Questions about credit

A report is built from what companies report, not from one particular number. Before you apply, ask the bank or credit union whether it accepts an ITIN or another ID on its application and whether it reports your payments to the three bureaus. The second part is what makes a history exist.

The federal sources we reviewed do not give a fixed timeline. The CFPB says building good credit takes time and there are no shortcuts: the longer you have credit and pay on time, the more information there is to show you are a good risk. What you control from day one is paying on time and using little of your limit.

No. Requesting your own report is not an inquiry about new credit and has no effect on your score. The inquiries that do count are hard inquiries: a lender's check when you apply for credit.

The CFPB does not rank one above the other: it describes both as ways to start. A secured card asks for a deposit up front, and its fees and interest can be high; a credit-builder loan holds your money as savings while you make small payments, usually over six to 24 months. In both, what builds history is that they report to the three bureaus and that you pay on time.

According to the CFPB, card issuers usually report authorized users' status to the bureaus, and being one generally does not obligate you to pay the debt. The federal sources we reviewed do not say how much that weighs in your score: ask the issuer whether it reports, and check your reports afterward.

Little. The experts the CFPB cites advise using no more than 30% of your total credit limit. And you do not need to carry a balance to have a good score: paying the balance in full each month helps get you the best scores and saves you interest.

First, read the notice: the lender must give you the reasons or tell you that you can ask for them within 60 days. If the decision was based on your report, the notice names the bureau that made it and says you have the right to a free copy. Then start with a product made to build history, and apply only for the credit you need.

Be wary of anyone who charges before doing anything, promises a higher score or says they can erase accurate information: no one can. Disputing errors is free and you can do it yourself; a HUD-approved housing counselor advises on credit, often at little or no cost.

The CFPB says many states allow fees of $10 to $30 per $100. With a typical fee of $15 per $100, borrowing $300 costs you $345 in a couple of weeks, and if you roll it over once you pay $90 for a month. That equals an APR of almost 400% on a two-week loan.

It is a payday alternative loan that a federal credit union can offer. PAL I is $200 to $1,000, for one to six months, and requires one month of membership. PAL II goes up to $2,000 and 12 months. In both, the application fee never exceeds $20 and they cannot be rolled over.

The NCUA says federal credit unions may charge up to 28% on a PAL, under the terms of the regulation, while the temporary ceiling the Board extended through September 10, 2027 remains. Their loans that are not PALs can have a maximum APR of 18%.

You have to join. For PAL I, the rule requires at least one month of membership first. The PAL II rule has no such wait. Ask a federal credit union near you whether it offers PALs.

The CFPB says to tell the company and your bank, by phone and in writing, that you are revoking authorization. You can also give the bank a stop payment order at least three business days before the withdrawal. You still owe the loan, so ask for a repayment plan too.

Yes. The CFPB says that if you do not repay, the lender can sue you. If you receive court papers, look for free legal aid right away and do not ignore the date.

It depends on the state. The CFPB says some states do not allow them, others allow them with a license, and in some a loan made without a license may be void. Your state regulator or attorney general can tell you whether a lender is licensed.

Some still is. According to the CFPB, the three credit bureaus removed paid medical debts, those under a year old and medical collections under $500. But these are bureau policies, not a law. The federal rule that went further was vacated by a court in July 2025.

Then the debt belongs to the card, not to medical care. The CFPB notes that the bureau changes do not include credit card collections, even if you used the card to pay a medical expense.

Under HUD's Handbook, medical collections are not considered debt on an FHA loan underwritten with the TOTAL system. Ask your lender how it sees them in your case, because it may have its own rules.

Fannie Mae excludes medical collections from its limits and does not require paying them before closing. And on a one-unit principal residence, it does not require paying off collections, regardless of the amount.

If it is a nonprofit hospital, it must have a financial assistance policy, which may include free or discounted care, and publicize it. If you qualify, you cannot be charged more than what the hospital generally bills for that care. Ask in writing.

