How Much Can I Raise My Credit Score If I Pay Off My Debts?

The purpose of the credit scoring system is to assist lenders by helping them identify those consumers most likely to repay their debts. To your bank, a low credit score means you are less likely to meet your financial obligations than someone with a high credit score. Because of this, banks, credit card companies and other businesses are less likely to deny applications from consumers with high credit scores. One way you can increase your credit...

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What Credit Reporting Agency Do Most Creditors Use?

When creditors are deciding whether or not to issue a loan to an applicant, they check the person's credit scores from the most commonly used credit bureaus. There are three credit reporting agencies that are used nationwide. For credit scores, almost all lenders rely on the FICO score, but some have started using the VantageScore on an experimental basis. Major Bureaus The three major bureaus are Experian, Equifax and TransUnion. Equifax is the oldest, founded in 1899. TransUnion was founded in 1968, and Experian was founded in 1980. These...

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What Credit Past Will Affect Hiring for a Job?

Almost half of all employers require a credit check for some positions, and 13 percent of companies perform checks for any position, according to a 2010 Society for Human Resource Management survey. The major national credit bureaus sell a special type of credit report for employers. An employer credit report is almost the same thing as a regular consumer credit history. Identification Employers that perform a credit check almost exclusively use reports from the three national credit bureaus -- Experian, Equifax and TransUnion. A credit...

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Will Paying Bills With a Credit Card Hurt My Credit Score?

Credit cards offer a convenient way to make purchases, including goods and services you can pay for on the Internet. One way to use credit cards online is to pay bills with them, including utility bills, traffic tickets, bank fees and even rent. Paying bills online with a credit card can have an impact on your credit score, both in a positive and negative way. Available Credit One way that paying your bills online with a credit card can hurt...

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What Accounts Are Not Reported to Credit Bureaus?

Credit reports contain information pertaining to your management of credit accounts such as loans, mortgages and credit cards. Banks and credit unions do not typically report information relating to other kinds of accounts. Additionally, details of accounts that you establish with service providers are not usually reported to credit reporting agencies. Deposit Relationships Lenders use credit reports to determine whether you have a history of paying your debts as agreed. Consequently, lenders have no interest in data relating to deposit...

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What Is the Highest Credit Rating Available?

Credit ratings can go from R0 to R9. The highest credit rating you can receive is an R1. The "R" stands for revolving account. The rating you receive will depend on how you pay your various credit accounts. Definition An R1 means that you are paying a creditor on time or as agreed. Payments are received before they are 30 days late. Effects When an account has a number of accounts that are rated R1, it will have a positive effect on your credit report. This will increase your credit score. Bad Debt The lowest credit...

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What Happens to My Credit Rating If I Pay Off All My Credit Cards?

Your credit score is sensitive to many different financial actions. For instance, the score increases when you make timely payments and drops when you send money late. Scorers consider all your accounts, including credit cards, and your credit rating is affected if you pay off all of the cards. Benefits Your score goes up when you pay off any account, including installment loans like auto financing and student loans, but revolving debts like credit cards have the biggest positive impact. MSN Money writer Liz Pulliam Weston explains that...

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How to Apply for a Mobile Home Loan After Bankruptcy

Bankruptcy can be a serious black mark on your credit report. It will make obtaining loans very difficult but not impossible. Bankruptcy can actually help you get a fresh start and eradicate debts owed in the past. Cleaning up credit will make it easier to qualify for a mobile home loan as long as you can prove you are financially responsible. Instructions 1 Improve your credit score after filing for bankruptcy. One of the most important...

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A Guide to Credit Ratings

There are good reasons to establish a credit rating. Ratings or scores are three-digit numbers between 300 and 850. Higher ratings signal good credit habits, whereas a score below 650 indicates credit problems. But even if you know very little about credit ratings and factors that affect your score, you can educate yourself and build a high rating. Importance The importance of a good credit rating is apparent when applying for vehicle financing...

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Collections and Credit Rating

Your credit rating encompasses the information on your credit reports and your credit score as calculated by FICO and the Equifax, TransUnion and Experian reporting agencies. Many credt-related factors influence your rating, the Federal Reserve Bank of San Francisco explains. You look bad to creditors when you stop paying your accounts and they get turned over to collection agencies. Definition Collections on your credit report refer to accounts that have been turned over to a debt collection agency. The original delinquent account shows...

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How to Freeze People From Pulling My Credit Report

Too many inquiries about your credit reports could drop your credit score several points. Your credit score affects your ability to get loans and the interest rates you pay on those loans. You can effectively prevent people from pulling your credit reports by contacting the three major credit rating bureaus. Freezing your credit reports will prevent others from looking at your credit history and credit score and using that information for fraudulent...

