North Country Business Blog

Posts Tagged ‘Credit score’

* Your credit score (or grade) is a number attached to your credit report that tells a lender how likely you are to repay a loan or make credit payments on time.
* The actual number is between 350 and 850, as the FICO score, and between 510 and 990 according to the Vantage Score.
* A higher score means a better chance to pass a credit application. It is important to be very careful while paying the debts you have, because your score changes according to the history that you will build. For example, if you stop paying a loan, your score will fall. Likewise, if you start paying all your bills on time, your rating will improve.

Most credit scoring systems consider at least the following factors:
* Payment History: Do you pay your bills on time?
* Amount of Debt: Does a lot of money, and in many different accounts?
* Extension of credit history: How long have you had credit?
* Types of credit: Do you have a mix of credit (credit cards, installment sales, mortgages, etc..), Or only one type of credit?
* New credit: Are you assuming many new debts?

If you already have or need to improve your credit score, consider the following measures:

* Pay your bills on time and without fail. Compliance and punctuality record and improve your credit score.
* Pay more than the minimum and reduce your debt. This reduces the finance charges and eliminate your debt faster.
* Minimize how much your card charges. An outstanding balance near the limit of your card can lower your credit score.
* Controls the number of accounts you have. It is good to have credit-based accounts, but have too much credit or request can lower your score. Open only the necessary accounts.
* Check your credit report once a year. By law you can request a free credit report from each credit reporting agencies every 12 months. Apply online or through each of the credit reporting agencies.
* Correct errors in your credit report. Under the Act, Fair Credit Reporting Act (FCRA) both the credit reporting agencies and companies that provide your information have a responsibility to correct errors in your credit report. If you find errors, contact the credit reporting agencies and the company that provided the wrong information (eg credit card) just to make the necessary corrections. Keep in mind that it may take a month or more to reveal the corrections.

Is your financial history, including debts, loans, accounts, credit cards, collections, outstanding balances and more. If your credit is good it will be easier to get financing with good rates of interest and if it is bad hurt your ability to get loans and services. When you apply for credit financial institutions and lenders analyze two main factors:

* Credit report : a record of your transactions and financial accounts, loans, debts, credit cards, collections, payments, outstanding balances, personal information and credit applications. The bad financial history can remain on your credit report for seven years or more.
* Credit score : a number, usually between 300 and 850, used by financial institutions and lenders to predict your likelihood to repay loans on time. Your score low if you have too much debt or do not pay on time and your money goes if you drive responsibly. A score above 700 is considered very good. A score below 600 represents a risk to the lender and can cause you to receive a higher interest rate or your application be rejected.