With all the new advertising pushing to get your prestige score you would think knowing your score is very important. While you may feel good if your score is above 700, or badly if its below 600, the fact of the matter is you can't do anything with that information.
More importantly, knowing what goes into development up your score can give you some understanding as to what you can do to improve it. By understanding these finer points (which are not that difficult), you can make changes in how you use prestige as well as the types of it you should use and which ones to avoid using.
Your score is basically a snap shot of your entire report. It summarizes all you have been doing with all forms of prestige for the last ten years of your life. In terms of your score, using some forms of prestige are best for your score than others. For example, a mortgage loan is best than say having a store charge. If you have never seen your report, or are getting it for the first time, here is what you can expect to find on it in increasing to your name, address and group safety number.
Every inventory you ever had together with who issued it to you; a local merchant or one of the major banks, every mortgage, car loan, pupil loan and so on will be listed on your report. Also things like liens or warrants ( judgments against you) for nonpayment or debts gone bad.
It will show all your accounts, active ones as well as the closed ones and why, or by whom, they were closed (you or the business that gave it to you). It shows timely payments as well as late payments made, and by how much you were late, as well as how often you are late. Paying your bills consistently late is called a rolling lateness in the trade. Your description will also show if you pay your bills within the grace period. You know what the grace duration is right?
Your payment is due on the first of the month but not determined late unless paid after the 10th. You should know that even if you pay within the grace period, it has a negative affect on your score. Payments made after the 10th will then have added interest plus penalties for lateness, and will affect your score negatively.
Your report will also show your place of employment and how long you have been working there.
All these factors have a number value which is then calculated straight through a recipe that results in what is called your score. In the lending industry it is know as your Fico Score, or your Isaac Score.
The name really comes from a business called Fair Isaac and business who started the whole reporting process back in the 1950's. The recipe has evolved since then, and also takes into consideration factors such as how often and what type of prestige you use for example major cards like Visa or expert Card, or finance deals from a local merchant for things like furniture and stereo equipment. Also looked at are things like auto loans, bank loans etc, each with their own numerical value in determining your score as well as your most new purchases, and whether you pay your balances in full every month or not.
On a side note, that small magnetic strip on the back of your card is how all this data gets transferred from the store where you made your purchase, or even on line, to the recording bureaus.
The data is then formulated into that three digit number they call your score. That number then labels you as whether a bad, good or excellent risk to all the lenders and finance fellowships who want your business; but as I've said before, that is not the whole picture.
When a bank or merchant pull your report, they will take your score and your history into notice in choosing whether or not they want your business and how much of an interest rate to charge you. In increasing to that information, they will also look at other factors such as your current monthly bills, take home pay and your rent; if you do rent, or your mortgage number if you are a home owner, to decree how much of your take home pay is left after you have paid all your bills. The inequity between the two is referred to as your debt ratio which in some ways, carried more weight than your score does because it tells a lender how you are handling your day to day finances.
Your description should come with an explanation for reading all the terminology and codes listed on it. Each of the three recording bureaus; Equifax, Experian and Trans Union, will yield you with this information. The danger or pitfall when responding to those Tv ads for getting your "Free" report, is that what they may be issuing you is not the real thing. There are fullness of fellowships out there today who gather all kinds on data on consumers and then use that data to sell to other marketeers.
If you want your real prestige report there is only one place to call and that number is 1 877 322 8228, it is totally free, and there are no clubs to join. All you have to do is ask for it.
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