Credit Scores & Employment

Your credit score is an important number. Mortgage lenders rely on this three-digit number to determine if they'll give you a home loan and at what interest rate. Auto insurers use the number to help determine your car insurance rates. Credit card issuers use it to determine if you qualify for their cards. And, increasingly, employers consider these three-digit numbers when they're making hiring decisions. How Credit Scores Work Your credit score encapsulates how you've handled your finances in the past. If you have a history of making...

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What Causes the Credit Score to Go Down

Increasingly, lenders place a significant weight on credit scores when consumers apply for a loan. According to the Federal Trade Commission, a growing number of insurance providers also utilize the information in credit histories to determine who may be too risky to insure. Knowing what contributes to a quality credit score and what causes the credit score to go down can facilitate building a solid credit history, resulting in offers of better interest rates and lower insurance premiums. Payment History According to the experts, the most...

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How Can I Report a Loan to the Credit Bureau?

Small businesses often want to report customer payment history to the national credit reporting bureaus, but this service can cost thousands of dollars a month. Individuals and small businesses can report to the credit bureaus on the cheap and sometimes for free. However, joining a national credit bureau usually is the best way to report loan payment history. Reporting as a Consumer As a consumer, you usually want the credit bureaus to report all of your accounts in good standing, because having as many positive accounts as possible is...

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How to Get a Rapid Rescore on a Credit Report

It can be disheartening to learn that your credit score is low when you are trying to apply for a mortgage or other loan. While you can't instantly fix the mistakes you've made in the past, you can fix mistakes that are on your credit report. If your credit report has any errors, you can have the credit company fix those errors, which can result in a rapid rescore on your report. You can improve your credit score in just six weeks. Instructions...

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How to Get Information Off Equifax

You can receive your credit report from Equifax for free once every 12 months. Monitoring your credit report allows you to keep track positive and negative changes and catch any fraudulent activity. Getting your credit information from Equifax is fairly easy. If you want to know your credit score, however, you will have to pay a fee. Instructions 1 Visit the Equifax website and click the area that says free annual credit report. 2 Select your state from the menu and enter the information. You will need your full name, date of birth,...

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Easy Ways to Fix Credit Report Mistakes

Errors and mistakes listed in a credit report can have serious consequences on your financial future. It is vital that consumers pull copies of credit reports yearly to review for accuracy. Any errors noted should be corrected right away. To correct errors on your credit report, you must follow one of three options. Credit Reports Credit reports are a comprehensive record of the way you have maintained your financial accounts. A score is...

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How to Report Payment History to the Credit Bureau

Your credit report may not accurately reflect your payment history, since not all credit accounts are reported. Most creditors supply information to the credit bureaus; however, some creditors, such as credit unions, local retailers, gasoline creditors and medical offices, often do not. Instructions 1 Have a current credit report. Go online to AnnualCreditReport.com to obtain your free online credit report from the three nationwide credit reporting agencies: Equifax, Experian and TransUnion. Print the reports from all three credit bureaus....

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How Much Impact Does a Charge-Off Have on a Credit Report?

If you have been pushing bills aside for few a months due to loss of job or other misfortune, a charge-off might be right around the corner. Now is the time to find out just how this situation will affect your credit. Credit Score One of the worst impacts charge-offs will have on your credit report is a sharp decrease in your credit score. The more charge-offs you have, the lower your credit score. Timeframe Charge-offs typically occur...

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Can Employment Background Checks Hurt Your Credit Score?

Information in your credit file at credit bureaus affects the calculation of your credit score. Employers who do background checks generally need information that goes beyond what they would be able to determine from your credit score. Nonetheless, some employers perform credit checks on employees and job applicants to gauge financial responsibility. Credit and Background Checks Credit checks and employee background checks involve different processes. Employment credit checks usually go through credit bureaus, which maintain consumer files...

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Does a Pre-qualification Affect Your Credit?

Your credit score plays a major role in a lender's decision of whether or not to issue you credit, so keeping your score as high as possible is important. Pre-qualifying for credit generally does not affect your credit score unless the lender pulls your credit report at your request. If you are concerned about your score, try to pre-qualify without a credit check. Credit Inquiry Basics If a pre-qualification does affect your credit, it is through generating a credit inquiry. Every time a lender views your credit report, the lender's name...

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How Does a Co-Signer Show Up on Credit Report?

Credit is generally extended to consumers based on information contained in their credit reports. Information on a credit report will not only reflect loans that a consumer is directly responsible for paying, but also loans for which they have signed as a cosigner. A cosigner is not responsible for paying the loan as long as the loan is not in default, but the obligation that they may have to pay will be there until the loan is paid in full. Significance A cosigned debt will appear on the cosigner's credit report much like any other debt....

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How to Remove a Freeze on Your Credit Report

If you are worried about someone getting access to your personal information or believe you might be a victim of identity theft, then placing a security freeze on your credit report can thwart many of these attacks. The freeze will prevent anyone from accessing your credit report without your consent, and identity thieves will not be able to open new lines of credit. Once you have cleared up these issues or fixed any security threats, you will need to request that the freeze be removed from your account. Instructions 1 Decide if you want...

