Are you wondering about the sudden change in your loan s interests? Ponder no more for this may have been caused by a poor credit score. A score ranging from 300 500 will not just mean loan denials but soaring high loan interests for you as well. This is a commonly experienced by more than a lot of Americans these days, not just because of the present downfall of the economy but because of their neglect in their annual credit reports.
Although credit reports are given freely annually, it is still an advantage to get a copy more than once a year to be able to monitor the said score not just for loans but for possible cases of identity theft. The reason for a sudden change in one s score card can be due to inaccurate data entered by fraudulent people who cunningly steals other people s identity to be able to access to other people s loans and credit cards. As a result, victims suffer a great deal. They are not only faced with an unacceptable score card but possible legal cases too.
Another possible reason on having a loan denial is the fact that some consumers are unaware of how the 3 major credit bureaus determine their credit scores. Consumers should be reminded about the staple determiners. FICO score is calculated by a consumers payment history (35 ), length of credit history (15 ), amounts owed (30 ), types of credit cards used (10 ) and new credits (10 ). A FICO score also has a score range of 300 (lowest possible score) and 850 (highest possible score). It also has a median of 700 (considered to be a good score).
On the other hand, ones Vantage score (a scoring method developed by the 3 major credit companies and was launched just march 2006) is determined by payment history of a consumer, the depth of his credit, his recent credit, his available credit, balances and utilization. Vantage is often liked and popular to consumers since it returns scores ranging from 501 (lowest possible score) and 990 (highest possible score). Clearly, Vantage is more consumer friendly since it can give a better chance to better scores. A much needed option these times of crisis.
A sure credit score booster is also to be aware on the limits of one s credit card. Maxing out every credit card you have in your wallet most probably not help you get the kind of score you want or need. Your payment history also is important with the way credit companies see you as a potential loan grantee. Always be sure to pay on time if you want to get good loans with low interests in the near future. Delayed payments (remember that a 30 day delayed payment is still acceptable to credit companies but a 90 day delayed payment means a topnotch to the hierarchy of madness) also delays the process of your loans.
Remember that a low score does mean the end of your finances. There are ways to improve what might seem like doomsday to your financial world.
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This article has been provided by http://www.free-credit-reports.com , where you can compare credit report and identity theft protection services with this comprehensive chart of all credit report and credit score service providers.
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