Your credit score is one of the most important numbers in your life. This score is a number between 300 and 850 and is also known as a FICO credit score. FICO stands for Fair Isaac Company. Fair Isaac got together with 3 credit reporting agencies, Experian, Equifax and Trans Union in the early 1980’s and created this credit reporting score.
Each company uses somewhat different factors to determine your score, but a 700 from Equifax is equivalent to the same score from Trans Union.
These agencies look at your current debts, loans, and financial obligations, and then create your credit profile. They then take this credit profile and compare it to others in similar circumstances and they give you a rank based on those peoples’ past credit history and how likely they were to pay their debts. Your score is the supposed to represent how likely you are to repay your debts.
Companies and lenders have their own method for using credit score to issue you credit or services. Normally a person with a score of 650 and above has good credit. The 620-650 range, is considered average credit scores. People in the category, 620 and below, can still get credit, but the higher finance charges and terms.
It is always your right to obtain your credit report free of charge. To do you can visit the agency website and download an application, and then mail it, along with photocopied ID, to the agency. You should receive your credit report though the mail in a timely fashion. Credit reporting agencies also allow you to obtain your credit history instantly online, though a fee is charged for this.
You are entitled to get a free credit report from each of the three companies yearly. You can obtain your report from AnnualCreditReport.com
The information in your reports can help you located resolve any errors in the report. Many people get denied credit based on low FICO scores, to find out old information or loans are still outstanding.
It is fairly simple for a company to put negative information on your credit report. If there is incorrect information reported against you, you have the right to remove it.
You can either try calling the company directly to resolve it or write a formal letter.. When you dispute information a company has just 30 days to respond or they must remove it.. Many times a letter writing campaign to your creditors can work wonders on your credit score.
Your credit score is one of the most important numbers in your life. The higher your score, the lower interest loans you will qualify for potentially saving you many 1000’s of dollars in interest throughout your life.
Whatever route you choose, in terms of credit repair it’s essential that you examine your credit report closely once you get it. You should be looking for any inaccuracies in your report. If you find any, you have the right to request an investigation in writing from the agency. Once you have requested that a particular item in your credit history be investigated, the agency must respond within 30 days providing documentation of the entry in question. If they fail to do so, the entry must be removed from your credit report.
When requesting that something on your credit report be investigated, you should send any supporting documentation if you have it. Although it is not common, in some cases the agencies make outright mistakes, or confuse your information with another customer with the same name. If an entry in your credit history is being investigated, you may also request that the agency mark the entry in question as “under investigation” on your file.
Although it can seem like a cumbersome process, it is absolutely imperative that you obtain your credit history before you attempt credit repair. Without your credit history, you won’t know exactly where you stand, only that your credit is “bad.” What you need to know is how bad credit is, and why. For example, are you dealing with a single outstanding issue or multiple ones? How long has the problematic mark been in your credit history, and for long will it remain? Knowledge of these things is essential in order to begin the process of credit repair effectively. You may even consider working with a professional credit restoration agency, like Sky Blue Credit, who provide legitimate credit repair services and have been reviewed by Credit Zeal.
Your credit rating is one of the most important things in determining your economic status. With a good credit rating, you will have no problems obtaining loans, mortgages, credit cards, and more. But if you’ve missed payments with a creditor in the past, your creditor will report this to a credit reporting agency, which will make a note of it on your credit report. Once you have a bad credit rating, many doors will be closed to you: you’ll be unable to obtain most kinds of loans, and without a credit card you won’t be able to shop online, or rent a car. For these reasons it is important that you attempt credit repair as soon as possible.
