Credit Score Facts – 7 Things You most likely Didn’t Know Affected Your Credit Score
1. All Credit Reports aren’t Created Equal
This means that the interest rate of yours is fairly determined by whichever credit report your lender uses. This may not sound important however, a number of points might mean the big difference between being classified out of the no credit risk class to the a little credit risk group or perhaps the default credit risk class.
2. Where you Got Your Credit Card Could affect Your Credit Score
In the past, the credit score of yours was usually calculated by rating credit cards issued through national banks higher than individuals mentioned via hometown banks or credit unions. Although this calculation is rarely used anymore, some lenders continue to calculate your score this manner. Having a credit card issued by way of a a neighborhood bank or credit union could be hurting your credit score in case you wind up with a lender using this outdated credit score calculation.
3. The Credit Report You buy May Never be The One The Lender of yours Sees
Whenever you purchase a credit report, the score you notice is dependent on a certain formula by that reporting agency. When a lender examines your score, they could be utilizing a unique calculation and also likely a variety of different scores based on calculations related to specific chances (auto loan score, bankcard score, mortgage score, etc.). So don’t be shocked if the lender replies to your loan request differently than you envisioned.
4. There might be Errors on Your Report
It is estimated that up to a quarter of consumers are affected by errors all over their credit reports each year. Picture paying a greater interest rate or even not getting approved at all due to a mistake! To stay away from this, be sure to check out the credit report of yours at least one time a year loans for bad credit direct deposit (great site) mistakes.