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Credit Score: The Brightest Feather In Your Financial
Cap
Credit scores are the most important aspect that determines
your financial future. Carrying a good credit score is an asset
and can pave your future towards greener pastures. On the other
hand a negative marking on your credit report can be ruinous for
your future dreams. However, "There Isn't Much anyone can do for
those who will not Do Something for themselves." The same is
applicable for credit scores. Your prime aim is to maintain a
good credit score and lead a planned life.
How to assist myself to have a good credit score
To have a clear knowledge about your credit score, it is a
good idea to get your credit report from the credit bureaus once
a year. This will ensure your credit is being reported correctly.
Usually the credit scores are within 400 to 850. If your credit
scores are higher, your eligibility to get approved in a loan
also gets higher in priority.
Credit scores consider 5 main categories for scoring
consideration and are rated according to importance:
Payment History -35%;
Length of History -15%;
Amounts Owed -30%;
New Credit -10%;
Types of Credit -10%.
Correlation between the Credit Score and Defaulters
Most lenders consider people having credit score above 650 to
be prime borrowers. This means they will most likely be approved
at favorable interest rates. According to credit report from
Equifax, 71% of the people with a credit score from 500-550 will
default on their credit. Another 51% of buyers with a credit
score from 550-600 will also default on their credit. Those
individuals having credit scores of 650 or more is considered to
have a decent credit score.
More than 2 million credit reports are issued each business
day in the United States, allowing millions of consumers to
purchase homes, cars and other durable goods and services on
credit.
In the only statistically valid study conducted to date,
Arthur Andersen concluded that in only two-tenths of one percent
of the over 15,000 cases studied, where consumers denied a
benefit based on an error in their credit report.
?Experian's credit files contain records on approximately 205
million credit-active consumers.
?Each month, there are more than 4.5 billion updates to credit
report information throughout the U.S.
?The American credit databases are the most accurate and
secure in the world.
?There are over one billion credit reports issued
annually.
?Credit reporting saves the average person from 200 basis
points on their mortgage loan.
In any part if the world it is very easy to stack up a large
debt. Private debts on homes, cars and credits have ballooned
through the sky. At such a juncture when people are undergoing
the syndrome of easy to pile up and difficult to clear like dirty
linens, one should be overtly conscious of their credit
score.
For better insight on the effect of credit scores please
view:
http://www.debtconsolidationcare.com/credit-score.html
http://www.debtconsolidationcare.com/credit-counseling.html
Janet Williams is a contributing writer to http://www.debtconsolidationcare.com/
and is currently working on a special section in the site called
do it yourself where you can eliminate your debts and become debt
free.. sarah@debtconsolidationcare.com
MORE RESOURCES:
Credit - Google News
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