How to Pay Off Several Credit Cards Without a Debt Consolidation Company

In our credit-happy economy, it is easy to run up balances on several credit cards at one time. Between minimum payments, late fees and interest payments, it seems impossible to ever get them all paid back, but you can do it using the debt snowball method popularized by personal finance pundit Dave Ramsey. Instructions 1 Gather the most recent credit card statements for all your accounts. On each one, locate the minimum payment, interest rate and current balance. Write these down for each credit card account. 2 Find the contact information...

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How to Build Personal Credit Fast

Building a positive credit history is an important step to take for your financial future. With a history of good credit, you can qualify for new credit accounts and higher limits. You will also receive the best interest rates and avoid monthly and annual fees on your credit accounts. You can start building credit by opening new accounts and managing them responsibly. Instructions 1 Visit a local bank and to open a checking and savings account. Complete the application given to you and provide the banker with your identity information, such...

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Facts About Credit Scores

A credit score, also known as a FICO score, is a system used by lenders to make lending decisions. Whether you are applying for a mortgage, car loan, student loan or credit card, lenders will want to know your credit score. Higher scores imply lower risks, while lower scores imply higher risks. Credit score calculations are based on your credit history, such as if your bills are paid on time and the amount of open credit you have. History ...

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Is My Credit Score and My Husband's the Same?

Although you and your husband might merge all of your finances when you get married, one thing you cannot merge is your credit history. Because credit reports are tied to an individual's social security number, you and your husband will always have separate credit reports and, therefore, separate credit scores. Separate Credit Reports Your credit score is based on the information within your credit report and your husband's score is based on his credit report. Although you might have some joint accounts, if either of you had credit history...

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How Often Is Your FICO Credit Rating Adjusted?

Consumers use credit for a variety of reasons. To determine whether to give you credit, lenders look at your credit rating, also known as your FICO score. Your FICO credit score ranges from 300 to 850, according to MyFICO, a website run by the company that compiles credit scores. Each score is individual. It's important to know what your score is and how often that score changes. Identification Your FICO score measures five key areas. Of the factors that are included in the score, 35 percent measures how well you pay your bills, 30 percent...

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What Happens When Bankruptcy Comes Off Your Credit Report?

It can take up to 10 years for a bankruptcy to leave your report, so it will be a momentous day for your credit history when it does happen. However, the joy might be short-lived, because the short-term effect of a bankruptcy leaving a credit report can be a drop in your credit score. Eventually, however, expunging a bankruptcy will improve your financial profile. Identification From a purely technical standpoint, when a bankruptcy comes off your report the credit agencies can just no longer report to it to lenders, even though the record...

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Do Collections Go on My Credit Report

Collection agency accounts are extremely harmful to your credit score, according to the MyFICO scoring website, because they are part of your payment history, which makes up 35 percent of the score total. Collection agencies report to the TransUnion, Equifax and Experian credit bureaus, so lenders and others who review your credit reports know you are being pursed by debt collectors. Reporting Some bills, like credit cards and loans, are almost always reported to the credit bureaus, whether you are in good standing or are delinquent. You...

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How to Establish AAA Credit

Good credit allows you to qualify for many different loan products, generally higher limits than lower credit borrowers, and with the best interest rates available on credit products. Getting a credit score to the 700s and 800s takes time and a bit of foresight in the type of credit accounts that you are establishing as you build your credit file. Instructions 1 Diversify your credit accounts. Part of your credit score is calculated by the type of credit accounts you have reporting on your credit report. Credit cards, store cards, mortgages,...

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How to Remove All Negative Accounts Off My Credit Report in 30 Days

Remove all negative entries from your credit report within 30 days? That's easy--as long as the information is inaccurate. The Fair Credit Reporting Act requires the nationwide credit bureaus to remove inaccurate information within about 30 days of being informed of the errors. However, there are no provisions in the law for removing negative information that is true--unless the creditor or debt collector agrees to have the credit bureau remove the...

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The Best Selling Personal Financial Books

Everyone can benefit from reading personal finance literature, whether you are just starting out or nearing retirement. Some of the best personal finance books cover important topics such as investing, getting out of debt, building passive income, and taxes, and are aimed at readers from all income levels. The Total Money Make Over: A Proven Plan for Financial Fitness "The Total Money Make Over: A Proven Plan for Financial Fitness" by Dave...

