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Credit Reporting Scores

Posted by Lorea Thomson on Friday, June 30th, 2017 at 9:14pm.

A credit report is a detailed report of an individual's credit history. Credit bureaus collect information and create credit reports based on that information, and lenders use the reports along with other details to determine loan applicants' credit worthiness. In the United States, there are three major credit reporting bureaus: Equifax, Experian and TransUnion. Each of these reporting companies collects information about consumers' personal details and their bill-paying habits to create a unique credit report; although most of the information is similar, there are often slight differences between the three reports. 

Do you realize the importance of a good credit score when it comes to the home buying process? There's a lot of distortion and misunderstanding surrounding this subject. It is not as difficult as some people make it out to be. Responsible monetary activity results in a respectable credit score and the contrary is true for reckless financial behavior. Complete control of your credit score lies solely on your own shoulders.

Your credit score does not come out of thin air. Good financial behavior will help you earn a good score So don't blame the credit-reporting bureaus for your score. Too secure a mortgage if buying a new home you will need good credit scores.

In the United States, there are three major credit reporting bureaus: Equifax, Experian and TransUnion. Each of these reporting companies collects information about consumers' personal details and their bill-paying habits to create a unique credit report; although most of the information is similar, there are often slight differences between the three reports.

Your FICO score is the one used by most Palm Beach County lenders. The FICO score is the most important.  Accountable financial conduct will help you earn a good score.

Credit Score Chart & Range

760-850 Excellent

700-759 Very Good

660-699 Good

620-659 Fair

580-619 Poor

500-579 Very Poor

 

In 1970, the law governing the activities of the three major credit reporting agencies, known as the Fair Credit Reporting Act or FCRA, was passed in an effort to provide a specific set of rights for consumers. The FCRA is focused on safeguarding the information gathered, maintained, and shared by the credit reporting agencies. The most prominent right you have as a consumer protected under the FCRA is your ability to access your credit report easily. Guidelines in the FCRA state that the credit reporting agencies must provide your credit file upon your request no less than once per year.  This site allows you to access your credit report at no cost each year, but it is your responsibility to request it.

Having a good credit score will also save you a lot of money. The lower your credit score is, the higher your interest rate will be for borrowing money.  

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