WHOGETSTHECREDIT? You Should Know Everything About Your Personal Credit File
Poor Fair Good Very Good Excellent What Is Personal Credit? Personal credit is what you build when you pay your bills on time; mortgages, car loans, credit cards, etc. When you do this it increases your trustworthiness and your credit standing. Personal Credit Score Ranges: Personal credit scores ranges from 300 to 850. These scores are broken into categories; poor, fair, good, very good and excellent.
Where To Get A Copy of Your Credit Report? Equifax – www.equifax.com or 888-378-4329 Experian – www.experian.com or 888-397-3742 TransUnion – www.transunion.com or 800-916-8800 myFICO – www.myfico.com Credit Check Total – www.creditchecktotal.com Annual Credit Report – www.annualcreditreport.com – you are entitled to a free copy of your credit report from the three credit reporting agencies once a year. There is a fee to get a copy of the credit score from each credit reporting agency. You can also obtain you credit report and score from the following three credit reporting agencies: Other websites where you can obtain your report and scores are:
There are several scoring models used by the credit reporting agencies to calculate your credit score. However, the main two (2) models used to calculate your scores are FICO and Vantage Score. To date, most lenders (mortgage, auto, etc.) uses the FICO model to see your score and to determine approval for credit. Therefore, when checking your personal credit score the FICO score will mostly likely be more reliable to use when applying for credit with a lender. Personal Credit Report Scoring Models: Payment History (on-time payments) – makes up 35% of your score Scores are calculated using different credit information in your credit report. The information used is grouped into five (5) different categories: 1. 2.Amounts Owed or Credit Utilization (keep credit card balances at 30% are less of credit limit) – makes up 30% of your score How Are Your Credit Scores Calculated:
3.Length of Credit History (how old is credit) – makes up 15% of your score 4.New Credit – makes up 10% of your score 5.Credit Mix (mortgage, auto, installment loans, revolving credit) – makes up 10% of your score Personal Information Name, social security number, date of birth, address and phone numbers When reading and reviewing your credit report you want to ensure that all information is accurate.Each credit bureau may organize their report different but each bureau will include in your report these five (5) categories: 1. How To Effectively Read Your Credit Report:
a. current and closed accounts b. payment history c. current balances d. names of creditors e. credit limits or loan amount f. account status Soft Inquiry – (i.e. pre-approval; does not affect your score) Hard Inquiry – (lenders checking your report; too many hard inquires can affect your score) 2.Employers – past and present jobs 3.Credit History This is normally the largest section of your report. Any accounts you have established with lenders will report to your credit report and will include the following: 4.Public Records – Bankruptcy, foreclosures 5.Credit Inquiries – Lender accessed your credit report After thoroughly reviewing your credit report, it is vitally important to dispute any errors you may find on your report. The errors found can be disputed with the specific credit reporting agency. Disputing the errors (wrong information or update information) should be done immediately after reviewing your report as this could be affecting your credit score.
Your personal credit is most important because it provides you with financial power. When your credit score is 700 or above it saves you money and allows you to leverage that good credit to help build legacy wealth. If your credit score is not 700 or above DO NOT LET THAT HINDER YOU. START TODAY building your credit and credit score. Building your credit and credit score is not hard; with TIME, PERSISTENCE and DETERMINATION it can be done. Why is Credit Important:
For additional information or to schedule a one to one consultation you can contact me at: “LET’S GET IT!” [email protected] or 1-800-966-5108