Does a Deferred Student Loan Help Your Credit?

Students and former students who are not financially able to make payments on their student loans can apply to have the loans put in deferment. If the lender grants deferment, the borrower can stop making payments on the loan for a specified time period. In general, student loan deferment neither helps nor hurts your credit score. Payment History The company that services your student loans reports your payment history and loan balance to the credit bureaus on a regular basis. When you miss a payment that you were supposed to make, this...

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How to Ask a Collection Agency to Remove an Account From Your Credit Report

The best method to remove unwanted items from your credit report is by contacting a collection agency or disputing the item yourself. Removing items may be the ideal result for errors or discrepancies you may have found while looking through your report or applying for a loan or line or credit. Depending on the nature of the item, it may take both methods to fully remove the account from your credit report. Instructions 1 Obtain a copy of your credit report through the three major credit bureaus or through the FreeCreditReport website (see...

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How to Remove Duplicate Information on a Credit Report

After obtaining your annual credit report, you may see some discrepancies, such as incorrect balances or duplicate information. If there is duplicate information on your credit report, you should have it removed as soon as possible so that your information stays correct. An incorrect entry on your credit history could affect your credit score and your ability to obtain a loan or insurance at lower rates--it can even affect your employment. Instructions 1 Apply online for your free annual credit report from Annual Credit Report (see References)....

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Will My Credit Score Increase if I Pay a Collection?

Your credit score ranges from 350 to 850 and helps lenders and creditors alike determine how likely you are to pay off your debts on time. The higher your credit score is, the lower interest rates you can qualify for, saving you money on your credit card bills and loan payments. Facts Collection accounts appear on your credit report when you stop making payments to a creditor who then sells or transfers the debt to a collection agency. Collection...

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What Do You Do When Your Husband Ruined Your Credit?

Opening joint credit card accounts or buying a home or a vehicle with your husband may seem like a natural part of being married. But what do you do if your husband stops paying the bills? Your credit could be ruined, right alongside his, if you place blind trust in the wrong person. Once the damage is done, you can take steps to clean up your credit rating and start fresh. Check for Accuracy Obtain a copy of your credit report from all three agencies and check the negative account listings for any inaccuracies. The Fair Credit Reporting...

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What Is the Credit Score Range for Excellent?

Many lenders and potential employers look at your credit score to determine your creditworthiness and financial history. FICO credit scores fall between 300 and 850. An excellent score, 750 or above, will help you get the best loan rates, and possibly a job. Interest Rates An excellent credit score is an effective bargaining tool when shopping for a loan. The lender will look at your proven ability to pay bills on time as a strong indication...

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How to Get an Ex-Spouse's Credit Card Off of My Report

Separating your finances is one of the trickiest aspects of a divorce. One key area to address is your credit card accounts. The only situation in which you can get an ex-spouse's credit card account completely off your credit report is if you were only an authorized user on the card. In this case, unless you live in a community property state and the debts were included in the divorce agreement, you are not legally liable for your ex-spouse's debts on this card, and you can get it off your credit report immediately. Instructions 1 Call...

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Is Canceling Credit Cards Bad for Your Credit?

After paying off a credit card debt, you might think the next best move is to close the account to avoid future spending temptations. Think again. Though it may seem like a logical thing to do, canceling a credit card account can actually have a negative effect on your credit score. What Goes Into Score Your credit score is based on many aspects of your history of credit management. Whether you pay on time and how much debt you have carry...

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Does Opting Out of Credit Card Offers Improve Credit Scores?

Pre-approved credit card offers mean your credit report is being pulled. Too many credit inquiries can lower a credit score. Opt out of credit card offers to stop unnecessary credit inquiries. Effects Pre-approved credit card offers potentially lower a credit score. Credit inquiries account for 10 percent of a credit score. Each time you receive a pre-approved credit card offer, your credit report has been pulled. Benefits When you opt out of credit card offers, you are denying creditors the right to pull your credit report without...

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Interesting Facts About Credit Scores

Before credit scores were prominently used in the 1980s, human judgment was the only factor in determining whether someone was given credit, according to Philly.com. Understanding common misconceptions regarding credit scores will help you improve your own credit score while staying informed. Applying for New Credit One common myth surrounding credit scores is that when you apply for new credit your score dramatically drops. Applying for new credit doesn't necessarily cause your credit score to drop, and if it does, it will only drop slightly,...

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Does Settling a Loan With a Debtor Negatively Impact Your Credit Score?

Consumers with a higher credit score are considered to be less of a credit risk. The higher your score, the better. FICO credit scores go from 300 up to 850. If you owe unpaid debt on a loan, it may be tempting to settle that debt with the lender but you should understand if that settlement will negatively impact your credit score. Scores In order to understand how settling a loan can impact your FICO credit score, you must understand how a credit score is determined. According to FICO, how well you pay your bills, the length of your credit...

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Am I Eligible for My Free Credit Report?

You can obtain a free annual report from all three of the nation's credit reporting agencies (TransUnion, Equifax and Experian), making it easy to monitor your credit on an ongoing basis. With cases of identity theft on the rise, you should monitor your credit report regularly. If someone does steal your identity and use it to open credit cards and take out loans, the evidence will show up in your report. The Right Site Go to the Annual Credit Report website to request the free report to which you are entitled. Simply typing "free credit...

