Does a Credit Report Lower My Credit Score?

In the world of consumer lending, lenders rely on credit reports and credit scores to determine if a borrower is worthy of a loan. Your credit report forms the basis of your credit history and tells lenders what you've done in the past with respect to using consumer credit. Companies that create credit scores use the information in your report to calculate your individual score, but a credit report itself is not a credit score. Credit Reports Every time you apply for a loan, pay credit card bill or do anything in which a lender extends...

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Does Paying a Bill Earlier Get Better Credit?

Credit scores rate a person's willingness to repay a debt, so you may think that paying bills early would boost your credit score faster than someone who just pays on time. Unfortunately, this is not true. You should pay your bills early, anyway, to avoid accidentally defaulting on your accounts and damaging your credit rating. Identification When your creditor reports that your account was paid by the billing due date, this is the only action that matters. Paying a few days early is no different than paying at the last minute in the Fair...

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Can I Remove Inquiries From My Credit Report?

Your credit reports are made up of data compiled by the Equifax, TransUnion and Experian reporting agencies, which sell your information to financial institutions and other lenders when you attempt to get credit. These inquiries become part of your records for two years, but too many can hurt you. The MyFICO scoring website warns that six or more applications within a few months mark you as a higher bankruptcy risk. You may be able to remove some of those inquiries. Review Your right to free annual credit reports allows you to see which...

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How Does a Credit Report Affect Getting a Customs Brokerage License?

Customs brokers help control items entering the U.S. and must be well versed in the hundreds of laws that apply to imports, so a clear background is critical for anyone who wants a customs broker license. To become a customs broker, you must be at least 21, not a current federal employee and possess good moral character. Although consumer credit reports are more common in the lending industry, employers such as the U.S. government also check reports to judge the moral character of a potential employee. Importance Credit reports, along...

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TransUnion Credit Scores: Risk Score Factors

When you purchased or shopped for your TransUnion credit score you probably did not see an option for a true FICO score -- the most common credit score in the lending industry. But do not be alarmed, the TransUnion tally is a legitimate credit score. TransUnion sells credit scores that rate you based on the same factors as the hugely dominant FICO model. About EMPIRICA Score TransUnion sells EMPIRICA scores instead of a FICO score, but these basically rate you the same way. The Fair Isaac Corporation owns the FICO trademark, so TransUnion...

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How Will Paying a Delinquent Account Affect Your Credit Score?

When you get more than 30 days behind on debt payments, whether they are car loans, credit cards or mortgage payments, the default is almost always reported to the three main credit bureaus. These derogatory reports negatively affect your credit score for a period of seven years. This is true whether the delinquent account is ultimately paid or not. Paying your account will have a more positive impact on your score than leaving it unresolved. In...

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How Soon Does a High Credit Card Balance Affect Your Credit Score?

Just because a credit card company gives you a high limit, does not mean you should use all of it -- doing so can destroy your credit. The damage to you credit can be long lasting and immediate, because it can take years to pay off a large credit card loan since interest rates are high on unsecured lines like a revolving loan. Identification The credit reporting agencies will find out about a high credit card balance as soon as the lender...

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How to Delete Accounts Off Credit Reports

A negative account on your credit report can lower your credit score and make it harder to obtain credit. While it is not possible to call a credit bureau and tell them what accounts you'd like deleted from your credit report, there are ways accounts do get deleted from a credit report. You do not have control over which accounts are deleted but you are responsible for initiating the process. The entire process begins with a credit dispute filed with the credit bureau in question. Instructions 1 Review your credit report carefully and look...

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High Utilization of Credit Lines vs. Insufficient Utilization Information

Using too much of your credit limit --- and, sometimes, not using enough of it --- can damage your credit score. A high utilization of credit lines, however, is far more dangerous than insufficient utilization, because it means a large debt burden. Fortunately, you can solve utilization problems relatively quickly as opposed to other credit problems, such as late payments, which can take years to recover from. Identification A high utilization of credit lines means using too much of your limit. Most experts put the maximum utilization limit...

