Why a Credit Score Is a Good Thing

Having a credit score allows creditors to assess your financial stability and determine how much credit to give you. Therefore, it is important that consumers build credit to establish a strong credit score. Lower Payments A consumer with a good credit score will have to make lower monthly payments to creditors, according to the Federal Trade Commission. Without a credit history, credit card companies will expect consumers to make high payments every month because they pose a risk. More Credit Having a credit score opens you up to...

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How to Fix My Credit With a Credit Repair Company

The Fair Credit Reporting Act protects consumers from credit bureau mistakes by letting them dispute inaccurate information, according to the Federal Trade Commission. This law is often used to fix bad credit because it covers virtually any mistake. Even a misspelled name gives grounds to challenge an entry. There is no cost to fix your own credit because disputes are free, but credit repair firms will do the clean-up for you if you would rather pay than do the work yourself. Instructions 1 Ask friends, family members and co-workers for...

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Accounts to Build Credit

Lenders do not like to loan money to people who do not have an established credit history. People with no credit have to deal with the conundrum that you cannot qualify for credit unless you have had credit in the past. However, there are certain kinds of accounts that people with little or no credit history can establish. If you manage these accounts correctly then before long you can qualify for harder to obtain forms of credit. Secured Credit Card Generally, credit cards have no collateral which means banks assume a high degree of risk...

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Fast Credit Repair Information

Living with a bad credit score likely results in higher interest rates on auto loans and credit cards, and some mortgage lenders will not approve you for a loan with a low score. Fortunately, credit repair can help you get the credit that you deserve. Several techniques can help you build a better score. Remove Blemishes From Credit File Blemishes or mistakes on your credit file do hurt your credit rating, and removing these mistakes is one way to quickly repair your credit and qualify for loans. Credit report mistakes can range from outdated...

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How to Reestablish Credit History

Your credit history is important. There may be times when money is short. Bills get missed. Credit cards payments are late or limits exceeded. All get recorded on your credit history. Within a short while, the good credit rating that you had for years is gone. Now you can reestablish your credit history by following a few guidelines so that it will improve over time. Instructions 1 Apply online to get your credit history reports. They detail...

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Credit Rating Criteria

Knowing the criteria for determining your credit rating can help you maintain a good credit score. Credit ratings are important for various reasons. Ratings decide approvals for mortgages and other loans, and your credit score range determines the rate you receive on such loans. Learn the factors that influence your score and make wise credit choices. Payments to Your Creditors A good credit score entails improvement in various credit areas, and making timely payments every month to creditors, lenders and other bill collectors can help...

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How Long Do Negative Credit Scores Affect Your Credit?

Far too often people focus more on their numerical credit score than the root cause of their problems: a bad credit history. As long as you have a bad credit history, you probably will have a poor credit score. Because repairing a bad credit history does not happen over night, you must start the repair process as soon as possible. Identification Credit scores are the result of a poor credit history. Because credit scores vary depending on which credit rating scale a credit reporting firm uses, some lenders only look at items on your report,...

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What Is a Credit Rating Scale?

Creditors and lenders tend to focus on the FICO credit score, but there are hundreds of types of credit scores used by lenders to determine creditworthiness, according to Experian. Each of these scores has its own rating scale. While the presence of different score ranges might confuse some consumers, credit rating scales tend to work in the same fashion. They help lenders to quantify the risk of an applicant. Function A credit rating scale...

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What Is a Credit Score for a New Car?

When you use credit, the creditor will report your account to the credit bureaus. The bureaus maintain a database of this information and use it to create your credit report. Lenders may view this data when you apply for a new car loan, so it's a good idea to understand what credit score you may need to be approved. Identification Your FICO credit score is based on the information found in your credit report. Both positive and negative account information will impact your score. FICO scores have a range of 300 up to 850, and the higher...

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What Is My Credit Score After I File For Bankruptcy?

The Fair Isaac Corporation's FICO score is the primary assessment tool that banks use to determine loan eligibility. Declaring bankruptcy has a strong impact on your FICO score and your ability to borrow in the future. However, borrowing won't be impossible, and your score may even be higher. Understanding your score and how bankruptcy affects it can help you recover. Understanding Your FICO Credit Score Your FICO credit score is a three-digit...

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How to Remove Questions Related to an Ex-Husband on a Credit Report

Divorce ends a marriage but doesn't always end credit issues with a spouse. Joint credit obligations with your ex-husband will continue to appear on your credit report after your marriage ends. The judge in the divorce court can order your ex-husband to pay certain debts, but legally, the judge cannot end your responsibility for the joint debt -- or the reporting to the credit bureaus. For example, that means that you and your ex-husband both remain liable for a joint automobile loan, even if the court orders him to make the payments. Problems...

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Are There Any Real Free Credit Reports?

Consumers interested in obtaining free copies of credit reports may feel confused by the wide array of options for accessing this sensitive financial information. Learning the basics about your rights in accessing credit reports, including whether there are any real free credit reports, can help you avoid scams or disclosing private security information to fraudulent sources. Consumers do have the right to free credit reports in some circumstances....

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How to Add Trade Lines to Your Credit Report

Trade lines are credit accounts on your credit report. Each account counts as one trade line, and the trade line's information is used to determine your credit score. You can add new trade lines to your credit report to increase the amount of overall credit you have access to, or add more positive trade lines to rebuild your credit or establish new accounts to diversify your credit accounts. Instructions 1 Apply for credit cards and store card accounts to add revolving credit to your credit report. Getting a mixture of revolving credit accounts...

