Understanding The State Of Your Credit Score
There are approximately 70.2% of American consumers have at least one credit card, and the average person has four credit cards with statistics proving that an estimated 55% of these consumers have debts on them. What’s the reason for all these cards? Well, there are various reasons why they choose to open all these accounts, and these reasons usually circulate around shopping, utility bills, loans, or mortgages depending on what type of credit card they’ve signed up for.
Driven by carelessness and ignorance, oftentimes we overuse these cards and damage our credit scores without us even knowing. Only at that time when you expect to get a smooth loan transaction you find yourself caught up in a tight situation as brokers tell you “Your credit score is too low sir; we can’t provide you with the loan you asked for.” Doesn’t that sound frustrating? We think so too.
Banks, credit unions, and other financial institutions have records of your credit report and everything you do with the card you have they’ll be able to track in seconds, which is why you need to use these cards wisely and give constant attention to everything that concerns your credit score. Whether it’s a late payment or bad debt, this takes a toll on your score and it’ll definitely affect plenty of things.
You might be asking how do they know all this? Well, financial institutions will generate a three-digit score known as “credit score” and use this information to predict how likely you are to repay your debts.
Now, by basing on your credit score, financial institutions will usually think that the higher the credit score means the higher the probability of the debt being paid back in full which is why they’ll grant clients with high credit scores for loans and such. The credit scores vary from a low of about 300 to a high of 850 or 900 depending on the score-generating organization. Now that seems understandable, isn’t it?
Here’s a question for you. Did you know that mistakes aren’t limited to clients only? If not, then this will get interesting. You see, mistakes occur from time to time by the credit bureaus due to the number of clients they have to cater which makes them vulnerable to inputting inaccurate information on our credit reports, and by law under the Fair Credit Reporting Act, consumers have the very right to dispute this inaccurate information and get their credit score back in place.
With even this basic information, you can start reviewing your credit report and from there look for reasons to dispute and challenge the inaccurate information you find. You can even seek professional help by connecting with our consultants.
When it comes to our credit reports, no one really teaches us to read it, and often times it gets confusing with all the numbers and code the credit monitoring companies places on our credit report, causing us to give up on disputing the inaccurate information and just paying it forward without challenging it. The good news is we have the right program for you.
Uptrend Credit Counseling is a premiere credit counseling organization that guides and provides you with instructions in achieving financial freedom. When severe financial problems get in your way and keep you from getting other personal and economic benefits, Uptrend consultants always tries their best to guide and ensure that you get back on track.
We also offer credit improvement programs, which will be essential to increasing credit score by helping you remove incorrect information that damages your credit and restore your credit profile and recommend products that will help you along the way.