Facts about credit scores

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Facts About Credit Scores

To individuals who are not familiar with the phrase credit score, they often assume that this is the score that we get in our credit cards for the number of acquisitions that we have made each year. But nothing is more mistaken. Credit scores are actually the actual grade that you get for the way reliable a person is inside paying their debts and also credits.

Credit scores tend to be determined by a lot of elements, how much your exceptional debts is, exactly how regular do you shell out the dough, how much you spend and how much you earn. It will likewise be determined by your previous credits and how had you been as a borrower. They are all being collected and recorded by credit bureaus and credit research agencies like Equifax, TRansUnion and Experian.

So if you think, you’re the only one who knows that you owe a credit card company a big amount, reconsider because they do retain records and what is a lot more, all the credit transactions that we get are being declared future reference of each and every credit and financial institution in the country.

Credit scores is important as it can mean being accepted or rejected to get a loan. With a really bad credit score, you may not be capable of geting a house loan, a car loan, a faculty loan and even a credit card. In short, using a bad credit history, your days of borrowing money is history. As an added salt to the injuries, it is not only credit card companies, lending companies and banks that do get info from the credit scores.

Even private companies and government agencies use this in order to background check a current worker or a potential staff. You see, a credit rating will determine a persons economic savvy and a feeling of responsibility. This will furthermore show just how much a person is willing to face up to a challenge instead of running away from it.

This is especially true together with employees that are getting hired or have been hired to assume content that deal with truly sensitive financial issues or those who are straight in contact with money. A credit history and a credit score is important in determining if they will be able to handle the actual finances well.

Mobile phone companies and credit card companies also use credit scores to look for the clients that they should target. People who have good credit scores are often those who have the spending energy. Thus, they are excellent people to offer mobile phone packages and credit card solutions.

In securing the loan, credit scores are also used in determining the kind of loan which will fit your credit profile. Individuals who have high credit score receive higher amounts inside loan, lower interest and also longer time frame in which to pay the loan.

In contrast, those who do not have a good credit rating may be refused any loan or at the very least be provided with a small amount in loan, much higher interest as well as shorter time frame to cover the loan. This is because credit card organizations and lender want to protect their Interest. Low credit scores are more riskier and therefore warrant higher interest rates.

Credit scores can be purchased through the world wide web via Equifax. They will give you your FICO (Fair Isaac Corporation) score for a small charge, $12.95.

Comments: 17

  1. Bailey February 27, 2013 at 7:51 am Reply

    How should I find out what my credit score is? What is the safest way of doing it?

  2. Denis April 14, 2013 at 11:27 pm Reply

    My credit score is very low due to the fact that my ex-husband used my name and SS number and then never paid for what he bought. I just didn’t know that he was doing that as he opened all of the mail.

    Anyway, here I am with a credit score that is very low. I need to have a surgical procedure done. I can get financial help to pay for it, but my credit score is too low to qualify. Is there ANYTHING that I can do?

    I have a good job and have always been employed. I don’t know how to raise my credit score. I was actually turned down for a Bank of America secured credit card even though my checking and savings accounts are there!

    What in the world can I do to fix this? If ther is anything, does it take a long time?

  3. Cleveland June 1, 2013 at 11:32 pm Reply

    Why is your credit score different between Experian, TransUnion, and Equifax? All three credit reports are very similar. How much difference is normal between them? When you apply for credit do they look at all three reports and scores? Do loan companies prefer one agency over the others?

  4. Carlotta June 2, 2013 at 4:11 pm Reply

    Im trying to get my credit score up and delete anything that does not belong there.

  5. Armanda June 5, 2013 at 8:48 am Reply

    I just checked my credit report and realized that i have something in collections part. turns out i have college parking tickets from 5 years ago that I never paid. It has now racked up to $385. I havnt been contacted about this in a few years now and was unaware it was sent to collections. How bad is this affecting my credit score?

  6. Caren August 15, 2013 at 10:06 am Reply

    My credit score is around 500. I’m 21 years old and I have made some pretty poor decisions regarding my financial obligations. (PLEASE, do not post any negative information or comments telling me to get back on track and how important good credit is. I KNOW THIS and since March of this year, I have gotten back on track.) How much can my score go up after I continue paying my bills on time and get some bills out of collections? Thanks.

  7. Patricia August 18, 2013 at 6:29 pm Reply

    I got a credit card about a year ago. I just checked my credit score & it’s a 650. My credit card is the only source of building credit that I have right now. I’ve never missed or been late on a payment. Is this a decent score for only having a card a year? I plan to pay it off within the next few months. After I pay it off what are other ways that I can build credit. I’m a college student wanting to have great credit by the time I get out of college in the next 2 years. Any advice?

  8. Karie September 10, 2013 at 9:51 am Reply

    I am looking to buy a condo with my boyfriend. We are going to look a promising property tomorrow, but first we are calling a lender. To afford the property we need a $45,000-$51,000 loan. My credit score is between 710-740, and he ia not sure what his is. Is my score alone good enough to get the loan? I really want both our names on the loan. I think it will help that his income is higher than mine, but if his score is bad, will mine be good enough to carry his? I have only been building credit for about a year, and I just got approved for a Visa card. Will that, or my standing as a full-time student with a high GPA, help anything? Thank you for all of your answers!

