Individuals who are in the market to buy a new home, car or any other type of major purchase need to know what their credit score is prior to applying for the financing. This is because credit scores play a key role in determining the type of loans and interest rates borrowers are eligible to receive. Those with good credit can usually lock in better rates and terms, however bad credit borrowers are often limited when it comes to obtaining competitive interest rates and loan terms. So the question is; what is a good credit score? In order to answer this question, it’s important to understand that there are three primary credit bureaus that provide individuals with credit scores. They include Experian, TransUnion, and Equifax. Of these, Equifax is the credit bureau which is considered to be the most used and trusted due to its initial presence in the market. Individuals are not randomly scored with good or bad credit. In fact, credit scores are specifically based on several different factors, including the following:1. Type of creditAlthough having a good mix of credit types is considered to be great, too many open accounts is usually “frowned upon” by lenders.2. Length of time individuals have had creditThe specific amount of time individuals have been using credit also plays a role in determining credit scores.3. New creditWhen it comes to applying for additional credit, an individual’s score usually drops when too many credit inquiries are made over a short period of time. 4. Payment historyA significant percentage of a person’s credit score is based upon their payment history. While a few late payments are generally okay, more one too many late payments can get borrowers in trouble.5. Outstanding balancesWhen individuals reach, or are close to reaching their credit limits, their score tends to take an automatic dive. This is why it’s important for borrowers to pay their credit cards down immediately when approaching the credit limit. Most creditors use the Fair Isaac credit-scoring model, commonly known as FICO to evaluate credit scores for individuals. The following is a breakdown of their scoring methods, which can also help borrowers answer the question, what is a good credit score?

700 and higher: Excellent credit 680-699: Good credit 620-679: Satisfactory credit 580-619: Not exactly bad credit, but extremely close 500-580: Very low credit, expect to pay significantly higher interest rates for loans 400 and below: Bad credit

For individuals who fall in the lower category of the FICO credit-scoring model, all hope is not lost, as there are several ways to improve bad credit. In addition to making minimum monthly payments on time, credit card holders should contact their creditors immediately if payments are missed unintentionally. It’s also wise for individuals to avoid opening and applying for new accounts, especially if they are not considered necessary. Furthermore, it’s always a good idea for individuals to use credit sensibly, which means abstaining from frivolous or unnecessary purchases on their credit cards. Individuals should make it a habit to check their credit card statements carefully every month for any discrepancies, and pay outstanding balances in full whenever possible. Finally, borrowers should take advantage of the free credit report policy which the U.S. legislation has mandated once a year, and review their status for accuracy.There are also many types of credit services that can help individuals receive debt relief, and improve their credit score. For example, those with bad credit can often turn to different credit counseling agencies, who offer assistance with a range of credit services, including debt management plans. These plans usually allow credit counselors to consolidate a debtor’s loans, which in turn enables them to make one monthly payment to the credit counseling company, versus multiple payments to several lenders. Because this makes it easier for debtors to manage their finances, they can continue making payments on time and slowly begin to rebuild their credit.

To determine whether a credit applicant is a good or bad credit risk, lenders rely on the data produced by credit reporting agencies, alternatively referred to as credit bureaus. These boast voluminous databases of consumer credit records on millions of Americans and offer lending institutions an in-depth look at a prospective borrower’s credit history. The three leading credit reporting agencies- TransUnion, Experian, and Equifax- as well as numerous smaller, local credit bureaus furnish risk-management credit services and credit reports to their clientele. Credit bureaus gather information about consumers and their credit histories from public records such as court records (i.e. foreclosure, bankruptcy), creditors such as mortgage companies, credit unions, banks, and credit card companies, as well as retailers and other reliable sources.

Thousands of creditors regularly supply information about their customers’ credit usage and payment history to each of the credit bureaus, which then incorporate it into the credit report. Creditor contacts, inquiries, account histories, public records, and consumer data are utilized by credit reporting agencies to create credit reports. These records typically features information such as 1) whether borrowers have paid their bills in a timely manner, 2) how long their accounts have been open, 3) what forms of credit they use, 4) how much credit they have used, 5) how borrowers pay their bills, and 6) whether they have filed for bankruptcy or been sued or arrested.

Credit reporting agencies determine a borrower’s credit rating on the basis of information contained in the credit report. Most credit bureaus employ a variation of what is known as the FICO score, which is calculated by considering factors such as the applicant’s payment history, new credit, length of his or her credit history, and balance due. To improve and simplify the credit procedure for lenders and consumers, the big three recently introduced a scoring system called the Vantage score. The new streamlined methodology aims at ensuring objectivity, predictability, and consistency in credit scoring among the three credit reporting agencies. The sole variance in the credit score depends on the information in the credit report.

