Can You Figure a FICO?

Credit scores play a role in a variety of financial transactions. From getting new insurance to applying for a loan or credit card, your credit score determines your eligibility and plays a role in setting your interest rate. One such score is the FICO score. More lenders request FICO scores when evaluating applications than any other credit score. Checking your own FICO score before your lender does helps prevent unpleasant surprises. FICO Scoring Formula The Fair Isaac Corporation (FICO) owns the mathematical formula used to calculate...

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How to Get a Debt Off Your Credit Report After 7 Years

Not all debt on your credit report is bad. Any accounts for which you have a good payment history are positive items. Accounts that have zero account balances because the creditor charged it off and all collection accounts are negative items. Negative items don't always automatically drop off your credit report in seven years, but you may be able to remove them after that time has passed. Instructions 1 Obtain a current copy of your credit...

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How to File Complaints to the Credit Bureau About Incorrect Reported Information

Incorrect information on your credit report can cause a multitude of problems, including the inability to get a job, secure insurance on your car or obtain a loan. Fortunately the Fair Credit Reporting Act provides help against inaccurate reporting. Instructions Reporting Incorrect Information 1 Get a current copy of your credit report. Under the Fair Credit Reporting act all three of the nationwide credit bureaus---Equifax, Experian and TransUnion---are required to provide you with a free copy of your credit report, at your request, once...

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What Is an R9 on Your Credit File?

At any given time, only about 2 percent of Americans know their exact credit score, according to the Frontline. Even less know about the codes used by some lenders on credit reports. "R9" is one of the most important codes you should watch for because it is potentially very damaging; however, you might be able to get it off of your record. Identification An R9 on your credit file means you have a revolving loan, most likely a credit card account, in very poor standing or sold to a collections agency. Most lenders send an account to collections...

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What is a Credit Report?

If you've ever applied for a loan or a credit card, you've probably heard about credit reports. Credit reports are a way for money lenders to hold borrowers accountable for the money they owe, and alert other lenders about bad borrowers. Function A credit report lists all of your credit activity for the last 7 years. This includes accounts like credit cards, car loans, home loans and store accounts, and can include accounts from creditors like cell phone companies and cable companies. Bankruptcies are also listed, and remain on your...

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What Does 'Written Off' Mean on a Credit Report?

"Written off" can appear in a credit report when the debt has been unpaid after collection action by the company has been pursued, according to Maxine Sweet of Experian, a credit-reporting agency. Definition "Written off" means the company has discharged the debt from its own books. Outcome A debt that has been written off does not mean it has been wiped out. Many times, the debt has been sold or transferred to a collection agency....

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Minimum Credit Score to Get a Mortgage

Banks loosened their mortgage loan standards in the first part of the 2000s, according to "U.S. News & World Report" writer Luke Mullins, and this easy loan availability contributed to a housing crash. Standards, including credit score requirements, are now much tighter. You need good to excellent credit to qualify as a new home buyer, and and a large down payment helps too. Definition You have a credit score as long as your credit reports show at least one account that has been open for a minimum of six months, according to the Home...

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Credit Restoration Guide to Repairing Bad Credit

Techniques to fix a low credit score can help you secure financing for a home and cars. Lenders have to review credit scores before granting a loan approval. Credit scores help lenders assess the risk of approving an application. People with high ratings are normally lower risks, whereas high-risk applicants are usually those with bad credit. Improve your credit score and become the ideal loan candidate. Credit Card Balances Paying off new credit card charges once you get the bills is key to eliminating debt and raising your credit score....

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Does Closing a Bank Account Hurt Your Credit?

There are many reasons for closing a bank account. You could be moving to another city where your current bank is not located. Maybe you have had continuous bad experiences with your current bank. No matter the situation, if you are planning on closing your bank account, be certain you manage the closure appropriately. Significance There is great significance to having a bank account. The bank can hold your money for you so that you don't...

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Does Filing Bankruptcy Affect Credit Scores?

Filing bankruptcy is one of the worst things to have appear on a credit report. When creditors see a bankruptcy, they may be worried that the individual might not be able to follow through on payments in the future either. Effects People who have high credit scores before filing bankruptcy will see a larger drop in their credit scores than those who had low scores before bankruptcy. Someone who had a very low credit score because he had been delinquent in all his accounts may even see his score rise slightly after the bankruptcy, according...

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What Affects a Credit Score in Canada?

According to the Financial Consumer Agency of Canada, your credit score in Canada is calculated by two credit bureaus: TransUnion and Equifax. Your credit report will also contain identifying information such as where you live that does not affect your credit score. Factors There are several factors that affect your credit score in Canada: how well you have made payments in the past, how many judgments against you are on your credit report,...

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Credit Report Vs. Credit Score

A credit report is a detailed list of a person's debt history and information. A credit score is a numeric value place upon the information in the credit report to show a person's likelihood of paying a bill. Significance Any time a consumer goes to take out a new form of debt, from a credit card to a mortgage, the lending institution will pull both a credit report and a credit score. Some lending institutions will only pull one score, but...