  9. Guillermo January 22, 2014 at 10:32 am Reply

    I do not have a credit card yet, but i plan on getting 1 and buying burgers with it or maybe a few video games. How much money total would i have to borrow and pay back to get a good credit score? I wish to buy a car $32k putting $10k down so i would have to finance $22k and i want preferably a 800+. Also, if i have someone (with 800+ credit) to co-sign would that lower the APR further? I know to pay the bills quickly i just don’t want to spend too much money on useless things just to get a credit score.

  10. Mohammed February 13, 2014 at 6:35 pm Reply

    what does credit score mean on a credit card? my brother’s always using his card to pay for stuff thats only a couple dollars and he says its to build up his credit score? thanks

  11. Terrance February 19, 2014 at 7:00 pm Reply

    I’ve had my student credit card for about 4 months (my first credit card), and I’ve been paying in full and on time every cycle. I haven’t gotten close to my $700 limit yet, but once school starts in a couple of months, I’ll be spending a lot more money, and my balance will probably get close to the limit.

    Will heavy use of my credit card hurt my credit score even if I pay in full and on time? Or is that a myth?

  12. Cheyenne February 19, 2014 at 7:31 pm Reply

    Some info about myself. I’m 24 years old. I have no mortgage, rent or loan to pay. I still live with my parents. I paid both my 2 cars and first motorcycle completely off with cash. I make a little over 2g after tax and save about 1100 a months to spend on whatever I want. Still going to college. I have ALWAYS paid off my credit card bills on time for the past 5 years. According to credit karma, my credit score is 729 with a C on credit history and a F on total accounts (A on everything else though). My overall credit is a B. Just got approved for an American Express card a few days ago. I also have very limited knowledge about credits and stuff related to it other then just making sure I pay my cc bills on time.

    So I’m trying to buy a new motorcycle from my 2 local dealership. I’m trying to finance it because I want to build my credit history. This will be my first time financing something if I do get it. Both of them rejected me saying I don’t have enough credit history which is reasonable I guess. Now I plan to visit my Chase bank or Credit Union to get a loan. I want about 7g or 8g. I REALLY want a motorcycle and build my credit history so I can easily get approved to get a loan to buy a house in the far future. Thanks

  13. Kristine February 21, 2014 at 4:50 am Reply

    I was looking over my policy last night and I stumbled across a section I’ve never noticed before. It listed my “Insurance Score” as a “C.” With no legend listed on the paper, I’m assuming the C is out of an A-F scale. (am I wrong here?). But what bothers me is that I don’t know why, if it is on a standard letter grade scale, why I have a C. I have NEVER had a ticket, nor had an accident. (I’ve had a few warning citations, but never an actual ticket) I’ve always sent my insurance payments in on time and the only claim I’ve really made on my truck was to have a couple of bullet-point cracks in my rfont windshield reparied. I’m a 23 year old law student so I’m thinking maybe my age and the fact that I don’t have a job plays a role in this…Can someone help me out here and tell me that insurance score means?
    I”m sorry I miss-typed my post. I know that credit history and my insurance policy aren’t nec. directly related. I actually have no credit. I don’t own any credit cards (well I have one that is in my name but I’ve never used it). My dad gave me a credit card to use for emergencies while at school and that’s the only thing I’ve ever used. I have a debit card as well that i’ve overdrawn a couple of times, but in regards to actual credit cards I don’t use them.

    But I just wanted to make sure I corrected that. Thanks for all the responses so far! very helpful!

  14. Justin February 25, 2014 at 10:43 am Reply

    How can different credit reporting agencies have a different score for the same person?

  15. Rodger March 17, 2014 at 3:01 am Reply

    My fiance and I want to buy a house. He has a high credit score and a full time factory job. I am currently an unemployed, part-time student with $7200 credit card debt from school.
    We were thinking if I should be put on the mortgage or would the fact that I am unemployed with debt hurt our chances of a loan.
    My credit score is 730 and my report shows that I’ve never been late on a payment.
    The house we want to purchase is in the 75,000 – 90,000 range.
    He’s thinking of putting his brother who is employed with lesser debt, but lesser credit score than mine on the mortgage and I’m wondering which will increase our chances of getting the loan. His brother will be living with us.

    Thanks so much for you help,

  16. Carla April 1, 2014 at 6:02 am Reply

    I am going to owe taxes this year and do not have the money to pay them. I plan on going on a payment plan with the IRS. I also would like to refinance my mortgage later this year–I have no credit card debt. I’m afraid if I pay the taxes I owe with a credit card it will hurt my credit score. Will the taxes I owe if I make payments to the IRS show up on my credit reports too and hurt my credit score?

  17. Jo May 18, 2014 at 7:55 am Reply

    Is there really a way to find out your credit score without paying for it?

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