Delray Beach, FL (PRWEB) November 17, 2010
NationalCreditReport.com, a leader in credit report, credit score and credit monitoring services reminds consumers that maintaining their good credit score or fixing their credit score is best achieved by taking an initial step to learn what this important score includes and how the credit scoring system works.
“A credit score is a numerical figure, made up of data from the consumer’s credit report, which represents their financial picture. Essentially, it tells how well a person has paid their bills,” said Samuel S. Ambrose, Vice President of Marketing and Operations for NationalCreditReport.com. “Creditors and lenders review this number to determine whether the consumer is a good financial risk. A good credit score can mean better interest rates or increased lines of credit.”
However, depending on where the consumer gets their credit report and score, their credit scores can differ among providers. A credit score can depend on which of the three major credit bureaus (Experian™, Equifax™ and TransUnion™) the information used to derive the score comes from and what credit scoring model is being used.For example, not all financial institutions report information to all three bureaus or always have the same schedules.
What are the components of a credit score?
- The timeliness of the consumer’s bill payments - late payments will cause a credit score to drop. Similarly, a trend of timely payments will help those fixing their credit scores to see their scores increase over time. This is often the most heavily weighted component in one’s credit score.
- The length of the consumer’s credit history - financial institutions look favorably upon consumers when they’ve had more established credit history, especially those who have maintained a good credit score.
- The consumer’s owed debt - A consumer with more available credit typically has a higher credit score. For this reason, it is often advised that even if a person pays their credit card bills on time, they still should not “max out” their credit cards.
- The consumer’s mix of types of credit - Creditors and lenders prefer to see a variety of types of credit such as loans and credit cards.
- New credit lines and inquires - A lender might recognize a red flag if they see that a consumer’s credit report has recently received a large number of inquires or the person has several new items on their credit report. Thus, this type of information makes one’s credit score drop slightly. However, a credit score is not affected when the consumer checks their own credit report which is key to fixing their credit score if needed.
“We’ve read a great deal recently about the trend of good credit scores dropping because of the economy which makes it even more important for consumers to fix their credit score. They should begin by checking their credit report.”
At the company’s website, http://www.nationalcreditreport.com, consumers can sign-up for a free credit score and a free, seven-day trial of its Triple Safeguard Credit Monitoring™ service. The company also offers consumers the opportunity to purchase their credit report and score for one low price with “no strings attached.” Interested customers can visit http://www.nationalcreditreport.com/nostringsoffer to buy their credit report and score without being enrolled in a credit monitoring service.
Since 2004, NationalCreditReport.com has specialized in providing credit information and credit monitoring services to consumers to help them understand their credit report and score and prevent identity theft. NationalCreditReport.com encourages consumers to check their credit report on a regular basis.