Credit & Getting a Job

If you are applying for jobs, be prepared for the dreaded credit check. Not all employers run them, and not all use them in the same way, but it is a good idea to know what is on your report before you let your future boss see it. Employer Credit Checks While some states now restrict the use of credit reports in making hiring decisions, many employers rely on them. Credit checks provide employers with information that can confirm a worker's employment history as well as information about how they manage their finances. The priority placed...

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How Can You Get the Wrong Information Off of Your Credit Report?

The three major credit bureaus, Equifax, Experian and TransUnion, are responsible for maintaining accurate personal and credit-related information on each person's or business's credit report. Sometimes these agencies make mistakes and may put false information on your report or or keep outdated information there. To correct this, you must initiate a dispute. There is no cost to dispute information on your credit report. Equifax will allow you to...

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How Can I Get a Free Credit Check to See If I Qualify for a Phone?

Most major wireless and landline telephone providers will review your credit report to decide if you qualify for service. Having a credit report with negative information such as late payments, charge-offs, delinquent accounts or collections may cause the company to request a deposit or deny you service altogether. According to the Federal Trade Commission, you can check your credit reports from all three major credit bureaus -- Equifax, Experian and TransUnion -- free once a year through Annual Credit Report. You can order your reports by phone,...

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What Do Credit Inquiries Mean on a Credit Report?

Anytime you or anyone else accesses your credit report, the credit reporting agency takes note of that inquiry and lists it in your credit file. When you view your credit report, you can see the names of all the firms that have accessed your credit report. Hard Versus Soft Credit inquiries are separated into two categories: hard inquiries and soft inquiries. A hard inquiry occurs any time you apply for new credit or an increase or amendment to an existing credit product. All other kinds of inquiries are classified as soft inquiries. When...

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Unfavorable Credit History

An unfavorable credit history is one that includes information collected and disseminated by any of the three major credit reporting agencies (CRAs)--Equifax, TransUnion and Experian--regarding failure to fulfill credit obligations. CRAs are regulated by the Fair Credit Reporting Act. Payments Late payments or non-payments trigger negative reports, which include the number of accounts past due, how long they have been past due and the amount...

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How Can I Add Payment History & Auto Loans to My CPN Number?

Your Credit Privacy Number is a nine-digit number used to report information to the credit bureaus. These numbers evolved as alternatives to using a Social Security number. Today, any U.S. citizen can receive a CPN instead for use with their credit profile. Once you have a CPN, you can use this number to check your credit history. If you do not see your payment history listed under this number, you can ask your creditors to begin filing the information...

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How to a Get Negative Account Off a Credit Report

A negative credit record can adversely affect your credit score. A lower credit score can cost you more money due to higher interest rates, and can even cause a denial for loans or financing. Also a low credit rating can cause you to pay a higher insurance premium or be denied for a job. Instructions 1 Gather all three credit reports from Equifax, Experian and TransUnion. It is best to have all three credit reports determine if the negative account is on one credit report or all three. You can get your credit report online on each credit...

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How to Increase a Credit Score With a Bank Loan

Your credit score is a number used to evaluate your credit-worthiness based on your credit history. The national credit reporting agencies TransUnion, Equifax and Experian determine your credit score. Each calculates a score for you independently based on the information in their database about your credit history. The MyFICO website provides information on many ways to increase your credit score, such as reducing your debt on revolving credit accounts and having inaccurate information removed from your credit report. Additionally, if you qualify...

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How to Rebuild Credit After a Bankruptcy Dismissal

Filing a bankruptcy doesn't mean you'll receive a discharge or have your debts forgiven. A judge takes a close look at the case, and sometimes, a judge will dismiss a bankruptcy. What's more, you can voluntarily dismiss a bankruptcy if you do not want to proceed with the process. A bankruptcy dismissal means you're still liable for the debts. Fortunately, there are ways to rebuild credit after a dismissal. Instructions 1 Contact each creditor and workout a new repayment plan. Mention your desire to remove the debt in order to avoid a bankruptcy....

