Understanding Your Credit

Your credit is vital to obtaining financing of almost any type in America and understanding how it works can be a real asset in for today and in your future.  When you have good credit, financing is usually easily attainable.  On the other hand, when your credit is bad, you either are denied credit or pay dearly for it.  Let me help you try and get a better understanding of what good credit really is and the kind of information contained in a credit report.

Your credit score is comprised of 3 different credit scores that range from 300-850.  The 3 main reporting repositories in America are Equifax, Transunion, and Experian.  These repositories basically act as information gatherers and they project a credit score based on the Fair Isaac Credit Score Model hence the term FICO score.  This model was established to rate your credit information by using a numerical figure or credit score.  Underlying factors that affect your credit rating are things like delinquencies and derogatory reported information, the number of accounts with delinquencies, the length of time credit has been established or since derogatory items have been reported on credit, proportion of balances to credit limits etc.  For example, having an item that is due on the 1st but paid on the 15th might earn you a late payment fee from the creditor but will not negatively affect your credit rating.  Only items paid over 30 days late affect your credit report and the penalty is hefty as one 30 day late can cost you up to 50 points on your credit score!   3 easy rules to help build or maintain your credit rating is to remember not to have any collections, never be past 30 days or more late on a bill, and to never use more than 50% of the credit allotted to you by your credit grantor.  If you follow these 3 easy steps, you are likely to have and maintain a good credit rating.

Credit scores are very important but it is also important to understand what appears on your credit report besides the actual score.  The following information appears on most credit reports today; creditor trade line information, residence and employment information, judgments, recent credit inquiries, alias’s, creditor’s contact information, credit repository information, social security validation info and any fraud alerts.  The reason all of this information appears on your credit reports is for your reference and so that is can be used by the banks and others who extend you credit to make a more educated credit decision based on your personal information.

Now that you have a better general understanding of credit, keep working hard to improve your scores and maintain a great credit rating!  

| 100-101 | | 9L0-012 | | 642-999 | | 300-115 | | MB5-705 | | 70-461 | | 810-403 | | 200-120 | | 400-101 | | CISSP | | 300-320 | 200-120 210-260 200-310 SY0-401 810-403 300-320 400-101 70-533 N10-006 MB2-707 810-403 200-120 400-101 CISSP 300-320 350-018 810-403 200-120 400-101 CISSP 300-320 350-018 300-101 210-260 300-208 MB2-707 400-201 SY0-401 70-462 EX200 100-101 1Z0-803 200-120 210-260 200-310 SY0-401 810-403 300-320 400-101 70-533 N10-006 MB2-707 1Z0-060 400-051 300-075 MB2-704 100-101 MB2-704 100-101 9L0-012 642-999 300-115 MB5-705 70-461 1V0-601 300-206 352-001 70-486 300-135 NS0-157 PR000041 300-101 70-346 810-403 810-403 200-120 400-101 CISSP 300-320 350-018 300-101 210-260 300-208 MB2-707 400-201 SY0-401 70-462 EX200 100-101 1Z0-803 300-208 MB2-707 400-201 SY0-401 70-462 EX200 100-101 1Z0-803 9L0-012 70-480 200-310 EX300 ICBB 1Z0-808 AWS-SYSOPS 1Z0-434 200-120 210-260 200-310 SY0-401 810-403 300-320 400-101 70-533 N10-006 MB2-707 210-060 400-201 100-101 9L0-012 642-999 300-115 MB2-707 400-201 SY0-401 70-462 EX200 100-101 1Z0-803 9L0-012 70-480 200-310 EX300 ICBB 1Z0-808 AWS-SYSOPS 1Z0-434 810-403 200-120 400-101 CISSP 300-320 350-018 300-101 210-260 300-208 MB2-707 400-201 SY0-401 70-462 EX200 100-101 1Z0-803