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averythomas12 · 2 years

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The Future of Shopping - Vantage score 0 offers an innovative shopping experience that is sure to make your shopping trips a breeze!

Introduction

Introduction:

If you're looking for a shopping experience that is sure to make your shopping trips a breeze, look no further than Vantage score 0. This innovative shopping platform offers an innovative shopping experience that is sure to make your shopping trips a breeze. For one, Vantage score 0 features an intuitive interface that makes it easy to find what you're looking for. Additionally, the platform offers ample search options so you can quickly and easily find the best deals on the items you need. Finally, the platform offers a variety of payment options so you can get your Shopping spree on without spending a fortune!

What is Vantage score 0.

Vantage score 0 is a new shopping experience that allows users to save on their shopping trips by rating and reviewing products. This innovative system offers customers an innovative shopping experience that is sure to make their shopping trips a breeze! By rating and reviewing products, Vantage score 0 helps shoppers find the perfect product for them and saves them money on their next purchase. There are many benefits of using Vantage score 0, including:

- Saving time - By rating and reviewing products, shoppers can save time on their shopping trips. This allows them to shop more efficiently and stay within their budget.

- Finding the best deal - By rating and reviewing products, shoppers can find the best deals on products. This allows them to save money while still enjoying their Shopping trip.

- feeling like they own the product - by ratings and reviews, shoppers feel like they own the product they are purchasing. This allows them to feel like they are making a real difference in the product they are buying and helping others enjoy it too!

How to Get Started with Vantage score 0.

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Get a Free Shipping Code

If you're looking to save even more on your next purchase, be sure to add Vantagescore 0 to your cart and receive a free shipping code! Just enter the code at checkout and enjoy standard shipping rates as well!

Tips for Enjoying the Best Shopping Experiences with Vantagescore 0.

When planning your shopping trip, try to schedule time for shopping. This will help you find the best deals and enjoy the experience of Shopping with Vantagescore 0. By heading to one or more designated stores, you can save a lot of money on your shopping trips.

Cookiecutter Shopping Sheets

To make your shopping experiences even easier, use cookiecutter shopping sheets. These templates will help you plan your favorite shopping trips in a snap! Just print out the sheet and cut out the items you need for each visit. You’ll be ready to go from there!

Find the Right Place to Shop

If you’re looking for an amazing shopping experience but don’t have time to spend in a store, consider finding a place to shop online. With Vantage score 0, there are plenty of options available that will let you shop without feeling rushed or stressed out. Check out our website or use our search bar to find what you’re looking for quickly and easily! More information can be found on the website

Conclusion

Vantage score 0. is a powerful shopping platform that allows you to shop from anyplace in the world. By setting up your accounts and shopping from anywhere, you can enjoy the best shopping experiences possible. Additionally, Cookie cutter Shopping Sheets make it easy to find the best deals on products online. Finally, make sure to check out our other posts for more helpful tips!

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creditrepairinfairfield · 2 years

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How to Fix Your Credit Score in 3 Simple Steps

A poor credit score can make it difficult to get a loan, rent an apartment, or even get a job. Luckily, there are ways to fix your credit score in 3 simple steps.

Credit scores are calculated by looking at factors such as how much debt you owe and how often you’ve missed payments on those debts. You can easily improve your credit score by paying off your debt, paying your bills on time, and not missing any payments.

What is a credit score?

A credit score is a numerical representation of your creditworthiness. It is calculated by taking into account your payment history and other factors such as how much debt you have, how long it has been since you last made a payment, and the length of your credit history.

The higher the score, the more likely it is that you will be approved for loans or credit cards. There are three major types of scores used in the United States: FICO score, VantageScore 3.0, and TransUnion Empirica Score.

What are Your Options for Fixing Your Credit Score?

There are many ways to improve your credit score. These include paying down debt, using a credit card wisely, and being careful with your spending. However, if you're looking for a quick fix, there are also some options that can help you get back on track and improve your score fast.

Credit repair services

Credit monitoring services

Debt consolidation loans

Step 1: Get a Personal Loan with Bad Credit

If you have bad credit, it can be difficult to get a personal loan. However, there are some lenders who are willing to offer personal loans with bad credit.

Some of the lenders will require you to provide collateral in order for them to offer the loan. This means that they will want you to put up something of value such as your car or your house as collateral against the loan.

A lot of people use personal loans with bad credit when they need a quick cash flow and don't have time for waiting for an approval from a bank or other financial institution.

Step 2: Improve your Credit Score by Making Smart Money Moves

As the credit score becomes more and more important in our everyday lives, it is important to know how to improve your credit score. Here are some smart money moves that you can make to increase your chances of getting a good credit score.

- Pay off all debts in full. This will show that you have a consistent track record of paying off your debts and that you are not carrying any debt around.

- Make sure that you are making timely payments on your loans and other debts. This shows good management skills and that you may be able to get a loan in the future if needed.

- Make sure that all of your accounts have a zero balance, which means no overdraft fees or interest charges on those accounts at all times.

Step 3 - Finding the Right Settlement or Debt Consolidation Option

When it comes to settling a debt, people usually focus on how much they can save in interest. They don’t think about the long-term consequences of the debt settlement and what it means for their credit score.

In this, we will discuss some of the most common ways in which people can improve their credit score. We will also talk about how to find the right settlement option for your particular situation.

Credit scores are important when you are looking at settling a debt or getting a loan from your bank or from any other institution. You should know what factors contribute to your credit score and make sure that you have a good one before applying for any loans or getting a settlement from your creditors.

How to Monitor Your Credit Score on a Monthly Basis and Track Progress Over Time

Monitoring your credit score on a monthly basis is a good way to track progress over time. It also helps you identify any changes that need to be made.

There are various credit monitoring services available online, such as Credit Repair in my area.

Monitoring your credit score on a monthly basis is important because it provides you with an overview of your financial situation. That way, if you see any changes in your score, you can take the appropriate steps to improve it.

Conclusion - The Benefits of Getting Corrected

The benefits of getting corrected are pretty obvious. It gives you a chance to learn and grow as a writer while also focusing on what you are good at - creativity and emotions.

Call on(888) 804-0104 & Fix your credit score now!

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cassh24sg · 3 years

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How to get a credit card with no credit

CNN –

CNN Underscored checks financial products like credit cards and bank accounts based on their total value. We may receive a commission through the LendingTree partner network when you apply for a card and are approved, but our reporting is always independent and objective.

Credit building can seem impossible when you are just starting out, and this is especially true when you have no credit at all. That’s because credit card issuers and lenders, by and large, shy away from consumers with no credit history because they cannot assess your creditworthiness and have no idea how to handle credit if you had access to it.

Fortunately, there are some unique credit card products aimed at consumers with limited credit history or no credit history at all. So, if you don’t have a credit history but want to get a credit card, it is time to learn more about your options. Let’s see how to get a credit card with no credit history and what other steps you can take to build credit over time.

For the latest list of the best credit cards for those with no credit history, click here.

Not having a credit history is different from having bad credit. Bad credit means you have had a history of credit abuse, while a lack of credit history means you never had access to credit, so your credit report will not include any credit movements. Without information about your credit reports, lenders will not know enough about you to assess your creditworthiness.

Also, having no credit history doesn’t mean you have a zero credit score. This is an important difference as a zero credit rating is not even possible based on the most popular credit rating systems. If you don’t have a credit history then you simply don’t have a credit history.

However, once you start using credit, the credit bureaus have information that they can use to calculate a credit score for you. The most widely used type of credit score is the FICO score, which ranges from 300 to 850, with higher scores being far superior:

Exceptional: 800 and higher

Very good: 740 to 799

Good: 670 to 739

Mass: 580 to 669

Bad: 579 and lower

If you’re not sure whether you have a credit history or a credit score, you can find out for free on AnnualCreditReport.com, which provides a free report once a year from each of the three major credit bureaus. This is the only official website that offers free credit reports. So make sure you use the correct link when requesting a report.

After reviewing your credit report, if you have information about it, you can determine whether there is enough data to calculate a credit score for you. While there is no official creditworthiness website as there is for credit reports, luckily there are many ways you can do a credit check for free.

You can start by signing up with a credit monitoring service that offers a free credit score or a program that offers free credit tracking tools. For example, Capital One’s CreditWise gives consumers a free look at their TransUnion VantageScore 3.0, and you don’t have to be a customer to use it.

Connected: How can you check your credit score for free?

Without any credit history, you are only eligible for a select few types of credit cards. The first is a secured credit card, which is a credit card that requires a cash deposit as security.

When you apply for a secured credit card, your initial deposit is typically $ 200 or more and the money you put on deposit will be used to secure your line of credit. This also means that your initial credit limit is usually low. In fact, a $ 200 deposit usually means an initial line of credit of $ 200, a deposit of $ 500 means an initial credit limit of $ 500, and so on.

iStock

Even people without a credit history have options for obtaining a credit card.

The good news is, with a secured credit card, you will get your deposit back if you close your account in good condition (i.e. you have paid back any funds used up to that point). This applies regardless of whether you close your credit card account with a balance of USD 0 or upgrade your card to an unsecured option from the same issuer.

There are also some unsecured card options for those with no credit history, which means you don’t have to deposit any cash, but they are few and far between. Unsecured credit cards for those with no credit history usually come with low credit limits and potential fees, although this is not always the case. However, if you don’t have a credit history and are looking for an unsecured credit card, make sure you choose one that doesn’t come with high fees.

Check to see if you qualify for one of these credit cards for those with no credit history.

Before applying for a credit card without a credit history, there are a few key questions you need to ask yourself:

Have I checked my credit report and score? Don’t assume that you don’t have a credit history without taking the time to check it out. It is possible that you have information about your credit report from financial institutions that you have worked with in the past and that you have a credit rating as a result.

Am I willing to leave a cash deposit as security? A secured credit card is often the easiest way to start building a loan, although you will have to put up with collateral. If you don’t have a lot of cash to spare, look for secure card options that only allow you to deposit $ 49.

Am I ready to take construction loans seriously? Before getting a credit card, make sure that you are ready to prove your creditworthiness. This usually means that you are able and willing not to hit your credit card limit and pay your credit card bill on time and ideally in full each month.

Another way to build your credit score is to make someone else with an existing credit card – such as a family member – an authorized user for their account. This means your account will appear on your credit report and you will benefit from their good credit history.

