The FICO Score Misconceptions

There are many misconceptions about credit scores out there. There are borrowers who believe that they don't have a credit score. There are others who think that their credit scores don't really matter. These sorts of misconceptions can hurt your chances of gaining employment, obtaining preferred interest rates, and even your chances of qualifying for renting an apartment.

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.

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.

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.

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.

In The News:


pen paper and inkwell


cat break through


Debit Card vs. Credit Card, What Are The Differences ?

Ah, the "good old days". If you are a baby... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Credit Report And Correction Techniques

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

How Your Credit History Can Affect Your Life

Your credit history is an important aspect of your life.... Read More

Restore Your Credit Rating And Reduce Your Debts

Your credit rating affects many areas of your life. Opening... Read More

Identity Theft ? Guard Your Childrens Social Security Numbers

Identity theft is a growing concern among Americans, and rates... Read More

SuperCharged Secret 2, Credit Card Utopia

INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More

Preventing Credit Card Mess

Credit card debts problem is extremely common today. It is... Read More

Credit Report ? How to Improve Your Credit Score

One of the great mysteries of life is how the... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

Comprehending a Credit Report

Obtaining a credit report is an excellent way to begin... Read More

10 Signs You May Need Credit Counseling

Debt management programs can be of real help for people... Read More

Errors on Your Credit Report: What You Should Do

There are times when you may be turned down for... Read More

Five Reasons to Repair Your Credit Score - You Can Do It Yourself

There are multiple reasons that tell us why we should... Read More

I?ve Heard About FACTA; What Does It mean?

What FACTA means is that if you, as an individual,... Read More

Credit Repair Kit Sound To Good To Be True? It Is.

A lot of people have bad credit. It is unfortunate... Read More

Credit Cards - Why Prepay?

With prepaid credit cards, you get the practicality of plastic... Read More

Why Is It important!

Your credit is the most important thing you have other... Read More

Choosing the Best Low Interest Credit Card

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

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

How to Avoid Credit Card Late Fees

Everyone hates late fees and being late will cost you... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Saving Money with Credit Cards

Having a credit card is a wonderful convenience for those... Read More

Applying for Credit Cards Online

In the olden days, about 10 years ago, before the... Read More

Credit Damage: Getting Compensated for Your Loss

Until recently lawyers for victims of credit damage had little... Read More

Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF)

A check can be considered bad if it is bogus... Read More

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Fact: Over 150 million Americans have credit report with the... Read More

Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit... Read More