Understanding Credit Reports

Your credit score is critical when considering life's big and small purchases, affecting everything from your ability to get a new credit card to your suitability for home ownership. Given that your credit history is so influential, it's important that you request your own credit reports and understand what they mean. Keeping tabs on your credit score annually lets you know where you stand financially and can help you protect yourself against fraud....

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What Is the Point of Removing Negative Debt From a Credit Report?

Even if you never use credit or plan to, negative items can tarnish your image in front of other parties that you might care about --- maybe even an employer. You could come to a point in your life where you want to build credit or obtain a loan for an emergency, but find that a single negative credit item stands in your way. Disputing such an item probably won't take more than a few hours, and you can do it online for free. More Than Just for Loans Anybody with a pertinent interest in your financial background can pull your credit report...

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When Do Creditors Report to Credit Bureaus?

Creditors normally report information to the major credit bureaus at least once every month. Your credit score can change on the basis of new information received by the credit reporting agencies. When you pay your bills on time, your credit score increases, but if you use all of your available credit, make late payments or become delinquent on loans, then your score decreases. Credit Reporting To file credit reports, your creditors must have established credit reporting accounts with Equifax, Experian and TransUnion. Most major lenders...

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How to Resolve Credit Rating Issues

Credit rating issues can prevent you from acquiring an affordable mortgage, credit card, personal loan, rental apartment, a good job, a cell phone plan and many other things. Luckily, a poor credit rating does not have to be a boulder that you drag around behind you for the rest of your life. There are several steps you can take to resolve many common credit rating issues and build up your credit score again. Instructions 1 Order your credit reports from the three major credit reporting bureaus (TransUnion, Equifax and Experian). Information...

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Main Credit Reporting Companies

Federal law mandates that the three nationwide consumer reporting agencies provide citizens with a free copy of their credit report every year. The Fair Credit Reporting Act (FCRA) sets the standards for information included in a report, such as where you live, if you have been sued or arrested, bankruptcy filings and how you pay bills. The FCRA is enforced by the Federal Trade Commission. Equifax Equifax is the oldest credit reporting agency...

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The Meaning of FICO

FICO, short for Fair Isaac Corp., is usually placed in front of the term "credit score." Fair Isaac created a scoring model based on credit information and it is used by all the major credit bureaus. This score affects most financial areas of your life. FICO Score The FICO score is a numerical representation of what type of credit user you have been in the past. Credit bureaus look at your credit report and use the information in it to create a FICO score. Once this score is calculated, it can be used by creditors to make quick decisions...

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How to Remove a Tax Lien From Your Credit

If you do not pay your federal or state taxes, the government may place a lien against any property that you own. While state tax liens and what they encumber vary depending on your state of residence, a federal tax lien attaches to all property you own -- in addition to appearing on your credit report. Tax liens that appear on your credit report will damage your credit score. You can appeal to the credit bureaus to remove some old tax liens. Instructions 1 Locate your formal Certificate of Lien Release. Unpaid tax liens can remain on your...

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Does Closing a Credit Card Hurt My Credit?

After the hard work of paying off a credit card's balance is done, many people close the account to avoid temptation. However, as people learn more about their credit and just how important their FICO scores are, they're beginning to second-guess traditional wisdom. The short answer is: Yes, closing a credit card can hurt your credit. FICO Explained Your FICO score (named for Fair Isaac Corp.) is a number designed to measure risk, specifically...

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FICO Score Credit Repair

Expensive purchases such as a house or car require a credit score. Every consumer with a credit account has a credit report and score. Unfortunately, not every consumer has a good credit rating; and a low FICO credit score limits your credit options. However, repairing your credit opens the door to several different finance options. Length of Credit History The length of time that you've maintained your credit accounts play a role in credit scoring, and people with long credit histories tend to have better scores than someone who just opened...

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Are Multiple Hard Inquiries on Your Credit Report Rolled Into One If in a Short Amount of Time?

Hard inquiries are placed on your credit report whenever you apply for a credit-related service, such as a mortgage or credit card. A hard inquiry can harm your credit score, but you may have been told that you can minimize the damage of multiple inquiries by applying at several places in a short period of time. This is true, but you have to make sure it appears to be rate shopping. Your credit score also could be reduced if the lender uses an outdated scoring system. Identification When the credit scoring model detects multiple hard inquiries...

