Credit Cards Now Offer Free Credit Scores

Checking your current credit score should be an easy task, free to everyone. Using loans and credit cards is our current lifestyle and creditors use our FICO score to determine whether to loan us money or not. Knowing your score before you apply for loans can reduce the stress of the unknown.

Below are credit providers who offer free scores to their clients: Continue reading Credit Cards Now Offer Free Credit Scores

Did you know? Credit Card APRs…

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

Factors Impacting Your Credit Score

The following factors have an impact on your Credit Score. The credit reporting agencies use them as basis in their calculations.

  • 24-month review of your credit report and history of payment punctuality: DYK? even late payments on medical or cable and phone bills may affect your Credit Score
  • the total amount of your available credit: DYK? keeping your available credit higher than your debt helps improving your Credit Score
  • the total amount and the type of debt you have: DYK? real estate loans paid on-time may improve your Credit Score
  • the number of open and active accounts: DYK? most of the store credit cards report your credit / debit and payment history information which may have an impact on your Credit Score
  • the longevity of your relationship with your creditors: DYK? the longer your good standing relationship with your creditors, the better for your Credit Score

Insurance Scores

Insurers use your credit behavior as a basis for predicting the likelihood that you will file an insurance claim. (Transunion)

Poor credit behavior over a period of time, associated with a lower credit score, may raise your insurance rates for your car, home or, if you are a business owner , for your business. While a credit score is a key determinant of your creditworthiness, insurance companies also examine the information on your credit report.

A credit repair company, such as Fast Credit Solutions, can help you correct any inaccuracies, thus ensuring that your credit data is a true depiction of your credit record and increasing your chances of getting insurance under the best possible terms.

 

Keeping Your Credit Score High

Every creditor has its own definition of what is considered “good” vs. “bad” credit. With more lenders today keeping credit standards tight, you need to do everything possible to get your credit in great shape. A low credit score today does not have to be permanent. (TransUnion)

Call us to find out what you can do to enhance the health of your credit over time.

Continue reading Keeping Your Credit Score High

5 Steps for correcting errors from your Credit Report

Correcting errors on your credit report can be a long and tedious process. Here are a few steps that can help speed up the process.

1. Request a recent credit report directly from the credit reporting agencies Transunion , Experian and Equifax since you’ll need this report to send in your  dispute and to keep on hand in case you later need to take additional steps.
Make sure you order your report directly from the bureaus, not from a third-party reseller, and avoid relying on a report you got from a lender. Continue reading 5 Steps for correcting errors from your Credit Report