What Is Good on the Credit Score Scale?

Your credit score is your key to loans, leases and other life necessities. In most cases, you need a credit rating of "fair" or better to secure a loan. A "fair" FICO score is 650. FICO Scoring Your credit history determines your FICO score. The Fair Isaac Corporation credit score is determined based on a person's history of defaulting on payments, her current debt-to-credit ratio, the type of debt (student loans versus credit card charges)...

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Do-it-Yourself Elimination of Bad Credit Scores

Credit repair is one of the few projects that make sense to do on your own. Companies or credit repair clinics are an unnecessary expense. Also, by rebuilding a credit history on your own, you gain more experience managing credit, which can lead to a higher score in the future. Rebuilding a credit score is possible; there are no secret tips, just the need to act like a responsible borrower. Check Your Credit Report Pull your report to find out the cause of your poor score. Your report lists all negatives. If you have missed payments, consider...

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Credit Check Help

Credit checks are usually necessary when borrowing money. Some risky, high-interest loans such as payday loans and car title loans do not require credit checks. However, standard loans from banks, credit unions and other traditional lenders virtually always require a credit check. The lender will review information on the credit report and the credit score. Credit Scores Credit scores are three-digit numbers ranging from 350 to 850. Scores of 720 or higher are outstanding and usually lead to quick approval if the borrower meets other standards...

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How Much Does Car Repossession Hurt a Credit Rating?

An individual's credit score, which is intended to rate the likelihood that he will pay off a loan, is calculated using a number of different factors related to the person's credit history. These include the amount of credit he has taken out and his record in paying back these loans on time and in full. A car repossession badly damages this score. Features According to Bankrate.com, when a car is repossessed, a record of the reposition stays on a person's credit report for 7 years, from the date you missed the first car payment that sent...

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How to Make Your Credit Rating Higher

If you forget to make a payment to your credit card company or a defaulted debt you owe ends up with a collection agency, that negative information will subsequently appear on your credit report. Your credit report follows you wherever you go in the U.S., and potential lenders and creditors will all want to review your credit report before conducting business with you. Fortunately, even if you have made considerable financial mistakes in the past, you can improve your credit rating and stop fearing requests to pull a copy of your credit report....

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What Are Negative Things on Your Credit Report That Will Get You Disqualified?

Your credit reports detail your credit-related activity and the manner in which you handle certain financial obligations, such as credit cards, vehicle loans, personal loans and mortgages. The TransUnion, Equifax and Experian credit bureaus include some demographic information in their records, such as how long you have lived at your current address and how long you have worked for your current employer. Lenders like to see residence and job stability, but they pay the most attention to credit use and account repayment. Payment Dates Fair...

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Credit Ratings Explained

A credit score is a number between 300 and 850 that lets lenders know if you're a risky or a responsible borrower. This complex number is derived by a number of factors. The credit bureau determines: Do you pay your bills on time? Do you pay your bills at all? Do you have enough credit? Are you approaching your credit limit? Can you manage a diverse credit portfolio? It may sound confusing to calculate, but you can get a copy of your credit report...

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What Is the Difference in a Plus Score & a Credit Score?

The PLUS score differs slightly from the FICO credit score. The PLUS score was developed to be more consumer-friendly than the FiCO score, which financial institutions use in making lending decisions. Scoring Scales The PLUS scoring scale ranges from 330 to 830, while the FICO scoring scale runs from 300 to 850. Significance The FICO score simply summarizes the individual's credit risk for the lender, while the PLUS score shows consumers the approximate impact that different actions, such as paying down a debt or opening an account,...

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How to Get Collection Agencies to Remove Legitimate Negative Items

Credit scores are an unavoidable part of modern life. They effect what interest rate you get on loans, and whether or not you get a loan at all. A good credit score can save you literally thousands of dollars over the life of a loan. A bad credit score, on the other hand, can cost you thousands of dollars. Repairing your credit after a period of financial hardship can be difficult and time-consuming, but the savings makes it well worth the effort....

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Am I Allowed to Order One Credit Report Per Year?

If you don't know your weaknesses in any given aspect of your life, how are you supposed to improve? In the same vein, you must know your weaknesses as a credit user in order to raise or maintain your score, and this is where credit reports become an essential tool. A credit report lists every bank account and line of credit you've ever had, and monitors your history as a consumer. It judges your creditworthiness based on bill payment history, ratio of debt to credit, number of accounts open, length of credit history and history of bankruptcy....

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How Often Does My Credit Score Change?

Your credit score is a number that is calculated by the credit bureaus based on a scoring system created by the Fair Isaac Corp. Your score is dynamic and can change constantly. When you do something that could affect your credit, it may take some time before the changes reflect in your credit report. When Your Credit Score Changes Your credit score is tied to your credit report and is basically a numerical summary of your report. The calculation of your credit score is based on a number of credit factors. When one of these factors changes,...

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What to Do When You Can't Hook up Utilities Due to Poor Credit

Although utilities rarely show up on a credit report, they are considered a credit account because you receive service in advance of payment. Having poor credit or a bad utility payment history may result in a utility provider denying you service. You can still hook up utilities with poor credit, but you may need outside help. At the very least, the utility company must explain its rejection. Identification Utilities often ask that applicants put down a deposit, usually between $25 and $100, if an applicant has poor or no credit history....

