understanding your credit score and its implications
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The credit history of a person defines his or her credit worthiness. Many people know that having a good rating means getting great financial benefits. However, not so many people know how to get a high score. Need more info in understanding your credit score? Then go ahead and visit http://creditscorefox.com. now!TRANSCRIPT
Understanding your Credit Score and Its
Implications
Brought to you by:
www.creditscorefox.com
Understanding your Credit Score and Its Implications
www.creditscorefox.com
The credit history of a person defines his or her credit worthiness. Many people know that having a good rating means getting great financial benefits. However, not so many people know how to get a high score.
Every consumer can benefit from a good approval score. On the other hand, a negative credit rating can considerably reduce the chances of getting a bank loan, insurance or credit card. Aside from that, it can also significantly lower your chances of renting or owning a home. In some cases, you can be denied employment in companies that use rating as an acceptance guideline.
Understanding your Credit Score and Its Implications
www.creditscorefox.com
There are three bureaus namely Equifax, Experian and TransUnion that will compute your credit or FICO score. Each one of them uses their own algorithm to be able to create a numerical value which range from 3000 to 850 which indicates the creditworthiness of a person.
FICO scores are determined by the credit history of the individual and are based on records acquired from creditors, lenders, banks and utilities. When a lender reports late payments, your credit score will suffer.
If you use debt management services of file for bankruptcy, your FICO score will also drop.
Understanding your Credit Score and Its Implications
www.creditscorefox.com
Frequent credit requests can also bring your score down because it will show that you are facing financial distress.
Your history of payment will account for 35 percent of your credit score. Another major factor is your debt to ratio which accounts for 30 percent of the score.
The time duration covered by a credit history makes up 15 percent of your score while the remaining 20 percent is made up by the account types you own and the hard inquiries made by lenders when seeking loan or credit.
Understanding your Credit Score and Its Implications
www.creditscorefox.com
What makes your score so important? The reason why it is important is because creditors, lenders and banks use it to evaluate their exposure for giving you more credit in the form of credit cards, mortgages, personal loans or for lending you money. Your score is one of the main factors used to evaluate your ability and willingness to make payments for your debts.
If you understand your history, you will be able to manage your personal finances better. Each person is entitled for one history report in a year for free.
Understanding your Credit Score and Its Implications
www.creditscorefox.com
This free report will list all your transactions and contains detailed account information such as credit limits, payment history, outstanding low and high balances and any collection effort or action that has been taken to recuperateoverdue debts and cases of bankruptcy filed.
When checking your report, it is important to bear in mind that your objective is to make sure that the information is accurate most especially in the area concerning your payment histories and financial accounts. Errors can greatly affect your history.
Understanding your Credit Score and Its Implications
www.creditscorefox.com
This may uncover transactions you did not place or payments which remained open when you have paid them already. If these errors are found, contact immediately the agency releasing your report.
Need more info in understanding your credit score? Then go ahead and visit Credit Score Fox now!
Understanding your Credit Score and Its
Implications
Brought to you by:
www.creditscorefox.com