The Definition of a Credit File

Credit files are important tools that represent your borrowing history. It is essential to understand what is in a credit file and how to protect your credit score. Several different types of data are kept in your credit file, including the amount of credit available to you, the amount of credit you have used and your payment history. Types of Credit There are two separate and distinct types of credit, or loans, that are given to consumers....

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How to Take a Judgment Off My Credit Score

There are three major credit bureaus that monitor your credit: Experian, Equifax and TransUnion. Each bureau maintains its own reports, which are scaled slightly differently from one another, but each bureau should have the same credit information on you. If a lender reports you as defaulting on a loan, that report goes on your credit report. To remove a negative report, you'll need to prove it's a mistake and dispute it. Instructions Disputing...

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How to Increase Your Credit Score on a Monthly Basis

Credit scores serve as a trust meter for lenders. A low credit score tells lenders that you have credit problems or had problems in the past. Low scores lead to high interest rates and can prevent you from qualifying for a loan or credit card altogether. While your score won't jump 100 points in one month, you can take a poor score to an excellent score by paying your bills, using your credit card and making sure your credit report doesn't contain errors. Instructions 1 Use and pay off your credit card. Using a credit card is one of the...

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Do Pre-Approvals Hurt Your Credit?

When a borrower looks to get a mortgage loan, the bank requires a pre-approval in order to process the mortgage application. During the process, the lender checks the borrower's credit score and report to determine if he can afford to take on the new debt. Each time a borrower's credit is checked, it causes a small dip in his credit score. Having multiple lenders check your credit score within a short time can cause a significant dip in it. Compare...

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How to Add Fraud Alert to Equifax

If you suspect you may have been a victim of identity theft, you may want to add a fraud alert to your Equifax credit report. Equifax, one of the three major credit bureaus, allows consumers to place fraud alerts on their credit reports for free. A fraud alert will send up a "red flag" to a potential creditor or lender, and cause them to pursue additional verification (to make sure it's you--not someone else--who's requesting credit in your name)....

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Who Invented the FICO Score?

FICO stands for Fair Isaac Corporation, which came up with one of several formulas used to calculate a credit score. The FICO score is the most popular and well-know credit score. The term is often used to refer to credit scores in general. History The Fair Isaac Corporation introduced the formula for the FICO score in 1970. It took almost 12 years for the founders of the company, mathematician Earl Isaac and engineer Bill Fair, to write the formula. Features The actual FICO formula is a closely guarded secret. It includes the individual's...

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How to Request a Credit Reference

Whether you are a consumer or in the business of lending money or financing items on credit, know how to request a credit reference. A credit reference provides information about your past borrowing history from other lenders and can be a deterrent to receiving a loan, especially if it indicates many nonpayment or late payment issues. Many companies use your credit scores and references as a method to determine whether you will repay a loan and how...

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Fast Credit Score Help

If you need to raise your credit score in a hurry, such as when you are ready to apply for a mortgage, you can probably see a significant boost within a month when you have certain problems. However, one of the worst things you can do is go to a credit repair clinic, because it cannot do anything you couldn't for free -- meaning you waste money that could have helped you pay off debt. Warning Credit repair companies offer little in the way of fast help other than reciting information widely available on the Internet from reliable sources,...

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What Does Debit Memo Mean on a Bank Statement?

If you want to take ownership over your financial situation, start by learning everything you can about your financial accounts. When you receive your bank statements, don't be so quick to toss them away in a file. Open them from time to time to check the various details. When looking through your statement, be sure to scan through your debit memos. Sections of a Bank Statement When you get your bank statement, understand the various sections. The bank often provides a summary area at the beginning that provides totals of deposits, withdrawals...

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Ways to Re-Establish Your Credit

If you have had credit mishaps in the past, such as debt settlements, accounts in default, foreclosure or bankruptcy, your credit score has likely seen significant damage from these mistakes. In order to get credit in the future, you will need to work on re-establishing your credit history over a period of at least a few years. Check Credit Report After a credit mishap, one of the major things that could be holding you back from rebuilding your credit is having accounts reported incorrectly. Get copies of your credit reports from Experian,...

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How to Raise Your Credit Score When You've Had a Bankruptcy

Fixing your credit score after a bankruptcy is key to moving forward. You can expect a huge drop in your credit score after a bankruptcy. Thus, it's imperative to repair your low score. This helps you acquire lower insurance premiums and better rates on mortgages and auto loans. Instructions 1 Get your report a few months after the discharge. Request a copy of your report from Annual Credit Report to make sure your debts (the ones you selected)...

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Pros & Cons of Credit Cards

Credit cards come with a lot of advantages and disadvantages. If you don't have all of the facts about a credit card there is a chance that it could cost you money. Always pay down your debt whenever possible. Promotional Rate One advantage of having a credit card is the fact that you may be able to receive a zero-percent promotional rate for a period of six months or one year when you do a balance transfer. With a zero- percent rate you pay no finance charges for the entire promotional period. Default Rate If you miss a payment...

