You have heard all there is to hear about bad credit. However, you need to know what it really can do, and how much it can hurt you. A poor score can cost you big, not just financially but also with job hunting, trying to get loans, paying off loans and even renting a place.
Many people rely on credit for things they do not even realize. It may shock you to learn that your number is used when you apply for a job. Many companies use peoples scores to help determine if they are financially responsible, and can handle jobs in accounting, bookkeeping, and other jobs with financial responsibility including ones that require handling cash. Another thing you need a good number for is to be able to rent a home. Many landlords check an applicants score to determine if they have a history of paying their rent on time. This is a key factor for many owners because the wrong tenant can cost them thousands of dollars.
Car and home loans are based on credit scores, not only for approval but because they can determine what a person has to pay. A high score can keep interest rates and finance charges low, and that can take hundreds of dollars off the monthly payments which allows you to pay off the loan faster. If you have a poor score there is no reason to panic, there are some quick solutions that can help. The best option is to try credit repair. A credit repair company can fix your score in a matter of weeks rather than the months or years it would take you to do it yourself and they can repair it no matter what the reason is for it being lowered.
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By David George
http://creditrewind.com/
Article Source:
http://EzineArticles.com/?expert=David_Lee_George
Understanding Your Credit Score When Applying for a Loan
by: Gage Wazein
The first step in applying for a loan as an informed consumer is to know your credit score. Your current fiancial situation directly affects your ability to obtain a loan as well as partially dictate your financial freedom in the future. You must be prepared before you apply for a loan, and discovering your limitations and will predict what type of loan is realistic and right for you.
To more successfully obtain approval for your loan, it is important to know your credit or FICO score before you apply. The accuracy of your score is just as important as learing your score itself. Appropriate reasearch will prevent any unwelcome surprises at application time as well as allow you to correct any errors that may effect your approval.
It is important to understand not only what your credit score is, but how it is calculated before actually acquiring it.Your credit score is a number derived from a pool of information consisting of bill payment history, how many and what type of accounts you have, any record of late payments, collection actions taken against you, the age of your accounts, and all your outstanding debt. Creditors then apply a statistical program to your information as well as the information of your financial peers. Your actual credit score number is then extracted from a system that awards points for each factor you have that helps predict your likeliness to repay any loan or credit given in a timely manner. Through this system, the more points you are awarded, the better your score and the better your probability of receiving approval.
There are three major credit-reporting agencies through which you can access your credit information. They are known as Equifax, Trans Union and Experian.Because not every agency carries identical reports, it is important to obtain a copy from each one. As stated before, accuacy is imperative.
In more recent years, lenders have started relying a number called your FICO score when considering you for credit. Similar to the information obtained by Equifax, Experian or Trans Union, FICO is mathematically generated based upon your credit report. This generated number is then compared to millions of other consumers resulting in a very accurate assesment of your financial strenght and competence. Just as your credit score, the higher your FICO score, the better your chance of earning loan approval.
About The Author
Gage Wazein is the President and designer of the best online loan directory, which is F.T.M. Loan. To learn more about this site, go to
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