Can Taking Out a HELOC Ruin My Credit?

A home equity line of credit, often referred to as a "HELOC" in the banking industry, provides you with the ability to purchase items on credit and pay for those purchases over time. Unlike traditional lines of credit, however, your home serves as collateral on a HELOC. If you do not pay off your purchases, the lender can foreclose on your property. A HELOC provides you with greater purchasing freedom than you previously enjoyed, but under certain...

Read More

Does Your Age Affect Your Credit Score?

Credit scores are a numerical representation of what kind of credit risk you are. Many factors influence your credit score, including the number and types of accounts, your payment history and how long you've had accounts open. Although age by itself isn't a factor in your credit score, age can affect several key items that do directly impact your credit score. How Age Affects Credit Scores Your credit score does not include points related...

Read More

How Do Charge Offs Affect Credit Scores?

Credit card companies spend about six months trying to elicit payments from debtors on delinquent accounts. After six months, the company's odds of collecting the debt decrease and the account is no longer worth pursuing. The credit card company then charges off the debt. Credit card company charge-offs carry negative consequences for your credit score. Negative Effects A charge-off negatively impacts your credit in a variety of ways. The...

Read More

Tricks to Increase Your Credit Score

If you want to buy a home, a car, or just about any other high-priced item, you must have good credit. Building good credit takes time, while ruining credit can be done with just a few poor choices. If you find yourself with a low credit score, know that raising that score is possible. It just takes time and determination. Pay on Time Pay your credit card bill by the due date or before if possible. The credit card company reports the balance and payment history of its accounts to the credit bureaus monthly. Late or missed payments will...

Read More

FICO & Understanding Your Credit Score

When you apply for a loan or credit card, one of the major resources lenders use to determine whether to offer you credit is your credit score. This number is based on all of the information on your credit report and reflects how risky it is for lenders to extend credit to you. The higher your score, the lower your risk to lenders. FICO FICO, which stands for Fair Isaac Corporation, is one of the main companies that calculate credit scores. The FICO score range is from 300 to 850, although most people have a score somewhere in the 600s...

Read More

What Is a Paid Charge Off?

The credit bureaus keep track of your credit history through your creditors. When you fail to pay a debt, a creditor lets the credit bureaus know by changing the status of your account to a charge off. Once you pay the debt, the creditor will change the status to paid charge off. Both statuses have varying negative effects on your credit score and financial future. Basics When you fail to pay a debt, such as a credit card bill, the creditor can report your account to the credit bureaus as a charge off. Bankrate reports that as of 2010,...

Read More

How to Access Equifax Credit Reports

Equifax is one of the three major credit bureaus in the United States, along with TransUnion and Experian. The company collects financial data from banks, credit card companies and other financial institutions and keeps a record of each person's credit history. These credit histories are used to calculate credit scores that are sold to financial institutions who use them as part of the loan application process. Once per year, you are entitled to...

Read More

How to Get My Trans Union Score for Free

Residents of the United States are entitled to one free credit report per year from each of the three credit bureaus---Equifax, TransUnion and Experian. In a joint effort, the three bureaus manage and maintain AnnualCreditReport.com where individuals can receive a free report, however the actual credit score is an additional fee ranging from $5.95 to $7.95 depending on the bureau. For those who wish to check their credit score with TransUnion, an...

Read More

How Much Does a Perfect Credit Score Range?

Your credit score is a simple three-digit number that has a huge impact on your ability to get loans and open new accounts. If you are able to get credit, it can also affect the interest rate you will be required to pay. Many people have no idea what a perfect credit score would be, if it can even be achieved and whether it's really necessary. While there is such a thing as a perfect score, you only need to be within a certain range to be considered...

Read More

How Often Can You Get a Free Credit Report?

Experian, Equifax and TransUnion are the three major credit bureaus that provide credit reports for consumers in the United States. Your credit report determines your credit score, so it is important that the information on the report is accurate and up-to-date. You can obtain a free credit report from each bureau once per year, or more often if you meet specific qualifications. Annually All people in the United States are eligible to receive one free credit report per year from each of the three credit bureaus. To get these free credit...

Read More

Can My Spouse's Credit Affect My Score?

A credit score reflects a consumer's creditworthiness by summarizing the financial information on his credit report. Each consumer has an individual credit score which may fluctuate based on changes in credit history. Getting new credit, co-signing a loan or closing a credit card may have a positive or negative affect on a credit score. Credit Score Calculation Credit score reflects three key areas of a consumer's credit report: accounts (loans, mortgages and credit cards), public records (bankruptcies or tax liens) and inquiries from creditors....

