What's credit score?
Like at school the creditors give you a rating based on your credit reports, name credit score ! In the USA, three credit reporting agencies provides each credit report. -Experian-Equifax-TransUnion.
When you claim you yearly credit reports which are FREE, however you must claim your each credit score with minimal cost ! 2 companies generate each credit score: FICO Score & VantageScore.
Useless to say that it's very important to check your credit reports & your scores if you want to save your money !
1-Credit report determines credit score!
You credit reports are composed of 4 sections:
1-Personal Information.
2-Your credit history.
3-Public records & collection account.
4-Credit mix, a photo of different accounts you own.
Each sections can have errors, inaccuracies, outdated debt and others which affect differently your 3 credit scores !
You must check and dispute all 3 credit reports if you want to high your 3 scores at the best.
Useless to say you that you will save a lot of MONEY $$$$.
2-How credit score affect your life?
Your credit reports are important because they contain a lot of information which fluctuated your scores and affected your life !
-You can deny for a LOANS !
-You can deny for a CREDIT CARDS !
-Job offers
-Job promotion
-Renting (an apartment)
-Leasing
-To buy a car
-To buy a house
-Insurance (car & house premiums)
-Interest rates (subprime)
-Personal loans
-Student loans
-To apply for financial aid (FAFSA)
-Citizenship application
-Immigration
-To go away, a dealbreaker !
It's like a sword of Damocles above your heads !
3-Who uses you credit scores?
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Banks, Credit Unions
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Car leasing companies
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Credit cards companies, retail credit cards
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Insurance companies (Car, Home)
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Landlords
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Electric/Gas/Internet Utilities or mobile phone companies
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Employers
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Government
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Hospitals
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Attorneys
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Collections Agencies (Debt Collectors)
4-Who generates credit score?
They are 2 Credit Score Agencies with each credit score range ...!
A: FICO SCORE B: VantageScores
A-FICO Score Chart !
Like the school you have 5 Academic Grading (A-B-C-D-F).
A = 800-850--FICO Score {Exceptionel}
B = 740-799--FICO Score {Very Good}
C = 670-739--FICO Score {Good}
D= 580-669--FICO Score {Fair}
F = 300-579--FICO Score {Poor}
These scores must do a big difference for your Financial Freedom.
B-VantageScores range 4.0 (Scoring model 2017)
750-850 = Excellent
700-749 = Good…………
650-699 = Fair
550-649 = Poor
300-549 = Very poor
N.B. : FICO SCORE = 90% of market
VantageScores : 10% of Market (Link with Experian, Equifax, Trans-Union)
5-When your credit score changes?
Right away you need creditors, these report all new information to 3 credit reporting agencies which update your credit reports & necessarily fluctuated your credit scores go up and down !
Why you must dispute as soon as possible errors ?
Check Credit Report
SHARE with your parents and Friends!