Does Medical Debt Cause a Bad Credit Score?

Unexpected medical bills can wreck someone in the best financial shape and ruin his credit for the foreseeable future. This does not always happen, because medical debt is very common among Americans and hospitals are more forgiving, so they may not report your debt. However, you should not rely on the medical provider or credit agencies to give you a break. Identification Ignoring medical bills can drop your score like a rock. Like any other unpaid debt, the medical provider can charge off the balance and report it to the credit bureaus...

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What Is the Best Way to Remove a Paid Tax Lien From My Credit Report?

Tax liens are one of the seven most derogatory items you can have on a credit report, but you might be able to have the credit bureaus remove it immediately. The Internal Revenue Service helps taxpayers improve their credit rating when they settle their debt with the federal government. However, you must pay every cent you owe, even penalties and fees. Tax Lien Withdrawal If you pay off your tax lien, the IRS automatically releases the lien because of a regulatory change in February 2011. Before February 2011, the credit bureaus could report...

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How to Build Your Credit With a Utilities Bill

Building a solid credit history is a key to your financial wellbeing. With good credit, you can get the lowest interest rates and get approved for a car loan and mortgage. However, you don't just wake up one day with good credit; you have to build it over time. One of the easiest ways to do this is by successfully managing a utility bill in your name. Even if the utility provider doesn't report to the credit bureaus, utility payments are part of your FICO Expansion Score, which is used for people with limited or no credit history. Paying your utility...

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How Do I Know What Credit to Expect Based on My Score?

There are general guidelines for gauging your creditworthiness based on your Fair Issac Corporation (FICO) score. But it isn't an exact science. Someone with a 720 credit score but a very limited credit history (say, less than a year) might be turned down for a signature loan, while someone else with a 620 score and a long credit history might be approved. Your credit score is just one factor that creditors consider when evaluating you for a loan....

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Simple Steps to Improving Your Credit Report

When you apply for any loan, the lender will look at your credit report. In addition, landlords and even some employers check your credit prior to doing business with you. There are important steps you can take to improve your credit report and credit score. Know Your Report The first step to improving your credit is to familiarize yourself with the information contained in your credit report. In 2003, Congress passed the Fair and Accurate Credit Transactions Act. Under the law, consumers can receive one free report each year from all three...

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Everything You Need to Know About Credit Scores

Credit scores are numbers that are closely tied to your financial life in a variety of ways. These numbers impact almost everything you do, from determining the interest rate that you pay to helping you get a job. Understanding what these numbers are and how they work is essential to your financial future. What is a Credit Score? A credit score is a number that is calculated based on a formula created by the Fair Isaacs Corporation, or FICO. It is also sometimes referred to as your FICO score. The three major credit bureaus; TransUnion,...

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Credit Information on Hard Inquiries

One of the main purposes served by credit reports is telling creditors whether you are likely to repay a new loan or account. Lenders judge you by your past and present payment performance and current account balances, and they also consider the number of applications you filled out recently. All of these things factor into your credit report and your perceived creditworthiness. Definition Hard inquiries are one of two inquiry types you see when you order your TransUnion, Experian and Equifax credit reports. Lenders check your credit bureau...

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How to Dispute a Judgment on Your Credit Report

A credit report contains information about how you pay your bills and bankruptcy filings. It also contains information about judgments. A judgment appears on a credit report when an individual has lost a court case. In special cases, such as identity theft, the credit bureaus will remove these judgments from credit reporting files. Instructions 1 Order a copy of your credit report. If an inaccurate judgment is appearing on a credit file, there also may be other reporting errors. According to the Federal Trade Commission (FTC), consumers...

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Is It Better to Close an Account for My Credit Report?

Credit cards can be open even if you do not owe any money and have not used them for a long time. The Experian credit bureau explains that such accounts do not have a "paid" status. The balance fluctuates as you use the account, and shows zero if you pay it off. It also shows your available credit line. You may close the account, which changes your credit report information and affects your credit score. Effects Credit card closure hurts your credit score rather than helping it because of the way scores are calculated. The MyFICO scoring...

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The Impact of a Foreclosure on Credit and Employment

A foreclosure can have a ripple effect throughout the rest of your life, even on your employment. At the very least, a foreclosure likely means you cannot obtain credit on reasonable terms for several months. However, you probably can avoid a foreclosure affecting your chances at employment as long as you offer a good explanation for your financial situation. Impact on Credit Score Foreclosure is the second-worst item you can have in your credit history, next to bankruptcy. As with any negative item, the effect of foreclosure on your credit...

