1. Your Credit Report is Different From Credit Scores

Credit scores are calculated using the information reported on your credit reports, which includes details of your credit accounts both open and closed, balance inquiries, payment history, how often you apply for credit, debt collection accounts and different types of public records, among other things.

2. Checking Your Own Credit Report Won’t Affect Your Scores

You can check your own credit scores every single day and it won’t have a negative impact on your credit scores, only hard inquiries (aka when a lender looks at your credit when you apply for a loan or credit card) have a negative impact on your scores, and the effect varies from consumer to consumer.

3. You Are Entitled To A Free Credit Report Each Year

You’re legally entitled to a free copy of your credit report from each of the three major credit reporting agencies: Equifax, Experian and TransUnion

4. Scores Are Calculated By 5 Main Components

Those components include; Payment history 35%, balance ratio 30%, age of accounts 15%, types of accounts 10%, new credit, 10%

5. Your Bad Credit Score Can Potentially Cost You Thousands Over a Lifetime

A low credit score means you’ll most likely pay higher interest rates on things like a mortgage, auto loan, personal loans and revolving credit cards.

6. Credit Reports and Scores Are Not The Same

Your credit scores are generated based on information reporting in your credit report, it’s important to understand the difference between the two. Your credit report shows your history of accounts both opened and closed, your payment history, credit limits, and amounts owed. Your credit scores are generated based on this information.

7. A Fico Score is Different From A Credit Score

The FICO credit score is not the only credit scoring formula available. Each of the three major credit bureaus develop their own scoring models. And there are even multiple FICO score calculations. The key is that if you want access to your FICO credit score, which is mostly used for lending decisions. A credit score which can be obtained from numerous online companies is mainly used for consumers to view what is reporting on their credit reports.

8. Maxing Out Your Credit Cards Can Affect Your Credit Scores

Maxing out your credit cards can lower your scores. The cardinal rule is to keep your credit card balances under 35% of your available credit limits. Maxing out your credit cards can potentially lower your credit score by up to 100 points.

9. Over 45 Million Americans Do Not Have a Credit Score

If you’ve never applied for or used credit, you won’t have a credit history maintained by the three credit bureaus. Without a credit history, you also won’t have a FICO credit score.

10.There Are Multiple Credit Bureaus

Quite frankly there are three credit bureaus; Experian, TransUnion and Equifax. And each of them track and report information we can see on our credit reports. Each credit bureau works independent to one another and even tho they might report that same information, you will most likely see a variation of credit scores between the three and that is particularly due to them utilizing their own scoring modules.

Recommended Blogs

4 Amazing Tips For First Time Home Buyers

Most times, being a first-time homebuyer may seem so overwhelming as a result of all the paperwork involved. Being prepared beforehand can go a long way in making the whole process more bearable and worth your while. Your Financials Have To Be In Order As a potential...

read more

How To Build Wealth Through Real Estate

It’s observed that way more people are renting property now than any other time in the past 50 years. Therefore, this is the best time to be a property owner. The multi-family real estate commercial market is consistently on the rise with no sign of slowing down...

read more

Subscribe to Our Blog for Credit Repair Advice, Information, and Help.

[et_bloom_inline optin_id=”optin_3″]

Start Improving Your Credit Score TODAY!


    Phone Number*


    What type of service are you interested in?*
    Credit RepairDebt NegotiationBuild Credit HistoryStudent Loan AssistanceCredit Education

    Briefly Explain Your Situation*

    What is the best time and method of contacting you?*

    11856 Paramount Blvd Unit A Downey, CA 90241

    Call Now
    Call Now Button