The Easiest Way to Rebuild Credit

Rebuilding credit doesn't have to be a difficult task. In fact, many consumers have quickly and easily fixed their low credit rating by adjusting their credit habits. Minor changes in the way you deal with your credit history can add points to your FICO score. You can't immediately fix a bad history, but each month you'll notice a slight increase in your credit score. Before you know it, you'll have a higher score and you'll qualify for the best...

Read More

How Do I Improve My FICO Score?

Improving your FICO score can save you a lot of money over the course of time. When your score is high, your lenders will likely offer you favorable interest rates and loan terms. When your score is low, you may need to put up collateral to receive credit and your interest rates will be high. Make good financial choices when it comes to credit and you will see your FICO score improve. Instructions 1 Discipline yourself to pay bills on time. Not only will you avoid late fees, but also your FICO score will improve. At least 35 percent of your...

Read More

How to Fix My Credit Report If it Is Showing an Incorrect Name?

Your credit report has information about credit accounts you have opened and closed, loans you have taken out, and information available if you have been sued or filed for bankruptcy. If you find something wrong on your report, such as an incorrect name, contact the credit reporting company and ask for a correction. Instructions 1 Make a copy of your credit report and highlight or mark the error. 2 Write a letter to the credit reporting company that issued the errant report. Tell the company that your report is showing an incorrect...

Read More

How Is a Private Student Loan Reported on a Cosigner's Credit?

The number of private student loans grows by 25 percent per year, compared to just 8 percent for federal student loans, and should surpass federal loan volume by 2025, according to the FinAid website. Getting a private student loan likely means needing a cosigner, unless you have a good credit score or can tackle a high interest rate. If you get a cosigner, both of you will have the account on your credit report. Identification The credit...

Read More

Do Closed Accounts Affect a Credit Score?

Myths abound about the effect of closing unused credit card accounts on your credit score. The truth is that the effect of closed accounts on your credit score often depends on your credit history. Significance It's essential to understand the significance of accounts to your credit score. While it would seem that having more credit available is a liability, MSN Money's Liz Pulliam Weston states, "the credit score looks at the difference between your available credit and what you're using... Shut down accounts, and your total available...

Read More

How Can Biweekly Payments Help With a Mortgage?

After establishing a new mortgage, a borrower has a number of choices to make regarding payment methods. He can pay online, in person or through the mail. One other option a borrower may have is to make biweekly payments. A borrower should explore how biweekly payments can help with a mortgage to decide if this arrangement works for him. What Are Biweekly Payments? A normal mortgage arrangement requires the borrower to pay once per month. But with a biweekly arrangement, the borrower pays twice per month instead. He must divide the monthly...

Read More

Help to Improve Credit Scores

Loss of employment, unexpected medical expenses and economic downturns can all have an effect on your credit rating. The effects of a low credit score can include higher interest rates on loans and other types of credit, an increase in cost for some types of insurance, problems renting a home or issues obtaining a job. Help to improve your credit score can come from many sources, including the federal government and various private resources. ...

Read More

Can You Sue Someone for Pulling Your Credit History?

Your credit history contains evidence of all your debts, your payment history and your identifying information. As such, it is a sensitive and highly personal document. It is your federal right to only allow your credit reports to be viewed with your express consent. When your credit report is pulled without that consent, this is a violation of your privacy and you have legal options at your disposal to help you remedy the situation. Types ...

Read More

Can a Debt Collector Make Inquiries on Your Credit?

The Fair Credit Reporting Act regulates the information contained in your credit report. You also have control over who makes inquiries into the report if your state allows you to freeze the file. If your file is frozen, debt collectors may not be able to make inquiries on your credit. If your file is not frozen, debt collectors may access the information. Accessibility Credit reporting agencies, such as Equifax, Experian and TransUnion, may only supply a consumer's credit file information to companies having a legitimate reason. Debt collectors...

