Results tagged “credit report” from Payday Loan Quotes Blog

Your FICO score is based on a mathematical equation. It is set up to evaluate information from your credit report and compare it against patterns of other credit users to identify your credit risk, that is, how likely it is you'll pay back loans. Scores may differ among the bureaus for three reasons:

1. Not all lenders report to all three bureaus.
2. Not all lenders report to the bureaus at the same time of the month.
3. The Fair Isaacs software for creating the credit score is different (but similar) at each bureau.

A relatively high percentage of credit reports contain errors. These errors can lower your credit score and cost you big bucks in terms of interest rates or qualifying for an interest-only mortgage loan rather than a 30-year traditional fixed-rate, for example. Therefore, it's a good idea to check your credit report for mistakes.

Look for the following:

• Identifying information that has you mixed up with someone else's activity
• Incomplete information
• Accounts that don't belong to you
• Payments reported as late but that you paid on time
• Debts paid in full that still show an outstanding balance
• Late payments and other negative events that took place more than 7 years ago, 10 years for bankruptcy

Four factors help a lender determine if it will lend you money and under what terms:

1. Your credit score
2. Your employment history
3. How much debt you have compared with how much income you have
4. Your credit history

You can order a free credit report from all three bureaus every 12 months at www.annualcreditreport.com or toll-free at 877-322-8228.

If you go online to view them, you'll have to know certain information contained in them - each credit bureau asks for different information to ensure your identity. Information includes things like the name of your mortgage company, if you have one, and former street addresses. Don't worry if you get an answer wrong. You'll be given a second shot at it.

$ Tip! To get the best interest rate when applying for a loan, first determine which credit bureau has the highest FICO score for you. Next, find a lender that uses that credit bureau report.

What would you do?
Mary is offered 10 percent off all sale items if she opens a new department store credit card. She figures it'll knock off $10 from her bill, not a bad savings. Every dollar counts when you're shopping for a new car, she figures. Don't do it, Mary! Every inquiry for new credit makes creditors/lenders uneasy, and opening a new credit card account will reduce your credit score!

It's easy to get into debt - just make a few big purchases on credit and make the minimum payments. The higher the interest rate, the faster you go down into the depths of debt, taking your credit score along for the ride. But you can turn it all around -- getting started is as easy as 1-2-3!

1. Pay off or pay down your credit cards several weeks before they're due.
2. Correct any errors in your credit reports - errors are common!
3. Drop your credit card spending down to 10 percent or less of your available credit.