You don’t have to be a finance expert to realize your credit report is critical. Unless you pay for everything in cash, bad credit can be quite an annoyance. Fundamentally, to borrow any amount of cash from a lender, you have to fill out an application. At this point, they’re going to run some background checks on you and they’re going to completely analyze your credit history.
Your credit score is a 3 digit number that’s created by the three main credit reporting firms. They’re TransUnion, Experian, and Equifax. Creditors report to them as consistent intervals. Some may report monthly, some may report quarterly but at some point they do report to the credit firms. The big 3 then investigate all the data and using their own calculations to ascertain a score. As there is always new info being reported your score is consistently changing.
So you finish up with three different credit scores but they should all fall in the same general range. The bank you are attempting to get a loan from will base a lot on these credit ratings. It’s essentially an outline of your credit worthiness simplified into a 3 digit number. A low score will indicate to them that it is dangerous to loan you money. At this point, they will deny your loan or stick you with a high rate to regain their losses if you default.
This may can end up costing a lot of cash in the long run. Bothering to rebuild your credit is worth it and it will make things easier.
Since your score is consistently changing you eventually decide what gets reported by your actions. Take some time to build good credit practices and begin reporting positive information. You can also benefit from the services of a credit repair company.
If you need help improving your scores please feel free to check out my site on credit repair. You may also want to read our Sky Blue Credit Repair reviews to find out more about the best repair company in the industry.
categories: credit score,credit rating,credit history,credit repair