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How to Get Wrong Information Removed From Your Credit

A credit reporting agency like Experian, Transunion and Equifax receive credit account information provided by the company managing the account. The companies can sometimes put incorrect information on your reports, or you may end up in a situation where someone has stolen your identity and opened many accounts. You can dispute the wrong information through each reporting agency in order to clean up your credit report. Instructions Experian 1 Navigate to the Experian online dispute webpage (see Resources). 2 Get the credit report number...

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What Does "Pays As Agreed" Mean On a Credit Report?

In the United States, Equifax, Experian and TransUnion maintain records pertaining to your credit history. These bureaus rate your credit-management skills in a number of different ways, including keeping track of the number debts that you paid per the original terms of the loan agreement. Paying an account as agreed has a beneficial effect on your credit score. Pays As Agreed When you take out a loan or a credit card, you agree to make monthly payments toward the debt. These payments fall on the same day each month unless that day happens...

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Credit Score & Consumer Behavior

A FICO credit score reflects the information contained within a credit report. The use of credit scores helps lenders determine approvals or denials of credit applications. How a consumer handles his finances contributes to how high or low a credit score will be. History Fair Isaac Corporation invented the FICO scoring model in 1989. The endeavor was a joint venture with Equifax and the score was known as BEACON at the time. According to...

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What Are the Tier Credit Ratings?

Lenders use credit tiers to decide the cost of loans because the tiers determine what interest rates they will charge loan applicants. Lenders divide the tiers in similar ways, but they can change them at the lenders' discretion. Furthermore, there's no guaranteed interest rate assigned to credit tiers no matter what type of credit rating a borrower has. Interest Rates Most lenders apply tiered pricing to loans based on borrowers' credit scores, according to Bankrate.com. However, there are no industry-wide rules for dividing credit tiers...

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Is Having 3 Credit Cards Going to Damage My Credit Score?

Credit cards are a good method of building credit. As long as you practice responsible spending habits and make all of your payments on time, carrying three credit cards will not damage your credit score. Facts Possessing three credit cards does not hurt your credit score, although your score may rise or fall depending on the amount you charge on your credit cards and how recently you opened each account. The older a credit card is, the more...

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If I Cosign on a Vehicle for My Brother, Is My Spouse's Credit Affected?

Before agreeing to help a relative by cosigning on a vehicle loan or lease, consider the potential effects on your family's ability to get credit. Cosigning on a vehicle for your brother, for example, can potentially hurt your credit score. This, in turn, can affect your spouse's borrowing power. No Direct Effect on Spouse Your spouse's credit score is not directly affected when you cosign on a vehicle with your brother. You and your spouse have entirely separate credit reports. Unless your spouse also cosigns, that account is not listed...

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Information About Beacon Score

Your credit score can affect your life in several ways. Employers sometimes check credit on job applicants and lenders use credit when making loan decisions. It's important that consumers have a general understanding of what credit scores are. History BEACON is a trademark of Equifax. The company first introduced the score in 1989 in partnership with Fair Isaac, inventors of the FICO scoring model. This was the first general purpose risk...

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Does Having a Debit Card Help My Credit Score?

Although a debit card looks a lot like a credit card, it pulls money directly from your checking account instead of borrowing it from a lender. Using credit cards responsibly can help your credit score, but the same is not true of debit cards. Direct Effects A debit card does not directly affect your credit score. This is because purchases and payments on your debit card are not reported to the credit bureaus. Only items reported to the credit...

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How to Establish Credit with Bad Credit

Even if you have bad credit, you at least already have established credit. Your next step is to turn poor credit around by cleaning up credit reports and taking other steps to improve your credit score. However, don't expect the turnaround to take place overnight. Reestablishing credit requires a commitment of 12 to 24 months. That's generally how long creditors like to see you making on-time payments--on all of your accounts--before extending additional...

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Do All Three Credit Bureaus Delete the Same Information?

In the United States, there are three major credit bureaus that maintain completely separate files of consumer credit information. Your credit reports provided by Equifax, Experian and TransUnion might not all be the same and you have to work with each bureau separately to get inaccurate information deleted from your credit report. Guidelines for Deletion Credit bureaus delete information from your credit report only if it is incorrect or has been on your credit report for longer than it legally can be. In general, negative information...

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How Can Personal Responsibility Affect Your Credit Record?

