How to Dispute an Old Utility Bill on a Credit Report

Potential creditors, employers and landlords use information found on your credit report to evaluate your fiscal responsibility. This information can include credit card accounts, loans and even accounts with utility companies. If your report contains negative information from a utility bill that you believe is incorrect, you can dispute that information with the credit bureau that prepared the report; if they are unable to validate the debt, it will be removed from your report. There are three major credit bureaus, and they operate independently...

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How Often Can You Get a Copy of Your Credit Report?

When it comes to credit reports, credit history and credit scores, consumers may feel overwhelmed by the volume of information and advice available. Mastering the basics, including how often you can obtain a copy of your credit report, can help you avoid potential risks, such as identity theft, while addressing debt issues. Purpose Your credit report contains information about the amount of debt you've accumulated, your payment history and types of accounts you opened, including installment loans (such as student loans) and revolving accounts...

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If You Pay Off a Bank Loan, How Long Does it Take to Report it on Your Credit Report?

Once you finally pay off a loan, you may be happy to have that burden off your shoulders -- and the credit boost that should come with it. You will probably have to wait at least a few months for the account to register as paid off on your report. If it has no history, it may never hit your credit report. Identification After making that last payment on your bank loan, the lender usually reports the account as "paid as agreed" by the end...

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Derogatory Information on Credit Reports

Derogatory information on your credit report can cause a lending institution to deny your application for a loan legally. This negative information can include bankruptcies, late payments and high amounts of debt. Three credit bureaus keep information about your credit history: Experian, TransUnion and Equifax. Derogatory information can stay on your credit report for up to seven years, but bankruptcies can stay on a report for 10 years. Impact Derogatory information on your credit report will do more than just lower your credit score and...

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What Does it Mean to Have to Get a Background Check for a Job?

A background check is a review of a person's past actions, with an eye toward their reputation and honesty. Background checks differ in their depth, sophistication and instrusiveness. In its shallowest form, an employer may fact-check an applicant's resume to determine if it is accurate. On the other end of the spectrum, employers may conduct a credit check and a criminal background check. For jobs in the security industry or with top-secret clearances,...

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What Are the Secrets for Credit Repair?

Credit-repair companies imply that there are secrets to fixing bad credit. They make elaborate promises, but the Federal Trade Commission (FTC) warns that most of these are false. There is no way to wipe out legitimate negative items on your credit report or legally create a new file. You do not need a credit-repair firm because you can use your legal rights and knowledge of how FICO and other credit score providers calculate your number to make your own repairs. Erase Negative Items You cannot erase bad entries on your credit reports if...

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Ways to Build Credit If You Don't Have Credit

Auto lenders, mortgage lenders and some insurance companies will request your credit history before doing business with you. No credit history or score can trigger a rejection or an extremely high interest rate. Fortunately, there are ways to get around no credit history. Building credit is key to proving to lenders and creditors that you're responsible and worthy of good financing deals. Consider a few ways to build credit from scratch. Quick Credit Report If you're a young adult looking to quickly build your credit history, ask one of...

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How to Fix a Really Bad Credit Score

According to myFICO, your credit score is composed of five factors: payment history (35 percent), the amounts that you currently owe (30 percent), how much new credit you have or have recently applied for (10 percent), the kinds of credit you have (10 percent), and how long your credit history is (35 percent). These factors can have different importances in your score, depending on your personal situation. The lower your credit score, the fewer credit...

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What Are the Causes of a Low FICO Score?

The FICO score is an important measurement used by lenders in determining whether a person is a good credit risk. Credit mismanagement over time causes a person to develop a low FICO score and results in less available credit and higher interest rates. Identification The FICO score is a mathematical calculation that serves to predict whether a person is a good financial risk. According to myFICO.com, the FICO score is calculated by looking at the following five categories of a person's credit report: payment history, amounts owed, length...

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The Objective and Importance of Credit Ratings

Anytime that you apply for credit, whether it be for a credit card, auto loan or home loan, a lender will review your credit report and determine your credit rating. The higher your rating, the more likely you are to qualify, as well as to nab higher loan amounts and lower interest rates. A high credit rating can offer you a degree of financial freedom that those with a low rating may never see. Home Loans Your credit rating will most likely determine whether or not you become a homeowner. Home loans, home equity loans and re-financing...

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How to Raise a Credit Score Instantly

A good credit score determines many factors in our lives. Credit scores are increasingly being used to evaluate consumers in more ways then just qualification for loans. Life and auto insurance companies are using credit scores to determine policy rates. Credit scores determine loan interest rates. Employers are using credit scores as a factor of employment. Raising credit scores is, generally, a process that takes several months; but there is one...

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Will Early Mortgage Payoff Negatively Affect Credit Rating?

Mortgages are usually the largest loan for a borrower, but paying it off might not be the best thing for your credit score or your money. Paying off that mortgage now could drop your score enough that it takes you out of the best credit score tier and make loans, such as a future second mortgage, more expensive. However, you must consider how much you can save by paying early. Identification Paying off a mortgage may or may not negatively affect your credit rating. There are so many factors that go into the FICO score calculation that nothing...

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Why Does My Credit Score Keep Changing?

Your credit score is a measurement of how well you manage credit. It takes into account how much credit you have, how long you have had credit, how much debt you have and whether you pay your bills on time. Because of this, it changes over time as new information is added to your credit report and as old information drops off. Calculating Your Score The Fair Isaac Corp. weighs different aspects of your credit use to produce its proprietary FICO score, which is the most commonly used credit score. The FICO scoring model gives the most weight...

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What Would Cause Your FICO Score to Drop?

