification Changing your name has no immediate affect on your credit, because the credit bureaus track most of your financial habits via your Social Security number. One of the most common problems arising from a name change is...

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What Is a Good Credit Score for a Home Loan?

So you've saved for the down payment on that new home and you're ready to buy. Now comes the test: Can you get approval for a mortgage? To be approved, you need a credit history that gives you a good credit score for a home loan. This article explains what a credit score is, how it is used and what major lenders and the Federal Housing Administration (FHA) consider a good credit score for a home loan. At the end are tips for how to protect and improve your credit score. Identification There are several credit scoring systems, but the one...

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How to Report Debtors to Credit Bureaus

Credit bureaus function as clearinghouses of information on individuals and companies via reports created from the suppliers' experiences with their customers. If purchasers of credit reports want those reports to be meaningful, they should be supplying their experiences with customers to the credit bureaus. Instructions Begin 1 Choose the credit bureau that has the closest match to your customers to do you and the credit bureau the most good. There are three main credit bureaus that report on individuals: Trans Union, Equifax and Experian....

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What Effects Your Credit Report Score?

Consumers often use credit to purchase large items, such as a home or car. They also make use of credit in purchasing everyday items such as groceries, movie tickets and clothing. How well a consumer manages the debts incurred from the use of credit can have an impact on his credit score. Payment History According to Fair Isaac, the company that developed the FICO system, how well you pay your bills accounts for 35 percent of your FICO score....

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The Negative Effects of Debt Settlement on a Credit Score

Settling a debt for less than its full balance can wreak havoc on your credit score. There are, however, situations when debt settlement does not, by itself, decimate your score. Unfortunately, in these situations, your credit score has already been damaged severely. Settling debts for less than full balance is good news for your bank account, but highly credit score unfriendly, as these arrangements are displayed on your credit report. Debt...

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How to View Credit Reports at a Government Site

Thanks to the Fair and Accurate Credit Transactions Act, every American with a credit history is entitled to a free credit report once a year. With the increase in identity theft and the importance of good credit, it's wise to take advantage of this offer There are many credit report companies trying to claim free service, only to automatically enroll you in a monthly payment. These are unnecessary and some are flat-out rip-offs. Check your credit only at the government-approved website. Instructions 1 Go to AnnualCreditReport.com. Here...

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How to Get Your Annual Credit Report

Periodically checking your credit report is a good idea. There could be old, inaccurate information that can harm your credit and should be removed. You can get a free credit report once a year, from annualcreditreport.com. This website (and it's member sites) are the only ones authorized by the government to issue free reports. Unlike other sites you will not be required to purchase a product or service, such as a credit monitoring service, when you order your report. These types of services charge monthly fees. Instructions 1 Go to annualcreditreport.com...

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What Is the Fastest Way to Bring Up Your Credit Score?

Consumers have the resources to raise their credit scores, either on their own or with the help of a third party. The Federal Trade Commission warns consumers to avoid credit repair scams that promise to fix your credit quickly. Expert Insight "The fact is there's no quick fix for creditworthiness," says the FTC. Bringing up your credit score legitimately requires time, a conscious effort and repaying your debts. The best way to raise a score...

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How to Fix Your Credit by Piggy-backing With Someone Who Has Good Credit

Being added as an authorized user onto accounts of people who have good credit is a great way to quickly establish or repair credit, and does not have the score disadvantages associated with opening brand new credit cards. This is referred to as piggybacking. Though being an authorized user technically means you could use the card, having the main cardholder seize your card and never allow you access to it is a safe way for him to do you the favor of having the established history of his account. Instructions 1 Ask a friend or family member...

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How Do Teenagers Build Credit?

Introduction In the United States, teenagers cannot start building credit until they are 18 years old. This is because until that point there is no record of their credit. However, at the moment they turn 18, it is important to teach them the correct ways to respect and take care of their credit. This will insure that by the time they are ready to move to bigger purchases, such as a house or a car, they will have the necessary credit to do...

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Credit Check Tools

When obtaining your credit report, you need to be careful about giving out your information. The Federal Trade Commission provides guidelines on which sources are legitimate and contain safe tools for keeping an eye on your credit. By utilizing these tools, you will ensure that your credit score is as high as possible. Annual Credit Report The Federal Trade Commission recommends using the Annual Credit Report website to check your credit...

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How to Get Rid of Bad Credit Scores

There are countless ways to reduce bad credit and improve your relationship with creditors or lenders. People with good credit commonly receive quick approvals for mortgage loans and auto loans. What's more, a high FICO score justifies an affordable interest rate, which results in lower payments. But even if you can't qualify for the best loan now, simple changes can help you restore your credit. Instructions 1 Know your credit rating. Before making credit restorations, order a copy of your free annual report from AnnualCreditReport.com....

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How to Raise My Credit Score Fast With Piggyback

Credit is a big deal in American society. Consumers apply for credit when obtaining credit cards, mortgages, car loans and lines of credit. Some employers check credit before extending a job offer. Landlords often check credit before approving a rental agreement. For consumers with low credit scores, one way to increase that score fast is through piggybacking, where a credit cardholder with a high credit score adds another person as an authorized...

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How Often Can You Check Your Credit Report & Score?

When applying for a personal loan, credit card, mortgage or other credit lines, it is important to understand what is on your credit report. Many lending institutions also view your credit score as a way of determining your creditworthiness. Individuals often think they must be denied credit to view their credit report and score; however, this is not true. Free Annual Credit Report Under the Fair and Accurate Credit Transactions Act, or FACT Act, individuals are eligible to receive one free credit report each year from Equifax, TransUnion...

