Increase Credit Score & Get Higher Credit Scores Rating
Your credit scores rating is an evaluation lenders use in order to qualify you for a loan. If you need an auto loan or a home mortgage, the process is similiar, excet with a mortgage the lender wants to make sure the value and equity are enough for the risk of default to be in their best interests.
There are three types of numbers used to evaluate the credit scores rating. These are also referred to as FICO scores or credit report scores. Credit reporting bureau’s keep records on the financial lives of consumers. These credit scores are maintained by the three major credit bureau’s, Equifax, Experian and Transunion. Each of these companies uses software to determine risk, which is essentially what your credit score is all about.
If shopping for a loan, what is a good FICO score? Most lenders agree that good credit is represented by credit scores above 700. On a possible range from 350 to 850 many lenders will automatically qualify individuals with a 700 plus credit rating. These applicants will also receive the best rates.
Poor credit is usually referred to by a number below 500. These applicants will usually not qualify for the best interest rates and will pay substantially higher monthly payments as represented by higher interest rates. Over the life of a lloan or mortgage, the higher interest will often translate to thousands of dollars per year, adding up to more than a year’s salary.
Lenders will normally take the middle credit score when evaluating a loan. Since each credit reporting agency uses different software they scores will be different. The other reason your credit score is not the same is because credit bureau’s do not always get the same information reported to them.
It pays to do everything possible to increase credit scores. This is done by a careful examination of each credit report. Looking for reporting errors, marking them and writing a credible dispute letter is necessary to qualify for deletion. Since the credit bureau’s are regulated by the Fair Credit Reporting Act, they must adhere to the standards outlined in that law.
One important regulation requires credit reporting agencies to verify within thirty days, the validity of any dispute received. Such verification will usually require credit agencies to contact the original lender. If, within the alloted time, they fail to verify the dispute, they are required by law to delete the account form the credit report.
Credit dispute letters should be send certified mail with a return receipt. This will insure that a date is established for the beginning of the thirty day vefification period. A common ploy used by credit repair services is to file several dispute letters at once with the intention of overwhelming the bureau. Such an increased workload often makes mistakes possible and the chances of completing the verification work in a timely manner is an advantage to the consumer.
Online credit repair software has become popular as a means of increasing credit scores. the ability to see credit reports online in an easy to understand format also allows consumers to take control of their credit files.
Do you understand how to determine your credit scores rating? Are you looking for lower interest loans. Why pay an outside company when you can clean up your own credit? With online software, like AVAIL, whic has just become available to consumers, you do not need a credit repair service to write a series of dispute letters for you. In fact, AVAIL writes a dispute letter automatically. All you do is print and sign. Don’t be misled that credit repair is a huge mystery because it isn’t. For a very small fee, you can be online in a secure server. You will be able to see what lenders see and you will be able to make fast and important decisions about your credit reports.
Article from articlesbase.com
