How Do Credit Bureaus Form New Profiles?

There are credit profiles maintained for businesses as well as individuals. When you apply for credit with a bank or lender, a credit profile begins to form with the credit bureau used to inquire about your credit. A credit profile includes your personal identifying information, employment information, credit information, inquiries and public record information, according to the website Mortgage 101. Identification To form a new credit profile you must apply with a lender, or someone has to pull your credit report. If you previously had...

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How to Lease With Poor Credit

Your ability to lease with poor credit may largely be determined by the type of product you're trying to lease. For example, leasing an apartment or a home with poor credit may be easier than leasing a new automobile, Landlords know they can evict you for not paying rent, but an automobile leasing company might have a tougher time getting your leased car back if you stop making payments. Instructions 1 Review your credit reports. It's important...

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What Does Insufficient Trade Lines on a Credit Report Mean?

Insufficient trade lines is one of the reasons a creditor may deny your request for credit. If a creditor thinks your credit history is lacking, they will not approve you. Identification A trade line consists of the information regarding your credit account. It will include such information as the balance owed, date of last payment, credit limit, credit rating, type of account and the name of the creditor. When you owe a creditor they send trade lines to the credit reporting agency containing all of your account information. Significance...

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Do Paid Medical Collections Affect Your Credit?

Your credit reports are full of data about paid and unpaid accounts. Creditors charge off unpaid bills and sell them to debt collectors, who add harmful notations on your credit reports. Medical bills that go to collections stay on TransUnion, Equifax and Experian credit bureau reports for many years, even if you eventually pay them off, unless you negotiate removal. Those accounts affect your credit as long as they are visible to other creditors. Effect Your credit score is based on credit bureau information. Medical collections count...

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Do Bad Checks Show Up on a Credit Report?

On a positive note, a bad check probably won't show up on your credit report, but can become a far more serious problem -- maybe even resulting in criminal charges. Whether or not a check shows up on your credit report might be immaterial, because it definitely affects your ability to open a bank account. Bank accounts are often needed to start a credit account. Identification The credit reporting agencies do not track banking data, such as writing bad checks, according to Martha White of Wallet Pop in "Six Money Mistakes That Won't Hurt...

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How to Repair Your Credit in a Short Time

A credit score can help or hurt you when you apply for loans or a job. Cleaning up your credit is an excellent way to help raise your credit score. This can be done quickly with a few easy steps. Also, some long-range planning can help raise your score in the long run. It takes 45 to 60 days to see any results from changes made on a credit report. Instructions 1 Get credit reports from all three major credit bureaus (Experian, Equifax and TransUnion) for both you and your spouse. Check all line items to see if there are any errors. Report...

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Ways to Build Credit History

The length of your credit history impacts your credit score and, in turn, your ability to get approval for low-interest loans and credit cards. This makes building a credit history early a crucial part of your future financial stability. Unfortunately, lenders and creditors are often hesitant to grant credit to individuals with no previous credit history. There are ways, however, for you to build credit even if you lack any current credit information. Authorized User Account A friend or family member with a credit card in good standing...

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How to Read Your Credit Report Rating

The information contained in your credit report is critical because it establishes your creditworthiness to potential lenders. You should periodically review it for accuracy -- but that may be easier said than done considering the volume of information reported, not to mention that it can be a confusing array of codes and numbers that may be presented and formatted differently, depending on the reporting agency. Instructions Preparation 1 Review the format. All credit reporting agencies uniformly present some information. For example, personal...

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Can a Landlord Put a Nonpayment of Rent on Your Credit Report?

Consumers may be relieved to know that landlords usually cannot report rental payment history to a credit bureau, but unpaid rent can still appear on a credit history. A common way for landlords to collect rent and have the debt appear on your credit history is to sell it to a collection agency or sue you. Some credit agencies may find out about nonpayment of rent via a third party. Identification Landlords often turn over unpaid rent balances to debt collectors because they may not have the time or resources to pursue the debt in court....

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How to Erase Negative Credit

Erase negative credit information on your credit reports by contesting the accuracy of the information through a disputes process. Federal law gives you the right to challenge anything on your reports, and it is up to the credit bureaus to confirm the accuracy of the information. By law, the bureaus must correct any negative information or remove information that cannot be confirmed. Instructions 1 Obtain your credit reports for free from...

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What Are the Causes of a Low Credit Score?