A nonprofit hospital must make reasonable efforts to see whether you qualify before reporting you to credit bureaus, and cannot start those actions for at least 120 days from the first bill. You have 240 days to apply for help.

If you do not use insurance, the provider generally must give you a good faith estimate. If the bill is at least $400 more than the estimate, you can dispute it. Call 1-800-985-3059 for help, including in Spanish.

No. The FTC says freezing your credit does not affect your score. It only keeps new credit accounts from being opened in your name, even by you, until you lift it.

Nothing. By law, placing and lifting it is free. You have to request it from each of the three bureaus: Equifax, Experian and TransUnion.

With an alert, a business must verify your identity before opening a new account; it lasts 1 year, or 7 with an identity theft report, and you place it with just one bureau. With a freeze, nobody can open a new account in your name; you request it from all three bureaus.

Lift it temporarily before the lender checks your credit. If you ask by phone or online, the bureau must lift it within 1 hour; by mail, within 3 business days. You can freeze it again afterward.

Yes. The FTC has RobodeIdentidad.gov in Spanish. For another language, call 877-438-4338 and press 3; interpreters are available from 9:00 a.m. to 5:00 p.m. Eastern Time.

Yes. If your child is under 16, you can request a free freeze, which lasts until you ask to remove it. Each bureau has its own instructions for minors.

Yes. The IRS says anyone with an SSN or ITIN who can verify their identity can request an IP PIN, which keeps someone else from filing taxes with your number. You get a new one every year.

The FTC says they often have monthly fees of up to 25%, an APR of about 300%, plus processing, document or origination fees and add-ons such as a roadside service plan. In its example, borrowing $1,000 for 30 days leaves you owing $1,250, and rolling it over another 30 days raises the cost to at least $500.

Yes. The FTC warns that the lender may repossess the vehicle even if you have been making partial payments, and that some install GPS and starter interrupt devices to locate and disable it remotely.

It depends on your state. The CFPB explains that, when a car is repossessed, if it sells for more than you owe you may be entitled to the surplus. But the FTC warns that, with a title loan, in some states the lender can keep everything from the sale. Ask your local legal services office or your state attorney general.

The CFPB explains that the pawn shop keeps your item during the loan and, if you do not repay as agreed, can sell it to cover the debt. It also says the loan is often much less than the item's actual value.

Ask for the annual percentage rate (APR). In a lawsuit, the CFPB explained that every fee on the loan, whether called storage, appraisal or processing, is part of the finance charge and must be included in the APR. Add up all the fees before you sign.

The FTC suggests asking your creditors for more time, a PAL loan from a federal credit union, small loans from local banks, nonprofit credit counseling, help from family or friends, and charities and places of worship.

Yes. The CFPB explains that the Military Lending Act covers vehicle title loans: active-duty members and their dependents cannot be charged more than a 36% MAPR or be required to accept mandatory arbitration. Your JAG office can help.

The sources we checked do not give a fixed number: it depends on your whole report. FICO says an overall good history can outweigh one or two late credit card payments, and the CFPB says recent negative information weighs more than older information. Negative payment information can be reported for up to seven years.

No. Checking your own credit does not affect your scores: it is a soft inquiry. The ones that count are hard inquiries, made by a lender when you apply for credit.

Do not assume so. The CFPB explains that closing a card can raise your utilization, because your total limit goes down, and that can lower your score. Closing it can make sense if it charges an annual fee or helps you avoid debt, especially if you do not plan to apply for credit soon.

Little. Experts cited by the CFPB advise using no more than 30% of your total limit, and others say less than 10%. You do not need to carry a balance: paying in full every month helps you get the best scores and saves you interest.

Because you do not have just one score. Each depends on the model, the credit reporting agency the data comes from and the day it is calculated, and lenders use different scores for different loans. Some apps also show an educational score: for most people it is close to what lenders use, but not always.

Not in the score. FICO says it does not use your national origin, salary or employer, and VantageScore says the same about its model, adding your age and where you live. A lender can still look at your income and job when deciding whether to lend to you.

