How to Create a 680 Plus Credit Score

A good credit score improves your likelihood of acquiring a loan. While lenders vary in their definition of a good credit score, a FICO score of 680 or higher is generally enough to obtain a good interest rate and loan. Fortunately, there are many ways to raise a low score and improve your chances of getting financing. Instructions 1 Get your credit score and assess your rating. You can request your credit report and credit score from websites such as AnnualCreditReport.com. 2 If you don't have a credit account, get one. You need credit...

Read More

How to Obtain Credit After Chapter 13 Bankruptcy Discharged

Finalizing your Chapter 13 bankruptcy can lift a huge burden. On the downside, filing bankruptcy has a major impact on your personal credit score, and after the discharge, it becomes extremely difficult to acquire financing. While some lenders will not approve your loan applications, it's imperative to obtain credit after a Chapter 13 bankruptcy in order to rebuild your credit. Fortunately, there are ways to acquire credit and undo past mistakes....

Read More

What Is a Bad FICO Score?

Your FICO credit score is the main way lenders measure whether or not you're worthy of credit. It's important to keep your FICO score as high as possible in order to qualify for credit cards, loans and mortgages. Score Range FICO scores range from 300 to 850 with 300 being the lowest and 850 the highest. Few people are able to obtain an 850 FICO score, but the national median hovers around 711, according to the credit-reporting agency Equifax. Generally, a FICO score below 600 is considered high-risk and it's unlikely a lender will grant...

Read More

How Do I Get My Credit Information From Free Triple Credit Report?

It's almost a source of wisdom that anything described as "free" comes with a price. In the case of many on-line offers, "free" means something for free as long as you provide a credit card number for further charges. Cute Commercials You Pay For Freetriplecreditreport.com does not explain how much it charges for the monthly service on its homepage, but there is a monthly charge and no truly "free" credit report. Likewise, Freecreditreport.com has become popular because it's in our heads from the many catchy songs its commercials feature....

Read More

The Disadvantages of Credit Ratings

Every resident in the United States needs to build credit if they plan to purchase a home, buy a car or rent an apartment. Good credit must be maintained by making payments on existing bills and loans in a timely manner. Failing to do so can lead to low credit ratings. The disadvantage of these credit ratings is that they often make it difficult to obtain necessary services in the future. While keeping a high score may be hard, it is important to...

Read More

What Happens to a Cosigner if I Get Sued?

A cosigner is someone who qualifies for a loan for which the original borrower does not qualify, and the cosigner agrees to sign the loan along with the primary borrower. In doing so, the cosigner is taking on the same responsibility as the primary borrower, which means that if the primary borrower does not pay his bills, the cosigner is responsible for paying them. Essentially, it is as if the cosigner borrowed the money himself, which means he is subject to the same legal consequences as the borrower if the loan is not repaid. Sued If...

Read More

What Is the Time Frame to Remove Negative Credit Information Excluding Bankruptcy?

If you exclude bankruptcy from the federal credit reporting time limit, negative items may remain on your report for from two years until the end of your life. Although bankruptcy is the worst financial incident you can experience, is not always the most serious event for a credit report. Owing the government money comes with extra punishment to motivate taxpayers to repay their debt. Identification Most negative credit report information abides by the "seven-year reporting time limit," except inquiries, which remain for two years, and...

Read More

Does Buying a House Improve Your Credit Score?

By itself, the act of buying a house will not affect your credit score. However, to buy a house, most people need to take out a mortgage. A mortgage is a large, secured debt. In the short term, a large debt can hurt your credit score. However, in the long run you can actually improve your credit history dramatically simply by making your mortgage payments on time. Credit Scores A credit score is a summary of your borrowing and repayment activity...

Read More

What Is the Difference Between Tier 1 & Tier 2 When Purchasing a Vehicle?

Lenders and other creditors report information to the credit bureaus. This data is used by the bureaus to create your individual credit report. Information in your credit report determines your Fair Isaac Corporation, or FICO, credit score, which ranges from 300 up to 850. If you're purchasing a vehicle, it's important to understand how having Tier 1 or Tier 2 credit can impact the terms of your auto loan. Credit Scores Your credit score has five distinct components, according to FICO. The bulk of the score measures how well you pay your...