Read More

Information on Rebuilding Your Credit

You can rebuild your credit even after declaring bankruptcy and other extremely disastrous financial situations. Fixing your credit will require you to change bad habits and focus on improving on the factors in the credit scoring formula. As long as you commit to fiscal responsibility, lenders will see past mishaps as time passes. How Long Will It Take? It can take years to raise your score to the good or excellent range -- above 620 -- after...

Read More

Can You Check Your Credit Score Online?

Your credit score is derived from the information about your debts contained in your credit report. As the information on your credit report changes, so too does your credit score. Lenders use both your credit history and your credit score as risk assessment tools when evaluating your applications for loans or credit lines. Not only do consumers have access to their own credit scores, they can obtain their credit score instantly online. FICO Credit Scores FICO credit scores are the ones most frequently utilized by lenders. Your FICO score...

Read More

How to Change an Address on Credit Reports

Credit reports are not always accurate. Under the federal Fair Credit Reporting Act you have the right to dispute any incorrect information that appears on your credit report. The process for changing an address on your credit report involves contacting the three major credit reporting agencies. They are Equifax, Experian and TransUnion. Consumer advocates and financial advisers recommend that you review your credit report periodically to insure...

Read More

What Does an Experian Credit Score Mean?

Credit reporting agencies such as Experian gather data from creditors and from public records and use that information to create individual credit reports and calculate a credit score that attempts to paint a picture of an individual consumer's credit worthiness. Company Information Including the U.S., Experian compiles consumer reports on people in 15 nations and as of 2011, the firm has files on more than 400 million people. In the U.S., two other firms: Equifax and TransUnion also compile consumer credit reports. Credit Reports ...

Read More

How to Obtain a FICO Score for Free

Credit scores are reports that list a person's loan accounts, payments and credit history. The FICO score was created by the Fair Isaac Corporation, the same people who run myFico.com, which allows you to sign up for a free 30-day trial where you can check your credit score from the leading credit reporting agencies such as Experian. In addition to checking your credit score, the free 30-day trial includes tips and guidelines on improving or maintaining your credit score. Instructions 1 Navigate to the MyFico webpage (see resources below)...

Read More

How to Fix My Credit and Make My Credit Better

The consequences of a bad credit history include higher interest rates on credit cards and loan denials. Some employers will not hire you with a low credit score. You can reverse or fix your low credit score. This requires patience and you have to learn how to manage debt better. Once you outline a plan to improve your low credit score and stick with this plan, your credit score will improve and and you will be on your way towards better credit....

Read More

How to Increase FICO Score After Bankruptcy

A bankruptcy discharge provides a fresh start from oppressive debts. But it comes at a cost. FICO scores for people with bankruptcies plummet, and banks, mortgage companies, car finance companies and employers who look at FICO scores can charge people with bankruptcies more interest or decide not to hire them for jobs. There are steps you can follow to get your financial life back on the right track. One of the first things you should do is clean...

Read More

Empirica Credit Score Meaning

The credit rating agency TransUnion uses a credit score called an Empirica score to rate people's credit. This score is not given to consumers but is used only for lenders. Credit scores have many uses, and they affect a person's ability to obtain a loan. Effects Credit scores of consumers can affect many things. The most important is the interest rate consumers pay for mortgage and car loans. The higher a person's credit score, the lower...

Read More

Does Losing a Credit Card Affect Your Credit Score?

If you lose a credit card or realize that it has been stolen, let your credit card company know immediately. The effect of reporting a lost credit card depends on whether and how you choose to replace the credit card. If you take the right steps, you can avoid doing any damage to your credit score. Reporting Lost Card The act of reporting a lost or stolen credit card to your credit card issuer does not affect your credit score at all. Report the loss right away so the issuer can deactivate the credit card and prevent anybody from using...

Read More

Why Is It That Different Credit Websites Give Me Different Credit Scores?

You might have a great credit score from one website, but an awful one from another. Don't worry, because most people get a different score from each website of a credit scoring agency. What matters most is the information in your credit profile and that you have a healthy overall financial outlook. Identification While the national credit bureaus try their best to have the most accurate information possible, they still miss some things that their competitors pick up. Also, some lenders only report to certain credit bureaus. Most people...

