Your Credit Score

Credit scores: all lenders use credit scores to determine interest rates and credit limits.

The credit scoring system was developed in the early 1950's. However, it was not widely utilized until the early 1980's, when it was overhauled by Fair, Isaac & Company. At that time the 3 major credit reporting bureaus, Equifax, Experian and Trans Union, worked with FICO to create three separate credit models, one for each bureau.These agencies still use their own criteria to rate credit holders but the numbers have been normalized so that a score of 650 at Bureau A is equal to a score of 650 at Bureau B, etc.

Simply put, a credit score is a mathematical equation calculated by the review of a potential applicants credit history. It is based on factors such as income, instances of late or missed payments, types of debt owed, number of credit inquiries on file and the percentage of available credit that is actually being used.

Credit scores generally range between 300 and 800. The average credit score lies somewhere between the 600 and 700 range. As a rule, in order to receive a standard, lower cost loan a score of 620 or above is required. A high score indicates a low credit risk, meaning those with high scores find it very easy to obtain credit.

It is important that credit issuing companies indicate a credit holder's limit on their credit report. Failure to do so will usually result in a lower credit score. This is due to the fact that most scoring models plug in the highest balance from another listed account, when a credit limit is missing. This is an action which causes it to look as though a greater percentage of an individuals total available credit is actually being used. To avoid this type of situation, deal only with lenders who include this specific piece of information in their bureau reports.

There is a law which requires each of the three major credit bureaus to provide you with a no-cost credit report, once a year, should you request it. There is no such law pertaining to credit scores. Credit bureaus are allowed to charge consumers a "fair and reasonable" fee, for them.

There is an exception to the law above. Consumers are eligible for a no-cost credit score when applying for any type of home loan. As long as the mortgage lender uses a credit score when making an approval determination, he or she must supply that information to each applicant who requests it.

The questions you should be asking.

1: How do I order my free report?

2: What information do I have to provide to get my free report?

3: Are there other situations where I might be eligible for a free report?

4: What is a credit score, and how does it affect my ability to get credit?

For the answers to these and many more questions visit www.usacreditinfo.com

Cornelius P Crumpacker
http://www.usacreditinfo.com

---

Credit Cards for Home Business

It is wise for you to have a company credit... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

The Top 5 Secrets to Managing Your Credit Cards?So They Won?t Manage You

You've probably never heard of Frank X. McNamara, but he... Read More

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer... Read More

Do You Know Whats On Your Credit Report ?

It is important to know your credit rating for a... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and... Read More

Credit Repair Services vs. Do-It-Yourself Credit Repair

Millions of Americans suffer because of bad credit these days,... Read More

Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card,... Read More

The Three Largest Factors In Your Interest Rate

There are three major factors that affect how much you... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be... Read More

Credit Reports: Find out why you have been refused Credit.

You may already have 2 or more credit cards in... Read More

Useful Tips on Using Credit Cards

Here are some useful tips on using credit cards. Whether... Read More

Credit Suicide

Few things influence the home buying process more than your... Read More

Minimize your Risk for Identity Theft

Identity theft is the fastest growing crime in America. According... Read More

What Is the Fair Credit Reporting Act and What You Should Know About It

The Fair Credit Reporting Act (FCRA) and the recent update... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More

What is a Credit Report?

Ever wondered what is a credit report? If you've ever... Read More

5 Ways To Raise Credit Score

It's not as hard as you think to raise credit... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

1. Payment History -- 35%The number of accounts paid as... Read More

Automobile Credit Report

When applying for a loan to purchase a car, the... Read More

Credit Traps Snag Consumers

Nearly 20 years ago I worked for a small consumer... Read More

What is Credit Card and Debit Card Blocking?

Have you ever been told you were over your credit... Read More

Credit Reports Inside and Out

The Credit Report is like your scorecard in the lending... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More

Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how... Read More

Finance - Money, Money

Finance is a big word for some of us. It's... Read More

3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

In Less Than 30 Days. "What can you do to... Read More