Read More

Does Closing a Credit Card Drop My FICO?

It is possible that by closing a credit card, you could inadvertently reduce your credit score. Whether closing the account reduces your FICO score depends on a number of factors, including your credit history length, how many accounts you currently have open, the different types of accounts you own and your outstanding credit balances. FICO Scores FICO is an acronym for the Fair Isaac Corp. credit scoring agency. FICO is the most widely recognized and frequently used credit scoring agency. Thirty-five percent of your FICO score is composed...

Read More

Experian Credit Reporting

Experian is one of the three major credit bureaus in the United States along with TransUnion and Equifax. Experian is best known as a provider of credit reports, because by law they must provide every individual with one free credit report every year. But the company also provides other credit-related services to individuals and businesses History Experian was founded in England in 1980, and it wasn't until 1996 that it entered the credit reporting business in the United States. As of 2009, Experian has clients in more than 65 countries....

Read More

When Do Things Go Off Your Credit Report?

A few years of abusing your credit can have much longer implications, especially if you are looking to buy a home, car or just need a loan in general down the road. Items on your credit report determine your credit score. A good credit score means your bank will give you a better interest rate. Conversely, a bad score gives you a worse interest rate. Negative items can last from seven to 10 years, and some items have no time limits. Seven Years...

Read More

Can Paying off a Charge-Off Account Make Your Credit Scores Go Down?

A charge-off is one of the worst items that can show up on your credit report, so you'll probably want to do damage control and pay it off. In the past, paying an old debt usually damaged your credit history. However, as of 2011, paying a charge-off account may improve your credit rating and even eliminate record of the account. History The major credit scoring system in the United States -- the Fair Isaac risk model -- used to punish consumers for paying old debts because payments renewed the date on the debt, making it looking more recent...

Read More

What Is the Fastest Way to Receive a Copy of My Credit Report?

Federal legislation passed in 2003 required the three major credit reporting bureaus to set up a system to allow every individual to get free copies of their credit report. You can order your credit report by phone or by mail, but the fastest way to get a copy is to use the online system. You'll get your report instantly. Law The Fair and Accurate Credit Transactions Act of 2003 included a provision giving everyone the right to receive a free copy of their credit report from each of the three credit bureaus once every 12 months. Each of...

Read More

Quickest Way to Repair Credit Legally

Credit reports play a large role in the financial life of consumers. Credit reports provide repayment history for a consumer's credit accounts, including mortgages, car loans, and department store and bank credit cards. A consumer's credit score is used in loan decisions and by the federal government in granting security clearances. Negative information can ruin a consumer's financial opportunities and job prospects. There are a few steps you can...

Read More

How to Remove Bankruptcy From Your Credit

Forget about all the ads you see from the credit repair firms. The only way to legally and ethically remove a bankruptcy from your credit reports is to allow the information to become outdated. The Fair Credit Reporting Act, a federal law, requires bankruptcies to be listed on your report for 10 years. That's obviously a long time, but your credit may bounce back quicker than you think. According to Microsoft Money, many people successfully rebuild...

Read More

How Long Does it Take for Your Credit Score to Rise After Paying Off Debts?

Credit scores can plummet quickly when a person defaults on bills, according Fair Isaac Corp., creator of FICO credit scores. It takes a longer time to repair damaged credit. One of the best ways is simply by paying off debts, especially if the payments are all made on time. Definition A credit score is a three-digit number calculated by FICO or one of the credit bureaus and sold to lenders to help them make decisions on credit applications. Leslie McFadden of the Bankrate.com financial website explains that a score is supposed to indicate...

Read More

Five Ways to Harm Your Credit Score

Credit scores range between 300 and 850. A high score indicates superb credit habits. A good credit rating qualifies for you for the most competitive interest rates on mortgages and other loans. Keeping a good rating involves avoiding habits that can harm your score. High Balance Carrying a credit card balance alone doesn't hurt your credit score. On the other hand, if you carry high balances, have maxed-out accounts or exceed your credit limit, expect a dip in your credit score. To be on the safe side, keep balances below 30 percent of...

Read More

What Is the Most Important Thing to Keep a Good Credit Score?

