What Causes Credit Reports to Decline?

A credit score is a three-digit number used to evaluate your creditworthiness. A credit score is determined based on information included in a credit report. Each of the major credit reporting agencies uses a unique proprietary formula for converting the raw data in your report into a credit score, but they are all based on the FICO score so the same factors are generally used. In other words, certain activities or situations in your credit report...

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How to Delete Old Inquiries in TransUnion

Make a point to delete inquiries on your credit report to improve your credit score. Credit inquiries on your TransUnion credit report can have a negative impact on your credit score. Credit inquiries from creditors to whom you have applied will have a greater impact on your credit score than inquiries from an existing creditor. Most credit inquiries remain on your report for only two years. However, if you notice an inquiry on your report...

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What Do Credit Report Ratings Mean?

Your three-digit credit score could separate you from other candidates when applying for a job and cost you thousands of dollars over your lifetime on loans and other services. Credit scores are a mathematical analysis of your riskiness as a borrower. If you take the time to understand what goes into a credit rating, you can use it to your advantage. Identification A rating from one of the three major credit rating companies---Equifax, Experian and TransUnion---quantifies how likely you are to default on a loan within the next two years,...

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How to Fix My Credit Fast

If you're thinking about buying a new car or obtaining a mortgage loan in the near future, it doesn't hurt to improve your credit score and receive the best rate possible. You can take several measures to boost your score fast. Your credit rating says a lot about your ability to handle debt and credit wisely. Lenders carefully review credit files before issuing loan approval. With these fast credit fixes, you can raise your credit rating and improve...

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How Are FICO Scores Calculated for Married Couples?

Calculating Individual Scores The FICO score is the single most frequently used measure of credit risk in the entire world. It combines several factors to create a single scaled score for each individual between 300 and 850, with the higher numbers signifying better overall credit. The largest component in the FICO score is delinquent payments. More than one third of the credit rating is determined by whether a borrower has consistently made payments on time, or, if he has late payments, how many scheduled payments have been missed and how...

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How Do You Get Rid of Credit Card Charge-Offs?

A credit card charge-off means that the bank that issued the credit card has written off the debt because it does not expect to receive payment, even in the future. If you have a debt that has been reported as a charge-off, this is a big red flag for lenders who examine your credit report when you apply for any kind of credit, from a mortgage to a car loan to a credit card. Removing charge-offs from your credit history is one step you can take to...

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Credit History & Medical Bills

Medical bills affect your credit history under certain circumstances, even though they do not involve revolving credit lines or installment loan payments. Walecia Konrad, a writer for "The New York Times," warns that such bills sometimes pop up on your credit records while your claims are still being processed by your insurance company. You can sometimes prevent or mitigate damage to your credit rating caused by these accounts. Initial Reporting Most of the accounts on your TransUnion, Experian and Equifax credit reports are directly credit-related....

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How to Restore My Credit Rating

Your credit rating is very important to your financial life. It determines whether you are approved for loans, as well as the interest rates you get. Your credit can even determine your insurance premiums and whether or not you get a job. Mistakes can lead to a poor credit rating that can become costly. The good news is that you can restore your good credit if you practice financial discipline. Instructions 1 Cut expenses and live within your means. Before you can begin restoring your credit rating, you need to establish a budget that allows...

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Who Checks Credit Scores?

Companies use credit scores to make financial predictions about potential customers. The scores are seen as indicators of whether a consumer will repay a loan or file an insurance claim. However, job seekers also may find that their credit ratings are being scrutinized if credit checks are part of a company's hiring process. Creditors and Lenders Your financial decisions and management of your credit and loan accounts mostly determine who checks your credit score. Creditors and lenders obtain copies of your credit reports and check your...

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How Does Credit Scoring Work?

A credit score is a numerical measure that gauges your creditworthiness. Mortgage lenders, automotive companies, credit card issuers and retail stores will check your credit score before approving your application for credit. Having a bad credit score can keep you from getting a loan or credit card, while a good score will allow you to get lenders' best interest rates and terms. Background TransUnion, Experian and Equifax -- the three major credit bureaus in the US -- each calculate credit scores using the Fair Isaac Company's "FICO" scoring...