Read More

Quick Ways to Build Credit Scores When You Have No Credit

According to myFICO, a Fair Isaac Corporation (FICO) score is almost entirely based upon payment history, outstanding debt and length of credit history. Young people just entering the workforce typically have no credit history and therefore cannot be scored by a lender. Borrowers should start building their credit history by taking out small lines of credit or secured loans, charging purchases every month and making sure they make their payments on time. Consumers with a thin credit history should ask for credit line increases every six months...

Read More

Does Paying Back Past Due Amounts Improve a Credit Score?

Past-due amounts on bills lower your credit score significantly, since the MyFICO scoring company advises that 35 percent of your score comes from your payment history. You cannot wipe out past-due records simply by catching up your bills, but eliminating delinquencies improves your score if you continue to make on-time payments. Benefits MyFICO cites catching up your past-due accounts as one of the most important ways to help your credit score. You rack up a long string of delinquencies when you carry a past-due balance on credit cards...

Read More

Help With Auto Insurance

Auto insurance is a policy that you may have to maintain for the duration of vehicle ownership. If you're new to driving and owning a car, take a moment to learn a few basics of auto insurance. Seek help to ensure that you meet your state's minimum auto insurance requirements. Understand the Purpose A driver on the road without auto insurance poses a major risk to other drivers, passengers, pedestrians and even the infrastructure of public roads. If that person is in a crash that damages property or harms individuals and cannot pay for...

Read More

How Does Closing a Credit Card Account Affect Credit Score?

Credit scores dictate the ability of a borrower to repay a debt. The higher the score, the better the risk for the lender. Closing a credit card will lower your credit score. Significance Closing a credit card affects your credit score because it lowers your overall available credit. It also lowers your score due to the shortening the length of your overall account history. Time Frame The impact on your score happens within 60 days...

Read More

Authorization to Release Credit Information

Information found on your credit report influences your credit options, insurance rates and even employment. Under the Fair Credit Reporting Act (FCRA), your credit report may be pulled only for permissible purposes and you have the right to dispute inaccurate information. Permissible Use According to the FCRA, a credit-reporting agency may release your credit report to creditors, employers, insurance companies, government licensing agencies,...

Read More

How do I Remove Charge Backs Off of a Credit Report?

Removing chargebacks off a credit report is a crucial part of credit repair. A chargeback does not need to show up in your credit history because these charges are disagreements between you and store vendors for unfair purchases. When you know a purchase is erroneous, ask your card company to charge these funds back to the actual store, and you won't have to pay these costs. Unfortunately, this type of data tends to appear as a bill that is past...

Read More

How Is Credit Score Measured?

Your credit score is a three-digit number that creditors and lenders use to determine your creditworthiness. Credit scores are based on information within your credit report -- a document maintained by credit bureaus detailing your credit and loans accounts and your unpaid bills. Five key pieces of information are used to measure your credit score: payment history, amount of debt, length of credit history, types of credit and new credit accounts....

Read More

Does It Help Your Credit to Pay Off Charged-Off Accounts?

Charged-off accounts are bills that are written off by a lender as noncollectable. The lender gets a tax write-off for its charge-offs, but the process does not absolve your responsibility for repayment. Debt collectors can still pursue you, and charge-offs and collection accounts get added to your credit bureau records. Paying off charge-offs only helps your credit if you negotiate their removal from your Experian, Equifax and TransUnion credit reports. Definition A charge-off is a lender action that usually happens if you refuse to make...

Read More

Why Did My FICA Score Go Down Although I Pay Everything Early?

You've tried to use credit responsibly and paid all your bills early or at least on time. Yet your FICO credit score has done down. There are several things that can cause this to happen. It helps to know how the FICO scoring system works so you can identify possible problems early and take corrective action. Structure A FICO score is a three-digit number ranging from 300 to 850 that summarizes the risk you present if a lender extends you credit. When one of the three major credit bureaus (Equifax, Experian, TransUnion) calculates your...

