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Your ability to qualify for any kind of financing – from credit cards to auto loans to mortgages, depends greatly on credit scoring. Most creditors will draw your credit report to look at your FICO score.

The FICO score will be used to evaluate your qualification for a particular credit line or loan program and to calculate the applicable interest rate. Depending on their specific institutional needs, some lenders may use the highest FICO score or the middle score, or only one FICO credit score if the credit transaction is for a consumer purchase.

For instance, if you were to apply for a house credit card at a department store, they would run your credit profile (with your permission, of course) to obtain a FICO score. On the assumption that the store reports to only one of the three credit bureaus – as most department stores tend to do -, then the inquiry will go only to that bureau. The store would make its decision based on only one bureau’s information, and by using only the one FICO score.

The system works differently for mortgage credit. Banks report to all three credit bureaus (Experian, Equifax and Trans Union), so they would get three different FICO scores, calculated on three credit reports that the credit bureaus sent for scoring by FICO. Since there are three FICO scores, banks generally will use the middle or average FICO score. Depending on the type of financing you are seeking, whether it is for a new car, appliances, a credit card, or a home mortgage, your FICO score makes up a significant portion of the decision-making process. The FICO score will determine the premium rates you pay for insurance and the interest rate available to you on a loan.

Your FICO score is usually a composite of the following: Read more of this >>

By now everyone is aware of the Vantage credit scoring system developed by the three major credit bureaus Equifax, Experian and TransUnion that grades consumers on a grading scale of A-F. I have done extensive research but have yet to find out how lenders will use this score or what lenders will choose to use the Vantage score as opposed to the FICO score. Will they be flexible in their analysis and look at the actual score or just look at the grade of A-F.? Unfortunately, no one knows for sure. For now, when applying for a loan ask the lender which credit score they are using.
I recently refinanced my home and the lender used the FICO score. Well, I recently obtained a copy of my credit report and credit scores from the three major credit bureaus, Equifax, Experian and TransUnion. I have not made any late payments in the past 10 years; therefore I expected to get the highest credit score possible or at least very close to it. My scores were 760 and above. When I ordered by Experian credit score I wanted to order a FICO score yet I only had the option of getting a Vantage score. My Experian Vantage score was 819. To my surprise all of these ridiculous reasons were given why my credit scores were not higher:

1. Your report does not show real estate loans – this was incorrect, I have had a mortgage for the past 7 years.
2. Your report shows that available credit across your open revolving accounts is too low – I only have one credit card with a limit of $3,000. They are telling me that if I had more credit cards my score would be higher. Read more of this >>

There is much information out there concerning your Credit. But what exactly does your Credit mean? In this Article I will discuss three categories. The first is your Credit Score, the second will be your Credit Report, and third will be your entire Credit Report with all 3 Scores.

Your Credit Score is so important these days, that in order to just get job, you a had better of managed your Credit Score properly. Most institutions now look at your score as glimpse into how responsible of a person you might be. Your Credit Score typically ranges from 380 being extremely bad; to 820 being the best. The Bureaus all have a scoring system that dictates your credit worthiness. Whether you have revolving credit, or installment loans, it all determines your creditworthiness with all three bureaus. Your credit score could drop if you charge your credit cards are over 30% of the granted credit line. Your Credit Score will drop if you close out good credit, that has no balance owed. If you are late on a obligation, your Credit Score will suffer usallly a 20 point reduction, which by the way is a extremely big drop. This kind of drop could mean the difference of getting the best rate on a mortgage, or even getting the new job you worked so hard to get. Each of the Bureaus and there are three, Experian, Equifax, and Trans Union, all score your Credit based on your Credit History. Your Credit Score is so important these days that you need to know what it is with all Three Bureaus.

Your Credit Report, is what all institutions look at when it comes to applying for a laon, credit card, mortgage, insurance, or even a job as well. As a consumer you need to know what is on your Credit Report. When accessing your Credeit Report, you need to make sure you access a Tri Merge Report from all three Bureaus, and with all three of your scores. This is what most everyone looks at. If you are going get your credit report this is exactly what you need. You need to know what they are looking at. Read more of this >>

A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. But the bottom line is bad information can cost you money no matter who you get it from.

Fico score ratings are used for most mortgage lending, which means, you need to know what will hurt or help your credit score points. To make it clear, here are some of the most common credit score myths.

* Checking your credit report will hurt your credit score

Checking your own credit report and credit score counts as a soft inquiry and does not go against your score. However, if anyone else like a lender or credit card company is checking your credit report, this is considered a hard inquiry and will generally knock off about 5 credit score points.

The credit score rating system treats multiple inquiries in a 14-day period as just one inquiry. The system ignores all inquiries made within 30 days prior to the day the credit score is computed. So if you want to minimize the damage from credit inquiries, shop for a loan in that short period of time.

* Closing old accounts will improve your credit report score

Sometimes even lenders will tell you to close your old and inactive accounts as a way for improving your credit report score. Read more of this >>

Free Yearly Credit Report – You are looking to get a credit report but know know too much about them, you might find your credit score it a little unhealthy and needs some medicine? What about internet scams – there’s plenty out there – do you know how to dodge them? Here we debunk myths and show you tips and tricks to get your report and get on your way to financial security.

You may have read some info on what will and won’t damage your credit report and ultimately what the lenders look at – your credit score, I’ve done the research for you and can let you know a few secrets, firstly lookout from information you broker may provide to you, it it sounds like the following then find a new brokers.

