What Gives Consumers the Right to Accurate Information on Their Credit Report?

An individual's credit report often determines whether she can get a loan, a credit card and, in some cases, whether she is given a job or rented a piece of property. If information on a credit report is inaccurate, it might cause unwarranted rejections or increased interest rates that the applicant doesn't deserve. Congress has passed several acts to guarantee accuracy on credit reports and empower consumers to check and correct their own reports....

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What Would Damage a Credit Score?

You might think paying debt is a good thing that should boost your credit score, but a quirk in the FICO credit scoring model could penalize you for this move. This just goes to show that you never know what might hurt a score. Most of the time, however, commonsense actions do the brunt of any damage, such as missing a payment. Considerations Sometimes, not even the national credit bureaus themselves can predict the effect of an item on a credit report. Thus, they usually call items that tend to have a negative effect "potentially negative."...

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Will a Cell Phone Plan Improve My Credit?

Many people choose to carry a cell phone as their secondary or primary phone line. Cell phones make daily life more convenient and can provide a safety net should the owner have an emergency away from home. Cell phones, and the contracts that come with them, can also affect a consumer's credit score. Depending on how the customer manages his account, he could see an increase or decrease in his credit score over time. Cell Phone Account Basics Traditional cell phone accounts require that the customer sign a one- or two-year contract with...

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How to Notify Credit Bureaus

Credit bureaus keep track of information about your financial activities, such as credit card accounts, late payments on bills and installment loans you have outstanding. This information is used by banks and other financial institutions to decide whether or not to give you loans or increase your credit limit. You want it to be accurate as possible so you are not penalized by banks which use your credit report for inaccurate negative items such as...

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How to Understand and Improve Your Credit Score

A good credit score is always important. Understanding how credit scores work can help you improve and continue to maintain an excellent credit score. Credit scores range from 300 to 850. Scores of 700 and above are considered very good to excellent credit. Instructions 1 Check your credit report. AnnualCreditReport.com is the only way to access your free credit report, which the biggest three credit reporting agencies are required to give...

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How to Build Credit With Credit Cards

Your credit score, also known as your FICO score, is calculated with an algorithm created by the Fair Isaac Corporation using information from your credit history. The algorithm is not released but the components are. Your score is based 35 percent on your payment history, 30 percent on the amount of money you owe, 15 percent on how long you've had credit, 10 percent on how much credit you have recently applied for and 10 percent on the types of credit you've used. Having a credit card can help you improve several of these categories. Instructions...

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Damage to Credit From Being on Unemployment

Unemployment is a primary cause of poor credit, but the impact isnt the same for everyone. People who are prepared for a job layoff or termination may suffer no damage to their credit. Others who were already struggling financially may find themselves facing auto repossession or foreclosure within a few months of losing their jobs. Unemployment Benefits Many people who lose their jobs through no fault of their own are eligible for state unemployment benefits. Initial eligibility is usually for 26 weeks, with payments lasting for more than...

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How to Remove False Credit Information

Keeping track of your credit report is more important than ever. Credit scores are used for everything from buying a car to getting a job. The accepted validity of the three major reporting agencies also means the burden of proof falls on you. To remove false credit information, thoroughly check all your credit reports, contest any bad information and contact the reporting companies. Instructions 1 Order a copy of all your credit reports....

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How to Help My Credit Rating

A credit score in the high 600s and 700s is considered good by most lenders' standards. Having a good credit rating opens the door to various finance options. You'll qualify for a mortgage loan and vehicle loan, and you'll likely obtain a low finance rate. The rate on a loan determines your monthly payment, and if you're looking to keep your payments within budget, now's the time to review your score and take steps to raise your rating. With effort,...

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How Much Do Unpaid Bills Affect Credit Scores?

A FICO score is a three-digit number ranging from 300 up to 850 that represents how much of a credit risk you are to lenders. The lower the score, the greater the risk. The score can impact your life in several ways, including how much interest you're charged on a loan, the rates you're offered by an insurance company and which jobs you can qualify for. It's important to understand how unpaid bills affect your credit score. Basics Your FICO credit score contains five key components. According to FICO, 35 percent of the score reflects the...

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Does Paying the Minimum Hurt Your Credit Score?

Paying the minimum amount you owe on your credit cards can hurt your credit score if you carry high amounts of debt. Minimum credit card payments also increase the amount you pay in interest charges, and they prolong the time it takes to pay off debt. The Federal Trade Commission suggests you develop a lifestyle that allows you to pay more than the minimum amount. Doing so saves money and improves your score because you lower your debt-to-credit ratio. Avoid Minimum Payments Paying the minimum amount allows additional interest charges...

