Your Credit Score

Credit scores: all lenders use credit scores to determine interest rates and credit limits.

The credit scoring system was developed in the early 1950's. However, it was not widely utilized until the early 1980's, when it was overhauled by Fair, Isaac & Company. At that time the 3 major credit reporting bureaus, Equifax, Experian and Trans Union, worked with FICO to create three separate credit models, one for each bureau.These agencies still use their own criteria to rate credit holders but the numbers have been normalized so that a score of 650 at Bureau A is equal to a score of 650 at Bureau B, etc.

Simply put, a credit score is a mathematical equation calculated by the review of a potential applicants credit history. It is based on factors such as income, instances of late or missed payments, types of debt owed, number of credit inquiries on file and the percentage of available credit that is actually being used.

Credit scores generally range between 300 and 800. The average credit score lies somewhere between the 600 and 700 range. As a rule, in order to receive a standard, lower cost loan a score of 620 or above is required. A high score indicates a low credit risk, meaning those with high scores find it very easy to obtain credit.

It is important that credit issuing companies indicate a credit holder's limit on their credit report. Failure to do so will usually result in a lower credit score. This is due to the fact that most scoring models plug in the highest balance from another listed account, when a credit limit is missing. This is an action which causes it to look as though a greater percentage of an individuals total available credit is actually being used. To avoid this type of situation, deal only with lenders who include this specific piece of information in their bureau reports.

There is a law which requires each of the three major credit bureaus to provide you with a no-cost credit report, once a year, should you request it. There is no such law pertaining to credit scores. Credit bureaus are allowed to charge consumers a "fair and reasonable" fee, for them.

There is an exception to the law above. Consumers are eligible for a no-cost credit score when applying for any type of home loan. As long as the mortgage lender uses a credit score when making an approval determination, he or she must supply that information to each applicant who requests it.

The questions you should be asking.

1: How do I order my free report?

2: What information do I have to provide to get my free report?

3: Are there other situations where I might be eligible for a free report?

4: What is a credit score, and how does it affect my ability to get credit?

For the answers to these and many more questions visit www.usacreditinfo.com

Cornelius P Crumpacker
http://www.usacreditinfo.com

Editorial: Failing to extend solar tax credit will hurt nation
San Jose Mercury News,  USA - 14 hours ago
But both solar power companies have made it clear they cannot move forward with their projects unless Congress extends the investment tax credit for solar ...

1 in 4 college students graduate with $5000 in credit card debt
Bizjournals.com, NC - 3 hours ago
About one out of every four college students leave school with upwards of $5000 of credit card debt, according to a survey released Wednesday. ...

CreditCards.com: Weekly Credit Card Rate Report
MarketWatch - 3 hours ago
AUSTIN, Texas, Aug 21, 2008 (BUSINESS WIRE) -- Annual percentage rates for new credit card offers were mostly steady this week, according to the ...
Avoiding College's Plastic Hangover Wall Street Journal
all 8 news articles

Los Gatos police arrest four in credit card fraud case
San Jose Mercury News,  USA - 1 hour ago
One adult and three teenagers have been arrested on suspicion of burglary and fraudulent use of a credit card, police said. Los Gatos/Monte Sereno police ...

First-Time Homebuyer Tax Credit a Boost for Homebuyers
MarketWatch - 7 hours ago
SPRINGFIELD, Ill., Aug 21, 2008 /PRNewswire via COMTEX/ -- A one-time tax credit for first-time homebuyers is part of a new federal housing stimulus law ...

Mythic VP Brushes Off ‘Warhammer’ Credit Complaints, Wants To Talk ...
MTV.com - 2 hours ago
Brushing off complaints from an anonymous developer who complained about a lack of credit for working on “Warhammer Online,” the game’s lead designer wants ...

Credit Solutions Makes Inc. 5000 List of Fastest-Growing Private ...
MarketWatch - 7 hours ago
RICHARDSON, Texas, Aug 21, 2008 (BUSINESS WIRE) -- Credit Solutions has been named to Inc. Magazine's 2008 list of the 5000 fastest-growing privately held, ...

Banks' direct borrowing eases but still hefty -Fed
Reuters - 2 hours ago
Primary credit borrowings averaged $17.51 billion per day in the latest week, down from a record $17.70 billion per day the previous week. ...
Total Discount Window Borrowings Wed $18.56 Bln FXstreet.com The Foreign Exchange Market
Banks borrow less from Fed's emergency loan window International Herald Tribune
all 73 news articles

Boston Globe
US STOCKS-Credit fears, soaring oil push market lower
Reuters - 5 hours ago
By Steven C. Johnson NEW YORK, Aug 21 (Reuters) - US stocks fell on Thursday on fears of more credit losses on Wall Street while soaring oil prices ...
US STOCKS-Wall St flat; HP gains offset by oil, credit woes Reuters UK
US STOCKS-Wall St opens lower on credit woes, oil Reuters
Banks may keep credit tight even in GSE bailout Reuters
Reuters - Reutersall 1,038 news articles

US STOCKS-Energy lifts Dow, S&P but credit worries remain
Reuters - 2 hours ago
... prices drove up energy shares, though fresh fears of more credit losses on Wall Street kept gains modest and pushed the Nasdaq into negative territory. ...

Wind Chimes and more...

Windchimes for great gifts!

How To Repair Your Credit Report