Article Advise

submitted: Aug 22nd 2008 | by: JimBransby | Total views: 1 | Word Count: 484 | |

Nothing is a more important part of your personal finances than your credit score. Lenders will use it to decide if they will give you a loan and at what interest rate. It can literally be the difference between getting a nice home and being turned down for a loan. Even with how important they are, many people donat understand how credit scores work and what factors make them fluctuate up and down.

A smart individual works as hard as he can to ensure that heas got a good credit rating. But you may wonder, is my credit controlled by anyone other than me? Unfortunately, it can be. But donat worry, because there are steps you can take to erase othersa black marks from your credit score.

Out of all the information credit bureaus keep, they come up with a single three-digit number to represent your credit standing. This is known as a credit score. The FICO score is most commonly reported and used because it is the average of the score created for you by the tree major credit bureaus. Going to a site like myfico service will retrieve your FICO score for you.

Credit scores are never static. They are always evolving as your account and credit information changes. Your net amount of debt, as well as the types of debts youare carrying and your history of past credit payments, play a significant role in your score. The longevity of your credit also is important.

The factor with the most sway on your credit rating is your payment history. So if a company reports erroneously that you are not reliable about paying your bills on time, your credit score will be devastated. You may not think this would be a common occurrence, but it actually is. And once the wrong information has been reported to the credit bureaus, it can be a long and difficult process to get it corrected.

Anyone whoas had a problem like this can attest to the fact that an incorrect report from their employeras or utility provideras accounting department can cause them years of headaches. They have to play phone tag with companies, debt collectors, and credit bureaus. But the law is on your side, and usually these issues ultimately are worked out to the satisfaction of the customer.

Check your credit report. If your score is a lot lower than you expected, you should check if a credit bureau has incorrect information about your financial profile. Youall usually already know if they problem is misinformation about payments, but the incorrect information could be coming from other sources and causing your score to be low.

So to answer the question of whether others can negatively impact your credit score, the answer is mixed. They can by making a mistake, but if you are vigilant and take the time and effort to correct those mistakes you can get your credit back to its rightful place.

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To find out exactly how you can get your annual credit report visit my credit report website.

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