Here is some basic information on what you need to know about credit scores and what goes into determining your credit score.
What is responsible for determining my credit score?
Your credit score has become a very important focal point for a variety of things. Your score is now the main determiner of details like whether or not you will be approved or denied, if you will need to make a deposit or a down payment, whether you get favorable or unfavorable conditions for things like a mortgage or loan, and many other things. Your credit score can determine your auto insurance premium, deposits for utilities, for cell phones, renting an apartment or house, or even your eligibility for a job. If your score is less than stellar, life can be made very difficult.
Many employers are now looking at the credit reports for potential employees before they hire them. For this reason, you can likely see how your credit and your credit scores are going to play a really important role in nearly every aspect of your life. If you have bad credit, you could end up paying higher monthly payments, higher interest rate and higher premiums on many different things throughout your life including credit cards, loans and mortgages for example. There are a wide variety of different factors that can help to contribute to the determination of your credit score, and learning about them is an important part of understanding the effect that you have over your credit, and the effect that it has over you.
Whether or not you pay all of your bills when you are supposed to is going to be one of the biggest and most important aspects in determining your credit scores and credit report information. Most companies extending credits are going to report that information to the three major credit bureaus on a fairly regular basis. If you make any late payments on these bills, then that is absolutely going to have a negative effect on those credit scores as a result. The more recent that these reported late payments are, the higher the impact is going to be on your credit score as a result. Lending banks consider late mortgage payments to be more severe than late payments on credit cards, and so they often punish homeowners that have late mortgage payments accordingly with lower loan amounts as well as higher interest rates.
Your credit report is going to list any charged off accounts and collection accounts that you may have had recently or in your history. Having accounts such as this in your credit report is absolutely going to have an adverse affect on all three of your credit reports and scores, and your ability to get credit or loans in the future accordingly.
Continued in Part 2…
Photo Credits: polyscene
Related Posts -
Understanding your FICO Score pt 2 ... Continued from part 1: There are five different categories of data that this information can be grouped into. There are specific percentages that reflect how important each individual category is when it comes to determining your overall FICO score. New Credit Accounts This category also includes the number of...... -
6 Easy Tips on Raising Your FICO Score In today’s world, it’s easy to define your self worth by your FICO score. Whether you are trying to buy a house, get more credit or just get back on the right track, a low FICO score can really impact your entire life. However, there are some easy steps that...... -
Regularly Checking your Credit Score is Vital In these financial times which are clearly tumultuous and tight, it is absolutely vital that you take the time and make the effort to check on your credit report and credit score on a regular basis. This statement is more true today than ever before, because we live in a...... -
4 Easy Ways to Raise Your Credit Score For many Americans, dealing with a low credit score can be incredibly frustrating. It’s tough to get any loans and in some cases, it may even affect your prospects for employment. If you’re sick of dealing with a low score, it’s time to starting putting into motion some techniques that...... -
What Is In Your Credit Report? Although every one of the credit reporting agencies is going to format and then report their information in a different and unique way, all of the various reports are going to contain basically all of the same information and categories. Your SSN or social security number will be listed, along......
Related Websites -
Determining your BMI The BMI scale, or Body Mass Index scale is used by many doctors as a means of determining whether or not you are the right healthy weight depending on your height. For most people, the BMI score is accurate, but it is unfortunately not going to be accurate for absolutely...... -
Chase is Chasing My Business Away Earlier this weekend, my wife was saying that she's not so much fun any more. I think she was alluding to the fact that she's in her early 30s now and can't party like she could a decade ago. I said, "It could be worse, you could be a curmudgeony,...... - Test Your Credit IQ By Taking This Quiz. For those of you looking to see just how much you know about credit, you should take this quiz from Credit Karma. A good credit score can save you thousands of dollars on a loan, but many consumers donât know what makes up that three digit number or have any......
- Settlement Gives Everyone Free Copies Of Their Credit Report & Score. If you have already used up your free credit reports for 2008 (I have one more to use in the last quarter of the year), a settlement of a class-action lawsuit that was filed against Transunion lets you get your report and your score, as often as you want, for......
-
7 Ways To Improve Your Credit Do you find yourself in a situation where your credit history is less than desirable, and you need to improve your FICO credit score? If you’re like the majority of Americans, the answer is probably yes. The median or average credit score for borrowers in the United States is......
Categories:
credit score
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment