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Consumer_Debt[1] - Consumer Debt What is a credit score A...

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Consumer Debt
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What is a credit score? A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –– specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents. https://www.annualcreditreport.com/cra/helpfaq#order
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Know Your Credit Credit reports are kept by the three major credit agencies, Experian, Equifax, and TransUnion. Among other things, they show whether you are habitually late with payments and whether you have run into serious credit problems in the past. A credit score is a number calculated by Fair Isaac based on the information in your credit report. You have three different credit scores, one for each of your credit reports. A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores. Try Fair Isaac's MyFICO.com, which charges upwards of $50 for all three reports and scores. Errors are not uncommon. If you find any, you must contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer. http://money.cnn.com/magazines/moneymag/money101/lesson8/index3. htm
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Fair Credit Reporting The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The Federal Trade Commission (FTC), the nation's consumer protection agency, has prepared a brochure, Your Access to Free Credit Reports , explaining your rights under the FCRA and how to order a free annual credit report. A credit report includes information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. https://www.annualcreditreport.com/cra/helpfaq#order
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Debt to Income Ratio Total Monthly Debt Payments Divided by Total Monthly Income = Debt to Income Ratio TOTAL MONTHLY DEBT PAYMENTS Monthly mortgage payment (including property taxes and insurance) or rent Monthly home equity line of credit or loan payment Monthly car payments Monthly revolving credit payments (furniture, appliance loans, etc.) Monthly student loan payments Monthly minimum credit card payments times two Other monthly loan amounts Monthly child support payments
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