Credit Report Score
Your free credit report score is a 3-digit rating number that helps lenders predict what kind of credit risk you will be. Your credit report score is computed from information contained in your credit reports, which are created by the 3 big credit bureaus. Scores range from 300 – 850, with the average being 700. You have the legal right to see your credit report score annually (from all 3 bureaus) at no cost. However, you will typically have to pay to see your credit report score, which is considered proprietary information.
Credit report scores typically range between 300 and 850, with something over 600 being average. If you have ever been referred to a collection agency or defaulted on a loan, your credit report score will be adversely affected. A bankruptcy will also lower your credit report score dramatically.
The total amount of money you owe as compared to the amount of money you earn will have a huge impact on your credit score. Each loan you have, including your mortgage, auto loan, credit cards, and even student loans will be taken into account. If you pay late on a regular basis, your credit score will drop.
Identifying the credit report score number is the first step to improving it. Each individual is entitled by the fair credit reporting act to receive a free report if it is requested. However, it is worth noting that these reports rarely include the actual credit report score, but an overall rating. To obtain the credit report score you may need to sign up with a credit reporting company for a monthly service fee to get the first report with score free. The second alternative to a monthly service charge is to request and purchase a three in one report from the three major reporting agencies. This will usually cost a one-time fee.
Your credit reprt score is also based on the past 2 years of payment history on any credit card or installment accounts. Making one late payment on any account can lower your score significantly. By making timely payments each month, you can increase your credit report score over time.
Once you have taken a look at your credit report and determined that it is accurate, the next step in credit repair is make contact with the creditors that you have delinquent accounts with. You have to deal with these accounts as soon as possible in order to repair your credit successfully.
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