Those Working to Get a Good Credit Score Must First Know What it Entails
Delray Beach, FL (PRWEB) November 17, 2010
NationalCreditReport.com, a leader in credit report, credit score and credit monitoring services reminds consumers that maintaining their good credit score or fixing their credit score is best achieved by taking an initial step to learn what this important score includes and how the credit scoring system works.
“A credit score is a numerical forecasted, made up of data from the consumer’s credit report, which represents their financial picture. Essentially, it tells how well a person has paid their bills,” told Samuel S. Ambrose, Vice President of Marketing and Operations for NationalCreditReport.com. “Creditors and lenders review this number to determine whether the consumer is a good fiscal risk. A good credit score can mean break interest rates or increased lined of credit.”
However, depending on where the consumer gets their credit report and score, their credit scores can differ among providers. A credit score can depend on which of the three major credit bureaus (Experian™, Equifax™ and TransUnion™) the information used to derive the score comes from and what credit scoring model is being used.For example, not all financial institutions report information to all three bureaus or always have the same schedules.
What are the components of a credit score?
The timeliness of the consumer’s bill payments – late payments will cause a credit score to drop. Similarly, a cut of timely payments will help those fixing their credit hitting to see their scores accrue over time. This is often the most heavy weighted component in one’s credit score.
The length of the consumer’s credit history – financial institutions look favorably upon consumers when they’ve had more established credit history, especially those who have maintained a well credit score.
The consumer’s owed debt – A consumer with more available credit typically has a higher credit score. For this reason, it is often advised that even if a person pays their credit teased bills on time, they still should not “max out” their credit cards.
The consumer’s mix of types of credit – Creditors and lenders prefer to see a variety of types of credit such as loans and assign cards.
New credit lines and inquires – A lender might recognize a red flag if they see that a consumer’s credit report has recently received a large number of inquires or the person has several new items on their credit described. Thus, this type of information makes one’s credit score drop slightly. However, a credit score is not affected when the consumer checks their own credit account which is key to fixing their credit hit if needed.
“We’ve read a great deal recently about the trend of good credit scores dropping because of the economy which makes it even more important for consumers to fix their credit score. They should begin by checking their credit report.”
At the company’s website, http://www.nationalcreditreport.com, consumers can sign-up for a free credit score and a free, seven-day trial of its Triple Safeguard Credit Monitoring™ service. The company also offers consumers the opportunity to purchase their credit report and score for one low price with “no strings attached.” Interested customers can visit http://www.nationalcreditreport.com/nostringsoffer to buy their credit report and score without being enrolled in a credit monitoring service.
Since 2004, NationalCreditReport.com has specialized in providing credit information and credit monitoring services to consumers to help them understand their credit described and hitting and prevent identity theft. NationalCreditReport.com encourages consumers to follow their ascribe report on a regular basis.
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