My Credit Wasn’t Going To Fix Itself… I Had To Do Something…

It was then that I realized only I could take charge of my credit and get it fixed… The first thing I did was try a so-called “professional” credit repair agency, but…

Saturday, July 30, 2011

Credit Fix Facts

Developing and maintaining a solid credit history is important if you want to get credit for various life needs, like buying a home, car or even getting insurance. When your credit history shows problems, it is important to take steps to fix them as soon as possible. Errors on Reports A significant number of credit reports have errors, according to the U.S. Public Research Interest Group. A 2004 study found that 80 percent have errors and a quarter have errors so serious that it could affect someone's ability to get credit. A credit report...

Can Dropping an Authorized Person Hurt My Credit?

Dropping a person authorized to use your credit card -- meaning the person does not pay the bill or have legal liability to ever do so -- won't help your credit, but it can be one of the best ways to preserve your rating. In general, authorized users present a huge liability to the primary borrower, and lenders often ignore authorized accounts. Identification Although an authorized user's credit rating can benefit from piggybacking on your account, dropping him will have no effect on your credit rating, according to Maxine Sweet of Experian....

Monday, July 25, 2011

How to Obtain an Individual's Credit Report

Credit reports show the financial history of an individual regarding their debt payments. You may only obtain an individual's credit report if you have a legitimate interest or are granted permission. A legitimate interest would be a parent checking a minor child's credit report to make sure his identity had not been stolen; lenders and employers can check someone's credit report with her permission if she's applying for a job or a loan. Instructions 1 Request permission from the person whose credit you want to check. This should be put...

Services That Rebuild Credit

The Credit Repair Organizations Act provides the legal definitions and regulations that apply to services that rebuild credit. The enormity of the credit crisis has led to the formation of several companies that prey on consumer vulnerability and ignorance of their rights and protection under the law. Consumers can protect themselves and save money by knowing what to look for in companies that promise to rebuild credit. Better Business Bureau...

My Credit Is Horrible: What Can I Do to Fix It?

While it will take years to remove all bad history from your credit report, you can recoup most of the damage relatively soon and you won't need to spend thousands of dollars to get there. Fixing a credit score is a situation where intuition usually proves correct: just pay your bills on time. You can take some actions to speed up the rebuilding process. Check Reports You can have great borrowing habits, but errors can do significant harm to your credit. Check your own credit for free via AnnualCreditReport.com, obtaining reports from all...

Saturday, July 23, 2011

Can I Get a Secured Credit Card If I Am Filing for Bankruptcy?

As part of the preparation for filing bankruptcy, you might think you should take out a secured credit card account before the bankruptcy destroys your credit. While using your credit before it is completely wrecked seems sensible, taking out any line of credit before bankruptcy could be a bad idea. Consult a bankruptcy attorney to determine how the bankruptcy court sees this action. Identification The question is not whether you can get a secured credit card before bankruptcy -- you can get a secured card at nearly any time because the...

Friday, July 22, 2011

What Is an Acceptable FICO Score?

A FICO credit score that is acceptable to one lender might not be acceptable to another. One lender might extend credit to anyone with a score above 680, while another lender might use 700 as the cutoff score. Considerations Different credit situations often have different credit score requirements. For example, a mortgage-type loan might require a different FICO score than an auto loan. Acceptable Scores FICO credit scores range from 300 to 850; the higher the score, the better. According to MyFICO.com, most lenders consider a score...

At What Age Should You Start to Build Up Your Credit?

As far as credit scoring is concerned, the best thing you can do is start building credit as soon as possible, even if you are a young child. Theoretically, you could build enough credit as a child to get a mortgage and car loan at the age of 18. However, building credit at a young age leaves you open to the pitfalls of inexperienced borrowers. Credit Score The standard credit scoring model counts the length of credit history for 15 percent of a borrower's score. The sooner you start building credit, the quicker you can maximize this category...

Thursday, July 21, 2011

How to Request Removal of Paid Balances on a Credit Report

Part of keeping a good credit score involves checking it periodically and correcting errors that the Credit Reporting Agency (CRA) has recorded. The CRA (Experian, Equifax, or TransUnion) receives reports on your credit behavior from credit card companies, utilities, landlords, and other bill collectors. If you are late on a bill but do pay it, it is possible that the payment has not been noted by the CRA, so you may need to request that the error be removed. Instructions Removing Inaccurate Information 1 Request a free copy of your credit...

Does a Paid Collection Hurt Your Credit?