However, if that person abuses their credit, the resulting negative mark may appear on your report as well. So make sure you choose a person who will be responsible for their own credit.

Save money with these credit card offers for those with no credit history.

Without any credit history, your credit card options are limited and, frankly, not that great. However, it is important to know that some credit card offers are exceptionally better than others for those without credit. When comparing all of your options, here are some pitfalls to avoid:

fees: Avoid credit cards that charge registration fees, monthly maintenance fees, or high annual fees. There are many secured credit cards with no annual fee as well as unsecured credit cards that you may be eligible for and that do not have an annual fee.

High annual percentage rateCredit cards for bad or no credit usually have much higher interest rates or annual percentage rates. Choosing a card with a high APR may be fine, but you should strive to pay off your credit card balance in full each month so that you can avoid interest charges altogether.

Yourself: Make sure you are ready to avoid serious credit mistakes in the first place. Most importantly, you have to pay your credit card bills early or on time each month. Also, avoid exhausting your available credit.

Compare available credit card offers for those with limited credit history.

iStock

A new credit card can help you build a credit history and open the doors to new credit options.

Whether you choose a secured credit card or an unsecured credit card, you want to know how best to use your card to your advantage so that you can start building a credit history. Your first step is to know and understand the factors that go into determining your creditworthiness. Here are the factors used by the credit reporting agencies to calculate a FICO credit score:

Payment history: 35%

Amounts owed: 30%

Loan History Duration: 15%

New credit: 10%

Credit mix: 10%

As you can see, your payment history is the largest part of your credit score at 35%. So the most important thing you can do is pay your credit card bill early or on time each month. No exceptions!

The second most important factor is the amount you owe in relation to your credit limit – this is 30% of your creditworthiness. In general, it’s best to use 10% or less of your available credit at any given time, but no more than 30% if you want good credit.

This means that you won’t have more than $ 50 to $ 150 in debt if you have a credit card limit of $ 500, and only $ 20 to 60 in debt if your credit limit is $ 200. Since your first credit card is likely to have a low credit limit, you should take extra care to keep your balance very low or $ 0 for the best results.

The next factor – the length of your credit history – is one that you can only improve on over time. New loan is based on how many lines of credit you have applied for in the recent past, and you can do well in this category by avoiding opening too many new accounts at once.

After all, your credit mix is another factor that can take care of itself over time. Once you have a credit history and good credit score, you can expand the range of credit products you need to include revolving accounts, installment loans, and maybe even a mortgage or car loan.

In the end, it can feel like a chicken-and-egg situation – how can you get a credit card to build your credit history when lenders don’t give you a credit card with no credit? History? But by strategically using secured credit cards, unsecured cards, and maybe even an authorized user account owned by a friend or family member, you can be on the right track and soon you will have a solid credit history and many more credit options to choose from.

Learn about the best credit cards you can get with no credit history.

Check out CNN Underscored’s list The best credit cards in 2021.

Get the latest in personal finance offers, news and advice at CNN Underscored Money.

source https://www.cassh24sg.com/2021/06/29/how-to-get-a-credit-card-with-no-credit/

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creditmonkey · 5 years

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FICO vs. VantageScore: What's the Difference?

You probably know your credit score, but you may or may not know the details of credit score calculation or the scoring model. In fact, according to a recent survey, 4 in 10 Americans have no idea what factors determine their credit score. But even though it’s important to understand the factors that determine your score, that’s only one piece of the puzzle. There are actually different types of credit scores that come from different scoring models. Have you ever noticed that your score is slightly different depending on when and where you check it? Even though it’s normal to see slightly different numbers when you check your score, part of the reason for the discrepancy in numbers is due to different credit scoring models. Here’s what you need to know about scoring models and the ways they can affect your score.

What is a scoring model?

Credit scoring is a mathematical process that lenders and other businesses use to decide credit eligibility and loan terms. The factors used in the process can include payment history, amount and type of accounts you have, timeliness, outstanding debts and more. After they collect the information, creditors input the information into an automated system that creates an individual score. But here’s where it gets interesting — not all scoring systems are exactly the same. Creditors and other companies can create their own scoring models based on risk. Different companies have different models The Federal Trade Commission clearly states that every company can use a unique scoring model. In addition, companies can use different scoring models for different types of credit or loans. And lastly, companies may also use a generic model developed by a scoring company. In other words, companies have the choice to create their own scoring model or use a scoring model created by a third-party like FICO or VantageScore. But even though credit scoring models can change from one company to the next, they all must adhere to similar standards. According to the Federal Trade Commission, all credit scoring models must adhere to the guidelines from the Equal Credit Opportunity Act (ECOA): “Under the ECOA, a creditor’s scoring system may not use certain characteristics — for example, race, sex, marital status, national origin, or religion — as factors. The law allows creditors to use age, but any credit scoring system that includes age must give equal treatment to applicants who are elderly.” Why companies use scoring models Lenders use credit scoring models because they are a simple and fair way to determine how risky it is to lend to a potential customer. Lenders want to reduce risk because lower risk means that the customer is more likely to repay the loan. For lenders, credit scoring models are an important part of doing business. Barry Paperno, credit expert and writer, explains why scoring models are important for lenders. “Credit scores enable lenders to make automated credit decisions that are objective, faster, and more consistent and accurate than decisions made subjectively without credit scores.”

FICO vs. VantageScore

Whether or not you know what it stands for, you’ve probably heard of “FICO” before, and there’s a good reason for that. Until VantageScore entered the credit scoring marketplace about ten years ago, FICO was the primary credit scoring company in the United States. Founded by Bill Fair and Earl Isaac in 1956, the Fair Isaac Corporation was the first credit scoring company. Today, lenders use both credit scoring models for lending decisions. Even though FICO and VantageScore aren’t the only scoring models, they are the most popular. Because of that, it’s important to understand the differences.

What you need to know about VantageScore

VantageScore uses a credit scoring model developed by the company. In earlier VantageScore versions, the credit scores ranged from 501 to 990. However, the VantageScore 3.0 model updated the score ranges so they more closely resemble other credit scoring models. Today, the credit scores range from 300 to 850. Factors that impact your VantageScore According to VantageScore, different factors impact your VantageScore credit score and some factors are more important than others. Here are the factors that influence your credit score,ranked in order of importance by VantageScore: Total credit usage, balance and available credit: This is the most important factor for VantageScore and it essentially looks at the total amount of credit you’re able to use, the total amount you’re actually using and how much is leftover. Total credit mix and experience: This is about the type of credit you have — credit cards, car loans, mortgage — and how long you’ve had the accounts. Payment history: This factor focuses on whether you pay your bills on time.Age of credit history: Although this is second to last, the length of your credit history is still important.New accounts: This factor is about how many new accounts you have, how recently you opened them and how many hard credit inquiries are on your report. In reality, both scoring models are similar and use the same information. For example, both penalize you for late payments or missed payments. But even beyond that, you can get access to credit scores from both companies through the three major credit bureaus: Equifax, TransUnion and Experian. “Most FICO and VantageScore models are offered by all three bureaus. FICO score models are custom-developed for each of the three credit bureaus. With VantageScore, a single model is developed and applied at each bureau,” says Paperno. The main difference The main factor that distinguishes VantageScore from FICO is how long you have to build credit before you have a credit score. Paperno explains that FICO requires at least one account opened more than six months ago, while VantageScore requires only one month of history. This is significant because it means that more customers are able to receive a score and as a result, those consumers are able to get access to credit. In fact, according to VantageScore, millions of additional consumers have been able to receive a score as a result of their scoring model: “The VantageScore 3.0 model, which is the most recently introduced model, provides a score to 30–35 million adult consumers who otherwise would be virtually invisible to mainstream lenders. So when lenders use the VantageScore model, they can provide credit to more consumers at the most appropriate terms.” How to check your VantageScore Thanks to innovations in technology, it’s easier than ever to check your VantageScore for free. In fact, if you check your credit score through CapitalOne, Chase or Self Lender, you’ve seen your VantageScore. If you’re interested in checking your score, VantageScore has a complete list of free credit score providers.

What you need to know about FICO

Like VantageScore, FICO is a company that provides credit scores that range from 300 to 850. In other words, a FICO score is a particular brand of credit score. Historically, FICO scores have been the gold-standard for credit scores and according to Paperno, that’s still true today: “FICO claims their scores are used in more than 90% of credit card, auto, mortgage and other credit decisions. VantageScore, the newer product, does not appear to have been adopted by many lenders for their lending decisions.” The Consumer Financial Protection Bureau echoes Paperno and explains: “Today, other companies also have credit scoring formulas (‘models’), but most lenders still use FICO scores when deciding whether to offer you a loan or credit card, and in setting the rate and terms.” Factors that impact your FICO score Even though the factors that impact your FICO and VantageScore are the same, the order of importance is slightly different. Here are the factors that impact your FICO score ranked in order of importance. Payment history: This factor looks at whether you pay your bills on time. Amounts owed: For this, the FICO model looks at how much you owe on your various accounts in relation to how much credit you have available. Length of credit history: This is about how long you’ve had credit or loan accounts. Credit mix: This factor is about the types of credit you have — installment accounts, mortgage loans, auto loans and more. New accounts: For this, FICO looks at how recently you’ve opened new accounts and during what time frame. Something that’s interesting to note is that everyone actually has three different FICO scores, one from each credit bureau. This is because FICO score models are custom-developed for each credit bureau. According to Paperno, lenders choose which score they use to make a lending decision based on their own past experience. Lenders tend to use the scores that have been most reliable in predicting future risk. How to check your FICO score Checking your FICO score is a little complicated because the scores online are often different from the scores that lenders use. This is partly because FICO scores change regularly, and they’re not free to get. According to FICO, it’s best to find out exactly what score a lender is using so you know which score you need to buy from FICO: “If you're planning on making a major purchase, you probably want to check your FICO Score and not just any credit score. If you really want to be sure that you are seeing the same information that your lender is judging you by, then ask the lender which score they are using and then purchase that exact score, or set of scores.”

Bottom line

The truth about FICO and VantageScore is that they are very similar. “Since most credit scoring models essentially do the same thing — predict risk — lenders tend to use the models and credit bureaus that over time have proven to be most reliable in their experience,” Paperno explains. This is good news for your credit because if you work to improve your credit score or build credit for one model, you’ll probably improve your credit for the other model as well. About the author Dion Rostamian is a personal finance writer who has also written for Credit Karma, Chime, Acorns and Policy Genius, among others. Read the full article

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lendingcapital · 4 years

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Hard vs. Soft Inquiries

What is a soft inquiry?