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If I Pay Off Three Collection Debts & They Remove Them From My Credit Report, Should My Score Rise?

Your credit score is based on a variety of factors, such as how long you've had credit and the type of debts your credit report reflects. Collection debts that appear in your credit record negatively impact your credit scores due to their status as derogatory accounts. While paying off collection accounts demonstrates financial responsibility, doing so may not improve your credit rating. Paying Collection Debt A common misconception exists among consumers that paying off collection accounts results in the collection agencies or the credit...

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Federal Laws Regarding Credit Repair

The Federal Trade Commission supports fair trade and financial transactions in the U.S. The commission also regulates and enforces laws regarding consumer credit reporting, working to protect consumers from inequitable credit reporting and deceptive credit repair professionals, as well as provides the tools you need to understand and improve your credit rating. Third-Party Credit Repair Many companies advertise services that guarantee to...

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Information on Spotting Discrepancies on Credit Reports

The Fair Credit Reporting Act requires credit reporting agencies to correct discrepancies consumers find on their credit reports. Finding the errors is up to you and it is very important. A single mistake on your credit report can cause you to be denied a loan, insurance coverage or a job. Accounts The most obvious error to look for is accounts that you did not open. This might be a clerical error or it could be identity theft. Mathematical Errors Watch for mistakes in the math. If you had a $4,500 balance and paid $1,500 of it,...

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Can Unemployment Show Up on a Credit Check?

Ironically, many employers refuse to hire someone drawing unemployment or just unemployed, because they want to avoid desperate people, according to the Huffington Post. When an employer runs a credit check he will not see unemployment payments, but he can draw some conclusions from information of your report that could lead him to believe that. Identification As of 2010, the credit rating bureaus do not show your salary information or where...

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Does it Hurt a Credit Score to Settle Credit Cards?

According to Barry Paperno, consumer operations manager of Fair Isaac, the company that issues FICO scores, settling your credit cards will hurt your credit score. However, just how much your score will be hurt varies, depending on your credit report's condition prior to the settlement. Considerations A settlement on your credit report counts as negatively as a bankruptcy, since in both cases, your creditors did not get paid the full amount they were promised. However, if you have multiple negative items on your credit report, a single...

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Do I Have to Pay a Charge-off of a Debt?

When you fail to payoff a debt, the creditor involved may charge off the debt. Creditors update company records to list bad debts as charge-offs, and this simply means that the creditor no longer includes the debt as an asset in its accounting records. However, you are still under an obligation to repay a debt, even if the creditor charges it off. Types Of Accounts People typically think of charge-offs as involving credit cards and loans, and while many charged off accounts do involve credit products, other charge-offs include deposit accounts....

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Vantage Credit Score Vs. FICO Score

Lenders will look at your credit score before approving you for a new credit card or loan, increase your credit limit or offer you a lower interest rate. In the past, lenders had one option for credit scores, the FICO credit score. Now, lenders can pull either your FICO credit score or your VantageScore. These credit scoring models have several differences. Number Grade Both the FICO credit score and the VantageScore give consumers a three-digit numerical score. The FICO credit score reaches 850 while the VantageScore number grade reaches...

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Ideas on How to Fix My Credit Score

In the United States, a consumer's credit score can affect his ability to qualify for a mortgage, car financing and even credit cards. Your credit score can even affect how much you pay for other things like an auto or home insurance policy. A good credit score is generally above 720. If your credit score doesn't measure up, you can start doing things now that will fix your credit for the long haul. Settle Up Fix your credit score by paying...

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What Determines Your Credit Score?

Your credit score is one of the most important numbers in your life, and it is absolutely critical in managing your personal finances. Throughout your adult life, you will see this number influence major financial decisions. Five factors are used to determine your credit score. Payment History Payment history accounts for the largest portion of your credit score, at 35 percent. This is your track record on paying your credit card or loan bills in a timely manner: whether you've paid on time, were late even just once or were sent to collections....

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Credit Repair Concepts

Despite the promises of some credit repair companies, cleaning up negative credit isn't magic. Items in collections will remain on your record for years. And paying bills on time is the only certain way to repair credit. The steps you can take to improve your ratings such as disputing errors and rearranging your credit take time and a lot of paperwork. But, they're not difficult to do and you can save money if you tackle these chores yourself. ...

