I've been through it myself. After getting divorced, I fell into some undesirable situations which increased my debt and the amount of missed or late payments. This was about 5 years ago when I found out that credit score dropped to 381. How did I know? I was trying to buy a used car and got denied. That was my wake up call and the turn-around point where I knew I had to make some changes in order to improve my situation.
First, I found that I had to learn everything I could about credit and how to raise my credit score. Credit is the amount of trust, product, money, or services that another is willing to offer, in this case, we use the financial institution or the bank. They will loan or lend you money depending on the your risk factor. Your risk factor is based on your credit score, reported by the three major credit bureaus. There are many others. The credit score ranges from 350 to 850; 350 is highest and worst risk to show and 850 is the lowest and best risk for creditors to carry. Your credit score shows your risk factor. If your score is above 780, you have excellent credit, above 740 is very good, and 720 and over is above average. You want your score at or above 720. Anything below that means it is par or subpar. So, how does the bureaus calculate your credit score. Each of the three major bureaus, Equifax, Transunion, and Experian have slightly different algorithms they use, so that is why you will have three scores. However, the data they use is similar and prioritized in order.
This is part of it. Come back and I will write more in future articles. And, it took some time, but find out how I was able to raise my score back up to over 700. Start with getting your report at Annualcreditreport.com. Go to the contact page if you need assistance.
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