New York, NY (PRWEB) February 03, 2014
National Debt Relief published an article on January 30 titled “Consumers Are In Need Of Credit Score Education” to provide readers with the basic knowledge about the subject. According to the article, the credit score tells a lot about the financial behavior of a consumer - especially when it comes to debt. The website has written numerous articles about this topic because it appears to hold a huge weight in defining the creditworthiness of a consumer.
The article noted how some consumers are in dire need of credit score education and it prompted them to choose 5 of the most basic questions about it. The article answered the questions one by one to give their readers the fundamental facts about this credit measurement.
1. What is a credit score? National Debt Relief defined it as a measurement of the creditworthiness of a consumer. This score is dependent on the information found in the credit report of the consumer. This credit report is taken from the three major credit bureaus. They are Equifax, TransUnion and Experian. The range of this score varies - depending on the company providing it.
2. How is the credit score computed? The article said that the formula will vary depending on the company that is analyzing it. But all of them consider 5 different factors: payment history, total debt, age of credit accounts or credit history, new account applications and the account type. Each of these will affect the score in varying percentages. For the FICO Score, 35% will be on the payment history, 30% on the debt amount, 15% on the credit history, and 10% for each of the type of debt and new accounts.
3. Who views credit scores? Most people think that lenders and credit card companies are the only ones who view these scores. The article mentioned that even employers, utility companies, insurance agencies, employers and landlords view this.
4. How are credit scores checked? The article advised that consumers can look at their scores by getting a free copy from the Annual Credit Report website and looking for a credit score calculator online. There are sites that offer a tool that will compute it without any charges.
5. What happens with a bad credit score? The last question is about the effects of a bad credit score. If the consumer has one, the article mentioned that it depends on who will view the score. Basically, a bad score indicates that the consumer is bad with credit management. For lenders, that could mean a disapproval of the loan. For employers, that could mean losing the job. For utility bills, that means the consumer will be asked for a deposit.
National Debt Relief encouraged consumers to learn more about credit scores so they can fully understand its effects and most especially, how to keep it high. To read the whole article, click on this link: http://www.nationaldebtrelief.com/consumers-need-credit-score-education/.
National Debt Relief continues to help thousands of consumers get out of debt through debt settlement. They have an A rating with the Better Business Bureau and are members of the American Fair Credit Council (AFCC) and International Association of Professional Debt Arbitrators (IAPDA). Give them a call through 888-703-4948 to find out more about getting debt relief.