By closing your bank or credit card account they can help your credit score? Actually it will do the opposite – it will damage your score. While It’s true that having too many open accounts can hurt your score, once you’ve opened accounts actually already done the damage. It is simply impossible to repair it by shutting the account, and you may actually make things worse. It works by the possible lenders looking at the difference between your available credit and what you’re actually using.

By shutting down these accounts will decrease your total available credit, making your balances loom larger in ratio to the possible amount of funds you can access this will have a negative effect your score. Closing older accounts will also make your credit history look younger than it really is which will also hurt your score. Read more of this >>

Perhaps it’s happened to you – a period of mounting medical bills, loss of wages, natural disaster and even identity theft. Any one of these things can cause a person’s credit score to plummet. Today, more than ever before, a decent credit score can be a positive force in every aspect of your life.

We all want to have enough money to pay our bills and have enough money left over to live. To accomplish this, we’re expected to manage our money and our credit wisely. Our credit score is a picture of how well we handle our debts. What are the typical purchases and decisions that are affected by a person’s credit score?

• Applying for a job
• Buying a car
• Purchasing a home
• Renting an apartment
• Applying for insurance
• Requesting a credit card
• Opening a bank account

This is only a short list of products and actions that involve a credit score. So, what is this mystery called Credit Scoring? It all starts with your “credit report”.

The three national credit reporting agencies are Equifax, Experian and TransUnion (with smaller ones including ChexSystems). Read more of this >>

As unbelievable as it may sound, most consumers are not aware of what their credit score is. For as valuable a piece of information as that is, it is almost unthinkable for one not to know what their credit score is, or at least approximately what it is. You see, your credit score is used for much more than just deciding whether you should be approved for a new line of credit. It is also used today by many employers who are checking out a potential new employee, and also by some employers as part of the employee’s annual review to ensure that the employee is not digging himself into a financial hole outside of work hours. Your credit score is also starting to be used by car insurance companies to determine what rates you should pay, where their studies allegedly confirm that people with lower credit scores file more claims and for more frivolous items.

Sometimes a credit score is also referred to as a FICO score. The term FICO comes from the Fair Isaac Company and is the method that is preferred and used by most credit bureaus to calculate a credit score.

Credit scores range from a low of around 350 (very bad credit) to a high of around 850 (excellent credit). An average score is between 650 and 700, which is where most consumers would not have big problems in getting approved for a new account. But if your score falls below the 600 range, you are going to have difficulty in being approved, at least at prime lending rates, for a loan, credit card, or new line of credit because potential lenders will view you as being a higher risk.

One thing you should note is that you should check your credit report at least once a year from each of the three major credit bureaus. It should come as no surprise to learn that the majority of consumer and business credit reports contain errors and mistakes, Read more of this >>

One of the biggest advantages of online credit reports is the convenience of being able to look at it on your own computer in the comfort of your own home. It can be done in minutes and is obtained through a third party, such as through Equifax, Experian, or TransUnion or through a reporting agencies’ own website. It is easy to do, you simply enter your personal information and answer any questions they may ask about your past and the credit report is yours!

You will need to pay for reports from the three, third party companies and you will need a report from each for a complete credit history. These may cost about $9 per report. However, this is a small price to pay for the comfort of knowing that your finances are in order and that no one is attempting to use your personal details to open credit accounts. These reports may be sent by mail or can be obtained online. It is worth looking at these credit-monitoring companies websites since they may have trial offers where they offer you a free credit report. This would allow you to obtain your report and you can cancel your account with them before you need to make any payments.

You will also receive your FICO score with the report, along with some advice on how you can improve this score. FICO is named from Fair Isaac Corp., which is the company that invented the score. It is a three-digit number that encompasses your entire financial history. Read more of this >>

A person’s credit score, often referred to as their “FICO” score, is an important tool that lenders use to help determine the creditworthiness of a potential borrower. If you want to make a large purchase, such as a house, for which you will need financing, you want your score to be as high as possible. To understand how to improve your overall credit rating, it is imperative you understand what factors influence your FICO score.

Payment History

Do you pay your bills on time? Most creditors, lenders, and service providers will charge a fee if you do not. Obviously, the biggest thing wrong with that is the egregious waste of money. What is worse in the long term is that after 30 days of nonpayment, the lender will likely report you to one of the major credit bureaus. (In the U.S., there are three such credit bureaus: Experian, Equifax, and TransUnion.) Considering that thirty-five percent of your credit score is based on payment history, it becomes clear how important it is to keep up with your financial obligations. No other single factor has that much influence on your FICO score.

Debt to Total Credit

The ratio of your outstanding debt to the total of your credit lines and loan amounts counts for thirty percent of your credit score. For example, if you have a credit card with a limit of $5000, and you owe $4000, your debt to total credit ratio is eighty percent. After paying down $3000 of the principle, your outstanding balance is $1000, giving you a ratio of twenty percent, which is much better. Read more of this >>

Debt to income is a ratio of your total monthly debt payments to your total monthly income expressed as a ratio or percentage. It is a rather simple calculation but it can be deceiving unless you include all debt and all income in the calculation.

The calculation of your debt to income ratio is a straightforward one. You simply divide your total monthly debt payments by your total net income (that is your income after taxes). While some debt is unavoidable and may even be desirable for achieving your financial goals the real question is how much debt is too much; just where do you draw the line. Obtaining credit is often a function of a loan officer calculating the debt to income ration as a way of determining your ability to meet new obligations. Too high a debt to income ration will also have a negative impact on your FICO score, often making credit obtained more expensive than it needs to be. Below I suggest categories for inclusion in calculating your debt to income ratio to see where you stand.

Monthly Debt Payments to Consider: Read more of this >>