Score
Power
Credit reporting agencies have provided us our credit report, for a fee, for several years. However, we never knew how that report was interpreted and converted into our credit score.It is the score upon which lenders base their decisions regarding our mortgages, car loans, and other notes. For over a decade, scores have been made available to lenders, but not to consumers. Not any more.The
most used (70%) credit scoring organization, Fair,
Isaac, and Company, and one of the three credit reporting
agencies, Equifax, have teamed up to sell us our scores
on line. Their product is named Score Power. The price
is $12.95, and it includes our complete credit report,
which is normally $8.50.
You
provide identifying information to ensure privacy,
and the information is delivered online within seconds.You
can print yourself a copy, and the information will
be available online to you for 30 days from the order
date.
This
is a great tool for anyone who wants to understand
their credit standing. Score Power includes an easy-to-understand
explanation of the score, how it is derived, and steps
you can take to actively maintain or improve your
score over time.
Obtaining
your score ahead of applying for a loan is a good
idea. You can prepare yourself and know what your
chances are of being approved.
The
score is a three-digit number, which ranges from 325
to 900 pints. The higher the score, the better a person’s
credit rating. The main factors in determining the
score include payment history, major delinquencies,
age, home ownership and length of time at current
address.
The
FICO score is used to make billions of credit decisions
each year, including more than 75% of mortgage loan
originations. In addition, more than 70 of the nation’s
100 largest financial institutions rely on the FICO
score to determine an individual’s credit worthiness.
Rival
credit bureaus Trans Union and Experian will sell
their own scores later this year. Online E-Loan is
offering a FICO-like score free that they will go
over with you if you apply for a loan.
To
improve your score:
The
best part:
A
good credit score can not only make the difference
in whether or not you receive the loan, it can give
you negotiation power with the interest rate you pay.
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