Reasons for Low Credit Scores

The use of credit affects many aspects of American life. Credit checks are often performed when you apply for a loan or credit card. Nowadays, your credit also can affect whether you'll qualify to rent an apartment or receive a job offer. Maintaining a good credit score is important if you want to receive the best interest rates and enjoy solid financial success. There are several key factors that can affect your credit score. Late Payments ...

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Does Settling With a Credit Card Debt Affect My Credit?

When a person takes out a line of credit with a credit card company, he is required to make regular payments on the card at a previously agreed rate of interest. If the cardholder doesn't make these payments on time, he will face additional penalties. Sometimes, to get out of debt, the cardholder will attempt to negotiate a settlement with the company. An accepted settlement will usually hurt the cardholder's credit score. Credit Score A person's credit score -- the measure of his creditworthiness -- derives from his credit report. This...

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How to Get Lower Mortgage Rates Based on Excellent Credit

Having excellent credit does not necessarily mean you are eligible to receive a low mortgage rate. While your chances are high, a few factors can make obtaining the best possible mortgage rate more achievable. As with any loan product, it's important to always shop around and know your financial standing and credit history. Before beginning the application process, take several days or weeks to research different mortgage products. Instructions 1 Purchase your credit report and score from each of the three national consumer reporting bureaus....

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How to Fix a Credit Score From a Deceased Spouse's Bad Debt

Your credit score can affect almost every aspect of your life. Having a bad credit score can impair your ability to get a car loan, a mortgage, even car insurance or a job. Unfortunately, if your spouse dies and leaves a lot of unpaid bills, debt collectors may try to make you assume your mate's debt, or write off the debt and try to attach it to your credit report. Here's what you need to do to fix this problem. Instructions 1 Write to the debt collectors in question. If you were not a co-borrower with your spouse, ask them to remove your...

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How to Fix Your Credit Report Without a Lawyer

You do not need a lawyer to fix your credit report. Having inaccurate or outdated information removed from your report is a simple process, and nothing about it requires legal advice. Your rights are clearly spelled out in the Fair Credit Reporting Act, and you can clean up your report in as little as 30 days. There are no other legal ways to fix your report. Instructions 1 Get your credit report from annualcreditreport.com. The three nationwide...

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How to Get Your Beacon Score

If you have ever purchased anything on credit, such as a house or a car, chances are that you have heard the term Beacon score. According to Equifax, "...the BEACON FICO score is the score calculated when the Fair Isaac model is applied to the Equifax credit file." Your Equifax Beacon score ranges from 300 to 850. In addition, this three-digit number determines your interest rate and monthly payments on credit cards, mortgage rates and other forms...

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How Filing for Unemployment Affects Your Credit

Collecting unemployment benefits does not directly affect your credit report or your credit score. However, the fact that you are unemployed might negatively affect your ability to get new creditm because your income is limited and unstable. Check Your Credit Report Everyone is entitled to check her credit report once each year, free of charge. You can do this at AnnualCreditReport.com. This site allows you to receive your reports from the...

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How to Get a Paid Credit Account Off Your Credit Report

Your options are limited for stripping paid-off credit accounts from your credit report. The Federal Trade Commission reports that positive credit information can be reported indefinitely. However, any information that is wrong must be removed if you dispute the item with the credit bureaus. Most credit information that is negative, such as late payments, can remain on your credit report for seven years, according to the FTC. Federal law requires the credit bureau to investigate anything you dispute on your report. Instructions 1 Obtain...

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Will Debt Consolidation Affect My Husband's Credit Score?

Debt consolidation is the process of taking out a large, low-interest loan and using that money to pay off several smaller, high-interest debts. You can consolidate debt yourself by applying for a loan directly with a bank, or you can go through a company specializing in consolidation. If done correctly, debt consolidation can improve your husband's credit score. If done incorrectly, it can be financially devastating and ruin his credit history for...

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How to Calculate Your Credit Score From a Credit Report

Your Fair Isaac Corporation score, or FICO score, often referred to as simply your "credit score," is a measure of your creditworthiness. In other words, your credit score tells others how trustworthy you are, to help them decide whether they want to lend you money. There are only three credit reporting agencies, and they all calculate the score differently. So in order to find your true score, or your composite score, you'll need to get all three...