Your credit score is a key factor in matters that are totally unrelated to your ability to pay off a debt. A subpar credit score can keep you from landing a job, getting an apartment or obtaining a favorable auto insurance rate. It's no surprise that your credit score is such a big factor in these decisions --- your credit score is the best tool a company has to assess your level of personal responsibility. Timely Payments The most critical factor in determining your credit score is your ability to make your monthly payments on time. If...

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Credit Repair Process

The credit repair process takes times, and this entails changing bad habits and understanding how credit scoring works. You don't have to pay a professional credit repair agency to fix your low credit score. Although there is no easy fix to repair damaged credit, there are effective ways to raise your score on your own. Instructions 1 Review the information on your credit report. Disputing wrong entries on your credit report can help increase...

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How to Separate Credit Scores After a Divorce

Each individual has his own private credit record. When you get married, your credit report is not merged with that of your spouse. Most couples do, however, accrue joint debts over the course of their marriage that will appear on both of their credit reports. It is vital that joint debts be separated following a divorce as each individual's financial behavior can affect the credit score of the other spouse. In this way, credit scores and financial responsibilities can be truly disassociated following a divorce. Instructions 1 Pull a...

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The Best Ways to Remove Inquiries From a Credit Report

A single hard inquiry into your credit history does no more than five points of damage to your score, but several of them could cause significant harm. You may, however, be able to remove inquiries from your report. The best way to remove inquiries might involve no work on your part. Considerations You cannot remove an inquiry from a credit report if it was a legitimate request, according to the Federal Trade Commission. Some non-lenders, such as cellphone companies, do a hard pull that counts against you. Soft pulls are not related to...

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Tips to Repair Credit Scores

A bad credit score can mean a borrower has to pay higher interest rates or may not be able to obtain credit at all. By taking the appropriate steps, you can begin to repair your credit score and be back in good standing in less time than you imagined. Changing habits and taking the initiative to regain control of your finances will raise your credit score significantly over time. Check Your Credit Reports The first step in beginning to rebuild...

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How Can I Check My Child's Credit for Identity Theft?

Identity theft crime rings target everyone, including children -- who make up 7 percent of all identity theft victims, according to the Christian Science Monitor. Checking your child's credit is not as simple as with an adult, because the credit bureaus are reluctant to give out a minor's report, which could lead to more theft. Identification You can check a child's credit. If he is under 13, you must mail in your request along with a copy...

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Does Negotiating My Credit Card Debt Have a Negative Impact on My Credit?

It is not uncommon for credit card companies to settle debt for 50 cents on the dollar or less, but debt settlement could ruin your credit for years to come and not help your situation as much as you think. Lenders will report your account as settled in some fashion, and you could have to deal with negative consequences from the IRS, too. Identification Negotiating your credit card debt for anything less than the original balance has a negative impact on your credit report. Settled accounts are a major delinquency in the FICO credit scoring...

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How a Change in Terms Affects a Credit Score

According to MyFico, your FICO credit score ranges from 300 on the lower end to a high of 850. The higher the score, the better your credit is considered to be. Lenders, landlords and even some employers check your credit score before doing business with you; therefore, it's beneficial to learn how a change in your credit terms affects your credit score. Identification Your FICO score contains five components. The first 35 percent of your score measures how well you pay your bills. Thirty percent reflects the amount of debt that you have....

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How to Improve Your Credit Score in Less Than 30 Days

Ready to jump in to the real estate market, but found that your credit score needs a quick boost in order to qualify for a mortgage? Follow these steps to learn the most effective ways to achieve quick improvement of your credit score. Instructions 1 Obtain a recent copy of your credit report (from all three of the major credit reporting agencies). 2 Determine what your credit limit is for each revolving credit card account you hold (contact...

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How to Rebuild a Credit Rating

Your credit rating is determined by several factors on your credit report. These include age and amount of debt, total debt to available balances ratio, payment history and collection accounts. Negative information stays on your credit report for seven to ten years. Thus, rebuilding your credit history can take time. However, you can begin to rebuild your credit rating today by making small changes and by taking control of your credit situation....