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How Can You Increase Your Credit Score Immediately?

If you're being turned down for loans or credit cards, the problem may be that your credit score is too low to qualify. The first thing to do is request a copy of your credit report. You are allowed a free copy from each of the credit reporting agencies annually. Once you know where you stand, you can begin to make positive changes in your score, including some that can be made very quickly. Check the Credit History Information Make sure that your report reflects your most recent information. You might see that the credit limits showing...

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Does Purchasing, and Then Paying Off Debt Increase Credit Score?

A person's credit score is a measure of his creditworthiness, as determined by credit reporting agencies, which compile relevant information about a person's lending history in a credit report. This report contains information about debts that a person has incurred and then paid off. The chief means by which a person can raise his score is to take out credit and then consistently pay it back on time. Credit Scores A credit score is designed to give lenders and other businesses an indication of whether an individual provided a loan will...

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Can Pre-Screening Hurt My Credit Report or Credit Score?

The Fair Credit Reporting Act gives lenders and insurance companies the right to check your credit to see if you qualify for their credit offers. This is referred to as pre-screening, and it's important to know how it affects your credit. Effects When an insurance company or lender pre-screens your credit, this is called a soft inquiry, according to Bankrate. It will appear on your credit report but will not hurt your credit score since you did not apply for credit. The company simply looks at your credit to see if you pre-qualify for any...

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How Is a Credit Rating Determined?

Financial Memoir A credit rating is the financial memoir that you began to pen the moment you created your first bill. Your story may have just started out, it may be mature, or it may have a sequel. But young or old, good or bad, it is uniquely yours. Just like a life story, some financial memoirs are more interesting than others. In order to determine if you have penned a financial work of art, your creditworthiness has to be...

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List of Credit Reporting Agencies

Your credit score is determined using information included in your credit report. Each month, your creditors update your credit history, including the amount of your current debt, late payments or defaults. Creditors report this data to the three major credit reporting agencies. These credit reporting agencies track your relationships with your creditors. Experian Employing over 15,000 people in 40 countries, Experian is a global information agency. Experian offers businesses a range of analytical tools to mitigate the loss of revenue....

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What Variables Are Important to Credit Scoring Models?

Most U.S. residents have a credit score. This score, compiled by credit rating bureaus using a number of different sources of information, is a measurement of the relative likelihood that an individual will pay back a loan. Although each company's scoring model differs slightly, each uses a number of similar variables. Length of Credit History One of the main factors that companies look at is how long an individual's credit history goes back. Generally, those with longer credit histories generally received higher scores, as companies believe...

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How Do Credit Reports Benefit Lenders?

A credit report is a collection of detailed information compiled by a credit bureau to aid in the evaluation of a lender's decisions regarding making loans to the individuals about whom the reports are compiled. The type of information contained in these reports includes personal information, credit history and records of previous credit defaults. By outsourcing the collection of this information to a credit reporting bureau, lenders receive many...

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The Best Way to Raise Your Credit Score

There is never a better time than the present to take the necessary steps to raise your credit score. Your credit score says a lot about you and can either open or close doors for you in the world of credit. Starting Point In order to raise your score, you must know what it is. Start with ordering your credit reports from Experian, Equifax and TransUnion and pay the fee to receive your credit scores (see Resources). When you go to these websites, they seem to offer free reports and free scores. You get the scores if you sign up for their...

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How to Build Credit After a Job Loss & Bankruptcy

Keeping a high credit score can prove challenging during tough economic times. Layoffs and cutbacks force many people to default on credit cards and other loans. If unable to find a quick fix, bankruptcy can become the only alternative. The effects of a bankruptcy, like a low credit score, can linger for up to 10 years. But after re-entering the job market, there are several ways to successfully repair your credit. Instructions 1 Check the accounts on your credit report. After a bankruptcy, debts included in the proceeding should include...

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How Does Chexsystems Affect Credit Ratings?

What is ChexSystems? ChexSystems is a service used by merchants and banks to check the creditworthiness of potential customers. Using a customer's personal information--driver's license and Social Security number--ChexSystems will then advise the bank whether to open or refuse the new checking or savings account. Information about ChexSystems is hard to come by. There is no main website, and the site of the corporate parent, Deluxe Corporation,...

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How to Correct Personal Information on a Credit Report

A credit report is a financial record developed when you initially acquire debt. Credit reporting firms maintain a steady debt profile on you throughout your life. For businesses to accurately report your financial information to the credit bureaus, they must submit your identifying information along with their reports. The credit bureaus receiving the information will then match the personal information submitted to previous records and place the entry onto your credit file. Due to the vast number of reports received on a regular basis by each...

