What Is an R7 Credit Rating?

Credit reports contain codes that, when deciphered, can provide the reader of the credit report with more information on how he has handled his finances. R codes go from R1 to R9. In addition to R codes, there are also I codes from I1 to I9. What is a Credit Report? A credit report is a record of your financial past. Creditors report your payment information, balance, payment history and more about your accounts. Account history remains on...

Read More

How to Acquire Corporate Credit

Some business owners choose to use their personal credit rating when applying for business loans and credit cards. While this method can help you acquire business financing, it does nothing to establish credit in your business's name or give your corporation a separate identity. Over time, your business will build its own credit score and history, which lets you apply for loans without using your personal information. Instructions 1 Acquire a business license and register your business name. If you're establishing a new business or corporation,...

Read More

Criteria for a Credit Report

Your credit report contains your credit score, an important number that can determine your financial well being. The report is maintained by the three major credit bureaus: Equifax, TransUnion and Experian. Monitoring your credit report is an essential part of a personal financial strategy. The major criteria for a credit report are payment history, amounts owed, length of credit history, new credit and types of credit. Identification ...

Read More

What Are the Different Credit Bureaus?

Credit bureaus are private companies that are in the business of collecting information about consumer credit behavior and selling it to businesses that need it. According to the Federal Citizen Information Center, there are three main consumer credit bureaus in the United States: Equifax, TransUnion and Experian. Experian Experian, which is based in Dublin, Ireland, is the largest of the three consumer credit reporting agencies, with about...

Read More

How to Build Perfect Credit

To build perfect credit you need to pay your debts on time. Avoid bad credit such as foreclosures, bankruptcy, judgments, liens and repossessions which will have a devastating impact on your credit score. A credit score will determine if your credit is perfect, excellent, good, fair or bad. Scores are used by lenders to determine your level of risk. The range for credit scores is 300 to 850 and the higher your score the better your credit. To build perfect credit focus in on those categories that impact your credit score the most. Instructions...

Read More

How to Raise a Credit Score by 50 Points

Perhaps you have gotten into financial difficulty and your credit score is a little worse for wear. Or maybe you have okay credit, but you would like to see it improved. According to a recent federal study, more than 30 million people have credit scores that are under 620, and they are considered risky by many lenders. Having less than perfect credit, these people have a problem getting loans or credit cards; and when they do, the interest rates are higher than if they improved their credit scores. Read on if you'd like to raise your credit scores...

Read More

Does Having a Zero Balance Hurt Your Credit Score?

A zero balance on your credit accounts does not necessarily hurt your credit score. However, in a June 2011 Bankrate.com article, Leslie McFadden noted that Barry Paperno, FICO consumer operations manager, suggests that carrying a very small balance is often better than a zero balance for your credit score. Credit Score Basics To fully understand the impact of zero balances on credit accounts you need to know the basic factors that affect your credit score. According to MyFICO, a site owned and operated the Fair Isaac Corporation, credit...

Read More

How Long Does a Default Stay on an Account?

Every time you apply for credit, the prospective lender checks your credit report on file with one or all of the three major credit bureaus -- Equifax, Experian and TransUnion. If you have a default in your file, your chances of securing the funds you need are diminished. Lenders generally won't report a default to the credit bureaus until they've tried to work with you to resolve any problems, so having one on your file is a sign that you've either...

Read More

Step-by-Step Credit Report Repair

If your credit report is littered with late payments, charge-offs or a bankruptcy, you may find it difficult to get credit, rent a home or even get a job. Repairing your credit is not something you can accomplish overnight, but with a little time and some hard work, you can improve your credit report. Check Your Credit Report Know what's on your credit report that could be causing you problems. You're entitled to one free credit report per year from each of the three major credit bureaus, Experian, TransUnion, and Equifax. Request a...

Read More

The Effects of a Credit Inquiry on the FICO

A credit score is very sensitive to credit inquiries from third parties. While some inquiries may have no effect on it, others can damage an already low score even further. Every time you respond to a credit card offer or apply for an auto loan, your credit score decreases by several points. Soft Inquiry A soft inquiry, also known as a soft pull, comes from existing relationships with creditors and does not make a negative effect on the FICO score. Lenders usually use soft pull for loan pre-approvals. Your own inquiry into your credit report...

