A Credit Score is a numerical expression based on a level analysis of a person’s credit files, to represent the creditworthiness of the person. … Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.
How Much Money Will It Cost You To Get Money?
Once upon a time the Credit Score is the basis of a “Yay” or “Nay” when applying for loans and such. Not anymore, and it’s no good news either. Now your Credit Score is the basis of the interest rate of the loan you are applying. So, the “Higher” your Credit Score is, the nearer you get standard interest rates on your loans, and the “Lower” your Credit Score is, the interests would get higher. A Credit Savant simply put: “The lower your Credit Score is, higher you are paying extra money… To Borrow Money”.
Such a fate indeed.
Knowledge is Power
KNOW WHAT LOWERS YOUR CREDIT SCORE:
The following are components in your credit file that damages your credit score:
- Adverse Listings – these are entries in your credit file that GREATLY lowers your score. These may be Defaults, Clearouts, and Court Judgments
- Credit Enquiries –these are those pesky little accesses that Credit Providers place on your Credit File when you inquire about their services, even if your applications are declined, this will pop
Taken from Veda Advantage, Veda admits to these factors that lowers your Credit Score Cheeky ain't it?
PREVENT FUTURE CREDIT SCORE PITFALLS:
- PAYMENT HISTORY– pay your bills and loans on time, credit providers will not hold back in damaging your credit score when your payments are late
- SHOPPING AROUND FOR CREDIT – instead of signing up for different quotations, be anonymous (it’s your right), start by saying that you are just making an enquiry. Read their flyers instead of signing up in their sites for those damn “Free Quotations”
- ORDERING YOUR CREDIT SCORE FROM THIRD-PARTY AGENTS – these agencies are really a front for finance products and the terms and conditions you agree to when ordering your score, allow your credit file to be sent for pre-screen marketing.
- REQUEST COMPANIES TO STOP SHARING YOUR CREDIT FILE – understandably, damage has been done, use this letter CLICK HERE to stop companies from sharing your credit file for marketing purposes.
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