Major Factor In Calculating A Credit Score
Posted by Michael Snyder on March 7th, 2019
The accuracy of your credit report can significantly affect your financial future and can determine if you are approved for future credit. Proper and savvy use of credit as a financial tool is crucial.
The US Federal Trade Commission (FTC) reports that approximately 19% of all credit reports have some sort of error. About 25% of those errors were substantial enough to affect the overall credit score. Disputes can be filed, and corrections made, but an FTC study also indicates that approximately 70% of consumers do not fix all errors.
Errors can originate with any of the participants of the reporting process, either creditors, the bureaus themselves, or consumers. The most common errors involve identity and credit lines erroneously listed under an identity number. Identity errors can be a misspelling of names or an inaccurate address. Sometimes that happens due to poor handwriting or data entry. Another identity error can be caused by the inaccurate use of a maiden name after the name has been legally changed. Accounts that have been closed and still appear as open or past due or accounts that misstate credit amounts have the greatest impact on an overall score. Credit utilization, the amount of credit used compared to total amount of credit available, is a major factor in calculating a credit score.
Disputing credit report errors can become a tangled and time-consuming battle. It's smart to be proactive. There are some simple actions that savvy consumers can take to avoid errors and save themselves a headache.
Pay on Time
It seems easy. Pay your bills on time, as specified by the due date. It is the best and simplest way to efficiently manage your credit health.
Manage Your Use of Credit
This is referred to as Credit Utilization, and this calculation is approximately 30% of a credit score, the second highest factor. Consumers should know the status of their accounts and periodically confirm credit limits on open accounts.
Review Credit Reports from all Three Credit Bureaus
This will confirm the accuracy of identifying information. This action also confirms the status of all accounts, open or closed, as well as credit limits and utilization. This listing would warn the observer if there are accounts misreported either by unintentional error or identity theft. A common error found during review is old accounts reported as still active. In the event that credit is denied, the consumer is entitled to access their credit report at no charge.
Be Proactive Against Identity Theft
Proactive actions include collecting mail promptly and discarding it effectively, which might include shredding financial items. Stop junk mail by being removed from mailing lists. Consumers can register on the National Do Not Mail List to stop unsolicited mail.
Identity theft is a growing concern and a valid concern. If a consumer believes their information has been compromised, they can file a fraud alert with the credit reporting bureaus. If a consumer has evidence of identity theft, a police report should be filed to document the incidence. Contacting the credit bureaus with that police department allows the consumer to place a credit freeze at no charge. No credit account can be opened under that social security number while that freeze is in place.
About the Author:
My name is Michael Snyder a Financial Adviser at Zinu Credit Repair. It is a legitimate credit repair firms in US. That offers a free credit repair consultation, which includes a complete review of your FREE credit report summary and score. If you are looking for the best credit repair company in your area. Reach me out.
About the AuthorMichael Snyder
Joined: February 14th, 2019
Articles Posted: 9
The ONLY Vital Credit Card
Earn 5% Cash Back on all of your purchases plus additional cashback for sharing the offer with your friends and family! This is the ONLY credit card you need! Competitive APR's, No annual fee, Elegant Metal Card Design!
HOTBIT Crypto Exchange
Hotbit is one of the professional digital asset exchange platforms that provide trading services among major digital currencies like Bitcoin, Litecoin and Ethereum for users from all over the world.
Fold - Earn free bitcoin when you shop
Earn bitcoin cashback rewards when you shop at top retailers, including Amazon, Uber, Starbucks, Chipotle, and more. Download the app, sync your payment method and start earning bitcoin today!
CryptoTab Browser - Easy way for Bitcoin Mining | CryptoTab Browser
CryptoTab Browser is the world's first web browser with built-in mining features. Familiar Chrome user interface is perfectly combined with extremely fast mining speed. Mine and browse at the same time!
FREE Android & iOS App - Get Paid to Explore!
The COIN app is a revolutionary new app that pays you to explore the world! Download it today and start earning while you are on the go!
Share Your Internet Connection & Get Paid
HoneyGain is compatible for desktop computers, Android and iOS and pays you when you share your internet connection!