Credit Reports ? Why Your Credit Score is Important
If you have never heard of a FICO score before, you should become familiar with the term. Named for the firm that invented it, Fair Isaac Corp., the FICO score is the three-digit credit summary that, in essence, reduces your entire financial life to a simple set of numerals.
The score represents a distillation of information gleaned from the three main credit-reporting bureaus - Equifax, Trans Union, and Experian, regarding your loan and payment history, as well as any bankruptcy filings you may have made. Andy liens or payment defaults will be incorporated into the score as well. The score, which can vary from a low of 300 to a high of 850, represents an attempt to quantify a lifetime of financial dealings into a single number. It has been quite successful. In fact, most people would be surprised to see just how important that score has become and how many businesses use it for reasons that aren't entirely obvious.
Most people would assume, correctly, that lenders would check the score of a potential borrower who was applying for a car loan or a home equity line of credit. Many would be surprised, however, to see that the score is often accessed by potential employers, landlords, or even insurance companies. While some states have strictly forbidden the use of FICO scores as a guideline for setting insurance prices, some insurance companies still access the scores in order to assess risk for potential customers. Employers access the scores to see if a possible employee might be a security or theft risk, and landlords may use the score to determine whether or not a tenant should post a high security deposit prior to moving into a rental property.
A substantial argument can be made that there is no way to accurately reduce someone's financial status to a single three-digit number. That said, it is simply a whole lot easier for most companies that need a financial "snapshot" of a customer to look over their credit report, look at the score, and offer a "yes or no" response based on the score alone. Fair or not, this is the way things work today, and it is probably unreasonable to expect lenders, employers and landlords to start looking deeper into their customers' and employees' finances.
The best solution for anyone who is concerned about his or her credit score is to examine their own credit report, which can be obtained for free at annualcreditreport.com. Report any errors to the appropriate credit bureau, and try to check your report once or twice a year. Fair or not, we are our credit score. Making sure that the number is accurate is an important step towards a solid financial future.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity lending/a>.
Latest News
 Straits Times | Government plans new credit, mortgage programs O Jornal, MA - The Fed program for consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans such as credit cards, ... Washington’s $6.3 trillion bailout US Unveils New Programs to Ease Credit Thanksgiving surprise: $800 billion more for the credit markets |
Kenexa to Present at the Credit Suisse Annual Technology Conference MarketWatch - a global provider of talent acquisition and retention solutions, today announced that its Chief Financial Officer, Don Volk, is presenting at the Credit ... Digital River CFO to Speak at the Credit Suisse Annual Technology ... Brocade Corporate Controller, Charles Read, to Present at Credit ... |
 CEP News | Goldman off as Credit Suisse calls for $4 a share loss MarketWatch - "October was a difficult month; November-though we were hopeful-was really no better with asset prices for equities, credit and real estate-only coming ... US bank stocks tumble again as gloom deepens Ahead of the Bell: Morgan Stanley acquisitions |
Realtors(R) Federal Credit Union Hires Thomas A. Glatt as First CEO MarketWatch - WASHINGTON, Dec 01, 2008 /PRNewswire via COMTEX/ -- The REALTORS(R) Federal Credit Union board of directors today announced that veteran credit union leader ... |
 Post Chronicle | Sector Snap: Consumer Lenders CNNMoney.com - NEW YORK (Associated Press) - Consumer spending is likely to decline as the nation's largest credit card lenders cut customers' credit lines over the next ... Credit card industry may cut $2 trillion lines: analyst The Death of Credit Cards Late barely better than never |
 The Jewish Journal of greater L.A | Pastor apologizes for church credit card use San Jose Mercury News, USA - AP LOS ANGELES—The pastor for First AME Church in Los Angeles has apologized to his flock over his use of a church credit card for $122000 in personal ... First AME pastor's credit card charges probed First AME pastor apologizes to congregation for alleged misspending |
ExpressJet to Present at the Credit Suisse Global Airlines Conference MarketWatch - today announced that the company will present at the Credit Suisse Global Airlines Conference in New York City. Jim Ream, President and CEO, will present a ... |
'Coupons' & 'Credit Scores' Top Ask.com's Real Deal List of Most ... MarketWatch - Credit score Ask searchers were hunting down deals for all facets of their everyday lives, demonstrated by top queries for "cheap," "used," and "discount" ... |
United Online to Present at the Credit Suisse 2008 Technology ... MarketWatch - ... and Scott H. Ray, Executive Vice President and Chief Financial Officer, will present at the Credit Suisse 2008 Technology Conference in Scottsdale, ... |
 Wall Street Journal Blogs | Restoring the flow of credit to entrepreneurs Los Angeles Times, CA - By Cyndia Zwahlen The credit crunch looks like an espresso machine. At least it does to Michael McDonald, who is trying to open a coffee shop near UC Santa ... BIZ VOICE: Banking on small guys Federal Credit Facility Aims to Thaw SBA Lending SCORE: Enjoy the upside of a down market by thinking outside the box |
Resources
-
Bad Credit Loans, Bad Credit Credit Cards - YoureApproved.org!
Personal loans, Credit cards from bad Credit lenders including bad Credit loans - high risk unsecured bad Credit cards - debt consolidation loans - payday loans!
-
Bad Credit Loans - Personal Loans - Credit Cards - Home Loans - Auto Loans - Credit Repair
Bad Credit loans and Credit cards - personal loans - high risk loans - Credit repair - free government grants - government auctions - police auctions - debt consolidation - filing bankruptcy
-
No Money Down - Creative Real Estate Investing!
Learn how to control real estate Without Credit checks and no money down! You can Buy With No Credit!
-
Pass Your Class - Pass Your Clep Tests - Guaranteed!
Pass your CLEP tests - Guaranteed! Pass or Pay Nothing. 98% of all students that study our materials PASS!
-
Debt Elimination that Works: Remove All Your Debt, including Credit Cards and Mortgage in 3 to 5 yea
Debt Elimination that Works: Remove All Your Debt, including Credit Cards and Mortgage in 3 to 5 years.
-
Access Loan.
15,000 Cash Loan - Even With Credit Problems.
-
Credit Repair in 1-3 Months!
Credit Repair - Repair bad Credit within 1-3 Months.
-
Profit in Real Estate Without Cash, Credit or Risk!
Profit in real estate without cash, Credit or risk. Learn how to make quick cash in real estate without owning property.
-
Repair Credit Reports
A Downloadable Credit Repair Guide Aff. Make 50% Comm.
-
Credit Repair
Great seller quick turn around. High payout.