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If I Cancel a Credit Card Will it Hurt My Credit?

Canceling a credit card can hurt your credit if you carry high amounts of debt or you have a short credit history. The type of card you cancel matters too. Although the negative impact of canceling a credit card varies with each person's credit profile, you should review your current debt, assess the number and type of cards you own and examine your credit history length. Review Your Debt Review the amount of debt you owe and compare this...

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How Much Does a Home Loan Hurt Your Credit Score?

A home loan is just one of many items that appears on your credit reports. The Federal Reserve Bank of San Francisco website explains that your reports list all your open credit accounts, including their balances and payment histories, your demographic data and even recent inquiries into your file. All of your credit use activity, including your home loan, figures into your credit score. Application Process The home loan application process hurts your credit score before it requires "hard inquiries," according to the MyFICO scoring information...

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Does Having a Lien Put on Your Boat Affect Your Credit Score?

The circumstances surrounding placement of a lien on a boat that you own may have an impact on your credit score. Individuals and businesses can place liens for a number of different reasons. In some instances credit rating agencies have no knowledge of liens, which means that these liens do not appear on your credit report. However, other situations involving liens can cause serious damage to your credit score. Liens A lien represents an interest that a party has in a piece of property owned by another individual or entity. Legally, a...

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Can I Get Points Back on My Credit Score?

Credit scores are dynamic reporting figures, meaning they do not always remain stagnant for long. Just as unwise money management can cause your credit score to drop, wise personal finance habits can cause your score to rise back up. Gaining points back on your credit score can be more challenging and much more gratifying than losing them, however, and the process requires patience, discipline and often sacrifice. Understanding what it takes to raise...

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Things That Negatively Affect Your Credit Score

A good to excellent credit score is critical in order to create financial stability or build future borrowing power. Excellent credit can get you into a car lease with little down or put you at the head of the list of a sought-after apartment or condo for lease. Credit scores are a complex set of statistical factors that determine the likelihood an individual will pay back the money he has borrowed. Several things on a credit report can negatively...

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How a Credit Reporting System Works

Origins Though the credit reporting system has been a vital part of consumer lending for decades, the same system used by banks to determine financial health and consumer risk is also used by many other entities. Prospective employers use credit reporting systems to determine the financial health of applicants who are seeking employment with their companies, and many landlord run credit checks to determine whether or not a potential tenant...

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Difference Between Credit Score Agencies

The three major credit bureaus, Experian, Equifax and TransUnion, have more similarities than differences. All of them are essential in determining your credit history and ability to obtain loans and financing for a variety of reasons. Definition A mathematical formula calculates your credit score (also known as a FICO score) by taking the information from your credit history (timeliness of payments on debts, revolving credit and the like)...

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How Long Can Liens Stay on a Credit Report?

Time Frames There are different time frames that liens stay on a credit report. The time frame depends on the type of lien that is owed. The Fair Credit Reporting Act dictates the length of time that a lien can stay on your credit report. Bankruptcy and Tax Liens If you file bankruptcy, the bankruptcy stays on your credit report for 10 years. The 10-year time frame starts on the date of the entry of the final order in your bankruptcy case. A lien caused by a civil suit and/or judgment stays on your credit report for seven years or...

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Is It Possible to Increase Your Credit Score 300 Points in a Year?

You may be ready for a steady increase in your credit score after a financial disaster. Three hundred points is an enormous leap for any score, even in a year. In theory, anything is possible, but you would likely need to start with a score at the bottom and manage your finances perfectly to see a 300-point rise in 12 months. Identification How exactly you raise your credit score by 300 points in a year, nobody knows, because the Fair Isaac Corporation, producer of the most popular scoring model, only reveals the general factors in its...

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What Is KD on a Credit Report?

When you order your credit report, you will see a number of codes below your accounts or events in your financial history. If you order a combined report from all three credit bureaus, one of these codes is KD. This stands for Key Derogatory, and it describes one of a number of negative events that can cost you points on your credit score. Where It Appears KD is one of the terms that may appear in the "Account History" portion of your report. If an account is current and there is no problem, you should see the code OK in green for that...

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How a 3-Day Notice Can Affect My Credit

Apartment defaults were at an all-time record 4.6 percent in May 2010, in large part due to tenants failing to meet their rental obligation, according to Real Capital Analytics. Landlords often serve a 3-day notice to pay rent due or face eviction as a collection tactic. While this probably won't hurt your record, an ensuing lawsuit or collection account will. Identification A 3-day notice to evict does not have an immediate impact on credit,...

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How to Raise an Already High FICO Score

A borrower's credit score is a direct reflection of his willingness and ability to repay debt. A lender uses that credit score to determine the approval or denial of a new debt, as well as the interest rate associated with that debt. The highest credit scores net the most favorable interest rates and terms on debt. Therefore, it is important for a borrower to gain and maintain a high credit, or FICO score. There are a few ways in which a borrower...

