Help for Clearing a Credit Report

Creditworthiness is crucial to obtaining home and auto loans, as well as receiving decent rates on insurance. It is important to have a decent score and to do this, some modifications may need to take place. If your credit report is spotty, there are a few things you can do to improve it. Examine Credit Report Get a copy of your report from all three major credit bureaus: Experian, TransUnion, and Equifax. Look carefully at all three reports to determine where your score needs to be improved. If your debt-to-income ratio is too high,...

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What Does Tier 3 Mean on a Credit Report?

Most people's credit scores fall into the top two tiers, which are the highest scores, but the average credit score lies in the third tier as of 2011, because many people with below-average scores have such poor credit that they drag the national average down. Having a credit score that falls into the third tier probably won't prevent you from obtaining credit, but it likely will cost you thousands of dollars more for a loan than someone in the excellent score range. Identification In a typical credit score bracket, the third tier usually...

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Does Car Repossession Affect Your Credit?

According to the U.S. Department of Labor, the unemployment rate for October 2010 was 9.6 percent, with 14.8 million people collecting unemployment compensation. When money is tight, people usually choose to pay for the essentials first: housing, utilities, food and medicine. Depending on the type of car loan you have, car repossession may occur as soon as the first missed payment is beyond the grace period, which varies by state. Drawbacks for...

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Can Credit Bureaus Report Medical Bills?

A medical emergency can turn your world inside out in more ways than one. Even if you have great health insurance, chances are good you will have an outstanding balance after your insurance company pays. Failing to adhere to the terms of a payment plan or ignoring the bill can have a negative effect on your credit rating for many years to come. The Facts Credit bureaus can and do report all information they receive from creditors on your...

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Does Looking for a Mortgage Affect Your Credit?

Credit scores mean a lot in the mortgage industry, because a few tenths of a percent can add up to thousands of dollars on these large loans. Unfortunately, the act of looking for a mortgage usually lowers your credit score. However, the credit reporting bureaus give you a break on the damage of a credit inquiry if you "rate-shop." Identification Looking for a mortgage hurts your credit once you consent to a credit check. Credit inquiries take between zero and five points off of your credit rating under the FICO system, according to the...

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How Can Applying for an Apartment Affect a Credit Score?

Applying for an apartment can have an adverse affect on your credit score if youre not informed. By understanding what happens when a leasing agent requests your credit score, youll be better prepared to minimize that affect. Depending on your particular situation, you may not be affected at all. Credit Inquiries The leasing agent will ask for authorization to check your credit report whenever you submit an application for an apartment. When...

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Can a Lawsuit Affect Your Credit Report?

A lawsuit is simply a set of allegations and does not affect your credit report when initially filed. Theoretically, a debtor could receive a dozen lawsuits with none of them impacting credit reports. However, if a judge agrees with the allegations in the lawsuit, the debtor could notice significant negative changes to his credit reports. Considerations The possible effect on credit reports depends a lot on the type of lawsuit. A civil lawsuit over fruit from an orange tree falling into a neighbor's yard may force the judge to simply decide...

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Can a Co-signer in a Home Purchase Affect Credit Scores?

People buying a home sometimes use a co-signer on the mortgage. A co-signer is a person who agrees to be responsible for the debt in the same manner the owner is liable, though the co-signer isn't always entitled to own or use the home. Using a mortgage co-signer may affect your chances to obtain a home loan, or the interest rates offered, though the co-signer doesn't directly influence your credit score. Credit Score Each person's past history with using credit gets reported on that person's credit report. Credit score companies then use...

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Where to Find Credit Check for Tenants' Information

Many landlords use credit checks to screen and select tenants. Credit checks are available from several sources, including tenant screening and background investigation services. Credit Check A "credit check" is an evaluation of an individual's credit report, which includes information about the individual's debts as well as her payment history. Credit reports also include information about bankruptcies, evictions and judgments. Tenant...

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How to Raise My Credit Score Over 700

Credit scores determine almost everything when it comes to receiving credit. Those with the highest scores get the lowest interest rates, which, on things like mortgages, can add up to tens of thousands of dollars over the life of the loan. It therefore behooves most people, especially those with lower scores, to take measures to improve their credit. It does take time and effort, but a high credit score can pay off in the long run. Instructions...

