Check free credit Topeka

For years, the creators of the leading credit scoring formula, the FICO, didn't want consumers to know the scores existed, let alone what went into them. In early 2000, however, E-Loan started letting customers see their FICO scores. That free experiment was quickly shut down, but the check free credit Topeka secret was out. Pressure from consumer advocates and lawmakers finally persuaded the FICO creators -- check free credit Topeka a company named Fair Isaac, now known as FICO -- to reveal later that year the 22 factors, grouped into five categories, that went into creating its scores. But 10 years later I'm still hearing many of the stupid myths about credit and credit scoring that prevailed 10 years ago, plus some that have sprung up since. Their prevalence is keeping people from understanding one of the most important check free credit Topeka numbers in their financial lives.

Credit scores are used: Failing check free credit Topeka to understand credit scores and how they work, in other check free credit Topeka words, really can put a dent in your financial life. free business credit report Here are the seven most dangerous myths that need to be dispelled: Myth No 1: "If you handle your check free credit Topeka finances responsibly, your credit scores will take care of themselves." check free credit Topeka Fact: A credit score is not a financial-health score. It doesn't measure your income, assets or financial savvy. There are some behaviors that may be good for your check free credit Topeka wallet that aren't good check free credit Topeka for your scores. Keep in mind that credit scoring formulas have one primary purpose: to help lenders gauge the likelihood you'll default, based on how you handle credit. trw credit report If you stop using credit or use it in a way the formulas don't like -- using only one card, shutting down a bunch of accounts or maxing out your cards, even if you check free credit Topeka then pay them off in full -- your scores could suffer. 2: "Checking your credit hurts your credit scores." Fact: Checking your own credit reports and scores does not affect your scores. A credit check could hurt you if you asked a friend at a bank or car dealership to pull your credit reports. Such transactions probably would check free credit Topeka be coded as "hard" inquiries, or as applications for credit, which could ding your scores. But checking your own credit is otherwise a non-event.

This check free credit Topeka persistent myth is particularly destructive, because it discourages people from knowing what's going on with their credit reports and scores. Many reports contain serious errors that result in your check free credit Topeka being turned down for a loan or paying a much higher interest rate than you deserve. credit report and score for free You need to visit check free credit Topeka AnnualCreditReport.com at least once check free credit Topeka a year to view your free credit reports from the three bureaus and dispute any check free credit Topeka serious errors. If you'll be in the market for a major loan, such as a mortgage or an auto loan, you'd be smart to buy your FICO scores from myFICO.com to see how lenders are likely to view your application and get tips from improving your numbers.