Our credit score is very likely the most important number attached to our lives other than our Social Security number. It can determine whether we get a loan or receive other forms of credit, rd, but also if we secure the apartment we’d like to rent. There is even more tied up in our credit scores than we realize. Even our insurance or utility rates can be affected by our credit score, for better or for worse.
Additionally there are different models of credit score that are used by different creditors. The whole subject of credit histories, scores, and credit reports can be confusing and outright overwhelming for the average consumer. There is the FICO model to consider, and the more recently introduced Vanguard system. Both have quite different rating systems, yet both can dictate whether you receive credit or not.
Many consumers are unaware of what their credit score is, yet alone how it is calculated. The truth is; different models use different criteria to compute a credit score. It is possible you could have a good score with one version, a low score with another. It really can be quite confusing.
There is no longer a need for anyone not to understand the topic of credit scores however, as there is a new EBook available to consumers that takes the mystery out of the credit-related financial system. It is written in clear, easy-to-understand language, with credit and financial terms explained in layman’s language that everyone can comprehend.
Written and compiled by credit score specialist Ethel Wilson, Understanding Credit Scores takes readers through the differences between a credit report, credit history, and credit score, the different types of credit score models such as the Vanguard and FICO scores, and even goes into precise detail about how credit scores are calculated and what consumers can do to repair or increase their credit score.
“This EBook is written for the average consumer,” says Ms. Wilson. “Our goal in publishing it is to help every individual to understand their credit score, how much it affects their life, a better rate on loans and credit cards, and have much better overall financial health.”
Edit: The original post indicated that a better credit score can help you improve your chances of getting a job. This is incorrect and we apologize for the error. The fact is that employers use credit reports and not credit scores to filter applicants for certain roles. The two (credit scores and credit reports) are not the same and this is further explained in the PDF booklet we’ve created.
t has become more common for businesses to ask for a credit report before approving an application. Not only for credit cards and loans, but businesses that rent apartments and cars as well as insurance companies require credit reports with applications. You may wonder if you have a right to that credit report, especially if […]
ometimes it can be difficult to manage your financial responsibilities. You feel overwhelmed and end up trying to forget about the bills you have to pay and the accounts you should reconcile. To simplify your finances and protect your credit score, you should consider doing one or all of the following. Reduce the Number of […]
lenty of people have credit cards. They often use them to make purchases or even to pay bills in between paychecks. However, many people do not really appreciate their credit cards and what they can do. Earn Rewards One of the best reasons to have and use a credit card is because of the rewards […]
f you have been in a debt a long time or have a long-term loan, it can be easy to pretend it doesn’t exist. Even if you make the minimum monthly payments, you may assume you will always be in debt and not even try to become debt-free. Here are a few reasons why you […]
rowse around on the internet and you will find several credit monitoring services. Some of them are free, like Credit Karma and Credit Sesame. Others, such as myFico.com require you to pay a monthly fee for their services. With so many options available, you may wonder if any of them are any good and how […]
ou often hear only of complaints about credit scores, especially of those with low credit scores. It is often seen as a negative part of getting a loan or credit. Many people don’t understand credit scores and hear conflicting information about them. For many people, they have a bad view of scores and credit ratings. […]
lso called inquiries, when someone does a credit check, it can impact your credit score. While it isn’t usually a cause for concern since the change is slight, it can make a difference if you are just a few points away from qualifying for a loan. It may help to understand how inquiries work and […]