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How a Credit Bureau Functions

Information There are three major credit bureaus--Experian, TransUnion and Equifax--and all three gather information on consumers when they get a loan or credit card, or use credit in some other way. Companies such as Visa and MasterCard issuers, banks that make loans, cell phone carriers and others all report your account and payment history to the three credit bureaus each month. Consumer Files Using the information passed along by...

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How Long Does Negative Information Stay on Your Credit?

Negative items such as late payments, judgments, liens and charge-offs will haunt any credit record. For how long depends on the type of negative information and what the consumer does to remedy the situation. Late Payments Late payments will show up on an average credit report for two years, as long as the account is open. A credit report will reflect payment history for the most current two years. If the account is closed, that late-payment history will show up until the account is removed, up to seven years later. The older the late...

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What Is a Safe Credit Score Number?

Few numbers are as important today as your credit score. Lenders, whether they're approving mortgage, auto, personal or business loans, rely on this score to determine not only if you qualify for a loan, but also what interest rates you'll pay. A low credit score means that you'll pay higher interest rates. Knowing the basics about what makes a bad credit score can help you decide when to apply for a loan and when to wait. A Bad Credit Score...

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Is Alimony on Credit Reports?

Information about alimony agreements does not appear on credit reports. The reporting agencies are more interested in how responsible you are in paying your bills, and they also monitor any derogatory information about your financial status, such as judgments, liens, foreclosures, charge-offs and bankruptcies. Disclosing Alimony Disclosures about alimony arrangements are made by the consumer. When you fill out an application for credit, lenders by law are allowed to ask if you are obligated to make any alimony or child support payments....

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How Does a Tax Lien Affect Your Credit?

A tax lien is one of the final collection steps that a government takes in order to collect a tax debt that it is owed. It involves making a legal claim against the property of a person or company who owes taxes that are past due. A tax lien not only affects the ownership status of the property, it also affects the owner's credit rating. Significance Tax liens appear on your credit report as a public record. Other examples of public records...

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What Credit Information Makes up the FICO Score?

Fair Isaac Corporation provides one of the credit scores that lenders use when evaluating your credit application. Your "FICO" score is a number between 300 and 850, with a low number indicating a risky borrower and a high number indicating a low-risk borrower with good credit history. You actually have three credit ratings, one from each of the major credit bureaus, and all are based on a few types of information that appears on your credit report at that bureau. Payment History The most important factor in your credit score is your payment...

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How to Rebuild Credit With No Security Deposits

Credit issues can influence your ability to purchase a vehicle, a home and get a job. Even if your credit score is suffering, there are several changes that will help rebuild credit without a security deposit. Using the credit you have to build a positive history and looking for possible credit reporting errors can help rebuild your credit over time. Instructions 1 Pay existing bills on time. This might seem like common sense, but according...

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Where Can I Find My FICO Score?

A FICO score is what retailers and financial institutions use to judge your ability to pay your bills and repay loans. Consumers can check their credit history to make sure there are no irregularities on the report. There are myriad ways to get your score from credit-reporting companies, personal finance sites and FICO itself. Annualcreditreport.com Credit scores are usually not given to you by banks or others who check your report. You can...

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How to Check Credit Report

It is a good habit to regularly check your credit report to review your credit score and look for any changes that may affect your credit rating. Also, people who are worried about suspicious activity can also view their credit report to inform authorities about potential identity theft and put a fraud alert on the credit report. Luckily you can check your credit report for free through various credit reporting agencies. Instructions 1 Go to the Annual Credit Report website (see Resources). This site is backed by the Federal Trade Commission...

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Equifax Vs. Transunion Score

Equifax and TransUnion are agencies, which report people's credit history with information received from retailers, banks, collection agencies and mortgage lenders. Equifax has been in business since 1899 and TransUnion since 1969. Comparison Equifax has offices in 15 countries on three continents, TransUnion has offices in 25 countries on five continents. Score Equifax uses Score Power to report people's FICO scores that range from...

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How Will a Deed-in-Lieu Affect My Credit in California?

In 2010, California had the third highest foreclosure rate in the United States, with 1 out of out every 240 homes in foreclosure. Many of these homeowners choose to give the bank the deed to the home, or deed-in-lieu, instead of trying to pay the mortgage. However, if you choose a deed-in-lieu of foreclosure, it affects your credit the same way as in any other state. Identification A deed-in-lieu of foreclosure has the same impact on your credit score no matter where you live. Depending on your credit history and credit score before you...

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Are There Any Legal Ways of Getting Bankruptcy Off Your Credit Report After Four Years?