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What Effect Does Debt Negotiation Have on Your Credit Score?

Debt negotiation is a useful tool for consumers who are seeking a way to resolve outstanding debts or bring delinquent accounts current. If you're considering debt negotiation, you should first be aware of the potential impact to your credit score. Short Term Part of the debt negotiation process requires that you default on the debts you wish to negotiate. With the first missed payment, your credit score may drop as much as 100 points. ...

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What If Someone Illegally Looked Up My Credit Report?

The Federal Fair Credit Reporting Act, along with some state laws, limits who has the right to view your credit report and for what reason. If someone breaks the law by looking at your report without a legitimate purpose, you can sue for any money you lose as a result and possibly for more than you lost. Legal Users The Fair Credit Reporting Act identifies the people who have the right to view your credit report. The list includes you; businesses deciding whether to grant you credit; employers making job decisions; landlords and insurers...

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What Happens to Credit Ratings With a Balance Transfer?

Transferring a credit card balance to another card with a lower interest rate is a useful way to lower your costs and put more of your money toward paying off your debt. The effect of the balance transfer on your credit score depends on your situation and how you execute the transfer. Opening a New Card Many credit card companies offer low introductory interest rates on balance transfers for people who sign up for a new credit card. However, opening a new card will hurt your credit score. First, when you fill out a credit card application,...

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FICO vs. VantageScore

If you've ever applied for a credit card, mortgage or car loan, chances are the decision was probably based on a FICO score, the model most widely used by lenders for decades. VantageScore now aims to change that by introducing an alternative. But are the two scores different? And, most importantly, should this alternative matter to you, the credit consumer? FICO FICO is a credit scoring model originally developed in the 1950s by Fair, Isaac...

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How Can You Raise Your FICO Score As Soon As Possible?

Fair, Isaac and Company developed the FICO score, a numeric score upon which many lenders make lending decisions. Based on such factors as how much credit a consumer utilizes and the amount of debt the consumer has, banks and others use a FICO score as an evaluation of risk. A person with a high FICO score will get the best interest rates on loans, while someone with a low FICO score may have trouble getting a loan altogether. Improving a FICO score...

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How to Obtain the FICO Score Lenders Use

FICO scores, named for the Fair Isaac Corporation that developed it, are the credit scores most lenders use to ascertain your suitability for credit cards, auto loans and home loans. Your FICO score also affects the rate of interest payable on a loan. The higher your FICO score, the lower the interest rate. FICO credit scoring is used by the three credit reporting bureaus: Equifax, Experian and TransUnion. Getting your FICO score can allow you...

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Improving FICO

A FICO credit score is the three-digit number that summarizes for lenders the risk that you present as a borrower. The FICO credit scoring system is used by most lenders and all three major credit reporting agencies (Experian, Equifax, and TransUnion). Perhaps you've had some financial problems that have lowered your FICO score, or maybe you're just starting to establish credit. Either way, improving FICO is something you need to plan for and work at. FICO scores range from 300 to 850. Scores of around 680 or higher are considered good. Using...

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Do Non-Sufficient Funds Affect Your Credit?

Let's say you were strapped for cash and rashly decided to try to float a check. Unfortunately, the check hit your account before your deposit did and now you've incurred a non-sufficient fund fee. The fee hurts and so does the bounced check; but the impact to your credit score isn't the same as the impact to your banking credit. Banking Relationship Bouncing a check, swiping that card one too many times, pulling out cash you don't really...

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Do Timeshares Affect Your Credit?

Timeshares allow you to own a portion of a property to use for vacation purposes. The properties are typically condominiums in resort areas. You purchase a time-share in one-week increments. Most of the companies that finance timeshares report your payment history to credit bureaus. If you fall behind on your loan or maintenance payments, it can have a serious effect on your credit. Timeshares Since you are only buying a small percentage of the property, in theory, the cost should be very reasonable. Unfortunately, most timeshare properties...

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How to Fix My Credit After Divorce

Divorce is difficult under the best circumstances and separating finances during and after a divorce may reflect unfavorably on your credit report. Lenders, insurance companies and even employers may use your credit report to evaluate your reliability in financial situations. While there is no "quick fix" for your credit score, reestablishing a solid history of borrowing and repayment will improve your credit report, resulting in more favorable loan...

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Reasons for an Adverse Action on an Existing Line of Credit

If you've gotten a notice in the mail that your credit card now has a lower credit limit, higher interest rates or a smaller grace period, you are not alone. Millions of Americans have been shocked to find that adverse action has been taken against them on their existing credit lines and that the excellent credit scores they had didn't quite protect them. There are several reasons that this may happen and only some of them are directly the fault...

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How to Get Help With Fixing Your Credit Rating

Improving your credit rating takes persistence. Your credit didn't become negative overnight, so improving it will take a bit of time and effort. Credit repair is really a lifestyle change and not a quick fix from a formula. The new financial habits you form during the credit repair process could help you live a life of financial freedom. Consider some steps to take to improve your credit rating. Instructions 1 Budget: There are many free budgeting tools online for the beginner. Dave Ramsey, host of a nationally syndicated radio show, offers...

