According to the credit experts, only 40% of the population has really good credit. That would be someone with a score over 700 in all 3 major reporting bureaus. This Prime Credit standing is a perfect place to be for a couple of major reasons. Minor incidents like inquiries and single late payments will probably not drop your score.
If you?re one of the 60% of consumers who have a credit score of less than 700 from the three major bureaus, then lenders will look at you as an increased risk and will set interest rates accordingly. With a score under 700, it's also a lot harder to predict what will affect your credit score and whether there will be a positive or a negative impact. When you apply for a loan, you may find your credit score suffering even if you are approved!
The whole idea of the credit bureaus is to make it extremely difficult to score over 700. Why? Because this means more money for lenders who can then charge higher interest rates. If your score is under 700, then you need to get your score over this magic number quickly using a system which works for you, instead of for all of those businesses who are getting more of your money than they're really entitled to.
One thing you can do to keep your credit score up is to never incur more than 25% of your annual net income in debt. You can talk to your accountant or simply look over your tax returns to find this number. Whenever you use credit to make a purchase, make sure that you really need it and that this won't cause your debt to go over this 25% limit.
The credit reporting system is deeply flawed, since everyone but the consumer benefits from the system. Consumers have long lobbied for change and with the 2004 Fair Credit Reporting Act, some reforms were made; but unfortunately it did nothing to require the credit reporting bureaus to maintain accurate information and of course, many question how strictly the stipulations of this act are enforced if indeed they are at all.
Let's suppose that your credit score is 600. You apply for a loan and whether your application is denied or accepted, you'll lose 35 points off of your credit score! If your score was 700 or above, this wouldn't be the case. You can avoid all of these roadblocks by using a fast score system to get your score over 700.
You should approach credit repair services with caution; they can get some of the negative items off of your report, it's true ? but this can actually affect your credit score negatively! If you have less than perfect credit, it's better to add accounts which are in good standing to offset the negative items on your report. You should aim to increase your credit score rather than simply trying to make your credit report look cleaner. A fast score system of some sort is the slick way to get this done quick.
If you?re one of the 60% of consumers who have a credit score of less than 700 from the three major bureaus, then lenders will look at you as an increased risk and will set interest rates accordingly. With a score under 700, it's also a lot harder to predict what will affect your credit score and whether there will be a positive or a negative impact. When you apply for a loan, you may find your credit score suffering even if you are approved!
The whole idea of the credit bureaus is to make it extremely difficult to score over 700. Why? Because this means more money for lenders who can then charge higher interest rates. If your score is under 700, then you need to get your score over this magic number quickly using a system which works for you, instead of for all of those businesses who are getting more of your money than they're really entitled to.
One thing you can do to keep your credit score up is to never incur more than 25% of your annual net income in debt. You can talk to your accountant or simply look over your tax returns to find this number. Whenever you use credit to make a purchase, make sure that you really need it and that this won't cause your debt to go over this 25% limit.
The credit reporting system is deeply flawed, since everyone but the consumer benefits from the system. Consumers have long lobbied for change and with the 2004 Fair Credit Reporting Act, some reforms were made; but unfortunately it did nothing to require the credit reporting bureaus to maintain accurate information and of course, many question how strictly the stipulations of this act are enforced if indeed they are at all.
Let's suppose that your credit score is 600. You apply for a loan and whether your application is denied or accepted, you'll lose 35 points off of your credit score! If your score was 700 or above, this wouldn't be the case. You can avoid all of these roadblocks by using a fast score system to get your score over 700.
You should approach credit repair services with caution; they can get some of the negative items off of your report, it's true ? but this can actually affect your credit score negatively! If you have less than perfect credit, it's better to add accounts which are in good standing to offset the negative items on your report. You should aim to increase your credit score rather than simply trying to make your credit report look cleaner. A fast score system of some sort is the slick way to get this done quick.
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