Q: What is used to calculate your credit score?
A: Credit Scores are calculated based on the information that appears on an individual’s credit report the day your score is compiled. That’s why credit scores can vary , depending on when it is calculated. If you recently made a large payment to a credit card, then your score will likely be higher. Or, or you went on a spending binge, then your score will likely be lower. Other factors which influence credit scores include the number of inquiries from lenders, how long you have been credit active, and your payment history.

Q: How long do bankruptcies stay on credit reports?
A: Declaring bankruptcy makes a long lasting impact on credit reports. When a Chapter 7 bankruptcy is filed, most, if not all, debts are voided. This type of bankruptcy can stay on your report for up to 10 years. However, Chapter 13 bankruptcy, in which the debtor must repay some or all of the debt through a court-approved payment plan, remains on your credit report for 7 years.

Q: Can an employer get a copy of your credit report without your permission?
A: The Fair Credit Reporting Act (FCRA) restricts access to your credit file for your privacy. A prospective employer can only get a copy of your credit report if you give your permission.

Have you been deprived of getting a loan, mortgage or credit card?
Do you know how you can increase your credit score?

Your credit score can make or break your way of living or lifestyle in a lot of ways. Maintaining or keeping a good credit score, especially in times of economic hardships, is really quite extraordinary.

Most lenders looks into the credit score of those applying for loans, mortgage, or for credit cards. As it is part of the business, they want to know and double check the capability of the debtor to pay for the loan being applied for. The lenders are taking a lot of risk when they give somebody the use of their money.

Here are just some of the helpful guidelines in increasing ones credit score:
1. Avoid applying for credit much too frequently. Numerous credit applications will mean inquiry of ones file. A lot of new credit applications can greatly affect and lower the score.

2. Always pay all statement of accounts on time. Paying bills behind of schedule are always recorded in the credit report and can reflect a not so good paying habit. This will definitely lower the credit score.

3. Avoid high outstanding balance or debit in ones credit card and other existing credit can drop off the credit score. As much as possible, keep those debts low.

4. Catch up on missed payments. Its never too late to pay the bill.

5. Avoid closing unused accounts or credit cards. This will not help increase the score.

6. Avoid opening unnecessary accounts with the notion of increasing ones credit score by having a brand new credit card. This strategy will actually lower the score.

7. Having too few or no loan and credit account in ones name, is also measured as a credit risk to lenders. Maintaining a small number of credit cards showing a good credit standing, having a reasonable balances and limits, can help increase the credit score.

The rate of credit scores will be the deciding factor in the approval of a loan, the extent or amount of credit that will be offered, and the interest rate that will be added to the loan for the period or duration of the agreement.

Credit scores also significantly affect the rates or charges one will incur for the monthly payments. A low score will mean paying a higher interest rate on the borrowed money.

Also, if one wants to create a difference in applying for insurance premiums and employment, debtors must strive to increase their credit scores.

Some employment agencies, firms and industries check the credit scores of applicants and would-be employees before deciding on whether or not they would hire them. They would also look at credit activities, and employment and payment history.

Recently, most insurance companies do a background check especially on the credit scores of their clienteles. Through this, they will determine the cost of the insurance premiums, housing premiums, auto insurance, and others.

Credit reports can provide insights to employers and insurance agents a run-down summary about the attitude and behavior of a person.

Discipline is an important tool to maintain a good credit score. Increasing ones credit score takes time. It cant be quick and instant.

The better the person deals with his or her credit accounts to have a good and high credit score, the more assurance of saving more money in the bank there is.