|
|
Your
credit history. Three simple words that can determine the
outcome of our financial success. Your credit history
influences any and all decisions that a company or
institution will make when considering you as a credit risk.
Because of its importance, knowing and understanding what
your credit report says about you is vital.
Your Credit Report
Your credit report is a document that will show your
personal and financial information, good and bad. Your score
is based on this information and is called your FICO score.
The higher the FICO score the better. This information is
reported by all three major credit bureaus, Equifax,
Experian (formerly TRW), and TransUnion. Any time you apply
for credit of any kind, the lender will contact one of these
credit bureaus to obtain a copy of your credit report.
This all sounds pretty technical but what it boils down to
is this, your credit score will influence all future
financial decisions. That is why it is so vitally important
that you keep track of your score and read your report
regularly. Mistakes can and have been made. Keeping track of
your report will help you to find these mistakes and resolve
them in a timely manner.
What Your Score Means For You
Pretty much everything. As I mentioned above, your credit
score will influence the decisions that companies make when
you apply for credit. If your credit is less than perfect,
you may be turned down or at least given a higher interest
rate than someone who has a higher score. Problems can stay
on your report for as long as two years even after they have
been resolved.
|
Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
What Influences Your Score
Your payment history is one of the main influences. Have you
paid your bills on time? If you have routinely been late
with payments, your score will be negatively affected.
How much outstanding debt you have is also a factor. This
includes the outstanding balance on any loans you may have
as well as the credit limits on any credit cards you may
have. If you have multiple credit cards and these cards all
have high credit limits, even if you don't carry a balance
on these cards, the possibility still exists that you will
someday charge all these cards to their limits. This
possibility alone will negatively affect your credit score.
The length of your credit history is also a factor.
Surprisingly, no credit history can work against you. With
nothing to go on, the company has no idea as to just how you
will handle your credit.
Obtaining Your Report
Since January of 2004, all credit bureaus are required to
give you one copy of your credit report for free each year.
Although the credit report is free, they can charge you for
your FICO score. Contact any of the major credit bureaus
either online or by phone and see what their policy is.♦
|
