Credit Scores - Your Indispensable Asset
Credit Analysis And Your Credit Scores
Many people are oblivious to the many
advantages of having a good credit history, let alone
how the information that goes into their credit report is being
gathered, shared or even with whom.
Yet, it is important that you
check credit report files on you, if only to learn what up-to-date
information has been added to your personal credit report.
As we have already established, your personal credit score report
is usually determined by a number of factors. Each of these
factors involve obtaining credit information, the most important
of which being; the amount of credit card debt or other outstanding
credit you owe plus your payment history on each.
In addition to the information taken from your credit card
application, such as your salary, marital status, whether you're
a home owner or not etc., there are a number of other sources
from which credit score credit card information for your credit
card report is obtained by a credit reference agency -
such as Experian.
A credit report uk or a credit bureau report US for instance, will
include information taken from:
The Electoral roll (credit scoring uk)
court records - such as any county court judgments against you
Bankruptcy notices / foreclosures etc.,
Financial institutions - banks, building societies etc.,
Evidence of how you have conducted past credit transactions
Any unsavoury credit card credit information or credit debt that is
unearthed on you from any of the above sources (among others),
will be filed on your personal credit report. This adverse
credit information will lead to low credit scores and will affect
your credit history report score. This is irrespective of
whether it refers to credit scoring Uk or in the US.
It is worth bearing in mind that numerous national and international
credit card companies, banks and retail chain stores are in fact
registered with all the main credit reference agencies or credit
bureaus. These credit reporting agencies can, in law, document
any adverse credit information on individual borrowers' or on a
business' credit reports for up to six years.
Credit Card Acceptance Or Have
You Been Declined?
If you have made a credit card application and you have received
a credit card acceptance, well done! Your credit card score or
credit report would appear to be healthy, especially if you have
managed to secure a good credit card deal.
However, if you have applied for credit card credit and have received
a credit card decline letter, take heart - there is something you
can do. First, you'll need to remember that a credit card decline
by one credit card company does not automatically mean your
credit card report score is poor or that you will be unsuccessful
if you apply for credit cards elsewhere.
The second thing you will want to do is to check out the reasons
you might have been rejected by getting a copy of your credit report
so you can do a credit check. It could be due to one or several
factors such as:
There are errors on your credit report or credit reference files
You did not get a credit card acceptance on account of having a
low credit rating or low credit scor
You have an adverse credit history
You have an existing credit card with another lender that you
repay in full each month (see below)
Believe it or not, another credit card company may reject you just
because you always repay your credit cards in full each month.
Quite simply, they don't make money when you pay up.
Put it this way, who would be more profitable to a credit card
company - someone who religously makes the minimum payment each month
without defaulting? Or someone who clears their credit balance
in full each month? Credit card companies rely on you to make
In any case, you will only know what course of action to take to
improve your credit scores, once you understand some of the
factors credit agencies take into consideration, when working out
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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