How Does Your Credit Score Affect Car Loan Interest?

If you use credit, the issuer of that credit will report your account history to the credit bureau. The credit bureaus -- TransUnion, Experian and Equifax -- use this information to create a personal credit report on you. According to MyFico, your FICO credit score is based upon data found in your credit report. Your credit score affects the interest rate you receive on a car loan. Identification Your FICO credit score is broken down into five key areas: 35 percent of the score reflects how you pay your bills, 30 percent reflects the level...

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How to Boost a Credit Score to 700 Fast

A credit score is a three-digit number that affects many aspects of your life. It's a summary of your credit history from the past seven years. A credit score tells potential lenders how credit-worthy you are. A high credit score lets you borrow money at a good exchange rate. A low score can prevent you from getting a loan, buying a house or a car, getting a phone contract, or landing your dream job. A score of 700 or higher is considered good. Although...

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Where Can I Get My Three Major Credit Scores?

The three major services that provide credit reporting data are Equifax, TransUnion and Experian. Each of these companies provides a variation of the FICO score, using the formula created by the Fair Isaac Corp. It is possible to order your credit report from each of these companies for a small fee. It is also possible to use various credit- and identity-monitoring services, which will provide you with a credit score on a weekly or monthly basis. Finally, you are entitled to see your credit report from each company for free one time annually....

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How to Remove Your Name From Bad Credit

No matter what your credit situation is, the Fair Credit Reporting Act (FCRA) is a law designed to promote accuracy and fairness when a business reports information to the nation's consumer credit reporting companies. Enforced by the Federal Trade Commission (FTC), the FCRA includes safeguards and avenues you can take to correct or improve your credit rating. Instructions 1 Review your information from all three credit reporting agencies to make sure they all have the same information. It is important to ensure creditors are reporting the...

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How Is Credit Score Affected by Marriage?

Couples need to have pre- and postmarital money and credit conversations wherein they openly discuss their views about credit; these conversations should continue throughout the marriage. Never assume you both think the same way about how to use and manage credit. One essential point to understand is that marriage in itself will neither help nor hurt your credit score. Instead, the smart credit moves you and your spouse make or fail to make before...

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How to Write a Letter Expressing an Error to a Credit Report Agency

Your credit report contains information about your borrowing history that is used to calculate your credit score. This score determines whether your applications for credit are approved and what interest rate you pay, so it is important that your score be as high as possible. However, sometimes your credit report contains errors that could drag your score down. The Fair Credit Reporting Act gives you the right to dispute any piece of information on your credit report that you believe is in error. The credit reporting agency must investigate your...

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How to Remove a Judgement Lien

A judgment lien is a lien placed on your credit report by a court order. Judgment liens are put in place when a creditor takes you to court for unpaid bills and he is awarded the judgment. Judgment liens have a bad effect on your credit score and if it makes your score low enough, you may be unable to get credit cards, loans, or even a job. Instructions 1 Use Annual Credit Report to get a free copy of your credit reports from Transunion, Experian,...

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What Does the Vantage Credit Score Mean?

Vantage is a newer credit scoring system, introduced in 2006, that the three major credit bureaus developed to compete with the FICO scoring system. The FICO system is purely a numerical one, whereas the Vantage system uses numbers and letters. Significance Whenever a lender asks to see your credit report, the lender traditionally receives your FICO score. The lender pays the credit bureau for this information, and the credit bureau pays Fair Isaac, the corporation that trademarked FICO. By using Vantage, the credit bureaus don't have to...

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Factors Affecting Credit Rating

Credit ratings are reports that lenders use to determine an individual's credit risk. Banks, credit card companies and other lenders retrieve credit ratings on people from credit reporting agencies. Credit reporting agencies use various factors to determine credit ratings. These factors can range from credit history to current debt. Past Credit An individual's credit history is kept on record for years. Credit agencies use a series of checks and balances to determine a person's credit rating based on this history. Lines of Credit ...

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FICO Score Meanings

A FICO score is one way for lenders to measure your creditworthiness when they are considering extending you a loan or a line of credit. Score Scale The FICO scoring scale runs from 300 to 850, with higher scores meaning a lower risk of default on the loans. According to MyFICO.com, the median credit score is between 700 and 749. Good Scores According to Bankrate, a score of 760 puts you in an excellent position. Scores of 720 and higher will also generally qualify you for most credit cards. Bad Scores According to Bankrate.com,...

