My Credit Stinks!! What can I do?

I am a firm believer in credit management. The way that we are able to manage out credit will have a direct impact on the overall quality of the lives we lead. Credit can affect getting a job, mortgage, car, or the ring that you need to propose. This is why I am excited to announce that Michelle Luker of Capital Credit Source a “Certified Credit Expert” has agreed to do a series on Credit. So as part one to the series we have decided to do a brief introductory post:

“Understanding Credit and What it Means”

When you apply for Credit, lenders look at your FICO scores. FICO scores help lenders determine risk, and can have an effect on your ability to borrow as well as the rates or fees that you will pay. There are three credit bureaus: Experian, Transunion, and Equifax. Each of the credit bureaus calculate their own FICO score.

The FICO score gives lenders a prediction of the likeliness that an individual will pay 90 days late in the next two years. A high credit score would tell lenders it is less likely that you will pay 90 days late in the next two years. The lower the score the greater the chance.

For your FICO scores to be calculated you must have at least one account reporting that has been open for the last six months. There also must be one account that has been updated in the last six months. As your credit changes so will your credit score.

The credit bureaus take a snapshot of your credit profile at the moment that your credit is pulled. The scores are then determined by the data that is reporting at that given moment in time. Items that you have paid on that have not reported yet will not reflect in the score that you have received. You must also keep in mind that not all creditors report to all three bureaus. The information in the report for each bureau may vary slightly and in some cases can be dramatically different. If one bureau reports a collection and others did not that bureau can be significantly less.

As this is just the start of the series on Credit I encourage you to stay tuned. We will go in depth on the different measures of credit and how each piece of the pie can be monitored and maintained.

As Always thank you for reading.

Michelle Luker can be reached at www.capitalcreditsource.com or by email at info@capitalcreditsource.com