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New Jersey Fair Credit Reporting Act

The New Jersey Department of Banking and Insurance offers state residents several resources for managing and protecting consumer credit, especially as it pertains to credit reports. The Fair Credit Reporting Act is a federal statute that protects consumers by regulating the collection, dissemination and use of consumer credit information. Following a significant amendment of the federal law in 1996, New Jersey enacted its own Fair Credit Reporting...

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How Do I Repair My Credit Report Due to Child Support?

The Social Service agencies of most state departments are responsible for monitoring child support payments. If you don't make your child support payments, these agencies do report it to the credit reporting agencies, which can cause your credit score to plummet. Overdue child support payments can also cause a blemish on your credit report, which can prevent you from obtaining credit and loans in the future. Whether the overdue child support showing...

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Adverse Credit Problems

Any type of bad credit on your credit report is considered adverse credit. The length of time these items remain on your credit file can vary. Whenever you have bad credit it affects the cost that you pay for other credit products and services. Sometimes adverse credit information is reported on your file in error. If this happens you should contact the credit reporting agency and dispute the information in writing. Credit Score If you are 30, 60 or 90 days past due on a credit account, this is considered adverse credit. This delinquency...

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Will Deleting a Charge-Off Improve My Credit Score?

A charge-off indicates you failed to honor an agreement with a previous creditor, and it is one of many items that negatively influences your credit rating. The Fair Credit Reporting Act (FCRA) notes that a charge-off appears on your credit report for seven years before being automatically deleted. Removing a charge-off from your credit record will improve your credit scores. Credit Impact How much a charge-off affects your credit scores...

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Will Paying Off a Judgment Raise Your Credit Score?

When you apply for a credit card or loan, your lender reviews your credit report. Your credit score rests between 300 and 850 and provides lenders with a generalized estimate of how dependable you are at paying off your debts. A judgment hurts your credit rating -- making it more difficult to obtain new credit and loans. Facts A judgment appears on your credit report if a creditor takes you to court over an unpaid debt and the judge decides in favor of the creditor. The court then enters the judgment into your county's public record. The...

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How to Get Rid of Sallie Mae Account With a Zero or Transfer Balance

Sallie Mae provides financing for private and federal student loans and as a creditor will report account information to the credit bureaus. Lenders use account history on credit reports to decide whether to extend you credit and at what interest rate, according to the Sallie Mae website. It is not recommended that credit accounts with a good history, either open or closed accounts, be removed from your credit report because these accounts help improve your credit score. If needed, closed Sallie Mae accounts with a zero balance or accounts that...

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Is a Credit Bureau Required to Look at Information Directly From a Consumer?

The national credit bureaus keep track of your private financial data, but you, the consumer, have little influence on what is in your profile. If you send in data to the credit agencies, they will probably just ignore it, because you likely do not have the proper setup to send them data. Some alternative agencies, however, base their business model on looking at information from the consumer. Requirements The credit bureaus do not have to look at information you send to them, because only creditors that pay for and receive approval for...

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Federal Trade Commission Bankruptcy Credit Reporting Laws

The Fair Credit Reporting Act was created in 1970 to develop universal standards for the reporting of credit debts by credit bureaus. Bankruptcy is one of the many kinds of debts reported by the credit bureaus and the act details how long it can be on your credit report and other restrictions. Length of Time Most discharged debts on your credit report are removed after five years as a way to keep your credit report up to date and to focus...

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How to Improve a FICA Score

The FICA score is the one score that will follow you all your life. Depending on how well you manage your money that can be a good or bad thing. Raising the FICA score is challenging, but really is about good money management. When someone runs your credit, it is the main thing they are looking for. Your FICA score is, is based on amount of debt versus income, payment history, type of debt and longevity. Instructions 1 Don't borrow what you can't pay for now. That is a simple rule, but it is the one most people break. Of course this is not...

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Does It Affect Your Credit to Have Multiple Credit Cards?

Having credit card debt is always a bad thing, because finance charges mean you owe more money over time. Multiple credit cards, however, are essential to a good credit score as long as you manage them properly. Be careful not to have too many credit cards out at once, because it could end up hurting your score. Identification Simply having credit card accounts does not hurt your score until you have eight of them, according to The Motley Fool. Actually, you should not have more than eight revolving accounts. Credit cards are the most common...

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Does Having a Mortgage Increase Your Credit Score?

Having a mortgage provider approve you for a home loan may give credence to your creditworthiness, but getting approval for a mortgage won't improve your credit score---at least in the short-term. Even if your score improves in the next few months, simply having a mortgage could make you too risky for other lenders. Identification As soon as you receive your mortgage your credit score will likely see a drop, because adding any new debt makes...

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Do My Medical Bills Affect My Credit Rating?