Read More

How to Get a Foreclosure Off a Credit Report

Besides bringing down a FICO score, having a foreclosure on your credit report will also negatively affect your ability to purchase another home. Depending on your state laws, a foreclosure will typically stay on a credit report for seven to ten years. Many lenders will not finance someone who has a foreclosure on his or her credit report. It can also be difficult to rent a home after a foreclosure. To get a foreclosure off your credit report, follow the steps below. Instructions 1 Wait the seven to ten years for the foreclosure to automatically...

Read More

How to Fix My Credit in North Carolina

Multiple resources are available to help you fix your credit in North Carolina. Nonprofit financial counseling agencies, such as those affiliated with Consumer Credit Counseling Service (CCCS) are available throughout the state. Their services are often free, with a variety of help available ranging from financial literacy classes to a complete examination of your finances and credit reports. A number of for-profit credit repair firms are also available...

Read More

Tips on How to Increase Credit Score Quickly

In general, it takes time to build a positive credit profile. Your credit score is based on a number of factors, such as when and how you pay your bills, how much credit you use, and how often you apply for credit. Over time, you credit score can change based on your changing situation. When you are preparing to make a major financial decision and need your score higher in a hurry, these tips might help boost your score quickly. Fix Errors The credit industry is notorious for errors on personal credit accounts, and an invalid account or...

Read More

What is the Best Way to Increase Your Credit Score Quickly?

Increasing your credit score or rating can make you a more attractive candidate for a mortgage or auto loan. Even if your score isn't horribly low, employing a few techniques can quickly add points to your score. Effects of Paying Off Debt Writing a check and completely eliminating your credit card debt can quickly increase your credit score. The amount you owe has a major impact on credit scoring, and people with minimum or no credit card debt tend to have higher credit ratings. Benefits of Paying on Time Forgetting to send in payments...

Read More

How to Get Collection Agencies to Remove Negative Credit

If a collection agency is handling your account, there is a good chance that you have some negative information on your credit file. To have it removed there is a certain process you have to go through. In some cases you will not be able to get the information removed until the necessary time has passed. Negative information can lower your credit score, which can affect your ability to receive credit in the future. If you are approved, you may have to pay higher rates of interest and some fees. Instructions 1 Call the collection agency....

Read More

What Is an Alternative Credit Score?

When an individual applies for a loan or credit card with a bank, the bank pulls and evaluates his FICO score before approving his application. FICO scores are calculated by the Fair Isaac Corporation and are the industry standard for credit scoring. Unfortunately, not everyone has a FICO score. This can lead to responsible consumers being turned down for loans. In cases where a FICO score isn't available, an alternative credit score may take its place Facts All credit scores are based on the information present within a consumer's credit...

Read More

How Do I Get a Free Credit Report That Doesn't Require a Credit Card?

Television commercials and online ads for free credit reports are common, but the Federal Trade Commission (FTC) warns that they have a catch. You must buy something and pay for it with a credit card or sign up for some type of trial membership in order to qualify for a free report. The Fair Credit Reporting Act entitles you to free Equifax, Experian and TransUnion reports every year without entering a credit card number, but they must be ordered...

Read More

How to Obtain a Good Credit Rating

Credit scores range from 375 to 900 points. According to the U.S. Department of Commerce, a score of 680 or higher is considered a good, or "A," credit rating. Maintaining a high score makes it easier for you to qualify for credit, such as mortgages, auto financing and credit cards. You also qualify for lower interest rates on these loans when your rating is good. Even if your credit rating is currently lower than you would like, you can take steps...

Read More

Is There Anything That Cannot Be in My Credit Report?

A credit report is a document that contains a history of your financial activities. Three main agencies compile the information that goes into your credit report: Experian, Trans Union and Equifax. Each credit agency may have slightly different information about your history with credit, employment and inquiries by potential lenders. However, there are some items that are never included on your credit report. Information Not Allowed in Your Credit Report According to Experian's customer service website, information in your credit report...

Read More

What Can Drop Your Credit Score?

