CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Three Surprising Things to Know about Your Credit Score

If you are dealing with financial problems it is important you be aware of and to understand the meaning of your credit score. Your credit score is one of the most important factors affecting your financial health. Once you understand how your credit score is created and used, you can take the steps necessary to improve the number lenders use to evaluate whether or not you are a good lending risk.

Not a Single Number

One of the most surprising things people learn is that they actually have several different credit scores. As crazy as it might seem, each of the three main credit bureaus has its own proprietary scoring method. Furthermore, each of the bureaus might provide more than one score to a potential creditor. In some cases, a lender will pull your scores from at least two different providers and compare the results.

Knowing what is on each of your credit reports is extremely important. One time per year or just prior to applying for a loan, ask to receive copies of your credit reports and evaluate the information included on each. If anything is incorrect, get the mistake fixed before moving forward with your loan application.

For tips on getting a mistake removed from your credit report, see this informative article from ABC News.

Changes Can Come as a Surprise

There are many things that can affect your credit score in addition to taking on more debt. Each of the following affects your credit score, so by monitoring your activity, you protect your score:

• Utilization of open credit cards
• Percent of on-time payments
• Number of derogatory marks
• Age of open lines of credit
• Total number of accounts
• Total number of hard credit inquiries

Unfortunately, even small drops in your number can make a big difference if you are trying to get your credit back on track. If your score is relatively high, there’s probably no reason to worry about small changes. However, it is important to note any changes that are significant and keep track of what you can do to prevent any negative changes.

Credit Scores are Not the “End All Be All” of Lending

Granted, lenders will judge you by the three digit number that is your credit score, but they will also take other factors into account. Their goal is to determine if you are a good risk. They want to lend to you – it’s how they make money – but if they are afraid they will not be repaid, they are not going to take the risk. Rejection from a lender is nothing personal it just means your credit portfolio was cause for concern.

It might take some time, but eventually things drop off your credit report and your score improves. Your goal is to be diligent about making payment on time, keep your balances low, and make responsible decisions with borrowing money.

If you are concerned about your credit situation or you feel your debt is driving you into a downward spiral, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation and determine what you can do to create a brighter financial future.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can Leading a Frugal Lifestyle Prevent a Second Bankruptcy?

Changing your approach to spending is a necessity after bankruptcy. You’ll turn over some control of your finances to the...
Read More

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions