Credit Score Overview
A credit score is not the amount of purchase that you incurred with your credit card and neither does the term refer to the points that you save for every purchase that you make with the credit card. This is not the meaning of a credit score.
Although it does involve credit per se, it does not only refer to credit cards but to credit in general, or in more common terms, a loan. A credit score is the numerical product of your credit history, from the loans that you incurred in college to the purchases that you make with your credit card. All are being recorded and filed under one credit history that can come back and hunt you if you are not careful.
A credit score is used by banks and lending companies to make decisions on your loan applications. With a not so good credit score, you may get rejected for a loan or if you are lucky will be given a fraction of the amount that you are asking, for a higher interest rate and a shorter payment period.
A credit score, you see, determines whether a person is reliable enough to be given the money to as a loan. For although, they will be earning from you through the interest rates that they put on the loan, banks and lending companies are still cautious because they do know that they cannot just lend their money to people they don’t know if able to handle money.
A credit score depends on a lot of factor. One of which is your reputation as a borrower. Are you always late in your payments for your credit card? Are you always knee deep in debt because you cannot seem to get around to paying each one until the interests were just too high?
Do you have maxed out credit cards? Have you had any other credit or loan that you have paid for or are still paying? How many are they? Have you had any problems paying for your loans? These will figure in the credit score that you will have.
Other considerations that make up your credit score is income that you are receiving currently. People who have high income are generally perceived as someone who can handle a loan. Another factor besides the ability to pay factor is the amount of debt that you have. If the bank feels that it is too much debt for one person, they can easily reject your application.
There are many ways to get a credit score. The industry standard is the FICO score, named after its creator Fair Isaac Corporation. FICO score is being used by credit reference agencies, that will gather the materials about your credit history and then determine from their the credit score. Some use their own scoring systems that are comparable with the FICO score.
The FICO credit score can now be determined by purchasing it over the internet through the website of credit reference agency, Equifax. The fee is $12.95. The other two credit agencies, TransUnion and Exparian are also selling their own score for roughly the same amount although TransUnion packaged it with their credit history report that people can purchase online.
So now you know what the meaning of a credit score is? Let’s hope you will work on your own credit score.
For more information on credit scores visit Stuart Drossner and his blog at Stuart-Drossner.com.
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Court decision could allow Harrah's to back out of deal to …
Bank of America, foreclosure/BK help needed in TX - Loan …
By then we will be 4 months behind and definitely in foreclosure because things go fairly fast in Texas. Due to the medical debt , credit cards, car payment and house, we are left with a couple hundred dollars a month and nothing at the end. …. I’d say stop paying the mortgage , pay off other things or stash cash for your move or any expenses such as the BK filing. It will get more effort from BofA. Then depending on what you are doing with the BK (BTW, if you try for an …
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Bank of America, foreclosure/BK help needed in TX - Loan …
Today’s Opinion Picks September 15, 2009
On the fiscal side, Barack Obama is presiding over the biggest peace-time government deficits and public debt build-up ever. According to my back-of-the-envelope calculations there is about a 10 percent of GDP gap between the medium and ….. El-Erian said the bankruptcy of Lehman Brothers Holdings Inc. in September gave the financial markets a “cardiac arrest” that accelerated the credit -market crisis. That week, worried about a breakdown of the banking system, …
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Today's Opinion Picks September 15, 2009
How to Find Free Online Credit Reports
A person’s credit history is important, because it affects their ability to get a mortgage, car loan, personal loan, insurance, and sometimes even a job. Qualifying for any type of financing requires information from credit reports, and any negative information can cause interest rates to rise, or even disqualify an applicant from getting needed funds.
Knowing what is included on your credit report is important, not only so that you know what information potential lenders will see, but because monitoring your credit information will alert you to possible credit fraud or incorrect information. There are many companies online that claim to give away free credit reports to anyone who wants to see their credit information, but in reality, these credit reports are not actually free.
Even companies well-known for providing free credit reports do so at a cost. Technically the credit report is free, but users have to sign up for the company’s credit monitoring or other credit related service to view their “free” credit report. It is normal to need to provide a credit card number on some sites to prove your identity prior to receiving a free credit report. It is important that after you receive your free credit report that you simply monitor your credit card statement for any additional charges.
For most people reviewing a copy of their credit report once a year to check for possible fraud or inaccuracies is enough to safeguard their credit, However, there are circumstances when it is important to get updated credit information more frequently.
People, who have lost financial documents, credit cards, or other personally identifying information, are at an increased risk of credit fraud. This can also lead to identity theft an increasing crime in the US. Consumers who are planning a major purchase such as a home or car may also benefit from more frequent monitoring in the months before their purchase.
If you are looking for a truly Free Credit Report please visit www.CredMax.com and visit the Free Credit Report Section. CredMax.com also provides articles, news and how to guides for increasing credit scores.
Obama picks credit card reform over housing - The Red Tape …
Bankruptcy mortgage reductions – known by the pejorative term “cram downs” by the banking industry — could help 1.7 million consumers avoid foreclosure , according to the Center for Responsible Lending. …… the difference between owing mortgage money and owing credit card money is… if you work and pay your mortgage … it will eventually get paid off. If you are working and pay your credit card… you still will be in DEBT ALL YOUR LIFE… credit card companies are …
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Obama picks credit card reform over housing - The Red Tape …
Talks on mortgage relief appear to break down as credit unions …
April 30th, 2009 Senate votes down foreclosure billWASHINGTON — The Senate has defeated legislation that would have let hundreds of thousands of debt -ridden homeowners seek mortgage relief in bankruptcy court. …. is considering consolidating the operations of part of Blooming.. http://bit.ly/8RRzm; foreverbetter Marriage proposal for the Miele Cat & Dog vacuum; sashae Health Care - The Young and the Wealthy Subsidize Everyone Else in Obama’s PPIP for Heathcare Proposal …
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Talks on mortgage relief appear to break down as credit unions …