Unpaid debts do not go away even if your creditors write them off. Banks and other lenders often write off accounts that go unpaid for 180 days, because of the tax benefit. Lenders often sell accounts to collection agencies who can hound you for repayment and sometimes sue you, as well as adding a negative item to your credit report. Effects A collection account is very hurtful to your credit, even if you pay it off, because lenders still see that you had an old bill placed with a collection agency, which means you defaulted on the original...

Tuesday, July 19, 2011

What Does a Security Alert on My Credit Mean?

The number of identity theft victims dropped 28 percent between 2009 and 2010, but the decrease was mostly due to a lack of large-scale security breaches, according to a report by Javelin Strategy & Research. Fraud by people the victim knows, however, went up 7 percent. One way to add extra protection to your credit profile is a security alert. Security alerts on credit reports are a way to ask creditors to double-check the identity of borrowers suspected of using stolen data. Identification A security alert on your credit report means...

How to Monitor Your Credit Rating

Regularly monitoring your credit rating is an important step to assuring your financial health. A good credit rating can give you better interest rates on car loans, home loans and personal loans, and your credit rating is looked at by everyone from a potential landlord to a potential employer. Monitoring your credit rating also lets you see whether your identity has been stolen or compromised. At first, monitoring your credit rating will take an...

An Easy Way to Build Credit

It is important for young adults to establish a good credit history so they can show lenders their good financial standing when it comes to making larger purchases, such as a vehicle or home. A good credit history not only helps when it comes to financing options, but can also make a difference in auto insurance rates, renting an apartment and getting a good job. Although building good credit is not necessarily difficult, it does take time. Instructions 1 Get a student credit card. Some credit card companies offer college students credit...

Sunday, July 17, 2011

When Can a Chapter 7 Be Removed From a Credit Report?

There are two types of consumer bankruptcy, according to the Federal Trade Commission. Chapter 13 bankruptcy allows the filer to keep most possessions, but it also requires repayment of many bills. Chapter 7 bankruptcy is more drastic, and both types remain on credit bureau files for a long time. Definition The FTC explains that Chapter 7 bankruptcy is a court action that liquidates most of a person's assets and discharges almost all of their debts. Filing for Chapter 7 bankruptcy stops utility shut-offs, wage garnishments, repossessions,...

Saturday, July 16, 2011

How To Build a Good Credit Rating Fast

If you build good credit, doors will open for you. Unfortunately, it seems as if these days you have to have credit in order to build more. Hopefully these tips will set you on the path to building good credit quickly. Instructions 1 Apply for a credit card. Even numerous applications won't hurt you, since you have no credit score yet. Getting a credit card with no credit is much easier than getting one with bad credit. 2 Keep a high...

Friday, July 15, 2011

Can a Bankruptcy Account That Omits Information Affect My Credit Score?

If you're applying for a loan, turning in an application for rental housing or shopping for new insurance, your credit score plays a significant role in your approval. Positive entries, such as a credit card you use responsibly and make regular payments on, improve your credit score. Negative information, such as a bankruptcy, lowers your credit score. The Bankruptcy Record When you file for bankruptcy, the bankruptcy record shows up in the section of your credit report reserved for public records. The bankruptcy trade line contains such...

How to Use Rent Payments to Improve Credit

Improving a bad credit score is done by making loan or bill payments on time. This shows future creditors you are able to handle the repayment of funds based on your past credit history. Using your rent payments to improve your credit score is done by your landlord reporting those payments to a credit reporting service. While rent payments are not typically reported to a credit service, you can convince your landlord to do so by informing him of...

How Does Being a Guarantor Affect Credit?

Your Credit Report Guaranteeing a loan or credit card account for someone else has an effect on your credit report because you are taking responsibility for the account. When you co-sign to guarantee someone else's loan or account, you are agreeing to be 100 percent responsible for paying the debt if he defaults on the payments. Therefore, it will show up on your credit report just like any other account for which you are liable and will reflect...

Thursday, July 14, 2011

How Marriage Affects Credit Scores

Marriage can be scary for many reasons, including credit scores. The most common scenario is that one spouse has a less-than-perfect credit score, whether from some missed credit card payments in college or from something more severe such as bankruptcy. This leaves the other spouse concerned about whether these past imperfections will tarnish a carefully maintained credit report and score. Separate Credit Scores The act of getting married...

Wednesday, July 13, 2011

How to Raise Your FICO Score After Chapter 13 Bankruptcy

FICO is an acronym for the Fair Isaac Corporation. This is the company that created, according to the Home Buying Institute's Brandon Cornett, "the credit-scoring model that's most popular among mortgage lenders." FICO's system takes the information from a credit report and translates it into a number that can be used to evaluate your creditworthiness. When you file for a Chapter 13 bankruptcy, you are generally instructed to repay some or all of your debt under a court-approved repayment plan. If you complete the court-approved repayment plan,...