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Equifax Credit Information

Equifax, Inc. of Atlanta, GA is a company that specializes in providing credit information to businesses and individuals for the purposes of managing their finances and personal credit data. According to the Equifax website, Equifax is the only credit reporting agency authorized to provide a FICO credit score. Identifying Information The first section of an Equifax credit report contains information about the individual, such as all names used, date of birth, social security number, previous and current addresses, previous and current phone...

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Does Paying a Credit Card Balance in Full Hurt a FICO Score?

More than half of all American credit card holders pay their balance in full monthly, according to a 2009 "Consumer Reports" magazine survey. You must make the minimum payment that your card issuer bills you for each month, but you can send more or pay off the whole balance any time. You affect your credit score any time you pay off a debt completely. Definition Credit scores were originated by the Fair Isaac Corp., now known as FICO, as a measure of a person's creditworthiness. FICO still calculates these three-digit numbers, and the Experian,...

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How to Get My Credit Up With Bad Credit

Having a low credit score can be an extremely frustrating and difficult situation. After all, bad credit ratings can make it really difficult to do everything from renting an apartment to borrowing money from a lender. Although it may seem difficult to increase a low credit score, several tips can be helpful in doing so. Instructions 1 Be prompt with your bill payments. Although it seems like the obvious answer, always paying your bills on...

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How Do I Increase My FICO Score From 609 to 620?

A FICO (Fair Isaac Corporation) score helps lenders examine credit history to decide what kind of rate to give borrowers. Scores range from 300 to 850 with 687 as the mean score. Scores are created from a myriad of factors such as payment history, debt, credit history, new credit and types of credit. Lenders typically assign a higher rate to borrowers with a FICO score of 600 or below because a low score equates to a higher credit risk. Although...

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Will Paying Off Old Debts Restore a Credit Report?

All debts, even old ones, have a negative effect on your credit score. A debt can lower your available credit limit, lead to missed payments or add a negative collection file to your credit report. While paying a debt will not remove the past information from your credit report, it may improve your credit score in other ways. How Debt Affects Your Credit Score Carrying debt affects your credit score in several ways. Carrying a high balance on one or more credit cards lowers your available credit limit and drops your credit score. If you...

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Is the FICO Not a Good Measure of Risk?

The Fair Isaac Corp., or FICO, first developed a formula for assessing credit risk during the 1950s, and the three national credit rating agencies: Equifax, Experian and TransUnion, all use credit scoring based on the FICO model. However, FICO scoring models rely on historic data, and some argue that you should not rely on FICO scores alone when measuring risk. Basics The credit scoring models used by all three national credit bureaus have certain similarities, such as the fact that credit scores in excess of 750 are viewed as good and...

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Credit Rating Process

Credit Bureaus There are three major credit bureaus, Transunion, Experian and Equifax, that collect demographic and financial information on consumers. This information includes a person's name, address, employer, loans, credit card accounts and payment history. This information is used to determine the person's credit rating. A poor payment history and other negative information can bring down a credit rating significantly. A good history...

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Credit Cards to Rebuild Credit After a Bankruptcy

When you're repairing your bad credit, you need to address each of the categories that contribute to the calculation of your score. Using your credit cards responsibly contributes greatly to boosting your score, but the process takes time, patience and diligence. Once you've established yourself as a responsible credit card holder, you will see your score rise significantly. Opening New Accounts Ten percent of your credit score is based on...

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What Are FICO Credit Scores?

Fair Isaac Corporation credit scores estimate the risk of lending money to a particular individual. High-risk borrowers are people with low FICO credit scores, likely because they do not have much credit history or because they have managed credit poorly in the past. Lenders prefer low-risk borrowers because these individuals' high credit scores demonstrate that they have consistently repaid debts in the past. Range FICO credit scores range from 300 to 850, although most people have scores in the 600s or 700s. According to the Consumer...

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Is There a Quick Way to Raise Your Credit Score?

Raising your credit score by a couple hundred points can take over a year, but there are some things you can do to quickly raise your credit score. Some of these tricks for raising your credit score quickly are almost entirely unknown to the general public. Goodwill Adjustment Goodwill adjustments are when a creditor will agree to erase a previous late payment from your credit score. To receive a goodwill adjustment you have to make a request...

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