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Does Using a Check Card or Debit Card Help You Build Credit?

The primary measure of an individual's creditworthiness is his credit score. A credit score is calculated by credit reporting agencies using financial information found in a person's lending history. This includes information about loans that the person has taken out, as well as his record of repaying them. While the use of a check or debit card will not directly affect a credit score, it may affect the consumer's relationship with his bank, which may lead to being offered new lines of credit. Check and Debit Cards Both check and debit...

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The Meaning of Credit Report Scores

Your credit score comprises a number of factors which summarize your credit activities, including how much money you owe and how timely you are with your payments. A credit score, also known as a FICO (Fair Isaac Corporation) score, consists of a number ranging from 300 to 850. The higher the number is, the better your credit rating. Before you can work to improve your FICO score, you should know the meaning of credit report scores. Credit Scores...

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Does Having a Medical Bill in Collections Affect Your Credit Score?

About half of all collections accounts exist because of outstanding medical bills, according to the Federal Reserve Board. Unpaid medical bills can result in wage garnishment or other public judgment and destroy a credit rating. A medical bill in collections, however, may not hinder future applications for credit,, and you do not have to declare bankruptcy to pay it back. Identification Having any type of account in collections will affect...

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Does Being Denied for a Loan Hurt Your Credit Score?

Being denied credit probably hurts your feelings, but that is pretty much the only thing that happens after a rejection. You could cause significant damage if you refuse to accept that you might have bad credit and stop applying for new loans before rebuilding your score. In some cases, extra applications do not hurt your score and are a good move. Identification A denial for credit does not affect your credit score nor do the credit bureaus track such data. The only harm that comes from applying for a loan and receiving a rejection is...

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How to Improve Credit After a Consumer Proposal

A consumer proposal is a Canadian court-approved program through which your outstanding debts are renegotiated with lenders by a third party. Though a consumer proposal will help immediate financial problems by lowering monthly payments and reducing debt, it will hurt your credit score. A consumer proposal will stay on your credit report for three years, but you can begin improving your credit score immediately by removing inaccurate information...

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Does Paying Off Old Debt Improve a Credit Rating?

Time and responsible actions are the only sure ways to improve your credit rating. With the exception of rapid re-scoring to correct errors and/or inaccuracies in your credit report, there is no quick or easy way to accomplish this task. Understanding that old debt is always bad debt, paying it off can have a positive effect on your credit rating. The Facts Old debt remains in your credit file for seven years from the date of the first delinquency...

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How Time Affects Your Credit Score

A credit score provides a rating based off a consumer's credit report. Most lenders use a consumer's credit score to determine whether or not to extend a new line of credit. Credit scores also play a factor in the type of interest rate a consumer gets on a credit card or loan. Credit scores change with time and include factors such as payment history and debt. Credit Score Factors The credit bureaus take information from a consumer's credit report and divide it into five categories. These categories make up a consumer's credit score. Payment...

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Problems With a Credit Check

According to Bankrate, Inc., "70 percent of credit reports contain serious errors." PT Money, LLC claims the number of errors is closer to 79 percent. Either statistic is alarming when considering how many important life events are affected by credit reporting information. This makes it imperative for consumers to examine their credit reports frequently for errors. Personal Information It is common for personal information to be recorded...

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Does Being a Homemaker Affect Your Credit Score?

The daily tasks of being a homemaker may not require you to handle credit, but this does not mean you have a poor FICO credit score. In fact, you may have a great one. Not having a employer can affect your ability to get certain types of loans, but the credit bureaus can never penalize you for listing your occupation as a homemaker. Identification Occupation does not affect any of the variables in the credit score calculation used by most institutions. At one time, the credit bureaus collected data on salary for credit scoring, but this...

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Employee Credit Checks

The Fair Credit Reporting Act (FCRA) protects consumer privacy and ensures accurate reporting of consumer information. Employers who run credit checks must do so within the confines of FCRA rules. Overall, an employer can run a credit check on new hires and on employees it is considering for promotion and retention. Background Check It is understandable why a company would want to investigate the background of new hires, which is why background...

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Alternative Credit Scores

Credit scores are one of two components of the credit application system, the other being credit history reports; a score aims to produce a snapshot of the overall creditworthiness of the individual. While a system known as FICO dominates, other systems have emerged, either to produce more accurate guidance or to better reflect the standing of people who do not have a detailed credit history. Traditional The main form of credit score in the United States is FICO, named after the Fair Isaac Corporation that developed it. The score is used...

