Did you know your credit card may use 2 different APRs, a standard one and a higher, Penalty APR (also called Default APR)? If you are more than 60 days late on your monthly payment, the creditor may apply the higher Penalty APR to all your outstanding balances. So try your best to pay your bills on time!
Do inquiries affect my credit score?
Inquiries have a relatively small impact on your credit score.
The only inquiries that might affect your credit score are those initiated by you for specific credit transactions including mortgage, credit card, auto applications, and insurance.
Multiple inquiries that may occur when shopping for the best rates should not lower your credit score. Most of the methods used by the credit bureaus involve steps that make sure your score will not be negatively affected.
What is VantageScore?
VantageScore is the only model to be developed jointly by all three national credit reporting companies.
VantageScore 2.0 was created using data blended from two different timeframes, and pulled from the most recent lending environment, 2006-2008 and 2007-2009. It uses a national sample of anonymous credit information of approximately 15 million consumers.
The VantageScore ranges from 990 to 501 and it is grouped as follows:
- A: 901-990
- B: 801-900
- C: 701-800
- D: 601-700
- F: 501-600
Credit Reporting Agencies
The three main credit reporting agencies are:
Lenders and insurance companies can access the information reported by either or all of the credit reporting agencies before they provide you with rates and terms for your loan or auto, home or business insurance. Not all lenders and insurance companies use the reports from all three agencies. Continue reading Credit Reporting Agencies