Each credit card holder has his credit card scores. These scores are used by creditors and banks for measuring the risk factor involved in doing business with a particular person. If a person has very good scores, he will not face difficulty in getting credit at any time. Creditors will be ready to give him credit because they know that their client has good credit history and their credit will be returned without any delay. On the other hand, a person having very poor scores will be in great trouble. He will not get any credit from any credit card company or bank. They will simply deny doing business with that person because credit scores will give them a negative impression about the person’s abilities. Even if he has learned his lesson and he is ready to follow the rules and deadlines, he will be disappointed most of the times.
Filing bankruptcy is the most dangerous thing for a person’s future life. In this era, everyone needs money to do business and to fulfill any need. We are not living in a jungle where a person can eat by hunting animals trực tiếp bóng đá kèo nhà cái. We have to pay for each and every facility. Besides these charges, we have to pay huge taxes to the government. When a person is being bankrupted, his FICO scores become almost zero and he gets ineligible to take any credit from banks or the credit card companies for many years. He might lose his job and his future career will be in great danger. He will not be able to buy a new house or a new car. In these circumstances, it is very difficult to live a prosperous life. Always try to save yourself from bankruptcy as much as you can.
Debt settlement also affects credit card scores. When a person gets a settlement offer and successfully pays back the money to creditors, his creditor will write on the person’s credit report that he has paid the amount through settlement. He will not write as paid in full. So the above statement will lower your credit card scores. This is the only drawback of the settlement process that can possibly cause problems for you.
Probably no other aspect of our financial lives is so important and yet so misunderstand by so many people as the difference between a credit report, a credit score and a FICO Score.
Your credit report is a narrative, a story, that tells the reader how many credit accounts (credit cards, mortgages, car loans, department store loans, etc.) that you have opened and closed over the last seven years, the maximum credit limit you had on each of those accounts, the percentage of utilization on each of those accounts, and the number of late payments, if any, on each of those accounts. Credit reports are coded in abbreviations so they are difficult to read and understand by the untrained eye.
Credit reporting bureaus collect all the information about you that is contained in your credit report. There are three major credit-reporting bureaus in the USA – Equifax, Experian, and TransUnion. There are also dozens of regional and specialized credit reporting bureaus that have collected financial information on you even if you have never heard of them.
Your existing creditors voluntarily supply some of this information to the credit bureaus. For example, if you are more than 30 days late on your car loan the finance company will report that late payment to the bureau. The bureaus also access public records for information about civil judgments against you and bankruptcy filings. It is only very seldom, if ever at all, that you would become aware of this constant flow of information about your financial life.
A credit score is a number, usually between 300 and 850, that rates the creditworthiness of the information that is contained in a credit report at one particular moment in time. The score number is calculated by a complex mathematical formula that is a closely guarded secret held by the credit reporting bureau that generates the credit score. Each credit bureau has its own proprietary mathematical formula.
Nobody other than the company that owns the credit score formula really knows how it works. People can make good guesses but nobody outside the company can know for sure exactly how your credit score is calculated.