Discovery Where You Stand

debt stressThe first thing you have to do when it comes to your financial situation is discover exactly where you stand. The best way to do this is to uncover your financial situation and to obtain a copy of your credit report. When it comes to your credit score you have to take note that there are a number of credit agencies that will hold a file on you. Your credit score will be counted slightly differently by the different agencies, although the same things things will be taken into consideration. There are bad credit personal loans for people with bad credit that can help your credit score, too.

The agencies will focus on a number of key areas including: credit limit, number of open accounts, age of accounts, inquiries run, and any defaults or balances sent to collections. The different areas are weighted differently by the companies. The score will be between 0-800 (with a few variations dependent on agency. The first step to getting your credit report is checking with your credit card agency. Most lenders will provide you with a monthly report on your credit score and notify you of any changes that may have happened since the last report. Keeping a keen eye on your credit report is as important as understanding it, fraudulent activity can be seriously damaging to credit.

Even if you manage to obtain a copy of your credit, make sure that it is from one of the major reporting agencies. Some of the smaller lenders will offer you free credit score from the smaller agencies, which are only good at giving you an indication, not an accurate level of your credit score. There are only two or three companies on the market that offer you a free credit score from one of the major lenders. Understanding which lenders use which credit score is huge.

fico score Most companies use the FICO score system, so you are always safest getting a copy of that score. You can obtain one for free, or sign up for a dollar a month subscription. You can obtain a free credit report by logging in online, Federal law mandates that every person should be allowed to see their credit score once a year for free or any time a lender conducts a background check on someone. Use this to your advantage. Whichever way you obtain a copy of your credit score, make sure that you get the latest version as it.