You can spend years building a high credit score, but it only takes a mistake or two to trash it. Some actions, such as letting a credit card go into collections, have a larger impact on your score than other actions, but many things can cause your credit score to drop. The Fair Isaac Corp. considers several items, such as debt, payments and open accounts, when factoring your score. Making a mistake in any of these areas will cost you. Misguided Payment History Bankrate reports that as of 2011, your payment history makes up 35 percent of...

Read More

Will My Credit Score Affect My Fiance's Once We Are Married?

The short answer to this question is no: getting married won't affect either of your credit scores. However, because married people often commingle their finances, your debts and expenses will often end up affecting one another's credit scores over the years. The most common example is joint debt, where both of you sign for a high-ticket loan like a mortgage or a car loan -- but there are other ways you will affect your spouse. There are also strategies for one spouse to help the other improve his credit score. Your Credit is Your Credit ...

Read More

Does My Wife's Credit Affect Me?

When considering the joys of matrimony, dealing with the blending of finances can wind up fairly low on the list. It can be as simple as sharing a bank account or as difficult as trying to tell your spouse that you don't care to be associated with her poor credit history. One question that arises as couples build a future together is how much one spouse is impacted by his partner's credit score. Seen as Individuals There is no "our" credit...

Read More

How to Remove Federal Tax Liens on a Credit Report After the Statute of Limitations

Negative credit marks, which include public records such as a federal tax lien filing, can only appear on your credit report for ten years. Once this period of time has finished, you may request that the lien is removed from the report. The ten years is counted from the paid date of the lien, as opposed to the date it is actually entered on the credit report. Some states do not have a statute of limitations on tax collection, so you need to check your state's statutes prior to attempting to remove the lien from your credit report. Instructions...

Read More

How Much Can a Notice of Federal Lien Hurt Your Credit Score?

When you owe taxes to the federal government and do not pay your tax liability, the Internal Revenue Services (IRS) will file a lien against your property. You will then receive a Notice of Federal Tax Lien notifying you that the lien was filed. IRS liens automatically attach to all of your assets, such as your home and vehicle, and damage your credit score. Tax Liens A tax lien is a matter of public record and along with bankruptcies, judgments and foreclosures, serves as one of the many derogatory public records that can appear on your...

Read More

Do I Need to Buy My FICO Score?

Your FICO score is one of the most important numbers in your life, but you may have to pay to know what your score is. Even if you pay for your FICO score, you may not get the one that a lender sees or uses. But for some people it might be enough to get a close estimate. Misconception The Fair Credit Reporting Act gives you the right to view your credit report from each credit bureau for free every year but does not entitle you to a free credit score calculation. Credit scoring algorithms are not necessarily owned by the credit bureaus...

Read More

How Long Does It Take to Repair Credit?

There are many companies that promise to instantly repair your credit history. This is impossible. It can take years to rebuild your credit history and raise your credit score. Features Your credit history is a record of all of your borrowing from the last seven years. It also includes things like bankruptcies, court judgments and liens. Time Frame Most of the information stays on your credit report for seven years. After that, it's erased. Bankruptcies can stay on your credit report for up to 13 years. Certain things, like defaults...

Read More

What to Do to Improve a Credit Score

A bad credit score can affect your ability to get more credit, rent an apartment or even get certain types of jobs. But having bad credit doesn't have to be a permanent situation. You can improve your credit over time by taking certain steps to use credit responsibly. Check Your Credit Report Regularly You are entitled to one free credit report every year from each credit reporting agency. Although free reports don't include a score, you can still see everything else on your report, such as balances and delinquencies. Credit report inaccuracies...

Read More

How to Erase Bad Credit From a Credit File

Bad credit on your credit file reduces your credit rating, and after checking your credit file, lenders may not approve your credit application. It takes time to remove negative items from your credit file and repair a low credit rating. But the sooner you begin fixing your bad credit history, the sooner you can get a mortgage, auto loan or other type of financing with a low interest rate and better terms. Instructions 1 Assess the negative items on your credit file. Annual Credit Report provides every consumer with one free report each...

