Credit Score-Free Credit Score

Krez asked:


I just checked my credit report recently and there was an error on it that I disputed. They are now in the process of removing it from my report. I’m sure the answer is no, but is there any way to tell how much my score will go up when it’s removed? I don’t remember what it was before that faulty collections was put on there, but I know it will go up from what it is now.

Shakia Eighmey

sarah asked:


I heard on some commercial that a bad credit score can keep you from getting a loan, a car, and a job? How is this possible? Why wouldn’t someone hire you because of your credit score?

Jazmine Gavia

Annualcreditreport gives you a credit report free once a year, but they don’t give your credit score. I have been a lender for 7 years, and believe me when it comes to getting your loan done everyone looks at credit scores. Your credit score is a bench mark for banks to sell your loan on the secondary market. Typically investors use your middle credit score to determine your creditworthiness. Here is what myFICO® says in regards to how important it is to know your credit score.

How credit scoring helps you

Credit Score gives lenders a faster snapshot of your credit risk. Most lenders are now using FICO® to determine your score. Before the scoring process was implemented there was a biased opinion of your credit. Now there is less none bias opinion of your creditworthiness with credit score automation process with all 3 credit bureaus. When pulling your credit report with all 3 Credit Bureaus you typically get a score. Since annual does not provide this, you have to get your report through other service providers.

Here are some advantages of credit scores.

* You get loans faster Your credit scores can be delivered with a few key strokes with today’s technology. With the speedy process this helps lenders speed up the decisions making process. Even mortgage applications can be made within ours, instead of weeks.

* Credit Decisions are fairer Credit decisions can be made of facts instead of emotions. Factors like your gender, religion, race, marital status and nationality are not considered by credit scoring.

* More Credit is Available

Lenders can approve more loans because the credit scoring process gives them the information on which to base there decision on. It allows lenders to identity individuals that are likely to perform well in the future even though they have had issues in the past. Each lender has its own credit score guidelines, so if one denies you, you may get approved elsewhere. The use of credit scores gives lender the confidence to offer more credit to people since they better understand the risk they are taking.

* Credit mistakes count for less

If you have credit problems in the past, credit scoring does not let that haunt you forever. Past credit problems fad as time passes as long as new good credit patterns show up. Credit scoring weighs all credit in a file, as opposed to focusing primarily on past issues.

* Credit Rates are lower

The cost of loans decreases when more credit is available. The process of automation in the credit process is less because of the efficiency of the process, which is passed on to the consumer. Buy using the scoring process there are less defaults, and in returns saves the consumer in the long run. Credit Scores have revolutionized the lending arena, and has driven down cost for everyone.

Conclusion:

Now you know why you need to know your scores and how important it is. Recent studies show that 1 out of 4 credit reports have incorrect information on them. Plus identity theft is the fastest growing crime in America. You need to check your free credit report with scores every 90 days just to be safe in today’s times. Since your scores are the core in determining whether they will lend you money, shouldn’t you know what they are ? The answer to that is yes.



By: Mike Clover

About the Author:

Erik Provent

CambridgeCredit asked:

Several decades ago, Fair Isaac and Company (FICO) revolutionized the credit rating system with the introduction of their FICO Score a three-digit number representing an individuals creditworthiness. In 2007, FICO began the process of overhauling its scoring model to better predict the risk represented by consumers. Roughly two years later, FICO 08 was released. This weeks episode of Cambridge Credit Counseling Corp.s Your Money 2.0 reviews these changes and explains how FICO 08 will impact …

Micheal Jenkins

expertvillage asked:

Choosing a credit card has become simplified with banks issuing cards connected to accounts. Learn how to choose a credit card from a credit counselor in this free personal finance video.

Lawerence Ridolfi

DebtRelief1000 asked:

http://www.debtconsolidationupdates.com/2293/how-can-bad-credit-debt-consolidation-help-your-credit-score/ – Bad credit debt consolidation loans are always available for anyone who needs help managing their debts.