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How to Obtain a Credit Score From a Bank

Your credit score lies somewhere within the range of 300 to 850 and helps lenders evaluate the potential risks associated with lending to you. A high credit score indicates that you are a low-risk borrower who is responsible with your debts. This will allow you to qualify for credit and loans more easily. If you would like to know your credit scores, you may purchase them either from the credit reporting agencies or from myFICO.com. You may also acquire a credit score by requesting that a local bank pull it for you. Instructions 1 Visit...

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Do I Need Credit Monitoring?

The statistics are frightening: According to Harris Interactive, over a three-year period "49 million Americans were told that their personal information was lost, stolen, or improperly disclosed by government agencies, banks, or various other companies." Out of this amount, roughly 19% ended up having an identity theft or financial loss issue stemming from the breach. Credit monitoring is supposedly the best defense against this, but that may not be the case. The Best New Technology, or Not? For those looking for the most comprehensive...

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Why Are Companies Doing Credit Checks Before Hiring?

According to MSN Money's Liz Pulliam Weston, a 2006 member survey conducted by the Society for Human Resource Management revealed that 43 percent of companies conduct credit checks on job applicants. The Facts Companies perform credit checks on applicants to gauge their responsibility. If a person cannot manage his finances, a company may be less likely to hire him. In addition, employers may consider individuals in debt a higher theft risk,...

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Will My Credit Score Go Up After Paying Off a Credit Card?

Paying off debt, particularly high balances, does increase a credit score. The increase depends on total amounts owed, debt-to-credit ratios, initial credit scores and charging habits. Additionally, when your score changes depends on the credit card issuer's reporting time frame and how often credit reporting agencies update your score. Consumers are encouraged to check their credit history for accuracy after paying off debt, closing accounts or...

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Canadian Credit Information

Most adult Canadians have credit reports on file that outline their basic identifying information such as current address as well as their bill-paying history, according to both Equifax Canada and Credit Counseling Canada. Identification Two major agencies issue reports about Canadian consumers in the country; Equifax and TransUnion. Significance Credit reports not only help potential lenders decide whether to risk extending an account to a consumer, but also potentially impact a Canadian's ability to get some apartments, according...

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How Do Credit Report Agencies Obtain Their Information?

Credit Reporting Agencies A credit reporting agency acts as an intermediary between you and creditors. Potential lenders are able to determine if you are financially responsible from your credit report, because the agencies report your credit history, showing how you handle credit and debt. A credit reporting agency is also referred to as a credit bureau. Most creditors request a copy of your report from one of the big three -- TransUnion, Experian or Equifax. How Credit Reporting Agencies Obtain Information Credit reporting agencies...

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Credit Bureau Problems

Credit bureaus assign individuals a credit score to indicate whether or not they pose any potential credit risk. Credit scores typically range from 300 to 850, with higher numbers awarded to people with good credit. A low credit rating, caused by unpaid bills and credit late fees, can make it difficult for individuals to acquire a mortgage, business loan, auto loan or other form of financial assistance. You should always try to keep tabs on your...

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Would Lowering Your Credit Limit Lower Your Credit Score?

Many credit card companies are lowering their borrowers' credit limits to reflect the recessionary economy. Borrowers often are surprised by this, and many find out the hard way when they try to charge something. More important than the inconvenience is the impact a lowered credit limit can have on your credit report and score. Understanding how credit reports work can help you minimize the impact on your credit score. The Effect of a Lower Credit Limit While the precise formula for calculating a credit score has never been made public,...

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Three Credit Rating Agencies

A credit rating agency gathers and analyzes information that individual or institutional investors use to assess the issuer of a debt obligation or securities will honor them at the due date. There are three major credit rating organizations in the United States: Moodys, Standard & Poors and Fitch. The Ratings Fitch introduced an AAA through to D credit rating system in 1924. Standard & Poors has since adopted the same system. The...

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Does a Credit Report Freeze Block Your FICO Score?

Requesting a credit report freeze provides an important weapon in fighting identity theft, because it prevents a lender from pulling a credit report -- something almost all creditors require, according to the Consumers Union. A credit report freeze can block your FICO score from most requests to see your credit history. Function A credit report freeze blocks any new lender from looking at your credit history and score, according to Experian. The lender instead receives a code signifying a blocked report. Anyone else who might want to see...

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How Payments Affect Credit Score

Of the many factors that affect your credit score, payments are arguably the most important. Keeping up with payments improves your credit score, while missing payments destroys it. It can take years of financial diligence to repair a few months' worth of mistakes. Managing your payments responsibly is the best thing you can do for your credit score. Credit Scores A credit score is a three-digit summary of your credit history over the last...