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Foreclosures & Credit

Your credit rating comes from data in your TransUnion, Equifax and Experian credit bureau files. This trio of bureaus sells credit reports to lenders, employers and insurance companies making decisions about you, and your credit score is based on the same data. Negative things, like late bill payments, repossessed cars and house foreclosures, make you unattractive to creditors, insurers and hiring professionals. Definition A mortgage is a secured installment loan, meaning that you pay a set amount each month for a specified length of time,...

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Credit Repair After a Short Sale on Rentals

A short sale helps you prevent foreclosure, but it still counts as a negative item determining your credit rating. You do a short sale when you sell your home for less money than you owe the mortgage holder. Your bank or finance company must agree to the sale terms, and it accepts the reduced amount rather than forcing you to pay the full loan balance. You can usually improve your credit after the short sale. Effect A short sale is not explicitly noted in your credit bureau reports, but your mortgage holder marks the loan as "settled" rather...

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How to View Your Credit Score

It's advisable to view your credit score regularly. Your credit score determines your ability to obtain a line of credit. Higher scores make getting credit easier. You will benefit from preferential interest rates. Monitoring your credit score gives you greater confidence when you need to apply for credit. Regularly checking your score enables you to track any changes. Credit scores alter, depending on the way you manage credit. Viewing your credit...

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The Best Way to Check Your Credit Score

Your credit score is a reflection of the information held within your credit file. The age of your accounts, credit utilization, inquiries, types of credit and payment history are all factors in your credit score. Your credit score determines things such as: the interest you pay, whether you can qualify for credit cards or loans, insurance premiums, and whether you meet criteria for certain jobs. Every consumer should review their credit file to...

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How to Remove a Fraud Alert From Experian

The Federal Trade Commission (FTC) recommends several standard steps for victims of identity theft. Its first suggestion is placing fraud alerts on your credit reports, so that criminals can't use your information to create new accounts in your name. These alerts warn lenders not to open new accounts without carefully checking the applicant's identity. The FTC advises extending these fraud alerts for the maximum allowable length of seven years. However, you may need to remove them sooner. Experian, one of the three credit bureaus, has a...

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Does Your Credit Report List Requests for Your Credit Report?

The credit bureaus know everything about your financial history, even how many times you look at your own report. However, the bureaus protect you from discrimination unless the request for a credit report is made for a lending decision you initiate, called a hard inquiry. You want to check your report frequently for hard inquiries, because they can be as bad as anything else in your credit history. Identification The national credit bureaus list all credit inquiries on your credit report, usually under the credit report summary section....

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How to Create a New Credit Bureau File

Despite rumors on the Internet, the only legal way to secure a new credit file is by obtaining a Federal Tax ID number. This number is almost exclusively extended to businesses for the purpose of separating business owners' information from business information. Creating this new credit file is a lengthy process, but can offer advantages to a business. Instructions How to Create a New Credit Bureau File 1 Operate a strong, profitable business. Without a fully operational business, the federal government will not grant you a Federal Tax ID...

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How Does a FICO Score Work?

Application Consumers apply for credit from lending institutions, credit card companies and/or department stores. Applications for lines of credit will include name, Social Security numbers, date of birth, employer and current address. Consumers who have never applied for credit may need co-signers to get their credit history started. Lenders Lending institutions contact one of the three major credit-reporting agencies if the consumer is applying for credit in the United States. Most countries have a credit agency equivalent that houses...

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How to Settle Credit Card Accounts & Credit Scores

Settling credit card accounts, and thereby improving your credit score, can be accomplished with only a few short phone calls and letters. Collections agencies and credit card companies tend to use intimidating language that give the impression that the only method to discharge a debt is to pay it in full, but the reality is that all debts are entirely negotiable. Get all agreements with your creditors in writing and you will be well on your way...

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The Best Bank Cards for Your Credit Score

Although the credit reporting agencies do not widely publicize this fact, some credit cards are better for building a good credit history and thus, a good credit score, than others. If you are trying to start a credit history, however, you usually can't afford to be picky about your accounts. More important than the type of credit card you own is how you use credit. Identification Credit cards from a bank or credit union are the best way to build your credit score. The FICO scoring algorithm dings your score a few points for only having...

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How to Cancel Your TrueCredit.com Account

Signing up for the TrueCredit free trial allows you to see your credit report and score from TransUnion. Failing to cancel the TrueCredit service after the free trial period ends means you'll have to pay approximately $30 (as of June 2011) for the first month after the trial period and $15 for each month thereafter. In return, you can check your credit score and report from each of the credit bureaus. You are also automatically enrolled in a credit monitoring service. If you're only interested in the free trial, though, you must cancel your TrueCredit...

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How to Obtain a Free Annual Copy of My Credit Report

Under the Fair Credit Reporting Act, an individual is entitled to a copy of his credit report at no charge annually. Designed to encourage individuals to make certain that the information in the credit reports is accurate, the FCRA allows an individual to check a credit report to make certain that the information about bill payment history or bankruptcy filings is accurate. After all, having the wrong information in a credit report can affect everything...

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