Credit Score Report

Credit score reports can be obtained from the three major credit reporting bureaus that provide official scores from FICO. The Fair Isaac Company (FICO) historically devised a way to determine what a consumer's payment history is within a system that uses ratings based on numbers. Anyone's credit score report is based on a 3-digit number that provides financial institutions with a rating score determined by FICO as to what a consumer's payment history shows. It's important for consumers to track their scores in order to insure that accurate information is being gathered that could directly affect their credit.

When financial institutions request reports on consumers, over 70% of them use FICO's established rating system to help them make a lending determination. Not only can having a poor credit score report hurt a consumer in receiving a loan, but it can also determine what type of rates and loans a consumer qualifies for. A good score can end up saving consumers money by securing lower interest rates and better loan terms. Credit score reports not only affect mortgage rates and terms, but they also influence car loans and how much a consumer will pay for insurance.

There seems to be no end to the degree that a poor score can affect lives of consumers. They can even be the influencing factor on whether or not a consumer gets a certain loan. It is a serious matter to keep watch on credit score reports. It is suggested that consumers obtain at least one report a year from all three reporting agencies in order to compare and correct any questionable information. It may be a good idea to do this before submitting any major loan applications or activating job searches in order to circumvent any unforeseen problems. If there is any a problem on a report, consumers can write a letter to the agencies with any corrections that are needed.

It is advised to send the correction letter registered mail with return receipt requested to make sure that it is received. Not only should consumers keep a watchful eye on what is being reported but they should also be careful to do the small things that maintain a good credit score report. It is wise to pay attention to such things as paying bills on time, maintaining a zero balance on accounts and not running credit up to the maximum limit. For more information regarding credit score reports, check with several online sources. "A false balance is abomination to the Lord: but a just weight is his delight." (Proverbs 13:1)

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