You have to invest a great deal of efforts so as to maintain good credit reports & scores. You need to make all your mortgage installment payments as well as your credit card bill payment on time. Even a single late or missed payment can bring in a negative point or score to your credit report. Moreover, you will also have to be careful about identifying any theft in order to safeguard your credit scores. You can seek assistance from credit agencies on your credit reports as this can be very helpful. In this way you can understand about your goodwill statement’s current position along with an accurate evaluation of your credit standing.
Credit reports & scores
Why credit reports & scores are important?
Lending money to third person is very risky and lenders are very cautious towards this aspect. Prior to advancing money, they tend to make sure that the borrower does not have any outstanding sues or unpaid bills. In order to remain assured, they require checking the credit reports & scores of the borrower. Now, analyzing credit reports have become more important than simply considering the goodwill statement for approving loans. To get a positive credit score, it is important that your goodwill statement should be flawless. Credit agencies or goodwill agencies can provide you with your credit reports & scores.
How to get good credit scores?
Fair Isaac made the credit report analyzing format simply based upon formulas. Values were assigned to different data points which tend to result in an overall credit score. That score is termed as FICO and imposes a huge impact on the borrower’s ability to get their car or mortgage loan approved or to get a credit card.
The standard scale rating of FICO starts from 350 and goes up to 850. A typical breakdown of the FICO credit measurement scale is as follows:
730 and above - Excellent credit
700 - 729 - Good credit
670 - 699 - Average credit
585 - 669 - Higher risk
Below 585 -ss Very high risk
Rectifying discrepancies in your credit reports & scores
Since credit agencies maintain your data, there is a risk that incorrect data has been recorded under your name. After you have obtained your copy of credit report by the national credit agencies, you can look for errors within it. In case you see any gap or incorrect calculation, you can contact the respective credit agency and get that error rectified. Moreover, you can also know as to who is making a credit search on your name. If you have not applied for a credit card or loan, immediately inform the agencies about it.
Credit reports & scores are a major way through which your credit standing can be assessed and through which you will be able to obtain loans or buy a credit card. Maintaining a good credit report can be made possible if all your outstanding loan payments are cleared and credit cards bills are paid on time. In this way, you will also be charged less by the issuing agent which will eventually reduce your cost of credit.