Credit Score For Dummies

So, you have finally decided to get serious about credit repair. You work hard to pay down debt, get your credit utilization ratio in order, and review a copy of your credit report. All is well, right? Perhaps not. Unless you are reviewing reports from each credit bureau—TransUnion, Experian, and Equifax—you may not be getting the whole story. Each company has their own methods of scoring—a fact that could help or hurt you. Why might your credit scores be different? Read on to learn more.

Reason #1: Different credit scoring models. On the path to credit repair, there are a few basic rules for a healthier score:

• Lower debt
• A long (and steady) credit history
• Timely bill payments
• Experience with new credit
• Credit diversity

Outside of these rules lies the push and pull of scoring models. Each

Read more…

No Comments yet »

*Welcome to our weekly credit lessons to brush up on your credit know-how!*

In last week’s post, we brushed up on the basics about credit score differences between credit bureaus and even within the same credit bureau. Now, let’s discuss the significance that three digit number might have to lenders looking at your credit.

Let’s take a look at your credit range, here based on TransUnion’s range used by Credit Karma, and how it influences your chance to access credit.

Poor Credit Score: 300 to low 500s

Your credit is in bad shape due to a derogatory remark on your credit, like a bankruptcy or foreclosure, or some poor credit choices in the past. Typical

Read more…

No Comments yet »

*Welcome to our weekly credit lessons to brush up on your credit know-how!*

One of the biggest misconceptions amongst consumers is that there is one correct credit score. In fact, there are dozens of credit score models, and there are natural differences between your credit scores.

Not only does each credit bureau report a different credit score model, but even within the same bureau several credit score models exist, such as Equifax’s BEACON score and ScorePower.

With so many credit score models out there, the score that your mortgage lender uses could differ from that which your credit card issuer and your auto loan provider uses. T

Read more…

No Comments yet »

A recent study by FICO shows exactly what various credit faux pas cost you in terms of credit scoring, and how long it takes to recover from a mis-step. The bad news is that the effects of late mortgage payments are substantial. But for people with bad credit, mortgage lenders won’t be coming down on you quite as hard as they would people with good credit. I’ll explain.

Mortgage late payments hit your credit score hard!

The effect of a mortgage late payment on someone with bad credit is less because they simply have less to lose. And they recover faster because they simply have less far to go to get back to where they were before.

Read more…

No Comments yet »

*Welcome to our weekly credit lessons to brush up on your credit know-how!*

While scrolling through the Credit Karma blog, I stumbled upon a credit score quiz. I’m happy to say that I only missed three out of ten questions, but I also realized that I, along with many other consumers, am still a credit newbie. So I’m going to start by brushing up on the basics.

Anatomy of a Credit Score

Your credit score is a three-digit number that has an effect on many areas of your financial life. It’s used by lenders to determine your creditworthiness, or the likelihood that you’ll pay your debts in a timely manner. Wheneve

Read more…

No Comments yet »

**Welcome to Do Today Thursdays here at Credit Karma Bootcamp: Your 31-Day Credit Health Plan. Every week, we’ll cover the 3 most useful moves to do now for your specific credit score range.**

The average Joe and Jane with excellent credit has a sky-high Credit Karma credit score of 720 or higher. Lenders and issuers treat these consumers as the cream of the crop—premium rates, access to best financing options and offers, approval on almost all credit cards, and extra leverage when negotiating terms.

Joe and Jane are the best kind of customers, so lenders and issuers will go extra lengths to get and keep their business. An

Read more…

No Comments yet »