Adrien Atiles

Credit comes in many forms, from being given money to be repaid later to being given items to be paid for later. In the United States, credit worthiness is usually determined by a credit reporting agency derived credit score, relationships with those with whom you do business, or the testimony of respected individuals who know you personally.

If you are looking for a loan, you will typically have to file a loan application. Similarly, if you are seeking a line of credit or a credit card, an application will be required. Unless you have a close relationship with your lender or with a high profile individual willing to vouch for you, your credit score will be the primary determinant of whether your application is approved or not. Even if the application is approved, the terms of your loan may also be significantly impacted by your credit score.

Credit scoring formulas very from one credit reporting agency to the next and from one lending institution to the next. Your credit score basically says whether or not you’re dependable with money. It seeks to rate how much you have been trusted with credit in the past and how well you have responded to that trust. The idea is that these factors are the best predictors of what you will do when trusted with a line of credit.

On a typical credit score scale, the average person has a score of around 650. If your number is higher than this it shouldn’t be too hard for you to get credit on fair terms. If your credit score is lower than 650, getting credit on good terms could be nearly impossible. In this case, you will need to take action to improve your credit score, such as getting help with your money management.

While there are situations in which credit scores can be damaged through no fault of your own, in the vast majority of cases bad credit scores are the result of poor money management. Regardless of whether your credit score is the result of bad fortune or bad money management, it may take professional help from a financial planner or financial advisor to get yourself out of this bad situation.

Building a good credit score starts with responsibly paying bills on time. If you’re already in debt, you may need some council on how to get your debt under control and begin making all of your payments on time. In some cases you may need help getting your debt consolidated and negotiating for a lower interest rate so that you can keep up with your payments.

Take the opportunity to ask experts questions. One of the most neglected financial tools that can help you build a high credit score and stay out of debt is budgeting. All successful companies work within a budget. A budget can help make you a financial success too. Learn all you can about planning out your expenses to keep them lower than your income and you will find that credit problems are a thing of the past.



By: Ashley Page

About the Author:

Lemuel Sangha

There are five factors that determine your credit score. Here they are listed with the approximate value they carry in the credit bureau scoring model.

1. Payment History (45%)

This is where the bureaus will weight negative credit items from your report. It will help to improve your score if you can clean your credit from negative items.

However even if you have bad credit listed here, if the account is more than 4 years old it will not be weighted as heavily. In addition having positive payment history here will reduce the impact bad credit items have.

2. Available Credit to Debt (30%)

This is how much credit do you have that is available. Are all your credit cards maxed out?

The bureaus like to see available credit. This shows them that you are a responsible user of credit.



3. Length of Credit (5%)

How long have you been using credit? If you are a newbie to the world of credit you can still have a good score.

You should not worry about this aspect when it comes to improving your score. Your accounts will age naturally and this will not make or break your score.

4. Credit Experience (5%)

What are you accounts on credit in? Do you only have credit cards?

The bureaus like your credit file to be diverse. Do not worry about this because it is such a small part of your credit score.

With time your accounts will become diverse. You will have an auto loan, credit card, boat loan and  etcetera.

5. Pursuit of New Credit (15%)

How often is your credit being checked? Are you frequently having your credit run?

It will help if you are not looking to open a new line of credit every month. However the bureaus do expect to see a number of inquires.

However there are individuals that literally open new lines of credit every month. These people will have their score lowered because there credit is constantly being checked.

These weight values are just estimates and not exact. Each bureau varies their scoring model and they choose to keep this information secret from the public. However by building positive payment history and removing negative accounts from your credit report you can increase your credit score dramatically.



By: Matt Douglas

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Casimira Viator

hymiehymie asked:

Attorney Jack Spleen of Blicker and Spleen, LLC, advises consumers on managing their debt. To see all Jim Terr YouTube videos, enter HYMIEHYMIE in search box. Thanks to Samsunshine and Rio Grande Insurance. ( category – political & other satire & comedy & commentary ) ( category – shorts & actor demos )

Linh Costa

Phillies Fan Forever asked:


I always see these advertisements for credit scores like “whats your credit score?”. Or something along those lines. What is a credit score and how do i find mine?

Lauren Wallace