What can I DO to improve my credit?
Date: Wed, 12/20/2006 - 12:40
I noticed that at the beginning of the year when I was looking t
I noticed that at the beginning of the year when I was looking to buy a new car, my score was a lot higher on the report I had compared to the report the dealers used. I was really confused....I did find a little info that might help explain.
Quote:
There are several explanations why your credit score would be different. Credit scores are based on the information in your credit report. Lenders can customize credit scores to emphasize different aspects of your credit history or they can use a generic score provided by the consumer-reporting agency. The score that you get from Experian's Credit Manager service is a generic score. A credit score is like a snapshot in that it reflects your credit history on the day when the score is calculated. New information on your credit report, like payment updates or a new account, can cause your credit score to change. So you could see a difference if the two scores were calculated on different dates Customized credit scoring models can also vary based on the type of credit you're applying for. A mortgage lender is looking at your credit history from a different point of view than an auto finance company. Lenders use credit scores to predict the risk they face in lending you money. They need to be consistent in how they evaluate loan applications and avoid any illegal biases, but on the surface there's nothing illegal in using a customized credit score to evaluate loan applications. There may be fair lending issues in how a credit scoring model is used by a lender to make loan decisions, but the fact that your generic Experian score doesn't compare to the Experian score that the lender reported to you doesn't mean that the lender is playing games with your loan application. |
Read the tips given on improving the credit scores. Rising credi
Read the tips given on improving the credit scores. Rising credit scores is no magic. You will have to work hard for it. See your credit report and find out all the accounts that are in negative state. You will have to clear the debts to see your credit scores improving. Also check if there are any inaccurate entries being reported. They also hurt the credit scores severely. Dispute anything that is reported inaccurately in your file. Those can be fixed immediately. Show good and regular payment history in your credit accounts and this will make your scores better
There are actually a number of different scores out there; it ju
There are actually a number of different scores out there; it just depends which one a creditor wants to buy from the bureaus. The FICO Classic is the one we're familiar with. Their are about 25 other scores that calculate different risks: the FICO Auto 98 is designed for car dealers and car loans ... it places less emphasis on the small credit cards and such, and mostly factors in your other secured loans you've had. There's another score (can't remember what it's called) that tries to predict if you will go bankrupt anytime soon. Like PinkLady said above... lenders use the different scores based on what type of loans they give out.
I like the other's advices on credit score help. My advice will
I like the other's advices on credit score help. My advice will be a little different. You said you paid $30 for a copy of your credit report. You can get your credit report for free from annualcreditreport.com. Now, I don't think you you will get your score from that, you can still look at what it says and determine/corrects errors, which can improve your score.
