Why You Need to Do a Credit Rating Check Essay

A credit score is a numeric expression that helps lenders estimate the risk of extending credit or loaning money to people. The most common credit score is the FICO score, a measurement based on five factors that affect the credit score:

Bad credit reports can affect ones’ life in several negative ways. With a bad credit report and a low credit score, it is harder to receive a credit card, an automobile loan, a mortgage, or possibly a job. It is important that one is always aware of the credit decisions made. Paying bills late, maxing out credit cards, and filling out too many credit applications in a brief period will also have a negative impact on the credit report. To keep a good credit report, one should pay bills on time and apply for credit sparingly. Last, but certainly not least, one should check their credit report annually! A free credit report is available from each of the three credit reporting agencies each year. This is something one should take advantage of since it will help them judge whether they are managing their credit wisely. It is imperative that one keeps a good credit score. If not, one could miss out on many opportunities. For example, one may find an opening for their dream job that they are qualified for, but the negative credit report causes them to not get the job. Do not let this happen! Maintain a good credit report and opportunities like this will not pass by!

How to improve your bad credit over time, is by pulling your credit report. You can gain the knowledge needed to fix your problems. “Credit reports are available through one of the three major U.S. credit bureaus: Experian, Equifax and TransUnion. Because of a change of law in 2005, each of the credit bureaus must provide you with a free credit report once a year, through www.annualcreditreport.com (Woolsey, B., 2016).

Making mistakes when it comes to your credit is a lesson that many people learn the hard way. Constant phone calls, mail, and threats can make a tough financial situation worse. Either how well or how poorly you manage your debts and finances are available to creditors to see when you apply for credit, such as for a retail store card, or even an auto or home

Credit scores are numbers resulted from a statistical analysis of a person 's credit history. They represent the creditworthiness of that person. Credit scores are primarily based on credit report sourced from credit bureaus. Lenders use credit scores to a

Free yourself from the illusion of authority. Many people make the mistake of giving too much credibility to the content of their credit reports. The power of the credit bureaus can be intimidating; we might believe

I think as a patient, or consumer in general, it is extremely important to monitor your credit history. There are ways to do a report, for no charge, to check your credit history on the 3 different credit reporting agencies. You also need to review your monthly credit card statements to make sure that what you purchase, is what you pay for.

- Most important grades you’ll ever get. Your credit score sets the interest rate on any money that your borrow.

The first important thing you should know is that your credit score plays a hug role in getting mortgage. All homebuyers must have a minimum credit score of 620 to qualify for mortgage loan. Your credit score also determines the banks risk factor. Banks and lenders see individuals with good credit score as low risk factors. Having a good credit score will often give you more options in lenders.

During the Financial Fitness module I learned more about my credit score and how to improve it. I also learned the different ways a credit score is made up of. A credit score is usually used to see how likely you are to pay back money that you owe. Usually banks use them to issue loans or credit card companies’ use it to decide if they want to give you a credit card and how much they want to set your limit to. It is important to build your credit score up because it will benefit you in the future when you need to borrow money or even get a job. Some jobs check your credit score before they hire you. Also if you don’t pay a bill your credit score will go down after 30 days past the due date. Some advice I learn was to get a credit card when

Before a lender considering your loan application, some key aspects are taken into account. The lender will try to confirm the details of your credit report. Also check your financial status and repayment ability, they will

Your credit score plays a major role in the mortgage loan process. Your credit score is compiled of a mix of factors but it mainly monitors your relationship to debt. If your credit score is low, all hope isn't lost. Work on your credit and build it up. If you get rid of all of your debt, eventually, your credit score will disappear and count as no credit score. While it is good to have all debts paid off, if you need a loan, mortgage officers frown on not having a credit score to check out how you manage debt. If you don't have any debt, this is good. However, get a credit card with a low-interest rate. Use the credit card for small purchases like groceries and gas. Make sure to pay it off every month and this will help to contribute to a great credit score.

A bad credit score—anything less than about 650—can make it extremely difficult to obtain a mortgage. A potential borrower's payment history is important to banks because it displays to them how likely it is they will get their money back. Banks are businesses too, so they have to ensure that their investments are savvy.

Why you need a good credit score and simple actions you can do to improve it

You work hard to maintain a good credit score by paying your bills on time and keeping payments low enough to manage your monthly budget. Unfortunately, some things may adversely affect your credit and you may not even realize it.