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How to Appeal a Credit Report

A credit report can contain incorrect credit information for any number of reasons. You can appeal credit information that you believe is incorrect. The process takes some time to allow for a full investigation. Based on the findings of that investigation, the credit reporting bureau to which you report the item will make a decision regarding the merit of your claims. Instructions 1 Order your free credit report. Phone, mail and Internet orders are accepted. Charges do not apply; however, you are only eligible to receive one free copy of...

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How to Pay Off Derogatory Items on a Credit Report and Increase the Score?

Charge-offs, past-due accounts and other derogatory information are bad for your credit scores. Excellent scores that were once in the upper 700s can fall to the low 500s or even lower because of negative entries. The best way to reverse the free fall is to clean up the bad marks while continuing to pay everything else on time. Instructions 1 Get a copy of your credit report. Free reports are available from the website Annual Credit Report,...

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What Impact Does Closing a Credit Card Account Have on a FICO Score?

Lenders depend on FICO scores more than any other credit score when evaluating your creditworthiness. Most of your financial transactions that end up on your credit report impact your FICO score in some way. Cancelling a credit card is no exception. While cancelling your credit card account may seem to be a logical step after paying off or transferring the card balance, doing so could damage your FICO scores. Credit Limit Elimination Cancelling...

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Does Leasing a Vehicle Affect the Credit Score the Same as Purchasing a Car?

Leasing usually is the most expensive way to purchase a vehicle, and may ding to your credit rating. Purchasing a car can ding your credit rating too, depending on how you finance it. However, you can work a lease --- and sometimes and outright purchase --- to your advantage so that it improves your creditworthiness. Identification Leasing a vehicle almost always affects your credit score, because the dealer reports the account to the credit reporting bureaus as a loan. Purchasing a car only affects your credit rating when you use a loan...

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Does It Hurt Your Credit to Have a Lot of Bank Accounts?

There is no limit to the number of bank accounts a person can have, so some people end up with many different accounts open at the same time. Normally, these accounts do not relate to your credit score. However, they may connect to your credit score under certain circumstances. The Misconception People typically are confused about whether a large number of bank accounts hurts your credit score because they do not know for sure whether banks...

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Financial Advice About Credit

Most adults will establish credit during their early adult years, and building a credit history allows these individuals to get financing to purchase a home or automobile. Sadly, some consumers do not understand the ins and outs of credit. As a result, they make poor credit decisions that ultimately destroy their personal credit score. Debt Relief Debt is a way of life, especially if you decide to buy a home or car. However, even if you can't live your days completely debt-free, you can aim to reduce balances on unsecured debts such as...

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Credit Improvement Solutions

A tarnished credit score can cost you more in interest payments and increase the likelihood of a credit rejection. This can stop mortgage approvals and approvals for a car loan. Fortunately, effective solutions can help improve a bad credit score and make you a desirable candidate for financing. Control Spending With Credit Cards The way you use credit cards can either help or hurt your credit score. Using credit cards and then paying off the balance each month helps build a good credit score because debts remain low and you satisfy debts...

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Advice on Staying Out of Credit Trouble

Staying clear of credit trouble will help you save money and give you the relief of knowing that you have good credit. Don't let setbacks deter you, because you can be free of bad credit. Even if you have collection items currently affecting your credit score, there is action that you can follow to stay clear of credit trouble in the future. Ordering a copy of your credit report and checking it periodically can help you stay informed of your credit status. Credit Cards Don't be enticed by credit card offers that seem too good to be true....

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Good Ways to Rebuild Your Credit

A financial disaster that destroys your credit rating might make you sheepish about using credit again. This is an example of the wrong way to rebuild your financial profile. The best way to rebuild credit involves obtaining a new credit account and avoiding your past mistakes. Misconception Never using credit again because you messed up your credit rating before won't do any good and may even lower your score, because it does not build new history on your report, according to Liz Weston of MSN Money Central. Opening a new account and showing...