Your FICO credit score can drop for several reasons. Fortunately, most are preventable if you effectively manage your money and understand how the credit score formula works. Building a good credit score and history is tough enough when you follow all of the rules. There are some ways that your credit score can decline -- once these are on your report, particularly the more negative items, it makes increasing your score even more difficult. Too...

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How to Get Credit Questions & Answers for Free

The Internet makes it easy to get your credit question answered quickly for free. Some broadcasters' free videos, through TV websites or YouTube channels, are dedicated to answering emailed questions about credit reports, scores and loans. The wealth of information online about the credit industry continues to grow, making it easier to find answers to your questions. Instructions 1 Think carefully about your credit question and consider what...

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Reasons for Credit Repair

There are sound reasons to worry about your credit score and to improve a low rating. Credit scores carry a lot of weight, and your three-digit number can affect your financing options. Instead of living with a bad credit score and anxiously applying for credit, improve your rating and rest assured knowing that you qualify for the credit that you deserve. Credit Approvals Most adults apply for credit at least once in their lives. They may need credit to buy a house, get an installment loan, finance an automobile or apply for another line...

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How to Obtain an Individual Credit Rating in the U.K.

Credit ratings give guidance to a lender on the risk of lending money to you. Three credit reference agencies operate in the U.K.--Equifax, Experian and Callcredit. These are private companies that gather personal and financial history on you.. They sell this information to would-be lenders. Data held by agencies is either in the public domain or you have previously agreed to its release, usually on credit applications. The Data Protection Act entitles...

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Recommended Credit Score

Your credit score is a number that summarizes your credit risk as a borrower. By far the most frequently used scoring system is the FICO score, used by all three major credit-reporting agencies: TransUnion, Experian, and Equifax. FICO scores range from 300 to a perfect score of 850. As with most things in life, perfection is rare. You should know what credit scores lenders recommend so you can spot problems and work to build your own score if it's...

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Tips to Fix Your Credit After Bankruptcy

Individuals file bankruptcy as a means of debt relief. Oftentimes debt payments become overwhelming and a person's income doesn't allow him to pay off his creditors. To give these persons a fresh start, a judge may grant relief and discharge debts, wherein the person is no longer liable for certain debts. While a bankruptcy can ease the burden of debt, going through this process damages credit scores. It is, however, possible to fix credit after bankruptcy. Secured Credit Cards Applying for an unsecured credit card shortly after a bankruptcy...

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How Can I Check My Credit Rating Online?

Your credit rating affects many areas of your life. If you apply for a new credit card or loan, try to take out an insurance policy or even apply for a job, your credit rating can affect your chances of success. Because of this, you should check your credit rating before applying for credit, insurance or employment. You can do it online through a free and simple process, then correct any errors before you proceed with your application. Website...

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How to improve your credit score immediately and easily

This easy step can quickly and safely help you to raise your credit score. Instructions 1 Find your credit cards and call the number on the back to find out your total credit limit and current balance for every card and write it down. 2 For each card, take your total credit limit and divide by your current balance. Ex: Visa card total credit limit: $10,000 Visa card current balance: $9,500 Take 9,500/10,000 = .95 or 95% 3 All credit cards you have that are around 80% or above, are potentially damaging your credit score....

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What Is R1 & I1 in the Credit Report?

The credit reporting industry sometimes uses what seem like "secret codes" on your report for the status of an account. R1 and I1 are the most critical codes to build your credit score, and you should aim to have an many of these as possible. Although these mean you are a good borrower, do not let them lull you into a false sense of security, however. Identification The "1" in a status code indicates that the account holder has never missed a payment and the alpha character abbreviates the type of debt. "R" stands for a revolving account,...

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What Affects Your Credit History?

A credit history, as the name implies, is a record of a person's credit use. Lenders find it useful because it gives them an idea of how a consumer is likely to handle financial obligations in the future. Someone who always pays bills on time will probably continue to do so, while a spotty payer with many accounts and high balances has a higher chance of defaulting on loans and credit cards. Definition Credit reports contain consumers' credit histories. Equifax, Experian and TransUnion are three independent credit reporting agencies that...

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How Do Home Affordable Refinance & Modification Programs Affect Your Credit?

Borrowers who wish to take advantage of the Obama Administration's Making Home Affordable mortgage relief program may find an unintended consequence: a hit to their credit scores. However, many factors affect the severity of the impact, and it is possible to improve your score over time. If you're struggling with your mortgage, don't let possible damage to your credit score stop you from considering these options. HAMP According to the Making...

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Laws in Kentucky for Medical Bills on Credit Reports

Both federal and state laws impact your rights regarding credit reporting. Most pertinent state laws are under Title XXX (Contracts) and Title XXXI (Debtor-Creditor Relations) of the Kentucky Revised Statutes (KRS), but to determine how the law affects your individual situation, it's necessary to consult an attorney. Medical debt is epidemic throughout Kentucky and across America. The 2007 Commonwealth Fund Biennial Health Insurance Survey determined...

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Can a Mortgage Application Credit Check Lower a Credit Score?

When a person applies for a home loan, the lender will want examine the person's previous credit history. The person's credit rating -- a measurement of the likelihood that he will be able to pay back the loan -- will do much to determine the interest rate he can receive on the loan. However, a credit check made by a lender will generally slightly lower the person's credit score. Features According to the Fair Isaac Corp., the inventors of the modern credit score, when an individual applies for a home loan, he will generally authorize...

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How to Fix Key Derogatory Items on a Credit Report for Free

Key derogatory items refer to any remarks on your credit file that lowers your score and makes it difficult for you to acquire a mortgage loan, credit card, auto loan or small business loan. These remarks include late payments, collection accounts, judgments and charge-offs. Fortunately, there are ways to remove derogatory items from your credit report and improve a low score. You don't need to hire an attorney or credit repair service. By making...

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