Credit Score: The Brightest Feather In Your Financial Cap
Credit scores are the most important aspect that determines your financial future. Carrying a good credit score is an asset and can pave your future towards greener pastures. On the other hand a negative marking on your credit report can be ruinous for your future dreams. However, "There Isn't Much anyone can do for those who will not Do Something for themselves." The same is applicable for credit scores. Your prime aim is to maintain a good credit score and lead a planned life.
How to assist myself to have a good credit score
To have a clear knowledge about your credit score, it is a good idea to get your credit report from the credit bureaus once a year. This will ensure your credit is being reported correctly. Usually the credit scores are within 400 to 850. If your credit scores are higher, your eligibility to get approved in a loan also gets higher in priority.
Credit scores consider 5 main categories for scoring consideration and are rated according to importance:
Payment History -35%;
Length of History -15%;
Amounts Owed -30%;
New Credit -10%;
Types of Credit -10%.
Correlation between the Credit Score and Defaulters
Most lenders consider people having credit score above 650 to be prime borrowers. This means they will most likely be approved at favorable interest rates. According to credit report from Equifax, 71% of the people with a credit score from 500-550 will default on their credit. Another 51% of buyers with a credit score from 550-600 will also default on their credit. Those individuals having credit scores of 650 or more is considered to have a decent credit score.
More than 2 million credit reports are issued each business day in the United States, allowing millions of consumers to purchase homes, cars and other durable goods and services on credit.
In the only statistically valid study conducted to date, Arthur Andersen concluded that in only two-tenths of one percent of the over 15,000 cases studied, where consumers denied a benefit based on an error in their credit report.
?Experian's credit files contain records on approximately 205 million credit-active consumers.
?Each month, there are more than 4.5 billion updates to credit report information throughout the U.S.
?The American credit databases are the most accurate and secure in the world.
?There are over one billion credit reports issued annually.
?Credit reporting saves the average person from 200 basis points on their mortgage loan.
In any part if the world it is very easy to stack up a large debt. Private debts on homes, cars and credits have ballooned through the sky. At such a juncture when people are undergoing the syndrome of easy to pile up and difficult to clear like dirty linens, one should be overtly conscious of their credit score.
For better insight on the effect of credit scores please view:
http://www.debtconsolidationcare.com/credit-score.html
http://www.debtconsolidationcare.com/credit-counseling.html
Janet Williams is a contributing writer to http://www.debtconsolidationcare.com/ and is currently working on a special section in the site called do it yourself where you can eliminate your debts and become debt free.. sarah@debtconsolidationcare.com
MORE RESOURCES:
 CBS News | Your Money One Thing You Can Control: Your Credit Score New York Times, United States - Your credit score, however, is something that you have a fair bit of control over, since it reflects your behavior as a borrower. ... Global leaders seek answer to credit crisis Credit Crisis Collapse What Happens Next? Regional financial experts focus on lending; say credit crunch is ... |
 Fresh News | Stock markets end week of credit crunch worries Newsday, NY - Credit-crunch worries continued to weigh on US stock markets Friday, but the hemorrhaging evident for most of the week was contained. ... Video: Stocks Fluctuate After Fed Corporate Debt Plan Easy credit and financial crisis Overseeing Finance's New Era |
 The Associated Press | US will work with partners on credit crisis: Bush CBC.ca, Canada - It was the 21st time in 26 days that the president has spoken publicly about the credit crisis gripping financial markets and dragging down stock markets. ... Meeting G7, Bush Vows World Economic Fix |
 New York Times | Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion Washington Post, United States - By Heather Landy NEW YORK, Oct. 10 -- In what may shape up to be the most expensive payout ever in the credit-default swap market, sellers of insurance ... STOP FINANCIAL WMD'S: Credit Default Swaps Insurance on Lehman Debt Is the Industry’s Next Test Lehman Credit-Swap Auction Sets Payout of 91.38 Cents (Update1) |
Fears Grow That Tight Credit Could Crush GM, Ford NPR - Standard & Poor's downgraded the credit of both companies and their financing arms this week. AFP/Getty Images Ford F-150 trucks sit at a dealership in ... Video: Money Minute: GM, GE, Oil GM, Ford too big to fail? CREDIT WATCH HITS GM, FORD |
 Voice of America | IMF endorses G7 plan to fight global credit crisis CTV.ca, Canada - The International Monetary Fund is backing a plan by Canada and the other G7 countries to fight the worldwide credit crisis, which continues to play havoc ... Video: IMF: Timing right for G7 Credit CRISIS ALERT Press demands some G7 credit crunch punch |
 Boston Globe | Transcript: President Bush's Radio Address FOXNews - The Fed has joined with central banks around the world to coordinate a cut in interest rates — a step that should help free up credit. ... Partial Tax Exemption Will Unleash the Free Market and Buoy Our ... Text of Bush's remarks Friday on the economy Comprehensive strategy to tame crisis: Bush |
DTCC Addresses Misconceptions About the Credit Default Swap Market MarketWatch - Since that time, the vast majority of credit default swaps traded have been registered in the Warehouse. In addition, all of the major global credit default ... |
 Dividend.com | CME Group Details On Future Credit Default Swaps Market istockAnalyst.com (press release), OR - ... owned in the past (we just rebought CME Friday morning) are positioning for a piece of the very huge (and very troublesome) credit default swaps market. ... Credit swaps dragged out of shadows State Controller Chiang to Treasury Secretary Paulson ... Financials Got You Down? CME Pitches Credit-Default Swaps the ... |
 KCBS | State placed on credit watch ahead of upcoming bond sale Los Angeles Times, CA - By Marc Lifsher, Los Angeles Times Staff Writer SACRAMENTO -- Bond rating service Standard & Poor's on Friday placed a "credit watch with negative ... S&P questions whether California can borrow $4B California Rating Threatened by Cash Crunch, S&P Says (Update2) Concerns over California's ability to borrow $4B |
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