Tuesday, July 12, 2011

How to Fix Your Credit in Dallas, Texas

Many local resources are available for credit repair in Dallas, Texas. Getting legal and ethical advice from a local source could help you improve your credit. That advice should not come from a for-profit credit repair firm, according to the Federal Trade Commission. The FTC, according to its website, has sought legal action against some Dallas credit repair firms promising to remove negative information from credit reports that is accurate and timely. The FTC says accurate information cannot be removed until it expires -- a minimum of seven years....

Monday, July 11, 2011

How to Report Accounts That Don't Belong to Credit Bureaus

Your name and Social Security number (SSN) may identify you, but your credit rating and supplemental report can verify your identity and prove your credit-worthiness for a loan or mortgage---even employment. Just as you want to ensure no one is using your name and SSN, you want to monitor your credit reports with all three credit bureaus (TransUnion, Equifax and Experian) and report any inaccuracies. Each credit bureau may have different credit information,...

Saturday, July 9, 2011

How I Can Clean Up My Credit?

Having good credit is an important part of life. Without access to credit cards, it can be difficult to get the most out of your pay, and poor credit can make it next to impossible to make major purchases like a house or car. Unfortunately, there are no quick fixes for bad credit, but with a little effort you can clean up your credit over time. Monitor Your Credit Report The first step to cleaning up your credit is getting a clear picture...

Thursday, July 7, 2011

How to Raise a Credit Score Below 500

Your credit score is a number between 350 and 850 that indicates whether you are a good lending risk. If your credit report shows that you have a history of not paying debts on time, or if you have a recent bankruptcy or judgment against you, you may have a low credit score. A low score can prevent you from getting good interest rates on loans and credit cards--if you can get approved at all. A credit score below 500 is considerably low. The good news is that there are steps you can take to raise your credit score and build a good credit history....

Wednesday, July 6, 2011

What Happens to My Credit Score If I Only Pay the Minimum?

In 2006, Congress enacted legislation that requires minimum debt payments cover interest and at least some of the principal balance -- a move to help consumers eventually pay off debt. Although minimum payments are the lowest amount you can pay and not be delinquent on your credit card debt, paying more than the minimum does not have a direct impact on your credit score. Identification Paying the minimum raises your credit score because the...

Tuesday, July 5, 2011

Free Places to Check Credit Scores

The American Fair and Accurate Credit Transactions Act (FACTA) defines a credit score as, "A numerical value or categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default (and the numerical value or the categorization derived from such analysis may also be referred to as a 'risk predictor' or 'risk score.'" MyFICO.com is the only legitimate source for obtaining a free credit score. FACTA also makes provisions for consumers...

Monday, July 4, 2011

How to Remove Transferred and Sold Student Loans From Your Credit Report

If your student loan has been sold or transferred to another lender but your credit report has not been updated, you could face serious credit issues until you successfully dispute the mistake, especially if the transferred loan has also appeared on your report. If the lender and the credit bureaus don't respond to your dispute in a timely fashion, you may be able to sue your creditor to force them to update your report and pay for the damage to your credit reputation. Instructions 1 Review your credit reports from all three credit bureaus...

Credit File History

A credit history contains more than just who you do business with, but where you live and possibly lawsuits that involved you as a defendant. This is why it is critical for you to keep your credit file as clean as possible and pay back any to whom you owe a debt. Also, more than just creditors want to see the data in your credit history. Where Does it Come From? Three national credit bureaus control the majority of consumer credit data in the U.S. The term "national" in this sense does not signify a federal government agency. The U.S. only...

How Long Can Something Remain on My Credit Report?

Lenders and creditors report your accounts, such as credit cards and loans, to the three major credit bureaus. The credit bureaus then organize the information into a credit report. Your credit report provides future lenders and creditors with a record of your recent financial behavior. The Fair Credit Reporting Act (FCRA) dictates the length of time that a given entry can remain as part of your credit history. Open Accounts As long as you keep a credit card account open and continue to use it regularly, it provides valuable information...

Saturday, July 2, 2011

How to Get a Higher Fair Isaac Score

The Fair Isaac Score (FICO) is a credit scoring module that was created in 1958 by Bill Fair and Earl Isaac. Fair Isaac Scores range from 300, being the worse credit you can possibly have, all the way up to 850, which is the perfect FICO score. If you have a low FICO score you will find it difficult to get approved for credit as well as a home. Some employers also look at your FICO score before offering you employment. If your Fair Isaac Score is low, all is not a total loss. By consistently following a few principles, you can get a higher score....