Soft inquiries (also known as “soft pulls”) typically occur when a person or company checks your credit as part of a background check. This may occur, for example, when a credit card issuer checks your credit without your permission to see if you qualify for certain credit card offers. Your employer might also run a soft inquiry before hiring you.

Unlike hard inquiries, soft inquiries won’t affect your credit scores. (They may or may not be recorded in your credit reports, depending on the credit bureau.) Since soft inquiries aren’t connected to a specific application for new credit, they’re only visible to you when you view your credit reports.Common Question

Will checking my own credit scores result in a hard inquiry?

Yes it can. Even though this is reported as a soft inquiry, it may not lower your credit score, however, some bureaus report “excessive soft pulls” and will decline as they feel you are looking and being turned down...SO CAUTION on how many soft pills you do. You can check your VantageScore 3.0 credit scores from two major credit bureaus, TransUnion and Equifax, for free at creditkarma.

Examples of hard and soft credit inquiries

The difference between a hard and soft inquiry generally boils down to whether you gave the lender permission to check your credit. If you did, it may be reported as a hard inquiry. If you didn’t, it should be reported as a soft inquiry, again, many soft pulls can cause a lender to decline your application.

Let’s look at some examples of when a hard inquiry or a soft inquiry might be placed on your credit reports. Note: The following lists are not exhaustive and should be treated as a general guide.

Common hard inquiries

Mortgage applications

Auto loan applications

Credit card applications

Student loan applications

Personal loan applications

Apartment rental applications

Common soft inquiries

Checking your credit scores

“Pre-qualified” credit card offers

“Pre-qualified” insurance quotes

Employment verification (i.e. background check)

Keep in mind, there are other types of credit checks that could show up as either a hard or soft inquiry. For example, utility, cable, internet and cellphone providers will often check your credit.

If you’re unsure how a particular inquiry will be classified, ask the company, credit card issuer or financial institution involved to distinguish whether it’s a hard or soft credit inquiry.

How to dispute hard credit inquiries

We recommend checking your credit reports often. If you spot any errors, such as a hard inquiry that occurred without your permission, consider disputing it with the credit bureau. You may also contact the Consumer Financial Protection Bureau (CFPB) for further assistance.

This could be a sign of identity theft according to Experian, one of the three major credit bureaus. At the very least, you’ll want to look into it and understand what’s going on.

Keep in mind, you can only dispute hard inquiries that occur without your permission. If you’ve authorized a hard inquiry, it generally takes two years to fall off your credit reports.How to dispute an error on your credit report

How to minimize the impact of hard credit inquiries

When you’re buying a home or car, don’t let a fear of racking up multiple hard inquiries stop you from shopping for the lowest interest rates.

FICO gives you a 30-day grace period before certain loan inquiries are reflected in your FICO® credit scores. And FICO may record multiple inquires for the same type of loan as a single inquiry as long as they’re made within a certain window. For FICO scores calculated from older versions of the scoring formula, this window is 14 days; for FICO scores calculated from the newest versions of the scoring formula, it’s 45 days.

Similarly, the VantageScore model gives you a rolling two-week window to shop for the best interest rates for certain loans. “That way, they only impact your credit score once,” the company says.

Bottom line

Your credit scores play a big role in your financial well-being. Before applying for credit, take time to build your credit scores. With stronger credit, you may improve your chances of being approved for the financial products you want at the best possible terms and rates.

To help you keep track of hard inquiries that may influence your credit scores, check your credit reports from TransUnion and Equifax . While one hard inquiry may knock a few points off your scores, multiple inquiries in a short amount of time may cause more damage.

https://lendingcapital.net

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kennethherrerablog · 5 years

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What is a Good Credit Score?

Most financial decisions you make can be summarized into a three-digit number.

That one number can cost, or save, you hundreds of thousands of dollars over your life.

Lenders not only decide whether to give you a loan based on this number, it also determines how good your interest rate is. Lower interest rates means you can pay off loans a lot faster.

When buying a home, this has a huge impact on how much you ultimately pay.

This critical number is called your credit score.

Improving it is one of the big wins of personal finance.

So what’s a good score anyway? And how do they work?

How Credit Scores Work

A credit score takes personal data and uses the information to determine a number ranging from 300 to 850. It’s a summary of how likely you are to pay your loans back. Credit reporting agencies use an algorithm to analyze all the information they have on you ad give you a credit score.

Credit scores are broken down into several levels:

Very Poor = 300-580

Fair = 580-670

Good = 670-740

Very Good = 740-800

Exceptional = 800 and above

Every time you make a payment, miss a payment, take out a new loan, or even have your credit report checked, that information gets added to your credit report. From there, your score gets calculated.

Credit scores tend to increase slowly over time. You’ll need a long history of flawless payments on several different types of loans in order to get an amazing score. That doesn’t happen overnight.

But your score can drop pretty quickly. All it takes is one missed payment and you’ll get hit. And a default on a loan is even worse, that will immediately tank your score and won’t get dropped from your credit report for years.

In college, I had to see a bunch of doctors for a herniated disk of mine. I was also moving around a lot at the time and one of the bills never made it to me. It went to collections and I paid it as soon as the collections agency got a hold of me. But it had already been added to my credit report and took 7 years for it to get dropped. My score took a huge hit during that period. Luckily I wasn’t trying to get a mortgage at the time.

Who Decides Your Credit Score

Your credit score is the result of an algorithm created by the Fair Isaac Corporation (now called FICO). While FICO is not the only credit scoring tool, it is the most popular. The exact math formula used to determine an individual’s credit score is kept under extreme secrecy.

What many people don’t realize is that FICO has multiple versions of your credit score which is why you might get two different results when applying for a store card verses a mortgage loan. Additionally, some lenders prefer to get your credit score from Vantage, Community Empower, Experian, Equifax or TransUnion.

Depending on who your lender uses to pull your score, it might be slightly different. The differences between the scores are trivial, it’s not worth spending time learning how they each work. You’ll use the same methods to improve them all.

Factors That Impact a Credit Score

Your credit score focused primarily on:

Payment history

Amount owed

Credit age

New credit

Type of credit used

Payment History

Your payment history makes up 35% of your total credit score. That means late payments or non-payment will have the largest impact on your credit score. This factor looks at whether you make your payments on time if you have any bankruptcies or accounts with a collection agency. And how long it’s been since you’ve had credit issues.

Amount owed

This factor makes up roughly 30% of your total credit score. The amount of money you owe is primarily concerned with the amount of money you owe debtors relative to your income and the amount of credit you have available. For example, if someone has a credit card with a $5,000 limit and they have a balance of $2,500, they’re total utilization score is 50%. Lenders like to see a total utilization score of less than 30%. Your credit utilization score includes all of your debt including credit cards, student loans, auto loans, home loans, and personal loans.

Credit Age

Your credit age makes up 15% of your credit score. This number just refers to how long you’ve had credit accounts open. The longer your credit history, the higher your score. This is why you’ll see advice to keep your oldest credit card open. That lengthens your credit age and improves your credit score a bit.

New Credit

This portion of your score looks at how many new lines of credit you’ve obtained in recent months as well as how many times you’ve applied for loans or lines of credit. This section makes up 10% of your credit score. The one time you want to worry about this is when you’re applying for a major loan like a mortgage. Don’t apply for any new credit cards or other loans in the months before you apply for the mortgage.

Type of Credit

Your mix of credit types comprises the last 10 percent of your credit score. A mix of credit types (revolving, installment, and open) looks better on your credit score than a focus on one type of loan. Revolving credit includes credit cards that have a balance limit. This just means that you have continuous access to the line of credit as you pay off your total owed. Installment debt refers to loans or lines of credit that have a single balance you pay off. Open debt refers to open lines of credit that you can access indefinitely.

FICO vs. VantageScore

The FICO credit score is the most popular choice for most lenders, but it’s not the only score that lenders can access.

Fair Isaac (now FICO) launched the FICO credit score in the 1980s. The design of this score was to help lenders identify potentially risky borrowers. FICO held the market on the credit scoring industry for more than 20 years. In March of 2006, Equifax, Experian, and TransUnion worked together to launch VantageScore.

Both VantageScore and FICO provide the same service to lenders, but there are some differences between the two companies.

The biggest difference that consumers will notice is the credit score range and percentage that each component of the credit score considers. The FICO score ranges from 300 to 850, as mentioned above. VantageScore 3.0 recently adopted the 300 to 850 credit score range, but earlier versions used a 500-990 range.

Another major difference that affects the ending credit score is the factors that the credit scoring company considers. As mentioned above, FICO looks at five major components: payment history, amount of debt, credit history age, type of credit and new credit.

VantageScore looks at six different categories: payment history, age and type of credit, percent of credit used, total debt, recent credit behavior, and available credit. It’s also important to note that VantageScore weighs payment history heavier (40%) than FICO. Recent credit behavior and inquiries only make up 5% of the total credit score for VantageScore compared to the 10% FICO factors.

Neither score is better and I wouldn’t stress these details. Getting a few types of loans and paying them off flawlessly over a long period of time is going to be the best way to improve both scores.

Why Credit Scores Matter

Credit scores are important for several reasons. While many people think the credit score only matters if you’re applying for a home loan or car loan, your score can actually affect other areas of your finances.

A few other common uses of your credit score:

Getting a cell phone

Renting an apartment

Purchasing insurance

Applying for a job

Opening a utility account

Getting an auto loan

Getting a home loan

Applying for public assistance

Not only does it determine if you get a loan in the first place, your credit score also affects how much you have to pay in interest.

If you have a higher credit score you can get better interest rates on loans and credit cards. You may also get better terms on your insurance and phone bill. Having a low credit score could result in a higher down payment for a rental property or utility account.

Credit scores impact you the most when you apply for a mortgage. If you don’t have a good score, you might not be able to get a mortgage at all. And a great credit score can get you a much lower interest rate. You’ll save tens of thousands of dollars easily.

When you start saving for a down payment for a home, also check your credit score and do anything you can to start improving it. It’s definitely worth the effort.

Improving Your Credit Score

Time is a major player when it comes to raising your credit score. It takes time for your current lenders to report payments to the credit bureaus, so your score may not change for weeks or even a few months after you’ve made significant changes.