Credit card issuers, banks, loan companies and other financial institutions report data to TransUnion, Equifax and Experian. These three national credit bureaus add it to their files, and it shows up whenever your credit reports are reviewed. Doctors and hospitals do not typically report bills to the bureaus, but medical debts can show up if they go to collection agencies. Reporting Collection agencies are hired by creditors, including doctors and medical facilities, or purchase charged-off debts at a discount, then profit by collecting...

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How Much Will a Paid Judgment Raise FICO Score?

Your credit score shows lenders how well you've managed credit in the past, and how well you might manage it in the future. Your credit score changes with every financial move you make and a negative remark, such as a judgment, can follow you for years. Luckily, you can help your credit score by paying that judgment off. Judgment Basics A judgment is the result of an unpaid debt. If you fail to pay a debt, such as a credit card or loan, for several months, the lender will try to collect the balance due. As part of the collection effort,...

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Credit Repair Basics

Sometimes people need to repair their credit reports because they contain errors that can hurt their credit scores. Other times individuals need to repair their credit scores because of a poor payment history. Either way, there are steps you can take to repair both your credit score and credit report. Write a Dispute Letter The Federal Trade Commission suggests sending a letter in writing to the consumer reporting company detailing what information...

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How to Request a Credit Report Before a Job Interview

Employers sometimes check an applicant's credit report as part of the job-screening process. Having a good report can help you get a job, whereas a poor credit history might cause the employer to choose another candidate. This is because poor credit history can suggest irresponsibility or be a predictor of financial stress that could hinder your job performance. In addition, jobs that involve working with money might require that you have a positive credit history. Before you interview, check your credit report to ensure that it is accurate and...

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Credit Alert Reporting Agencies

If you are possibly a victim of fraud or identity theft, each of the major credit reporting agencies can place an "alert" on your credit reports, according to both the Federal Trade Commission and Experian. Types In the United States, the three major credit reporting agencies are Equifax, Experian and TransUnion, according to the FTC. Function A credit reporting agency must set a "fraud alert" upon written or oral notice that a consumer might be the victim of a financial-related crime, according to the FTC. These alerts inform current...

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What Happens to My Credit Rating If I Pay Off My House?

Reducing debt should raise your credit score because it shows fiscal responsibility, but paying down a mortgage does not always make the most financial sense nor help your credit score. Mortgages, for instance, usually carry the lowest interest rate of all kinds of debt. Your other debt obligations and credit history determine what happens after paying down a mortgage. Misconception If you have more than one installment loan, paying off your...

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Credit Score 101

The first thing to know about the credit score it that it is a complicated matrix on which an action, like opening a credit account, can impact one consumer's score quite differently from another depending on a myriad of factors. In a sense, your credit score is like a delicate ecosystem where a change in one element impacts everything else. But, as with any ecosystem, there are certain fundamental things it requires to be healthy. Payment History...

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How to Freeze a Credit File

If you have been a victim of identity theft or fear you may become one, you may wish to freeze your credit file. When you freeze your credit file with one of the three credit-reporting agencies, your file is available to others only with prior, written permission. You can request a temporary lift of the credit freeze if you are going shopping and wish to allow lenders to access your credit file. After this temporary lift, your file will again be...

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What Is a Derogatory Account?

Your credit report contains information about your currently active credit accounts as well as accounts you held in the past. When your creditors notify the credit reporting agencies about negative information related to your management of a particular account, credit bureaus notate that information on your credit file. Accounts on which negative information exists are commonly referred to as derogatory accounts. Credit Bureaus The three credit reporting bureaus, Equifax, Experian and TransUnion, all use different formulas for calculating...

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How to Run a Canadian Credit Check

In Canada, knowing your credit history is vital. Having established credit allows consumers to purchase items on credit without having to pay the entire amount upfront. Credit can allow you to obtain a mortgage on a home, a loan on a car or get a utility bill put in your name. As an employer, knowing the credit history of current and potential employees is an asset. For these reasons, your credit rating is extremely important to both you and your...

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How to Get a Better Credit Score

One of the most important numbers in your life besides your social security number is your credit score. The higher the score the better your ability to get a loan for a house, school tuition, car or other purchase. Your credit score tells lenders about your financial history and your ability to pay back a loan. A good credit score also gets you lower interest rates. While you cannot improve your credit score overnight, you can improve it within a month a two. Instructions 1 Pay bills on time. This shows financial responsibility. If you...

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FICO Debt-to-Credit Ratios

Consumers use credit in a variety of ways. When a lender extends credit to you, that credit account is reported to the credit bureaus. Such information is distilled into a credit report. According to MyFico, your FICO credit score ranges from 300 to 850 and is directly based upon the data in your report. It's important to understand how debt impacts this score. Identification Your FICO credit score is determined by a mathematical algorithm that translates the data on your credit report into a three-digit number. The score looks at five...

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5 Steps to Building Credit

About 50 million people in the U.S. have no credit history, but most of these people can obtain some kind of creditable account, according to Lynnette Khalfani-Cox of Wallet Pop. The most important step to building credit is to open an account tracked by the major credit bureaus. Then you only need to pay your bills on time and keep your debt load small. Check Your Credit Report You may already have a credit history and not know it. If you have ever had a credit card, mortgage or any bank loan, your lender likely reports the account to...

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