Credit score check and factors affecting them
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Posted On :
Nov-09-2011
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Article Word Count :
418
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Credit scores determine the worthiness of an individual to receive loans. To compete with a certain standard of living, people are sometimes forced to rely on loans, which lead to a low credit score. Regular monitoring on your report and also working on your scores will help make your credit history healthy.
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In this day and age, what is immensely powerful with a huge impact on our lives? The answer is your credit score when it is about your financial life having direct influence on your personal life. Lenders, bankers and other financial institutions check the scores and the history to determine the risk associated with you before lending money. With a bad credit score, you leave negative impressions on the lenders, as it signifies to them that you are risky borrower. There might be speculation over lending money to you as the chances are that you might not be able to pay back the borrowed money.
Factors affecting credit scores
The rising cost of living forces us to meet our needs as well as luxuries with taking out credit or borrowing money. Our reason for debt is not just confined to buying new homes or vehicles but people also seek lenders for day to day expenses.
The vicious cycle of loans and low credit scores – this is awful! But the truth is that people look for new debts too so that old ones can be paid down. With expanding day to day needs, the use of credit cards and loans is increasing, which may bring down the credit score. People have to cope with the demands of their standard of living, loan payment and low credit score from a single point.
Credit score differences between credit agencies
Equifax, Experian, and TransUnion are the three major credit agencies. Your annual credit report by these agencies varies from each other, which leads to differences in scores. The distinction in the annual credit report and score is also observed because of the differences in the calculation models used by these agencies. A regular credit check and history check is vital to keep tabs on your scores, so that sound financial health can be maintained. You can also report to the agencies if any discrepancies in the history are encountered.
Work on your credit report to pay less
With the high cost of living, one should also tackle ways to manage credit scores in an efficient manner. Working on your credit report will help alleviate you from complex situations and lenders can bank on you for the repayments of loans. In times of need and bad credit scores, you have to pay a large amount of interest, which could have been lower with a good credit score.
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Article Source :
http://www.articleseen.com/Article_Credit score check and factors affecting them_101902.aspx
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Author Resource :
To effectively manage your financial history, signing up with www.freecreditscore.com, offering free credit check, is best. Credit score alert will update you about the minutest change in your score. Along with that, you can also access your credit reports anytime, which lets you investigate your credit scores.
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Keywords :
Credit check, free credit check, credit report, credit score, free credit score, credit scores, credit score free, free credi,
Category :
Finance
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Finance
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