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How to Increase or Raise Your Credit Score

If the thought of raising your credit score seems farfetched, think again. Its actually quite easy to do. It is simply a matter of putting certain principles into practice and allowing some time. Consistent effort over time can take you into the credit score stratosphere, even above 800. Instructions 1 Do not ever pay anything late. Simply plan ahead. If you know you lack the money for a certain bill, borrow it from your parents, friends...

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Does a Joint Credit Card Score Affect Both People?

A joint credit card account is one in which two individuals are both full account holders on a credit card. Both individuals have a credit card issued in their name, the purchases all go onto a common bill and both of them are held legally responsible for repaying that debt. Therefore, the joint credit card account will affect each of their credit scores. Both Credit Reports A joint credit card account appears on the credit reports of both account holders. The account information, including the date on which it was opened, the credit line,...

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Does Child Support Affect Your Credit?

Making child support payments can put a serious strain on your personal finances, not only through the payments themselves but also in your ability to borrow. Falling behind on child support payments can lower your credit score, which in turn makes it more difficult for you to borrow money at a low interest rate. On-Time Payments Making child support payments as scheduled generally does not affect your credit. This is because the agency that collects payments, or your child's parent if you make direct payments, does not report on-time payment...

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How Much Does a Hard Credit Pull Lower Credit Score?

Soft credit inquiries, which do not indicate a need for credit---such as an employer checking your credit or a preapproved credit card offer---never hurt your credit score no matter how many are on your record. Hard credit inquiries, ones you initiate, usually have a minimal affect on your credit score. An excessive amount of hard inquiries, however, have the potential to hurt your credit. Identification A single hard inquiry will not ding your credit score more than five points, according to NHACA Financial Investing. Hard inquiries ding...

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How Paying Off an Auto Loan Affects Credit Score

Your auto loan is an important component of your credit history, and paying it off affects your credit score. The exact impact on your score depends on your overall credit use. Your credit score fluctuates depending on your financial activity, and is affected by everything from opening and closing accounts to missing a credit card payment. Definition An auto loan is a secured loan, which means there is an asset to guarantee repayment. The...

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Can a Paid Charge-Off Be Suppressed in New York?

Nearly anyone who has taken out credit or incurred a debt has had that activity logged on a credit report by one or more companies, known as credit reporting bureaus. These companies are responsible for keeping track of an individual's borrowing habits and recording them. If a creditor charges off an individual's purchase, he may report this charge-off to a credit reporting. Even if the charge-off is later paid, the record of it remains on the report, in New York as in other places. Credit Reports A credit report consists of a list of debts...

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Can the Report Date Change on a Disputed Item on Your Credit Report?

While some people review the accounts on their credit report for the correct balance, an accurate reporting date can be the most important detail on an account. Federal law dictates how long the credit bureaus can list a negative item. If you see a wrong date of last activity, you can and should dispute it with the credit bureaus. Identification You can dispute anything on your credit report, including the reporting date, under the Fair Credit Reporting Act. The credit bureau with which you make the dispute must investigate your claim within...

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How Can a College Girl Without Credit Establish Credit?

When you apply for credit, the finance company or bank reviewing your application checks your credit score to determine whether you have a history of paying your bills on time. College students often struggle to obtain credit because they have no prior credit history and lenders have no data upon which to base credit underwriting decisions. Nevertheless, as a student there are certain steps you can take to quickly establish a credit history. Student Card Since 2009, federal law prevents banks from offering student credit cards to people...

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What Is a Credit History Used For?

A person's credit history provides information about his reliability. A credit history request does not always follow an application to borrow money, although that is its main use. The credit history is useful in any situation where the person is responsible for cash or property that belongs to someone else. The electric company may request a credit history even though a homeowner must pay his bill at the end of each month. Utilities Utilities often require a credit history to determine whether a homeowner is likely to pay her bill on time....

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Does Getting Turned Down for a Mortgage Affect Your Credit Score?

A rejection for a mortgage technically lowers a credit score, but so does an approval. The fact that you need to add debt to your credit profile to get a loan and that the creditor inquired into your credit file is what does the damage. Unlike other types of loans, putting in more applications, possibly in anger, won't hurt your score if you do it soon enough. Identification Any time you apply for a mortgage, the lender usually does what is known as a hard inquiry into your credit file or a credit check for which you volunteered. Thus,...