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Free Credit Score Tips

Keeping tabs on your credit score is an important part of financial management. Credit scores are based on your credit information, such as whether you have made debt payments on time in the past and how much debt you hold, and can determine whether lenders will approve you for loans and credit. Consumers can order free credit reports from credit agencies which contain the credit information lenders use to calculate credit scores. Ordering Reports There are many credit companies that offer credit reporting services, but certain companies...

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Five Factors Used in Determining a Credit Score

Your credit score is a major factor lenders use in determining whether to offer you credit, such as loans, mortgages and credit cards. The score calculated by the Fair Isaac Corporation (FICO) is most widely used by lenders. Even though the exact FICO algorithm is not released by the company, it does reveal five general categories used in the credit score formula. Understanding these five factors may help you make better decisions that affect your credit score. Payment History The largest factor affecting your credit score is your payment...

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Is My Credit Ruined By a Money Judgment?

Your credit rating results from the interplay of many factors, all of which are related to your credit use and money management. Some actions have a mild negative effect, like an occasional late payment, while things like bankruptcy make it very hard to get loans, cell phone contracts, utility service or new credit cards. A money judgment also deals a bad blow to your credit. Definition A money judgment results from a creditor's lawsuit when you do not pay a bill. Judgments stem from things like bad checks, unpaid loans or credit cards....

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How to Build a Credit History as an Expat Canadian

When a lender in America pulls an individual's credit history, he does so by using the individual's name and Social Security number. Canadian citizens are issued Social Insurance numbers rather than Social Security numbers. As a result, even though Canada uses the same credit bureaus as the U.S., American lenders are unable to pull a Canadian credit report. Canadian citizens living in the United States need to build an American credit history in order to be approved for mortgage or vehicle financing, credit cards and some forms of insurance....

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The Effects of a Home Foreclosure on a Credit Rating

The effects of a home foreclosure on a credit rating can typically drop a FICO (Fair Isaac Corporation) score by 200 to 300 points. If you have a "good" credit score of 710, it could plummet to 410. Effects Although the effects of a home foreclosure on a credit rating are negative, they are not irreparable. A home foreclosure on your credit history can result in future rejections for loans, credit cards and employment, and much higher interest...

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How to Get a New Excellent Credit File

You have three separate credit files because there are three national credit bureaus, each of which keeps its own records on you. The files should be similar because TransUnion, Equifax and Experian all collect the same type of data. The Federal Reserve Bank of San Francisco advises that they collect information on your credit account balances, whether you pay bills on time, available limits and court actions related to your finances, like judgments and bankruptcies. Negative items hurt you, but they do not stay in your file permanently so you...

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Can a Collection Agency Claim Affect My Credit Score?

Your credit score measures your past credit activity. It factors in your repayment history, credit applications, number of credit lines and length of credit history, among other factors. Collection accounts will lower your credit score. Significance Collection accounts are considered negative items on your credit report and will reduce your credit score. The actual number that your credit score will drop depends on a variety of factors, including the number of collection accounts you have on your credit report, according to Privacy Rights....

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Does a Secured Card Show As Secured on Your Credit?

Secured credit cards --- a normal credit card account backed by a security deposit --- might be your only choice to build credit after a bankruptcy, or to start building credit for the first time. These function like a credit card, so there should be no indication on a credit report of the security deposit. However, it never hurts to be sure. Identification Although secured cards are less risky than a regular, unsecured credit card, they still show up on a credit report as a normal credit card. The issuer of a secured account usually puts...

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What Are Trade Lines on a Credit Report?

Creditors report information about their customers or borrowers to credit reporting agencies using trade lines. A trade line will include all of the information about the credit extended by a lender. Features A trade line will include the name of the creditor, the balance, opening date, date last paid, credit limit, and the credit rating. Identification Trade lines also indicate the status of an account. You can tell if an account...

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Information to Fix My Credit

Your credit score is a vital component of your financial life. You may not realize its use, but your credit report and your resulting credit score affects the type of mortgage you can get and the amount of interest you will pay on the loan you need for the car you want. If your credit score is low, you can take steps to fix it. Fixing Errors If you'd like to improve your credit score, first get a copy of your credit report. This can be ordered from the major bureaus, TransUnion, Equifax and Experian. Once received, review it for any errors...