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How Much Does Paying a Debt Affect My Credit Score?

Keeping a clean credit report is very important because lenders will consult your report, and the credit score based on it, before granting you credit. Paying your bills on time contributes towards a high credit score, and that makes every aspect of your financial life easier. Paying off debt is an important part of that equation. Paying Credit Cards Paying down credit card balances is an excellent way to boost your credit score. The lower your outstanding balances compared to the total amount of credit available to you, the better your...

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Does Rent Improve Credit?

Your credit report allows companies to gauge your financial standing and financial worthiness. Information on your credit report can determine whether you are approved for automobile loans, mortgages, credit cards, and apartment rentals. Traditionally, rental history would only affect credit reports negatively; if a renter did not pay rent, outstanding move-out damages or was evicted, landlords could then report this to the credit bureaus, where...

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Who Can Legally View Your Credit Report?

Your credit report is a vital part of your personal finances as its contents show your creditworthiness and can determine whether you will be able to get a business loan, receive financing or even possibly get hired for a job. Many different groups and individuals can legally view your credit report as long as you first provide them with the permission to do so. History The Fair Credit Reporting Act was signed into law in 1970 to streamline...

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Can a Property Tax Lien Affect My Credit Score?

Someone's property taxes are generally not of much interest to creditors, except in the extreme case that a homeowner fails to pay and the local government attaches a lien to the property and eventually seizes it to retrieve the amount owed. This can adversely affect the homeowner's credit score. Property Tax Lien A lien is a legal claim on an asset, in this case a home, that allows the lienholder to take possession of the asset if the debt owed, in this case taxes, is not paid. The property can then be sold to cover the unpaid taxes. ...

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How do I Remove a Negative Inquiry on a Credit Report?

A good credit score is essential. Most likely, you already know the basics. Pay your bills on time, avoid having too many revolving accounts and keep your debt to income ratio low. Many people don't realize that every time they apply for a line of credit, they are potentially harming their credit score. Creditors are likely to frown on a report with too many inquiries. Luckily, there are steps you can take to remove negative inquiries and restore...

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Does Modifying a Loan Ruin Your Credit Score?

If you are a homeowner faced with foreclosure, you may be able to modify your mortgage as a way to remain in your home. While a modification should make your loan more affordable and provide a way to keep your home, you should be aware of how the action will appear on your credit report and how it might affect your score. Before Modification If the modification has been prompted by late payments or a default of 30 or 60 days, this negative...

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Why Doesn't an Equifax Report Include the Score?

When you ran your Equifax credit report, you probably did not see your credit rating. Equifax acted legally, despite federal free credit report laws. As of 2011, you must purchase your credit score until the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act bill, which introduced regulations in the financial sector to reduce predatory lending, takes effect. In the meantime, you can sometimes receive free credit scores from your creditors. Identification Equifax does not include credit scores with its credit reports unless you...

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How to Improve Your Spouse's Credit by Adding Them to Your Credit Accounts

Does your spouse have a low credit score, or one that could use some improvement? If you have a line of credit in your name, your spouse can improve his credit by doing what is called "piggybacking" in the credit industry. Piggybacking is when you use your own good credit history to help another individual. All your spouse has to do is jump on your back and enjoy the ride to a higher credit score. Instructions 1 Enter your spouse's name, Social...

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Does a Hard Hit Reduce Your Credit Score?

Many consumers have the perception that checking your credit always hurts your credit score. In reality, some types of credit checks can hurt your credit slightly, while other inquiries have no impact. Understanding the difference between hard and soft credit inquiries can help you avoid damage to your credit score. Hard vs. Soft Inquiries When it comes to inquiring about your credit, a hit or inquiry comes in one of two forms. Some hits are considered soft inquiries, while others are considered hard inquiries. A soft inquiry is one in...

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How to Boost a Credit Rating Fast

If you're having trouble securing a car loan, home loan or credit card with a low interest rate, a higher credit rating may help your cause. Calculated with such factors as how much credit you're using, the amount of time since your last credit application and how long you've had established credit, a credit score can be improved with a few simple strategies. Consider these tips to boost a credit rating fast. Instructions 1 Check your credit...

