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Credit Score Questions And Answers

Know Your Fico Score
In the United States, a credit score is a number, based on a statistical analysis of a person's credit files, to represent the creditworthiness of a person, the likelihood that the person will pay their bills. A credit score is primarily based on credit report information, typically from the three major credit reporting agencies.

35% punctuality of payment in the past (only includes payments later than 30 days past due)
30% the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% length of credit history
10% types of credit used
10% recent search for credit and/or amount of credit obtained recently

A FICO score generally ranges from 300 to 850.
A new Vantage score has been offered by all three credit bureaus to creditors since spring 2006, 2007.
Its range is from 501 to 990
Get your credit report. Note the credit worthy chart to match rates according to your Fico Score

FICO Score		Vantage Score
Excellent	850 - 800	A	(901-990)
Good	799 - 700	A	(901-990)
Fair	699 - 600	B	(801-900)
Poor	Below 600	C	(701-800)
Bad	500 -300	D	(601-700)

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate loss to bad debt. Lenders use credit scores to determine who qualifies for a loan, for what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

Will your credit score be affected by obtaining a loan thru online lending networks?

Lending firms have consulted with credit reporting agencies on an individual basis for some time now. However with the recent surge of online lenders pre-approving loans electronically many loan seekers have rightfully been concerned about how this might affect their report and ability to shop for a better loan offer.

Shopping for a loan is crucial to obtaining a loan program at a rate one can live with. For many, shopping online for the better rate and having lenders and brokers compete for your business is not an option in today's busy and highly competitive financially structured society.

How Can I Protect My Credit?

There are steps one can take both to protect their credit and correct errors. Consumer rights and advocacy groups offer information on fair credit reporting, abuses in the reporting industry, and more. These institutions have been put in place to work with consumers to reduce and eliminate credit report abuse by lending companies.

What Is Being Done To Protect Credit When Loan Shopping?

Some scoring models are being adjusted to count multiple inquiries within a short period of time as a single credit check. Still, numerous credit checks over a short period of time can have a negative effect on credit scores if a loan is not obtained shortly there-after.

What More Can I Do To Maintain To My Credit Score?

Recent changes in the law allow for a fixed window in which you can have your credit checked a number of times and your credit maintain its standing as long as you get a loan within that time frame. While this is a new law it is always best to proceed cautiously whenever doing anything that may affect your credit.

What Laws Protect Consumer Credit?

The law of consumer credit is primarily embodied in federal and state statutory laws. These laws exist both to protect consumers and enforce specific guidelines for the credit industry. In addition States have passed a number of statutes regulating consumer credit. The Uniform Consumer Credit Code is one of these. Among it objectives is to protect consumers obtaining credit to finance their transactions, ensure that adequate credit is provided, and govern the
credit reporting industry.

What Agencies Address Consumer Credit Fraud?

The Consumer Protection Act passed by Congress regulates the consumer credit industry. Creditors are required to disclose credit terms to consumers. Federal consumers protection agencies protect the public from loan sharks, implements restrictions in garnishing of wages and investigates fraudulent practices in the consumer credit finance industry.

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Low Rates Home Loans and Your Money
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