Credit Bureau Reporting Rules

Credit bureau reporting can be a major source of contention for both policymakers in Washington and the average American. With the vast amount of information updated each day at credit bureaus, some mistakes are inevitable. Errors on such a vitally important financial document can wreak havoc on your ability to borrow money and even get hired, so stringent rules have been created to monitor and manage those who report information about your finances to credit bureaus. FACT Act The FACT Act (updated in 2003 with stronger identity theft protections)...

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How to Get Your Beacon Score Online

A Beacon credit score is the name of your credit score from Equifax. Each of the three credit bureaus (Trans Union, Equifax and Experian) has different names for the credit score it provides; however, each score is derived from the Fair Isaac model. This ensures consistency in the way items on your report affect your credit score. Each year, you are entitled to a free credit report from annualcreditreport.com. While this report does not include a free score, you have the option to purchase one from Equifax or any of the other credit bureaus. ...

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Explanation of the Credit Score

A credit score is a calculation of how likely a person is to pay bills. Higher credit scores enhance a person's chance of credit approval. Credit Approval A person seeks credit approval to purchase new items such as cars, homes or credit cards. A high credit score leads to credit approval, lower interest rates, and smaller payment options. What is the Credit Scoring Process? A credit score forms from the information lending companies report to credit bureaus. Late payments or failure to make payments cause lending companies to report...

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What Is a Good Credit Report Score?

Outside of your Social Security number, your credit score might be the most important number associated with your identity. Your credit score is the key to unlocking the best things life can offer. With a good score, you have access to the best interest rates, saving you thousands over rates offered to people with lower scores. It's important to know your credit score and whether it's considered good in relation to the rest of the population. Credit Score Basics Your credit score is a snapshot of your credit profile at the specific moment...

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Are Credit Reporting Agencies Required to Provide a Credit Score?

In the United States three consumer reporting agencies -- Equifax, Experian and TransUnion -- compile consumer credit reports. In certain situations you are entitled to a free credit report from each of these agencies. However, the credit report does not contain your actual score and these firms are under no legal obligation to share your score with you, although, generally you can obtain it if you agree to pay a fee. Report Versus Score Your credit report contains information related to your credit history including details of your payment...

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Will a One-Time Late Bill Affect My Credit?

Your FICO credit score can determine the interest rate you'll pay on a loan or credit card. It can also impact whether an employer will hire you or not. It's a very important three-digit number that ranges from 300 to 850. Credit scores reflect how you handle your credit, so it's prudent to understand how a one-time late payment on a bill can impact your score. Your Score The information on your credit report determines your FICO credit score. The score reflects both positive and negative payment history. Creditors report late payments...

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How to Buy a Credit Report

Whether or not you can obtain a loan to buy a house or car and how high your interest rate will be depends on your credit rating. Obtaining a credit card, qualifying for a rental lease and even some jobs are also based on your credit score. Keep track of your rating by buying and reviewing your credit report. Identify any errors and have them corrected before they adversely affect your rating. Instructions 1 Go to Equifax.com and click the red "Get Started" button. 2 Enter your name, address and email address. Click the red "Continue"...

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How to Rebuild Your Credit and Bring up Your Credit Score

Your credit score takes a beating if you go through a rough period of late bill paying, default on any accounts or even go through bankruptcy. A low score and credit reports full of negatives keep you from getting competitive interest rates, and you may not qualify for loans and credit cards at all. Credit rebuilding is possible, although it takes time and effort. Your score goes up and creditors are willing to give you accounts once you prove financial...

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Can Closing Accounts Better My Credit Score?

Companies like FICO and the three credit bureaus calculate your credit score through a proprietary formula. This three-digit number summarizes your perceived ability to meet financial obligations. Creditors use it in their decision-making process when you apply for new accounts. You can take certain steps to make your score better, but closing existing accounts is not always a wise move. Negative Effects Credit scores take numerous factors into account, including how long you have had each of your accounts, how well you meet payment deadlines,...

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Do Returned Checks Go on Your Credit Report?

Writing a bad or "bounced" check could become fraud and might even ruin your credit history. The major credit reporting bureaus do not report banking history, so it is likely that a returned check only hampers your ability to acquire a bank account. As credit scoring models evolve, however, bounced checks could become part of any standard credit risk analysis. Identification As of 2010, the major credit bureaus in the U.S. use a credit scoring...

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Can a Criminal Record Affect Your Credit Score?

The average person has a 5.1 percent chance of doing time in a state or federal prison, according to the U.S. Department of Justice. Going to jail can affect finding gainful employment but not a credit score. People with a criminal record are not totally in the clear, because even minor crimes can prevent you from getting a loan. If a criminal past makes you not creditworthy, you might be able to "hide" this information. Identification The credit rating agencies are legally allowed to include criminal records when calculating credit scores,...

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How to Fix Credit Report Inaccuracies

When a potential lender is determining if he will extend credit to you, he will use your credit report to impact his decision. You cannot afford to have your information compromised with inaccurate information, especially if the lender is already on the fence about extending credit to you in the first place. Instructions 1 Order a copy of your credit report. In order to repair inaccurate information you need to identify the mistakes. The Fair...

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How to Freeze Credit

Identity theft in the United States is a major problem that could happen to anyone. One of the reasons credit information is accessible to thieves is because not all credit card companies and merchants sufficiently protect your personal financial information, especially when you purchase items online. A recommended step to prevent identity theft is to issue a security freeze, which will lock access to your credit information. Placing a security freeze does not affect your credit score--it only stops most people from being able to gain access to...