Your credit score is a mathematical algorithm that takes certain factors into account when measuring risk. Knowing how your financial history accounts for this score can help you avoid the consequences of poor, often irreversible, credit. Payment History (35 Percent) Payment history is how you pay your bills. And not just credit cards, but mortgages and loans as well. Late payments, not paying at all, or having an account sent to third-party debt collectors are reported to the credit bureaus and drive your score down fast. Credit Utilization...

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Credit Score Improvement Tricks

To improve you credit score, you need to understand how it is calculated. The most commonly used credit score, the FICO score, is calculated using an algorithm designed by the Fair Isaac Corporation. The score takes into consideration your payment history, length of credit, amount you owe, how much credit you have recently applied for and the types of credit you use. Having a good credit score can help you get loans at lower interest rates, saving you thousands. Check Your Credit History The Federal Reserve's first tip for improving your...

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How to Protest Items on Credit Report

Items on your credit report can stick around and cause problems for many years. If information on your credit report is inaccurate, you can file a protest and have it removed. According to the U.S. Fair Credit Reporting Act, any false or inaccurate information must be corrected or removed within 30 days. If a creditor does not respond to the challenge within that time frame, it is removed as well. Instructions 1 Obtain a current copy of your...

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Credit Score Improvement Guide

Credit scores are a numerical assessment of a person's creditworthiness. The scores are produced by three major credit agencies: Experian, Equifax and TransUnion. All three work from a basic system known as FICO, but interpret this in a different way and use different data, meaning each individual can have three different credit scores. Check Accuracy Under the Fair Credit Reporting Act, consumers have the right to get a free copy of their credit reports from the three major agencies once a year. Consumers also have the right to discover...

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Does Transferring Balances Affect Credit Scores?

Transferring balances from one credit card to another can help save money on interest, especially if you take advantage of 0 percent interest offers on new credit cards. Because the process of transferring balances sometimes involves new credit cards and does change your credit utilization on each card, it can affect your credit score. Credit Utilization The main way in which balance transfers affect your credit score is through credit utilization. Your utilization ratio is the balance on each card divided by that card's limit. The lower...

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Can I Get a Bankruptcy Removed From My Credit Report?

The credit reporting bureaus list a bankruptcy on your credit file for 10 years, so it might be tempting to try to remove it before then. It is possible to remove a bankruptcy from your credit file, but only if the agencies list it in error. Some credit repair companies claim they can remove a bankruptcy, but they sometimes use illegal methods. Identification Once the bankruptcy has been on your credit report for 10 years, the credit bureaus automatically delete it from your file. If it is still listed after that period, you should file...

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How to Access an Annual Credit Report

Checking your credit report at least once a year is one of the best ways to protect your credit rating and identity. Creditors occasionally make mistakes, and if they mistakenly report negative information on your profile, this can stop you from getting new lines of credit. Annual Credit Report provides each consumer one free report a year, and there are three ways to access your free report. Instructions 1 Get a free report online. Go to the official website for Annual Credit Report and submit your personal information to gain immediate...

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Can Having Multiple Addreses Affect Your Credit Score?

Along with payment information, creditors also report your address to the credit bureaus. A history of your addresses appears on your credit report. If your report contains multiple addresses, it's important to understand how this information affects your credit score. Identification Your credit score is a three-digit numeral. An algorithm calculates the score based upon the information contained within your credit report. Considerations...

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Fair Credit Reporting Act Disclosure

An FCRA disclosure is a document signed by a job applicant giving a potential employer permission to access her record with one or more credit agencies. Employers cannot access such records without such a disclosure, but can normally require such a disclosure as part of the application process. If the employer decides not to give the applicant the job as a direct result of the contents of the record, the employee must be given a copy of the record. FCRA The Fair Credit Reporting Act is the main legislation in the US governing the activities...

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How to Repair a Credit Record

Outstanding debts, bankruptcy and late payments have a huge impact on your credit history. A good credit record takes the hassle out of applying for loans. People with good credit can usually walk into a lender's office and easily qualify for a loan. But if you have a negative credit report, your finance options are limited and you may get stuck with a bad loan. Instructions 1 Figure out what needs repairing. Knowing where your credit stands is key to repairing a damaged credit record. Pull your credit report from Annual Credit Report.com...

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Is 808 a Good Credit Score?