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10 Tips for Establishing an Excellent Credit Rating

Everyone wants an excellent credit rating because of the financial freedom it brings. When you have an excellent credit rating, you can easily get loans, open new credit-card accounts and even get a home mortgage. You have to work at establishing an excellent credit rating, but if you are financially responsible you will be able to achieve and maintain it. Make On-Time Payments According to the FICO credit-score company, your payment history...

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How To Get Your Totally Free Credit Report

Your credit score is based on your credit report. Viewing the report can help you keep track of the items making up your credit score. According to the Federal Trade Commission, the only authorized place to get your free credit report is through Annual Credit Report. You are entitled by law to obtain one free credit report per year from each of the three major credit reporting agencies, Equifax, TransUnion and Experian. You can get all three reports at once or get one at a time to monitor your credit every few months. Instructions 1 Go to...

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How to Stop Debt Collectors on a Credit Report

Removing debt collection notices from your credit report can be a stressful trial. Debt collectors know that their power over your credit report is the most powerful weapon in their arsenal. They don't want to give that up without getting something in return. At the same time, they know that you can continue to avoid paying a debt or eventually declare bankruptcy. Educate yourself about your options to strengthen your negotiating position. Instructions 1 Request a copy of your credit report from one of the three major credit bureaus (Experian,...

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How Much Will I Improve My Credit If I Pay Off Collections?

Collection notations within your credit report indicate that, at some point in the past, you stopped making payments on a debt. Collection accounts are always harmful to your credit score. Paying off collection accounts demonstrates responsible financial behavior, but it does not positively impact your credit. Credit Score Various credit scoring formulas, such as FICO and VantageScore, exist to help lenders determine your nonpayment risk when you apply for a new loan or credit card. Although the credit scoring formulas differ, they all...

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Does a Name Change Affect Your Credit History?

After marriage, it is customary for wives to take the last name of their spouse. Because your name is tied to your credit history, you might assume that this would affect your credit history. However, because of how credit reporting agencies track credit activity, a name change affects your credit report less than you'd think. Credit Reporting Credit reporting is done by lenders. When you open a credit card account, take out a mortgage or get an auto loan, the lender reports information about the loan to the credit reporting agencies (Equifax,...

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What Does a Zero Credit Score Mean?

The FICO scoring system has a range of 350 to 850, but some people tout the benefits of a zero credit score. This is really an exaggeration, mostly used by financial guru Dave Ramsey as a rejection of the importance of credit scores as opposed to getting out of debt or preventing debt. Identification A credit score of zero really means the borrower lives a mostly cash-only existence and does not have enough debt for the credit scoring agencies to rate his profile. Some financial experts, such as Ramsey, claim that this is a good thing,...

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How Can I Build My Credit Without a Bank Account?

A credit score affects your ability to purchase a vehicle, secure housing and even get a job. When building new credit or repairing poor credit, it's important to focus on your credit score. Making changes in your behavior, such as paying debt obligations early, keeping low credit balances and avoiding the urge to close old accounts, can boost credit scores over time, even if you don't have a bank account. Instructions 1 Consider applying for a secured credit card. If you don't have a credit history (or a bad credit history), companies might...

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Free Tips for How to Increase Credit Scores

Increasing a credit score can make the difference between being rejected for a loan and receiving a loan with a great interest rate. The two largest contributing factors to a credit score are payment history and amounts owed, which make up 65 percent of an individual's score. Efforts to increase a score should focus on these areas, although a few other strategies may help as well. Pay on Time Although it may take a while to have a significant effect on a credit score with blemishes, having a spotless payment history is always a plus for...

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What Is Considered a Good FICO Credit Score

The Fair Isaac Corporation calculates a credit score for any individual who has had credit history information reported to the credit bureaus. Credit scores range from 300 to 850 and help lenders assess the credit risk an individual poses. Ranges The median credit score for Americans as of 2008 is 725. The best credit scores are above 760, but lenders generally consider a credit score over 700 to be good, according to Smart Money. People...

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How to Clean Up Your Credit File

Regardless of the mistakes you've made in the past, you can clean up your credit history and earn a score in the 600s or higher. Your credit score is a three digit number that lenders and banks use to judge whether you qualify for financing. Negative items such as collections and bankruptcies remain on reports for seven to ten years; and a low credit score limits your buying power and can lead to higher finance fees and unfavorable loan terms. There...

