How is Your Credit Score Measured?
There is no denying that in today's society you credit score is a very important number. It is the measure by which lenders determine how likely you are to pay back any money that they lend you. The thinking is that you responsible you have handled credit in the past is an indication of how responsible you are likely to be in the future.
Your credit history is tabulated by three main reporting agencies. They collect and organize information regarding late payments and outstanding balances and put them into the form of a report. Then when you apply for credit, the lender can review your past behavior and make an informed decision as to whether or not to approve your request.
Your credit score and credit report are not the same thing. You can get a copy of your credit report once a year at no cost, simply by requesting it from the credit bureaus. However you will have to pay a small fee if you want to know your credit score.
You may sometimes encounter your credit score being referred to as your FICO. This is because the Fair Isaac Corporation was among the first to create a credit scoring system. Lenders use this system differently in their adjudication of risk, but it is certainly near universally applied to some extent.
As much as the credit bureaus endeavor to maintain impeccably accurate records, occasionally mistakes do happen. For this reason it is very important to check your credit report regularly. If you do discover any errors or omissions they are easier to fix the sooner they are identified.
There is no denying that a high credit score makes it easier to be approved for credit and obtain better interest rates. In this light it is crucial to protect your credit rating. Be certain to make your loan payments on time, because late payments are the fastest way to bring down your score.
There are a few more things you can do to help yourself in this area as well. Lenders frown an applicants that have a great number of open accounts on their bureau and more so if they are maxed out. They also do not like credit seekers so you should try to keep bureau inquiries to a minimum. It is difficult to bring your score back up once it falls, so do you best to keep it in good standing.
Your credit history is tabulated by three main reporting agencies. They collect and organize information regarding late payments and outstanding balances and put them into the form of a report. Then when you apply for credit, the lender can review your past behavior and make an informed decision as to whether or not to approve your request.
Your credit score and credit report are not the same thing. You can get a copy of your credit report once a year at no cost, simply by requesting it from the credit bureaus. However you will have to pay a small fee if you want to know your credit score.
You may sometimes encounter your credit score being referred to as your FICO. This is because the Fair Isaac Corporation was among the first to create a credit scoring system. Lenders use this system differently in their adjudication of risk, but it is certainly near universally applied to some extent.
As much as the credit bureaus endeavor to maintain impeccably accurate records, occasionally mistakes do happen. For this reason it is very important to check your credit report regularly. If you do discover any errors or omissions they are easier to fix the sooner they are identified.
There is no denying that a high credit score makes it easier to be approved for credit and obtain better interest rates. In this light it is crucial to protect your credit rating. Be certain to make your loan payments on time, because late payments are the fastest way to bring down your score.
There are a few more things you can do to help yourself in this area as well. Lenders frown an applicants that have a great number of open accounts on their bureau and more so if they are maxed out. They also do not like credit seekers so you should try to keep bureau inquiries to a minimum. It is difficult to bring your score back up once it falls, so do you best to keep it in good standing.
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For more further details about rating credit score scale and increasing your average FICO score check out The Credit Camp.
posted by Debt Consolidation Loan at
4:14 AM
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