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How to Get an Unverified Debt Removed From the Credit Bureau

Credit reporting agencies, also known as credit bureaus, maintain a file listing all of your debts and your payment history on these accounts. You have a right, under the Fair Credit Reporting Act, to dispute any piece of information on your credit report that you believe is incorrect. When the credit bureau investigates the dispute and the company that holds the debt does not verify that the debt belongs to you, the credit bureau must remove it from your credit report. Instructions 1 Obtain a copy of your credit report from each of the...

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Does Unemployment Deferment Affect My Credit?

Borrowers with federal student loans and many types of private student loans can apply to defer payments while they are unemployed. This deferment keeps borrowers from defaulting on the student loans during times of little or no income. Unemployment deferment does not have negative effects on your credit score and might even help you to keep your score up while you are unemployed. No Direct Effects Putting your student loans into deferment status while you are unemployed does not directly affect your credit score in any positive or negative...

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The Best Simple Ways to Build Your Credit

Your credit score has a far-reaching impact. It can help you secure loans and get credit cards. It can even mean the difference between getting or not getting the job of your dreams. Those with no credit or poor credit can take some simple steps to build credit. Building good credit requires slow, steady attention to details. Timely Payments One of the simplest ways to ensure a rising credit score is to pay your bills on time. Whether a mobile phone bill or a credit card note, timely payment shows that you are a responsible consumer....

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Does Adding My Name to a Title Help My Credit?

Credit improvement requires a history of payments made on or before the deadlines, low credit card balances and a mixture of various account types, according to MSN Money writer Liz Pulliam Weston. You cannot help your credit rating without any accounts. Having your name on credit cards and loans is different from having it on a home or car title, which does not affect your credit score. Loans and Titles Big purchases like homes and cars are usually financed, and the account history goes onto your Experian, Equifax and TransUnion credit...

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Should I Increase My Credit Card Limit to Raise My Credit Score?

More available credit may help you secure a loan. It Could Help An application for a larger credit limit that gets approved can be beneficial to your credit score. It shows potential lenders that a credit card company trusts you to make payments on time. Typically, people with delinquencies on their credit history do not have high limits. It Could Hurt Credit card companies sometimes give people huge credit limits that...

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How to Compute Credit Report Scores

The Fair Isaac Corporation developed the algorithm to calculate the FICO credit score, the most widely used credit score in the United States. However, the company only releases the factors that are used in the calculation, maintaining the exact formula as proprietary information. Having a high credit score benefits you because lenders will be more likely to offer you offer you credit at lower rates because you pose a lower credit risk. The FICO credit scores range from 300 to 850, with 850 being a perfect score. Instructions 1 Consider...

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Online Canadian Credit Report Information

Getting a credit report online is a quick way to get a detailed view of your recent credit history. While there are fees involved in obtaining a credit report online, the benefit is that you're able to see your credit report instantly, without the delays that often accompany ordering a free credit report by mail or telephone. Where to Get Reports If you're a Canadian, you can get your credit reports online from Equifax or TransUnion, the...

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Does Paying Off a Tax Lien Increase a Credit Score?

Although a tax lien is one of the most damaging items in any person's credit history, it is also one of the easiest to counteract. If you can pay off the tax lien, you may be able to get the IRS to withdraw it from your credit history within days. However, this is not a perk that applies to all tax liens, so you should avoid them in the first place. Identification Paying a tax lien does little to improve your score other than removing some debt from your credit history. However, unpaid tax liens can stay on your credit history indefinitely...

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How to Create a New Credit File

Creating a new credit profile is a way to parallel your current credit standing and personal debt profile. A second credit profile will not relinquish your responsibility to your current debts and financial responsibilities, but it will create an alternate profile. The only legal method to create a second profile is through a Federal Tax ID number, usually created through a new business. Instructions 1 Understand that a new credit profile does not release you of your requirement to maintain, pay and monitor your personal credit file. ...