According to the CFPB, multiple mortgage lender inquiries within 45 days count as a single inquiry. You can compare several preapprovals and Loan Estimates; what you should avoid is applying for other cards or loans right before or during the process.

Only if it gets reported. FHFA says the newer models approved for Fannie Mae and Freddie Mac take rent payment history into account. Our guide to reporting rent explains the options and the fees to watch.

According to the CFPB, as you show you can pay on time, your limit may be raised and your deposit may be refunded. Terms vary by issuer: ask in writing when and how they return it, and read what your agreement says if you close the account.

It depends on the issuer. The CFPB explains that you put an amount equal to your credit limit in an account, and gives $500 as an example; with most of these cards, the credit line starts out small.

It can, if the issuer reports your payments to the three nationwide agencies and you pay on time. The CFPB suggests asking the issuer about reporting before you apply.

The law sets no fixed timeline. The CFPB found issuers that promised orally to convert accounts to unsecured in six or twelve months and did not, because it depended on other factors. Ask in writing for the requirements and how often they review your account.

Under Regulation Z, required fees in the first year cannot exceed 25% of the limit when the account was opened; late, over-the-limit and returned-payment fees do not count. If the deposit is charged to the card, it counts as a fee; if you pay it separately, it does not.

No. With a secured card you borrow and pay later, and that can be reported to the agencies. With a prepaid card you only spend money you loaded beforehand, and the CFPB says it does not build history.

It depends on the issuer. The CFPB says the issuer may ask for your Social Security number to get your credit report. Before applying, ask whether they accept an ITIN and whether they report your payments to the three agencies.

On most cards, not on purchases, if you pay the full balance by the due date. Companies are not required to give a grace period, and cash advances generally charge interest from day one.

You will be asked to pay. You may have to pay up to the full amount of the debt, plus late fees or collection costs, and the creditor can collect from you without first trying the borrower. Late payments can show up on your credit report, and after a default you can be sued.

It can. According to the CFPB, late or missed payments on a co-signed loan affect both people's credit history, and a default goes on your report. That is why it is worth getting the statements and checking your credit report.

Generally yes: for an FHA loan, the lender must count that debt in your monthly obligations unless it documents that the other person made 12 months of on-time payments. Fannie Mae also allows leaving it out of your DTI with 12 months of canceled checks or bank statements from the person paying, with no late payments.

It depends on the loan. Some private student loans allow the co-signer to be released if the borrower makes payments for a certain length of time; the requirements are in the loan terms and on the lender's website. Ask the lender or servicer what options your loan has.

Not if your spouse qualifies alone. Under Regulation B, a creditor cannot require the signature of a spouse or anyone else if the applicant qualifies, and if it asks for a co-signer, it cannot require that it be the spouse. There are exceptions when state law requires it to secure a property.

According to the CFPB, private student loan companies cannot garnish a co-signer's Social Security, but they can sue you in court to collect. Only federal student loans can lead to garnishment of Social Security, and most do not require a co-signer.

The FTC rule calls for the lender or retail installment seller to give you, before you are obligated, a separate document called the “Notice to Cosigner” explaining that you may have to pay the whole debt and that the creditor can collect from you without going after the borrower first. That notice is not the contract: the contract is what binds you, so read it too.

It can help, but only if it is reported to the agencies and the scoring model uses it. The CFPB says positive rental payments can help build your credit, and FHFA says the newer models approved for Fannie Mae and Freddie Mac take rent history into account.

Ask whether they take part in a rental reporting program, often through a rent payment app. Then check your three credit reports: if your rent is reported, it should appear as an account.

It depends on the program: some are paid by the landlord and others charge the renter. The CFPB suggests considering the fees of these services before you sign up. Ask how much it is per month, whether there is a signup fee and how to cancel.

Yes, if you fall behind and the late payment is reported. The big three agencies use rental payment and related collection information, and negative payment information can be reported for up to seven years. Ask whether the program reports only on-time payments or late ones too.

