Maintain your old Siemens Hipath system

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle! (Part 1 of 2 on Credit Scoring)

Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring. And, its impact on your financial future can mean more to you than a college degree.

You may never know your precise credit score, but you need to know if you're at risk!

Credit Scoring ... Why It's So Important:

Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans.

Precisely what is credit scoring?

Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts is collected from credit applications and your credit report.

Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. Total number of points (credit score) helps predict how creditworthy you are; how likely it is that you will repay a loan and make payments when due.

Why is credit scoring used?

Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applications objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.

To develop a model, a creditor selects a random sample of its customers (or a sample of similar customers if their sample is not large enough), and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk.

Each creditor may use its own credit scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.

How reliable is the credit scoring system?

Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, credit scoring systems must be based on a big enough sample. Remember that these systems generally very from creditor to creditor.

Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.

In fact, many creditors design their systems so that, in marginal cases, applicants whose scores are not high enough to pass easily, or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.

What happens if you are denied credit or don't get the terms you want?

For the answer to that crucial question and how to improve your credit score, be sure to read Part II of "Like It Or Not, You Have A Score To Settle."

******************************************************************************** **************************************************************************************************** ***************

Like It Or Not, You Have A Score To Settle!

(Part 2 of 2 on Credit Scoring)

In part 1, we covered the basics about credit scoring ? what it is and how it is calculated. It's time to address the critical question ...

What happens if you are denied credit or don't get the terms you want?

The Equal Credit Opportunity Act requires that the creditor give you a notice either with the specific reasons your application was rejected, or stating that you have the right to learn the reasons if you ask within 60 days.

NOTE: Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific.

If you were denied credit because you are too near you credit limits on your charge cards, or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.

You also can be denied credit because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report contains.

NOTE: This information is free if you request it within 60 days of being turned down for credit. The credit reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.

If you've been denied credit, or didn't get the rate or credit terms you want, ask the creditor if a credit scoring system was used. Be sure to ask what characteristics or factors were used in that system, and the best ways to improve you application.

If you get credit, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information in your credit report.

Under the Equal Credit Opportunity Act, a credit scoring system may not use certain characteristics like: Race, Sex, Marital status, National origin, or Religion. However, creditors are allowed to use age in properly designed scoring systems. But any scoring system that includes age must give equal treatment to elderly applicants.

What can I do to improve my score?

Credit scoring models are complex and often vary among creditors, and for different types of credit. If one factor changes, your score may change. But improvement generally depends on how that factor relates to other factors considered by the model.

NOTE: Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.

Nevertheless, scoring models generally evaluate the following types of information in your credit report:

· Have you paid your bills on time? Payment history is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.

· What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.

· How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payment and low balances.

· Have you applied for new credit recently? Many scoring models look at inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted.

· How many and what type of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans form finance companies may negatively affect your credit score.

Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.

Credit and You are a group of expert on credit and the author of "CREDIT REPAIR ? The truth will set you free." Feel free to pass this article along to family and friends. And be sure to pick up your copy of Credit Repair, The truth will set you free at http://www.creditandyou.com.

In The News:

Netanyahu 'prepared to do more' as UN warns of new Gaza conflict
Tue, 26 Mar 2019 15:21:00 +0000
The Israeli prime minister has vowed further action after a night of heavy fire between his forces and Palestinian militants.

Israelis forced to shelter in safe rooms as Gaza strikes intensify
Tue, 26 Mar 2019 20:05:00 +0000
Israeli troops and armoured vehicles lined up in a field close to the border with Gaza.

EU votes to stop moving clocks twice a year
Tue, 26 Mar 2019 14:59:00 +0000
The European Parliament has voted to stop moving clocks forward an hour in spring and back again in the autumn.

Hijacked school bus: Boy hero to become Italian citizen
Tue, 26 Mar 2019 16:11:00 +0000
A 13-year-old boy hailed as a hero for helping saving his classmates when they had been abducted by a bus driver will be granted Italian citizenship.

'I have been truthful': Charges dropped against Empire actor
Tue, 26 Mar 2019 15:11:00 +0000
Charges have been dropped against Empire actor Jussie Smollett, who was accused of lying to police about a racist and homophobic attack.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Why Americans Find Predatory Lending Offensive

"Menis - the author translates as "indignant rage" - It... Read More

How to Improve Your Credit Rating

So you got into debt, had problems but you got... Read More

Harassment of People in Debt by Creditors

HarassmentHarassment of people in debt by creditors or their agents... Read More

Avoiding College Credit Card Traps

Congratulations college freshman! You're about to embark on one of... Read More

Good vs. Bad Credit Debt

Do you know the difference between good and bad credit... Read More

How To Protect Yourself Against Credit Card Fraud

In the high tech world of today, credit card fraud... Read More

Credit Score ? for Scoring the Right Loan

Somebody once said, "There is always a way of knowing... Read More

Credit Report ? How to Improve Your Credit Score

One of the great mysteries of life is how the... Read More

How To Start A Second SEPERATE Credit File!

Your personal credit file is separated from those with the... Read More

Credit Card Is Adding The Silver Lining To Your Pocket

In the new millennium plastic money or credit cards has... Read More

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More

Fair Isaac Corporation Credit or FICO Score

As I am not from the US, I had no... Read More

What Does Your Credit Say About You?

A credit report is more than just a snapshot of... Read More

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you... Read More

4 Steps You Can Take If Your Online Credit Card Application Has Been Refused

Help! I've Been Turned DownYou received an envelope in the... Read More

Secured Credit Cards- Consumer Tips

Whether you have no credit or damaged credit, secured credit... Read More

Credit Cards And Loans - So Many Options - So Little Time

Credit Cards and Loans sounds like just two things, but... Read More

Low Interest Credit Cards: A Thing of the Past?

With interest rates rising, low or zero percent credit cards... Read More

Recognizing the Signs that You Might Need Credit Counseling

Most families in America today have a credit card; some... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

Repair Your Credit - The Right Way!

How to Repair a Bad Credit Rating?The Right Way!If you... Read More

Tired Of Being Broke?...Learn How To Force Banks To Give You Money!

Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More

Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit... Read More

Can You Acquire Good Credit Overnight? You Bet

Your credit file may not reflect all your credit accounts.... Read More