Understanding the Credit Scale
Lenders place a great deal of importance on your credit score. Because this number is an aggregate of your past credit accounts, they use it to guess at how responsible you will be with your future credit accounts. While this approach is not flawless, it is almost universally applied.
There are three main credit reporting agencies. They collect all of the details of your credit accounts and compile them for easy reference. The data includes payment history, balances, and number of accounts. Then lenders can access this information as part of their loan adjudication process.
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.
Because your credit score it so vital in being approved for credit, it is critical that you do your best to safeguard it. Above all else make every effort to pay your debt obligations on time. Nothing brings your credit score down faster than late payments.
Lots of outstanding debt will drive down your score as well. Do not open up more credit accounts than you need. Additionally be careful when even applying for credit. Frequent credit bureau inquiries can hurt your score too. It is difficult to bring your score back up after it takes a hit, so it is not a responsibility to be taken lightly.
There are three main credit reporting agencies. They collect all of the details of your credit accounts and compile them for easy reference. The data includes payment history, balances, and number of accounts. Then lenders can access this information as part of their loan adjudication process.
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.
Because your credit score it so vital in being approved for credit, it is critical that you do your best to safeguard it. Above all else make every effort to pay your debt obligations on time. Nothing brings your credit score down faster than late payments.
Lots of outstanding debt will drive down your score as well. Do not open up more credit accounts than you need. Additionally be careful when even applying for credit. Frequent credit bureau inquiries can hurt your score too. It is difficult to bring your score back up after it takes a hit, so it is not a responsibility to be taken lightly.
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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
12:32 AM
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