Consumer Credit Rating Agencies

Consumer reporting agencies buy and sell personal information about individuals and use it to assign credit scores that rate their credit worthiness. They do not decide whether to extend an individual credit, but, rather, provide the credit score to companies and banks so they can determine if they should grant credit approval. Credit agencies also offer services to individuals pertaining to understanding and maintaining a good credit score. There...

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How to Report to Experian, Equifax and Transunion

Reporting accounts to the three major credit bureaus (Transunion, Equifax and Experian) requires that you open a paid account with all three. Once you have accounts with the credit bureaus, you can submit relevant documentation supporting the existence of outstanding accounts or debts. Anyone submitting such information is bound by the Fair Credit Reporting Act (FCRA) to provide accurate information. Instructions How to Report to Experian, Equifax and Transunion 1 Gather all relevant documentation about the outstanding account or debt. You...

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Average Cost to Get All 3 FICO Scores

The three major credit bureaus -- TransUnion, Equifax and Experian -- and the Fair Isaac Corporation, or FICO, as it is also known, report consumer credit scores. Creditors, lenders, service companies and landlords use your credit score to determine your creditworthiness. Pricing As of March 2011, both Experian and Equifax offer a three-bureau credit report and scores product for $39.99. For $10 less, TransUnion offers a three-bureau credit report and scores product for $29.95. FICO offers a $49.95 credit report and score product that allows...

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California Free Credit Report Law

The Fair and Accurate Credit Transactions Act of 2003 (FACTA) amends the Fair Credit Reporting Act (FCRA) enforced by the Federal Trade Commission (FTC), requiring the nationwide credit bureaus to provide all consumers, upon request, an annual free copy of their credit report. The three major consumer reporting companies, Equifax, Experian and TransUnion, process requests for free annual credit reports at AnnualCreditReport.com. These Acts, being...

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How to Clean Up Your Credit in Illinois

According to Illinois Attorney General Lisa Madigan, it is possible to repair your credit in Illinois, but do not expect overnight success. Citizens can take control of their finances by seeking help from local nonprofit credit counseling firms and engaging in their own credit repair. Madigan advises against the use of so-called credit repair firms, charging up to $1,000 or more for their services. Instructions 1 Visit Annual Credit Report...

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What Consumers Need to Know About Credit

Whether you realize it or not, your credit history has a significant impact on your life. When you apply for a credit card, loan, rental property or insurance, businesses will evaluate your credit information before approving your application. Certain employers even check applicants' credit reports. By staying informed about credit and how it affects you, you can make the best decisions possible for building a maintaining a positive credit history....

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How Quickly Does a Credit Score Go Up?

Your credit score is a constantly fluctuating number between 300 and 850 that credit reporting agencies assign to you based on your credit history, and which lenders use to evaluate you as a borrower. Seemingly harmless activities, such as applying for new credit, can lower your score, and it can take years to recover the lost points. The good news, though, is that you can raise your credit score using proven methods. Understanding Your Score When you apply for new credit -- such as an auto, mortgage or school loan or a credit card -- the...

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How to Raise a Credit Score 200 Points

A low credit score makes it difficult to buy a house or get a loan for school. Your low credit score can even prevent you from getting the new job that provides the income to get out of debt. So how do you break the cycle of debt and raise your credit score? You can raise your credit score by as much as 200 points with research and an understanding of credit ranking. Your credit score will improve if you work with your creditor, pay the bills on time and lower your debt. Instructions 1 Obtain a copy of your credit report. Purchase a 3-in-1...

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Do Inquiries Hurt Your Credit Score?

Lenders, employers, insurance companies and landlords all have good reasons for wanting to review your past credit history. Whenever a business requests a copy of your credit report from the credit bureaus, a credit inquiry appears within your file noting the request. In some cases, credit inquiries can damage your credit scores. Soft Inquiries Soft credit inquiries are those that, although recorded in your credit file, do not affect your credit scores. Employers and insurance companies conduct soft credit inquiries. Whenever you pull your...

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How to Subscribe to Credit Bureau Reports

Check your credit bureau reports regularly. Three credit reporting bureaus offer the reports: Equifax, Experian and TransUnion. Credit bureau reports may vary, so its best to have access to all three. You can monitor for errors and look for ways to improve your credit rating. You can get free or reduced price credit bureau reports on a trial basis. To continue to check your reports, you will need to pay a subscription fee. Instructions 1 Apply...

