Understanding Credit Report Score

Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.

Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.

You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don't want the lender to find a mistake that you aren't aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.

You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a "soft inquiry" and doesn't harm your credit score at all. Only "hard inquiries" from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.

Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.

The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.

The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.

Don't be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.

If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.

Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.

Equifax Credit
P.O. Box 740241
Atlanta, GA 30374
Equifax 800-685-1111
http://www.equifax.com

TransUnion
P.O. Box 1000
Chester, PA 19022
Trans Union 800-888-4213
http://www.transunion.com

Experian
P.O. Box 2002
Allen, TX 75013
Experian 800-682-7654
http://www.experian.com

You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.

If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.

Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.

Copyright © 2005 Credit Repair Facts.com All Rights Reserved.

This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles go to: http://www.credit-repair-facts.com/article s_1.html

---

Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth

You got creditors calling you everyday. You could lose the car or house. Your teetering on the edge financial ruin - then you see an ad that... Read More

I?ve Heard About FACTA; What Does It mean?

What FACTA means is that if you, as an individual, lose the information on anyone you have ever hired; or, for any business in the United States... Read More

Stop Credit Card Offers

You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide the requested... Read More

What Happens When Your Credit Is Damaged? Do You Have Recourse?

The good thing about bad credit is that you can fix it. If you start now, over time, your bad credit can turn into good credit, and... Read More

Small Business Credit Cards

So what do you look for when applying for a credit card for your small business? One thing is for sure, wasting money isn't an option because... Read More

Learning the Disturbing Facts about Credit Card Debt

When I received my first credit card in the mail at age 18 I was ecstatic, I said to myself, wow now I'm getting somewhere in life.... Read More

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making... Read More

Cash Advance ? How Does It Work?

If you want a cash advance or a payday/paycheck loan, you usually get a personal check. Some companies use your bank account or credit card in addition... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice of many financial managers as they guided their customers to be aware of all information on credit... Read More

Good Credit -- Essential for the Prospective Home Buyer

Credit is a funny thing. It can be a useful tool in the hands of an informed individual, or a weight of burden to the unsuspecting. One... Read More

Do you Know the Benefits of Checking your Credit Report?

Do you know why you should check your credit report?Of course you do, because you have undoubtedly experienced one working in your life!No matter where you roam,... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get the best rates on your auto and homeowners insurance simply by having a good credit score.Additionally a... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware when dealing with your credit.1. The Truth in Lending ActThe customer had to be told the true... Read More

Credit and Banking Money Saving Services

The first rule when applying for banking and credit services is to always read the fine print and to understand all of it. Read up, take it... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of purses and wallets are stolen everyday and many of them are not just taken for the money... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest interest rate. Next... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have ever owned a credit card you probably already have learned this the hard way. If you have... Read More

Maximizing Credit Card Rewards

In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice... Read More

How Does a Creditor Determine Whether to Grant You Credit?

Credit 101How does a creditor determine whether to grant you credit? For many years, creditors have been using credit scores and credit scoring systems to determine if... Read More

FREE Credit Report Offer - Careful, It Might Carry Hidden Charges

FREE credit checks or free credit reports. What are they all about? Why every second company on the Net is offering you a free credit report? Are... Read More

Tips for Credit Card Surfers

Moving money from credit card to credit card to take advantage of interest free balance transfers and effectively borrowing money for free. It's even possible to make... Read More

Credit Repair Scams

"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've probably seen these headlines and others just like it promising to clean up or "fix" bad credit.... Read More

Bad Credit? No Credit? Yeah, Its a Problem.

Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way... Read More

How To Use Your Credit Cards Wisely

Are you one of the thousands pulling your hair out trying to figure out how you're going to pay your credit card bills? Using your credit cards... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards. Here's some important points for you:A quick look around on the Internet this morning shows that more... Read More

Have You Ever Opened a Checking Account?

Maybe some of you are saving it in your trusty piggy bank, under your mattress or way back in a sock drawer. Although I'm glad that you... Read More