Read More

Does a FICO Check Provided by a Bank Affect My Credit History?

Smart borrowers know that some credit checks affect their credit score by a few points and can become a huge problem. If your bank provided you with a FICO score and credit check, there is a good chance this hurts your credit history. The circumstances surrounding the credit check and why it was pulled determine its true effect. Did You Apply for Credit? Only applications for a loan or a creditable service, such as rent or utilities, result in a hard inquiry. The lender may have shown you your FICO scoring during the application process...

Read More

What Is a Great Credit Score From Experian or TransUnion?

Credit scores compile information from a consumer's credit history into a numerical representation of a borrower's creditworthiness. Many different credit scoring models exist, but lenders rely on the Fair Isaac Corporation, or FICO, score more than any other. The FICO score represents the likelihood a borrower will default on a loan or credit obligation in the future. Both Experian and TransUnion compile credit information from consumers and calculate...

Read More

Are Pre-approved Credit Card Offers Bad for Your Credit?

Pre-approved credit card offers bring new accounts right to your mailbox. Banks pre-screen your demographic and financial information through the credit bureaus and send you credit card invitations that include tailored offers like low promotional interest rates or balance transfer offers. Such offers do not affect your credit score directly, but they can lead to several types of indirect harm. Inquirires Pre-approved credit card offers result from soft inquiries by credit card issuers. A soft inquiry is a credit check for marketing purposes...

Read More

Do Leases Come Up on My Credit?

Whether a lease appears on your credit report depends on what type of lease it is. In general, building leases do not appear on your credit, but vehicle leases do. Manage your auto lease carefully to make sure you help your credit instead of hurting it. Non-Auto Leases Apartment and house leases generally do not appear on your credit report because the landlord is not extending you credit, but just collecting rent on a month-to-month basis. The one circumstance in which a lease might affect your credit is if you move out and stop paying...

Read More

Boost a Credit Report Fast

Your credit reports are more important than ever. Mortgage lenders look at them when deciding whether to lend you money. They also use your credit score to determine the interest rates you pay on that money. Lenders study your credit reports before giving you a car loan or business loan. Even car insurers look at your credit score. Fortunately, there are steps you can take to provide a quick boost to your credit reports. Correct Any Errors The fastest way to boost your credit score is to correct any errors that appear on your credit reports....

Read More

Does a Debt Settlement Program Hurt Your Credit?

Debt settlement arrangements are often the final stage of getting your financial debts handled before bankruptcy. If lenders believe that you are close to bankruptcy or that they will not otherwise continue to receive any payments from you on the debt, they may be willing to take a lump sum of cash in order to settle the debt and write the off the rest of the debt. Before entering into an arrangement, you need to know how it will affect your credit rating. Basics of Debt Settlement Plans Every debt settlement plan is different and lenders...

Read More

Good Credit Scores for a Car

Interest rates fluctuate, so the rate you're offered on a car loan can change from week to week. However, your credit score is an indication of whether lenders will give you their best loan rates at any given time. People with the highest credit scores usually get the lowest interest rates on car loans, which saves them significant amounts of money over the life of the loan. Prime Borrowers According to Edmunds, data from the Experian credit-reporting...

Read More

How to Build a Great Credit Score

A good credit history opens doors to access to capital from a variety of sources. Credit scores are three-digit numbers, which range from 300 to 850, with 850 being a perfect credit score. Achieve a great credit score by seeking opportunities to make a significant impact with the accounts on your credit report. According to FICO, payment history, amount owed to creditors, length of credit history and applications for new credit are the biggest factors...

Read More

How to Make Your Credit Score Higher

When you apply for a loan or line of credit, one of the first things the lender looks at is your credit score. This three-digit number encapsulates your history with managing credit. The higher your credit score, the more likely your application is to be approved and the lower your interest rate will be. A lower interest rate can save you hundreds, or even thousands, of dollars in the future. When you are getting ready to apply for credit, use a few strategies to increase your credit score. Instructions 1 Obtain a free copy of your credit...

