UNDERSTANDING YOUR CREDIT SCORE

How is a credit score calculated? 

• Your credit score is determined by:
  • Payment history
  • Outstanding debt
  • Length of time you've had credit
  • New Credit 
  • Types of credit you currently have
  • Income

How can a scores be inaccurate? 

There are 3 credit agencies that provide credit scores that lenders and creditors use to determine a what type of credit they will grant and the price of that credit. The majority of the time these scores are different and may contain errors due to several reasons including:

• Failure to report a positive event like payments on an account
• Missing accounts that are in good standing including mortgages and revolving accounts
• Errors in how often a person made late payments
• Errors on how late a payment was marking a payment as 60 days late when it was only 30 days late
• Clerical Errors
• Someone else’s credit information was applied to your credit report

How does a Low Credit Score affect me?

• You pay higher interest rates on loans and credit cards when your credit score is low.   You might even be turned down altogether. On mortgages this can be significant as scores below 620 cutoff point can impose as much as a 3%-4% difference on a $150,000 mortgage this could mean as much as paying an additional $124,000 more interest on a non prime loan of say 9.8% vs. Prime rate of 6.5%
• You could pay more or be denied credit, insurance or utilities because of an inaccurate low credit score.

What can you do?

• Getting rid of inaccurate or bad information can improve your score dramatically.
  

Click Here To Start Your Risk-Free Credit Repair Today! 

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