Going through a bankruptcy can do significant damage to your credit score, and any time you can get a bankruptcy off your credit report early will help your score. Federal law dictates how long a bankruptcy, and other negative factors, must remain on your credit score, and you can only get it removed if it is there in error. Mandatory Period If you go through a bankruptcy, your credit report will reflect this for up to 10 years from the date...

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How to Recover From Personal Bankruptcy

Filing personal bankruptcy stops harassing phone calls from creditors and gives you the chance to wipe out your debts and make a fresh start. While you're no longer liable for debts after a bankruptcy, this process ruins your personal credit score. A low score can stop you from getting a mortgage loan or auto loan in the future. Thus, it's smart to rebuild your credit score and recover after a personal bankruptcy. Instructions 1 Review your credit report to make sure creditors update your file. Order your credit report from all three credit...

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Does Applying For Credit Lower the Rating?

Credit applications are part of most consumers' lives. People open new credit card accounts, apply for vehicle loans or fill out mortgage applications to buy new homes. Lenders review their credit reports or check their credit scores before opening the account or granting the loan. These inquiries are all noted by the credit bureaus and become part of the consumers' files, where they may affect future creditor decisions, according to the FICO credit score company. Factors Many factors go into determining a person's credit rating, including...

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What Is a FICO Score Based on?

The Fair Isaac Corporation, also known as FICO, uses an individual's credit information in order to come up with a score which can range from 300 to 850. Lenders are then able to review the score and determine an individual's creditworthiness. The Facts A FICO score reflects the information found in an individual's credit report, which is available through any one of the three credit bureaus including Equifax, Experian and TransUnion. Information...

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Does Accepting a Settlement From a Debt Collector Affect Your Credit?

Your credit rating is a time-sensitive picture of your financial health through a collection of personal and credit account information. Lenders, potential insurers, employers and landlords use your credit score to determine if you are credit worthy. Accepting a settlement from a debt collector will affect your credit, but you can control the extent of the impact. What is a Settlement? Your three-digit credit score is calculated based on the information provided to the credit reporting agencies from existing and potential lenders as well...

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What Credit Score Do I Need to Rent an Apartment?

Your credit score can affect many aspects of your financial life, including your ability to rent an apartment. Along with your income, your credit score is a key factor on most apartment applications. Landlords use your credit score to gauge whether you will reliably pay your rent on time. A bad credit score makes finding an apartment more difficult, although not impossible. Key Score A credit score of 680 or higher is considered "fair or better" and generally makes renting an apartment easy. According to a study conducted by the credit...

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How to Get Damaging Information Off of My Credit Report

Removing damaging information from your credit important can improve your credit score. Information such as collection accounts, charge offs, late payments, foreclosures and bankruptcies can harm your credit for years. The Federal Trade Commission reports that federal law allows credit bureaus to report most negative credit information for seven years. The credit bureaus can list bankruptcy information on reports for at least 10 years. Removing negative information that is accurate and timely is impossible, according to the FTC, although there...

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Can One Speeding Ticket Affect Your Credit Score?

Going a few miles per hour over the speed limit could cost you thousands of dollars on a mortgage, if you can get one at all. However, a speeding ticket does not always damage your credit rating, because the governing authority decides how to collect speeding fines. Thus, you should make a good faith attempt to pay the fine. Identification A single speeding ticket can affect your credit. Although governments do not report tickets directly to the credit reporting bureaus, the government can send the fine to a collection agency who then reports...

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Does a Credit Report Freeze Block Your Credit Score?

Credit Report Freeze Blocks New Access A credit report freeze blocks your credit file, including your credit score, from new inquiries. All three credit bureaus can charge a fee to freeze credit reports as well as to lift or remove a freeze from credit reports. Fees vary between $3 and $20 by state; a few states allow freezing services. Fees may be waived for consumers targeted for identity theft. Credit Scores Available During Freeze A credit report freeze does not block existing lenders from accessing your credit report activity...

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How to Increase a Credit Score With Lines of Credit

Caution and planning need to be applied when trying to increase your credit score -- especially if you are using new lines of credit. Every time you apply for a loan or increased credit limit, a mark is placed against your credit score. Too many applications in a short space of time will result in your credit score being downgraded, the very opposite of what you are trying to achieve. Lenders get nervous about multiple applications because it indicates...

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How to Get Your Credit Report by Calling

Ordering your credit report by phone is one of the safest methods, according to Bankrate.com. You don't risk your check or money order getting lost or stolen in the mail; you also eliminate the risk of online fraud. Each credit agency (Equifax, Transunion and Experian) allows you to order a copy of your credit report by telephone. You can also request your free annual report by telephone. Instructions 1 Request your free annual credit report by calling Annual Credit Report at 1-877-322-8228. All consumers are entitled to a free copy of their...

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