Get Your Credit Report
You can ask each credit reference agency to give you a free copy of the credit report they hold about you. This is called your statutory credit report. Hover over the country where you have taken out credit and click on the logo of the ACCIS member that provides credit reports in that country. You will be taken to the dedicated area of their website.
Note: ACCIS cannot accept any responsibility or liability for the information provided on the website of its members, or for the use to which it is put to or for any resulting loss.
What Is A Fico Score
Many aspects of life are affected by credit ratings. They may:
- Determine whether a lender approves a new loan.
- Influence your interest rates and fees on the loan.
- Be reviewed by employers before they offer you a new job.
- Be used by landlords when deciding whether to rent to you.
- Determine your student loan eligibility, including most private loans.
- Be reviewed by insurance companies when you apply for many types of insurance, including car or homeowners insurance.
How To Report And Fix Any Errors On Your File
If you do spot any mistakes, challenge them by reporting them to the credit reference agency.
They have 28 days to remove the information or tell you why they dont agree with you.
During that time, the mistake will be marked as disputed and lenders arent allowed to rely on it when assessing your credit rating.
Its also best to speak directly with the credit provider you believe is responsible for the incorrect entry.
Negative information in your name usually stays on your credit report for six years and cant be removed sooner if its accurate. However, if there were good reasons why you fell behind with payments that no longer apply, such as not being able to work during a period of illness, you can add a note to your credit report to explain this. This note is called a Notice of Correction and can be up to 200 words long
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Access To Credit Reports
- If you are over 18 and you have taken out credit or borrowed money before, . In a limited number of European countries e.g. Spain, lenders only provide local credit reference agencies with information pertaining to unfulfilled financial obligations, such as missed or late payments, judgment orders on debts, and other adverse or negative information. So, in those countries, credit reference agencies will not hold any information about you even if you have taken out credit and have repaid on-time.
- You can request your credit history via a basic statutory report for free. You should receive it within one month.
- It is a good idea to check your report every now and then but the main reasons for checking it include: if you are changing job or moving home if you are applying for credit if you are worried about ID fraud.
- Getting your credit report will not hurt your credit score. When you look at your own credit history, that search is not visible to companies on your credit report.
Get A Cell Phone On Contract With No Security Deposit
Another drawback of having a bad credit score is that cell phone service providers may not give you a contract. Instead, youll have to choose one of those pay-as-you-go plans that have more expensive phones. At a minimum, you might have to pay extra on your contract until you’ve established yourself with the provider. People with good credit avoid paying a security deposit and may receive a discounted purchase price on the latest phones by signing a contract.
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Improve Your Credit Score To Secure Your Financial Future
There is hope if you have a poor score. Begin with taking intentional action to boost up your credit in the following ways:
- Obtain a copy of your credit report as soon as possible.
- Make sure all your account details are accurately documented
- In the event of any minor or major errors, notify them immediately to the credit bureaus
- Limit your credit card usage to below 30% at all times
- Mix up your various credit products
- Determine to pay off your debts with a set standard amount every month
- Off-set your monthly utility bills promptly
- Avoid wasteful credit purchases
Final Words
Your score considerably contributes to your financial security, so the earlier you begin working to boost it, the better. Its possible, and its best to start right away. By being alert with your credit, you will have the opportunity to obtain loans to increase your income. Employers will rely on you to take on sensitive roles in their companies, and you will spend less on interest rates.
This will lead to fewer expenses, and you get to retain money for future investments and savings. Towards retirement, many people will be cutting down costs and adjusting to an undesirable way of life to survive. If youre serious about aiming for a high credit score your financial future will be secure and you will retire comfortably.
At the end of the day, you want to keep growing your wealth to the level where it can last beyond you. Use these tips to secure your financial future.
Can Personal Loans Lower Your Credit Score
- When you submit a loan application, the lender will make a hard credit pull of your credit report to assess your creditworthiness. If there are multiple hard inquiries into your report, your credit score may suffer because lenders may interpret this as multiple loans being taken out.