It can. Fannie Mae's DU system can identify your rent payments in 12 months of bank data if you have rented for at least 12 months at $300 or more and have no mortgage on your report, a limited history or no score. Without a score, rent can also be a nontraditional credit reference.

Dispute it in writing with the credit reporting agency and with whoever reported it. Your landlord may be the one furnishing the information, and it generally must investigate and respond within 30 days. The law bars them from reporting information they know is inaccurate.

Not necessarily: it depends on the model. VantageScore says its model uses alternative data such as rent, and FHFA says the newer models approved for Fannie Mae and Freddie Mac mortgages take it into account. Other models may not use it.

Yes, under some programs. Fannie Mae says that if you have no score or a limited history, the lender must establish an acceptable nontraditional history, and HUD Handbook 4000.1 allows the same for manually underwritten FHA loans. Each program has its own rules on references, debts and income.

Rent and utilities (power, gas, water, phone, internet) are the most common. Insurance not paid through payroll, childcare, tuition, store payments, medical bills and a personal loan with written terms can also count. Fannie Mae also accepts savings with regular deposits and consistent remittances over 12 months.

For Fannie Mae loans, they can: the Selling Guide accepts wire remittance statements showing a consistent amount sent over the most recent 12 months. Keep the receipt for every transfer.

FHA asks for three, with at least one from rent, phone or utilities. Fannie Mae asks for four in manual underwriting (three for HomeReady) and, when its DU system requires them, at least two, one of them housing. Each must cover the most recent consecutive 12 months.

Fannie Mae accepts canceled checks and, instead, bank statements, copies of money orders or other reasonable methods that show whom you paid and how much, or direct verification from the landlord. FHA asks for 12 months of canceled checks or other proof of payment, or a reference from the management company instead; if you rent from a family member, that reference does not replace the proof of payment.

For Fannie Mae loans, in many cases yes: if no borrower on the purchase has a score (or, in DU, none has a credit account on their report), at least one must complete a homebuyer education course before closing. It can be in person, online or by phone, or be replaced by counseling from a HUD-approved agency.

For FHA, if a borrower has no score, ratios are computed only with the income of the people who will live in the home and sign the loan. Fannie Mae permits non-occupant co-borrowers in manual underwriting if they meet its section B2-2-04.

Not to replace it. Fannie Mae does not accept a nontraditional history if the lender can obtain your score, or if your score is below the minimum, except for some HomeReady loans. The guide on what moves your score explains how to raise it.

No. Requesting your own report is a soft inquiry: only you see it and it does not affect your scores. The ones that count are hard inquiries, made by a lender when you apply for credit.

Because creditors are not required to report to all three bureaus. An account can appear on one report and not on another, which is why it is worth checking all three.

In most cases, no. The score is calculated from the data in the report and varies by model. If you apply for a mortgage and the lender uses your score, the law requires the lender to give you that information.

According to the CFPB, most negative information can be reported for seven years; a bankruptcy, for up to ten. If the item is accurate, no one has the right to remove it early, however much they charge.

The federal sources we reviewed do not explain how each bureau handles a file with an ITIN. If the official source cannot verify your identity, it must tell you what additional information or documents are needed and how to send them. If your request is denied, contact the bureau and, if that does not resolve it, the CFPB; a HUD-approved housing counselor can help you.

According to the CFPB, you can view it for free every week at AnnualCreditReport.com, from each of the three bureaus. The law also gives you the right to one free report from each bureau every 12 months, and to more in certain cases, such as when you are denied credit because of your report.

It may be identity theft or a file mixed with someone else's. If you think your identity was stolen, report it at IdentityTheft.gov, place a fraud alert and consider freezing your credit, which is free. If it is an error, dispute it with the bureau and with the company that reported the account.

It is a report from a specialty agency that collects information for landlords, such as your previous addresses and your payment history with landlords. Many of those agencies give you a free copy every 12 months. If a landlord turns you down because of that report, it must give you a notice with the agency's details.