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How to Improve Your Credit Score in Three Business Days

Improving a low credit rating doesn't typically occur overnight or within a few days. Creditors update individual credit files, and a consistent routine of paying bills on time and keeping debts low results in a better rating over time. However, there is a way to quickly boost a bad rating. Some creditors offer rapid rescoring, wherein they'll update your credit file immediately if you detect an error or pay off your balance. Rapid rescoring benefits anyone who needs an immediate credit score boost to qualify for financing. Instructions 1...

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Credit Checks & Identity Theft

Identity thieves use your personal identification to impersonate you in various financially damaging ways. They do everything from opening credit accounts to obtaining identifying documents in your name to using your Social Security number for employment. Credit checks can tip you off when someone has stolen your information. You can then prevent future credit checks for fraudulent accounts. Definition There are two main types of credit checks....

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Does it Hurt Your Credit Score When a Store Cancels Your Card Due to Inactivity

If you have credit cards that you haven't used in years, you may one day find that your account is closed due to inactivity. Having an account closed by a creditor can be a nuisance if you are in the process of building your credit. When your store card is canceled, this can result in positive and negative impacts on your credit. Positive Impacts Your credit score is determined by five major factors: payment history, amounts owed, length of credit history, types of credit and new credit. When a creditor closes your card due to inactivity,...

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What Steps Should You Take to Rebuild Your Credit After Bankruptcy?

Bankruptcy is sometimes inevitable when a person has no other way to meet financial obligations. It provides debt relief, but looks bad on credit reports, because lenders see it as a warning that the person may not be fiscally responsible. There are certain steps that help repair the damage over time. Definition Consumers usually file Chapter 13 or Chapter 7 bankruptcy. Chapter 13 means the creation of a repayment plan that runs from three to five years, while Chapter 7 wipes out most outstanding debts completely. Both pull down credit...

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What a Credit Rating Score of Excellent or Good Means

When you apply for a car loan or mortgage, your lender will most likely run a credit check on you. You may be given your credit rating as "excellent," "good," 'fair" or "poor," while not being given your FICO or credit score number. In order to understand the meaning and financial implications of your credit rating, you must take into account and understand your credit score number, your credit history and the methods used to calculate your...

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How to Run a Credit Check on a Person

If you're lending someone money or letting an apartment it makes sense to want to perform a quick credit check first to get a payment history. After all, how someone has paid off creditors in the past is a good indication of how they will make payments in the future. Running a credit check on someone is not difficult but you will need the right information. Instructions 1 Review the Fair Credit Reporting Act or FCRA (15 U.S.C. 1681). This requires written consent before seeking the credit report of an individual. 2 Obtain his Social...

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FICO Credit Score Calculation Information

The FICO credit score uses an algorithm created by the Fair Isaac Corporation to convert your financial history into a three-digit number that represents the risk you pose to lenders. The better your score, the more likely you are to be approved for a loan with favorable terms. Factors The FICO score uses five weighted factors. How you've paid your bills accounts for 35 percent of your score. How much you owe accounts for 30 percent of your score. Your length of credit counts for 15 percent of your score. Your recent applications for new...

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How Fast Do Credit Scores Decrease?

Credit scores are a like a stream of water--fluid and ever changing. Throw a big rock in it and you will see a big splash. When negative information hits a credit report, it can be a huge wave or a small ripple. What is certain is that your score will drop immediately if you have new negative data. Identification You usually do not see a decrease at all in your credit score unless you miss a payment or apply for credit. If a negative item or account hits your report, the score decrease will be immediate, because the FICO score is biased...

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Does Your Cable Bill Affect Your Credit?

A credit score is an extremely important part of an individual's financial identity. The importance of a credit score understandably makes many consumers wary about being late on mortgage and car payments, but there are many who also worry about everyday bills, such as cable and utility bills. While the latter type of bills are not as directly tied to your credit score, they can still affect your credit. Credit Rating For lenders, a credit...

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Is Your Credit Score Affected When You Run It Yourself?

