My Credit Wasn’t Going To Fix Itself… I Had To Do Something…

It was then that I realized only I could take charge of my credit and get it fixed… The first thing I did was try a so-called “professional” credit repair agency, but…

Monday, September 30, 2013

Credit Score Charge-Off vs. Pay

Whether you realize it or not, your credit score plays a major role in your financial stability. A good credit score ensures that you can obtain the loans and credit cards you need at reasonable interest rates. Employers, landlords and insurance companies also evaluate your credit scores when you apply for a job, housing or new insurance coverage. Derogatory information on your credit report, such as evidence of a past charge-off, lowers your credit...

Sunday, September 29, 2013

What Specific Information Is in a Full Credit Report?

Your credit report can have large influence in your life. A good overall score on your report can open doors for you financially, while a low number may mean you have to pass up some opportunities. You have a right to access your own credit report for free once a year to check the information that's being held. What's In It Your report will include your full name, and any aliases or previous names, and a list of your current and previous...

Saturday, September 28, 2013

Factors That Make Up the FICO Score

Your credit can affect many aspects of your life, from qualifying for a home mortgage to receiving a job offer. According to Fair Isaac, inventors of the FICO scoring model, a FICO credit score ranges from a low of 300 to a high of 850. There are five distinct factors that FICO considers when calculating your credit score. Bill Payments How well you pay your bills accounts for 35 percent of your FICO score. On-time payments will increase your score. Late payments will cause your score to drop, and the later the payment, the more your score...

Friday, September 27, 2013

Does Debt Forgiveness Hurt My Credit Score?

If you're really struggling to keep up with payments, debt forgiveness can seem like a godsend. The lender erases some of your debt to avoid you defaulting on the whole amount. Unfortunately, debt forgiveness has its downsides. One of these is that it will hurt your credit score. Another is that you will have to pay tax on the amount that is forgiven. Debt Forgiveness Debt forgiveness doesn't happen overnight. It's a result of a lengthy negotiation...

Thursday, September 26, 2013

How to Clean Credit Repair Letters

Credit repair letters are an integral part of the credit report dispute process. They let you challenge harmful, mistaken items that pull down your credit score. The Federal Trade Commission (FTC) explains that letters are better than using the online dispute forms from TransUnion, Equifax and Experian. A letter gives you proof of delivery if you send it certified and lets you enclose supporting documents. You can easily clean up a sample credit...

Can a Mortgage Application Lower a Credit Score?

A credit score is a simple three-digit number that hides a complex formula. Many things can affect your credit score, including debt, late payments and new credit applications. Applying for a mortgage will affect your credit score, but only by a few points. Multiple credit applications can have a more serious effect. However, this should not stop you from shopping around for the best rate. Credit Scores A credit score is a summary of all...

Tuesday, September 24, 2013

How to Watch Your Credit Score

Watch your credit scores by ordering new copies of your credit reports every few months. The reports list your credit score, along with information about your accounts, including balances, your payment history and your available amount of credit. Regularly watching your credit scores is a fundamental part of both credit repair and sound financial management. Instructions 1 Order a free credit report. The website Annual Credit Report makes...

Does the Color of Your Car Affect Your Automobile Insurance?

The color you select for your new car is a personal choice based on your own particular preferences. You have every right to choose anything from gray to bright hot pink. But you may wonder if the color choice you make could affect the amount of your automobile insurance policy premium. Significance of Auto Insurance Auto insurance is an asset to a property owner. It provides the owner of a car with a backup solution in case of an incident...

Does Paying My Bills on Time Build Good Credit?

Your credit score is probably the most significant three-digit number in your life, according to MSN Money. Luckily, there are simple ways you can improve your credit score each month. The three major credit bureaus use software created by the Fair Isaac Corporation to assess your credit risk. The calculated result is your FICO score. One of the largest factors affecting your score is your payment history. Payment History Payment history is the largest factor affecting your FICO score. When you pay your bills on time, you demonstrate to...