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Credit Rating Benefits

Credit ratings help individuals access loans, housing and employment opportunities, as well as better insurance and interest rates. Alternatively, they help financial and lending institutions learn about an applicant's credit worthiness. MSN reports that a credit rating can also tell about an individual's ability to act responsibly and honor agreements. Rental Housing Before renting an apartment or home, it is common for property owners to review a prospective tenant's credit rating. Credit ratings show an individual's payment history with...

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How Many Points on Your Credit Score Is Paying Off a Judgment Worth?

Leaving your debts unpaid will result in your creditor reporting your missed payments to the credit bureaus. Stop paying altogether and your creditor will give up trying to collect from you and sell the debt to a collection agency. Both missed payments and collection accounts hurt your credit score, but they aren't a creditor's only alternatives for damaging your creditworthiness. A creditor can also seek a civil judgment by filing a lawsuit against you. While paying off a judgment demonstrates to lenders that you took responsibility for your unpaid...

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Problems With Facing a Credit Freeze

A credit freeze is a hold that individuals can place on their credit accounts preventing anyone, including themselves, from opening new lines of credit in their name. Every state in the United States allows this process, although some only allow it after identity theft. Even though there are benefits there are also problems with the process. Cost A credit freeze almost always costs something unless you have been the victim of identity theft....

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What You Need to Fix Your Credit

Bad credit not only causes higher loan interest rates, it also affects your ability to rent an apartment, get a phone line and in some cases, land a job. A credit score represents your credit history and potential credit worthiness with a numerical value. Those with a poor score or bad credit history can fix their credit with some time and hard work. Bills You cannot fix your credit score until you begin paying your bills on time. All the...

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How Much Will My Credit Go Up if I Dispute a Tax Lien & Then It's Deleted?

Tax liens can obliterate even the best of credit scores for decades, and you will probably still have to pay back your tax obligation plus interest and fees. Removing a tax lien should increase your credit score by several dozen points. Although you need to pay the tax when due, if you pay the lien immediately, future creditors should never know about it because of a 2011 IRS rule about removing tax liens and levies. Identification The credit scoring system in the U.S. punishes a credit rating the most when a borrower shows a complete inability...

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Three Steps to Boost Your Credit Score

Your credit score is one of the most important elements of your financial background. It can affect issues such as your eligibility for credit cards and the interest rate assessed on your mortgage. Generally, lenders perceive a credit score above 700 as good. If you need to bring your credit score up, three financial strategies can help you boost your credit score quickly. Pay Your Bills Right Away It's critical that you start paying your bills by their due date. Late payments lower your credit score, and your credit score drops even further...

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If a Civil Judgment Is Placed Against You, How Many Points Is Your Credit Score Affected?

If you do not pay your credit card bills or other unsecured debts, such as old utility bills, the creditor may sue you in court to get a civil judgment against you. Civil judgments are unhealthy for your finances, as they allow creditors to request wage garnishment as well as affecting your credit for the next seven years. Factors Bills.com reports that judgments affect your credit more if you have other derogatory information in your credit history than if the only negative mark is the judgment. For example, if you have several collections...

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Excellent Credit Ratings

When it comes to your financial life, perhaps no number is more important to you than your credit score. Credit scores are determined by summarizing your credit history and financial decisions. If you have an excellent credit score, it can significantly improve your financial situation and give you benefits that those with lower ratings cannot obtain. What is an Excellent Credit Rating? A credit rating is typically synonymous with a score that is calculated using the formula from the Fair Isaacs Corporation, which is known as a FICO score....

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Quickest Way to Rebuild Credit

Credit may need to be rebuilt for a variety of reasons: from a string of delinquent payments resulting in account closures or collection agency involvement, to court judgments, repossessions or even bankruptcy. FICO, the major credit score company, advises that the quickest way to rebuild credit is to demonstrate you can use it responsibly. It is difficult to open new accounts after a personal financial meltdown, but it is possible to get credit cards once again and use them to rebuild strong credit reports. Instructions 1 Save up at least...