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Does Paying Off All Creditors Improve Your Credit Score?

Improving your credit score can help you get approved for loans and credit cards at lower interest rates. Paying off your debt can be an effective way of improving your credit score. However, not all debt payments will have the same effect on your credit score. Credit Utilization Ratio One of the factors that makes up your credit score is the credit utilization ratio. This is a comparison of the amount of debt you have accumulated in relation to the available credit you have. For example, if you have $1,000 in debt on a credit card with...

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Does Paying Off a Mortgage Early Help Your Credit Score?

It seems like a total given that paying off your mortgage early would mean good things for your financial health. However, what makes sense in terms of dollars doesn't always translate to an increase in your credit score. Paying off a mortgage is a perfect example. The reality is that paying off your mortgage early would only nominally help your credit score and may in fact weaken your score. Composition of a Credit Score Your overall credit profile is made up of five factors. In order of most to least important, your credit score accounts...

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Will Settling Unpaid Bills on a Credit Report Help a Credit Score?

Paying your debts may be the right thing to do, but it can be a bad idea when it comes to your credit score. Paying off old debts or settling a debt for less than the amount owed may get creditors off your back, but the ramifications to your credit report may be worse than the hassles with creditors. Define Settlement When it comes to your credit report, it's important to understand what settling means. If by "settling an unpaid bill" you mean paying it in full, that can help your credit score. Debt "settlement," however, means something...

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How to Make Sure You Get It in Writing That Debt Collectors Will Drop From Your Credit Report

Aside from your Social Security number, your credit score is the most important number associated with your identity. Your credit score determines your worthiness for obtaining credit cards, automobiles, mortgages and even jobs. Having negative information on your credit report has disastrous ramifications on your credit score and can deprive you of opportunities in life. If you have any negative items on your credit file, do anything you can to get them removed. However, once you get the collector to agree to remove the information, be sure to...

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How Can I Rebuild My Credit Rating After Declaring Personal Bankruptcy?

Filing a bankruptcy gives you the chance to start over and repair your bad credit history. While you can expect your credit rating to plummet after a discharge, the low ratings are temporary. It's possible to raise your low credit score and rebuild your credit within a couple of years. Instructions 1 Open a secured credit account with your bank. Contact your bank immediately after your discharge and take steps to obtain a secured credit card to begin rebuilding your credit. Secured credit cards are cards that require collateral in the form...

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How Do I Get a Personal Credit Check?

Personal credit reports are important in order for someone to borrow money or rent certain things in which credit checks are necessary. There are many services which will do credit checks by phone, online and even in person. The first personal credit check of the year is free but subsequent credit checks may cost money. However, some companies will try to enroll you in programs which will, in turn, charge you for this information. Annual Credit Report.com The three national credit reporting companies--Experian, Equifax and Trans Union--have...

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What Is the Official Site for Annual Free Credit Report?

With so many services promising "free" credit reports, it can be hard to differentiate between a misleading service and the real thing. The one place to go for a free copy of your report is a website, AnnualCreditReport.com, which is the only authorized source under federal law. Joint Service AnnualCreditReport.com is a service jointly set up by the three major credit-reporting agencies: Equifax, Experian and TransUnion. To get your free report, just go to https://www.annualcreditreport.com and follow the instructions. Your Rights ...

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What Is a Credit Score Based on?

A person's credit score helps determine whether a bank, credit card company or other lender will offer credit or a loan to a potential client. The higher a credit score, the better; a credit score may even affect employment, as many companies now check credit scores as part of the hiring process. Payment History Paying bills on time is one of the most important things an individual can do to improve a credit score; neglecting to pay a bill by its due date will hurt the score. Too Much Debt Having multiple credit cards or loans near...

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How to Easily Raise Credit Score 100 Points Or More

Having a high credit score is crucial when you are trying to get a new loan for a car or maybe a house. Most lenders will look at your credit score to determine if you are worthy of approving a loan for. Instructions 1 Your credit report will show if you have been late on any payments to any loans you have or and credit cards. Your report will also show were you currently live and where you have lived in the past. It is important to have a...

