Frequently Asked Questions
The world of credit reports and credit scores can be confusing for everyday consumers. But the information contained in your credit report and your individual credit score can play a major role in your financial life. It's important to understand the system as best as possible so you're protected. Here are some answers to some of the most commonly asked questions about credit reports and credit scores.
What is a credit score?
Your credit score, also sometimes called a FICO score, is a three-digit number ranging from 300 to 850 that rates your credit worthiness. The higher the number, the greater chance that you will receive permission to take out a loan or a credit card. Consumers with higher credit scores, such as those over 700, are also more likely to receive preferable interest rates and programs. Conversely, the lower your score, the more difficult it will be for you to receive a loan or credit. Banks and other creditors use this system to assess how likely you will repay your debts. Dozens of factors, from how often you pay your bills on time to the percentage of your annual income you currently owe in loans/credit card debt, can affect your credit score.
How can my credit score affect me?
Your credit score will affect nearly every large purchase in your life. If you want to buy a home, the mortgage rate you pay will be directly linked to your credit history. Consumers who manage their debt effectively and pay their bills on time will enjoy great benefits from their wise behavior when they are approved for loans with lower interest rates. But credit scores will affect you beyond mortgages and car loans; believe it or not, your auto insurance rates are tied to your credit score. Consumers who have low credit scores are also believed to be high insurance risks. As a result, they pay more in auto insurance premiums than their high-credit score neighbors. These are the reasons why it's extremely important to maintain wise spending habits and monitor your credit report, an error on the report could affect your score and your ability to receive loans in the future.
What do I do if I spot an error in my credit report?
Depending on your personal situation, there are a variety of things you can do to fix your credit report. But if you need immediate credit rating help, a service such as HelpCreditRating.com might be the best solution. If you are in the process of applying for a loan or a mortgage, an error in your credit report could cost you money in higher interest rates or even worse, result in your application's denial. A third-party credit repair service works on your behalf to get errors removed from your credit report and your credit score returned to its intended level. Individuals can contact the credit bureaus and creditors independently, but the process can take time and effort. It's up to you whether you need a third-party to intervene on your behalf.
What is HelpCreditRating.com?
HelpCreditRating.com is a third-party service that works with consumers and credit bureaus/creditors to repair errors in credit reports. Through this service, consumers can have an expert credit manager work on their credit repair. The credit-reporting world can be confusing for consumers, which is why so many people turn to credit repair agencies for help. Consumers who work on their credit repair independently inevitably run into red tape; credit-repair agencies have established relationships with the credit bureaus and work on your behalf in an efficient manner.