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The Best Way to Mail a Letter to Credit Bureaus

If you have issues that need to be addressed with a credit-reporting agency, you may be able to contact the credit bureau for resolution in several ways. Some of the services that a credit-reporting agency handles include allowing you to opt out of pre-approved offers for credit and insurance products; install a fraud alert; handle a credit dispute; add a security freeze on your credit report; get a free credit report; or purchase a credit-monitoring service. Many complaints, disputes or requests for additional services can be done online, by phone...

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How to Heal Your Credit

It takes a lot more than just a quick Band-Aid to fix your credit situation --- especially if your credit is very poor. You must enact a full-fledged systematic plan for getting your credit in order. Like a bruise or a cut, a bad credit past may hurt and leave a mark; but over time it can heal. Instructions 1 Admit that you have a credit problem -- that is the first and most important step. If you want to heal your credit instead of slapping a Band-Aid on the problem you must recognize and acknowledge the problem to avoid making the same...

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How to Get a One-Time Credit Report

Regularly checking your credit report is advantageous for countless reasons. Identity theft and reporting mistakes can lower your credit score, making it hard for you to obtain financing or credit cards. Staying on top of your credit history is the best way to recognize mistakes early. Fortunately, there are quick and hassle-free ways to acquire a one-time credit report. Instructions 1 Use snail mail to request your report. Draft a letter...

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Are Banks Allowed to Give Credit Reports to Applicants?

When you apply for credit the lender involved normally reviews your credit report as part of the application review process. A lender can use information contained in your report to approve or decline your application. Technically, lenders can share your credit report with you but most lenders do not share credit report information with credit applicants. Credit Reporting The credit reporting bureaus Equifax, Experian and TransUnion have to comply with strict state and federal laws that govern the way consumer credit reports are compiled...

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Foreclosure & Credit Reporting

As if dealing with losing a home isn't bad enough, foreclosure also turns an excellent credit score to average or worse. You cannot hide a foreclosure, and just about any creditor will frown upon this incident when reviewing a credit application. However, you almost always have options that affect your credit less than a foreclosure and some can even save your home. Points it Costs A foreclosure always costs points on your credit score, but your rating before the foreclosure is just as important in determining how many points you lose....

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Can You Have Perfect Credit With No Loan History?

It may seem logical to assume that since you have never taken out a loan, don't have a credit card and never even borrowed money from your relatives, you ought to have a perfect credit score. Unfortunately, it doesn't work that way. If you have no loan history, you don't have a credit score at all, which is a completely different animal than having perfect credit. Credit Score Purpose The purpose of a credit score is to provide lenders with...

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Definition of "Credit Scoring Model"

A mathematical formula used by nearly every lender determines whether you receive a loan for a house or car. The use of credit scoring models are a recent development in the financial world. Today, almost every lender uses the same closely guarded scoring model, although the general parameters are available to the public. History Before the 1970s and 1980s, credit scoring models were non-existent, according the Public Broadcasting Service....

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How Your Credit Score is Affected When You Pay Off a Negative Item

Negative information can turn a good credit score into a poor score very quickly. Paying off accounts with negative information gives you peace of mind and some optimism as you move on from your mistakes. However, these good vibes don't necessarily translate to an improved credit score. Credit Score Basics Your credit score is a snapshot of your credit history. It lists all of your open and closed credit accounts as well as pertinent information about these accounts, such as your payment history, your current and highest balance and any...

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Credit Scores, What Do They Mean?

Credit scores are used by potential lenders to make decisions regarding extension and terms of credit. These scores are determined by weighing different factors of your credit history. FICO Score The most commonly used type of score is a FICO score, named after the company that developed software for the credit-scoring system used to calculate this score. Score Range FICO scores range from 300 to 800. The higher the number, the better...

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How to Improve Credit Scores Fast

Our credit scores are vital nowadays. We need a good credit score for buy a house, a car, and sometimes even to score that awesome job. There is not a magical way to improve your credit score, unfortunately. I've tried! However, with self-discipline, focus, and goal setting, you can be on your way to a higher credit score. Instructions 1 Improving your credit score is something that takes time. I've been able to improve my credit score...

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How Long Does a 30-Day Late Pay Stay on Credit Reports?

Overview 30-Day Delinquencies If you pay a bill late, it could result in a blemish on your credit report. Companies often report late payments once they reach 30 days past due. Because companies typically consider delinquencies in terms of 30-day periods, your credit report may receive additional delinquency notes if your payments remain overdue for 60 days or more. Length of Record A 30-day delinquency may stay on...

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Definition of Fraud Alert

A fraud alert can be placed on your credit report to prevent new accounts from being opened in your name without your consent. By contacting the three major credit bureaus, you can protect yourself if you think you've been a victim of identity theft. Function The fraud alert tells lenders that fraud has occurred or may occur in your name and requires them to take steps to verify identity before extending credit or opening new accounts. ...

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How to Check Credit History in Canada

Checking your Canadian credit history is important. Check it regularly so you can monitor whats in your credit file. There may be errors that need correcting. Errors have a negative effect on your credit. You can also see area where improvements could be made. Disclosure reports by mail are free but do not include your credit score. In order to get a detailed credit history in Canada, a fee is charged. There are two credit reporting bureaus: Equifax...

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How to Compare Credit Score Companies

Credit score companies determine the risk of an individual when giving out almost any type of loan. A high score can lead to paying less interest on a loan and possibly paying less for insurance. Low scores indicate that negative information is present on the credit report. Credit Companies Three major credit scoring companies--Equifax, TransUnion and Experian--each use a slightly different rating system to determine a credit score. In addition,...

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