- A hard credit inquiry may negatively impact your credit score and can remain on your credit report for up to two years.
- Regularly making late payments or missing payments altogether.
- Using a high percentage of your available credit.
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How Can I Create Healthy Habits With My Credit Score
The first step is to check at least once a year to make sure you are comfortable with your current credit score.
If you are planning to request a large credit line, you want to check your score a few months prior and see how you can start improving it. If you are currently trying to increase your credit score, its recommended that you check it often to see if your actions are making a difference.
If you feel you need help from a professional to improve your credit score, a good place to start is the National Association of Personal Financial Advisors search engine for registered advisors. If you notice a mistake in your credit report, you can dispute it by contacting the respective credit reporting agencies.
Being aware of your credit score and maintaining healthy habits around it is crucial to having a good credit history. However, it is important for people to know that their financial worth shouldnt be attached to their credit score, Myers said.
It doesnt mean that youre a bad person or terrible with money and that you need to constantly beat yourself up, she said.
Follow all of APs financial wellness coverage at: https://apnews.com/hub/financial-wellness
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Does Collecting Unemployment Affect Your Credit
If you lose your job, filing for unemployment benefits can help keep cash flowing while you get back on your feet. But many people ask: Does collecting unemployment affect your credit?
Fortunately, the answer is no: filing for and collecting unemployment income does not affect credit scores directly. That said, losing your job can impact credit scores in other ways.
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How Does Debt Relief Work
Debt relief is a program offered by third-party debt relief companies to borrowers struggling to make debt payments. Typically, these companies encourage borrowers to use money meant for debt repayment for savings or for other bills and obligations.
While the borrower is saving, the company attempts to negotiate with creditors for lower interest rates and monthly payments on the remaining amount is owed. In theory, this creates a more manageable payment plan for the borrower and a full repayment for the lender.
However, these programs do not always go as planned. Many times debt relief companies are not able to negotiate a lower payment for all of your debts. This can have a drastic effect on both your credit and your financial security:
- You may end up paying large fees to the third-party company
- You may incur late fees on the debts you owe
- You may burn bridges with future creditors
- You may have to pay fees in a third-party bank account
- You may have a debt collection lawsuit filed against you
- You may have a negative impact on your credit score
So How Does My Credit Score Affect My Personal Loan Application
As weve covered, a credit score is more than just a number. Its a measure of your current standing in the eyes of financial institutions, and how likely you are to repay a loan or credit card in the future.
With this information, lenders can determine:
- Whether you can borrow.
- How much you can borrow.
- The interest rate that youll pay.
Just like a good review might mean youre more likely to buy a product or watch a movie, a high credit score instills confidence in a lender. They can be confident that youre reliable, that you make payments on-time, and that youll see your loan through to completion.
The best part? In return, youll have access to a larger personal loan at a lower interest rate.
On the other hand, a low credit score will see you paying a higher interest rate and facing limitations on the amount lenders will offer you.
But it isnt all financial doom and gloom!
Your credit score is an important factor, but its just one that lenders consider when looking through your application. They also look at:
- Your current employment status.
- The length of your employment
- Monthly income & expenses.
All of these factors play their part in whether your application is approved, as well as the rate youre offered.
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The Bad News: Certain Unpaid Debts Can Result In Garnishment
The U.S. government generally considers federal payments untouchable from creditors unless the government itself is the creditor. If you owe back taxes or otherwise owe the federal government money, it may step in and garnish as much as 15% of your Social Security payments. The same applies if you default on a federal student loan. Court-ordered alimony or child support payments may garnish as much as 50% to 65% of your Social Security payments.
