|
The truth is, of you have a bank
account and you pay utility bills, then you have a credit score, and
it matters more than you might think. Your credit score can be called
many things such as 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, or even apply to
some apartment complexes, your credit score is checked. Another
misconception is that employers check your credit only if you apply
for a job that involves handling money. The fact is that many
companies use credit checking as part of their standard background
checks.
DirectTV.com
Make no mistake, your credit report can be checked by anyone with a
legitimate business need to do so. Your credit score is calculated
based on complex formulas. Things such as your past financial
responsibilities, past payment records, credit limits, credit line
utilization, open and closed accounts, and public records are all
considered. 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. They use this information to approve
or decline a loan. Even if approved, your credit score can have a
direct effect on the interest rates you pay. 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, perhaps
unfairly, how you manage your life. Some employers find that if you're
poor with money, you have poor organization skills and no attention to
detail -- things that are a must in a corporate environment.
More
Credit - FICO Articles
The problem with credit scores is that there is quite a bit of
misinformation circulated about, especially through some less than
scrupulous 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. There are many free resources
on the web that will enable you to do just that.
Having a good FICO
credit score will help you get a 0% APR credit card.
Gatewaycomputers |
Diet Facts
You Should Know |
Home Remodeling Tips |
Volvo Dealerships
How To
Write a Resume
About the Author:
Lee has done it all in the lending business. From loan origination to
processing to underwriting, even owning a mortgage company. In
http://www.credit-restoration-kit.com , he exploits the secrets of
the industry to help fix credit, obtain mortgages, and improve
financial standing. Free articles, resources, and a blog. |