Most of the financial decisions you make in your adult life influence your credit score. Say you apply for a new credit card, or ask your current creditor to increase your available credit limit. The credit bureaus will add that information to your credit report and use it to decide on your credit score. But, some things do not have an effect, such as pulling your own credit score. Your Credit Score The credit bureaus use information from your credit report to factor your credit score. All of the information in your credit report goes into...

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Are Bank Accounts Listed on Credit Reports?

Bank accounts can be a good representation of how responsible you are, but they do not show up on credit reports. This does not mean that bank accounts cannot affect your credit score or creditworthiness. A poor banking history could give banks good reason to reject future applications for an account. Identification Credit agencies leave bank accounts off credit reports because they do not correlate to whether a person is more or less likely...

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How to Get Rid of Triple Advantage

Triple Advantage is a program offered through FreeCreditReport.com. Triple Advantage allows customers to see information from all of their credit reports for free within the first 7 to 9 days. However, if you do not cancel your account before the trial ends, you will be automatically charged for membership on a monthly basis. Since few people want to continue this service long term, it is important to get rid of Triple Advantage before you are billed...

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How to Fix a Credit Score Legally

You may be desperate to fix your credit score when it's low, but the Federal Trade Commission (FTC) warns you must beware of scams. Deceptive companies offer to raise your score for a price. They take your money and do nothing or try illegal tactics that can get you into trouble. Fortunately you can fix your credit score legally on your own by exercising your rights under the federal Fair Credit Reporting Act. Your score will go up if you follow...

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How to Add Rent Payments to a Credit Report

Your credit report shows a detailed history of your financial past. Creditors report your payment history, how much credit you have available and your total debt. Not all creditors report your information to the credit bureaus, especially small and private companies, such as your landlord. However, you can request your landlord add your rent payments to your credit report, which could increase your credit score. Instructions 1 Collect copies of personal checks or bank statements that prove your history of rental payments. 2 Ask your...

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How to Fix Your Credit With Clark Howard

Clark Howard is the host of the Clark Howard Show, a nationally syndicated radio program dedicated to saving money and fiscal responsibility. One problem he has advised his listeners on in the past is how to fix their credit scores. Clark has mentioned that improving your credit score requires a combination of things that are ultimately very easy to do. Among them are paying your bills on time, finding out your credit score, and correcting possible errors on your credit report. Instructions Finding Your Free Credit Score and Checking for Errors...

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Does it Affect Your Credit Rating When You Close a Credit Card Account?

Your FICO credit rating gives potential lenders an idea of how you repay debt and what kind of financial risk you may be. All aspects of your credit history, including closing a credit card account, can affect your credit rating. Effects Having too many credit card accounts can hurt your credit rating. But closing an account can never raise your credit rating, and will lower it in most cases, according to MSN Money. Available Credit ...

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The Credit Risks of Entering a Debt Management Plan

If you struggle with debts you can't manage on your own, credit counseling is an option. Credit counseling organizations may use debt management plans to help you get back on your feet financially. Through a debt management plan, your credit counselor works with your creditors to lower balances, eliminate fees or reduce interest rates. Each month, you must pay a preset amount to the credit counseling agency, which then distributes payments to your creditors. In certain cases, however, debt management plans can prove detrimental to your credit rating....

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What is an A1 Credit Rating?

The term A-1 or A1 credit is a rating of financial strength of companies and other entities issuing bonds and other forms of debt. The exact meaning of the term varies, but is a general indication of financial strength. Standard & Poor's Standard & Poor's uses the term A-1 when rating an insurer's ability to meet debt obligations in the short term. A-1 indicates that the insurer has a strong ability to meet its debt obligations. A-1 is the highest rating that Standard & Poor's issues for short-term debt. Moody's Moody's...

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How Long Can Credit Information Remain on a Credit Report?

For many individuals, credit is an important part of life. Before financing is extended, credit reports and credit histories are checked. The information that is on those reports will be used to determine whether or not an individual is creditworthy enough to have credit extended to them. For this reason, it is important to check credit reports on a periodic basis to make sure that the information on them is accurate and not out-of-date. Significance...

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How Much Does a Missed Mortgage Payment Affect a Credit Rating?