Read More

Myths About Inquiries on Credit Reports

Most people don't know how credit inquiries can affect their credit report. There are a lot of rumors and myths floating around about the impact of inquiries. Sometimes an inquiry can have an affect and other times there is no affect or its very minimal or limited. Whenever someone takes a look at your credit report an inquiry appears. You can identify which creditors looked at your report if you can decipher their inquiries. Ordering Your Report There is a myth going around that says looking at your own credit report counts as an inquiry...

Read More

How to Raise My Credit Score by Paying My Bills?

Lenders use credit scores to access your level of risk. Always try to get the highest score you can. A credit score can range from 300 to 850. A high credit score increases the likelihood that you will receive favorable terms on credit cards, auto and mortgage loans. You can raise your credit score by paying your bills. Your credit score is affected by several categories, and how you pay your bills is one of them. When you are 30 days late on a bill,...

Read More

How Long Does Chapter 7 Bankruptcy Stay on a Credit Report?

Chapter 7 Bankruptcy Chapter 7 Bankruptcy is a very specific part of the United States Bankruptcy Code and has a very specific definition. Once a person, referred to in this case as a "debtor," files for Chapter 7 bankruptcy they are allowed to relieve themselves of certain debts they may have accrued. They are also granted protection from any debt collectors by the United States legal system. The downside is that in exchange for relieving...

Read More

How to Write a Consumer Statement

Section 611(b) of the Fair Credit Reporting Act allows consumers to add a 100 word statement to their credit report. Credit bureaus must then make this statement available to any company that obtains a copy of an affected individual's credit file. A consumer statement is an opportunity for you to dispute an entry on your credit file. While a consumer statement won't affect your credit score, it does provide an opportunity to explain any disputed...

Read More

How to Get Wrong Info Off Your Credit Report

The Fair Credit Reporting Act--a federal law--requires credit bureaus to remove any inaccurate information at your request. By law, the bureaus have about 30 days to investigate your claim and remove the inaccurate information. The process for challenging inaccurate information on credit reports is simple, and the Federal Trade Commission strongly encourages you to do it yourself and stay away from so-called credit repair agencies. The agencies are...

Read More

Is There Any Way of Getting a Truly Free FICO Score?

The Fair Credit Reporting Act demands that credit rating agencies give you one free credit report each year, but this does not entitle you to see the FICO score that lenders use when making credit decisions. You can get a free FICO score, but you likely have to risk giving up your credit card information. Trial Offers The major credit bureaus offer a credit report that includes your FICO when you sign up for a credit report monitoring trial service. To make sure this is free, you must cancel the service before the trial period ends. Otherwise,...

Read More

How to Find Out If Someone Has Stolen Your Identity

Criminals use people's names, Social Security numbers or credit card numbers to rack up debt and commit fraud. According to the Federal Trade Commission (FTC), as of 2005, 8.3 million Americans were the victim of identity theft. Most people don't find out until they start noticing subtle red flags, such as strange credit card statements or mail that isn't coming to their home any longer. Instructions 1 Order a credit report. According to the...

Read More

How to Dispute Items on Your Credit Report Online

As a consumer, you have a right to dispute items that are on your credit report. You can dispute the reported items for a variety of reasons, such as outdated information, wrong debt amount listed, or if you are the victim of identity theft. To dispute items, first obtain a copy of your credit report from all three of major credit reporting bureaus, Equifax, TransUnion, and Experian. You are allowed one free copy of your report from each bureau per...

Read More

Does Cancelling My Credit Cards Increase My Credit Score?

There were 173 million credit-card holders in America in 2006, according to the U.S. Census Bureau, projected to grow to 181 million Americans by the end of 2010. It Negatively Affects Your Credit Score Never close a credit card for the sole purpose of raising a credit score, advises myFICO. The Fair Isaac Corporation calculates FICO scores by examining individuals' total used credit in relation to their total available credit....

Read More

Will it Affect My Credit Score If I Cancel My Credit Card With a Balance?

According to Fair Isaac, most American consumers have 13 credit accounts reported to credit bureaus. These include both credit cards and installment loans. For those consumers who are trying to curb spending by using credit cards less, canceling a credit card might not be the wisest choice. You should first consider how canceling a credit card could damage your credit score. Increased Interest Rate If you are thinking about canceling a credit...

Read More

How Long Does an Unpaid Bill Stay on a Credit Report?

The Credit Score Your credit report is a document containing information about all of your debt- related activities. Items such as savings accounts, loans, credit cards and outstanding debts are all found on your credit report. The good information is weighed against the bad information to determine your credit score. If you have a high credit score (above 660), you are likely to get approved for more lines of credit. If you have a low credit...

Read More