A few things you can do to help improve your credit score include:

Get current on your payments

If you’re behind on credit card bills or loan payments, make it a priority to get your payments back on track. Make your payment on time, every month, for every bill. If all you can afford is the minimum payment, pay that every month. If you’re struggling with paying your bills, you can call your lenders and ask for a reduced payment plan or consider consolidating your debt into one payment.

On-time payments make the biggest impact on your credit score, so this should be a top priority if your goal is to increase your score.

Pay off debt

Reduce the amount of money you owe and your score will go up. If you have any bills in collections, pay them quickly and ask the collection agency to note that they were paid in full on your credit report.

Aim to keep the balances on your credit cards lower than 30% of the total available balance to reduce negative effects on your credit score. If you have an account with a good payment history you could ask your lender to increase your credit line. Since your amount of available credit will go up, your credit utilization could decrease, helping you add a few points to your score. To really optimize your score, call your credit card companies every 6 months and ask for a higher limit. Even if it’s small, it’ll add up over time giving you a really low credit utilization.

Don’t close old accounts

Keeping old accounts open (even those you don��t use) is more beneficial than closing them. When you close a credit card account you reduce your available credit (which raises your credit utilization score) and you reduce your average credit age.

Even if you want to close a few accounts to simplify your life, try to keep the oldest account open.

Limit credit applications

Don’t apply for new lines of credit unless you need them. When you apply for a lot of credit cards or loans, each lender checks your credit. Hard pulls (when a lender has your permission to pull your credit information) can ding your score by a few points.

Apply for new loans when you need them but definitely avoid applying for anything before a major loan like a mortgage or a car loan.

Apply for a credit boost

Some companies, like Experian, offer a credit boosting service. This service allows you to add a bank account so that you can report positive payment history on most bills (like utilities, rent, and phone bills) to your account. These on-time payments will help give your score a bump within days instead of weeks.

What is a Good Credit Score? is a post from: I Will Teach You To Be Rich.

What is a Good Credit Score? published first on https://justinbetreviews.tumblr.com/

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samuelfields · 5 years

Text

What is a Good Credit Score?

Most financial decisions you make can be summarized into a three-digit number.

That one number can cost, or save, you hundreds of thousands of dollars over your life.

Lenders not only decide whether to give you a loan based on this number, it also determines how good your interest rate is. Lower interest rates means you can pay off loans a lot faster.

When buying a home, this has a huge impact on how much you ultimately pay.

This critical number is called your credit score.

Improving it is one of the big wins of personal finance.

So what’s a good score anyway? And how do they work?

How Credit Scores Work

Credit scores are broken down into several levels:

Very Poor = 300-580

Fair = 580-670

Good = 670-740

Very Good = 740-800

Exceptional = 800 and above

Every time you make a payment, miss a payment, take out a new loan, or even have your credit report checked, that information gets added to your credit report. From there, your score gets calculated.

Who Decides Your Credit Score

Factors That Impact a Credit Score

Your credit score focused primarily on:

Payment history

Amount owed

Credit age

New credit

Type of credit used

Payment History

Amount owed

Credit Age

New Credit

Type of Credit

FICO vs. VantageScore

The FICO credit score is the most popular choice for most lenders, but it’s not the only score that lenders can access.

Both VantageScore and FICO provide the same service to lenders, but there are some differences between the two companies.

Why Credit Scores Matter

A few other common uses of your credit score:

Getting a cell phone

Renting an apartment

Purchasing insurance

Applying for a job

Opening a utility account

Getting an auto loan

Getting a home loan

Applying for public assistance

Not only does it determine if you get a loan in the first place, your credit score also affects how much you have to pay in interest.

When you start saving for a down payment for a home, also check your credit score and do anything you can to start improving it. It’s definitely worth the effort.

Improving Your Credit Score

A few things you can do to help improve your credit score include:

Get current on your payments

On-time payments make the biggest impact on your credit score, so this should be a top priority if your goal is to increase your score.

Pay off debt

Don’t close old accounts

Keeping old accounts open (even those you don’t use) is more beneficial than closing them. When you close a credit card account you reduce your available credit (which raises your credit utilization score) and you reduce your average credit age.

Even if you want to close a few accounts to simplify your life, try to keep the oldest account open.

Limit credit applications

Apply for new loans when you need them but definitely avoid applying for anything before a major loan like a mortgage or a car loan.

Apply for a credit boost

What is a Good Credit Score? is a post from: I Will Teach You To Be Rich.

from Finance https://www.iwillteachyoutoberich.com/blog/what-is-a-good-credit-score/ via http://www.rssmix.com/

0 notes

andrewdburton · 5 years

Text

What is a Good Credit Score?

Most financial decisions you make can be summarized into a three-digit number.

That one number can cost, or save, you hundreds of thousands of dollars over your life.

Lenders not only decide whether to give you a loan based on this number, it also determines how good your interest rate is. Lower interest rates means you can pay off loans a lot faster.

When buying a home, this has a huge impact on how much you ultimately pay.

This critical number is called your credit score.

Improving it is one of the big wins of personal finance.

So what’s a good score anyway? And how do they work?

How Credit Scores Work

Credit scores are broken down into several levels:

Very Poor = 300-580

Fair = 580-670

Good = 670-740

Very Good = 740-800

Exceptional = 800 and above

Every time you make a payment, miss a payment, take out a new loan, or even have your credit report checked, that information gets added to your credit report. From there, your score gets calculated.

Who Decides Your Credit Score

Factors That Impact a Credit Score

Your credit score focused primarily on:

Payment history

Amount owed

Credit age

New credit

Type of credit used

Payment History

Amount owed

Credit Age

New Credit

Type of Credit

FICO vs. VantageScore

The FICO credit score is the most popular choice for most lenders, but it’s not the only score that lenders can access.

Both VantageScore and FICO provide the same service to lenders, but there are some differences between the two companies.

Why Credit Scores Matter

A few other common uses of your credit score:

Getting a cell phone

Renting an apartment

Purchasing insurance

Applying for a job

Opening a utility account

Getting an auto loan

Getting a home loan

Applying for public assistance

Not only does it determine if you get a loan in the first place, your credit score also affects how much you have to pay in interest.

When you start saving for a down payment for a home, also check your credit score and do anything you can to start improving it. It’s definitely worth the effort.

Improving Your Credit Score

A few things you can do to help improve your credit score include:

Get current on your payments

On-time payments make the biggest impact on your credit score, so this should be a top priority if your goal is to increase your score.

Pay off debt

Don’t close old accounts

Even if you want to close a few accounts to simplify your life, try to keep the oldest account open.

Limit credit applications

Apply for new loans when you need them but definitely avoid applying for anything before a major loan like a mortgage or a car loan.

Apply for a credit boost

What is a Good Credit Score? is a post from: I Will Teach You To Be Rich.

from Finance https://www.iwillteachyoutoberich.com/blog/what-is-a-good-credit-score/ via http://www.rssmix.com/

0 notes

paulckrueger · 5 years

Text

What is a Good Credit Score?

Most financial decisions you make can be summarized into a three-digit number.

That one number can cost, or save, you hundreds of thousands of dollars over your life.

Lenders not only decide whether to give you a loan based on this number, it also determines how good your interest rate is. Lower interest rates means you can pay off loans a lot faster.

When buying a home, this has a huge impact on how much you ultimately pay.

This critical number is called your credit score.

Improving it is one of the big wins of personal finance.

So what’s a good score anyway? And how do they work?

How Credit Scores Work

Credit scores are broken down into several levels:

Very Poor = 300-580

Fair = 580-670

Good = 670-740

Very Good = 740-800

Exceptional = 800 and above

Every time you make a payment, miss a payment, take out a new loan, or even have your credit report checked, that information gets added to your credit report. From there, your score gets calculated.

Who Decides Your Credit Score

Factors That Impact a Credit Score

Your credit score focused primarily on:

Payment history

Amount owed

Credit age

New credit

Type of credit used

Payment History

Amount owed

Credit Age

New Credit

Type of Credit

FICO vs. VantageScore

The FICO credit score is the most popular choice for most lenders, but it’s not the only score that lenders can access.

Both VantageScore and FICO provide the same service to lenders, but there are some differences between the two companies.

Why Credit Scores Matter

A few other common uses of your credit score:

Getting a cell phone

Renting an apartment

Purchasing insurance

Applying for a job

Opening a utility account

Getting an auto loan

Getting a home loan

Applying for public assistance

Not only does it determine if you get a loan in the first place, your credit score also affects how much you have to pay in interest.

When you start saving for a down payment for a home, also check your credit score and do anything you can to start improving it. It’s definitely worth the effort.

Improving Your Credit Score

A few things you can do to help improve your credit score include:

Get current on your payments

On-time payments make the biggest impact on your credit score, so this should be a top priority if your goal is to increase your score.

Pay off debt

Don’t close old accounts

Even if you want to close a few accounts to simplify your life, try to keep the oldest account open.

Limit credit applications

Apply for new loans when you need them but definitely avoid applying for anything before a major loan like a mortgage or a car loan.

Apply for a credit boost

What is a Good Credit Score? is a post from: I Will Teach You To Be Rich.

from Surety Bond Brokers? Business https://www.iwillteachyoutoberich.com/blog/what-is-a-good-credit-score/

0 notes

mcjoelcain · 5 years

Text

What is a Good Credit Score?

Most financial decisions you make can be summarized into a three-digit number.

That one number can cost, or save, you hundreds of thousands of dollars over your life.

Lenders not only decide whether to give you a loan based on this number, it also determines how good your interest rate is. Lower interest rates means you can pay off loans a lot faster.

When buying a home, this has a huge impact on how much you ultimately pay.

This critical number is called your credit score.

Improving it is one of the big wins of personal finance.

So what’s a good score anyway? And how do they work?

How Credit Scores Work

Credit scores are broken down into several levels:

Very Poor = 300-580

Fair = 580-670

Good = 670-740

Very Good = 740-800

Exceptional = 800 and above

Every time you make a payment, miss a payment, take out a new loan, or even have your credit report checked, that information gets added to your credit report. From there, your score gets calculated.

Who Decides Your Credit Score

Factors That Impact a Credit Score

Your credit score focused primarily on:

Payment history

Amount owed

Credit age

New credit

Type of credit used

Payment History

Amount owed

Credit Age

New Credit

Type of Credit

FICO vs. VantageScore

The FICO credit score is the most popular choice for most lenders, but it’s not the only score that lenders can access.

