Tag Archives: PersonalFinance

Why Should I Monitor My Credit?

The information listed in your credit reports has an important effect on your financial life. Your credit scores are created by the information in your reports. Credit scores determine whether you can receive favorable terms for financial products. While employers do not pull your credit scores, they may consider the information in your reports before extending a job offer. You can monitor your credit ratings and reports throughout the year. By checking your credit, you could: Determine your credit worthiness: Your credit reports and scores are good indicators of your financial standing. Keep in mind, even if you do have poor credit scores or negative information listed on your report, you can always set goals to improve both. Fix mistakes on your reports: If your credit scores drop suddenly without any explanation, it could indicate that incorrect information was posted to one or more of your credit reports. You may…
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What Steps Can I Take to Improve My Credit Scores?

  Your credit scores are used by lenders to determine whether you are a credit risk. Many lenders use FICO credit scores, which were developed by the Fair Isaac Corporation. Lenders also use different versions of FICO scores. There is more than one FICO scoring model, some of which are used by specific creditors. Multiple factors are considered when calculating your FICO credit scores. These factors include payment history, credit utilization, length of credit history, which types of credit you have and new lines of credit. Your base FICO scores, which range from 300 to 850, could help determine whether you can receive favorable loan terms. The higher your scores, the better the interest rates and the more likely you will be approved for credit Late payments, defaults and an overuse of credit can lower your scores. Fortunately, credit scores are not permanent. You can always take steps to improve…
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What Are Common Errors on Credit Reports?

Errors on your three credit reports could reduce your access to credit and certain types of employment. Unfortunately, credit reporting errors are quite common. According to the Consumer Financial Protection Bureau (CFPB), it received 43,000 complaints involving credit score errors during 2016. Common credit report errors may include: Incorrect reporting status: Your credit reports could contain very old accounts that should no longer be listed. Accounts that you have paid may be listed as unpaid. In addition, your credit reports may list the wrong balance or lender for an account. Mistaken identity: Your credit reports could list accounts that do not belong to you. This type of error may occur when your credit report lists an account that belongs to someone with a similar name. A family member’s negative account status may also be listed on your report by mistake. Data management errors: On its website, the CFPB lists common…
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