Read More

How to Rebuild Credit With Retail Credit Cards

Having poor credit can affect you in multiple areas of your life. You may be unable to finance a vehicle or home, be charged higher insurance premiums and interest rates and be unable to secure certain jobs. Rebuilding credit can take many months and even years, but the process needs to begin somewhere. It will require time, dedication and focus on your part. Retail credit cards are useful in the credit-rebuilding process. Handling retail or store...

Read More

How to Dispute Inquries on My Credit Report

Your credit report is the basis for financial decisions lenders and creditors make on your behalf based on information contained within. Credit reports need to be reviewed on a regular basis to check for errors and inaccurate information. You have the right to dispute or question anything on your credit report that you believe to be listed in error. Disputing inquiries made to your credit report is a way to keep tabs on who has been reviewing your...

Read More

Does a Car Loan Inquiry Hurt My Credit Score?

After a potential lender pulls your credit report to check your score, the lending company shows up on your report as an inquiry. Inquiries generated in response to your application for credit do hurt your credit score after a short waiting period, but in most cases, the impact is minimal. Credit Score Impact A car loan inquiry will reduce most people's credit scores by five points or less, according to FICO, the company that developed the most commonly used credit scoring model. The exception is someone who has a short credit history or...

Read More

What to Do With a Bad Credit History

Carrying around a bad credit history is a heavy load. It can have immediate and serious consequences on your personal financial life, making it hard or impossible to qualify for house or car loans, and can even cause an employer to decide not to hire you. Despite radio and television advertisements to the contrary, there is no quick-and-easy fix to a bad credit history. The passage of time is the surest bet, though there are some proactive steps...

Read More

What Will Happen to My Credit if One Mortgage Payment is Missed?

Missing a mortgage payment can be detrimental to your credit score. Missing more than three mortgage payments can result in foreclosure proceedings. Also, your lender may demand the total due, including the missed payment and the current payment, be paid all at once. Time Frame A missed mortgage payment occurs when a payment is more than 30 days late. If possible, try to make a payment before it becomes 30 days past the due date in order...

Read More

Laws About Credit Reporting

Your credit report contains a vast amount of personal information.The Fair Credit Reporting Act (FCRA) regulates which companies may access your information, what information may be put in your credit report and what your rights are in regards to protecting that information. Information in Your Credit Report Your credit report contains your credit history for the past seven years, longer, if you have filed for bankruptcy. Companies that extended you credit report this information, along with your payment history, to the three credit bureaus:...

Read More

What Type of Credit Builds Your Credit Score the Fastest?

Once your credit and score have plummeted, it takes consistent work and effort to rebuild good credit. Considering credit scores are used for so many things, including many job applications, utilizing methods to improve your credit rapidly are essential. Decrease Your Debt Amount The quickest way to boost your credit is to decrease the amount of money you owe to lenders. This includes mortgages, car loans and especially credit card debt....

Read More

The Long-Term Effects of Bad Credit

Having bad credit puts you at a disadvantage in many areas related to borrowing and spending money. Your bad credit might be the result of a bankruptcy, foreclosure, expensive medical bills, a divorce or credit card overspending. Regardless of the cause, your bad credit will follow you for nearly a decade, or longer if you don't change your ways. Difficulty Borrowing Money Traditional lenders, such as banks, credit unions, car dealerships and credit card companies, always check your credit score prior to lending any money or issuing credit....

Read More

How Can College Students Build Credit?

Carrying a credit card debt while still in school can be risky, but college can also be a good time to begin building your credit, in preparation for living on your own after graduation. New federal laws have made it more difficult for college students to take out standard credit cards, but there are other ways for college students to begin building credit. Some of these are safer than traditional credit cards. Credit Card Having a credit...

Read More