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How to Use Your Credit Card to Build Your FICO Score

A good credit score, known as a FICO score, is essential for getting the best rates on loans. If you have bad credit or no credit at all, you can use your credit card to build your FICO score. Remember that a good credit score comes from using credit responsibly. If you abuse your credit, you'll see a drop in your score rather than an increase. Instructions 1 Check to be sure that your credit card reports to the credit bureaus. Some credit cards, particularly secured credit cards, don't report to the credit bureaus. Check your credit report--you...

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Good Vs. Excellent Credit Scores

Financial institutions look at credit scores when deciding if they will accept or deny a loan application and what the interest rate will be on an approved loan. The higher your credit score, the better interest rate you will receive. Excellent Credit An excellent credit score is over 800. This score reflects a long time of paying bills and loans on time, having filed no bankruptcy, and having no collection accounts. All signify that you're an excellent credit risk. Very Good Credit A very good credit score is between 750 and 800....

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Credit Score Factors

Although a credit score is one three-digit number, it is calculated using five separate factors. Fair Isaac Corp. has developed a formula that uses certain information from credit reports to determine this number, which is used by lenders and financial institutions to rate your creditworthiness. You should know the five factors and how much weight each one carries so you can improve your credit score or maintain it if you have a good one. Payments...

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How Long Does a Late Payment Affect Your Credit Score?

Late payments on your credit accounts can cost you in both late fees and damage to your credit score. While a single instance of a late payment may not do too much damage to your credit rating, it can trigger concern in other creditors which can raise your interest rates. Keep an eye on your payment due dates, and keep in touch with your creditors if you need to delay a payment. Credit Reports and Scores Your credit reports are records of...

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What Are My Options for a Car Loan When I Have Poor Credit?

A poor credit score doesn't mean you're stuck walking or relying on public transportation. Most people need reliable transportation, but having a bad credit score may stop you from applying for an auto loan. Because automobiles secure auto loans, there are ways to acquire financing without the best credit history. Explore your options and get the car loan you need. Bad Credit Lenders Some auto dealerships are less accommodating when borrowers have a poor credit score. Finding an auto dealer that specializes in or offers bad credit loans...

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Do Wages Garnished Appear on a Credit Report?

Anybody can find out about your wage garnishment because it is a public record, but it may not affect your credit rating. However, a garnishment can make it difficult, or at least more expensive, to acquire a loan. If you already have a wage garnishment, you probably cannot stop it, but you can prevent future wage garnishments. Identification The national credit reporting bureaus do not list wage garnishment orders on credit reports, even though they collect information on other public records, such as bankruptcy and civil judgments. However,...

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When Do Medical Collections Drop Off Your Credit Report in Florida?

Unpaid medical bills that result in medical collection efforts are a common blemish on credit records and among the leading causes of bankruptcy filings. While such negative events will stay on your credit record only for a specified period, in Florida or any other state, the medical provider or debt collection agency can continue to take legal action for the payment of this unresolved debt after that point. Credit Reports Credit reports...

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How to Change Charge Off to a Good Tradeline

Replacing a charged-off account with a good trade line takes time and money. Creditors charge-off delinquent accounts when you fail to pay on a debt for an extended period of time. Charged-off accounts are often sold to collection agencies, and you cannot re-open a charged off account. However, if you work with your creditor and the collection agency to settle the debt then you can eventually establish a new credit account. Charged-off accounts remain on your credit report for up to seven years, but as time goes by, older accounts have less of...

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Little Known Things That Hurt Your Credit Score

When it comes to important elements of your financial portfolio and history, few things are more critical than your credit score. Lenders look at this score to determine whether you're eligible for a new line of credit, such as a mortgage or a loan, as well as what kind of interest fees to charge you. Thus, keeping your score high is essential. Alas, several little-known things can actually tarnish your score. Library Fines and Parking Tickets That $2.50 fine from your library, and that $40 ticket from parking your car at the wrong curb,...

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How Can I Improve My FICO Scores Right Now?

Your FICO score is a credit score calculated using the formula developed by the Fair Isaac Corporation. Financial institutions report your financial history to credit bureaus, and the credit bureaus calculate your credit score. The three major bureaus in the United States are Experian, Equifax and TransUnion. Having a good credit score will increase your chances of being approved for a loan and getting a low interest rate. Though it takes time to...