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Does Buying Something on Revolving Credit Hurt My Credit Score?

Every purchase you make on credit may take a few points off of your credit rating. However, a credit card balance does not damage your credit rating as long as you pay off the bill every month. You can avoid wracking up too much credit card debt by not using a card, but this may hurt you more than making purchases. Identification Buying something on revolving credit, such as a credit card or home equity line of credit, hurts your credit rating if you carry the balance over to the next month. If you pay a credit card bill by the due date,...

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How to Contest Negative Entries on a Credit Report

There are three major consumer credit reporting companies: Equifax, Experian, and TransUnion. By law, these companies must provide every American who requests one with a free copy of his credit report every 12 months. You can request your report from the reporting bureaus or from www.annualcreditreport.com, which is the only government-authorized site. The Fair Credit Reporting Act requires these agencies, as well as the companies that report to them, to correct any information proven to be erroneous. For example, suppose your credit report lists...

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Factors in Determining a Credit Score

Your credit score affects your life in a variety of ways. Your ability to get things such as a job, a car or a loan is often determined by your credit score. Considering its importance, you should know how your actions affect your credit score. You can improve your score or keep it in good standing when you know how credit bureaus determine the rating. Length of Credit History The length of your credit history counts for 15 percent of your...

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Ways of Building Credit After Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is a way for consumers to erase their debts, wherein they are no longer liable for these balances. While a bankruptcy can ease financial worries, a bankruptcy severely impacts your credit rating, and it can take years to recover. Despite the initial drop in your credit rating, there are several ways to rebuild credit after bankruptcy. Apply for Credit Applying for a new line of credit may appear impossible after a Chapter...

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How to Get a 650 Credit Score

An important aspect of financial health is maintaining your credit, which directly affects your ability to purchase a house or car, rent an apartment and even get a job. Your score is calculated based on how much debt and credit you currently have, the type of credit you use, the number of accounts you have, your payment history and the length of time of your credit use. Instructions 1 Obtain your credit report. You are entitled to one free credit report each year from the three major credit-reporting bureaus: Experian, Equinox and TransUnion....

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How to Cancel True Credit Report

US citizens are entitled to a free credit report from Equifax, TransUnion and Experian once every year. This can be obtained by requesting a free report at AnnualCreditReport.com. Some people like to check their credit more frequently. This may be to make sure no fraudulent activity is going on, to monitor a credit problem or for other reasons. TrueCredit, a division of TransUnion, offers monitoring of credit. The first month is free and, after that, there is a monthly fee of $14.95. Instructions 1 Call TrueCredit's customer service number:...

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The Average Consumer Credit Score

Credit scores are a measure of a consumer's credit profile. A low credit score means the person is a high credit risk, while a high credit score means the person has an excellent credit history. Significance Generally, those people with credit scores significantly above the average are said to have "good" credit, while those significantly below the average are deemed to have "bad" credit. People with scores within a few points of the average have "average" credit. According to Credit Scoring, a score of 730 or above is considered good,...

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Beacon Score Credit Rating Tips

Beacon score is another name for FICO or credit rating, and this term is used exclusively by the Equifax Credit Bureau. A high Beacon, or credit score, places you in the prime category for credit cards, auto loans and mortgages. Being a good or ideal candidate for loans usually results in better interest rates and terms. Sadly, some people don't maintain an acceptable credit rating (650 or higher). But even if you've always had a low score, you can...

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How to Have Negative Things Deleted Off of a Credit Report

James Kemish of the Street Directory says that more than 100 million Americans have credit reports that contain errors. Often, the incorrect information hurts their credit score, makes them pay higher interest rates and causes them trouble when they try to open new accounts. If your credit report has incorrect negative information, have it deleted. This will make it easier for you to get loans and other credit and receive more favorable terms. Instructions 1 Identify the negative information on your three credit reports. A separate report...

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How to Determine the Closing Cost of a House

When completing the mortgage application process the final chapter is going to be closing. At the closing table you have to be prepared with a certified check to pay for all fees required by the lender. You should have an idea of the estimated closing costs you'll have to pay well in advance of closing as well as a breakdown of the fees. Instructions 1 Complete a mortgage application (Form 1003) with the mortgage lender of your choice. You must answer questions about your income, assets and expenses. Later, you'll also have to provide documentation...

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