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Does Your Credit Matter for Student Loans?

The impact of your credit score on obtaining a student loan depends on the type of student loan being sought. Some student loans do not require a credit check, but for some other student loans, applications may be denied or high interest rates will be charged if you have bad credit. Stafford and Perkins Loans The federal Stafford and Perkins student loans do not require a credit check. Therefore, applicants with a bad credit or no credit history can obtain Stafford and Perkins loans. These loans are guaranteed by the federal government...

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How Does Obtaining New Credit Affect Your Credit Score?

Sometimes, you must take on debt to make your FICO credit score more attractive to lenders. A new line of credit, however, negatively affects your score as soon as you get the loan or if the bank rejects your application. Seldom should you let concern for your credit score stop you from obtaining emergency funds, but if you want to boost your score, a credit card is usually a better option. Credit Inquiry Any new credit account usually comes with a hard credit check because you applied for an account. A single hard check hurts your score...

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Can a Fixed Home Equity Loan Drop My Credit Score?

A home equity loan is a type of loan in which a homeowner uses the equity that he has built up in his house as collateral. Generally, a homeowner will be able to take out a home equity loan after he has paid off part of his mortgage or the house has appreciated in value, creating more equity. Taking on additional debt can cause a homeowner's credit score to drop, as can applying for credit. Applying for a Loan When you apply for a home equity loan, the lender to whom you apply will often usually choose to examine your credit report to get...

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How Long Does It Take to Rebuild a Credit Score?

Get Your Credit Score Find out what is on your credit report. There are three major credit reporting agencies, and you are entitled to a free report from each of them every year. It can take between 3 and 7 years to repair your credit score, and a bankruptcy will stay on your credit report for 10 years. The three major reporting agencies are Experian, Equifax, and TransUnion. You can view your reports online or print them out. Be sure to record the report number so you can access them for free if you need to do so. Document and Dispute...

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Charge-Off's Effect on Your Credit Report

A charge-off occurs when a creditor removes an unpaid debt from its accounting books. It most often refers to defaulted credit card debts. The charge-off process allows the creditor to dispose of the debt by selling it to a debt collector and writing off the remaining balance as a business tax loss. Charge-offs often have a negative impact on the debtor's credit report. Initial Impact The creditor that charges off your debt can insert a negative note on your credit report to reflect the charge-off. Some creditors, such as credit card companies,...

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How to Add a Credit Trade Line

Trade lines can make or break your credit history. The number of open trade lines you have open on your credit reports and the amount you have available to you can have a dramatic effect on your purchasing power. However, not all trade lines are created equal. Credit cards, for example, don't have the same impact as installment loans on cars or houses. In order to make your credit history reflect the best that it can be it's important to have as many positive trade lines and variations of trade lines as possible. Here is your guide on how to add...

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How Do You Check Your FICO Credit Score?

Fair Isaac Corporation develops FICO scores for the three major credit reporting agencies: Experian, TransUnion and Equifax. Your FICO score can range from 300 to 850; the higher your score, the better risk you are considered. Fair Isaac estimates that a 100-point drop in your FICO score could cost you more than $25,000 in additional interest over the life of a 30-year home loan. Packages are available from Fair Isaac and other companies that allow...

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When Will a Charge Off Come Off My Credit Report?

A charge-off is a negative entry placed on your credit report after you fail to pay a debt. The creditor closes the account after in-house collection efforts fail. Charge-offs damage your credit rating and may prevent you from getting approval on loans at reasonable interest rates. Some mortgage companies will not approve your application until all charge-offs are resolved. Guidelines The Fair Credit Reporting Act allows for charge-offs to be reported on credit reports for seven years. So-called credit repair clinics advertise that they...

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How to Create a Brand New Credit File in the UK

If you have had trouble paying back your creditors, your credit file contains information regarding history of late payments, default notices and, in England and Wales, County Court Judgments. Such information on your credit file will often have negative repercussions when obtaining credit in the future. Mortgages, car loans and credit cards will be difficult to obtain. As a result, you may wish to clean up your credit history by repairing past financial...

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Why Do My Credit Scores Change Daily?

Credit scores can change, and often do so daily. Knowing how scores are calculated and what can cause them to change will help consumers understand why their scores fluctuate. Basics Credit scores are numerical representations of a person's reliability as a debtor. High scores mean they are more safe to lenders, while low scores indicate more risk. Score Calculation Credit scores are determined using several factors regarding a person's...

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How Is a Private Student Loan Reported on a Co-Signer's Credit?

Students rarely have much credit history, and private lenders are often not willing to risk lending to a borrower who could very well default on the student loan. The co-signer needs to have positive credit history and must agree to be held responsible for paying back up to the full balance of the loan, plus interest and fees. Because the co-signer's name is on the loan, the loan data appear on the co-signer's credit report. All Data Reported All of the data about the student loan appear both on the student's credit report and the co-signer's...

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