Floyd Dorrance asked:


Have you ever wondered what exactly is up with”credit score”? This informative report can give you an insight into everything you’ve ever wanteto know about “credit score”.

Having a good credit score is very important in today’s society. It is something that many people should have. By having a good credit score,

applying for loans and unsecured credit cards is much easier.

If you already have a good credit score, you will want to raise it in order to obtain the best loan and credit card deals possible. If you have a credit score of 688 and the loan company will reduce interest rates if you get a credit score of 690. The two points can mean thousands of dollars in savings.

This is why it is very important for you toimprove your credit score even if you already have a good credit score. It will mean lower interest rates and also more chances of getting the loans you need.

There are several ways you can improve your credit score. Some ways take time to achieve and some take only a few weeks or even a few days to do. If you start working on it as soon as possible, you will see that it will be worth all the effort.

So, here are some of the ways you can raise your credit score.

The first method for raising your credit score is to check credit reports for errors. Even minor errors can hurt your credit rating.

Now that we’ve covered those aspects of “credit score”, let’s turn to some of the other factors that need to be considered.

If you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report. It is part of the law that the reporting agency should investigate and correct the errors within thirty days if there is any.

The next step on how you can raise your credit score is to pay off your balances every month. This can keep you out of debt and save a lot of

money on interest rate. Also, this will demonstrate that you can manage your debt effectively and increase your credit score.

By having only a few credit cards, two at most, will boost your credit score. Having five or more credit cards will in fact, lower your credit score. This is why it is important for you to have only two credit cards.

If you borrowed money before, it is important for you to pay it on time. This will have a positive impact on your credit score because it will show credit reporting agencies and also creditors that you can manage your debt effectively. However, if you have borrowed money before and is long overdue, you should pay it immediately. In time,

these old late payments will be deemed unimportant and it will expire.

Another way to raise your credit score is by managing your credit cards effectively. Don’t use your entire credit limit on each of the credit

cards you own. For example, if you have credit cards with a credit limit of 2000, 2500 and 3000 dollars, it is better to use 600 dollars on each card rather than 1800 dollars in one card. Always keep one thing in mind; it is best for your credit score if you only use less than 50% of your credit card limit.

These are some of the methods you can use to raise your credit score.

Following all these will ensure you that your credit score will increase and will result in better opportunities in the future.

Now might be a good time to write down the main points covered above.

The act of putting it down on paper will help you remember what’s important about “credit score”.

Gregg Pennington asked:


When you apply for credit, whether for a mortgage, an auto loan, or a credit card, your credit score will determine whether or not you can secure financing, and what type of interest rate you can get. While you probably have at least some idea of how good or bad your credit is, it is important to understand your credit score and how it is calculated.

A credit score is a three digit number that ranges from 300 to 850. Each of the three major credit bureaus use this rating system that was devised by the Fair Isaac corporation - commonly called a FICO score. Your FICO score is calculated by measuring three distinct aspects of your credit.

1.A third of the score is based on your payment history. If you have defaulted on one or more loans, or been more than thirty days late making payments on your credit accounts, your credit score will be adversely affected.

2.The next portion of your credit score is determined by your credit to debt ratio. If you have a number of credit accounts close to being maxed out, or if your total debt is too great, this part of your score will suffer. Conversely, if you keep your credit balances reasonably low, your score will be higher.

3.The final part of your credit score takes three separate factors into account: the length of your credit history, the amount of credit for which you have recently applied , and the type of debt you have. Of the three, the length of your credit history holds the most weight. If you have established a long history of repaying your debts on time, you will be looked upon as less of a credit risk. Another aspect of your credit score is the number of recent applications you have. The greater the number, the lower the score. Finally, the types of credit you carry will affect your credit score. A credit card from a bank would have a more positive effect on your score than would a store credit card. Applying for credit with a finance company could label you a higher credit risk, and may be seen as a last resort for someone who could not get a bank card.

Once your score has been determined and made available to prospective lenders, it is often the only factor considered in determining your eligibility for credit and the interest rate you will receive. A higher FICO score will translate into savings when you apply for credit. A lower score may increase your interest rate which may cause you to have to borrow more money than you would have otherwise.

Also, information provided by credit reporting companies is not always accurate. You should acquire a copy of your credit report for inconsistencies and inaccurate items. If you find any questionable items on your credit report, you have the right to dispute them and possibly have them removed.

Once you understand the effect that debt and use of credit has on your credit score, you can devise a plan to make any necessary repairs to your credit. As your credit score improves, you will pay less when you borrow money, and you will find more and more lenders eager to do business with you.

John G asked:


Do credit repair companies work? I want to build or buy a house for my family .This is no joke , I have seven kids . So it’s very important that I get a good P.M.I. and a good interest rate or I’ll never be able to afford it. I make about 60k a year , but one of kids had to have 5 brain surgeries right after she was born and this ruined my wife and my credit . Any suggestions would be appreciated. Please , serious stuff only.

Dewey Kearney asked:


OK. So you’ve ordered your credit report and seen your credit score. Now you see the cold, hard truth – it’s downright ugly and you wonder if you can really salvage your credit and ever get a decent interest rate on a home or car loan – forget about credit cards!

Take heart! With a few steps and a plan of attack you can improve your credit score and start on the path to recovery. Corporate trainer and credit counselor Bruce McClary of Richmond, VA offers 5 ways to boost your credit score.

Get It Right

Accuracy is the first thing to look at and is the fastest way to boost your credit score. Find and fix any mistakes that could be pulling your score down. Credit scores are based on the information contained in your credit reports. If you are one of those who haven’t seen your credit report in several years, make sure you order a copy of all three reports because each will be different.