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What Your FICO Score Means

The FICO score is used to assess the credit worthiness of individuals. The Fair Issac Corporation initiated this credit-scoring method. An individual's FICO score is a number between 300 and 850. The higher the score, the more financially stable the individual is deemed to be. Individuals with higher scores are able to obtain loans at lower rates of interest because based on their history, they are more likely to repay the loans on time. Factors Influencing Credit Score The FICO credit score is computed by taking into account several factors....

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Can Medical Bills Go Against a Credit Report?

Credit scores are numerical estimations of a person's likelihood of paying off a debt in a timely manner. The three main credit agencies are Equifax, Experian and TransUnion. They adjust the credit scores of consumers by considering past accounts' payment histories, proportion of available credit to current accounts and personal income, and that of the consumer's spouse. Types of Debt The two main types of debt are secured and unsecured....

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Does Not Paying Medical Bills Affect Credit?

Doctors are in the business of providing medical care, not bill collecting, so they do not typically report unpaid accounts to the credit bureaus. A bill does not affect your credit unless it shows up in your TransUnion, Experian and Equifax credit bureau records. Some doctors sell bad debts to collection agencies, and most debt collectors transmit information to the bureaus. Your medical bills hurt you if they wind up with one of those agencies....

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Will Moving a Lot Hurt My Credit Score?

Whether a member of your family is in the military or you simply want to see more of the world, frequent moves are a fact of life for some consumers. Unfortunately, moving frequently can carry consequences beyond a lot of packing and unpacking. Not only does evidence of your move appear on your credit report, in certain situations moving frequently can hurt your credit score. Address Record Each time you move and change your address information...

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How to Negotiate Credit Card Rate Reductions

Paying 20 percent interest or more on a credit card raises your minimum payments and makes paying off the credit card difficult. Negotiating a lower interest rate on your credit card is doable. Naturally, credit card companies want you to pay a higher rate because this increases their bottom line. However, if you're serious about eliminating your debt, asking your credit card company to lower your interest rate is one of the first steps. A lower...

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How to Access Your Free Credit Score Report Online

No matter what you do for a living or how many assets you own, it is important to keep an eye on your credit rating. The status of your credit report will impact everything from the interest rate on your mortgage to your ability to get a loan. Your credit report can even impact your employment prospects and your car insurance rates, since many employers and insurance agencies routinely check credit reports as well. Fortunately consumers are entitled...

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How to Increase Your Credit Score After Paying Debts

One of the most important pieces of advice given to a person with a bad credit score is to pay down all of your debt so you have a clean slate. However, once you have your debt gone, you may wonder why your credit score doesn't magically rise. After you pay off your debt, there are still a few things you need to do to get your credit score to go up. Instructions 1 Continue to use your credit cards. Credit scores are based on how well you manage...

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Can Foreign Collections Affect Your Credit Report?

Don't think you can incur debt in another country and skip out on paying the bill simply by returning home. Just like in the U.S., the foreign creditor will eventually turn your debt over to a collection agency and debt collectors will soon come looking for you. Depending on the type of debt and how much you owe, a foreign debt could end up on your credit report and damaging your good credit record for years to come. Credit Reporting All creditors whose accounts appear on your credit report are able to file those reports because they hold...

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Who May Check Your FICO Score?

Your FICO score, sometimes called your "credit rating," is a numerical measure of your credit history and creditworthiness. A FICO score of 850 represents perfect credit, while a rating of 300 is the lowest possible score; the median score is 723, according to Dana Dratch, a columnist for Bankrate, a consumer and individual financial information website. Besides yourself, several entities can access your FICO score. Prospective Employers Businesses will often check your credit report and FICO score before making a hiring decision. Companies...

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What Kind of Loans Will Improve Credit the Most?

Consumers looking to improve their credit scores have a range of options. Beyond the standard tools such as on-time payments, amount of credit utilization and length of credit history, specific types of loans will improve scores the most. Part of this depends on individual circumstances; the kind of loan generally matters little to people who have and maintain pristine credit histories, while those with low scores can benefit the most from such loans. As always, discipline and consistency remain paramount considerations. Mortgage Loans ...

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Information on Do It Yourself Credit Repair

Your credit score is calculated using a formula created by the Fair Isaac Corporation using information found on your credit report. Your score takes into account your payment history, the different types of credit you have used, the amounts you owe, the length of your credit history and how much new credit you have recently applied for. Many companies offer to fix your credit score so that you can get loans or the preferred interest rates. However, you can improve your score on your own. Check Your Credit Report Your credit score is based...

