| It can be difficult. Currently, there is no law requiring that credit
scores on your credit report be released to consumers, and credit bureaus
do not include the scores on copies of credit reports provided to
consumers.
The three major credit bureaus, Experian, Equifax and Trans Union,
worked with the Fair, Isaac company to develop generic scoring models that
allow each bureau to offer a score based solely on their credit report
data on you. Because the scores are created differently by the credit
bureaus and used differently by lenders, Fair, Isaac and the credit
bureaus have said that knowing a score is of little use to the consumer,
and may simply be confusing.
However, Fair, Isaac is currently negotiating with the bureaus to
change contract agreements that could allow lenders to more freely
disclose credit scores to consumers. The company said it is responding to
increased public curiosity about the scores. Some lenders already have
started revealing scores to potential borrowers if they ask. And as
consumer awareness of credit scoring, and FICO scores in particular,
grows, more and more lenders are willing to discuss it.
All lenders should, however, tell you the reasons provided for a low
score if that score is a factor in delaying or denying your loan
application. A list of "score reason codes" comes with each
credit score report a lender receives. The codes explain the top reasons
your score was not higher, such as too many inquiries or delinquency on
accounts.
Check your credit report at Accurate
Credit Bureau. (Go To "Helpful Links" to click to that
site)
| Improve Your
Credit Report Score And Develop a Solid Credit History |
| The first thing to remember is that your credit score on your
credit report can vary from month to month-even day to day,
sometimes. This is because it is calculated based on the credit data
available for you at the credit bureau on the day the score is
requested by a lender.
But there are some specific ways to improve your credit report
score. First, when a lender receives your credit score, it includes
"score reason codes" to explain the top reasons your score
was not higher. These codes can give you an idea of how you should
start improving your score, such as closing unused credit accounts
or being more diligent about making payments on time.
Additionally, here are some general suggestions to help you
develop a solid credit history and influence your score for the
better:
- Pay your bills consistently and on time. And take heart-the
scoring models all take into account the fact that everyone
misses a payment once in a while. Also, negative information
loses its potency over time: a recent late payment is weighted
more heavily than a late payment four years ago.
- Check your credit report and remove any errors. By making sure
that only your accurate credit history appears on your report,
you ensure that the credit score it generates isn't lowered by
inaccurate information.
- Keep your debt reasonable. One rule of thumb: for a good
credit score, your account balances should be below 75% of your
available credit. For example, if you have a $2000 credit limit,
you should have a balance of no more than $1500.
- Maintain only a reasonable amount of unused credit. While it's
good to have a cushion of credit available, having ready access
to thousands of dollars of debt makes you a poorer credit risk.
- Avoid too many inquiries. Inquiries are interpreted as a sign
that you have been actively seeking credit, and may be in
financial difficulties or in the process of overextending
yourself.
Credit
Repair Home Links |
Order your materials NOW
|
