credit card debt reduction Article

Credit Scoring And Credit Repair
By Jason Uvios
Credit scoring is an important means to precisely determine your credit position. You need to realize the importance of maintaining a healthy credit report providing a good credit score. This is necessary for any loan venture you may be contemplating. Unless you have a good credit score your loan application may be either turned down or you may have to settle for unfavorable terms and conditions. It is when credit scoring indicates a poor or bad credit situation that credit repair measures are to be taken up.

Credit scoring relates to a numerical rating of your credit worthiness. More often this is the rating of Fair Isaac and Company (FICO). The credit report containing your financial history, payment records, debts, records etc. helps in credit scoring i.e. determination of the credit score or FICO score. Such credit reports are often supplied by the reliable credit authorities - the tri bureaus (Experian, Equifax and Trans Union). The credit score or FICO score is a composite number.

The credit scores depend on a number of factors like the length of time the credit has been held, the outstanding credit, the methods to repay outstanding credit and the closeness to credit limits. The problems faced by you with credit like late payments or bankruptcies are taken into consideration too while finding out the credit score. The number and frequency of delinquencies are important considerations also in credit scoring.

Values of credit score (FICO scores) may range between 300 and 900 though most people's score lies between 550 and 700. Higher credit scores imply enhanced appeal in the eyes of the prospective lenders who will extend better terms and conditions

and better rates of interest for you. Lower credit scoring, on the other hand, mean turning down of mortgage/loan application or settlement at unfavorable terms. So, if your credit score is below 550 then you need to resort to advocating credit improvising or repairing measures.

Upon detection of poor credit score the following credit repair measures can be undertaken- detection of errors in listing of accounts and reporting them soon, closure of accounts related to credit cards not in use, timely payment of bills and timely making debt repayments and settlement of outstanding accounts. These will hopefully improve your bad credit over a period of time providing positive indications sooner. But no quick fixes can be suggested since it is a fact that negative information remains in credit report for a period of over seven years and bankruptcies for ten years. Still, the positive indications will be hopefully taken into consideration by mortgagers and the like and your loan applications may not be that unwelcome after all.

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Jason Uvios writes about on Credit scoring and credit repair to visit :- bad credit report repair, repair credit and credit repair letter