A credit score is determined using a formula of various factors involving your current and past credit activities. The score is known as a FICO score, which stands for the Fair Isaac Company score. Factors There are five factors in determining your credit score. 35 percent of your score is determined from your payment history. 30 percent of your score is related to outstanding debt. Your length of credit history accounts for 15 percent of...

Read More

Easiest Ways to Build Your Credit

Consumers need credit to build a credit history. But oftentimes, getting first time credit can prove challenging. And if you have no credit history, lenders may deny your credit application as if you had a low credit rating. Certain tricks can help you establish and build credit. The earlier you begin to establish credit, the quicker you can finance a home or acquire other lines of credit. Secured Credit Card Options Getting approved for...

Read More

How to Check Credit and Background

It is important to check your credit and background history. Each time you apply for a line of credit, lenders check your credit rating. The higher the number, the better your chances of obtaining credit. Your rating also affects the terms and interest rates offered. You are entitled to a free copy of your credit report annually. You can check your credit and background, check for errors and see areas for improvement. Instructions 1 Apply...

Read More

What Kind of Score Is FICO?

Your FICO score is a widely used indicator of your credit-worthiness. Lenders, landlords and other businesses consider individuals with a high FICO score to be good credit risks, that is, very likely to pay back any debts owed. Conversely, the same banks and businesses consider a client with a low FICO score to be a substantial credit risk. Customers with high FICO scores are generally given better interest rates and credit terms than those with...

Read More

What Is the Impact of an Overdrawn Bank Account on Your Credit?

If you make an error and overdraw your bank account, you will owe the bank the amount you overdrew in addition to any fees your bank charges for the overdraft. If you fail to pay the bank what you owe, you may suffer damage to your credit. Facts Banks do not report consumer checking accounts to the credit bureaus. Because of this, if you pay the amount you owe to the bank promptly, your credit will be unaffected. Considerations After repeated attempts to collect the debt you owe proves unsuccessful, your bank may turn the unpaid...

Read More

Does It Affect My Credit When It Is Pulled?

Consumers often worry about how credit report inquiries affect their credit scores. Some credit pulls do not affect credit scores at all, while others do. Credit inquiries that affect your score are reported on your credit report for a specific period of time, and may ultimately contribute to decisions lenders make on credit applications you submit. Credit inquiries may be necessary at times, but for the best credit score, it's a good idea to monitor the number of inquiries you make each year and submit credit applications infrequently. Soft...

Read More

How to Get All 3 Credit Scores

There are a variety of offers for free credit reports and scores found online. With so many choices, it can be difficult to choose the best option. Consumers are entitled to one free credit report each year but obtaining credit scores requires a fee. Fair Isaac Corporation, or FICO, created a credit scoring system in 1958 to help lenders determine creditworthiness and the likelihood of timely debt repayment. The FICO score helps businesses to improve their ability to make better decisions about money and credit lending. The credit score is generated...

Read More

Will Paying Off Past Due Accounts Help Your Credit Score?

You've made some financial mistakes in the past. Now that you are on track financially, you want to improve your credit score and settle old debts. Settling the payment of your past due accounts will help to settle those old debts. However, paying off past due accounts may not necessarily improve your credit score right now. Past Due Accounts Paying off past due accounts will improve your credit situation in the long run. However, because...

Read More

How to Get a Private Mortgage on My Credit Report

While your mortgage is typically the largest account on your credit report, private lenders often do not report to the credit bureaus. Your credit report should reflect a complete picture of your payment history and should especially include the most important payment you make each month. Making sure your credit report is accurate and includes all of your best-handled accounts can also improve your credit score. Consider taking steps to add your...

Read More

How Long Can a Credit Reporting Agency Hold Information?

Bad credit reports haunt people who have had past financial problems. Lenders see evidence of past mistakes whenever they view the reports in response to a new credit application, and it influences their decisions. The Federal Trade Commission (FTC) explains that credit reporting agencies don't hold most information, including negative items, forever, so even a terrible report eventually improves on its own if the consumer keeps any new accounts in good standing. Definition Credit reporting agencies are firms that collect and sell financial...

Read More

Can Credit Agencies Change the Terms of Agreement?

