credit report - What's Your Credit Score? Not Knowing Could Cost You

When you go online and apply for a credit card, how can you get your results in a matter of seconds? The answer is your credit score. This little number packs a big punch and can make the difference between getting approved for a car loan, a great rate on your mortgage, or getting turned down for everything credit related that you apply for in life. The credit score ranges from 300 to 800. Your specific score is result of a special formula, called an algorithm, which compares your credit information to the credit information of tens of millions of other people. The number that they get as a result is a very accurate prediction of how likely you are to pay your debts. This may seem unfair, but your credit score is based on a number of factors. They look at your payment history for every listing on your credit report, the total amount of outstanding debt you have, and the length of your credit history. They also check to see if you have had any derogatory credit information, such as bankruptcies, charge-offs, and collections. And finally, they calculate how much credit you have used in comparison to how much credit you have available. The Fair Credit Reporting Act has made it possible for you to get a free copy of your credit report every twelve months from all three major credit bureaus. Unfortunately, your credit score is not usually included in this free information. But for additional five or ten dollars, you can get your credit score included. Knowing your credit score can help you get a better picture of what the information on your credit report means. For example, a credit score of 720 or higher will get you the best rates on home loans. And a credit score of below 500 will cost you hundreds, perhaps thousands of dollars in high interest rates, if you can qualify for a loan at all. If your credit score is very low and you do not have any significant derogatory entries on your credit report, it's time to take a good look at that report and find any inaccuracies. Be sure that all the debt you have paid off shows up as a zero balance, and double-check your available lines of credit. Rebecca Spitzer recommends Find Credit Cards for finding a credit card with 0 APR. Article Source:http://EzineArticles.com/?expert=Rebecca_Spitzer credit report - Credit Repair Lead Credit repair leads can work for both the consumer and for the agencies. Agencies are always looking for more people with a need of credit repair for them to assist. There is normally a list of names available for credit repair companies to use to offer their services. And, on the flip side, credit repair leads can also be used by consumers looking for the credit repair agencies. If you are in a bad position financially, especially with your credit score, rating, and credit reports, you can check out one of the credit repair lead services and get a list of agencies ready to assist you. The focus of this article will be for the consumers. People from all walks of life run into credit trouble every now and then. And, it may not ever really rear its ugly head until you go to make that purchase. If you are looking for a house or new car, you will need to qualify. And in the process of qualifying, you will have you credit reports run. This is when the credit problems will appear. So, let's take care of it before it even gets that far. Credit Repair LeadsTo even determine if you need help with your credit, I would get a copy of your credit report from all three of the credit bureaus: TRW, Trans Union, and Equifax. This will allow you to review your reports and see if you need to go and look for credit repair leads. If you find anything odd, you may be able to fix it yourself. It may take a little time and effort, but it can be done. If you really do not feel like trying resolve this dispute yourself, then you can look for a credit repair company. These types of companies are normally pretty experienced in this line of work, and can help. But, be careful. There are some companies just looking to take your money. This is definitely one of the benefits of trying to handle this situation yourself. Once you go through your credit report, if there is a discrepancy, you will need to write a nice, professional letter to the appropriate credit bureau. Explain to the credit bureau what the dispute is about, what proof you have, and what you would like the outcome of this correspondence to be. This is exactly what the company you get through the credit repair leads will be doing for you, so why not just do it yourself? Keep a file of everything you send, and of everyone you talk to. This will help out down the road. If it really is an honest mistake, the credit bureau will correct the problem fairly quick, and make this change to your credit report. When you run your credit reports again, this change will now be updated. Whether to use a credit repair company or do it yourself is something you will need to decide upon. But one thing is for sure. With your clean credit report, you have accomplished 2 things: not needing a credit repair company and getting off of the list of credit repair leads.