About Credit History

Credit reports are a good indication of how a person handles his finances. Creditors report late payments, delinquent payments and even satisfactory payments to credit reporting agencies so companies can determine if the person is worthy of more credit. A credit history is also used as a way to determine if a person will be a trustworthy tenant, homeowner or car owner. That is why they are so important when applying for a loan and even a job. Warning Credit reports with a large number of negative reports will prevent a person from getting...

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How to Build Your Credit Score Fast

Having a high credit score means you don't have to worry about being approved for loans and credit. And the higher your score, the lower your interest rates will be. Anyone can get control of their finances and raise their credit score over time, but if you're trying to borrow right now, then chances are you don't have much time to lose. Luckily, there are a couple of tips you can follow that should help bump your score up fast. Instructions Necessary...

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Does Rental History Reflect on My Credit Report?

Although a potential landlord might pull your credit report to check up on your financial responsibility before renting to you, your credit report does not usually show past rental history. If a potential landlord wants information on your previous rental history, he will ask for the name and phone number of your past landlords and call them. No Rental History In most cases, your rental history will not appear on your credit report at all. This is because landlords need to pay a fee to report information to any of the three major credit...

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What Is a Person's Credit Score & How Is it Determined?

The Fair Isaac Corporation, also known as FICO, created the algorithm use to convert your financial history into your credit score. This credit score gets used by creditors as they decide whether to issue you credit. Identification The credit score identifies the risk of a person defaulting on a future loan. According to the Fair Isaac Corporation, the credit score does not show whether a person will be a good or bad borrower. Factors The FICO credit scoring model uses five weighted factors in figuring your credit score. Your payment...

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Which Is Worse for the Credit Score: Many Late Payments or a Foreclosure?

In 2009, 5.4 million Americans were behind -- called default -- on their mortgage payment, but as many as 20 percent of them were "planned," according to the Wall Street Journal. This happens because it can be in a homeowner's best interest, financially and for a credit score, to walk away from a home rather than struggle to make monthly mortgage payments. Identification Whether late payments or a foreclosure is worse for your credit score...

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How Much Can You Raise Your Credit Score by Paying Down Balances on Credit Cards?

If you carry large debts on your credit card, your credit score will suffer. Having a low credit score will make it difficult for you to open a new credit card, get a loan or find a home mortgage. Carrying a balance on your credit cards will also cost you more in interest fees. By paying down the balance on your credit cards, you can improve your credit score. Effects The Fair Isaac Corporation reports that your total debt accounts for 30 percent of your overall credit score. Your total debt includes any balances you carry on your credit...

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Steps to Clear a Credit Report

Clearing up your credit report and removing negative information helps you get financing with a lender. The information on your credit report can either make or break a loan deal, and your credit determines the interest you'll pay on a loan. Follow these steps to clean up your report and get your application approved. Viewing Your Complete Credit History You can't clear up your credit report without first knowing the contents of your personal file. Getting copies of all three of your credit reports can reveal what lenders are saying about...

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Do Debt Collectors Report to Credit References?

A credit reference is a bank, credit union or other lender that has loaned you money. The creditors maintain detailed information about your payment history and provide monthly reports to major credit bureaus such as TransUnion, Equifax and Experian. Debt collectors usually report to credit bureaus and not directly to credit references. Debt Collector Types Some creditors employ their own debt collectors as part of an in-house collections team. MSN Money reports, that credit card accounts are usually closed and listed as charged off after...

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Credit Scoring Methods

In most cases, when you apply for credit at a bank, store or other business, the business pulls your credit report and your credit score. The business get your credit report from one of the big three credit reporting agencies: Equifax, Experian or TransUnion. The business also obtains your credit score from either the Fair Isaac Corporation (FICO) or the credit reporting agencies via VantageScore. The credit score is a shortcut method for the...

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How to Remove Charge Offs

A charge-off occurs after a debt becomes delinquent for an extended period. When a creditor lists a debt as a charge-off, it means he is declaring it uncollectable. There are accounting and tax benefits for a creditor to declare charge-off delinquent debts; the process is common and debts are routinely charged-off after as little as six months of delinquency. Debts that are charged-off are also filed on a consumer's credit report, where it can remain for up to seven years. Debts that are charged-off are still legally valid and can be collected....

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How to Check Credit Worthiness

Knowing your credit worthiness can help you obtain financing and protect against credit card fraud. Many lenders will not lend you money if your credit is in poor or even average standing. Poor credit worthiness leads to difficulty when you apply for car loans, mortgage loans, utility service and insurance. Checking your credit worthiness can also alert you if you've been a victim of credit card fraud because you will see if your credit score has...

