Credit Reports & Scores Articles

Annually, eight million people file complaints about their credit scores Forty million reports have errors on them, created by a small monopoly of companies (including Experian, TransUnion and Equifax). The majority of credit reporting services require you to subscribe either online, the preferred method, or by mail. Lenders look at the range into which your score falls, and differences of a point or two matter very little. Given your credit history, you probably have apocalypse insurance and will pay off your loan no matter what happens. Keep in mind that your skilled, strategic use of credit protects your high score. You lose points for paying cash wherever you go. For example, a 721 credit score or a 722 credit score puts you in the category of a low risk borrower. If you have scored 675 to 719 your credit remains satisfactory, but you have fallen out of the big leagues. If your FICO totals between 620 and 674 you will not qualify for some kinds of credit. Premier credit cards will decline your applications, and many cautious lenders will reduce your spending limits. Credit card issuers also may charge higher annual fees and make you pay larger penalties as a result of your poor payment history. If your FICO hovers below 620 you become a sub-prime borrower, facing severely limited credit options and enduring considerably higher interest rates. In addition, medical debts that had been considered delinquent but have since been paid by insurance will be removed from credit reports. With a considerably below average FICO score, you also become a target for predatory lenders, the kind who assured mortgage borrowers, Of course, you can afford that million-dollar house on your hundred- dollar salary. A below average credit score warrants careful examination of your FICO report, suggesting some information may be outdated or incorrect; and your low score may warrant some work with a debt counselor or financial planner. Most of the
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