Credit Score News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Score News, Tips & Advice « Credit Scores > Credit Score Advice > The most important score you need to look out for

The most important score you need to look out for

By George Hauser
Published: Thursday, October 15th, 2009

When people buy a lottery ticket they expect to have the best combination and win the jackpot but in credit scores you only need 3 digits to call yourself lucky. Why is this so? From a credit score advice, this is because your credit scores can cost you a whooping $200,000 in penalties and can make or break your financial life especially in these hard times. So what then are credit scores? Why is it important and how can you utilize it to your advantage?

You need a credit score advice in order to understand this. Credit scores could be compared to a grade given to you by your teacher back in school, where good performance merits you a higher grade and of course a failing mark for slacking off. Basically, credit scores ranges from 350-850 as developed by Fair Isaac and Company thus another name for it is FICO Score. This “grade” is based on your credit reports also known as consumer credit profiles are kept by 3 big agencies namely Equifax, TransUnion, & Experian who look into your present and even past financial history. Usually we find personal and public information, creditor contacts and your account history. Basing its report on information collected from creditors the 3 credit bureaus mentioned is likely to give you different scores.

 Simply put your credit profile is where banks, employers, credit card companies and even your landlords base their decision on whether you are capable of paying up. They rely on this because it gives them a view on what kind of payer you are for the past years and how you handle your money. For an additional credit score advice with these people and agencies, it is not difficult to see how credit scores are important in dealing with everyday life and how your credit reports will most likely affect it.

So if you plan in getting a loan, borrowing money or even applying for a job that involves money you should raise your score now and be conscious of the 5 primary variables that affect—payment history, account balance, age of your oldest account, your recent inquiries, and lastly a combination of credit types. Moreover, you need to know what kind of credit score advice you need.

Credit report agencies conceal how they really score or what they call their scoring models but tips and credit score advice can be accessed through credit consultants. Some tips given such as sometimes deleting negative credit accounts would result to a decrease in your credit score. Because even if these are negative, they are still good evidence that you have been establishing a credit history and the longer your history is the better. This would give you a boost up to 15%. Another tip is a cliché to many but still it is much recommended and that is, pay your bills. Because when you try to apply for a loan while you have a big balance, most likely you will be given a low score. Lastly be aware of the abovementioned variables and check your credit reports for inaccuracies and watch out for errors.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.