Missing any credit payment will negatively impact your credit score. However, missing mortgage payments can have a larger and more profound impact on your credit history. Significance Timely payments make up more than one-third of your total credit score. Missing or falling behind on a mortgage payment can decrease it by as much as 100 points, according to MSN Money writer Liz Pulliam Weston. Effects Late or missed mortgage payments can be hard to reconcile because your lender will charge you late fees and penalties. If you continue...

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Does an NSF Affect Your Credit?

An NSF check is a check written on an account that has non-sufficient funds to cover the check. Banks may refuse to open a new account for you because they use a service called ChexSystems, which reports such activity. Lenders check with the Experian, Equifax and TransUnion credit bureaus, which do not directly report NSF checks, but your credit may still be affected indirectly. Credit Reports Your credit reports show all your current credit-related accounts and old accounts going back at least seven years. Entries include branded credit...

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What to Do About Wrong Information at Credit Reporting Agencies

Your credit report reflects every aspect of your credit management, good and bad. So if any information is wrong and reads negatively on your credit report, you may have a hard time obtaining a mortgage, car loan or even getting a new job. The Fair Credit Reporting Act allows consumers to dispute incorrect information on their credit reports, and in turn the reporting agency must review your request within 30 days. Process Write an explanation...

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How to Get Arrears Off of a Credit Report With a Modification in Pennsylvania

The Pennsylvania Department of Public Welfare Bureau of Child Support Enforcement collected and distributed $1.38 billion in payments owed by noncustodial parents in the fiscal year that ended Sept. 30, 2010. Another $1.13 billion in payments were in arrears, or overdue. If you are in arrears, your county's Domestic Relations Section will report your past-due balance to credit reporting agencies until you pay or prove the report isn't accurate. A...

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What Does No Information in a Credit Bureau Mean?

The only way to establish a credit history is to apply for and use credit. If you don't have a history of using credit, you won't have a credit report. Without a credit history, you may find it difficult to make major purchases, such as a home or a car, making establishing credit a wise financial move. Credit Bureaus and Reports Credit bureaus are receive and keep track of information about your use of credit. Many businesses submit information about your applications for credit, your payment history, and your credit limits to these bureaus....

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How to Report Changes to Credit Bureaus

A credit report is a summary of your financial history--current and past credit accounts, how much money you have borrowed and how well you pay your bills. Many lenders and merchants use credit reports to determine an applicant's creditworthiness. So, it is important that your credit report contains accurate information at all times. However, it is up to you, the consumer, to make sure that your credit report is up-to-date. Learn how to properly...

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How to Rebuild Credit After a Chapter 7

The filing of a Chapter 7 bankruptcy is a way a consumer can eliminate his debts to the detriment of his creditors. To rebuild credit is to ask new creditors to give you another chance; however, your bank may not agree to assume any risk on your behalf. The beginning stage of rebuilding credit after Chapter 7 requires credit cleanup, time, diligence and money. Instructions Rebuilding Credit After a Chapter 7 Bankruptcy 1 Go to annualcreditreport.com and request your yearly free credit reports. Read through these to make certain all accounts...

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What Happens to Your Credit When Your Car Is Repossessed?

If you can't afford to pay cash for a car, then you may consider taking out an auto loan to cover the costs. A loan is a credit-based transaction and how you handle that credit obligation will appear on your credit report. Failure to make payments on a car loan can lead to a repossession, so it's helpful to learn how a repossession affects your credit. Identification When you obtain a car loan to purchase a vehicle, the car serves as collateral for the loan. The lender of that loan expects payment based upon the agreed-upon terms. If you...

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Does Credit Restoration Work?

A credit score is a vital statistic for any American in modern times. More than just a risk analysis for creditors, your score could determine whether you get a job and how much you pay for utilities, a cellphone and cable service. You may have noticed ads for credit restoration services that promise to clean your record. These can work, but are not necessary to rejuvenate your credit score. Credit Restoration Basics Credit restoration works, and legitimate credit repair companies have a few weapons at their disposal to help you out. The...

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Why Are My Credit Scores So Low?

Your credit report and subsequent credit score reflect your lending and payment history. While more severe financial setbacks -- such as bankruptcies, foreclosures and charge-offs -- may lower your score significantly, credit bureaus calculate your score based on numerous factors over years of lending history. Additionally, damaging information hits higher scores harder than lower credit scores that already reflect past financial difficulties. Payment History Your payment history influences credit scoring more than any other factor. Late...

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