After compiling information about consumers and their credit history, the agencies place the reports at the disposal of employers as permitted by law, insurance companies, landlords, credit card companies, banks, and other prospective and current lenders. Credit bureaus disclose credit scores and credit reports when a hard or soft inquiry or request is made. A soft inquiry is one made by employers or consumers. A hard inquiry, on the other hand, is set in motion by rental applications to landlords or is put forward by creditors such as mortgage lenders and credit card companies. Whenever a prospective borrower applies for credit, the lending institution contacts one or several of the credit reporting agencies for purposes of verifying applicants’ credit score and report. To aid them in deciding whether or not to extend credit and at which interest rate, lenders purchase credit reports on their clients and applicants from the credit bureaus and review the credit history reported by the latter.

The top three credit reporting agencies are independent of one another and utilize distinct approaches when collecting and managing information. Credit reports from TransUnion, Experian, and Equifax generally differ in content, with one study showing as much as a 40-point disparity between them. Consequently, it is recommended that consumers access information and their credit report from each of the major credit bureaus in order to obtain a comprehensive overview of their credit history. Pursuant to the Fair Credit Reporting Act, one free credit report from each of the major credit bureaus must be made available once every 12 months to consumers requesting one. The Act also requires credit reporting agencies to investigate within 30 days any items brought to their attention by consumers. If the credit report is incomplete or inaccurate, the credit bureau must fill in the gaps or correct it, respectively. Upon completing the investigation, the credit reporting agency must furnish the written results to the consumer and offer him or her a free copy of the report if an amendment is made. At the consumer’s request, it is required to notify recipients of the report within the last six months of any corrections made to the record.

Some credit bureaus also provide credit monitoring, a paid service that prevents identity theft. Consumers are informed of any changes or inquiries to their credit report, and suspicious activity is reported.

While the United States may have one of the largest economies in the world, the country has its fair share of problems. In fact, one of the major challenges facing the U.S. today is the overwhelming amount of national debt. The country’s national debt is made up of direct liabilities or money which is owed by the government. There are different categories which are used to refer to the national debt, including public debt, debt held by the public and gross federal debt. These include public debt securities issued by the Treasury Department, such as bills, notes and different types of bonds. America’s national debt has also accumulated as a result of money borrowed from both internal and external sources. Money which the government owes to lenders within the country refers to internal debt, while money owed to foreign lenders refers to external debt. Because the U.S. government represents the people, taxpayers are also held responsible for the country’s national debt dilemma to a certain degree. Therefore, a portion of the tax money paid by citizens each year goes directly towards paying off the national debt, which is mostly used to cover the interest. Over the last few years alone, the U.S.’s national debt amount has grown significantly and is now over $9 billion.When it comes to understanding the history of national debt, it’s important to be aware of how governments borrow money in order to keep their countries running. One of the ways in which they obtain the necessary funds is by issuing securities, which includes government bonds and bills. Similar to the rules and regulations that govern traditional lending for individuals, countries who possess good credit can easily secure money from financial lending institutions. This is true within their countries, as well as outside or foreign sources. The credit worthiness is based upon the country’s ability to pay back what is borrowed, the economic status, and other forms of revenues. Countries with a lower credit rating are usually limited when it comes to the amount of money they can borrow. Additionally, they are also subject to adhere to more stringent laws.America’s history of national debt can be greatly attributed to the country’s borrowing and spending habits. Over the years, many countries, including China have loaned the U.S. billions of dollars to cover various expenses. However, just like credit card debt, the interest continues to accumulate as the amount being borrowed increases. Consequently, the U.S. owes a significant amount of money in interest alone to other countries which have been used as lending resources, as part of the entire national debt.With the country suffering financially and ongoing discussions about the economy heading towards a recession, one has to question, what is the cause for the national debt? There are actually many contributing factors, as well as several probable causes which have reinforced the U.S.’s national debt situation. Many believe that the fault lies in overspending which administrations and congresses have indulged in with a variety projects, programs, and defense expenditures. America also spends billions of dollars for a range of public uses, which all contribute to the national debt. These include the following:

Department of Agriculture Department of Defense Department of Education Department of Vets Affairs Health and Human Services Social Security Administration Treasury Department

Although the United States’ national debt problem is currently at an all time high, there is still hope for debt reduction. However, in order for this happen, the country needs to change its spending practices. With new presidential representation just around the corner, perhaps Americans can begin to hope for a better economy in the upcoming years.

In the United States, the ability for individuals to make large purchases, obtain loans or rent out property is all dependent upon their credit worthiness. The truth is without a decent credit rating, life can become extremely difficult. This is because financial lending institutions perform a thorough credit check before lending out any money. Therefore, these institutions are less likely to offer their services to those with bad credit. Prior to applying for any type of financing, borrowers need to know exactly what their credit score is, and whether it’s accurate. This information can be determined through their annual credit report.