Both VantageScore and FICO provide the same service to lenders, but there are some differences between the two companies.

Why Credit Scores Matter

A few other common uses of your credit score:

Getting a cell phone

Renting an apartment

Purchasing insurance

Applying for a job

Opening a utility account

Getting an auto loan

Getting a home loan

Applying for public assistance

Not only does it determine if you get a loan in the first place, your credit score also affects how much you have to pay in interest.

When you start saving for a down payment for a home, also check your credit score and do anything you can to start improving it. It’s definitely worth the effort.

Improving Your Credit Score

A few things you can do to help improve your credit score include:

Get current on your payments

On-time payments make the biggest impact on your credit score, so this should be a top priority if your goal is to increase your score.

Pay off debt

Don’t close old accounts

Even if you want to close a few accounts to simplify your life, try to keep the oldest account open.

Limit credit applications

Apply for new loans when you need them but definitely avoid applying for anything before a major loan like a mortgage or a car loan.

Apply for a credit boost

What is a Good Credit Score? is a post from: I Will Teach You To Be Rich.

from Money https://www.iwillteachyoutoberich.com/blog/what-is-a-good-credit-score/ via http://www.rssmix.com/

0 notes

prosperopedia · 5 years

Text

CapitalOne Creditwise Free VantageScore Credit Report from TransUnion

Article Summary

CapitalOne provides free credit scores for credit card holders through their CreditWise monitoring product. When you sign up for a credit card with CapitalOne, you get access to CreditWise as a free add-on service.

CreditWise uses TransUnion data to provide CapitalOne credit card holders with a credit score calculated using the VantageScore 3.0 credit score calculation, which has a credit scale ranging from 300-850. The credit score calculated by VantageScore 3.0 is similar to a FICO score, which is the most popular mechanism for assessing credit.

To access CreditWise information, CapitalOne credit card holders can login to their CapitalOne online account, where they will see their CreditWise score listed on the dashboard of their credit card account. Clicking on the score allows you to see the details of your CreditWise score, including factors that influence the score and how those have changed recently.

You probably know CapitalOne most from their commercials where they always ask, “What’s in your wallet?”

Well, it just so happens that I have a CapitalOne Sparks Business card in my wallet. I use it to purchase most of what we buy for our family’s vinyl decor business. After using a Chase credit card prior to that, I shopped for a card that had a better reward offer, and I liked that the Sparks Business card offered 2% cash back, twice what I was getting on my Chase card.

I’ve never been one to recommend getting a credit card for the purpose of collecting rewards points. I think that’s a bad idea, and simply doesn’t make sense. There are lots of personal finance and debt management experts who are adamantly opposed to using credit cards for any reason. The practice of going after credit card points and earning them with the intent of spending them on travel and other leisure items is especially criticized by Dave Ramsey, who argues that, “Credit card points are nothing but bad news—especially for people who don’t follow a budget and are tempted to overspend.”

If you are one of those millions of people who are not disciplined enough to spend your money with purpose, if you are kind of a sucker for “free” things that end up costing you much more than what you anticipated, getting a credit card is always a bad idea, no matter what the reason.

However, if you are among that group who use a budget, who spend according to their budget and who ensure that their spending habits are in alignment with their value system and financial goals, having a credit card can be a benefit to you.

Having a Sparks Business card doesn’t induce me at all to spend more money simply to earn more points, or to do so recklessly. Instead, I just keep the card on file with my suppliers, who charge it when we place orders for shipping boxes, vinyl material, and other things we use to fulfill customer orders. In fact, spending more using the card is an indication that my business is growing. So, you could say that I am inclined to spend more each month, but ultimately that extra spending is based on my business growth efforts. It’s a good thing. In a typical month, rather than getting $200 back, we get twice that amount. An extra $200+ per month in rewards is worth having and using a Sparks Business credit card instead of one that returns have the rewards percentage (1%) that is standard with the majority of personal and business credit cards.

CapitalOne’s CreditWise Service

After I set up my CapitalOne account, including registering for their online credit card management portal, I was pleasantly surprised to see that there was a section on my dashboard that showed my VantageScore number, and that allowed me to see how my financial activities were affecting that score.

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CreditWise Mobile Apps

One of the benefits of using CapitalOne’s CreditWise credit monitoring service is that there are mobile apps available for use with both iOS and Android devices. If you’re the type who likes to be able to monitor your credit score and related activity directly from an app instead of logging in through a browser, these apps come in handy.

You can download the app that works for your device from either Apple’s App Store (for iOS powered devices) or from the Google Play store (for Android powered devices).

CreditWise Available Without CapitalOne Credit Card Account

Even though it’s great that CreditWise is a free service added on top of having a CapitalOne credit card, you can also access the service for free outside of even being required to be a CapitalOne cardholder. You can simply go to the CreditWise portal and sign up for the service without having to pay for it. You’ll be required to provide information that helps CapitalOne identify you, including your name, social security number, and some other information required to verify your identity, similar (not quite as extensive) to what you provide when purchasing a full credit report.

Using CreditWise Doesn’t Negatively Affect Your Credit

People often worry about checking their credit too often, having heard that doing so will damage your credit and negatively affect your score. A service like CreditWise (similar to the alternatives I’ll describe below) does not have that affect. CreditWise data is accessed using what’s called a soft credit pull or soft pull, meaning that the information is retrieved in a way that’s not connected with actually applying for more credit. When you’re actually submitting an application for a home loan, a car loan, a new credit card, or other types of credit, a full credit check is done using a hard credit pull or hard pull. These interactions between lenders and the credit bureaus signify that you’re actively seeking additional credit, and having too many of them is looked at negatively.

Soft pulls don’t show up on credit reports. Hard pulls typically do, and they pull down your overall score.

CreditWise Monitors Your Credit Based on Your Social Security Number

Besides simply providing a credit score and some advice on how to improve it, CreditWise actually monitors your social security number to keep you alerted in a situation where it shows up on the dark web or wherever else identify fraud could occur. If you have a CreditWise account, the service assertively checks the web and other venues where credit information transpires to see whether there is any activity associated with your social security number. You can set up alerts to be notified when CreditWise finds anything that could be related to your identity.

Alternatives to CapitalOne’s CreditWise Service

I have noticed that many of the credit card issuers are doing something similar. Here are just a few of the ones I’ve seen as I’ve been shopping for credit cards and setting up accounts with ones that work best for me and my personal and business needs.

Discover offers your FICO score for free with their Discover Credit Scorecard.

Citi provides a similar FICO score summary and details of what factors feed into the score when you have a Citi credit card. Citi’s Visa card is also the official credit card of Costco, which makes that card appealing to my family. We use this card to pay for most of our personal and family expenses because of its rewards benefits and because it also serves as the Costco membership card.

Using the various credit reporting and credit monitoring services available through credit card accounts can give you a better idea of what’s happening with your credit, including showing you what might be negatively affecting your overall score and providing details on how to improve your score.

CapitalOne’s CreditWise has been a perk for me as a business credit card user in addition to the extra rewards I receive when I make business purchases.

The post CapitalOne Creditwise Free VantageScore Credit Report from TransUnion appeared first on The Handbook for Happiness, and Success, and Prosperity Prosperopedia.

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lilac-milk-moon · 5 years

Text

Is it safe to trust Credit Karma?

Note from Mr. SR: Your credit score is an indicator of your financial health. Perhaps even more importantly, it’s what lenders and even utility providers will use to judge your trustworthiness. Having a good credit score can save you thousands in interest and other fees over your lifetime.

Personally, my biggest concern about credit is identity theft.

To make sure your score is progressing and that there is no suspicious activity using your Social Security number, it’s best to regularly monitor your credit report and credit score.

My friend Chris from Money Stir wrote this awesome review of Credit Karma that I’m excited to share with you today. Could it be a good option for your and your family to stay informed about your credit report? Plus, is it safe to trust Credit Karma?

Seeing your credit score and viewing your credit reports has become a necessity in this day and age. Everything is becoming digitized, and new websites are launching all the time. But it can be hard to know if sites and apps like Credit Karma are safe or if they are a scam.

Credit Karma provides a free and easy way of viewing your financial history. I discovered Credit Karma earlier this year, and it has drastically simplified my life.

However, it’s always wise to confirm the company you are using is legitimate and safe before jumping in. Is it safe to trust Credit Karma?

The reality is that you should be paranoid about giving any person or company your social security number. If the wrong people get that info, that can easily lead to identity theft or having your financial accounts drained.

Or they might show up at your house asking for money. And nobody wants that.

Before we dive into talking about whether Credit Karma is safe, let’s first look at why you should want to view your credit report.

Your credit score matters A LOT. Here is why:

When you borrow money, companies need a way to figure out if you will pay back the money or not. The best way to do that is to dive into your financial past and see if you have any monsters lurking.

Do you make payments on time?

How much debt do you currently have?

Are you currently trying to spend money like a Kardashian?

Have you defaulted on any loans in the past?

Are there other reasons someone should be concerned about lending you money?

Your credit score and reports help fill this void. It provides a high-level summary of your financial situation and past.

But with that said, having a high credit score doesn’t necessarily mean you are great with money or have a strong financial foundation. The primary questions your credit score attempts to answer: “Is this person financially reliable, and are they currently overextended?”

If you want to get any kind of loan, whether that is for a home, car, credit card, etc. you want to have as high of a credit score as possible. Rates and credit limits are determined by your credit history and credit score. So it is in your best interest to make sure you stay on top of your financial picture.

If there is incorrect information in your credit report, this could have a negative impact on your credit score. But you can’t fix what you are unaware of. This idea is why it is crucial to view your credit score and credit reports periodically.

It would be a shame to apply for a home mortgage, only to find out you’ve been denied for the loan. You also may find yourself applying for a job, and the prospective company pulls up your credit report.

Don’t be taken off guard! Check your credit score and report.

At the very least, having a stellar credit score ensures that you’ll qualify for the lowest interest rates possible, potentially saving you thousands of dollars in interest payments.

About Credit Karma

Credit Karma was created in 2007 to provide consumers with their credit score for free and on-demand.

