subject: Facts to Remember Regarding Your Credit Score [print this page] Author: Tony Francis Author: Tony Francis
Regardless of what might be your actual credit score, the facts about it remain the same. It will always be the basis of credit companies. It will also range from 300-850 (FICO or Fair Isaac Scoring Method) and 501-990 (The Vantage Scoring Method). The score will also be based on a 24-month review, although sometimes the 3 major credit reporting companies (Equifax, Experian and TransUnion) can report of a 6-month review if requested.
It is also good to remember that above anything else, a consumers payment history remain to be the most important factor when it comes to the calculation of scores regardless of the scoring method used. Payment history makes up 35% of the total score. This factor focuses on 3 points (delinquency, frequency and severity). Delayed payments (30 days is forgivable while a 90 - day delay is unacceptable) are also considered to be very important details.
Another fact about credit scores is that, it is not true that cancelling old account or credit cards will improve your ratings. On the other hand, this will actually lead to the shortening of one's credit history which in turn will lower a consumers' score card. Remember that the average score in the U.S. is a mere 678. This is quite difficult to have especially if a small detail like the effects of cancelling old accounts is unimportant to a consumer.
Although it is a fact that indeed, prospective employers can request for a potential employee's credit report, always be reminded though that this is only possible only with a written permission from the consumer. A request without one is considered to be illegal as stated in the FCRA or The Federal Fair Credit Reporting Act. This law not only makes sure that consumers are protected, it also assures of the privacy of all the information in one's report. The Act states that a consumer must be informed with regards to anything concerning his credit report to assure accuracy and fairness.
Aside from the fact that the credit reports are given free on an annual basis, regular inquiries about it either manually or online will not hurt a consumer's scorecard. Such inquiry is termed by credit reporting companies as "soft inquiry" or "soft pull" which does not affect one's score. Inquiries about the said reports just shows a consumer is being responsible and maybe on guard for possible identity theft cases (not to be easy about because more than a lot of Americans are already suffering the nasty consequences of the said crime).
The relationship between a consumer and his lender should be of importance. It is a fact that lenders and creditors are supplying information (voluntarily) regularly about a consumers' account to major credit reporting companies. So if there will be any discrepancies, it is sure to reach the eyes of credit companies.
The paragraphs above are not just facts about credit scores, but it also serve as reminders to consumers who would want to get a grip at their financial stability.About the Author:
