Credit Score Ratings
July 1, 2008 · Print This Article
People are more familiar with the term “credit score ratings” than they once were because of the various commercials that mention it, but they are not really secure in the knowledge of exactly what these credit score ratings are, or just how having a high or a low rating can affect them.
Credit score ratings come from the three credit reporting agencies, Experian, Equifax, and Trans Union, the same agencies where you get your credit report. These agencies have a special type of software that takes the information from your credit report and compiles a score from it. This is called a FICO score.
The software uses several different types of information from your credit report in order to figure out what your FICO score is. The names and addresses of your creditors, the total amount of money you owe to all of your creditors, and your payment history with all of them are all what makes your score a good one or a bad one.
A FICO score is used by any business establishment where you might apply for credit, so it is useful to know what your score is before you apply. FICO scores range from 300, which is not good, to 850, which is very good. Each credit agency might give you a different score, so check with all three to get a good idea of exactly what your score is. You can get a free credit report online, but they are most definitely free! You do not have to sign up for any type of service to get a free credit report. You can get one free credit report from each of the three credit reporting agencies once a year.
All of those commercials who tell you how important your credit score rating is are very correct. Most people know that their credit is going to be checked when they apply for a credit card, an automobile loan, or a mortgage. Those are the three “big ones”, and a low credit score will cause you to pay a high interest rate.
Automobile loans and home mortgages may require you to get a co-signer.
Your credit score ratings can also influence other things that are important to you. If you are looking for a new job, your potential employer could well check your credit rating before hiring you, especially if the job is one where you handle money. Landlords will check these scores to try to weed out undesirable tenants. You can still rent with bad credit, but you may be asked to pay a big deposit. The utility services for your home such as water, electricity, and gas may also charge a large deposit to someone with a low credit score who needs these utilities turned on at a new address.
Your home and auto insurance companies also take the time to check your credit score ratings. A low rating may well cause your premiums to be higher. Even your cell phone service can be affected by a low credit rating. If you have poor credit, you’ll pay more for your cell phone service.
Take care of your credit score rating, for it can make the difference between being able to purchase goods and services and having to pay a premium price for them – or perhaps not getting them at all.
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#honestyhour I can make dicks n credit scores do the same thing
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Not even a close call:
Pay the mortgage first, then installment loans, then revolving debt.
Go to http://www.vitessefinancial.com and get a free consultation!
To be perfectly honest with you I think that the reason that the loans are not being paid is because the lenders almost seem to seek people who will not be capable of paying them back. Credit card companies thrive on the people who live beyond their means and cannot pay their bills in full at the months end because then they have to pay ridiculous amounts of interest.
What the real problem is, is that people make uninformed decisions, and the lenders are not the people you want to direct you, because they are there to make a profit…it's kind of like asking a Ford dealer whether you should buy the Ford or the Chevy?. Of course they are going to tell you to buy the Ford, because that is what is in their best interest.
What I recommend for you to improve your credit rating is to find a credit card without applying for too many since that would not be good for your score, and make sure you spend a little on the card each month and make sure you pay it off IN FULL when you get the statement. Things to watch for in a credit card: Make sure there is no annual fee, there should be a "grace period" ( or period of time between the time you make a purchase and the time you pay for it which will not accrue interest), and the lowest interest rate you can find. Watch out for the checks they send you because they can have other fees attached and may not have a grace period.
Credit cards can be risky, but they can help you build up a credit history, which will help you with future loans…just so long as you use them responsibly!
Oh and no, I don't think it has to do with the credit score so much as it does the lenders that are misleading people into making purchases that they will not be capable of paying for.
Your FICO score is what matters most, I'm assuming that is the one you scored a 718 on.
Congrats, you have excellent credit.
Banks will review your FICO score to evaluate your credit worthiness.
Many companies that cannot legally report FICO scores will give you an estimate. While these are nice to have it's like comparing a report card to a note from mom. Both are nice to have, but only one gets you into college.
Good luck — remember to use your credit responsibly.
You may think you are too young to start thinking about your credit but as a young adult, about to embark on your life’s journey, it’s time for you to begin making plans. Why is this important? Many reasons. When you get ready to buy a home it will be crucial to have a good credit score. No bank or mortgage facility will entertain the thought of giving you a mortgage without it. Owning that nice car that you have been dreaming of will be an impossibility unless you are establishing good credit (or are fortunate enough to be able to pay cash), and the career you strive toward may not happen unless your credit history is up to snuff. Employers are looking more closely at credit scores these days as a way to get a picture of how responsible the individual is that they are planning to hire. A poor rating can send the message to your prospective employer that you really are not trustworthy or mature, making them look further for someone that is.
You should never cosign for friends or even family members because it will be the last time you'll be speaking with them. Plus the fact you won't know the account is late until you start getting calls and by that time, the damage is done. Any derogary info stays on your files for 7 years.
monthly
i deal with credit everyday. your score will rise prctaically overnight if you pay all your cards off. if you paid them off today within 45 days your score will jump as much as 100 points. just keep them at or near zero and you will shine in the credit world, also acquire no collections and dont get too many cards, just payoff what you have.
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