Most people have a general idea of what a credit score is, but they don't specifically know what the number means. They don't know the range or what constitutes a "good" or "excellent" credit score. They might not even realize the advantages that a high score can get them or the ways in which a low score can impair their ability to get credit. If you know the ranges and what they mean, you'll know whether 808, or any other number, is a good credit...

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The Effect of Paid on a Credit Score

Collection accounts, which are unpaid bills that creditors referr to third-party recovery or collection agencies, have significant affects on your credit profile. These items stay on your credit report for seven years, damaging your chances of getting credit cards or loans. In addition, collection accounts reduce your credit score -- the three-digit number firms use when deciding whether to approve you for credit. You should consider this score when paying off collection accounts. Background When you pay off a collection account, it does...

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What Is the Average Unemployment Compensation in the State of Pennsylvania?

In the state of Pennsylvania, the Department of Labor and Industry administers the Pennsylvania Unemployment Compensation Law. Eligible claimants can receive unemployment regular unemployment benefits for up to 26 weeks. For new claims filed after January 2, 2011, the minimum weekly benefit allowance in Pennsylvania is $35 per week. The maximum benefit allowance is $573 weekly for claims filed after January 2, 2011. Monetary Eligibility Pennsylvania uses a base year of employment to calculate monetary eligibility. You must have earned a...

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How Does Repossession Affect Your Credit?

Missing as few as two payments in a row could give a lender the legal right to take back property -- called repossession -- and probably severely damage your credit rating in the process. The importance of a repossession in determining your credit ratings diminishes over time, and you can get some of those points back by focusing on handling your other loans responsibly. Impact Negative items on your report that show a complete inability to pay, such as foreclosure and repossession, but fall short of bankruptcy lower your credit score by...

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Tips for Improving Your Credit Score

Whether you are just starting to establish credit or trying to recover from financial problems, improving your credit score is a worthwhile endeavor. The good news is that there is no magic involved. Credit scores measure your risk as a borrower, and if you reduce that risk your credit score will improve. If you have the self-discipline to manage your financial affairs responsibly, all you need is planning, knowledge of how credit ratings work and patience. Short-Term Improvements The first step to improving your credit score is to know...

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Good Credit Rating Tips

One way to maintain a good credit rating is to follow the free advice provided online by major credit-reporting agencies such as Equifax, Experian and TransUnion. These companies maintain credit histories on millions of consumers. Therefore, when a creditor checks your credit rating, the information will likely come from one or all of these agencies. Bill Payments According to Experian's website, making bill payments on time is the single...

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Does Paying a Settlement on a Collection Affect My Credit Score?

Any time an account enters collections or is listed as in collections, your credit score will be impacted. The actual numeric amount of that impact will vary based on the age, type and status of the collections account. While a settled account may impact your score less than one that is in active collections, it is still considered a negative and will potentially damage your score. Having any type of collections accounts on your report may negatively...

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Is a FICO Score the Same As a Credit Rating?

Many companies use credit reports to evaluate an individual's creditworthiness. The Fair Isaac Corporation score constitutes an imporatant component of the credit score. The FICO score serves as the credit rating. Function The FICO credit rating is a comprehensive score designed to measure someone's likelihood of repaying a loan. A higher FICO score indicates a better credit rating, while a lower FICO score implies a higher credit risk. Time Frame The FICO score takes into account an individual's credit activity over several years...

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Does an Unpaid Dentist Bill Affect Your FICO Score?

In 2010, a Salt Lake City, Utah, resident lost her home due to a 15-year-old unpaid dental bill worth $68. If you have an outstanding dental bill, you will probably not lose your home, but instead destroy your credit rating. Like any other debt, unpaid dental bills can go on a credit report if left ignored. Identification An unpaid dentist bill can affect your FICO score if the provider reports it to the credit bureaus or sends it to a collections...

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How to Correct Credit Report Problems

Credit report problems are often the result of irresponsible financial behavior such as paying bills late, spending more than you earn and writing checks without sufficient funds to cover them. In such cases, the only way to correct the situation is to change your financial behavior. Sometimes, however, problems crop up on your credit report through identity theft or because creditors and financial institutions report incorrect information. You have...

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What Is an Acceptable Credit Score?

An individual's credit score is based on his history of managing credit and paying debt. Credit scores range from 300 to 850, with higher scores indicating the borrower is less of a credit risk. Ranges According to Bankrate, credit scores of at least 660 are considered acceptable by most mortgage brokers. People with scores of 620 to 660 may still get offers of credit, but lenders are wary of the increased credit risk. Significance Having an acceptable credit score is crucial for getting new credit. People whose credit scores are...