A summary of what they provide is the following:

View credit scores from Equifax and TransUnion (using VantageScore 3.0)

Access Equifax and TransUnion credit reports

Easily view the accounts you have opened or have closed, with the balances reported on your credit reports

Provides a way to dispute errors on your credit report

Easily signup for new credit cards, loans, and insurance policies, which are recommended based on your credit score

Other features that aren’t as obvious include:

Viewing an estimated value for your vehicles

Seeing your “insurance score”, which can be used in calculating your chances in lowering your car insurance rate

Comparing home loan rates with what you are currently paying

Get estimated rates and approval estimates on personal loans

See which credit cards you have a high likelihood in qualifying for

Free tax filing service

View and post reviews of credit cards

And one of the best features of Credit Karma? Their service is 100% FREE.

Ever since I started using Credit Karma, I’ve made it a habit in logging in once a month. I love being able to quickly pull up my credit score and see how things have changed over time. This feature is an excellent reason to signup for the service ASAP, as you can see how your credit score changes over your financial history. Each time you pull up your score, it will keep that info in their database that you can access at any point.

As part of our strategy in playing financial catch-up, we plan on continuing to use Credit Karma and feel the service provides incredible value.

I recently closed a few credit card accounts, and I noticed my credit score started going down a few points. I expected this to happen, and I’m relieved that Credit Karma is, in fact, pulling in my real credit report.

Should I trust Credit Karma with my information?

When you are entering your private information, one vital aspect is how safe your data is in their system.

The great news is that Credit Karma has taken the necessary steps in keeping your personal information safe. They currently have around 85+ million members and are growing at a rapid pace.

Being such a massive company, you know the government is keeping a close eye on how they are using data. They also cover the main things you would expect a major company to do in order to keep things secure:

They use a DigiCert EV SSL certificate, which is the highest grade authentication available

128-bit encryption and they limit who and how your SSN is accessed

A detailed privacy policy that is certified by TRUSTe

Credit Karma will not sell your personal information to 3rd parties

They regularly go to 3rd parties to run security audits

A bug bounty program that pays people to find vulnerabilities and issues in their system

But even though Credit Karma has top notch security practices, doesn’t mean someone couldn’t get access to your account. That’s why you should ensure you are using a secure password and setting answers to your security questions that people can’t guess the answers to.

If you look at the Credit Karma IOS app, you’ll notice they have 130,000 reviews with an average of 5/5 stars. Apparently, I’m not the only one who loves Credit Karma!

Credit Karma’s mobile app is fantastic. They make you set a security pin, and on my iPhone, I can enable Face ID to make it fast and straightforward in logging into my account. Clearly, they prioritize security and the amount of effort in making every aspect of their system user-friendly shows when you start using their service.

Just like any other site or service, Credit Karma could come under attack and have their systems compromised, but it’s clear to me that they are very proactive in doing everything they can to avoid that.

But how does Credit Karma make money?

It would be a huge red flag if a company were collecting your most personal information, and it was unclear how they made money.

This is not an issue with Credit Karma.

It is true their services and website are 100% free. The way they make money is from the products and services that are recommended once you log in. Any time someone signs up for a credit card, loan, or service through the Credit Karma website, they earn a hefty commission.

And given how many people use their platform, you know they are probably bringing in big bucks. According to this article, the company had over $500 million in revenue in 2016. The amount of money they bring in is excellent news because you know security has to be a top concern for Credit Karma. And this confirms they have plenty of money to make sure your data is safe and secure.

But with that said, there are no guarantees that a data breach can’t happen in the future. But from what I can tell, I don’t think the risk of this happening with Credit Karma is more significant than any other large company or bank. Most of the risk lies in someone guessing your password, so make sure you are using a secure password.

The pain of viewing your credit score and credit report before Credit Karma

Before Credit Karma, I was accessing my credit reports for free through AnnualCreditReport.com. This site allows you to view your credit report from the top three companies once a year, for free.

The issue in using AnnualCreditReport.com is that you don’t get access to your credit score, and you can only view your credit reports once per year.

I was also accessing my credit scores through my credit card websites that provided a credit score feature. This process worked okay, but each of them would use a different score, and it was time-consuming pulling each one up. In most cases, they only update your credit score once per month.

I’ve also used other companies in the past that allow you to pull up your credit score and reports, but they often came with significant monthly charges. Before I found Credit Karma, I was seriously contemplating signing up for one of these services.

Credit Karma’s philosophy is that they want to give everyone access to their credit score and reports for free. The more information you have about your financial picture, the more you can make informed decisions about your future. You can use this information in helping put together a livable budget that is sustainable and realistic.

Credit Karma provides much more than your credit score

At first, you might think the main benefit of Credit Karma is being able to view your credit score.

But the best feature of Credit Karma is that it also has a credit monitoring service (which is also FREE). Once enabled, you will be notified when there are significant changes to your credit report.

In other words, you immediately get minions working for you that send notifications any time something significant happens on your credit report.

This is a huuuuuge deal.

Let’s say someone manages to get your info and signs up for a new credit card. The only way you would know this happened is by manually viewing your credit report, or getting something in the mail about a new account that you didn’t open.

With Credit Karma, you would get an email (or mobile notification) when that new account shows up on any of your two credit reports. This notification allows you to jump onto this identity fraud ASAP.

A few weeks ago, I was able to test out this feature. I signed up for a new credit card, and a few days later, I ended up getting two emails with the new account that showed up on both of my credit reports in Credit Karma. Ask anyone who has had their identity stolen, and they will scream this is a massive benefit.

Their credit card monitoring feature is another reason you might want to consider opening up a Credit Karama account ASAP. Before, to get this service, you would have to pay a monthly fee. But not anymore!

Do I have to use Credit Karma?

If you have other ways of viewing your credit score and credit reports, don’t feel like you have to use Credit Karma. By now, it’s pretty clear that I think it’s safe to use Credit Karma, but they aren’t the only place where you can get your credit reports for free.

As long as you are periodically viewing this information to make sure it is accurate, the way you do this doesn’t matter. But there are services out there that charge a fee and don’t provide the benefits Credit Karma does, so it is worth taking a close look to see which is the best option.

Credit Karma is not only safe, but it is more usable than many other “premium” credit card monitoring services I’ve used in the past.

The minimum you should do is view your credit reports for free on AnnualCreditReport.com once per year. You aren’t going to be able to view this information more than once per year, but it is better than doing nothing. And you can access all three credit reports.

Negatives in using Credit Karma

Credit Karma is a legitimate and safe company that provides enormous value, especially considering it is free. I couldn’t find any information that inferred that your personal information is at risk using Credit Karma.

But there is one downside to Credit Karma. They only give you access to your credit score and report from two of the three major credit bureaus. You can access TransUnion and Equifax credit reports, but not Experian’s.

In most cases, any changes to your credit will be reported to all three credit agencies. But there is a chance something could only go to one report, and so I would suggest pulling up Experian’s credit report once per year from AnnualCreditReport.com. This plan ensures that if there is some unique discrepancy with that credit report, you can catch the error.

Is this a big issue? Yes and no. It is possible something unique could show up on Experian’s credit report, but in most cases, it will end up showing up in the other reports as well. But it is better to play it safe and cover your bases.

Outside of this one issue, Credit Karma is a fantastic service that is incredibly safe and reliable.

Credit Karma’s UI is increasingly optimized to ‘sell’ you products

One thing that you should be aware of is that over time the user interface (what you see when using the service) is increasingly tailored to increase the number of people that sign up for credit cards, loans and other products via their service.

As I mentioned earlier, this is how the company makes money.

The reason this matters is because if you are the kind of person that makes impulsive decisions and signs up for a new credit card after seeing one ad for it, then spending time on a site which constantly highlights those products might be risky.

While your personal information will be as safe as possible with Credit Karma, that doesn’t mean your financial foundation will be safe if the platform pushes you to take our loans you don’t need. However, if used properly, it can actually make you much more aware of how to improve your finances.

Credit Karma is a great tool for creating a strong financial foundation

Credit Karma isn’t going to magically improve your credit score or credit history.

But it does provide a fantastic bird’s eye view of your financial picture.

If you are you trying to become credit card debt free, you can use it to ensure your payments end up showing on your credit card reports. Over time, your credit score should increase.

I also found it valuable to see the average age of all my credit card accounts. This info is a crucial data point that is used in generating your credit score and is useful in figuring out if you should close individual credit card accounts. You might not want to close your oldest credit card, for example, as that could drastically reduce the overall average.

You also can see how much debt you have, relative to the amount of credit you have available. Take a look at the image below for an example in how this looks:

All the data I can access from the desktop browser is accessible in their mobile applications. It’s refreshing to see how much info you can access at any point in digging deep into your financial history.

Credit reports aren’t intuitive

If you have ever taken a close look at a credit report, they usually aren’t easy to work through. You might be looking at a long list of accounts, and it is hard to make sense of all of the info.

Credit Karma easily and safely makes the details of your credit report accessible in your account in an incredibly intuitive way.

I’m amazed at the amount of clarity I now have about my credit history. I now look forward to seeing my credit score and credit report! I’ve never been this excited about my credit report in the past. It always felt like a chore. But now I’m passionate about digging deep into the details, and ensuring the information in my credit reports is accurate.

If you are married, make sure that both you and your spouse signup for accounts. There might be some something unique in one of your credit reports. And since each Credit Karma account is free, there hasn’t been a better time to make sure your whole financial house is in order.

Entering your social security number and personal information into a website form can be incredibly scary. Given the history of Credit Karma and the lengths they have gone in securing your data, you can feel confident that your info is safe. But like anything in life, especially on the internet, there are no guarantees, and most of the risk involves the strength of your password, the answers to your security questions, and making sure your email account is locked down.

I highly recommend giving Credit Karma a try. I’m confident my info is safe, and it provides useful information I can access at any time.

This article was written by Chris from Money Stir and originally appeared on The Money Mix. It is republished here with permission.

The post Is it safe to trust Credit Karma? appeared first on Semi-Retire Plan.

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dyernews · 6 years

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How You Can Get Your Free Annual Credit Report and Monitor Your Credit

There was once a time when getting your credit report likely meant visiting a “free” site… and enrolling in a some paid program before you’d actually get to see your report. Thankfully those days are gone and you can now obtain a copy of your official credit reports directly from all three major credit bureaus on an annual basis by visiting the aptly-named AnnualCreditReport.com. Best of all, it seriously won’t cost you a dime.

Here’s a step-by-step guide to requesting your free credit reports on AnnualCreditReport.com as well as a look at some other free options for monitoring your credit all year long.