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Why and How to Get Your Credit Report and FICO Score Regularly

Your credit report and credit score have a big impact on your life. It affects your ability to get a loan and the rates you'll pay when you get one. Looking at your FICO score and report regularly ensures that there are no mistakes and allows you to identify potential fraud. Catching these early will allow you to correct the problem quickly. Additionally, knowing your credit score can help you determine whether it's time to apply for a loan--if your score is close to the next tier of rates, it's best to wait until your score improves. Instructions...

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How to Cancel Privacy Matters

Long before The National Bureau of Economic Research released data showing that the U.S. economy had entered a recession in December 2007, identity theft was a major problem for U.S. consumers. Bad economic times have since led to an increase in identity theft. In order to decrease the chances of becoming victims of identity theft, many people have subscribed to Privacy Matters, a credit monitoring and identity theft protection company. However, many people are finding that the $19.95 fee is too much to deduct from their paychecks, which might...

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How Does a Paid Settlement Affect My Credit?

When you are long overdue on debt payments, creditors will sometimes accept a settlement, which is a payment that does not cover the full amount you owe. Although a settlement allows you to get rid of a debt without paying it off in full, it also damages your credit score. Number of Points An account that appears on your credit report as a paid settlement will hurt your credit score. The number of points it will take off depends on what your credit score was before you settled. The higher your score was, the more points you will lose. FICO,...

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Are You Entitled to a Free Credit Score?

Credit scores are a critical factor in your financial life. Using a complex algorithm, credit bureaus establish credit scores that creditors use to determine the likelihood you will repay your debts after borrowing money. Information in your credit report is used to determine your score. By law, you may view a free copy of your credit report from each of the three major credit-reporting agencies each year. However, the law does not include the right to view your credit score at no charge. The Fair Credit Reporting Act The Fair Credit Reporting...

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Marriage & Credit History

Your credit report details your financial history as reported to credit bureaus by past and current lenders. Credit bureaus apply a score based on your lending history and potential creditors use the score to determine your creditworthiness. How marriage influences your credit history and score depends whether you plan to merge accounts, jointly acquired debts and state laws. Facts There are no joint or combined credit reports. Each report...

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How to Check Activity on Your Credit Report

A credit report tracks an individual's history of making timely payments on debt obligations. According to MSN Money, more than 30 million people struggle with credit issues that make getting credit difficult. Regularly checking activity on your credit report allows you to correct inaccuracies and catch identity theft. Instructions 1 Order a free credit report. Every consumer can order a free credit report every 12 months, according to the Federal Trade Commission (FTC). You can order a free credit report online from all three credit bureaus...

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Credit Score Limitations

Credit scores are created from information included in your credit report. Each month, your creditors report information on how you manage your account to the three major credit bureaus. Creditors use your credit score to assess whether you are a low-risk or high-risk borrower. However, credit scores have limitations. Creditors cannot report any personal information to the credit bureaus. Fair Credit Reporting Act The Fair Credit Reporting Act gives consumers the right to know what's in their credit report. The information in your report...

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Does a Post Office Box Show Up on a Credit Report?

While a post office box, or P.O. box, might seem like a fairly insignificant thing in the world of lending, it can have a significant impact on your ability to gain credit and your credit score. However, just owning a P.O. box does not immediately affect your credit rating. Instead, it may show up as a delinquent account or part of your demographic information. Identification The major credit reporting bureaus -- TransUnion, Equifax and Experian -- do not report P.O. boxes as an account on consumer credit reports. P.O. boxes do not involve...

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If You Get Married Does That Affect Your New Wife's Credit Score

Your credit score is very important for securing future loans and low interest rates. The widest used credit scoring formula is the formula developed by the Fair Isaac Corporation, known as the FICO score. Misconceptions Simply getting married does not affect your credit score or your wife's credit score. The FICO credit scoring formula does not consider your marital status. Considerations Only joint accounts that you have with your spouse will affect your spouse's credit score. For example, if you open a joint credit card, that...

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Why Is My TransUnion Score Higher Than Equifax?

Despite matching information on your TransUnion and Equifax credit histories, there may be a noticeable difference in scores from them. More than likely, your TransUnion credit score is higher than your Equifax score because of different information gathering channels. The difference in scores, however, may not matter much to lenders. Credit Bureau Issues Your TransUnion score might be higher than your Equifax score because of different information on file, since some of your lenders may not report to both bureaus. Equifax or TransUnion...

