What Factors Make Up a Good Credit Score?

Your credit score is an important aspect of your financial profile. Lenders use it to determine how much they will charge you for borrowing money. With a good credit score, you will save by paying a lower interest rate if you take out any consumer loan, including a mortgage loan or a car loan. Even in everyday matters such as renting an apartment, landlords look into your credit score. The FICO score developed by the Fair Issac Corp. is a commonly...

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What Can I Do to Build My Credit?

Your credit score is based on the report of your account history that the credit bureaus have on file. Building a good credit history not only increases your credit score, but also increases your chance of approval for loans and credit cards and helps you secure lower interest rates. Having good credit can also help you get a job, rent a house and pay less on car insurance. Pay on Time Over one-third of your credit score is based on your payment history on all of your credit accounts. Build your credit by paying all of your bills by their...

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Does Rent to Own Effect Your Credit?

Rent-to-own refers to items paid for in installments with an option to either purchase the item outright, or return it to the store at the end of the rental contract. This normally includes products such as appliances, electronics and computers. Advertisements in rent-to-own stores often proclaim a "no credit check" policy for customers. If considering a rent-to-own purchase, it's important to understand how such a purchase may affect your credit. FICO Credit Scores A FICO credit score measures how well you handle your credit obligations....

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FICO Score FAQ

FICO (Fair Isaac Corporation) scores are the most commonly used type of credit score. Creditors use FICO scores to predict the likelihood that you will repay a loan in a timely manner. Having a good score will assure that you get the best possible interest rates and credit terms. What Is a FICO Score? A FICO score is a number between 300 and 850 that reflects your credit history. The score is calculated by weighing different factors of your...

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Does Canceling a Credit Card That Is Always Paid in Full Affect the Credit Score?

Your credit score ranges from 300 to 850, according to Fair Isaac Corporation, or FICO, a credit score company. The score is based on the data contained within your credit report. The higher the score, the better your credit. Consumers with higher credit scores often receive lower interest rates and easier loan approvals than consumers with lower credit scores. The score is not a stagnate number but changes as the data in your report changes, so it's wise to understand how canceling a credit card that you always pay in full will impact your credit...

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How to Fix Your Credit in 6 Months

Your credit record is important. It's checked by lenders every time you apply for credit. A poor credit record results in credit applications being declined: The more you apply and get declined, the worse your credit record is. Before applying for credit, check your credit records. There are three credit reporting bureaus: Equifax, Experian and TransUnion. Together they sponsor AnnualCreditReport.com, the only official website where you can get...

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What Does a No Hit Credit Score Mean?

A no-hit credit score means that there is not enough information on the credit report to calculate a credit score. This usually is because the person has not built up a credit history. Number of Accounts In order to calculate a credit score, there must be at least one credit or loan account on record with the credit bureau. Length of Credit History Once a loan or credit account has been opened, it takes six months of payment history to calculate a credit score. Closed Accounts Accounts that have not been updated in the...

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FICO Score Criteria

FICO stands for Fair Isaac Corporation. The Fair Isaac Corporation is the company that developed the credit scoring formula most widely used by lenders, called the FICO score. The FICO score looks at your past credit history to produce a score between 300 and 850, with higher scores meaning that you are less likely to default on loans in the future. Factors The FICO scoring model breaks your financial history into five, unequally weighted...

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Will Opening a Credit Card Improve My Credit Score?

Credit is one of the most important aspects of a person's financial life. With credit being so important, it is necessary to maintain a high credit score. Borrowing money in the form of credit with the promise to repay allows consumers to gradually build their credit score. A credit card is one of the easiest forms of credit to obtain. Lenders are often willing to extend credit to borrowers with less than perfect credit. Depending on how the credit card is managed, it can have either a postive or negative effect on a credit score. Payments...

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Why Does Your Credit Score Lower When You Get a Credit Card?

Credit scores are based on a number of different factors and simply obtaining a new credit card can cause your score to dip. The fact that the credit issuer checked your credit score can have a slight negative impact. Rolling a balance over from an existing card or cards can also hurt your score. Credit Inquiries Equifax use the FICO scoring system that gets its name from the scoring system's creator, Fair Isaac Corporation. Experian and TransUnion, the other U.S. based credit bureaus, also use a similar scoring system. Credit scores at...

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How Does Transferring a Credit Card Balance Affect a Credit Rating?

Everything Is Dependent Transferring a balance to a lower interest credit card can certainly help you save money, assuming the fees put on a transfer don't outweigh the interest savings, but the effect on your credit score is not as easy to figure out. While many people promote transferring balances as an easy way to increase your credit score, it isn't always a good idea. Everything depends on your balances and limits. It May Decrease The actual affect on your score will depend on your total debt percentage. Essentially, if you transfer...

