Fair Credit Reporting Act of 2004

The Fair Credit Reporting Act sets forth protections for consumers from malicious, negligent or unethical credit reporting. The act was passed into law in 1970 and has been amended over the years in reaction to developing consumer issues; as of February 2011, the Fair Credit Reporting Act was last updated in 2004. Credit card companies and other lenders make regular reports on their customers' accounts to credit rating agencies. Creditors use the...

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How Does Cashing Your IRA Affect Your Credit Score?

Cashing in your IRA has no direct impact on your credit score, because IRAs are not credit accounts, so they are not factored into the credit-scoring model. The Facts An Individual Retirement Account (IRA) is a tax-advantaged savings account used to finance retirement. A credit score looks only at how you have managed your debts, not your savings. Considerations Even though cashing out your IRA has no direct effect on your credit score, the way you spend the money you take out can affect it. Benefits Using the money...

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Instructions on Interpreting Equifax Credit Bureau Reports

The Federal Trade Commission recommends that you check your credit reports to make sure your credit accounts are reported accurately. The Equifax credit bureau report has several different sections containing your credit accounts, collections, inquiries and public records. If you have never looked at a credit report before, it may be confusing to try to interpret the information on it. Instructions 1 Open your Equifax paper credit report or go to Equifax's website to access your online credit report (see Resource). On the bottom left of...

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Does Canceled Debt Show on a Credit Report?

A credit report contains detailed information on a person's credit history, including current and past accounts, loans, bankruptcies and any late or past-due payments. Nationwide, there are three credit reporting agencies that maintain records: TransUnion, Equifax, and Experian. Each credit agency works independently updating credit profiles. The data they collect is often used by creditors, lenders, insurers, landlords and employers for purposes...

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Can Canceling a Bank Account Affect Your Credit Score?

A credit score is a number that shows lenders what your past performance using credit has been and how safe or risky a borrower you are. Though there are a variety of factors that influence a credit score, your banking accounts are not typically among them. Closing an account won't lower your credit score automatically, though it might do so if the account influences other credit score factors. Credit Score Factors A credit score represents your past history using credit. Potential creditors want to know if you're likely to repay your loans...

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Does Getting Declined Hurt Your Credit Score?

A rejection for credit may intuitively feel like it should hurt your credit rating, but it has no effect on it. However, a rejection probably means your credit history is ailing and you should take immediate action to resolve the problem. In some cases, factors other than your credit rating affect your ability to gain credit. Identification A rejection for credit does not hurt your credit score any more than an approval. If a lender pulls your credit history because you requested credit, the resulting inquiry damages your credit rating...

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How Does Foreclosure Affect Your Credit Rating?

Trying to keep your credit score up is one of the most important things you can do, as it affects your financial life in so many ways. Avoiding disasters like bankruptcy and foreclosure are critical, as they can have devastating effects on your credit rating. When it comes to going through foreclosure, your credit score will be hit and it will be hard to get another mortgage. Foreclosure Credit Score Damage When your lender forces you into foreclosure, it will have a large negative affect on your credit score almost immediately. The amount...

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How to Dispute Derogatory Remarks on a Credit Report

Your credit report is incredibly important in your life. Employers may use it to determine whether to hire you. Landlords may choose to offer you a place to live on the strength of it. And banks will use it to decide whether to offer you credit. So it's well worth keeping an eye on your report. If you see something that's derogatory or inaccurate, challenge it. Instructions 1 Order a free credit report. You have the right to see the full report...

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How to Report Claims to Equifax

The Fair Trade Commission advises consumers to dispute inaccurate or incomplete information found in their credit records. Under the provisions of the Fair Credit Reporting Act, any inaccuracies must be corrected by the credit bureau that is reporting the information. Equifax is one of the major credit bureaus in the United States. Equifax has a formal process for consumers to report claims of inaccuracy or incompleteness in their credit files....

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Tips That Will Help You to Choose Your First Credit Card

Financial advisers sometimes advise against credit cards because many individuals get caught up in a cycle of debt due to irresponsible management of their card accounts. However, a consumer may choose to open a first credit card as a way to establish a credit history. If you're trying to get your first credit card, keep a few tips in mind to ensure that you get the best deal possible. Use Online Services While you may receive attractive credit card offers in the mail, you can also use credit card websites, like CreditCardGuide and CreditorWeb,...

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What Impacts My FICO Score?

FICO credit scores (called such because the method for finding them was developed by Fair Isaac and Company) are the most widely used credit scores, which help lenders determine whether you'd be a credit risk. FICO credit scores help provide a fair, objective standard that doesn't consider things such as race, nationality and gender. As you build your credit history, you should be aware of the factors that affect your FICO credit score. Payment...

