Check Your Credit
You Should Check Your Credit Report
before submitting your application for financing to correct errors that may impact your approval and best rate. You can get your credit report FREE without obligations, or subscribe to a credit monitoring and ID theft protection.
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About Your Credit Score
The FICO score is a mathematical calculation the measures your probability to repay a loan
Measurements are base upon a number of factors that include:
- your current outstanding debt
- places and the number of times you have applied for credit
- the kind of credit you have taken out in the past
- late payments in 30, 60, and 90 day increments
- over extension of your credit lines
- liens
- garnishments
- bankruptcy
Lenders often use the FICO score when reviewing an applicant's request for credit
an applicant with a high FICO score will likely receive instant approval with better than normal rates and terms — which means lower cost when you borrow money
view more information about the FICO credit score:
click here
FICO Scores: 720 and up
- Scores 720 and up are considered excellent.
- Most lenders will categorized this group
as A rating.
- Scores within this group will have access
to the best interest rates and terms.
- About 60% of the U.S. population falls within this credit range
FICO Scores: 640 to 719
- Scores 640 to 719 are considered good
credit.
- Most lenders will categorized this group
as B rating.
- Scores within this group will have access
to good interest rates, but may not qualify
for the very best interest rates and terms.
- About 27% of the U.S. population falls within this credit range.
FICO Scores: 500 to 639
- Scores 500 to 639 are considered risky
credit.
- Most lenders will categorized this group
as C rating.
- Scores within this group may still qualify
for a loan, but may have to pay at least
two percentage points or more higher interest rates than
the group in the excellent category.
- About 12% of the U.S. population falls within this credit range.
FICO Scores: 499 and less
- Scores 499 and below are considered
very risky credit.
- Most lenders will categorized this group
as D rating — which means the applicant
may have foreclosure, liens, and credit
judgments.
- Scores within this group may still be
eligible for a loan, but may have to pay
at the maximized rates determined by State
and Federal regulations.
- About 1% of the U.S. population falls within this credit range.
What's Inside Your Credit Report
Your credit report will maintain the following information:
- Your current outstanding debt
- Places and the number of times you have applied for credit
- The kind of credit you have taken out in the past
- Late payments in 30, 60, and 90 day increments
- Over extension of your credit lines
- Liens
- Garnishments
- Bankruptcy
Credit bureaus report negative information for seven years and bankruptcy information for ten
Who Has Access
By signed authorization through an application
or other contractual agreement, the following
parties may gain access to your report:
- Banks, credit unions, finance companies, other lenders
- Retailers, department stores, credit card companies.
- Landlords, utility companies, phone companies.
- Hospitals, doctors, dentists, insurance companies.
- Car dealers, mortgagers.
- Investigators, lawyers, courts.
- Any party who can offer just cause and/or has access as a member of a credit reporting agency.
Why Check Your Report
To avoid paying higher interest rates on your car and home mortgage if your credit report shows some questionable activity.
- Did you also know that you may be charged higher premiums on insurance if you have questionable credit?
- And you also might be surprised that many employers run credit checks on potential job applicants and/or for promotions.
- Your goal is to ensure that your credit report reflects accurately your credit and financial management skills.
5 Reasons to Check Your Report Regularly
1: Check for Errors and Inaccuracies
About 1-in-4 credit reports contain errors that can affect a credit decision. These errors may include human input error, incorrect information reported about your account, or addition of some other account information that has a similar name or SSN number to yours.
You should check you report at least annually and prior to submitting a home mortgage or other application.
2: Tracking Payments
The typical household will during one month make 1 mortgage payment, 4-5 credit card payments, 1-2 student loan payments, 1-2 auto loan payments, 4-5 utility payments, and the list goes on.
Multiply this number of payments by 12 and you can imagine the probability that 1 or more payments were recorded incorrectly by your creditor.
You should check your credit report to make sure that your payments has been properly recorded.
3: Identity Theft
This is probably the main reason why you should check your report regularly. Identity theft occurs when someone assumes your name and social security number to open credit accounts, divert card statements to another address, and drive up debts.
Identity theft can destroy your credit and trap you into a complicated process to clear your good name and background.
Checking your credit report regularly can help prevent identity theft. It shows credit activity being made in your name. You can monitor over time whether a particular inquiry or credit account was open without your authorization.
4: Inquiries
Every time you make a request for credit or enter into some contractual service, your lender or service provider may check your credit, which places an inquiry on your credit report. Multiple inquiries over a short period of time can lower your credit rating.
Your credit report will show the inquiries made to your report. It is important to know who has made an inquiry, whether such inquiry was authorized by you, and most importantly, whether any of the inquiries are related to Identity Theft.
5: Credit Fraud — Unauthorized Charges
A credit report will show the credit accounts that are still open but with limited or zero activity.
Question:if someone confiscated your credit account, how would you note any activity to the account if the creditor has on their records your previous address? Reviewing your credit report allows you to catch new activity on accounts that may be fraudulent.
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