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How to Evaluate Your Credit Online

Monitoring your credit on-line is both free and easy. Let us explore where you can view your credit reports online, whether credit monitoring services are right for you, how to repair your credit and whom to call for help if you should need assistance. Instructions 1 Obtain your credit report from the Annual Credit Report website (see Resources section). This is the website established by the three leading credit bureaus, Exquifax, Experian...

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Tips for Making Your Credit Score Higher

A high credit score (700 or higher) qualifies you for the lowest interest rate on mortgages, credit cards and other types of loans. Unfortunately, acquiring a good rating takes times and you'll need to consistently manage your debts wisely. Even if you have a moderate or average score, there are tips to help you raise your score and achieve the best credit rating possible. Clear Up Credit Report Errors Never assume that the information listed on your credit report is accurate. Granted, the majority of entries will correctly reflect your...

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How to Find Your Credit Score

Your credit score determines whether you qualify for credit and how much you'll pay for it. By law, you get a free copy of your credit report every year but you do not have the same legal rights to a free credit score. To top off the confusion, you have more than one credit score. Your FICO scores are used by most creditors when you apply for a loan or mortgage. They may also use credit bureau-specific credit scores from TransUnion, Experian or Equifax....

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How to Check Your Credit Card History

The three little numbers that make up your credit score probably have more influence on your life than any other number (except possibly your SAT score). Your credit score determines not only whether you will qualify for a mortgage or car financing, but also what interest rates you will pay. Despite the importance of the credit score, a 2006 Capital One survey found that 27 percent of adults have never checked theirs -- even though 79 percent of...

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Safe Ways to Check a Credit Score

Your credit score has become an increasingly important piece of information, not only for use in establishing and obtaining credit, but also for favorable rates on insurance and the ability to lease a rental property. Your credit information is something you should protect and monitor for correctness. There are three major providers of your credit score; each one uses its own proprietary formula for the resulting score. And, there are many safe and convenient ways to check your scores. Online In 2003, the federal government enacted the...

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How to Explain Gambling Winnings on a Mortgage Application

Especially after the housing crash in the mid-2000s, mortgage lenders are careful when confirming whether potential customers are able to make their house payments. This means that, as a mortgage applicant, you are responsible for proving all income or assets that will be relevant to the process. This is easy in cases such as salary or investment income, but more difficult in cases such as gambling winnings. Instructions 1 Obtain and keep...

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Tips for Cleaning Up Credit for Free

When you buy something on credit, the business that extends you credit reports the transaction and all subsequent transactions related to the purchase to national credit reporting agencies. This applies to all forms of financed purchases, including home mortgages, auto loans, credit, charge and department store card purchases, and even purchases made under contract that are not financed, such as cell phone service. The set of information about your purchases and repayment patterns is your credit report. Federal laws that regulate credit-reporting...

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How to Improve My Credit in the USA

Improving your credit is good for advancing your financial goals. A good credit score provides many benefits, such as lower interest rates on loans, credit cards and mortgages, better chances for employment and more ease obtaining credit to open a business. A bad credit score has many consequences, such as higher interest rates and insurance premiums. Financial struggles, impulsiveness, lack of financial knowledge and identity theft are a some causes...

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Differences Between Vantage Score & FICO Score

In 2006, the three major U.S. credit bureaus, Equifax, TransUnion and Experian, created the VantageScore in order to eventually replace the Fair Isaac Corporation, or FICO, score with more modern algorithms. Both scores use different calculations in order to determine the creditworthiness of a consumer and both have different ranges of scoring. As of March 2011, borrowers can purchase both FICO and Vantage scores by visiting the website of one of the three major credit bureaus. Calculation The three major credit bureaus calculate a consumer's...

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How Long Do Bad Credit Records That Are Past the Statute of Limitations Stay on a Credit Report?

When you have bad credit it can remain on your credit report for a certain period of time even though the statue of limitations is passed. The amount of time will depend on the type of bad credit. Significance Most bad credit will remain on your credit file for seven years. The statue of limitations has nothing to do with how long information remains on your credit file. When the statue of limitations has run out it means a creditor cannot...

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Can I Add Rental History to My Credit Report?

In years past, lenders and credit agencies would never see a rent history, but this changed for some people in 2011 when Experian completely merged with RentBureau. Adding a rental history to your credit report has always been possible, but not to the credit agencies used by most lenders. Even if you have a history with consumer reporting firm like RentBureau, you cannot force the national agencies to report it. Identification You can add rental history to an alternative credit report, but you must pay a monthly fee to the alternative agency...