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Does a Co-signer Have to Have a Full-Time Job?

If your credit history is insufficient, or you don't have the income to be approved on your own, a co-signer can assist you by guaranteeing the terms of a lease, mortgage, student loan or car loan will be met. Whether your co-signer is required to have a full-time job depends on the financial institution and/or how much you're borrowing. Credit History The most important consideration in being approved for a loan is credit history. If your credit score is low and you need a co-signer, the financial institution handling the loan will look...

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How to Help My Credit Score

When you are getting ready to apply for a mortgage, auto loan or new credit card, improving your credit score can increase your chances of approval. In addition, people with better credit scores are typically offered lower interest rates than people with bad credit. Although only time will lessen the effects of some negative information on your credit report, such as a past bankruptcy, you can take action to help your credit score through other methods. Instructions 1 Obtain a free copy of your credit report from the Annual Credit Report...

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How Much Does a Judgment Hurt My Credit?

Creditors can seek a judgment against you for failing to pay what you owe. A judgment can significantly hurt your credit profile. If you have a judgment on your credit report, getting it removed is important so that you can start rebuilding your credit. What is a Judgment? A judgment takes place when you do not pay your bills and your creditor sues you. When the lawsuit is filed in the local court system, you have to appear in court or a default judgment will be entered against you. On your court date, the judge will hear the evidence against...

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What Happens to a Credit Score When Co-Signing?

Debt co-signing is a way for those with poor credit to get approved for loans or credit cards by having someone with good credit back their debt obligation. The person with good credit, or "co-singer," agrees to pay the debt if the person with poor credit fails to pay, which gives creditors an extra guarantee that they will be paid. Co-singing can have several effects on credit scores for the co-signer and the person seeking the loan. Credit of Borrower Getting a debt co-signed can be beneficial to the credit score of the person with bad...

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How Long Can a Creditor Report on Your Credit Report After Bankruptcy?

After you file bankruptcy, you generally are not responsible for any of the debt you owed before you filed. As a result, your credit report will reflect your bankruptcy for a number of years, so that future creditors know that you failed to pay your previous creditors. The length of time that a negative item remains on your credit report is fixed, and it depends on the type of delinquency you committed. Negative Accounts If your financial condition was such that you had to file bankruptcy, you most likely missed one or more payments to...

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How to Increase Credit Rating

Before a lender grants credit or loan money, the lender must access credit records. By reviewing a credit report, lenders can determine the probability that the loan or line of credit will be repaid in full. The better the credit score, the more likely you are to get approved for the credit and loans applied for. Your credit also can make a difference when applying for other such necessities as employment or renting an apartment. Improving your...

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Facts About Free Credit Reports

Every consumer has the right to review her personal credit history. Regrettably, some people never order their credit report and are thus unaware of possible inaccuracies. There are several ways to acquire a report, but instead of paying for it, learn how to review your report from all three bureaus for free. What Is a Credit Report? Credit reports are documents that reveal your entire credit history. Opening a credit account qualifies you to receive a credit report; from this point forward, every credit card, auto loan, mortgage or other...

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Who Uses Experian to Check Your Credit?

Effective credit management is critical to financial planning. Interested parties frequently analyze your credit report to gauge your ability to handle credit. Experian is one of the primary suppliers of this information. Identification Experian, TransUnion and Equifax are the three main consumer credit reporting agencies. Experian compiles information related to the type and amount of debt that you carry. Further, the company documents your...

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The Credit Implications of a Short Sale

When you have trouble with your mortgage payment, one of the options that you have to consider is a short sale. Instead of going through a foreclosure, a short sale allows you to sell your property and move out. While this may be a more attractive option than foreclosure, it can also have negative effects on your credit report. What Is Short Sale? A short sale is a process in which you try to sell your house for less than what you owe your mortgage lender. You take care of the marketing with the help of a real estate agent. When a buyer...

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What Counts as an Account on a Credit Score?

Your credit score is one of the main determining factors that determines if you are eligible to borrow money and what kind of interest rate you will receive. Your FICO credit score can range between 300 and 850 points. The higher your credit score, the lower the interest rate you can receive on a loan. Your credit score is determined by evaluating the accounts you have opened. Revolving Accounts Revolving accounts have a different balance...

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How to Acquire Aged Primary Credit Tradelines

Building (or rebuilding) credit is both frustrating and time-consuming. Using any of the "sub-prime" credit card offers can cost you in higher interest rates and fees. With the higher score requirements of banks now, it is harder than ever to get approved for prime credit rates. Aged primary credit tradelines are older, well-seasoned accounts that someone carefully maintained to build great credit. Acquiring those aged credit tradelines before applying...

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How to Reduce a Debt to Income Ratio to Improve My Credit Score

Several different factors impact credit scoring. Having a high debt to income ratio can lower your credit rating, and even disqualify you for a loan. Lowering your debt to income ratio is one of the keys to building a good credit rating, and by lowering your debts, you'll create more disposable income. Fortunately, there are numerous ways to accomplish this goal. Instructions 1 Calculate your debt to income ratio. Collect your credit card,...

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How To Report Attempted Identity Theft

Identity theft is one of the fastest growing crimes in the country. Marsh & McLennan Companies states that nearly 3.25 million Americans have been the victims of identity theft or misuse of personal information. The crime does not just affect the consumer. The FBI estimates that businesses lose over $67 billion annually to computer crimes and identity related incidences. If you suspect any type of misuse with your credit accounts, there are steps...

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