Do You Have A Good Credit Score?
A good credit score is necessary to obtain loans, credit cards, insurance, employment and some other types of purchases. If you have a good credit score your interest rates on loans and credit cards is lower than with a poor credit score. Purchases such as a cell phone require a credit check and a poor credit score requires a hefty deposit on the cell phone plan. Employers may reject your application for poor credit, if you would work with undetermined amounts of money.
People never really think about all the things their credit score effect in their everyday life. Your credit history follows you everywhere you go throughout your life. If you never view your credit history, you will never know why your credit score is good or bad. It may contain certain things on your credit report that reflects badly against you, even if you believe you have excellent credit, without looking you will never know the entire reason.
Creditors and lenders may accidentally enter the wrong information for your payment history, they may enter your name incorrectly leading back to someone else with a different social security number, but this still sends up a red flag.
In any case, this may reflect badly on you, if the names of the person you are supposed to be married to has a poor credit history. Although you can correct this error, you need to view your credit report annually to assure these records contain the correct information. In some cases, you may have to go to great extents to prove the credit report faulty. An investigation by the credit agency will prove your case or disprove your case. If the information found, contains errors, they will correct the problem, usually within thirty days.
The good credit score is a top limit of eight hundred and fifty with a low of five hundred and fifty points. The average person usually has a credit score of six hundred and fifty. You can raise your credit score by checking for errors in your credit history and requesting the appropriate changes. Everything you find wrong on the credit report adds to your credit score.
If you have many little charge cards, try to pay off each one right away and watch your credit score rise. The more good credit you have the higher your credit score goes. If you adjust your credit score just fifty to hundred points, it helps when applying for loans and credit cards. The higher your good credit score, the lower your interest rate as well as your insurance rates.
Mistakes To Avoid In A Credit Repair
If you have bad credit and are trying to work at fixing it, you know that it can take a long time. It can be difficult and is often quite involved, and it is easy to make mistakes while trying to fix things up. If you are working to repair your credit, there are three huge mistakes that you will want to avoid if you want to be successful at repairing your credit.
Mistake #1. Hiring a Scam Artist
There are so many scams out there that are preying on people who are trying to repair their credit. Even though measures are being taken to try to stop these scams from happening, there always seem to be more coming back. There are a few things you can see to clue you in that it is a scam. If they ask for a lot of money up front or want to create a new credit report for you, you can be very sure that this is a scam. Often you can work at repairing your credit by yourself, but if you do need help there are legitimate firms that can help you fix your credit.
Mistake #2. Not Getting a Written Copy
Many people find places that give them great offers by phone, but it is much different later. It is important that any negations be done in writing. You will want to see everything that a credit card company is asking you for, and you do not want to rely on something that you heard. You want to have everything in writing, so you can refer to it and you can prove it as well.
Mistake #3. Statute of Limitations
Every state has a statute of limitations that gives creditors only a certain amount of time to sue you for a debt. Most states have a statute of limitations of between three and six years long. If you make a payment on one of your debts that is old, or if you even say that you do owe it to them you can reopen the statute of limitations. This will once again allow the creditor to seek legal action against you. If you are dealing with bad credit debts, then you will want to know what the statute of limitations are in your state.
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