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:

Hurricane Willa threatens Mexico tourist resorts
Mon, 22 Oct 2018 17:23:00 +0100
Tourist resorts on Mexico's Pacific coast are bracing for 160mph winds as Hurricane Willa barrels towards them.

Saudi 'body double disguised himself as Khashoggi'
Mon, 22 Oct 2018 07:35:00 +0100
One of the "hit squad" said to be involved in Jamal Khashoggi's death apparently changed into the journalist's clothes as part of a decoy attempt.

World leaders demand answers over 'monstrous' journalist killing
Mon, 22 Oct 2018 18:37:00 +0100
There has been fresh condemnation of Saudi Arabia over the "horrific murder" of a dissident journalist, as the foreign secretary said Britain does not think the Gulf kingdom's version of events is "credible".

Ronaldo insists he is an 'example' amid rape claim
Mon, 22 Oct 2018 21:35:00 +0100
Cristiano Ronaldo has insisted he is an example on and off the pitch - with the footballer expressing confidence that he will be cleared of an allegation of rape.

Norwegian saboteur who stopped Nazi nuclear plan dies
Mon, 22 Oct 2018 18:10:00 +0100
The Norwegian saboteur credited with stopping the Nazis from acquiring nuclear weapons has died aged 99.



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.

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

Taking Control of Your Credit History

Your credit history is important; in fact, in this day... Read More

Are 0% Credit Cards Reaching Their End?

Are Credit Card companies starting to feel the pinch? We... Read More

Credit Card Balance Transfers Explained

What is a balance transfer ? A balance transfer can... Read More

What Is the Fair Credit Reporting Act and What You Should Know About It

The Fair Credit Reporting Act (FCRA) and the recent update... Read More

Your Credit Rating and How To Check It

There is a lot of confusion surrounding UK credit ratings,... Read More

Everything You Always Wanted To Know About Your Credit Report

Your credit report is a very powerful report that essential... Read More

Credit Report Disaster Through Mistaken Identity

I've got some very important info I want you to... Read More

Defeating Credit Card Debt With Self Control

Credit card debt is a major social problem in some... Read More

Why Does FACTA Matter to Me?

FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More

Credit Counseling Basics

Credit counseling is an option you might want to consider... 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

Using Credit Cards Wisely

"I think money was stolen from my card" or "I... Read More

10 Step Credit Repair Guide

The process of clearing credit can be laborious and frustrating,... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Special Credit Information for Married Couples

If you are married, establish separate credit accounts.Try to finance... Read More

Debit Card vs. Credit Card, What Are The Differences ?

Ah, the "good old days". If you are a baby... Read More

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn't all that long ago that lenders blatantly discriminated... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More

Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card,... Read More

5 Steps You Can Take to Get Paid!

There are always some companies that have past due invoices... Read More

What Can Happen to You as a Victim of Identity Theft, Facts & Figure

Is identity theft really that serious? Thousands of people every... Read More