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What Is the Downfall of Bankruptcy?

The decision to file bankruptcy protection is a serious one, and the fallout is often major. A bankruptcy can wipe out all your debts. While this may seem like a practical solution to high debts, it's smart to file bankruptcy as a last resort due to the consequences that follow. Loss of Possessions Prior to deciding to eliminate your outstanding balances, a bankruptcy judge will likely review your debts and personal assets to see if there's a way for you to pay your balances, or at least a percentage of them. If you own several real estate...

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How to Understand a Credit Report Score

When you apply for credit or a loan, the first thing the lender looks at is your credit score. Some employers even look at job applicant's credit scores. Having good credit improves your chances of getting a loan and makes you eligible for higher credit limits and lower interest rates. You are entitled to a free credit report once a year from three major credit reporting agencies: Experian (www.experian.com), Transunion (www.transunion.com), and Equifax (www.equifax.com), which will give you your credit score. What does that number on your credit...

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Does Buying a Car and Paying in Cash Fully Increase a Credit Score?

It may seem like somebody who can pay for a car with cash is good at managing money and should have a high credit score. However, cash payments do not affect a person's credit score. Credit Report Lenders report loan amounts, credit lines and payment history information to credit scoring bureaus. This information on an individual's credit report can be used to compute a credit score, which estimates how much of a risk it is to lend to that...

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Credit Report Questions and Information

Many people do not understand the importance of their credit report and how much it impacts their financial life. Everything from financing a car to renting an apartment requires some kind of credit check. Fortunately, basic questions regarding your credit report have straightforward answers that can help you improve your score. How Often Can I Get My Free Credit Report? You are entitled to a copy of your credit report from each reporting...

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What Credit Score Is Needed to Get a Home Loan?

Mortgage lenders set their own individual standards for approving home loans, but generally you will need a credit score of at least 500 to be approved for a loan. Types Loans insured by the Federal Housing Administration are a favorite of borrowers with low credit scores. The FHA insures the loan, removing much of the risk for lenders. The Washington Post reported in 2010 that the FHA was insuring loans with credit scores as low as 500....

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Does Opening a Checking Account Hurt Your Credit?

Opening new credit card accounts or other lines of credit can hurt your credit score, but checking accounts do not affect your score---negatively or positively---unless you misuse the account. FICO Score According to Askmrcreditcard.com, your FICO score---the credit scoring model used by nearly all lenders---does not factor in how many bank accounts you own or their status. Hard Pulls vs. Soft Pulls Depending on the particular institution...

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Free Ways to Increase Your Credit Score

Your credit score is the primary tool used by lenders to determine whether to extend credit. Understand the factors that combine to determine your credit score and you can learn free ways to increase your score. You are entitled to at least one free credit report each year or more often if you have been denied employment or credit based on the report. Pay Bills On Time Pay your bills on time to increase your credit score. Your history of payments accounts for 35 percent of your overall credit score. The recent history is more important...

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How to Overcome a Negative Credit Report for Employment

Employers rely on more than just an interview when considering a new hire. Additional methods of gauging an employee's background include calling references and checking credit reports. If you have a negative credit report, you may need to take extra steps to explain your financial background so your report doesn't cost you the position for which you are vying. Instructions 1 Inquire as to whether a credit report is used in consideration for the job and for what purpose. The employer needs your written permission to conduct a credit check,...

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What Does a Good Credit Score Get You?

Your credit score is a three-digit number determined by a complicated formula developed by Fair Isaac Corp. The three major credit reporting agencies, TransUnion, Equifax and Experian, use their own criteria for determining your FICO score, so it's important to check your score with each agency. FICO scores range from 300 on the low end to a maximum of 850. Identification Your credit score is determined by a variety of factors, including...

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Options for Getting a Repo off a Credit Report

Any type of repossession can take more than 100 points off of a FICO credit rating, but everyone gets a clean slate eventually, according to Les Christie of CNN. It is possible to expedite the process of removing a repossession, but this is not an option for everyone. Also, removing a repossession from a credit report may only work as a temporary fix to long-term financial management problems. Wait It Out You can wait until the credit bureaus can no longer list the account. The Fair Credit Reporting Act (FCRA) allows the credit reporting...

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