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Quick Ways to Fix Your Credit

Credit repair is not instantaneous. Your credit score updates regularly as the data on your Experian, TransUnion and Equifax credit reports changes, but MSN Money columnist Liz Pulliam Weston explains that it still takes at least 30 days for noticeable improvement. You can make a difference in a month by using specific credit-fixing methods. Dispute Credit Report Mistakes Your credit reports are likely to have disputable mistakes, since MSNBC writer Bob Sullivan reports that up to one-quarter of consumer credit files have negative errors....

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What Does Co-Signing for an Apartment Rental Do to My Credit?

Apartment complexes often require tenants to undergo a credit check before approving their rental applications. If a tenant does not meet the necessary credit requirements, he can still rent an apartment provided he has a co-signer with good credit. Give co-signing an apartment rental serious consideration before signing on the dotted line. If the tenant isnt responsible, acting as a co-signer on his housing application could place your good credit...

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How to Improve My Poor Credit Score

While it can take many months or years to develop a good credit score, you can damage it fairly easily. If your credit score is poor, you are going to have to put in time and effort to repair it. The Fair Isaac Corp., developers of the well-known FICO score, uses five categories to compute credit scores. To improve your rating, you must work on your payment history, the amount you owe, the length of your credit history, the types of credit you use...

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How to Check a Credit Reference

If you extend credit to an individual or business entity, you must check the credit history of the person or entity that you are lending to in order to reasonably insure yourself that you will be repaid. Furthermore, if you hire a person to work for you or rent property from you, you must perform a credit check in order to determine the reliability and integrity of the party via his credit history. Credit history can be obtained through credit bureaus...

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Can I Start Over With a New Credit Score?

Illegitimate credit repair companies often claim that a consumer can get a new credit profile or start over with a new credit score. Beware of these scams, the Federal Trade Commission warns. You can start over your credit history, but this takes many years. Adding new, positive information is a far quicker and legal way to get a new credit score. Misconception If you have terrible credit, you must rebuild your credit history not your credit score. Credit scores come from data in your credit file. You can have dozens of different scores,...

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How to Fix Your Credit After Filing Bankruptcy

Because a bankruptcy can destroy your credit rating, it's best to avoid a filing if possible. However, due to debt and other credit problems, bankruptcy sometimes can be the only alternative. You can expect a significant drop in your credit score following a filing. But the effects of a bankruptcy do not last forever. The bankruptcy will stay on your credit report for 10 years, but you still can improve a low score. Instructions 1 Continue...

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The Best Credit Report Repair Information

A credit report tells lenders about your creditworthiness when you need to borrow money. It is a record of your money borrowing and repayment transactions, which takes into account the amount of time you have had credit and delinquent payments. A good credit report can help you be eligible for higher lines of credit, lower interest rates and loans. While it takes time to repair a credit report, it is never too late to get the ball rolling. Knowing Your Credit Score Before you attempt to repair your credit report, you need to know what is...

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How to Build Your Credit Score If You Have No History

Having a good credit score is essential to be able to borrow money for large purchases, such as college, a car and a home. Building your credit score when you have no credit history can be difficult, however, because getting loans often depends on having some record of responsible spending. If you're unable to get a credit card or loan right away, there are some things you can do to help you establish a pattern of good spending habits that will build...

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Tips on Getting a Good Rent-to-Own Deal

Renting to own is a common decision for a person with some credit issues who is seeking a permanent place to live. A standard rental lease is a short-term arrangement that a landlord can terminate at any time, so having the option to buy offers a bit more security to the renter. While a rent-to-own deal is often most beneficial for a landlord, the renter can still take advantage of the opportunity by negotiating to get the best deal possible. Summary A rent-to-own (also called "lease-to-own") deal is a real estate transaction between a...

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Effects Debt Management Places Have on Your Credit Score

Some people may be concerned that the effects debt management companies have on your credit score could be just as bad as filing for bankruptcy. While using a debt management company may not be the best option, there are different ways that a debt management company will affect your credit score. These are both good and bad, so it is up to each individual to decide what is right for him and his personal credit score. Function The function...

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What Can You Do to Fix a Credit Score?

A strong credit score can mean the difference between getting a home or auto loan at a great rate and not getting a loan at all. Most often, a poor credit score means that loan options are still available, but at much higher rates of interest. The cost of higher interest over the life of a loan can add up to hundreds or thousands of dollars that would be saved by waiting until credit scores improve to apply for credit. Request Free Copies of your Credit Reports Log on to a site such as annualcreditreport.com and request credit reports from...

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How to Appeal an Unnamed Negative Report on Your Credit History

By law, consumers have the right to dispute or appeal negative items on their credit report. Consumers also have the right to know the details of their debt, including the company claiming the debt. This was all made possible due to amendments in the FCRA (Fair Credit Reporting Act). Learn to appeal inaccuracies and negative items on your credit report. Instructions 1 Pull your credit report from all three major credit reporting agencies:...

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How Far Back Do Credit Checks Go?

