Credit Score Report by MyReviewsNow - By: chickie99

About Credit Score Reports

A credit score reports is typically obtained from the top three credit rating agencies: Equifax, Experian and TransUnion. Credit score reports will list the consumer’s credit rating score, as well as, current revolving accounts, previous revolving accounts, current loans, previous loans, time the credit limit has been established and credit payment history. Businesses use a credit score report to determine the consumer’s likelihood to repay the loan and the debt-to-income ratio.

Credit score reports describe the consumer’s ability to pay with a number between 350 and 850. This number is often referred to as a credit rating score or FICO Score. FICO or Fair Issacs Corporation is the company that creates software to calculate credit scores. Creditors would potentially lend to a person with an 850 credit score. This consumer is considered low risk and is more likely to pay all of their loans on time. By contrast, a person with a 350 credit score report probably has numerous defaulted loans and may be considered high risk to lenders.

The credit score report will also list a second rating. This secondary rating scale involves a numerical rating system that ranges from 0 to 9. A letter designation is also a part of the rating system. The letter next to each listing on the credit score report is typically an “R” or an “I.” The “R” denotes a revolving credit account, and the “I” denotes an installment account.

A rating of “R1” would indicate that the account listed on the credit score report is in good standing, and the consumer may be one month behind on payments. An “R2” rating would indicate that the person is two months behind on their payments. Any rating of “R5” or “I5” would indicate that the account may be in default, consolidation or repossession status. A rating of “R9” or “I9” would indicate the account is in default.

Credit score reports may be obtained online or by requesting a report from each one of the major credit bureaus. Each year, consumers are entitled by law to obtain one free credit report. Numerous online websites will send a free credit report along with a free trial to sign up for monthly access to credit reports. A credit score report are essential if you are purchasing major items such as a house, car or boat. Lenders will request a copy of the credit report in each of these instances.

Consumers will also need to provide access to their credit score report to credit card companies, rental agencies and even an employer. Removing negative items from the credit score report is essential to success. In this economy, only consumers with a credit score of 700 or above are awarded with low interest rates and good terms on loans. Consumers must be vigilant about monitoring their credit score report to ensure that nothing prevents them from purchasing items that they desire and need.

To improve credit scores, remember that credit payment history and current debts are weighted 65% of the total credit rating. Improve these aspects of the credit score and your credit score will most likely improve. This requires paying off all debt and paying any future debt according to schedule. Consumers that perform these simple techniques will improve their credit scores in a short period of time. Consumers that have not viewed their credit score report this year should consider obtaining a report online or through one of the major credit reporting bureaus.

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