How to Get Your Free Credit Report with AnnualCreditReport.com

Check your URL The first step in retrieving your free, official credit report is to ensure you land on the correct website: AnnualCreditReport.com. As of March 2019, the site looks like the screenshot on the left. Since variations on these terms or domain may take you to imitators, be sure to double check the address and confirm that your web browser shows that the site is secure before proceeding. You’ll see why this is so important as we move forward.

Provide your information To request your report(s), you’ll first be asked to fill out a form. This includes providing basic data such as your name, birthday, and address along with more sensitive information like your Social Security number. Speaking of your address, if you’ve lived at your current home for less than two years, you’ll also be asked to provide the address of your prior residence.

Select your reports Next you’ll get to select which reports you want to request. Remember: you’re entitled to obtain reports from all three bureaus — TransUnion, Equifax, and Experian — once per year. So you can either elect to get all three at once or request them at different times as you see fit. As the site notes, there may be different advantages to different strategies. For example, if you’re planning a large purchase you plan on financing, you may want to review all of your reports at once to look for errors ahead of time. Meanwhile, spreading them out over time may allow you to monitor for changes throughout the year (more on that later, though). Ultimately the choice is completely up to you.

Confirming your info Depending on which bureau reports you select, you’ll be taken to another screen where you’ll first confirm your information. To verify your identity you’ll be asked a series of multiple choice questions regarding data in your report. This could include a variety of questions, but here a few examples:

“Which of the following is the street number of your most recent previous address?”

“Which of these last names have you used previously?”

“Your credit file indicates you may have a bank card, opened in or around April 2016. Who is the credit provider for this account?”

One of the more interesting questions I’ve received asked for my astrological sign, so these really can vary. Heads ups: there may be times when the correct answer is “none of the above.” Also, If you’ve selected to obtain multiple reports, you’ll have to do similar quizzes for each bureau.

Downloading your report After confirming your identity, you’ll be provided your credit report data. This includes payment history, inquires, various accounts, previous addresses, and more. While you can review this information on the page, it’s also a good idea to save a copy to your computer for further investigation. To do this, look for the “Save as PDF” link near the top of the page. You have an option to print a copy as well.

Once you’re finished saving and reviewing your report, you can move onto your next report by hitting the button at the top of the screen. This will actually return you to AnnualCreditReport.com and then allow you to move onto your next requested report.

Additional services As you view your individual reports, you may encounter invitations to view your credit score or sign-up for other products such as ID monitoring. Be aware that these products may not be free or will at least require you to sign-up for them. These are also completely optional and shouldn’t impact your ability to view the credit report data you’re entitled to.

Filing disputes Another option you may see displayed on your reports is the right to dispute. If you find an error, clicking this button should walk you through the required steps toward getting it corrected. Once again these disputes are per bureau, so you may need to file multiple reports to ensure that errors aren’t impacting your creditworthiness unfairly.

Other Free Credit Monitoring Options

While AnnualCreditReport.com is a great source for official info on an annual basis, it’s also a smart idea to keep up with your credit year-round. Luckily there are now several free credit monitoring sites you can utilize to help you do that. By providing you educational credit scores — calculated using the VantageScore 3.0 model as opposed to FICO — these various sites will help give you a better idea of where your credit stands and how you can improve it.

As a general note, to sign-up to these services, you’ll need to ensure that you’re credit reports aren’t frozen. However, once you’re on board, you should be able to refreeze without interrupting future updates. It should also be mentioned that each of these options monetizes by offering ads for credit cards and other products, so keep that in mind when exploring them for yourselves.

Without further ado, let’s take a look at three popular free credit monitoring sites and what each has to offer:

Credit Karma Easily the most well-known free credit monitoring site these days is Credit Karma. As it turns out, that’s for good reason as it’s also one of the best. In additon to offering education credit scores and data from your credit report, Credit Karma’s features include a tool that will help you find unclaimed property, was well as a completely free tax prep service.

Getting back to what they offer in terms of credit monitoring, the site allows you to view scores from both Equifax and TransUnion. Not only can you see how those scores measure up but can also dive into the specifics and get tips on where you can improve. If you’re looking to keep up with your credit in between annual reports, Credit Karma is a great place to start.

Credit Sesame Another site that’s been gaining popularity is Credit Sesame. While many of these credit monitoring sites offer similar features, Dyer News contributor Kyle Burbank notes that Credit Sesame has one of the best options for alerts, as you can get notifications when your score breaks above or below a certain threshold. Another unique aspect of the site is the free $50,000 in identity theft insurance they include just for signing up.

In terms of downsides, Credit Sesame only includes a score from TransUnion as opposed to the two scores featured on Credit Karma. Also of note that is that, while Credit Sesame will provide you with insights for raising your credit scores, in-depth credit report data is only available with one of their paid subscriptions. Nevertheless, with more helpful tips and free ID theft insurance, there’s good reason to add Credit Sesame to the mix along with the other services on the list.

WalletHub On the surface, WalletHub might not seem that much different from the other credit monitoring sites on the list. However, our contributor Kyle says that the site may actually be his favorite to use overall. Part of the reason for that is WalletHub’s sleek interface, useful data graphs, and a wealth of resources spanning numerous personal finance products, including insurance, loans, and much more. He also notes that, of all three free credit sites he uses, WalletHub was the only one to send him notifications when his credit freezes went into effect or when his credit limit was increased on one of his cards.

Unlike Credit Sesame, WalletHub does provide data from your credit report for free. Additionally this info can either be viewed in standard form or as a “Credit Timeline,” which highlights certain changes. Unfortunately, once again, WalletHub only offers one score (TransUnion) instead of two. Still, it may be worth checking out this alternative and decide which free tool you personally prefer.

From correcting errors to preventing fraud, there are several reasons why you should actively monitor your credit. While AnnualCreditReport.com is an essential resource for obtaining official credit report information on a yearly basis, other free services such as Credit Karma, Credit Sesame, and WalletHub can help fill the gaps in between. With these four free sites, you can help ensure that your credit is headed in the right direction.

The post How You Can Get Your Free Annual Credit Report and Monitor Your Credit appeared first on Dyer News.

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personalfinancialtips-blog · 6 years

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Trump Changing Use Of Credit Scores In Home Loans

New Post has been published on https://personalfinancialtips.com/trump-changing-use-of-credit-scores-in-home-loans/

Trump Changing Use Of Credit Scores In Home Loans

Are you having trouble getting a home loan because you have no suitable credit history? Has your credit activity been dormant for a long enough time that lenders can’t properly evaluate your risk?

The FICO credit-scoring standard used by Fannie Mae and Freddie Mac requires that potential borrowers have a credit account open for at least six months to be able to assess credit risk properly. Without that background, you are “credit invisible.” You may be responsible with money and pay rent, utilities, and cell phone bills on time – but those aren’t considered in evaluating mortgage loan applications.

According to data from the Consumer Financial Protection Bureau (CFPB), approximately 26 million people are considered to be credit invisible. Nearly 19 million people are similarly shut out of mortgages because they have “stale credit” – their credit history hasn’t had enough recent activity to give an accurate picture of creditworthiness according to the FICO system.

The Federal Housing Finance Agency (FHFA) has been considering a revamp of the scoring system used by Fannie and Freddie. FHFA has been evaluating a switch to the newest FICO scoring version (FICO 9), the latest version of the competing VantageScore system (VantageScore 3.0), or a combination of the two. (MoneyTips offers free VantageScore credit scores to members.) The FHFA was expected to decide and implement the changes sometime in 2018, but this deadline has been delayed until 2020.

That’s not soon enough for Congress and the Trump administration. President Trump signed legislation back in May intended to accelerate the process. It requires Fannie and Freddie to consider using new credit scores or recently updated ones in their decision-making process, bringing the currently credit invisible back into consideration for mortgages.

The intent is to help credit-invisible borrowers or those with stale credit secure mortgage loans if they meet enough of the remaining risk criteria. You still must give banks credible evidence that you are likely to repay the loan, such as having a suitably low debt-to-income (DTI) ratio.

Who would take issue with that? Critics have raised concerns that the legislation directs the FHFA toward the VantageScore model, which is jointly owned by the three primary credit bureaus (Experian, Equifax, and TransUnion). VantageScore allows a credit score to be calculated without requiring a full six months of credit data to analyze.

Theoretically, a change to allow VantageScore in Fannie and Freddie’s decision-making process could increase competition by challenging the dominant FICO scoring system. It could also backfire by giving the bureaus incentive to artificially cut prices for VantageScores, increase sales of credit reports to compensate, and potentially lower standards to increase business.

The whole argument revolves around standards – are they too tight, or just right? Backers of the bill assume that many creditworthy Americans are being shut out unfairly because of arbitrary rules. Critics take the slippery-slope argument, saying that the industry is allowing greater risk in an attempt to drum up more business. They believe we’ll eventually slide back into the situations that caused the housing crisis and triggered the Great Recession.

We’ll know more once the FHFA decides how to enact the new legislation and we see how mortgage lenders react. Until then, if you’re one of the credit-invisible masses, you may want to take initial steps to build your credit by opening one or two credit accounts, making small purchases on each, and paying the bills off in full every month. You can soon build a credit history to allow you to qualify for a mortgage – and you’ll be showing responsible credit practices regardless of FHFA actions.

You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

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mikebrackett · 7 years

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How Do I Calculate My Credit Score?

Credit is a mystery for many people. It’s often impossible to figure out exactly how your score came to be what it is. Part of this is probably intentional on the part of the credit bureaus – by keeping the formula secret, they can stay ahead of people who might try to game the credit system. Unfortunately, the side effect of this is that people have a hard time realizing what impacted their score.

Because the formula for calculating your credit scores is protected by the Fair Isaac Corporation (FICO®) with even more secrecy than KFC protects its 11 herbs and spices, it’s impossible for anyone outside of the credit bureaus – led by Experian, Equifax and TransUnion – to calculate your credit score. That being said, FICO is open about what factors affect your score and how much weight they’re given in the formula.

Before taking a deeper dive on select credit topics, let’s go over the types of things that affect your credit score.

Factors Affecting Credit Score

There are five major factors that affect your credit score. Let’s briefly take a look at each of them.

Payment History

This one is relatively simple. If you make your credit card and loan payments on time, this tends to help your credit score. If you have late payments, your credit score will be lower.

History and trends matter. A late payment will always lower your score, but if you have a history of on-time payments, it may not affect your score as much is it would for someone who is consistently late. On the other hand, it may take longer for someone who is typically late to build up their score with on-time payments.