Monday, September 23, 2013

Fixing Credit Scores

Credit scores fall between 350 and 850, and having a score within the 700 and 800 range opens the door to mortgage loans, auto loans and low rates on these loans. Fixing credit scores involve consistently good credit habits. You can learn how to manage your credit better and watch your credit score gradually improve. Paying Bills Paying bills late is a surefire way to destroy your credit score and receive loan and credit rejections. Timeliness is one of the biggest factors that affect scoring (makes up 35 percent of your score). Missing...

I Paid My Debt, When Will It Show on My Credit Report?

Creditors normally make monthly reports to credit reporting agencies. Consequently, if you settle an outstanding debt, your creditor should notify the credit reporting agencies of the payoff within the next 30 days. However, credit bureaus typically update credit reports once a month, so depending on when the bureau receives the information on the settled debt, it could take 45 days or more before your credit report reflects the debt as having been paid. Consumer Protection Credit bureaus are required to update consumer credit files when...

Sunday, September 22, 2013

How do I Fix Credit Issues & Raise Credit Scores?

Financial difficulty quickly takes a toll on your credit score. Approximately 30 million people in the United States are struggling with credit issues that interfere with securing affordable credit. If you have poor credit, it's possible to turn your situation around. Raising a credit score won't happen instantly, but over time it's very realistic to restore your credit. Instructions 1 Order a credit report. The first step in fixing credit...

Why Are Credit Scores Different Between Agencies?

Your credit score is calculated by the credit reporting agencies from the information in your credit report. Your score may differ depending on which credit reporting agency is providing it. Facts Some of your creditors may not report your accounts to all three credit bureaus. Because of this, your credit reports may not all reflect identical information and your scores may vary. Types Each credit bureau offers two scores: a FICO score...

What Comprises My FICO Score?

The Fair Isaac Corporation (FICO) is one of several companies that calculates consumer credit scores. Known as a FICO score, this three-digit number is used by lenders, employers and other organizations to determine your credit risk. Your FICO score is calculated based on a number of factors. Knowing the composition of your score can help you improve your credit over time and develop healthy financial habits. Payment History Your credit score...

How Can Someone Increase a Credit Score?

Fair Isaac Corp. (FICO) introduced the first credit score. The Experian, Equifax and TransUnion credit bureaus followed along with their own scores. All of these companies use similar formulas, so you can increase your score if you know which financial actions have the biggest influence on that important three-digit number. A good score gives you better access to credit cards, loans, insurance policies and even employment. Factors MyFICO, the Fair Isaac Corp. website, explains that scoring formulas use five different categories of information....

Friday, September 20, 2013

How Does Having Unused Credit Cards Hurt Your Credit Score?

You might think not using a credit card account makes you a better borrower, because you do not need items on credit, but it can do significant damage to your credit score. While the credit scoring formula does not punish you for failing to use a credit card, letting an account go dormant affects factors that do going into credit scoring. Identification A nil balance never hurts your score. However, if you own a credit card you have not used...

Thursday, September 19, 2013

How to Read a FICO Credit Score

When you establish your credit history you are assigned a FICO score or credit score. (FICO stands for Fair Isaac and Company, the company that developed the credit scoring system used by U.S. financial firms.) A FICO score is used by lenders to determine the likelihood that you will default on a loan -- that is, your risk factor. The lower your FICO score, the more risk you pose for a lender. A low FICO score can cause a lender to charge you a higher interest rate for credit cards, mortgages and automobile loans. Instructions 1 Understand...

Secrets to Raising Your Credit Score

A good credit score is worth its weight in gold. A higher score leads to faster loan approvals and lower interest rates. In today's competitive climate, a good credit score can be the difference between receiving a job offer or a rejection letter. Most Americans want a higher score because it opens financial doors for them, but it requires a balancing act of several factors. Below are some tips for raising your credit score. Pay Your Bills On...

How to Check All Three Credit Scores

Your credit scores for each credit reporting bureau may be different. Lenders do not necessarily report to each bureau. You may have a better score with one bureau than another. It's important to check all three credit scores regularly. You then have the opportunity to correct any errors, and see areas where improvements could be made, resulting in a higher credit score. You can get your three credit scores (TransUnion, Equifax & Experian) for...

Monday, September 16, 2013

Does Being a Cosigner Hurt Your FHA Credit?

