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 money.

    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 your credit scores.

    The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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