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How to Receive a Free Credit Score Report

The best way to keep track of your credit score is by viewing your credit report, which can cost money depending on how often you view it. It's no secret that there are lots of companies offering free credit reports, but many of them are just trying to lure you into signing up for their paid service. What many people don't realize is that the three major credit-reported companies, Equifax, TransUnion and Experian, are required by the Fair Credit Reporting Act to give you a free credit report once a year. There are a few different way you can request...

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Is the Use of a Credit Score a Valid Screening Criteria for Employment?

Forty-seven percent of employers perform credit checks on at least some jobs in their company and 13 percent do this for all employees, according to a 2010 Society for Human Resource Management study. As of 2010, credit checks are usually valid for screening employment applications. Federal and state privacy laws, however, sometimes prevent the use of your credit history or certain information in it when applying for a job. Identification ...

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Credit Rating Strategies

You can't quickly remove accurate, negative information in your credit files, but you can work on a strategy to improve your credit rating. Credit-scoring models that determine a consumer's credit rating vary, but maintaining a low amount of credit-card debt and a good payment history can bolster your rating in any case. Credit-Card Debt Paying down a mortgage, auto loan or student loan will help decrease your overall debt load, but reducing credit-card debt will likely do more to increase your credit rating. Lenders tend to pay close attention...

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What Is Piggybacking Credit?

Much as the term "piggyback ride" refers to an adult allowing a child to ride on her back, a credit piggybacker uses an established credit card user to help build his credit history. When piggybacking credit, an individual with poor or little credit history can game the credit scoring system to obtain loans and interest rates that he cannot obtain on his own merit by enlisting the help of a credit repair service or friends and family. Process An established borrower will add a piggybacking individual as an authorized user on one of his...

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How Can I Get Settlements Off My Credit Report?

Debt settlement allows you to resolve a debt by paying less than the full balance. The creditor or debt collector will consider the debt paid in full, but your credit report will list the account differently. Settled accounts are listed by the credit bureaus as "settled for less than the full balance." That's considered a negative entry that can cause your credit score to drop. By law, settlements can remain on your credit report for seven years,...

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Does Employment Show Up on a Credit Report?

A consumer's credit report contains more information than credit account listings. The FCRA -- Fair Credit Reporting Act -- allows credit reporting agencies the rights to obtain and sell additional information on each consumer. Employment, public records and spousal information routinely show up on a credit report. Credit reporting agencies have a responsibility to provide each consumer with one free credit report each year, upon request by the consumer. Employment Records Your credit report likely contains employment records from past...

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How to Erase Potentially Negative Items From a Credit Report

It is possible to remove inaccurate, negative information from your credit report. Federal law gives you the right to dispute inaccurate information and have it removed within about 30 days. Negative information that is correct can remain for at least seven years, although you can ask creditors to have it erased. Instructions 1 Get a copy of your credit report from the Annual Credit Report website. TransUnion, Equifax and Experian, the three...

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What Can I Do to Increase My Credit Rating?

You can do plenty to increase your credit rating and qualify for financing. Credit ratings or scores fall within the 300 to 850 range, with higher scores indicating that a consumer is more creditworthy. Building a better rating and keeping a high rating includes following specific guidelines that ensure credit health. Due Dates Watch due dates on credit accounts and loans closely and always submit your payments before this date. Missing a...

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How to See Who Has Checked Your Credit Report

Your credit reports keep track of all inquiries made in the past two years. Inquiries are requests for information from an organization or person. If you've been comparison shopping for a loan and you are approved for one within 30 days, do not expect this to lower your credit score. On the other hand, too many inquiries for credit can lower your score slightly and may flag you as a potential credit risk. Examine your credit reports to find out who...

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Does Credit Affect Getting Utilities in Your Name?

When you move to a new home, you must typically put the utilities, such as water, sewer, cable and telephone, in your name. Even though utility companies don't loan you money, most of them still check your credit report. If you have a history of missed or late payments, utility companies may refuse to grant you an account. Utility Credit According to the Federal Trade Commission, utility companies extend utility credit to consumers of gas,...

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Repossession on Credit History

When you finance a vehicle purchase, your car serves as security on the loan for your lender. In the event that you do not pay your car payment, your lender may then seize your vehicle through a repossession to recover its losses. The repossession will then appear within your credit history. Significance A repossession is a significant negative mark on your credit report and has a derogatory effect on your credit score. Future lenders consider...

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