How Do I Interpret My Credit Score?

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How Do I Interpret My Credit Score | How Does The Credit Score Scale Work?

How do you possibly have the credit score that they are telling you - you have??? Where was the notice "There will be a test on this and you will be graded!" Now you are looking at your credit score and wondering - How did this happen? Where did this number come from? How did I get here and what can I do about it? I Need Help!!!

I worked in the loan industry for a long time and have looked at thousands of credit reports. There is a lot that I've learned that can help you interpret your credit score.

What Did You Think When You First Saw Your Credit Score??? 

Was it "Way to Go" or "What The Heck Happened"?

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How Do I Interpret My Credit Score 

How Did They Come Up With That Credit Score For Me...

Let's understand what a credit score really is. It is all about how well credit is managed. How much credit has been made available, how much has been used, how long have you had it and how well it has been repaid.

So, to begin with, you have to have had credit given to you to have a credit score. It could be a mortgage, car loan, bank loan, credit card, etc... you have to have used credit to have a credit score.

Bloomberg Helps You To Interpret Your Credit Score 

Learn About Your Credit Score From The Experts...

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Where Did You Find Your Credit Score? 

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How To Interpret My Credit Score Resources 

I Need Some Help...

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today by Jamaine Burrell

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today by Jamaine Burrell

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BestCredit: How to Win the Credit Game, 2nd Edition by Dana Neal

BestCredit: How to Win the Credit Game, 2nd Edition by Dana Neal

Written by a former debt collector, this credit re more...0 points

Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future, 2nd Edition by Liz Pulliam Weston

Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future, 2nd Edition by Liz Pulliam Weston

Back Cover Copy: Your Credit Score Your Credit Sco more...0 points

Deal with Your Debt: The Right Way to Manage Your Bills and Pay Off What You Owe (Liz Pulliam Weston) by Liz Pulliam Weston

Deal with Your Debt: The Right Way to Manage Your Bills and Pay Off What You Owe (Liz Pulliam Weston) by Liz Pulliam Weston

Most people carry debt for most of their adult liv more...0 points

What Is Your Available Credit Compared To What You Use? 

Very Important Point...

A Very major factor in your credit score is the amount of available credit you have been given - compared to the amount of credit you are using over time. For example, if you have a credit card with a $5,000.00 credit limit and you owe $4,900.00 on it - then that credit line is about maxed out. However, you can have a credit card with a $2,000.00 limit that you keep paid off - and that has a big positive given to usage difference. It come down to how much credit you have been given and how much you are actually using over time. It is better for your credit score for there to be a big difference in the credit given vs. credit used.

What Information Is Not In Your Credit Score 

What Are They Really Looking At???

Many people are surprised by the information that is NOT in you credit report. How much your income is, how much money you have in the bank. how old you are, your gender and race - all these items are NOT in you credit report.

There are also several monthly bills that you have that do not usually (I'll get to that) show on you credit report. Your utility bill, phone, cell phone, cable, memberships for things like the gym, day care, tuition, even your rent... Because these bills are not credit that has been extended to you. The power company does not tell you how much you can spend each month, they just bill you for what you use.

The exception I have noticed with these is if they are very past due, delinquent, or move into collections. Which means if you pay them on time they really do not do anything to boost your credit score...BUT if you get behind - they can really bring you score down!

You Actually Have 3 Different Credit Scores 

They Are All Importent Credit Scores...

There are three companies that monitor your credit and give scores. They are Equifax, Experian, and TransUnion. They each maintain credit reports and understand this - They are not necessarily the same.

I worked in a company that routinely pulled all three reports and more often that not - they were different. Sometimes the scores would be close and often one was very different. What score was used out of the three? The lowest!

You need to make sure that you look at all THREE of you Credit Reports - not just one. You need to make sure all three are accurate.

Get an Equifax 3-in-1 Credit Report Now!

 

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