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How to Remove a Validated Late Payment From My Credit Report

The credit report regulations outlined by the Fair Credit Reporting Act allow disputes of unjustified late payments in your Equifax, TransUnion and Experian files. The credit bureaus must erase disputed data they cannot validate, according to the Federal Trade Commission, but the delinquency remains if your lender verifies its accuracy. You are better off approaching the lender directly to get the late payment removed from your credit reports, especially if you are a long-time customer with an excellent prior payment record. Instructions 1...

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What are Credit Repair Clinics?

If you have ever been denied credit, it may be beneficial to order a copy of your credit report to dispute erroneous or outdated information. Credit repair clinics can help those who find task to appear daunting. Significance Credit repair clinics dispute undesireable items on a consumer's credit report with credit reporting agencies such as Equifax, Experian and TransUnion. Function For a fee, credit repair clinics will dispute a consumer's credit file by ordering his credit report, looking for outdated information and incorrect...

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Will a Savings Account Boost My Credit Score?

People who have problems with their credit sometimes also have issues with their savings accounts. In most cases, credit accounts and savings accounts are completely unrelated, meaning that a savings account unfortunately doesn't do much to raise a dinged credit score. There are, however, connections between savings and credit that may let a savings account work in your favor. Savings Account Funding Credit accounts function with money from...

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Accuracy of Employment Credit Checks

Employers that use credit reports tend to pull them from three major, private credit reporting agencies, but most of these reports contain at least one error, according to a 2004 U.S. Public Interest Research Group study. The high rate of errors means it is critical for job seekers to review their credit reports and correct mistakes before looking for a job. Identification The only difference between an employment credit check and consumer credit check is that an employment credit check does not include an applicant's name and credit score,...

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Information You Need to Report Unpaid Bills to Credit Bureaus

Businesses that wish to report unpaid bills to the credit bureaus, must be members. The credit bureau may have you fill out an application. You also need the proper equipment that allows you to transmit the data. There are alternative ways that allow you to report to the bureaus. Membership fees To report information to the credit bureaus, you must fill out a data furnisher agreement and pay the necessary fees. There are monthly fees as well. Meet data requirements Any information you submit, transmit or send must be in the Metro...

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Factors Affecting Credit Scores

If you have a good credit score, that means it's easier for you to get credit cards and loans and to qualify for favorable terms. If you have a bad credit score, it can prevent you from getting any loans, making big-ticket purchases or being able to get a Visa or MasterCard. You need to know the factors that affect a credit score if you want to know why yours is high or low and if you want to improve it. Payment History According to Fair...

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What Does a Docketed Judgment Do to a Credit Rating?

Prospective lenders and creditors use your credit rating as a risk assessment tool when deciding whether to do business with you and how much interest to charge you on financial transactions. If a previous lender sued you and holds a civil judgment against you as a result, your credit rating suffers and future lenders may determine you too risky to work with. Docketed Judgments As soon as the judge hands down a decision in favor of the creditor,...

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Credit Improvements

Credit scores reflect your financial health. They tell a lender how well you manage your financial obligations and credit. It is easier for a borrower with high credit scores to obtain a loan than one with low scores. Improving your credit scores can translate to lower loan fees and better rates when purchasing insurance. Property managers use credit scores when evaluating a renter's application, as do some employers, when considering an applicant for employment or promotion. Review Credit Reports The three major credit-reporting agencies...

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How to Get Credit Marks Off of Your Credit Report

You probably realize that it's important to maintain a good credit history. When you buy a car or home or apply for a credit card, your credit report is the key element that determines how much money you qualify for and what your interest rate will be. In some cases, utility providers and employers may also check your credit history before offering you service or a position. As a result, you should establish and maintain a good credit report. Sometimes,...

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What Happens When You Walk Away From a Student Loan?

Students often borrow money to pay for college. Some students have difficulty paying back those loans, which could be substantial depending the amount owed. The U.S. Department of Education, the loan guarantor on non-private loans, offers deferment, forbearance, income-sensitive payments and cancellation options to help students avoid default. Bad Credit Your student loan creditor, the financial institution that loaned you the money, reports information about your defaulted student loan to the credit bureaus: TransUnion, Equifax and Experian....

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