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How to Write a Letter to Dispute Bankruptcy to Credit Reporting Agencies

If you file for bankruptcy, it will negatively impact your credit history for the next 10 years, according to moneybluebook.com. Sometimes mistakes occur and the credit bureaus report that you filed for bankruptcy when you did not. You must correct these errors as soon as possible to ensure you receive favorable interest rates and to avoid problems getting loans at all. Always correct errors in writing so you have a record of your request. Instructions 1 Obtain a copy of your credit report form each of the three bureaus. You can get one...

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How to Establish Credit in My Business Name

Running a business is expensive, and some business owners need credit and loans to stay afloat. You can always apply for a loan in your personal name and use the money for business purposes. However, most business owners want to keep their personal and business finances separate. Thus, they're interested in ways to establish credit in their business name. Instructions 1 Get a business license. Visit your local city hall and apply for a business...

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Financial Credit Rating

Every financial move you make that involves debt is tracked and reported to the credit bureaus. That information is combined to create a number, known as your credit rating or score. Your financial credit rating is a valuable tool when you seek loans or other financial products, so you need to understand how it works and take steps to protect it throughout your life. The Importance of Credit Scores When you apply for any type of debt, including...

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Will Your Credit File Be Updated While You Have a Security Freeze?

A security freeze --- or credit freeze --- is a voluntary option allowing consumers to restrict potential lenders from accessing a personal credit report. Prior to lending, creditors use your credit report to determine creditworthiness and financial responsibility. Generally, a security freeze request helps prevent identity theft by deterring unauthorized individuals from applying for credit in your name. Facts Potential creditors cannot...

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Credit Reports & Background Information

Landlords, prospective employers and banks sometimes run credit reports and background checks on applicants to determine the level of risk involved in doing business together. Background information can provide clues about how well you manage money, whether you're a responsible driver and whether you have a criminal record. While negative marks on your credit report can hurt your chances of landing a job or preferred apartment, applicants have options...

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Ways to Improve a FICO Score

A FICO score is a credit score produced using an algorithm developed by the Fair Isaac Corp. The score uses information from your credit report to estimate your risk as a borrower. A high score can get you more access to loans and preferential interest rates. There is no way to boost a low score overnight, but you can take practical steps to begin to raise your score. Order a Copy of Your Report Credit scores are based on five categories: payment history, length of credit history, amounts owed, new credit applications and the variety of...

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What if I Settled an Account but It Still Shows That I Owe on My Credit Report?

When you settle your debts, you pay a negotiated amount to your collector to close your accounts. The creditor should report this action to the credit bureaus, who should adjust your report accordingly. Check all three credit bureaus -- Experian, Equifax and TransUnion -- and make corrections if one or more of them is not showing the up-to-date information. Gathering Data You'll have to present some sort of proof to the credit agency that you did indeed settle your debt. Gather as many documents as you can to support this. For example,...

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What Is a Credit Scoring System?

Credit Scoring Systems examine your credit report in different ways to rate your creditworthiness. The system itself was developed by Fair Isaac Corporation. Your credit score, frequently referred to as a FICO score, is evaluated by lenders, credit card companies, apartments, banks and some employers. It is vital you appreciate your score and keep it above 660. Under the Federal Equal Credit Opportunity Act and the Fair Credit Reporting Act, your...

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Will Asking for Credit Increase or Hurt a FICO Score?

Credit card companies often increase your limit to induce spending, especially for good customers. You can also ask request a credit limit increase without risking much damage to your FICO credit score. Actually, asking for a credit limit usually increases improves your FICO score because that amount of credit you use is a significant chunk of the FICO score calculation. Benefits Your credit use counts towards 30 percent of your total FICO score, according to the Fair Isaac Corporation. Asking for and receiving an increase will boost your...

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How Much Can Your Credit Score Increase in Six Months to a Year?

There are many reasons for wanting to increase your credit score. A low credit score makes it difficult to get a loan, a mortgage, a car or a credit card. With many employers running credit checks on potential employees, it can even keep you from getting a job. The time it takes to raise your credit score depends on many factors, including what score you start with. Your Credit Score Every time you borrow money, the lender reports it to one...

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Can a Past Due Energy Bill Affect Your Credit Score?

Utility bills are one of the most dangerous recurring expenses for your credit rating, because the best-case scenario is that they have a neutral effect on your credit rating. You can probably prevent an unpaid energy bill from affecting your credit, but you must act fast, because the utility company will become less amenable to negotiations as the days pass. Identification A past due energy bill will most likely affect your credit score if the utility company decides it cannot collect on the account and sends it to a collection agency...

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Help to Clean Up My Credit

Cleaning up your credit demonstrates responsibility. Credit is important, especially if you want to buy a house or finance a car someday. Lenders base approvals and interest rates on your credit score, and getting favorable rates and terms requires a good credit history. Reverse a bad credit score and qualify for the best loan terms. Missed and Late Payments Paying credit card bills 30 days late not only trigger late fees, but creditors report lateness to the credit bureaus, and this information hurts your personal credit score. Clean up...

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