When Credit Scores Rule
I think it’s about time that we should watch closely on the credit score system, as we should have done before. Credit scores aren’t new stuff. When Fair Isaacs & Co delivered to the public the FICO system in 1970, it wasn’t universally used until 1980 where it began to make an impact to how a credit should be awarded on an individual. Though the algorithm that computes the Credit Score is a proprietary trade secret of Fair Isaac, the FICO score did make a tremendous impact on the world of banking and economics. Before, investors and bankers watch individuals as walking assets, now they refer individuals as three digit credit scores.
When did we allow this to happen? Being judged by a credit score is tad bit unfair, don’t you think? After all, the policies of maintaining a good credit score are quite bothersome. In case you don’t know, having a credit account on the limit can considerably damage your credit scores. So we question the use of having a credit limit in the first place. Financial analyst says that maintaining a strict 35% on a credit account can help your credit score. In short, you can buy a 1000 square meter lot and use only 350 square meters or building 100ft of storage to use a 35ft room. Wasted lot, wasted space.
Credit scores are now being referred creatively more than you could think. So much for the time when all you have to do to lodge on an apartment is sign through a couple of documents. Now landlords can put you under unsympathetic scrutiny by the means of your credit score, thus predicting how often you will show up with your monthly rent.
The apartments I can take, but what about job hunting? What made employers nowadays ride with the bandwagon of credit scores? Education and work experience plus history is non factor for your credentials, instead it is credit scores.
When someone applies for a loan, it’s been a long tradition to check credit history. That’s how credit scores evolve, particularly the FICO score. But when we’re talking of secured loans other things go first priority. One such is the collateral. One problem though, even if you apply with a collateral, it’s your FICO score that will still dictate your interest rate. So a poor credit score will surely hurt you in many ways.
One funny thing though, and it is a case of consideration. Credit scores are provided when you apply for them. But the actual computation remains hidden. And except if have a flair for numbers; you can spot right away the errors. Identity theft operates in this weakness. In fact, cases of identity theft have risen significantly nowadays. And in an attempt to contain these thefts, the very people that provide the credit scores offer protection for the said number.
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Summary: Credit scores and reports became accessible for a reason. It is to give you the option to habitually check your report. Credit scores and reports became accessible for a reason. It is to give consumers the option to habitually check their reports. So not checking your credit reports from time to time is like building a house without windows; you’ll never know what’s going on outside. A co…
Summary: Credit scores and reports became accessible for a reason. It is to give you the option to habitually check your report. Credit scores and reports became accessible for a reason. It is to give consumers the option to habitually check their reports. So not checking your credit reports from time to time is like building a house without windows; you’ll never know what’s going on outside. A co…
Borrowers today have it easy. With credit report scores, they can get loan approvals much faster than they used to. Lenders use credit report scores to determine how likely you are going to pay your bills on time. The higher you credit report scores, the better chance you’ll have to get approved for a loan. Moreover, high credit report scores often mean better loan rates (e.g., lower interest). So…
Borrowers today have it easy. With credit report scores, they can get loan approvals much faster than they used to. Lenders use credit report scores to determine how likely you are going to pay your bills on time. The higher you credit report scores, the better chance you’ll have to get approved for a loan. Moreover, high credit report scores often mean better loan rates (e.g., lower interest). So…
Summary: Suppose that being a financial control freak makes you a model borrower on the eyes of creditors? Check your credit score or read on. Suppose that being a financial control freak makes you a model borrower on the eyes of creditors? The answer is certainly no. I bet you’re surprised. I was. If you don’t believe me, check your credit score. See how it increases your credit score average whe…
In the United States, more credit scores means higher opportunities. You are considered lucky if you obtain and maintain high credit scores compared to those who have incurred no credits at all. It is a popular belief that having high credit scores denotes to being fully responsible with handling your finances. Moreover, good credit scores also equates to keeping up your integrity. To sum it all, …
In the United States, more credit scores means higher opportunities. You are considered lucky if you obtain and maintain high credit scores compared to those who have incurred no credits at all. It is a popular belief that having high credit scores denotes to being fully responsible with handling your finances. Moreover, good credit scores also equates to keeping up your integrity. To sum it all, …
SCENARIO #1: You went online and applied for a loan. Sixty seconds later, you realize you’ve been approved. SCENARIO #2: You applied for a car loan and got pre-qualified. SCENARIO #3: You and your neighbor applied for the same loan, but his loan rates are different from yours. And all this without anyone even asking you how much money you make. How in the world did they know whether to approve you…
Also known as credit rating in the United States, credit scores represent an approximation of an individual’s pecuniary appraisal value. Attempting to quantify the comparison of the failure to pay the bills or other obligations satisfactorily met, it is simply based on a person’s report. Credit scores are determined by financing institutions in the information found in the data accomplished by eit…
Imagine yourself applying for a car loan, you have the money and you have the right job to pay the loan back before the due date. However, even if you have the right job and the money for it, you still haven’t been approved for the loan. This will make you wonder why. In the United States, having money and having a high salary isn’t everything. You have to consider one important thing that will ha…
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