You may be asked to help a family member or friend by co-signing for a loan or other credit-based account if you have an excellent credit score. Co-signing helps the other person open an account even if he has no credit history or has past-due bills or other issues on his credit reports. Be careful when agreeing to co-sign because your own credit can get hurt, keeping you from getting your own accounts and loans like FHA financing. Definition...

Friday, September 13, 2013

The Effect of Auto Inquiries on FICO

Although most credit inquiries make up a small part of an individual's credit score, consumers applying for an auto loan with several different lenders should be familiar with how these types of inquiries will affect their FICO score. The Facts According to the Fair Isaac Corporation, numerous credit inquiries in a short period of time may lower an individual's credit score. However, FICO recognizes a consumer's search for a low interest...

Thursday, September 12, 2013

How to Contact Transunion Credit Reporting

TransUnion is a credit reporting agency founded in 1968. As of 2009, it maintains credit histories on about 500 million consumers worldwide, according to the company website. Credit histories shape your credit score. Credit scores impact whether you will be approved for a loan, a housing rental or auto purchase. If you feel that something is included on your TransUnion credit report due to an error in accurate information, you should submit a dispute to TransUnion. If you are unsatisfied with the result of your dispute, you can attach a...

Credit Rating Amount Owed as Percentage of Available Credit

A credit rating considers five major areas of credit use: payment history, amounts owed, length of credit history, types of credit and new credit. One of the major calculations that affects your score in the amounts owed area is the percentage of your available credit that you currently owe on credit cards, also known as your credit utilization. Utilization Basics Credit scores consider not only your utilization on each credit card but also your overall utilization across all cards. Calculate utilization by dividing a card balance by the...

Monday, September 9, 2013

Does an HOA Lien Affect Your Credit Score?

Many communities have a homeowners' association, or HOA, that manages the common grounds and notifies residents who are in violation of the community rules and regulations. Although those serving on the HOA board are usually volunteers, homeowners pay monthly dues to cover taxes, maintenance and improvement of the common areas. This payment is separate from your mortgage, but still a legal obligation. Some owners worry that an HOA lien will affect...

When I Rented a Car, Did It Affect My Credit Report?

Renting a car is one of those weird things that can damage a credit score, depending on the payment method used and the policy of the rental car firm. A car rental typically only requires a credit check when the customer pays by a method other than credit card. While the inquiry from a car rental can lower a credit score, it probably won't be the reason for a rejection of credit. Identification Car rental firms almost always only perform a credit check when a customer reserves the rental with his debit card. This happens because debit cards...

Help to Build Credit

Some people have no credit history, making it difficult to get started in the credit game. Other consumers may have poor credit but want to build credit in order to land a better credit score. Learning options for building credit can help you decide which credit solutions work best in your situation. Building credit isn't difficult; it does take patience and careful financial planning. Establish Baseline Consumers with poor credit need to...

Thursday, September 5, 2013

How Much Will My Credit Score Improve Once My Student Loans Are Out of Default?

About 7 percent of all student loans were in default in 2008, according to the Department of Education. You must pay student loans in almost any circumstance; defaulting on student loans damages the student's credit and it is nearly impossible to wipe them out in bankruptcy. Once you become current on your student loans expect a year or longer triage to get those points back. Identification Your score starts improving immediately after catching up on your student loan payments, but not by a whole lot the first month. Missed payments stay...

Tuesday, September 3, 2013

What Affects a Credit Report Score?

Banks, credit companies and other businesses use your credit score to determine how reliable you are in repaying debts. If you have a higher score, you may qualify for lower interest rates and thus lower monthly payments. You'll also be more likely to be approved when applying for a loan, such as a home mortgage. A number of factors directly affect your credit report score. Bill Payments Whether your bills are paid on time significantly affects...

Monday, September 2, 2013

How to Remove Negative Items From Credit

The Federal Trade Commission gives you the legal right to dispute any item on your credit report that you believe contains inaccurate information. A study in 2004 found that 79 percent of credit reports contained errors. (See Resources) Negative accounts cannot be legally removed unless the account has incorrect details or is not your account. Common errors include date account opened, balance, payment amount, late payment, type of account, status...