Nothing. By law, the bureau reinvestigates free of charge, and the CFPB notes that disputing errors is a free legal right: you do not need to pay a credit repair company to do it.

Generally 30 days from receiving your dispute, plus up to 15 more days if you send relevant information during that period. It then has 5 business days to send you the results in writing.

It can end the reinvestigation if it reasonably determines your dispute is frivolous or irrelevant, for example if you did not give enough information. But it must tell you no later than 5 business days afterward, with its reasons and the information needed to investigate.

The CFPB calls this a mixed file and lists it among common errors. You dispute it the same way: with the bureau and with the company that reported the account. If you think someone used your information, also go to IdentityTheft.gov.

The federal sources we reviewed do not explain how each bureau handles a dispute from someone with an ITIN, and we will not guess. If a bureau asks for a document you do not have, a HUD-approved housing counselor can go over it with you, often at little or no cost.

According to the CFPB, the bureaus take disputes online, by mail or by phone. If you mail it, you can use certified mail with a return receipt to have proof of the date. Either way, explain what is wrong and why, and keep a copy of everything.

You can ask the bureau to add a brief statement explaining the dispute to your file, and submit a complaint to the CFPB online or at (855) 411-2372. The CFPB also notes that you may qualify for free legal services and that you can complain to your state attorney general.

Yes. By law, you can cancel it without penalty or obligation before midnight of the third business day after you sign, and the contract must come with a cancellation form. Those companies also cannot charge you before they finish the service.

You have 30 days from receiving the validation information to dispute in writing. The notice gives the exact end date of that period. If you dispute in writing by that date, the collector must pause collecting the disputed amount until it sends you verification. You can still dispute after that, but the collector no longer has to pause.

Generally not before 8 a.m. or after 9 p.m. where you are, or at any time they know is inconvenient for you. If they call at a bad time, you can tell them and they must end the call. They also have to follow your instructions about when and where you do not want to be contacted.

Regulation F presumes a violation if a collector calls about the same debt more than seven times in seven consecutive days, or calls again within seven days after talking with you about that debt. Calls that go to voicemail count. Even fewer calls can break the law, for example seven calls in a single day.

A debt collector cannot threaten to have you arrested, or have you arrested, for an unpaid debt; the CFPB calls that harassment. But if you are sued and do not follow a court order, such as appearing or providing information, a judge may issue a warrant for your arrest. That is why you should never ignore a court order.

Generally no. They may contact other people only to find out where you live, your phone number or where you work, and they cannot say it is about a debt. They can ask your employer for your address or phone number, but they cannot tell your employer you owe a debt.

The debt does not disappear until it is paid, but once your state's statute of limitations has passed, the collector cannot sue you or threaten to sue. According to the CFPB, most states have limits between three and six years. Careful: a partial payment or acknowledging the debt may restart the clock.

Send a letter telling them to stop contacting you; the CFPB has sample letters. After that they can only write to say there will be no further contact or that they may take other action, such as a lawsuit. The debt does not go away: if you plan to dispute it, do that before asking them to stop.

A collector may include on the notice an option to request it in Spanish. If it does and you ask, it must send you a notice completely and accurately translated into Spanish. If it does not include that option, Regulation F allows, but does not require, a translation.

Most creditors can garnish your wages or benefits only after a court issues a judgment. Federal and state laws protect part of it so you have something left to live on, and if you receive federal benefits such as Social Security by direct deposit, the bank must protect two months of those deposits. Some government agencies, such as the IRS, can garnish without a court order.

Hiring one is legal, but the law bans it from charging you before it finishes the service. Before you sign, it must give you your rights in writing and a dated contract, and you have 3 business days to cancel without penalty. What it does with errors on your report, you can do yourself for free.

No. Neither you nor any company has the right to have accurate, current and verifiable information removed. According to the CFPB, accurate negative information, such as a collection account, stays for seven years from the last activity or first delinquency.

Nothing. Disputing errors is a free right, and the credit bureau cannot charge you to reinvestigate. You do not need to pay anyone to do it.

