Money Advice Guide

There are many misconceptions about credit scores out there. There are people who believe that they don’t have a credit score and some who think that their credit scores don’t really matter. These sorts of misconceptions can hurt your chances at jobs, good interest rates, and even your chances of getting an apartment.

The truth is, if you have a bank account and bills, then you have a credit score - and your credit score matters more than you might think. Your credit score may be called many things, including a credit risk rating, a FICO score, a credit rating, a FICO rating, or a credit risk score. All these terms refer to the same thing: the three-digit number that lets lenders get an idea of how likely you are to repay your bills.

Every time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartments, your credit score is checked.

In fact, your credit score can be checked by anyone with a legitimate business need to do so. Your credit score is based on your past financial responsibilities and payments, and it provides potential lenders with a quick snapshot of your current financial state and past repayment habits.

In other words, your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially - and give you better or worse rates when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money.

The problem with credit scores is that there is quite a bit of misinformation circulating around, especially from some unscrupulous companies who claim they can help you with your credit report and credit score - for a fee, of course.

From advertisements and suspect claims, customers sometimes come away with the idea that in order to boost their credit score, they have to pay money to a company or leave credit repair in the hands of so-called “experts.” Nothing could be further from the truth! It is perfectly possible to pay down debts and boost your credit on your own, with no expensive help whatsoever.

But before you start boosting your credit score, you need to know the basics. You need to know what a credit score is, how it is developed, and why it is important to you in your everyday life.

Lenders certainly know what sort of information they can get from a credit score, but knowing this information yourself can help you better see how your everyday financial decisions impact the financial picture lenders get of you through your credit score. A few simple tips are all you need to know to understand the basic principles:

So where can you get these simple tips?

You will want to read my other article at:

http://new2credit.com/creditreportintro.htm

And then sign-up for the free ecourse at:

http://new2credit.com/creditscoretips.htm

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Levi Bloom runs New2Credit.com where you
can get info on credit cards and credit reports.
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Tags: bad credit, credit card, credit repair, credit report, credit score, debt, improve credit, loanbad credit, credit card, credit repair, credit report, credit score, debt, improve credit, loan

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One of the biggest advantages of online credit reports is the convenience of being able to look at it on your own computer in the comfort of your own home. It can be done in minutes and is obtained through a third party, such as through Equifax, Experian, or TransUnion or through a reporting agencies’ own website. It is easy to do, you simply enter your personal information and answer any questions they may ask about your past and the credit report is yours!

You will need to pay for reports from the three, third party companies and you will need a report from each for a complete credit history. These may cost about $9 per report. However, this is a small price to pay for the comfort of knowing that your finances are in order and that no one is attempting to use your personal details to open credit accounts. These reports may be sent by mail or can be obtained online. It is worth looking at these credit-monitoring companies websites since they may have trial offers where they offer you a free credit report. This would allow you to obtain your report and you can cancel your account with them before you need to make any payments.

You will also receive your FICO score with the report, along with some advice on how you can improve this score. FICO is named from Fair Isaac Corp., which is the company that invented the score. It is a three-digit number that encompasses your entire financial history. This score is based on information from the three, credit monitoring companies and includes all information from your payment history from loans or credit cards to bankruptcy filings that have been made. The lower the score the better your credit history and it is surprisingly important since many business that you would never imagine needing it, use it to find out about your financial status. Obviously lenders use the FICO score to assess you as a potential borrower. However, did you know that employers may access your score as well as landlords who may wish to see if you are likely not to pay your rent and if they need you to put down a larger deposit, or even insurance companies. These companies use the score to assess the risk you may be as a potential client and there fore set the policy prices accordingly.

As you can see, the FICO score is used by many different people who want an idea of your finances. It may not be entirely accurate, but it is most often used due to its ease of use, as most companies won’t want to read numerous credit reports of all the people that they deal with. It is therefore critical that you do everything you lower the score and keep it as low as possible. Many years of buying on your credit cards without having the money to pay off the account can leave you with a high number that will be held against you long after you have forgotten what you bought. But there are ways that you can improve your credit rating and therefore FICO score.

First of all, always dispute things that are not accurately depicted on the report. For example, if there is a record of late payments on a credit card account but you don’t think it is true contact the creditor and credit agency by post. They will have to investigate the matter and if the creditor does not get in touch within 14 days, the bad credit will be dropped from your report, instantly improving your score. Easy isn’t it! In fact, disputing any mistakes is the easiest and most direct way to lower your score.

Other ways your FICO score may be lowered include spreading the cost of your credit card debts especially with the increase in 0% on balance transfer deals that are available today. Also, close any accounts that you are not using.

Since your credit score has such a strong influence during your life, it is advisable that you obtain a report once a year so you can check for any mistakes and make sure that you are doing everything possible to improve your rating. This is the first step you can take to ensure that you have a solid financial future.

Still need more information? Then visit http://www.essentialcreditreports.com for more of my articles.

Tags: Bad Credit Repair, credit repair, Credit Repair Services, Credit Report Repair, free credit repairBad Credit Repair, credit repair, Credit Repair Services, Credit Report Repair, free credit repair

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