Short QA About credit scores

There is a set of numbers that rules your life. It is with you no matter what you do and where you go. Credit scores seem to be involved in every aspect of our lives. Good credit scores or even poor ones can determine whether or not you drive a new car, own a home or even have the job that you want. It is hard to believe that something so simple, yet complicated, can make or break you. A good credit score is absolutely fundamental if you want to do anything in today's economy. But there is a lot of confusion on how a credit score is calculated and what makes it a good score or a poor one. In this article we will cover how credit scores affect your daily life and how important it is to have good credit.



When did credit scores become so important?

Credit scores have been pretty important for the last thirty years but within the last ten years it has been a fundamental way to have a good way of life. More and more jobs are now basing their hiring on what a credit score shows. The same thing applies to rental homes and apartments. Owners figure that if you were delinquent on past bills that you will be a high risk to rent to. Is this always correct? No, there are extenuating circumstances that have lead to poor credit scores for some people. Is it still a fact of life that you need a good credit score? Yes, strangers do not have the opportunity to know you intimately and know whether or not you will be a good customer or tenant.

What companies handle credit scores?

There are three main credit reporting bureaus in the United States that report all over the world. Equifax, TransUnion and Experien. The way that each company comes up with your credit score is based on their policies. You may have a higher credit score with Equifax than you do with TransUnion or vice versa. It is wise to have a credit checking service that monitors your credit scores with all three businesses as you never know what one business is going to show over the other two businesses. By monitoring your credit score you can also stop any fraudulent accounts being opened in your name because you will be able to see and dispute any open or closed accounts that you may not have opened.

What happens to my credit scores after a bankruptcy?

Bankruptcy is a hard hit to credit scores. The main reason is that you probably have already defaulted on some credit agreements. But once you declare bankruptcy and are either absolved of the credit debt or you have paid a portion of it back, bankruptcy will remain showing on your credit for many years. Bankruptcy is not an option that you should consider lightly. But if you find that you are missing payments and are financially unable to pay back the debts, you need to speak to a bankruptcy attorney as soon as possible to go over your options. Your credit scores will be affected but you will get a chance at a clean slate to start over again with time.

How do I handle a dispute over my credit score and some erroneous information?

Yes, you can handle a dispute over your credit score and erroneous information. The first step is to have a membership to a website that monitors all three of the major credit bureaus. When you notice an account that you did not open or are disputing the claims, you will need to contact that credit bureau and open up a dispute. The credit bureau will contact the financial institution and then an investigation will occur. Hopefully you will be able to provide documentation that the account was never requested, never opened or was opened by someone using your identity. This is why it pays to monitor your credit.


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