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Does a Student Loan Consolidation Help Your Credit Score?

Student loan consolidation can affect the repayment terms of the loans involved in the consolidation as well as the credit score of the student consolidating the loans. How that credit score is affected depends largely on the type of student loans involved in the consolidation and how long the loans existed before being consolidated. Credit Score Anatomy Several factors make up your credit score. Each affect your credit score by a certain percentage, which is determined by the national credit-reporting bureaus. Your payment history affects...

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Explanation of the Fair Isaac Score

The FICO score was created by the Fair Isaac Company. A FICO score, also known as a credit score, is a tool based on algorithms and statistics used by creditors to determine the creditworthiness of customers and helps to determine the likelihood that a debtor will default on a loan. Relying on the FICO score helps lenders determine how much risk a customer poses when borrowing money. Accurately assessing a customer's risk is paramount in helping to eliminate bad debt. A number of factors are used when calculating a FICO score. Payment History...

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How to Rebuild Personal Credit

The best way to rebuild your credit is to start paying your bills on time month after month. A consistent record of on-time payments for 12 to 24 months will help improve your credit score and indicate to creditors that you have recovered from past credit problems. Along the way, there are other measures you can take, including establishing new credit accounts. New credit accounts are possible even if you are just now recovering from your past credit...

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How to Dispute Things on Your Credit

Equifax, one of the United States' largest credit reporting agencies, documents the credit histories of over 200 million consumers, making over 2 billion updates monthly. Inevitably, errors happen. If you discover erroneous records or data on your credit report, take steps to initiate the removal of such data from your credit history. Contact all three credit bureaus (Equifax, TransUnion, Experian) with the dispute to clear all incorrect histories. Instructions 1 Send a dispute letter via certified mail with return receipt to each credit...

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The Best Way to Build Credit

Building credit is something almost everyone should think about. Your credit history can affect multiple areas of your life, from the interest rates you receive on mortgages and car loans to your ability to achieve gainful employment. Unfortunately, building credit takes time, and it can be difficult to get your foot in the door if you wait too long or allow negatives to build up on your credit report before you have any positives. Here are some good ways to build credit no matter what your circumstances. Significance Your credit report...

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Difference Between Credit Plus Score & FICO Score

The Plus score and the FICO score are two of the most commonly used credit indicators. These scores indicate an applicant's creditworthiness and the likelihood that they will receive favorable loan terms. Issuer PLUS scores are issued exclusively by Experian using Experian Decision Analytics, while FICO scores are issued by each of the three major credit bureaus using methods developed by the Fair Issac Corporation. Scale PLUS scores range from 330 to 830, and FICO scores range from 350 to 850. A higher score signifies a lower level...

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How to Add Lines to Your Credit Profile

Lenders use your credit report when deciding to extend you a new line of credit. Your credit report also helps determine your interest rates and if you can receive a credit line increase. Keeping your debt low, paying your bills on time and applying for credit responsibly will help you build a good credit report. However, many creditors, such as gasoline companies, local retailers, wireless providers and utility companies do not often report payment information to the credit bureaus. By requesting that companies report positive information on your...

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Can Buying a Car Help Build Credit?

Higher consumer credit scores indicate that you are a good credit risk to potential lenders. Not only will a good credit rating help make you eligible for a loan, it can help lower interest rates on loans and lower insurance premiums. One way to build a good credit rating is to take out a loan or open a charge account and make timely payments. Qualifying for an installment loan and buying a car is one way to help build your credit score. Car Loans Most car loans are installment loans, with the principal credit balance being reduced with...

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Truths & Myths About Your Credit Score

Your credit score is a number between 300 and 850 that reflects your credit risk. It gives lenders a snapshot of how likely you will be to repay the loan they are considering giving you. Checking Your Own Score Pulls it Down This is a common myth. Your score is not affected by you checking it. It is minimally affected when you apply for new credit accounts. You Have to Pay a Fee to Find out Your Credit Score Yes, this is true. However, you do not have to purchase a monthly credit monitoring package to get it. You can pay a small...

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TransUnion Credit Information

TransUnion, a global credit reporting service, maintains its company headquarters in Chicago. As of 2010, the company reported and stored approximately 500 million consumer credit histories and serves businesses and consumers in countries like Chile, Russia, Zimbabwe and Singapore, in addition to the United States, Canada and Mexico. History TransUnion originally established itself as the parent company of a railroad car leasing enterprise...

