Dave "The Credit Fixer"

  A collection account can create serious problems for your credit profile. Collections generally occur when a debt becomes significantly delinquent and the original creditor sends or sells the account to a collection agency. But seeing a collection on your credit report doesn't mean you should immediately pay it, dispute it, or ignore it. First, understand exactly what is being reported. What Is a Collection Account? A collection can occur when an unpaid debt is transferred or sold to a company attempting to collect the balance. Collections can involve many types of obligations, including: Credit cards Personal loans Medical bills Utilities Phone or internet services Other unpaid accounts The original account and a collection account may sometimes both appear on your credit reports, depending on the circumstances. 1. Collections Can Affect Your Credit Scores Collection accounts are negative credit information and may affect credit scores. The actual effect varies ...

  Your credit score is one of the most recognized numbers in personal finance. Lenders may use credit scores when deciding whether to approve you for a credit card, auto loan, mortgage, personal loan, or other financing. Your credit can also affect the terms you're offered. But a credit score isn't just a random number. It's calculated using information contained in your credit reports, and understanding what influences that number can help you make better credit decisions. What Is a Credit Score? A credit score is generally a three-digit number designed to help lenders evaluate credit risk. Different scoring models exist, including FICO® and VantageScore® , and lenders don't necessarily use the same score or version. That's why the score you see through one service may not exactly match the score a lender sees. Your score can also differ between credit bureaus because the information contained in your Experian, Equifax, and TransUnion reports may not be i...

  Everyone has to start somewhere. If you're new to credit—or you're trying to establish a credit history for the first time—the process can seem confusing. The good news is that building credit doesn't require dozens of accounts or large amounts of debt. It requires the right accounts, responsible use, and time. Here's how to start building a strong credit foundation. Step 1: Start With the Basics Before opening anything, understand what you're trying to build. Your credit reports contain information about how you've managed credit accounts. Credit scoring models use information from those reports to calculate credit scores. If you have little or no credit history, lenders simply have less information available to evaluate. The solution isn't to apply everywhere. Start small and build a positive history. Step 2: Consider a Secured Credit Card A secured credit card can be one option for establishing revolving credit. You typically provide a refun...

  Paying off a loan feels great. You've made the payments, eliminated the balance, and removed another monthly obligation from your budget. Financially, that's usually something worth celebrating. But then something confusing can happen: Your credit score may change after the loan is paid off—and sometimes it can even drop temporarily. That doesn't mean paying off the loan was a mistake. It means credit scoring models evaluate several pieces of your overall credit profile, and closing an installment account can change some of those pieces. What Happens When a Loan Is Paid Off? When you make the final payment on an installment loan, the lender generally updates the account to show a zero balance and a status such as paid or paid as agreed , assuming the account was handled properly. The account doesn't necessarily disappear from your credit reports. A closed account in good standing may continue appearing on your credit reports for years, allowing its positive ...