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How Many Points Does a Paid Tax Lien Decrease Your Credit Score?

A tax lien will definitely hurt your credit score, but it's impossible to say by exactly how much. It's also impossible to say exactly how much paying the lien off will improve your score. Companies treat the systems used to calculate your FICO score and other credit scores as confidential information. Credit bureaus do say, however, that the effect of any one item will depend on what else is in your report. Tax Liens A tax lien gives a government body a claim on your property -- a house, a car or a boat, for instance -- for unpaid taxes....

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How to Monitor All Three Credit Bureaus & Scores Monthly

The three primary credit bureaus, Equifax, TransUnion, and Experian, all receive and report slightly different information on your credit report. They also calculate credit scores, the three digit number creditors check before issuing you a credit card or loan, differently. Viewing your credit report from all three ensures that you have the full picture of your credit history. Monitoring it monthly helps you track changes, report any fraudulent activity...

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How to Understand Credit Rating Points

Every consumer who has a credit file also has a credit score that is compiled by adding up a number of points based on his credit rating. While there are actually different types of scores, the Fair Isaac Corp. score, commonly known as a FICO score, is the most commonly used number. While the exact formula by which it is calculated is not public, it is influenced by your credit rating points in several areas, such as bill-paying history and available...

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How Does an 18 Year Old Build Credit to Buy a Car?

Once you turn 18, you can legally enter into a contract, but that doesn't mean you'll necessarily qualify for most credit accounts or a car loan. If you can get that first account, however, having a short credit history can help you out due to the way the FICO model handles new borrowers. Just make sure you never miss a payment or run up a large bill. Standard Credit Card A parent can add you as an authorized user to his account at any time. This helps you build credit based on your parent's credit. You do not receive the bill, and if...

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How to Remove Bad Debt That Has Been Paid Off From Your Credit Report

Credit reports can contain many errors, including purchases you never made or the inclusion of bad debts you already paid. To correct your credit report that claims that you have not paid a bad debt, you must write a letter to the credit reporting agency and include supporting documents, if you have them. The agency then has 30 days to respond to your dispute. Instructions 1 Review your credit report from all three major credit reporting agencies for errors. The agencies are Equifax, TransUnion and Experian. Highlight any bad debts that...

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Problems with Credit Reporting Agencies

If you have ever dealt with a credit reporting agency, you know there could be a number of problems you could encounter. Sometimes it takes a significant amount of time to resolve the various disputes and problems that arise. Some of the errors can lower your credit score and cost you money when it comes time to borrow. Always get a copy of your credit report, at least once per year, to see if there is any information which is not yours. Similiar Names The credit reporting agencies have been known to make errors. If your name is similar...

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Will it Hurt My Credit Score If I Ask to Lower My Credit Limit on My Credit Card?

Asking the credit card company to lower your limit could be an effective way to control spending, but this might damage your credit score and make you appear to be a worse borrower. The percent of your credit limit which you use is an important ratio in the FICO score calculation, and one you have much control over. Instead, request a higher limit. Identification Losing available credit hurts your credit utilization score -- the percent of...

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How Much Do Collections Lower Your Credit Score?

Bills can go to collection agencies if they are not paid. Generally a lender waits about six months before turning accounts over to outside debt collectors, according to MSN Money writer Liz Pulliam Weston. First internal agents call you, asking for money and sometimes making settlement offers. After 80 days, the lender charges off the account for tax reasons and sells it to a collection agency. The collector badgers you for payment, dropping your credit score. Impact Your credit score is calculated based on a wide spectrum of financial...

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How to Order a Credit Report

Every United States consumer receives a free annual credit report, on the condition you request it. Under the Fair Credit Reporting Act, each of the three major credit reporting agencies --- Trans Union, Experian and Equifax --- must provide a free annual credit report to each consumer who requests it. When you request your credit report, you need to have your Social Security number handy and be able to answer personal questions that only you would...

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Does Opening a Credit Card Affect Your Credit Score?

You must have credit cards, loans and other accounts to build up your credit history. It's a delicate balance, because too little credit means lenders don't have enough information to judge your payment history and other factors. Too much means you might overextend yourself and default on your accounts. Credit applications can be positive or negative, depending on your overall financial picture. Process You must fill out an application to...

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