' What Factors Affect a Credit Score? - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Understanding Credit: What Factors Affect Your Score

What Factors Affect A Credit Score.Dealing with financial problems can be one of the most difficult challenges you’ll ever face. Not only is it overwhelming, it can also create long-term consequences. One of the reasons for this is your credit score.

A single financial misstep or unexpected medical event can stain your credit, and even if you get things back on track, the damage it does can last for years.

What do you need to know about your credit and what affects it?

You Can Have Different Credit Scores at the Same Time

Most people understand credit scores change over time.

Your score can increase or decrease from month to month due to online, late, or missed bill payments, having your credit score pulled, and having things “drop off” your credit as time passes.

But you should also know your credit score varies based on what agency provides the information.

Your credit report can be requested in a single day and if it comes from different credit agencies, the score will be different because three main credit reporting agencies, Experian, Equifax, and Trans Union, have different reporting models.

Furthermore, the institution requesting your credit score will likely have different ways of gathering information and can use any or all of the information provided by the three main reporting agencies. For instance, a mortgage lender will analyze information differently than a credit card company.

The differences in your score probably won’t be significant. If you have great credit, your score will be high no matter how it’s gathered, unless there is incorrect information on one of the reports. Likewise, if your credit is poor.

However, if you have an average rating, it can be tough to predict whether or not you’ll receive approval from a lender because depending on the criteria used, the approval could go either way. What a car loan lender considers good credit, a mortgage lender might consider too much of a risk.

Different Agencies Use Different Scoring Ranges

Though the standard scoring range (FICO) for credit scoring is 350 to 850, different agencies each have their own scoring system. For instance, Experian’s scoring range is from 300 to 900.

Adding to the confusion, different creditors can choose to report to different agencies. One credit agency might have information on all of your debts, while another might have all but one or two debts. Depending on the size of the debt and its status, this can make your credit score vary widely from agency to agency.

Timing

As the saying goes, “time heals all wounds.” Though this isn’t necessarily an absolute truth in life, it is true when it comes to your credit score.

Over time, most of what is on your credit will drop off and new things will appear. Accounts that are open and current will remain on your account, but past due accounts that have been closed and accounts you’ve paid in full or had discharged in bankruptcy, will eventually no longer appear on your credit.

Over time, these changes have a significant impact on your credit score, and depending on when your credit report is pulled there can be a significant difference in your score as time passes.

To learn more about how long certain debts stay on your credit report, check out this information.

One of the most important aspects of achieving success with bankruptcy is understanding your credit score. Not only can it help you determine whether filing for bankruptcy is the right call, it can also help you build a better financial future as you move forward out of bankruptcy.

For more information about how your credit score is determined or to speak to someone about repairing bad credit with bankruptcy, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can Filing for Bankruptcy Affect Your Job?

Filing for bankruptcy can be a challenging decision that is fraught with many concerns. Among them is the fear that...
Read More

Can You Cancel a Bankruptcy?

Bankruptcy is an option that can save individuals and businesses from financial ruin. However, the process can be a long...
Read More

Does Bankruptcy Clear Child Support Arrears?

Bankruptcy is a legal process that provides relief to individuals who cannot pay their debts. One common question among individuals...
Read More

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
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

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