Many people may still be unaware that according to U.S. legislation, citizens have the legal right to access free credit reports once a year. In addition to finding out their credit score, the free annual credit report also enables individuals to keep track of their personal information in an effort to prevent the ongoing threat of identity theft. There are several ways for individuals to obtain their free credit report, however one of the quickest and most convenient methods is via the Internet on FreeCreditReport.com. Individuals can easily access their free annual credit report on this web site by typing in some personal information, including 1) full name, 2) home address, 3) social security number, 4) date of birth, 5) phone number, and 6) email address.

The details of a credit report featured on FreeCrediReport.com are courtesy of the credit reporting agency, Experian. However, the web site allows individuals to order the reports from two other credit bureaus as well: Equifax and TransUnion. The specific type of information that can be obtained from free credit reports includes the following:

Personal information Credit summary Public records Credit inquiries Account history Credit score

Along with the fact that it’s absolutely free every 12 months, there are also other reasons and advantages for individuals to obtain a copy of their annual credit report. Some of the most important include knowing their credit status, early fraud detection, and finding errors in the credit report. Rather than continuing to be uninformed and wondering why they are constantly rejected for credit cards or loans, it’s better for people to be aware of their credit status and FICO score. A free credit report also enables individuals to detect possible fraud. In the case of fraudulent activity, such as identify theft, credit reporting agencies and law enforcement should be notified immediately.

The likelihood of finding errors and omissions in a credit report is significantly high, which is why it’s important for individuals to go through and search for any inaccuracies that may exist. Minor mistakes can usually be fixed by writing a simple letter to the credit bureaus; however, more complex situations can often take longer to clarify. Regardless of the type of oversights discovered in a free credit report, it’s extremely crucial for individuals to make copies of everything that may be helpful in proving the error.

When contacting the credit reporting agency with a written claim, also known as a dispute letter, individuals should include the following information: their name, address, a narrative that clearly explains the problems found in the report and a request to remove the faulty items. In order to ensure the information is received, it’s best for individuals to send their claim by certified mail and request a return receipt. Credit bureaus typically take a minimum of 30 days to investigate claims. However, depending on how intricate the errors are, the entire process could take up to three months or longer to complete. Obtaining your free annual credit report is the first step to ensuring accuracy and preventing identity theft.

When it comes to obtaining money for personal needs, such as student loans, home loans, and other kinds of financial services, banks are a popular type of lending institution that many borrowers turn to for help. However, many people are beginning to discover that banks are not the only option available in today’s lending market. Credit unions have also begun to gain popularity among the masses, and are now considered a comparable alternative. More specifically, credit unions are not-for-profit cooperative organizations that cater to their members by offering a variety of financial products and services. The members of a credit union are usually comprised of individuals who reside in the same community or work in the same place. Credit unions also boast a plethora of benefits, which is why many individuals find them so appealing.

In addition to basic low-cost services, including checking and savings accounts, credit unions have broadened the scope of financial offerings they provide to customers. For example, individuals can typically obtain personal loans, car loans and mortgage loans from a credit union. The interest rates charged by credit unions are generally lower than those offered by different commercial lenders. Their approval requirements are also less stringent, which makes it easier for borrowers to satisfy them.

Along with financing various loans, credit unions offer other types of financial services as well. Key services provided by credit unions typically include: 1) stock brokerage services, 2) mutual funds, 3) personal financial planning, 4) individual retirement accounts, 5) insurance coverage, 6) automated teller machines, which are usually for a minimum fee or at no cost for access, 7) debit cards, which can be used at numerous locations, and 8) credit cards. When customers obtain credit cards from credit unions, they are able to receive the added advantages of discounted fees and competitive interest rates.

With over two million members, the Navy federal credit union is one of the largest credit unions in the United States. Regulated by the National Credit Union Administration, this federal credit union has been helping citizens for over 50 years. The Navy federal credit union offers financial products and services similar to banks and traditional credit unions, including loans, checking/savings accounts, consumer credit cards, free online account management, low rates etc. Membership of the Navy federal credit union is restricted to all Navy personnel, which include the following:

Active duty marine Active duty navy Military members Reservists Civilian employees Retirees Contractors assigned by the government Family members of federal credit union members

In conjunction with the many benefits mentioned above, every member of a credit union also has a voice when it comes to governance. Many credit unions typically hold elections and meetings every year where members are able to select candidates for the Board of Directors. This means that every member has a direct say when it comes to setting the credit union policies. Additionally, members are entitled to vote on credit union business, and also have the option to serve on their credit union’s volunteer board.

With an abundance of financial products and services to choose from, lower rates and fees, easy membership and a safe place to save and grow your money, it’s no surprise that more and more people are turning to credit unions for financial assistance.