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How Inquiries Affect Credit Score Per Inquiry

Of all the negative items a consumer can have on a credit report, credit inquiries -- when a third-party or the consumer requests a credit file from one of the national credit bureaus -- usually do the least amount of damage. That doesn't mean they have no effect. Having too many inquiries on your credit report can cause a low credit score and rejection for a loan. Not all inquiries cause damage, but even those that do not can prevent access to credit. Identification Each inquiry does no more than five points of damage in the FICO system,...

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Quick Credit Score Fix

Fixing a credit score quickly is useful when trying to qualify for a home loan or auto loan. A good score not only helps approvals, but the best rating gets you the lowest interest rate on financing. If you need to boost your credit score fast, you can follow several effective tips. Lower Credit Utilization Utilization refers to the balance on credit cards in relation to the actual credit limit. People who max out their credit cards or keep the balances close to the limit have a high utilization, and this can decrease credit scores. Paying...

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What Factors Will Make the Rate Higher With Lower FICO Scores?

Lenders will often charge you a higher interest rate or deny you credit for a loan or credit card based mainly on a low FICO score. When you apply for larger, longer-term loans such as a mortgage, other credit reporting factors may affect your interest rate and loan approval. About FICO Scores The three major credit bureaus in the U.S., Experian, TransUnion and Equifax use credit-scoring methods developed by the Fair Isaac Corporation or FICO. These methods may vary slightly from one credit bureau to the next. This often causes your credit...

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Will It Affect Me if My Spouse Stops Paying a Credit Card?

If your spouse stops making minimum payments on his credit card, his credit score will suffer as the account becomes further delinquent and is eventually charged off by the bank that issued the credit card. If you are not listed on the credit card, the lack of payment should not have an impact on your credit score. However, you could be affected if the bank attempts to collect on the debt by placing liens against property you and your spouse hold...

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How Much Does Satisfying a Judgment Improve Your Credit Score?

Your credit score takes many financial activities into account. All your credit-related accounts, such as major credit cards, gasoline and retail accounts, mortgages and other loans, appear in detail, including the balances and payment histories. This data figures into your credit score, as does any related court actions. Definition A judgment hurts your credit score because it results from long-term unpaid bills. The Bankrate financial information website explains that credit card issuers, finance companies and other lenders initially...

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Is a Credit Report an Asset?

A credit report is not an asset in the traditional sense, like a house, but you can leverage it like you would an asset. Creditors make most of their decisions using a mathematical formula called the FICO formula. If your credit report contains only positive information, this could make you a great customer to lenders. Identification Going by the traditional definition, a credit report is not an asset. Assets hold some intrinsic value and can be liquidated or sold for cash. Some common assets are cars, equipment, stock and cash. Credit...

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Three Easy Ways to Rebuild Your Credit

A person's credit score is a numerical indicator of his past credit history. It is a number used by lenders to determine a potential borrower's ability and willingness to repay a new debt. The higher the credit score, the easier it is for a borrower to get a loan with excellent terms. Once a credit score is lowered by negative credit history, a few steps can be taken to help raise the score, or rebuild credit. Check Your Credit Report AnnualCreditReport.com...

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How to Compare TransUnion Credit Scores

The three national credit bureaus---Experian, Equifax and TransUnion---each use slightly different versions of the FICO scoring method. If you have recently applied for a home or car loan, you may have noticed differences in your credit scores from each of the credit reporting bureaus. Your scores can vary due to different calculation formulas, and not all creditors report your activity to all three bureaus, so each of your credit reports may contain...

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When Do Credit Card Companies Report to Credit Agencies?

When you open a credit card account, the card issuer reports this information to one or more credit bureaus. When you make or miss a payment, the issuer reports this as well. Different credit card companies use different credit bureaus and report at different times. In most cases, you should see a new account appear on your credit report within a month. In some cases, it takes longer. Credit Bureaus There are three main credit bureaus in...

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