The credit rating agencies compile data used to calculate credit scores, but this has nothing to do with loan approval nor can credit agencies change the terms of a credit agreement. The only parties authorized to change the terms of a credit agreement are those that sign the promissory note. Identification Only creditors, such as banks, auto dealers and private lenders, can decide if you are creditworthy. Lenders pull credit reports from...

Read More

Tips on Cleaning Up Your Credit History

If you have been through financial difficulties, you probably have some black spots on your credit history. Even if you have never made any late payments, errors against you could appear on your credit reports. Because your credit history and credit score have such importance for your future borrowing and even your future job hunting, you should make cleaning up your credit history a high priority. Major Credit Reports Find out the extent...

Read More

How to Get Different Types of Loans Despite a Poor Credit History?

You can still be approved for various types of loans even if you have bad credit. Loans are available for people with poor credit scores, bankruptcies, foreclosures and even car repossessions. However, you can expect to pay sometimes staggering interest rates, or you may have to place money in a bank account as collateral. Instructions 1 Start by seeking a secured credit card -- the easiest full-featured credit card to get with poor credit....

Read More

How to Erase Late Marks Off of Credit

The shaky state of the economy is causing many people to lose their jobs and fall behind on their credit card and loan payments. These late payments can wreak havoc on their credit reports, making it difficult to obtain additional credit. If you've fallen behind on your credit card payments, it's important to get back on track financially. Unfortunately, those late payments can remain on your credit report for seven years and significantly decrease your credit score. Because these late payments are so troublesome, it's easy to think that...

Read More

How to Restore Your Credit After Paying Off All of Your Debts

Building good credit requires a significant effort and some patience on your part. If you've worked hard to get out of debt, you may have to work just as hard to rebuild your credit score. If you're debt-free but your credit is still suffering, there are some steps you can take to begin restoring your credit. Instructions 1 Check your credit report. Request copies of your credit report from each of the three major reporting bureaus, Equifax, Experian, and TransUnion, and go over each one with a fine-tooth comb. You want to make sure that...

Read More

How to Follow Up on a CBR Check

An inaccurate item on your credit report can have a negative effect on both your score and your efforts to obtain credit. When a credit bureau report, or CBR, comes back with erroneous information, you have the right to dispute said data. The Federal Trade Commission states under the Fair Credit Reporting Act that such disputes must be addressed within 30 days. If you do not receive a response in that window, follow up by mail or by phone. Wait at least 30 days after submitting your dispute before following up. Instructions With a Letter 1...

Read More

Will Taking Out a Loan Improve a Credit Rating?

When you have bad credit, the only way to improve your credit rating is to pay your bills on time and eventually take out new lines of credit. Taking out a loan will improve your credit rating over time, as long as the loan amount isn't too much and you make on-time monthly payments. Loan Amounts To improve your credit rating by taking out a loan, consider the loan amount. If the loan amount is too high, then it may look as though you are...

Read More

How to Repair a Credit Report With Write-Offs

Some people are able to repair their credit reports by disputing information on the report, including charge-offs. Charge-offs occur when a creditor gives up on collecting a debt from you and closes the account. The remaining balance is charged off, or considered as a bad debt by the creditor. The charge-off is then reported to the credit reporting bureaus and can cause your credit score to drop. On the other hand, removing the charge-offs can cause...

Read More

Steps to Take When Information on Your Credit Report Is Too Old

Knowing what is on your credit report is the first step to making major purchases and protecting your financial future. It is important that what's on the report is accurate and current. Errors and inaccuracies can lead to problems that range from having to pay additional fees and increased interest rates to being denied credit altogether. If you come across any errors on your credit report, there are several steps you can take to make sure that you are protected. Contact Your Creditors Whether it is a change of name or a change of address,...

Read More

Self Help to Fix Credit and How to Repair Bad Credit Now

Repairing your bad credit can be done by you. Many people feel they cannot repair bad credit without the help of experts or agencies, but this is not true. Every individual has the ability to do anything a credit repair agency can do. With time and consistent effort you can restore your credit rating. Most credit repair techniques take time to see positive results, but there is one method where you can see an immediate improvement to your credit...

Read More