Generally speaking, other creditors, such as collections agencies, dont have the right to take your Social Security payments. But there are some tricky legal exceptions that may expose your payments to garnishment. For example, if you transfer your Social Security money to a separate bank account or dont spend it within two months of receipt, that money can sometimes be fair game for creditors with a court judgment for garnishment. As this area can get confusing legally in a hurry, its best to consult with an attorney if you find yourself in this situation.
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Playing The Balance Transfer Game
Transferring high-interest balances to a new credit card that extends 0% APR for a limited time can absolutely help you save money and pay down debt faster, but youâll pay the price if you get stuck in a situation where youâre simply transferring balances from one card to another every year.
Not only will you likely take a hit to your credit score for opening a new credit card, but your utilization could increase if you transfer your balances over and use your old credit card to rack up more debt over time.
Beyond an impact to your credit score, note that most balance transfer credit cards charge a balance transfer fee of 3% or 5% of your balance in order to manage the transaction. So while these offers do let you save on interest along the way, but they are far from âfree.â
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Landing And Keeping A Job
Employers may want to know that youre financially responsible and dont have burdensome debts that could affect your judgment. Even if youre already employed, your credit could impact your ability to get a promotion or keep your job, particularly if it requires a security clearance.
Your credit score does not impact your employment, though thats a common myth but your credit report might. The important distinction is that employers may be able to review your credit report, but the version they receive doesnt come with a credit score. It also omits other pieces of information, such as your date of birth and account numbers, because employers dont need this data to make a hiring decision.
A company cant pull your credit as part of an employment check unless you give written consent, and some states outlaw the practice altogether.
Forgetting To Pay Your Bills On Time
If you think paying your credit card bill late every once in a while isnât a big deal, youâre definitely wrong. Believe it or not, but your payment history is the most important factor that makes up your FICO score, making an impact of 35%. This means a single late payment could cause serious damage to your score, but it also means multiple late payments could harm it even more.
The best thing you can do for your credit is always pay your bills early or at least on time every single month. If you donât take bills seriously and you simply pay them when you get around to it, youâll likely regret it.
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Improve Your Credit Score
- Make payments on time: This goes for loan repayments and bill payments.
- Pay credit card in full: Do this every month to build good credit.
- Check your credit scores: You need to check all three credit reporting companies and make sure the information they have is accurate. Ask for any errors to be fixed. If you are turned down for a loan, check your credit history and fix any errors before applying for more loans.
- Don’t share bills: Make sure your name isn’t on any bills with other people, eg if you live with flatmates and the power bill has all of your names on it, your credit score could drop if your flatmates don’t pay the bills.
- Limit credit applications: Every timeyou apply for credit, the lender will do a credit check. Each check negatively impacts your score. Only apply for what you really need.
- Limit payday loans and quick finance options: Seeing these on your credit history can make lenders think you aren’t good with money.
- Cancel unused credit cards and accounts: Multiple sources of credit don’t look good on your credit history. If your credit card/store card isn’t getting used, cancel it .
- Wait for the time limits: Items on your credit history stick around for a set amount of time, four to five years. If you want to apply for new credit, wait until the old history disappears off your credit report, if possible.
No credit is almost as bad as poor credit. It gives a future lender no information about you as a risk, which might lead them to turn you down.
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Why Do Hard Pulls Affect A Credit Score
Inquiries about your credit history tend to signal some kind of financial event, where you’re in need of money.
“Depending on your unique credit history, hard inquiries could indicate different things to different lenders,” an Equifax representative told CNET. “Recent hard inquiries on your credit report tell a lender that you are currently shopping for new credit.”
To maintain a consistent score, you’ll need to manage your hard pulls. That means spacing requests out rather than making multiple applications simultaneously.
“A best practice is to do your research ahead of time,” Equifax said. “Learn whether the type of credit you’re applying for can have its hard inquiries treated as a single inquiry. Check your credit report before getting quotes to understand what information is reported in your credit scores and reports. The more you know about your credit standing and how many hard inquiries you currently have, the more accurately you can evaluate whether another hard inquiry will impact your credit portfolio.”