Pay Your Bills On Time

Paying your bills on time helps you build and maintain a healthy payment history. Paying your bills on time is the largest factor in determining your credit score (at 35%). This is the best way to rebuild damaged credit. If you want noticeable results try paying your bills on time for 12 months. It will make a difference. If you don’t have a track record that goes back years and years but only a few months then you can get your score back within that 12-month period. If your history goes back further it could take longer but this is the biggest factor.

You can expect information about past-due payments to stay on your report for up to seven years. Your score can still improve as long as you make regular on-time payments.

Get Back – You Are Too Close To The Edge

If you think you are doing everything right, the next thing is to look at the amount of your outstanding credit card debt and your debt-to-credit ratio. If you reduce these debts it can make a significant difference, especially if you are near your credit limit on any of these cards.

You never want to be maxed out and the ideal limit is 35% to 40%. Keeping your debt spread out is better for your score than having all your eggs in one basket.

Next, focus on the amount of outstanding debt – this is 30% of your score. Put together the outstanding debt and payment history account for 65% of your credit score. Pay off your debt rather than move it around. A lot of people like to play the balance transfer balance game. Closing an account and transferring that amount means that you’re increasing your debt ratio.

Here’s a tip: Take the smallest balance and try to pay it off first, while making minimum payments on the others.Then when that balance is paid off take the next smallest one and double up on it, etc. etc. This gives you reachable goals, and psychologically it’s encouraging because you see yourself actually paying OFF the debts.

Commit For The Long Run

15% of your score is determined by how long you have had the credit relationship. This may sound silly, but don’t close any accounts if you plan to shop for a mortgage or other type of loan where you will need a good score. Opening new cards and closing old ones will negatively impact your credit score in the short run.

You want to have a couple of credit cards to develop a credit history, but adding more credit card debt can be dangerous. It’s better to limit your credit cards to two, keep the balances low and pay them off quickly. Be careful using them and equally important is having a savings account to fall back on.

Look Before You Leap

When you apply for a loan or a credit card, lenders pull your credit. These inquiries put a temporary dent in your credit score. The best way is to start your loan search by shopping and comparing rates rather than applying for a loan and deciding later.

Also it is best to do all your shopping within a month’s time. This can be very important. Mortgage and auto loans are counted as one inquiry if they fall within a 45-day period in the FICO scoring.

Inquiries have the least impact on overall score. Inquiries, types of credit and the number of loans play into the final figuring of your score.

Additional note though: If your credit score is significantly bad – 585 or below – don’t apply for multiple car loans or mortgage loans “shopping the rate.”Each credit pull will temporarily take your score lower, and lenders dealing with low credit scores typically charge around the same interest rate so shopping all around town and having your credit pulled is really not going to help you in the long run.

Having a bad credit score does not have to ruin your life. Make a plan to pay off your debts and stick with it! Within 12 to 18 months you’ll be surprised at how much you can significantly increase your credit score with good payment history and lowering your overall debt vs. income ratio!

William Brooks asked:


You are shocked when your loan is denied, or maybe you were approved, but the interest rate is much higher than you anticipated. How can that be you say? My credit score is good, I know I checked. Maybe it’s not as good as you think. It all depends on there you got it and what kind of credit score it is.

The fact is there are several different credit scoring methods. Credit scores calculated from the same credit reports can differ substantially from credit scoring method to credit scoring method. So how can you ever know what your credit score really is? Well, luckily, 75% percent of lenders use FICO scores exclusively and you can purchase FICO scores yourself–you just have to know where to go. (www.myfico.com)

FICO credit scoring is a numeric method of scoring your credit worthiness developed by Fair Isaac and Company. Your credit score is a number between 300 and 850 that tells creditors how likely you are to pay your bills. The higher the number, the better it looks to potential lenders and creditors.

The three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system, TransUnion uses the Empirica system, and Experian uses the Experian/Fair Isaac system. Despite each credit bureaus’ use of their own versions, all systems are based the original Fair Isaac FICO scoring method, so each credit score calculated with these systems are generally called FICO scores. However, although most lenders do use FICO scoring, some lenders may have their own scoring methods.

There is only one place where you can get your FICO score from all three bureaus and that is at www.myfico.com. If you order your credit score from anywhere else, again be aware that these scores are “FAKOs” (or “fake”) and can differ considerably from your FICO credit scores.

Adding to the confusion is the credit bureaus themselves. Recently, Experian revealed that the national average credit score of its consumers is 678. This is very misleading to the average consumer. When you buy your credit report and score directly from Experians website, you are getting what they call the “PLUS Score,” which is NOT a FICO score, and is NOT used by lenders anywhere. (Equifax is the exception–you can buy your FICO score directly from them at their website; however, the only place to get all three scores together is at www.myfico.com.) The 678 PLUS Score reported by Experian is actually the average of consumers’ PLUS Scores, not their FICO Scores.

Clearly, the PLUS Score (and all Non-FICO scores) are useless. Not only that, but such hype misleads consumers into purchasing their PLUS Score thinking that they are getting the same credit score that their lender will use. Non-FICO scores are worthless not matter what the credit bureaus or any website selling non-FICO scores claim. Even a few points difference in your credit score can mean confronting the reality of the loss of thousands of dollars out of youSr pocket–a loss that you probably didn’t plan for. The next time you want the most accurate credit score available, do yourself a favor and get the industry standard: the FICO credit score.