Bad Credit Resource Center

Fix Bad Credit - Start with Your Credit Score

In today’s world, it seems that almost any topic is open for debate. While I was gathering facts for this post, I was very surprised to find some of the issues I thought were settled are actually still being openly discussed.

If you base what you do on inaccurate information, you might be unpleasantly surprised by the consequences. Make sure you get the whole credit score story from informed sources.

There are many misconceptions about credit scores out there.  There are customers who believe that they don’t have a credit score and many customers who think that their credit scores don’t affect them in their financial matters.  These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of renting property. 

The reality is, if you have a bank account and bills, then you have a credit score, and your credit score matters a lot more than you might think.  Your credit score may be called many things, including a credit risk rating, a FICO score, a FICO rating, a credit rating, or a credit risk score. All these terms refer to the same thing: a three-digit number that lets lenders and other creditors get an idea of how likely you are to repay your bills.

Every time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of rental property, your credit score is likely checked. 

In fact, your credit score can be checked by anyone with a legitimate business need to do so. Your credit score is based on your past financial responsibilities and past payments and credit, and it provides potential lenders and other creditors with a quick snapshot of your current financial state and past repayment habits. 

In other words, your credit score lets lenders know quickly how much of a credit risk you are.  Based on this credit score, lenders decide whether to trust you financially - and give you better rates when you apply for a loan.  Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time.  Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money.

The problem with credit scores is that there is quite a bit of misinformation circulated about, particularly through some less than scrupulous companies who claim they can help you improve your credit report and credit score - for a cost, of course. 

From ads and suspect claims, customers sometimes get the idea that in order to boost their credit score, they have to pay money to a company or leave bad credit repair in the hands of so-called “experts.”  Well, it’s not true.  In fact, it is possible to pay down debts and boost your credit on your own, with no expensive help at all.  

Don’t limit yourself by refusing to learn the details about your credit score. The more you know, the easier it will be to focus on what’s important.

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