Before midnight of the third business day after signing, mail or deliver the “Notice of Cancellation” form that comes with the contract, signed and dated, or any other written notice. You do not have to give a reason or pay a penalty. Keep a copy of what you send.

According to the CFPB, every form of upfront payment before the service is completed is illegal, and some companies set up monthly payments to get around that rule. If you were signed up by phone, they also cannot charge you until the promised time frame has passed and they give you a report showing the results, issued more than six months after they were achieved.

A contract that does not comply with the law is void. You can sue the company for what you paid it or for your damages, whichever is greater, within 5 years of the violation. You can also submit a complaint to the CFPB.

According to the CFPB, credit counseling organizations are usually nonprofits that offer free materials and can set up a debt management plan; they do not erase debts and never advise you to stop paying. Credit repair companies are usually for-profit and charge for things you can do yourself for free.

The CFPB warns it can be risky: these companies often charge expensive fees, ask you to stop paying your cards and cannot always settle everything, so you may end up deeper in debt. They could be breaking the law if they charge you before settling at least one debt, before you agree to the settlement and before you make a payment under it. A non-profit credit counseling service is an alternative.

It is a small loan you do not receive up front. The lender holds the money in a locked savings account, you pay it off in installments, usually over 6 to 24 months, and at the end you get what you saved. Each payment is reported to the credit bureaus, which is how you build history.

You pay interest and fees that vary from lender to lender; the CFPB says risk is a key factor in setting them. Before you sign, the lender must give you the APR, the finance charge in dollars and the total of payments in writing. Compare those numbers across several offers.

It depends on you. With a secured card you put down a deposit and can use credit up to that amount; with the loan you spend nothing, make fixed payments and get the money at the end. The CFPB lists both as products for getting started; what weighs most in your score is paying on time.

It depends on the lender. In 2003 NCUA said it saw no legal impediment to a federal credit union lending to members with an ITIN or a matrícula consular, if it manages the risks, and that it knows of no law that bars reporting payments under a number other than a Social Security number. Ask your credit union whether it offers one and reports your payments.

The late payment is reported like any other loan and can hurt your score. If you stop paying, the lender closes the loan: you are not left owing a balance, but you do get a negative mark on your history.

The hard inquiry a lender makes when you apply for credit can affect your score, because models look at how often you apply. That is why the CFPB recommends applying only for credit you need. Checking your own reports does not lower your score.

Check your contract: the lender must tell you in writing whether you can be charged for paying early. At credit unions, according to NCUA, regulations let you pay off your loan early without a penalty.

In the CFPB study, the loan slightly lowered scores, on average, for people who already had debt, and it was associated with more late payments on other loans. The CFPB suggests that people with debt consider paying it down first or looking at other services, such as credit counseling.

According to the CFPB, you can see it free once a week at AnnualCreditReport.com, from each of the three agencies. The law also gives you the right to one free report from each agency every 12 months.

No. Requesting your own report is a soft inquiry: it does not affect your scores and only you can see it.

No. The free reports from the nationwide agencies do not include a score. Our guide on what moves your score tells you where to see one without paying.

The regulation requires the official source to tell you it could not verify you and explain what information or documents are missing and how to send them. You can also request by phone or mail. If an agency denies your request, contact it first and, if that does not resolve it, take it to the CFPB.

The mail form asks for a Social Security number. Before you send it, call the official line, (877) 322-8228, and ask how to make your request. If they cannot identify you, the regulation requires them to tell you what information or documents are needed and how to send them.

The official form says your request is processed within 15 days of receipt and the report is then mailed to you. If information is missing, the agency contacts you by mail, which can delay it.

No. Under federal law, freezing and unfreezing are free at all three agencies, but you have to request it at each one. The credit locks the agencies sell are no more effective than a freeze.

A freeze keeps prospective creditors from seeing your file, and you request it at each agency. A fraud alert does not block access, but it requires creditors to confirm it is you; you request it at one agency and that one notifies the others. An initial alert lasts one year.