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Credit Check Guide

Landlords, lenders and prospective employers sometimes run credit checks on applicants to get a better understanding of their desirability as a tenant, borrower or employee. Credit checks contain different types of information adding up to a picture of your ability to manage credit based on your payment history, debt volume and other factors. Misconceptions about how to access, improve or correct credit check information abounds, so reviewing credit...

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How to Raise a FICO Score 50 Points

Lenders use your FICO score to decide if you get a loan for a car or home or approved for a credit card. In some cases, the number can impact whether you will get a job. There are ways to raise your FICO score by 50 points or more, but the amount depends on how low your score was to begin with. A low score will increase faster than one in the medium range, but all scores will increase by following a few easy steps. Instructions Raising a FICO...

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How One Missed Payment Can Affect Your Credit Score

Your credit score affects how likely you are to qualify for loans and other forms of credit, and what interest rates are offered when you do get credit. Missing a payment can lower your credit score and make it more difficult to obtain credit in the future. Effects People who already have lower credit scores will not see as big of a hit from one late payment as those with higher scores. For example, someone with a credit score of 780 would lose about 90 to 110 points, but someone with a credit score of 680 would only lose about 60 to 80...

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Does Paying My Loans Before They're Due Hurt My Credit Score?

Ironically, even though having little debt is associated with good borrowing practices, paying off loans early can hurt your credit score. Also, in some cases, keeping a debt may allow you to earn money through higher-yielding investments. However, as long as you manage debt responsibly and still use credit, any negative effect of eliminating a debt is probably negligible. Identification Normally, paying your debts before they are due does not hurt your credit score. Paying early usually means that you do not default on your debt and damage...

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How Information Appears on Your Credit Report

It seems odd to know that when you meet with a bank, that encounter will go on a report with many other financial transactions. But lenders willingly share information because it protects the whole credit industry from people who don't pay their loans. With information provided regularly by creditors, credit agencies can almost instantly create a financial profile for most consumers. How it Gets There According to My Fico, a website produced by the Fair Isaac Co. that developed the matrix used for credit scores, lenders compile information...

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Who Can Request a Credit Report?

Credit reports consist of personal information such as addresses and date of birth as well as bill-paying history. Under the Fair Credit Reporting Act, both on-time payments to lenders like credit card companies and late payments can reflect on credit reports. In the United States, the three primary credit reporting agencies are Equifax, Experian and TransUnion; these businesses must comply with all federal laws regarding who can access a consumer's credit report. Potential Lenders When you apply for a credit card, auto loan, personal loan,...

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Easiest Way to Establish Credit

Without a strong credit history, doing many of the basic things in life, such as buying a cell phone, establishing insurance or getting a job, can be difficult. Your credit score plays an even larger role in your ability to purchase a car or home, and can have significant financial implications in the way of interest rates and down payments. Building a good credit score is important to your financial well being and future investments. The task must...

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How Frequently Credit Reports Are Updated

Your credit report is a dynamic document that is updated regularly by the credit bureaus. When you do something such as make a payment or open an account, this information eventually finds its way onto your report. How quickly this happens can vary from one case to the next. Creditor Reporting One of the the key factors to consider is how frequently your creditor reports to the credit bureaus. Credit bureaus typically update your credit report as soon as they receive information. However, they cannot do anything until they get the information...

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How to Unsubscribe From Free Credit Report

So-called "free" credit report providers have come under fire by the the Federal Trade Commission, specifically because the reports are usually not free. If you've signed up for the Free Credit Report.com service and do not want to be charged anymore, you'll need to unsubscribe. There is no cancellation fee; you can unsubscribe at any time. However, you will not receive a refund for prior money paid. Instructions 1 Gather the information relating...

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Does Unemployment Affect Credit Score?

A person's credit score is a calculation -- made using formulas developed by credit reporting agencies -- of an individual's creditworthiness. Credit scores have a number of uses. Although primarily used by lenders to determine if and at what rate to issue a borrower a loan, they may also be used by employers or landlords to make an estimate of an individual's reliability. Unemployment does not affect a person's credit score. Unemployment Benefits When a person loses his job, he may or may not be eligible for benefits issued by the government...

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