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How to Increase or Build Credit

Your credit history is a work in progress from the moment you get your first bank account, loan or credit card. Your financial moves continue to influence it as they show up on your credit reports with Experian, TransUnion and Equifax and affect your credit score. You can build a positive credit history and raise your score in various ways as long as you know which factors have the biggest effect. Instructions 1 Use all of your credit cards....

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External Credit Rating Agencies

An external credit rating agency conducts due diligence on bond issuers on behalf of investors. When a company or government entity wants to issue a bond, it will typically approach one or more of the external credit rating agencies and provide access to its business books, including balance sheets, cash flow statements and projections. The company also will supply information about its overall financial stability and liquidity. The credit rating agency will assign a rating, or grade, to the bond issuer's economic resiliency and its ability to...

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Factors Affecting Your Credit Score

A credit score is a mathematical calculation that helps a lender or other creditor determine whether you will be a safe risk in paying back money that you want to borrow. Yet according to a survey conducted by the Consumer Federation of America, at least 40 percent of Americans do not know their credit scores (see Reference 1). There are several basic factors that affect a person's credit score, thus influencing the ability to qualify for a mortgage loan, auto loan, credit card or any other form of credit. Current Debt Creditors look at...

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Why Is Credit Scoring Used?

A credit score is a numerical representation of an individual's ability to manage financial credit in a responsible manner. The score also reflects the risk a financial institution may take if it extends additional credit in the form of a loan, a line of credit or a revolving credit account. Credit scores are tabulated based off a proprietary formula that can include total outstanding debt, age of credit accounts, type of accounts, number of late...

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How Can I Get My Credit Score Online?

While everyone in America is entitled to a free annual copy of their credit report from each of the three major credit bureaus, it can be more difficult to obtain a free credit score. Your credit score, which can range from 300 to 850, is perhaps the most important factor in determining whether you will be given credit, and what interest rate you will be charged to borrow money. Although there may be a cost associated with obtaining your credit score, there are several methods of obtaining the score for free. Obtaining Credit Scores from Credit...

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Credit Report Dispute Tips

Inaccurate and negative information can affect the credit score of a consumer in a negative way. Each of the three major bureaus allows consumers to dispute information that is in the report in order to remove entries and raise their score. Knowing how to handle a dispute is important and can result in a higher credit score and a report that is more attractive to lenders. Look for Inaccurate Information When determining which information to dispute, consumers should first look for information that is inaccurate. These can be the easiest...

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Is It True That When You Check Your Credit Score It Goes Down?

Don't be concerned about checking your own credit report and score. While it is true that your credit score can suffer a temporary hit when potential creditors check your report, you can check your own score as often as you like without repercussions. Credit Reports A credit report details your history of requesting and using credit. Companies known as credit bureaus or credit reporting agencies compile your report using information provided by creditors or recorded in public records. Your credit report lists the name of your creditors,...

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How to Explain Financial Hardship to Justify a Negative Credit Report

Many people fall into financial hardships that result in late payments on loans and credit cards. Although most hardships are temporary, negative information remains visible on your credit report for seven years, or 10 years for bankruptcy. Derogatory items on your credit report can hinder you from getting additional credit or even employment so you must be able to successfully explain your financial situation when you incurred the negative history and how you have improved since then. Instructions 1 Give a thorough but short description...

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The Best Way to Raise Your Credit Scores After Paying Debts

Your credit score is calculated based on the information on your credit report and is used by lenders to determine how creditworthy you are. Some employers even review potential employees' credit reports before hiring, especially in positions that deal with money transfers and sensitive information. Paying down your debts is a great way to raise your credit score, but there are other steps you can take to continue to raise your credit score. Leave Accounts Open Though it may seem like a good idea to close your credit cards accounts after...

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Steps to Improve Your FICO Score

Your FICO credit score is highly important when buying a house or financing a car. A low score reveals past issues and will likely result in a higher interest rate or a credit denial. But with a high FICO credit score, you can possibly walk into any mortgage office or auto dealership and qualify for the best interest rates. Lower rates decrease monthly payments and save you money every month. Raise your FICO score by making a few changes in your...

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How to Clear Up Credit Scores

Your credit score, also known as your FICO score, is a compilation of your credit history and is the most important piece of financial information about you. If your credit score is low, you can be denied home and car loans, rental leases, and more. Your FICO score measures your payment history, outstanding balances, length of credit history, new credit and types of credit. To improve your credit score, you need to work on each of those areas. Instructions 1 Do everything you can to keep your credit card debt from going to a collection agency,...

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How to Safely Check Credit Score

With identify theft a constant threat, you should periodically check your credit score, especially before applying for a loan. You can get free reports from all three of the main credit reporting companies listing your credit history. A credit score is different, however; it is a three-digit number from 300 to 850 that gives lenders an idea of your previous bill-paying history and outstanding debt. The higher your score, the better loan terms you can negotiate. A credit report is free; a credit score is not, and will cost around $20 to...

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Instructions on Interperting Equifax Credit Bureau Reports

Your credit report and credit score can help you understand your financial fitness--the information present on a credit report helps determine your eligibility for things like home and car loans. There are three major credit reporting bureaus. One of these is Equifax, which is over 100 years old and based in Atlanta, Georgia. Obtaining your Equifax credit report easily, but understanding the information is what counts when you're studying credit...

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When You Can Legally Remove a Bankruptcy From Your Credit Report

Bankruptcies can stay on your credit report for some time, but you are not stuck with a bankruptcy affecting your credit score forever. Instead the bankruptcy will eventually drop off from the reported items on your credit report. If your bankruptcy is old enough, you can request that the credit reporting agency remove it before it falls off on its own. Type of Bankruptcy The two main types of consumer bankruptcy, Chapter 7 and Chapter 13, have different reporting times on your credit report, so know which type you went through. If you...

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