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Your Credit Score

If you have not heard of fair Isaac Corporation, you will soon because it is the most widely used software calculator. They use a new, unique mathematical formula developed by the corporation and report to the three major credit agencies.

Your credit score will determine the type of financing you will obtain or not obtain. You may obtain financing but at a higher rate.

The company reserves the right to disclose how the information is formulated and will reveal this information at a later date. However, they have stated it is based on a formula which takes into consideration the longevity and payment history. Everyone is evaluated on a case by case basis.

If you are interested in learning more about FICO, you may want to contact them directly and request more information. There are some companies that will look at the ‘whole person’ rather than numbers and scores.

There are ways that you can work on improving your score. You may want to look at these closely as there are ways that you can improve your score.

The first step is to get a copy of your report and study it! If there are any errors, work on getting them correctly. Contact the agency directly and let them know. If they do not respond or fix it, send them a letter.

Of course, you need to pay your bills on time. If you are not able to, call your creditor and let them know why. Most creditors are willing to work with you if you let them know what is going on.

You may want to purchase a short term loan and pay it back immediately. This will help improve your credit score.

Keep your balance below the limit. If you have a limit of $10,000.00 try to keep your balance low at all times, around $2,000.00 this will show that you are responsible with money, and are able to manage your money.

Shop around for lower interest cards. You can always transfer your balance to another card with a lower interest rate. This will help you because you will pay a lower interest rate.

Creditors like to examine and consider your overall credit value which is dependent upon whether you pay your bills responsibly, how long you have lived at your address, and what your overall credit history is and has been.

It is best to use your credit card for an emergency. This is the best way to think of credit cards and then in turn, pay it off as soon as possible.

Keep in mind that it is in your best interest to work on improving your credit score, so that you will pay lower interest rates and can obtain credit when you need it.


How To Repair Your Credit Score

You have most likely been inundated with credit card information, credit information and ways to repair your credit. There are many advertisers stating that they can repair your credit and help improve your score. You most likely have received flyers and brochures in the mail that advertise these services. The internet has a multitude of websites advertising credit repair companies and credit information and services. It sounds hard to believe, doesn’t it?

Well it may be. The federal trade Commission is involved and they have released a statement stating that essentially, if it sounds too good to be true, then it is not! They will charge you upfront anywhere from $50.00 to thousands of dollars and then disappear!

It is a scam and they are attempting to warn people about it. If you have credit problems, the last thing you need to pay this kind of money for nothing.

Keep in mind, that there is no quick fix to improve your credit score or improve your credit history. Most likely, if a company is advertising that they can do this, it is a scam. So proceed with caution. There are ways that you can work on improving your credit score. It does take a great deal of effort on your part, but you can do it.

If you do not have the time and are interested in getting help from a credit repair company, take some precautions. Check out the company first to see if there are any complaints listed at the Attorney Generals office, Better Business Bureau or Consumer Rights Agency. If there are complaints, then chances are this company is not reputable.

Be on alert for grandiose statements like they can erase your bad credit history, or improve your credit score overnight. This is illegal so you most certainly do not want to request their help.

The credit repair company should only charge you a small amount of money. If they ask for a lot of money up front, beware! Sure, they may offer guarantees, but they may disappear and you will never be able to find them to obtain that guarantee!

Keep in mind, that there are honorable agencies and clinics that will help you. Many of them offer advice and free services. However, there have been many fraudulent companies and most states have very strict laws now about operating practices. There are now agencies in place that are investigating these credit repair companies to assure that they are advertising what their actual services are and are truly legitimate.

Take the time to investigate a company thoroughly before paying them to assure that they are a legitimate, reputable company. Make sure you know what your rights are.


Where Are You On The Credit Score Range?

There is a range used to define credit scores that the credit bureaus use. The score can be between 300 and around 850. The Fair Isaac Corporation uses the same type of scoring system.

The range is quite diverse. You will want to have a higher number such as 700-800 so that you can obtain credit easily. If you have a very low score such as 300, you will have a great deal of difficulty obtaining credit.

However, take this information with a grain of salt. The score does not provide the entire picture. Most creditors look at a multitude of variables before making a decision about credit worthiness.

If you have a good credit score of about 700 or higher you are considered an excellent risk and will most likely be granted credit with very low interest rates.

Even if you have a score in the 600 range, you should not have any trouble obtaining credit. You should not have to pay high interest rates for a loan.

The range of 600 to 680 is considered average. The majority of people across the country have this range. You will most likely obtain credit approval but may have stricter rules and standards for the loan.

A low credit score is a bit more complicated. If you have a score below 600, you certainly can get a loan but at a higher interest rate. There are certainly lending institutions that will offer you loans, but they will be on their terms. You may feel like they have all the power, and actually they do because they can deny you credit.

If you have a very low score you may have some trouble obtaining credit but, you will most likely find a lending institution that will lend you money, or give you credit, for a price. A very high price! You may think, is it worth it?

It may not be. You may want to wait and save your money rather than borrowing from them. Or, you may want to improve your credit by borrowing from them and paying them back right away, so you do not end up paying high interest charges.

Or, you may want to pay more than what the monthly requirement is. The credit card company mostly likely will keep track of the payments you make and will hopefully take notice when you pay more than just the minimum requested. You want to show them you deserve more credit since you voluntarily pay more than you would have to and that you are a good credit risk.

Some people say that credit cards are a necessary evil because you never know when you may have an emergency and not have any money.

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