Credit Reports and Credit Score Introduction

Part 3: As part of series of articles (blogs) regarding Credit and Credit Score, here we start:

In today’s tough economic times, where every person is being characterized or judged by his/her number (credit score), having a good credit score is essential to enjoying an appropriate standard of living. You need to have good credit just to rent an apartment, rent a car, open a bank account, get auto and home insurance, get a job, buy a car or obtain a home mortgage.

Having good credit is more important in today’s economy than ever before. Just a few points on your score can keep you from getting a home loan, auto loan, or even a credit card.

Depending on your credit, you could be denied a loan, offered a normal interest rate, offered a loan with higher than normal interest rate and/or one that requires you to put more money down. Like most cases in finance, those who are considered “low risks” get to pay the lowest rates.

To the mortgage lenders, your credit score represents your likelihood of making on-time mortgage payments for the next couple of years, based on your recent (e.g., last two years or so) payment history. Therefore, it is very important to have a good/excellent credit history and credit score.

Many of us, however, have experienced credit problems through no fault of our own due to job loss; medical bills, identity thefts, funeral expenses, home & auto repairs, business failure due to local, national and international economics, stock market crash, depression and recessions. Other contributing factors such as expensive legal fees and divorce can all create devastating credit problems.

However, just because you have a poor credit history or credit score, doesn’t mean it will last forever nor will you be penalized for all your life. There is something you can do about it. You should take appropriate actions to establish/re-establish good credit and improve your credit score.

In order to establish a good credit history and improve your credit score, first you need to know what a credit report and a credit score is and what it is made of. This book provides this information and shows you why your credit score is so important, and finally it provides you with many tips and tricks on how to improve your credit score.

CAUTION:
There are many companies that will charge a substantial amount of money and promise you to “remove”, “repair” or “fix” negative information from your credit report and improve you credit score. Be aware that no third party person or company can legally remove valid negative information from your credit report permanently.

SOLUTION
The key point is that you need to know what is on your credit report, legally remove inaccurate or obsolete information from your credit report, understand how credit scores are generated and how they can be improved.

HOW to overcome the problems with your credit history and credit score?
Knowledge, education, awareness, practice and discipline are the essential keys to being successful on any subject. The book, "Credit Score Tips and Tricks", provides you information, tools, techniques to educate yourself and manage your credit report & credit score, and therefore manage your finances effectively at no additional cost.

I have decided to bring and share with you, chapters or sections of the book, as series of articles here. This is the number 3 of such a series.

I also created and manage a GROUP in ActiveRain, Credit Reports and Credit Scores, Please feel free to join and share your thoughts and experiences.

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