Annualcreditreport gives you a credit report free once a
year, but they don't give your credit score. I have been a
lender for 7 years, and believe me when it comes to getting
your loan done everyone looks at credit scores. Your credit
score is a bench mark for banks to sell your loan on the
secondary market. Typically investors use your middle
credit score to determine your creditworthiness. Here is
what myFICO® says in regards to how important it is to
know your credit score.
How credit scoring helps you
Credit Score gives lenders a faster snapshot of your credit
risk. Most lenders are now using FICO® to determine
your score. Before the scoring process was implemented
there was a biased opinion of your credit. Now there is
less none bias opinion of your creditworthiness with credit
score automation process with all 3 credit bureaus. When
pulling your credit report with all 3 Credit Bureaus you
typically get a score. Since annual does not provide this,
you have to get your report through other service providers.
Here are some advantages of credit scores.
* You get loans faster Your credit scores can be delivered
with a few key strokes with today's technology. With the
speedy process this helps lenders speed up the decisions
making process. Even mortgage applications can be made
within ours, instead of weeks.
* Credit Decisions are fairer Credit decisions can be made
of facts instead of emotions. Factors like your gender,
religion, race, marital status and nationality are not
considered by credit scoring.
* More Credit is Available
Lenders can approve more loans because the credit scoring
process gives them the information on which to base there
decision on. It allows lenders to identity individuals that
are likely to perform well in the future even though they
have had issues in the past. Each lender has its own credit
score guidelines, so if one denies you, you may get
approved elsewhere. The use of credit scores gives lender
the confidence to offer more credit to people since they
better understand the risk they are taking.
* Credit mistakes count for less
If you have credit problems in the past, credit scoring
does not let that haunt you forever. Past credit problems
fad as time passes as long as new good credit patterns show
up. Credit scoring weighs all credit in a file, as opposed
to focusing primarily on past issues.
* Credit Rates are lower
The cost of loans decreases when more credit is available.
The process of automation in the credit process is less
because of the efficiency of the process, which is passed
on to the consumer. Buy using the scoring process there are
less defaults, and in returns saves the consumer in the
long run. Credit Scores have revolutionized the lending
arena, and has driven down cost for everyone.
Conclusion:
Now you know why you need to know your scores and how
important it is. Recent studies show that 1 out of 4 credit
reports have incorrect information on them. Plus identity
theft is the fastest growing crime in America. You need to
check your free credit report with scores every 90 days
just to be safe in today's times. Since your scores are the
core in determining whether they will lend you money,
shouldn't you know what they are ? The answer to that is
yes.
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About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.
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