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9009 West Loop South, Seventh Floor, Houston Texas
1-866-889-9347 |
CCCS of Baton Rouge
Regional Headquarters - 615 Chevelle Court, Baton Rouge Louisana |
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Reduced To A Number – Your Credit Score |
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 When you need identification, you reach for your driver’s license, social security card and…… credit score? Yes, it’s true, more and more companies are making decisions based on your credit score. Auto and homeowners insurance companies are using your credit score to determine the likelihood of future claims and setting your premiums accordingly. Technically, someone with four or five accident claims but a high credit score could feasibly pay less in premiums than someone with a flawless driving record and a low credit score. Many employers are using credit scores to screen job applicants, claiming that someone with a poor credit history will be a less stable employee. Some landlords are even reviewing credit scores before renting.
Your credit score consists of a three-digit number representing your creditworthiness. The industry standard, called the FICO or Beacon score, was invented in the 1950s at Fair Isaac & Co. The scores are based on complex and closely guarded mathematical formulas. The FICO rates credit on a scale ranging from 300 to 850, the higher the better. 720 and above is considered optimal and will secure you the best interest rates and terms. 85% percent of mortgage lenders use your FICO score to determine their risk in lending you money.
Errors can regularly appear on your credit report and can drop your score lower than you deserve. Monitor your credit report regularly not only to correct mistakes but also to check for unauthorized use.
Resources for checking your credit score and history:
If you find errors in the credit report, dispute the charges in writing to the credit bureau describing the mistake and requesting a correction. After a challenge, the credit bureau has 30 days to discuss it with the creditor that supplied the information and decide how to proceed. You can expect the entire process to take about 45 days.
If you need to raise your credit score, the fundamental rules of credit apply. Start with timely bill payment, close any unused credit accounts, pay down your loan balances, limit the number of credit cards you use and establish a good long-term credit history. With the rising influence of credit scores, you can’t afford not to know yours.
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CCCS, A Division of Money Management International
Regional Headquarters – 615 Chevelle Court, Baton Rouge Louisana
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
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