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What Can You Do if You Do Not Have Enough Credit History?

Having not enough credit history can cause rejections for credit just as if you were someone with poor credit. You can overcome an insufficient credit history, but you must use credit to do so. You probably have to start off at the bottom of the credit food-chain, but you may build enough credit within months to move up to premium accounts. Identification There is nothing you can do to counteract a limited credit history other than starting new accounts to build credit or using the ones you already have. If you open any new accounts, it...

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The Evaluation of Credit Scores

A three-digit credit score evaluation is sometimes the only thing a lender needs to reject your application for credit or approve your for the lowest rate possible. A high credit score does not always mean the creditor wants you as a customer. Also, technically, there is no standard definition of what is good credit. Credit Score Algorithms Credit score algorithms evaluate your credit history based on how well you repay loans compared to people in a similar financial situation, not your ability to repay a debt. The most common scoring system...

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How Do Judgements Affect Credit Scores?

A judgment occurs when the court orders the defendant to pay the plaintiff a certain sum of money. Once a judgment is entered, that information appears on the defendant's credit report and impacts the credit score. History The Fair Isaac corporation created the FICO scoring model in 1989 in partnership with Equifax. Back then, it was called BEACON, a trademark of Equifax. It is the score used most by lenders, according to Fair Isaac. Significance...

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Debt Consolidation vs. Do it Yourself

If you want to save for your future, one important first step is to get rid of your debt. If you're paying 5, 10, 15 percent or more on a debt account, paying off that debt quickly is a way of saving money in interest costs. You can pay off debt either by consolidation or by initiating your own personal debt payoff plan. Debt Consolidation Option A debt consolidation is a plan to pay off debt by combining all debt into one loan account. Debt consolidation companies often offer to negotiate with creditors to get better terms and then combine...

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Why Do They Do a Credit Check for a Job?

As part of a background check, many companies will take a look at your credit report. Some companies feel a credit report will provide some insight into who you are as a person, as well as information about your work ethic. Character If you are applying for a job where you will be dealing with money, many companies will take a look at your credit report to see if you are paying your debts on time. This provides insight about your ability to handle money for the company. Theft A company may be concerned about the amount of credit...

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How to Raise Your Credit Score by 10 Points

It would be nice to know that certain actions could raise a credit score by at least ten points. In reality, there's no way to predict precisely how many points your credit score will rise because of the myriad complex calculations that go into determining a credit score. The important thing is to take the steps that work with rules and logic of the scoring agencies. Those are the moves that are likely to increase your score. Instructions 1...

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What to Do If I Want to Find Out My Credit Score

The information in a credit report is used to help calculate a credit score. A high credit score can mean better credit options, such as lower interest rates and higher credit limits. Part of maintaining a credit score is monitoring it annually. Who Calculates Credit Score Credit scores are often referred to as FICO scores. The majority of scores given to consumers by credit bureaus are produced from software developed by Fair Isaac and Company. Lenders obtain credit score information from the major credit bureaus: Experian, Equifax and...

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Is Permission Needed to Run a Credit Check in Oklahoma?

A credit report contains detailed information about a person's current and past use of credit and other forms of loans. If you want to check someone else's credit report in Oklahoma, sometimes known as performing a credit check, you have to meet the standards imposed by federal law. Generally, this means that you either have to get the other person's permission or engage in a credit transaction with the person. Credit Report Laws The Fair Credit Reporting Act, or FCRA, is a federal law that governs the use of credit report information and...

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How to Contest a Credit Report

A credit report is a compilation of information on how a person pays his debts, where he lives and whether he has been arrested, sued or filed for bankruptcy. A credit reporting company compiles the information and sells it to banks, employers, creditors and landlords. An error on a credit report may stop an individual from getting credit, a job, an apartment or a mortgage. Instructions 1 Obtain your credit report from each of the three consumer reporting companies: Equifax, Experian and TransUnion. You can do this over the phone, online...

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Does Canceling Your Credit Cards Hurt Your Credit Score?

Canceling your credit cards can hurt your credit score. The damage doesn't come from the act of canceling the accounts, but rather from the effect that canceling them will have on key factors involved in calculating your credit score: the amount and types of credit available to you, the amount of available credit you are using and, in the long term, your payment history. Credit Scores Fair Isaac Corporation, the company that developed the...

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