Read More

Good Credit Score for a College Student

Many college students are in their early adulthood and thus just starting to build credit. Unfortunately, students sometimes are careless with credit, running up credit cards and failing to pay on time. However, how well they handle credit during the college years can decide whether or not they can get the loans they need to complete their educations, and whether they can land jobs, finance cars and get mortgages after they graduate. Building...

Read More

How Long Is It for Debts to Be Removed From a Credit Report?

Debt information that is positive can remain on credit reports indefinitely. A borrower who never misses a payment on an active credit card may see the account remain on the credit report for more than a decade. Most people want good credit history to remain on their credit report because it boosts credit scores. However, there are federal laws regulating how long negative credit information can remain on credit reports. Limitations Negative credit information includes missed payments, balances over the credit limit, debts that are settled...

Read More

Will an Increase in a Credit Line Affect a Credit Score?

With most Americans having multiple lines of credit at any given time, usually in the form of credit cards, a reasonable question is whether increases to a credit line will impact a credit score. The answer is that it depends on how you treat the extra credit you get, whether the credit card company issues an inquiry and what else is happening with other areas of your credit. Debt Utilization Ratio Part of your credit score is your debt utilization...

Read More

If I'm Being Sued for Medical Bills, How Will This Affect My Credit?

Medical bills differ from other types of debt in the fact that you don't always know how much treatment costs until after your hospital or physician administers it. This could leave you facing a much higher bill than you originally anticipated. Although seeking medical care isn't always optional, you are still responsible for paying the bills associated with any doctor's visit or procedure. If you fail to do so, you could face a lawsuit and damaged credit. Losing the Lawsuit Being sued by your health care provider or a collection agency...

Read More

Short Sale & Credit Rating

Late mortgage payments make your credit score tank, especially when combined with other delinquent accounts, since the MyFICO credit score website advises that 35 percent of your score is based on how you pay your bills. Foreclosure makes things even worse, but you can sometimes avoid losing your home and minimize credit rating damage by getting your lender to agree to a short sale. Definition A short sale means selling your house for less than your outstanding loan balance, according to Maxine Sweet of the Experian credit bureau. Your...

Read More

Tips for Couples With Different Credit Scores

Couples in a relationship can differ in how they manage money. This may translate into differences in their credit profiles. Whether you and your partner are married doesn't matter. Financial woes are a common problem couples face. One partner's credit score can affect the other. If you apply for credit together, one bad credit score can affect both of you. Separate Credit Scores Different credit scores for couples who have not been together...

Read More

How to Remove a Duplicate Credit Report Entry

The credit report has become central to life in the United States. The information held on this report can either help or hinder you in getting a job, car, apartment, mortgage, credit card, loan or more. Having duplicate entries on a credit report is a common error and is usually due to credit sources reporting slightly varied information to the credit reporting agency. When this happens, a duplicate entry may appear. It is possible to have duplicate entries removed or consolidated in a few simple steps. Instructions 1 Order and examine...

Read More

How Long Does a Short Sale Stay on a Credit Report?

Short Sale Selling a house short means that an individual has worked out an agreement with the lender wherein the lender is willing to accept less than the current balance on the mortgage, provided that the current homeowner can find a viable buyer within an acceptable period of time. Short sales have become a popular alternative to foreclosures in many markets around the country because the long term ramifications on credit are not as detrimental as a foreclosure filing and judgment would be. However, should a short sale be unsuccessful,...

Read More

About Low Interest Credit Cards

If you want to make an expensive purchase, but you don't have the cash, use a low interest credit card and pay off the balance within a few months. Low interest credit cards are ideal because they offer a low or zero percent interest rate. Thus, the bulk of monthly payments go towards reducing the balance. In turn, you'll keep your debts low, and you'll have money in your pocket to spend on other things. Types There are two types of low interest credit cards. Some credit cards offer a low introductory rate, in which the low interest is...

Read More

How to File a Bad Credit Report

Having a good credit report is very important. Your credit can make the difference in qualifying for a loan. Even with carefully management of your credit, there are times when mistakes can show up in your credit report. However, credit bureaus have effective ways for you to file a dispute. There are also laws that help you if the dispute is not resolved in a timely fashion. Instructions 1 Purchase a credit report through one of the credit...

Read More