Late payments, collections and charge-offs are lumped into this category. We’ll go over how to deal with these and how to properly calculate the age of these items later on in this post.

Payment history accounts for 35% of the credit scoring formula.

Credit Utilization

Representing 30% of the formula, your credit utilization refers to how much credit you’re using compared to your monthly limits. For example, if you have a credit card balance of $250 and your credit limit is $1,000, you’re utilizing 25% of your available credit.

Regardless of whether you pay off your full monthly balance, you shouldn’t utilize more than 30% of your credit in any given month. Doing so can lower your score.

Length of History

The credit bureaus also consider the length of your history, which makes up 15% of your score. This is measured from the time you open up a credit card or close on a car loan or mortgage.

The idea here is that the longer you have your accounts open, the more you can prove you’ve been responsible with credit. You don’t have to have four credit cards, plus a car and a student loan in order to get a mortgage, but a long history of responsibility doesn’t hurt.

Credit Inquiries

Credit inquiries make up 10% of your score. If you’re applying for a mortgage, it’s not a good idea to apply for three credit cards and a car loan at the same time. This is because credit companies want to know that you’re not overextending yourself with credit. For this reason, each hard inquiry made at the time of application will temporarily knock down your score a little bit.

The big exception to this is if you’re shopping for the best rate. If you get your credit pulled by multiple mortgage originators in order to get the best deal buying a house, all inquiries made within one 30-day period are considered one inquiry.

Credit Mix

Credit mix accounts for the final 10% of the credit score formula. For the creditors, this is all about knowing that you can handle various different types of credit, including both revolving accounts like credit cards and installment loans like a mortgage, student or personal loan.

Now that we know what goes into your credit score, let’s take a closer look at a couple of topics that might give you a better understanding of how your credit report and score work when you apply for a loan.

What Are Ranges of Credit Scores?

It’s hard to give a definitive answer to this question because it depends on where and how you get the score and what model is being used.

In general, most credit scoring models now score people from 300–850, with the higher number being the better.

FICO and Other Credit Scores

FICO has various versions of its scoring model that are used by the major credit bureaus to give lenders an idea of whether they’re making a good lending decision. The exact credit scoring model being used depends on the bureau and the lender, but FICO is usually the model being used.

This is an important distinction to make because most of the time when you get your credit report and score from sites like QLCredit, you get a VantageScore, which uses the same scale as FICO but was developed by the credit bureaus themselves.

There are some big advantages to the VantageScore system. Any time you view your credit report or get your score, it’s considered a soft pull, meaning you see your credit without affecting your score. You also get tips on how to improve your score in a way that you wouldn’t if you were just viewing your FICO report.

However, when it comes to the official version of your credit score, most lenders still use FICO. If you want to see your FICO score and report through AnnualCreditReport.com, you can get it for free from each of the bureaus once per year as mandated by federal law.

It’s important to note the information and score of each of the bureaus, especially before applying for a loan, because they may vary. One bureau may have information that another bureau doesn’t, or your score may be different because they use different FICO models. If you find anything wrong, you can then dispute that information with the individual bureaus.

If you’re applying for a car or mortgage loan or are worried you might have recently been the victim of identity theft, you might choose to pull all three reports at once. On the other hand, if you’re just doing some periodic monitoring, you might choose to get the report from a different bureau every four months so you can track your FICO score throughout the year.

How Do I Find Out My Credit Score?

There are various sites that will give you access to one or more credit reports and scores for free on a periodic basis. QLCredit will refresh your VantageScore 3.0 credit report and score based on TransUnion data every two weeks.

How Long Until My Credit Score Goes Up?

There’s no quick fix for credit, and it depends on what you’re doing to improve your credit. If you consistently have a good payment history and low balances, it’s likely your credit score will always remain high.

If it’s a matter of catching up with late payments and staying current, things will take a little longer, but the older the late payment is, the less it will impact your score.

Negative credit items like collections, charge-offs and bankruptcies can stay on your credit report for between seven and 10 years. When these items come off, it may have a big boosting effect on your score. That said, merely paying off a collection or charge-off doesn’t remove it from the report. You need to negotiate that with the creditor, although if you’re willing to pay the full amount off, many of them will work with you.

How Is Age of Credit Calculated?

When people refer to the age of credit, they usually mean how long it’s been since accounts have been open or since you closed on a particular loan. The longer you have lines of credit open, the better. This is important for creditors to evaluate because they see responsible management over an extended period of time.

When evaluating the length of your credit history, creditors are looking at the average amount of time you’ve had accounts open.

The other credit issue that has a timeframe component is the age of items on your credit report. Negative credit items such as late payments, unpaid liens, collections or bankruptcy can stay in your credit for between seven and 10 years. If it’s a court proceeding like a bankruptcy, this starts the day the bankruptcy judgment is filed. If it’s a late payment, it’s measured from the day you were first considered delinquent and never current again.

How Is My Credit Score Calculated for a Mortgage?

In most cases, lenders get your credit score from all three bureaus. There’s usually some variance in the scores based on the FICO model being used and the information the bureau has.

For a single borrower, lenders take a look at the median score of the three. If there are two or more clients on a loan, the mortgage lender has to go with the lowest median score of all borrowers on the loan.

In the event that only two scores are collected, the lower of the two scores is used.

Now that you know a bit more about how your score is calculated, check out these tips on how to build your credit. Do you want to see your report for free without affecting your score? Check out QLCredit today.

The post How Do I Calculate My Credit Score? appeared first on ZING Blog by Quicken Loans.

from Updates About Loans https://www.quickenloans.com/blog/calculate-credit-score

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kennethherrerablog · 5 years

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FICO Score vs. Credit Score: What’s the Difference?

What’s your credit score?

It’s important financial information to have. But did you know there are actually multiple answers and no single way of calculating a credit score?

A credit score is just a way of distilling your entire credit history into a number that, at a glance, allows lenders to determine the risk they’re taking on by granting you a loan.

The two most common ways of estimating it are the FICO Score and the VantageScore. In this article, we’ll detail the differences between the two, and how those variables could impact your pursuit of good credit.

What is a Credit Score?

The general term ‘credit score’ encompasses the many different models for calculating the three-digit number, ranging from 300 to 850, that defines your creditworthiness. If you have a good credit score, not only are you more likely to be approved for new credit accounts with higher credit limits, you can qualify for better interest rates.

Details of your debt — like your payment history, total debt load, unused credit and the different kinds of credit you’ve opened — are reported to the three major credit bureaus, TransUnion, Experian and Equifax.

When you apply for a new loan or credit card, the lender can query one of the bureaus to get a report on that data. Finally, that data is run through an algorithm to determine your score.

You should know, however, that the three bureaus gather and store your data differently, so your credit report from each bureau could be different, resulting in a different overall score.

The Credit Scoring Models

The FICO Score and VantageScore models are the most common provided to lenders and consumers, and it’s important to note that which one is checked depends on the financial institution making the query.

FICO Score

Typically ranging from 300 (very poor credit) to 850 (exceptional credit), the FICO model is the most well-known credit score and is used by over 90% of the top lenders in the country.

The FICO model was devised by the Fair Isaac Corporation, and in 1995 the two biggest secondary mortgage companies in the U.S., Fannie Mae and Freddie Mac, began to use the model to determine if loan applicants were a credit risk.

There are more than a dozen versions of the FICO score. FICO8, which was introduced in 2009, is the broadest and most widely used by lenders. The other versions differ slightly based on what they’re used for.

FICO Auto Score is specifically for auto loans, a FICO Bankcard Score is used on credit card applications, and there’s an updated version of the general purpose FICO score released in 2019, called FICO9, though most creditors are still using FICO8.

The FICO8 Score Ranges

350-579: Very Poor Credit

580-669: Fair Credit

670-739: Good Credit

740-799: Very Good Credit

800-850: Exceptional Credit

FICO closely guards how it calculates scores, but knowing the weight given to each component can help consumers improve their scores.

The Components of a FICO8 Score

Payment history (35%)

Amounts owed (30%)

Length of credit history (15%)

New credit (10%)

Credit mix (10%)

How to Get Your FICO Score

You have several options here. The first is to check your credit card statement, as some issuers (Bank of America, Discover and Citibank, for example) offer their customers their FICO Scores every month for free. You can also get a free FICO Score from Experian at freecreditscore.com.

Remember, though, that just because your Experian FICO Score says one thing doesn’t mean it will be the same at the other two bureaus.

VantageScore

This is the other major credit scoring model, created by the credit bureaus themselves in 2006 as an alternative to FICO. Like FICO, Vantage ranges from 300 (poor credit) to 850 (excellent credit) and (like FICO!) there are multiple versions. Right now, the standard is VantageScore 3.0, and it’s used by several lenders, including credit card issuers, across the country.

The biggest difference between the two is that with VantageScore, even if you have a very short credit history (as short as one month), you can get a score and have better access to credit. With FICO, you need six months of data to be visible to their algorithm.

There are also slight differences in the ranges of scores.

The VantageScore 3.0 Ranges

350-630: Poor Credit

630-690: Fair Credit

690-720: Good Credit

720-850: Excellent Credit

And, just like FICO8, weighted estimates signal how important certain factors are to calculating the VantageScore 3.0

The Components of VantageScore 3.0

Payment history (40%)

Depth of credit (21%)

Utilization (20%)

Balances (11%)

Recent credit (5%)

Available credit (3%)

As you can see, payment history is the most important factor in both models, so if there’s one thing you should prioritize it’s to be sure you make payments on time.

How to Get Your VantageScore

Just like FICO (are you beginning to see a trend?) there are several ways of going about this.

The first is through your financial institution. Many offer your score for free each month, including Chase Bank, Capital One or OneMain Financial (provided by TransUnion), and U.S. Bank (provided by Experian).

If you’d rather go the no-strings-attached route, a good option is Credit Sesame, a monitoring and financial management tool that offers your VantageScore 3.0 for free as provided by TransUnion.

While many people’s VantageScore and FICO scores are similar, that’s not always the case. In fact, they can vary by nearly a hundred points all because of the differences in the models.

But long as you keep up with at least one of the major scoring models, you should know roughly where you stand across the board.

Curtis Westman is a freelance writer whose strategy is to have multiple screens in his home reporting dozens of different versions of his credit score at all times…but who definitely doesn’t recommend it.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

FICO Score vs. Credit Score: What’s the Difference? published first on https://justinbetreviews.tumblr.com/

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