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The Advantages of a Good Credit Score

According to the Home Buying Institute, millions of Americans have a low or bad credit score. A low credit score can cause many problems for the average consumer, as it can make seemingly simple tasks like borrowing money from a lender or applying for a credit card nearly impossible. Having a good credit score offers many advantages to consumers, and can open up many financial doors and opportunities for those who have it. Lower Interest Rates...

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Credit Fraud Prevention

Credit fraud is rampant, with the Javelin Strategy & Research company's "Identity Fraud Survey Report" finding that there were 11.1 million victims in the United States during 2009. Victims have ways to control and repair the damage caused by identity thieves and other criminals, but prevention is the most efficient strategy. Definition Credit fraud involves financial damage from unauthorized use of a person's existing credit cards or a thief who opens and uses new accounts under another person's identity, the Federal Trade Commission...

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What Is Your Starting Credit Score?

Credit scoring does not work like a video game; the credit bureaus won't start you off with any points. While not having a credit score detracts from your financial profile, it also puts you in a good position to build a clean and positive credit history. In some cases, a limited credit history gives the impression to lenders that you are more creditworthy. Identification When the credit bureaus contain no information on your financial history, you will not have a credit score. Instead, lenders that try to calculate your credit score receive...

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Do Mortgage Modifications Reflect on Your Credit?

How mortgage modification affects your credit depends on your personal situation. Mortgage modification may kill two birds with one stone, saving your credit rating and your home. Alternatively, mortgage modification can require you to ruin your credit rating and may not not save your home from foreclosure. Identification Nothing negatively affects your credit rating unless a lender reports it to the credit reporting bureaus. However, mortgage modification often results in a negative notation on your credit history, because you do not pay...

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Does Fast Cash Hurt Your Credit Score?

Fast cash loans -- commonly called payday loans -- allow borrowers to obtain funds quickly and usually without a credit check, so you only need a job to get a fast loan. This probably will not affect your credit score so long as you follow the rules set forth by the creditor. A payday loan more likely affects your finances, which may impact your ability to repay debts to other creditors that report to the credit bureaus. Identification Most administrators of payday loans do not perform credit checks or report to the major credit bureaus,...

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Does a Bounced Check Affect Credit?

A bounced check is a check that your bank returns to the recipient when your account does not have enough funds to cover the amount for which it is written. Virtually all banks charge fees for bounced checks, and you may also face late fees and returned-check charges if you wrote the check to pay a bill. Bounced checks also can affect your credit rating and make it difficult to obtain loans and new bank accounts. Credit Reports Your credit reports from the Experian, Equifax and TransUnion reporting agencies contain information about credit-related...

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How Does a Collection Negatively Impact My Credit Score?

Credit card companies and businesses to whom you owe money usually do not pursue you forever. MSN Money website writer Liz Pulliam Weston explains that they try to collect for about six months. Most write off the owed balance if you make no payments in that time frame, but this does not remove your liability. The account typically gets sold to a debt collector, which compounds the damage to your credit score. Effects Your Experian, Equifax and TransUnion reports show past due and charged off accounts, which hurts your credit score. Most...

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Why Is My FICO Score Impacted From a Signer Account?

The FICO score is a credit score calculated by using the Fair Isaac Corporation's scoring algorithm. The score is used by lenders as an important factor in determining eligibility for loans and loan terms, such as interest rates. Cosigning a loan refers to guaranteeing to repay a loan in the event that the primary borrower does not repay it, and it can affect your credit score. Potential When someone cosigns for an account, the cosigner is...

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Who Do I Contact if I Am a Victim of Identity Theft?

Identity theft is increasingly pervasive, and it can be devastating to victims. If someone gets hold of your Social Security number and uses it to open credit accounts in your name, or otherwise compromise your financial information and security, you need to take steps quickly by contacting credit bureaus, your lenders and the police department. Credit Bureaus Three credit bureaus collect and hold information on your financial life, and if...

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Requirements for Home Warranty Coverage

When you buy or own a home, you may need to establish a number of policies to protect the structure and items inside the house. One policy to consider as a homeowner is a home warranty. Learn about home warranty coverage, including the requirements for securing this type of policy. What Is a Home Warranty? A home warranty is a contract, similar to an agreement with an insurance agency, that covers certain items in the home. The home warranty, which usually stays in force for about a year, covers the costs of either a repair or replacement...

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