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How to Get a Charge-Off Removed After 7 Years

A charge-off on a credit report will remain on that report for seven years. A charge-off is a debt that the lender considers a loss to the company. This does not mean that the debt will go unpaid. Often this type of debt is sold to a collection agency. But even if you pay the debt in full through the collection agency, it will remain on your credit report as a charge-off for up to seven years. Instructions 1 Understand the type of charge-off. A charge-off might change if the debt is paid to a charged-off debt or a charged-off settled. All...

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Can Judgements Be Removed From Credit?

Failing to pay back a debt could mean the creditor sues you, probably resulting in a judgment, and ruin your credit score. If someone sues you to obtain a judgment, you might be able to negotiate to remove it. At a bare minimum, dealing with the debt is better than letting it sit. Vacated Judgment Vacating a judgment means the court removes the judgment from your record because it was improperly awarded to the creditor. Judges may vacate the judgment due to a reasonable excuse for not showing up for court, such as being out of town or having...

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What is Equifax Reporting?

Equifax is one of the three major credit reporting bureaus. The other two are TransUnion and Experian. These three agencies keep records of your credit history and then assign you a score based on those records. When an item is reported to Equifax, the agency determines whether it is a positive which increases your score or a negative which decreases your score. Effects of Credit Reporting Equifax assigns you a credit score, called your FICO, because it was developed by the Fair Isaac Corporation. This score is what lending institutions...

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What Is the Highest FICO Score You Can Have?

Borrowing money is fundamental financial activity that allows average consumers to buy homes, cars, education and other goods and services. When you take out a loan or a credit card, lenders use your FICO score (also called your credit score) to help determine how risky it is to lend to you. Your FICO score can impact the interest rate you receive on loans. FICO Score Range FICO scores get their name from the Fair Isaac Corporation, which developed formulas used to calculate credit scores. FICO scores range from 300 to 850; 300 is the worst...

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Explanation of a Good Credit Rating Score

Credit scores help lenders, employers and landlords quickly assess if you are a good credit risk and can keep your financial affairs in order. Credit-scoring companies use information from your credit reports to determine your score, and each has different criteria for its calculation. However it is calculated, a good credit score is always the product of long-term, responsible use of credit. A Good Credit Score A "good" credit score depends on both the credit-scoring system, as well as the criteria set by individual credit grantors. In...

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Why Care About Your Credit Score?

Your credit score is a three-digit number that determines your credit-worthiness. There are three credit bureaus that track and rate your credit history -- Equifax, Experian and TransUnion. Each bureau compiles your credit score using a proprietary formula, that takes into account your payment history, percentage of available credit compared to your total credit line, and the length of your payment history. Your credit score is referenced by potential employers and prospective landlords, among others, and those are just two of the reasons to care...

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Can Reduction in a Home Equity Line of Credit Affect My Credit Score?

A home equity line of credit is a type of secured revolving credit that uses your home's equity -- the value of the home minus mortgage owed -- as collateral. In certain cases, your lender may decide to reduce your home equity line of credit because of a drop in your income, an increase in your debts or other factors inhibiting your ability to repay the loan. Function Credit scores, also known as a FICO scores, are based on a variety of factors, including amount of debt, payment history and length of credit history. According to My Fico,...

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How to Build a Killer Credit Score

Your killer credit score can be described as a score of 800 or more. The maximum attainable is 850. To build a killer credit score, you need to get your score regularly. Choose to get your score from FICO (Fair Isaacs Corp.). It's the score most lenders rely on when assessing your suitability for credit. Your FICO score is compiled using data from the three credit reporting bureaus: Experian, Equifax and TransUnion. Instructions 1 Go to MyFICO.com...

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Why Does Someone's Credit Report Drop Every Time it Is Checked?

You may have heard that credit inquiries --- that is, someone looking at your credit report --- will have an effect on your score. In certain circumstances this is true, but not every inquiry has the same effect, and usually a drop in your score due to an inquiry is short-lived. Credit Card Companies If you apply for a new credit card, the prospective lender will check your credit report and score. This is the typical inquiry that will have a depressing effect on your score. The effect of one of these types of inquiries is slight -- amounting...

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