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The Importance of FICO Scores

Your Fair Isaac Corporation, or FICO, score is a number that measures whether you're worthy of credit. The score ranges from 300 to 850 and is determined by a statistical analysis of your credit report. Your payment history, debt ratio and number of accounts open and closed all factor into the final number. A high number means that more credit options including better interest rates, loans and credit cards are available to you. A lower number indicates...

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Information About the Three Credit Bureaus

Credit bureaus record, keep files on and continually update credit information about consumers. When consumers purchase anything by credit card or use other financing options, the credit bureaus record it. When payments are late, the bureaus also capture the information. The credit bureaus make money by selling credit information about consumers. Although there are hundreds of credit bureaus, the three major ones are Equifax, Transunion and Experian. Equifax Equifax, headquartered in Atlanta, Georgia, employs 7,000 people in 15 different...

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Does Closing Small Credit Accounts Help a Credit Report?

Consumers often close small lines of credit because they think it will help their credit rating; instead, this can be very damaging to a credit rating. In general, closing any account dings every category in the FICO credit scoring system. Instead of closing small lines of credit, it is better to use them sparsely to keep them active. Identification Closing small credit accounts damages your score because you may lower the average age of your accounts. In the FICO rating system, the average length of your credit accounts counts for 15 percent...

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Credit Report Dispute Reasons

The Fair Credit Reporting Act protects credit bureaus from having to investigate baseless disputes. However, the Credit Infocenter credit repair website states there are many legitimate reasons for legitimate challenges. You can dispute any kind of mistake, the Federal Trade Commission (FTC) explains, and the item containing it must be taken off your credit report if the lender does not prove it is correct. You may be able to significantly improve...

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How to Fix or Repair Credit

As of 2009, the average American credit score was dropping, and stood at 651. Unfortunately, your credit score determines your ability to do the things you want in life, whether that's buying a car, purchasing a home or getting a job. It is therefore not surprising that consumers are constantly looking for ways to improve their credit score. Fortunately, by following a few simple steps, you can raise your rate to a healthy place. Instructions ...

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Does Financing With a Co-Signer Help Credit?

It is a paradox of lending and credit. You can not borrow money without a good credit history, but you cannot establish a good credit history without borrowing money. It can be a challenge to break through this loop and establish credit. A co-signer can help you in the process. Function A co-signer is a person who guarantees payment on a loan or credit card if the primary borrower does not pay. People usually co-sign for someone who cannot...

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When Should You Discard Mortgage Papers?

It is sometimes frustrating to hold onto paperwork related to bills and personal accounts. It clutters the home and office and makes it difficult to maintain organization. But you may need to keep some items, like paperwork related to a mortgage, handy for a while. Learn rules of thumb when it comes to keeping and disposing of mortgage papers. Types of Mortgage Papers When you close a mortgage, the lending official provides you with a stack of papers in regards to the loan. The paperwork is your signed copy of all closing documents that...

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How to Legally Remove Late Pays on Your Credit Report

When you have a history of late payments on your credit report, it can affect your ability to get new credit cards and loans. It can also count against you when you apply for a job or try to get an insurance policy. While it is illegal to remove correct information from your credit report, you can legally remove negative information that you believe is incorrect. You just need to follow some simple steps with each of the three credit bureaus. Instructions...

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Do Student Loans Affect Credit History?

Your student loans affect your credit history in a few different ways. If you manage the loans responsibly, you can use them to help increase your credit score and help you qualify for bigger loans in the future. The opposite is also true. If you mishandle student loans, you can seriously damage your credit history. Your Credit Report Each student loan you have appears as a separate account on your credit report. Therefore, if you get a federal Stafford loan and a student loan from a private lender each year for four years of undergraduate...

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Does a Prepaid Visa Show on a Credit Report?

Companies offering prepaid Visa cards often market the cards as prepaid credit cards. The marketing may attract people who lack the credit qualifications for a regular credit card. However, a prepaid Visa is merely a debit card. The cards do not offer a line of credit, and do not show up on credit reports. On its website, at the time of publication, Visa makes a distinction between "prepaid and gift cards" and credit cards. Visa points out that some of its regular Visa credit cards are useful for establishing credit, but it does not list that as...

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If I've Never Owned a Credit Card Can My Credit Be Bad?

Credit cards play a large role in determining your credit rating, but other factors are important, too. Your credit rating can be good or bad, even if you have never owned a credit card. Other factors, including account types, financial activities and, possibly, identity theft, can affect how the major credit bureaus rank your creditworthiness. Credit Cards Credit card companies let you borrow as much or as little as you like, up to a preset limit, and expect repayments over time or for you to pay the full balance all at once. These types...

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