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What are the Parts of Credit Reports?

A credit report is an important tool that helps you understand your financial options. The information on it can mean a higher or lower interest rate on a mortgage. It can help you get a credit card, and it can stop credit card companies from accepting your application. A simple list can help you examine what the information on your credit report means. Credit Score An important piece of information on your credit report is your credit score,...

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Can You Get Financial Aid With Bankruptcy and Bad Credit?

Although bankruptcy makes it tough to obtain credit, it sometimes has no effect on your financial aid package and sometimes gets you more aid. However, bankruptcy can cause a lender to reject you for student loans. The best way to gauge how bankruptcy and bad credit affect financial aid is to consult your school's financial aid office. Identification You can get most financial aid, such as state and federal grants and work-study jobs, with a bankruptcy on file. The only items a bankruptcy affects are private student loans and the federal...

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What Is Figured Into Your Credit Scores?

Five different categories of information are taken into consideration when calculating your credit score, according to MyFICO. The bearing of each category on your score will depend on your specific circumstances. While a credit score is based only on information that is contained in your credit report, details such as race, gender, marital status and location are not used in the calculation of a credit score. Payment History Your payment history is worth 35 percent of your credit score. Payment history on your credit report details any...

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Will a Mortgage Payoff Negatively Affect a Credit Rating?

Many homeowners dream of the day they pay off their mortgages and become the sole owner of their homes. Like any loan, paying your mortgage affects your credit score, and paying off the mortgage may actually end up lowering your score. However, any negative impact you incur against your credit score will likely be minimal. Credit Scores Your credit score is a three-digit number that tells lenders if you represent a risky or sage prospect for a loan. Every time you pay your bills, apply for a new loan or pay down your debt, your credit...

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Clean Credit Information

Cleaning your credit not only helps when qualifying for financing, but maintaining a clean credit history can help you find the best auto insurance rates and affect employment options. Improving credit is no easy task, and credit score increases occur gradually with good habits. Learn what it takes to clean up your credit, and then take steps to prove that you're creditworthy. Avoid Late Payments Credit scores are largely determined by how well you repay your debts each month. One missed payment may not ruin your score, but if you never...

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How Much Will Paying a Judgment Help My Credit Score?

Although more than one credit scoring system exists, most businesses that check credit scores request a FICO score. Your FICO score lies somewhere between 300 and 850. Positive credit entries, such as timely payments to lenders, increase your credit score while negative entries, such as judgments, diminish your score. Sustaining a high credit score helps you qualify for a variety of goods and services and ensures that later lenders charge reasonable...

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What Method Does FICO Use to Calculate Credit Scores?

Your FICO credit score is a three-digit numerical representation of the information contained within your credit report. It ranges from 300 to 850. According to Fair Isaac Co., inventors of the FICO scoring model, your FICO credit score measures five key credit areas. Identification Thirty-five percent of your FICO score reflects how well you pay your debts. How much debt you owe is 30 percent of the score. The length of your credit history...

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How to Understand and Upgrade Your Credit Score

One of the most important numbers in your life is your credit score. That three-digit number determines whether you qualify for a mortgage, what interest rate you will get on a credit card or auto loan, whether you can get an apartment and sometimes, even a job. Lenders and employers are increasingly looking at your credit score to determine whether you are financially responsible. Instructions 1 Learn what factors do and do not affect your score. Your income, age or race has nothing to do with your score. What does matter is payment history,...

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How to Get a Free FICO Score Online

When you apply for a loan or a credit card, the agency will review your FICO credit score to determine if it will give you the credit line you desire. If your credit score is too low, your application may be rejected. If a credit score is high, your interest rates and monthly payments may be reduced. Your credit score affects many aspects of your life as even landlords and employers run a credit check. Instructions 1 Visit the Annual Credit...

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Basic Credit Reports

Knowing the information on your credit report helps you qualify for different types of financing, from mortgage loans to credit cards. Some consumers don't review their own credit report, which often results in errors and identity theft. Learn the importance of an accurate credit report and learn how to acquire your personal file. Purpose of Reports Credit reports are documents that reveal your entire credit history; they feature every credit account that you've held in recent years and the status of each account. Lenders checking your...

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Positives Vs. Negatives in a Credit Report

Your credit reports, compiled by the TransUnion, Equifax and Experian reporting agencies, contain neutral data, such as your name, current and previous addresses and employers, phone number and Social Security number. Your credit bureau files also have information considered either positive or negative by creditors. Lenders weigh the good and bad when you submit credit applications, and they base their decision on you creditworthiness -- whether you are a good credit risk or likely to default -- on information in your credit report . Positives...

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How Are 3-in-1 Credit Scores Evaluated?

The three major credit bureaus, Equifax, Experian and TransUnion, offer a 3-in-1 credit report or score. Each bureau offers a score based off the information that has been reported. Breakdown A credit report contains information about various credit accounts, companies who have requested credit information, payment history, and collection accounts. Facts from lenders and collection companies are reported to the credit bureaus and placed...

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Can I Add Something to My Credit That Was Not Reported?

After checking your credit reports, you might feel disappointed if you find you have no credit history or fewer accounts than you expected. This frequently happens because customers mistakenly think that any bill they pay goes in their credit history. You can add something omitted from your credit history to your file, but it might not help you obtain credit. Identification Technically, you can add something to your credit report that was not updated by your creditor, but only if the creditor subscribes to the credit reporting bureau and...

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