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Your credit score could affect your life

There is a lot of information out there regarding your credit. But what exactly does your credit mean? In this article I will discuss three categories. The first is your credit score, the second will be your credit report, and the third will be your full credit report with all 3 scores.

Your credit score is so important these days, that in order to get a job, you better manage your credit score properly. Most institutions now view your score as a glimpse of how responsible of a person you might be. Your credit score usually ranges from 380 to extremely bad; at 820 being the best. All bureaus have a scoring system that determines your creditworthiness. Whether you have revolving credit or installment loans all determine your creditworthiness with all three agencies. Your credit score could drop if you charge your credit cards above 30% of the credit line extended. Your credit score will go down if you close on good credit, which has no balance due. If you fall behind on an obligation, your credit score will typically take a 20 point drop, which is an extremely large drop by the way. This kind of dip could mean the difference in getting the best rate on a mortgage, or even landing that new job you worked so hard for. Each of the bureaus and there are three, Experian, Equifax and Trans Union, score your credit based on your credit history. Your credit score is so important these days that you need to know what it is with the Three Bureaus.

Your credit report is what all institutions look at when it comes to applying for a loan, a credit card, a mortgage, insurance, or even a job. As a consumer, you need to know what’s on your credit report. When accessing your credit report, you should make sure you access a triple combination report from all three bureaus and with all three scores. This is what everyone is looking at. If you’re going to get your credit report, this is exactly what you need. You need to know what they are looking at. annualcreditreport.com offers a credit report, but what they don’t mention is that they don’t get your scores. Your credit report is worthless if you don’t get your credit scores from all three bureaus. Your credit report will show what all your creditors have to say about you regarding your history of all your obligations involving borrowed money. It will give a snapshot of the last 7 years. So make sure you pay everything on time and don’t let anything go to the collection.

Your credit scores:

Credit scoring software is somewhat similar, but there are different names for each of the bureaus.

For example:

Equifax is “Lighthouse”

Trans Union is FICO Classic

Experian is the FICO risk model

The general scoring range for these models is as follows:

or 780-850 – Low Risk

o 740-780 – Medium-Low Risk

or 690-740- Medium Risk

o 620-690- Medium High Risk

o 620 and below: high risk or “subprime”.

Like any great recipe, the precise formula used to calculate various types of credit scores for credit reports are well-guarded trade secrets. However, Fair Isaac has published enough information to give very general ideas of how scores are calculated.

Remember that the score is calculated by analyzing all of the credit information in the credit report and the various factors that make up the whole. No single piece of information or factor by itself determines your credit score.

Factor 1: Payment history (35%)

Factor 2: Amount owed—– Degree of indebtedness (30%)

Factor 3: Length of credit history——- The longer the better (15%)

Factor 4: How much new credit? (10%)

Factor 5: Type of Credit (10%)

With all that being said, go to the nation’s leading resource for your credit report, http://www.my720fico.com, this resource was created by lenders who understand the need for accurate information.

http://www.my720fico.com is your one-stop resource for credit reports and credit scores.

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