Credit checks are your ticket to everything from a new credit card account to a loan for furniture, a car or even a new house. The Federal Reserve Bank of San Francisco's website explains that the credit bureaus gather your financial data and compile reports for lenders. They cover your credit-related activities for several years to give a long-term picture of your credit worthiness. Reporting Time Lenders check your credit by reviewing your credit reports from the Experian, TransUnion and Equifax credit bureaus. Their review goes back...

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FICO Scorecard Characteristics

Whenever you apply for credit, your FICO score serves as the historical record and monitoring tool for the measurement of your credit worthiness and predictive credit behavior. The scoring system was established in 1956 by the Fair Isaac Corporation. The three major credit bureaus, Experian, Equifax and TransUnion, use this rating system which focuses upon repayment history, balances owed, credit history length, recent or new credit and types of...

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How to Fix Credit Problems With Personal Loans

Fixing your credit and raising your score requires developing better credit habits. Although it's not easy to obtain personal loans with credit problems, acquiring a loan and paying off the balance will increase your credit score and put you on the path towards good credit. If looking for a way to improve your credit, consider applying for a small loan with your bank or credit union. Instructions 1 Use a co-signer. You probably will not be...

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Does a Car Loan Raise a Credit Score?

Car loans and other credit accounts are part of your financial history. They get added to your credit reports by TransUnion, Equifax and Experian. These three credit bureaus provide the information to lenders who evaluate your future applications, and it is also used to calculate your credit score. Vehicle loans can raise the score if you handle them appropriately. Definition Your credit score is a three-digit number calculated by FICO, which is the original scoring firm, and the credit bureaus. The score is based on many factors. FICO...

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How Can I Go About Establishing Credit?

When you want to borrow money, you have to have an acceptable credit score in the eyes of the lender. Before you can get a decent credit score, you have to start the process of establishing your credit history. When you start out your adult life, you most likely have no credit history, and the proper steps must be taken to get the process started. Open Bank Accounts One of the easiest steps that you can take is to open bank accounts in your name. You should consider opening both a checking account and a savings account with a local bank....

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How to Contact Equifax Credit Reporting

There are two main reasons why you might want to contact the Equifax credit reporting bureau. You may suspect that someone is committing fraud and opening accounts in your name, or you may simply want to monitor your credit report. There is an appropriate way to contact with Equifax for each of these purposes. Using the right contact information will help your issue get resolved more quickly. Instructions Credit Monitoring 1 Visit the official website that provides free annual copies of your credit report (see Resources). It will allow you...

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When Do New Inquiries Post to My Credit Report?

When you apply for a loan, the creditor requests a copy of your credit report. This action, known as an inquiry, can negatively affect your credit score depending on how and with whom you shop for a loan. What Makes Up Your Credit Score Your credit score is a number between 300 and 850 that credit report agencies calculate based on various aspects of your financial history, primarily your tendency to make timely payments. The agencies account for the types of credit you have, how much of it is new, how much money you owe creditors and how...

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What Is Consumer Credit?

Consumer credit is prevalent throughout today's economy, and consumers regularly use consumer credit as part of their daily purchasing habits. But what exactly is consumer credit, and what are its advantages and disadvantages for the consumer? Consumer Credit Definition Consumer credit is loosely defined as goods, services, privileges or money given to an individual instead of direct payment. Typically consumer credit is extended to an individual with additional interest owed beyond the borrowed or deferred payment amount. Consumer...

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Companies That Provide Free Credit Report Information

The Fair Credit Reporting Act allows consumers to access their credit reports from the three nationwide reporting agencies for free once a year, according to the Federal Trade Commission. Beware of competing companies claiming to offer free credit reports -- they often force consumers into buying services or paying fees for the reports. Order your report from each of the three agencies or through the AnnualCreditReport.com website, which is endorsed by the FTC to give you the three free reports. Experian Experian is one of the three credit-reporting...

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How Fast Can You Fix Your Credit?

Your credit rating is dynamic, changing as you use your credit cards, get loans and make or neglect payments on your accounts. Your rating gets bad rapidly if you spend too much of your credit limit or stop paying your bills responsibly. It takes longer to repair damage because creditors want to see lengthy good records, but positive actions are quickly reflected on your credit reports. You can often make significant progress within a month. Revolving Account Balances High revolving account balances give you a quick fix opportunity because...

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How to Dispute a Negative Item in a Credit Report Letter

Credit reporting agencies (CRAs) such as Transunion, Experian and Equifax must strive to provide the most accurate information on their credit reports. When you find a problem with a negative account, you can dispute the information with the CRAs. Each credit reporting agency has an online dispute system that allows you to submit disputes. Once a dispute is submitted, the CRAs contact the creditor or collection agency responsible for the account...

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The Best Way to Help Clean Credit

Bad credit can keep you from owning a house, car or sending your children to college. There is good news: You don't have to have it forever. "Cleaning" your credit report is the process of improving your credit report by taking certain actions. One of the best ways to help clean your credit is to have bad accounts or notations removed from your credit report. These accounts include charge offs, collections and, to a lesser degree, late payments. File an Online Dispute If you have recently received your credit report, you have the option...

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