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What Does FICO Stand for?

Your credit score is a number that builds up in the background as you conduct your financial affairs. Creditors use this score to evaluate you for everything from credit cards to cell phone accounts. You should understand as much about your personal credit data as possible, including details like what the word FICO stands for in relation to credit scores. FICO Trademark The acronym FICO stands for Fair Isaac Corporation, an organization that computes and publishes credit scores for viewing by consumers and creditors. FICO is a trademarked...

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How to Appeal a Bad Credit Rating

About 70 to 80 percent of credit reports contain errors that drag down the credit ratings. Such errors can lead to inability to get loans and credit cards. If you suspect that your credit rating contains errors, you may be able to correct them by starting a dispute. However, this process may take time, effort and a lot of patience. You will find it easier to resolve the problem if you have the financial documents to support your case. Instructions 1 Get a copy of your credit report from each of the three credit agencies: TransUnion, Experian...

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How to Report Debt on Credit Reports

A consumer credit report helps businesses decide how risky it would be to extend credit to an individual based on the standing of his past credit accounts. If you have an uncollected debt, consider reporting it to a credit reporting agency. This will negatively affect that person's credit report and let other companies know that this person is credit risk. It can also help your collect that debt because to remove that debt from his credit report, that person will have to contact you. Instructions 1 Gather all the information you have about...

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How to Remove Judgments From a Credit Report After Bankruptcy

A Chapter 7 bankruptcy discharges your debt obligations, but while the original accounts that judgment liens are associated with are paid off, the liens are not automatically removed from your credit report. A lien is difficult to work around, as you won't be able to sell real property without removing the lien from your credit report. A judgment lien whose original account has been discharged through bankruptcy can be removed, but you need a lawyer to do so. Instructions 1 Gather the lien paperwork, your bankruptcy paperwork, the judgment...

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How to Resolve a WildBlue Cancellation Charge

Even if you don't need or want their service anymore, corporations can still require you to fulfill the terms of your contract. Cancelling a service before your documented contract is up can cost you. WildBlue, a company that provides high-speed Internet service prefers 2-year contracts, which means the cancellation charge can add up. Paying the remainder of the contract upfront can help you professionally resolve your cancellation. Instructions...

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Three Big Credit Reporting Agencies

Credit reporting has existed for more than 100 years, evolving from handwritten notes kept by merchants to computer databases with instant access about consumer payment and borrowing history. According to the Federal Consumer Information Center, three credit reporting agencies serve the nation's businesses and consumers: Equifax, Experian and TransUnion. Equifax The Equifax, Inc., 2010 annual report cited more than 200 million U.S. credit and 26 million small business files among its assets. Founded in 1898 by brothers Cator and Guy Woolford...

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How to Get a Free Credit Report by Mail

Federal law allows you, as a consumer, to request a free annual copy of your credit report from each of the three main credit reporting agencies (Equifax, Experian and TransUnion). You can request your free credit reports through the web, phone or regular mail. Each method of ordering your report if secure -- if you choose to request via regular mail, you must compete a few steps in order to ensure your credit report is sent to you in a timely manner....

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Warnings & Consumer Credit Counseling

Contacting a consumer credit counseling agency to help you get a handle on your credit and debt may sound logical if you are overwhelmed. Credit counselors provide a variety of services, such as negotiating better interest rates with your creditors and offering education on how to manage your credit better. However, there are dangers associated with this route. Service Fees Do research before selecting a company to manage your credit and debt. There are countless options available, and choosing the wrong type of consumer credit counseling...

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How to Repair Bad Credit with a Partially Secured Credit Card

Secured credit cards require you to make a deposit into a bank account. Initially, the amount on deposit becomes your credit line and acts as collateral for the loan. Over time, you may become eligible for credit line increases without making an additional deposit. At that time the card becomes partially secured by your bank deposit. Fully or partially secured credit cards are excellent tools for rebuilding your credit when used wisely. Instructions...

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Will Checking My Credit Lower My Beacon Score?

The Beacon score or credit score determines the probability that you will pay your bills on time and in full. Beacon scores are sometimes referred to as FICO scores, and both names are from the credit bureaus that developed the scoring. Keeping track of this important number is vital. Inquiries to your score are recorded and tracked on the credit report. Credit Inquiries Every time that you, a creditor or potential lender checks your credit report, a record is created of the event. This record appears on the bottom of the credit report....

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