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Ten Lessons I’ve Learned From My Fico Score | my fico score

For most of my adult life, I have been told by every financial advisor that I need to check my FICO scores on a regular basis. “Check your credit scores at least once a year”, they say, and “there is no time like the present”. In short, they are right. But why is it important to regularly check my credit scores? Why should I bother? What exactly can checking my credit scores do for me?

When I was younger, my parents gave me a copy of my FICO scores so that I would be prepared for all the credit cards that they would give me during those young years. That was a very wise decision on their part as credit cards were very expensive back then. I can imagine that my scores at that point were lower than they would have been had I simply stayed in school and worked my way through college. I am glad my parents gave me this information. Had I known that my scores would have improved, I am not sure what I would have done.

Checking my credit score online allows me to see where I stand with different lenders. The key is to find out which lenders use my FICO score when determining my interest rate. My credit report was sent to me free of charge by one of the major credit reporting companies. I was only required to look at one of the reports. The information on the report was easy to read and understand.

After reviewing my report, I began comparing the data with the widely used credit scoring models. There were several differences between my report and the widely used credit scoring models. First, my credit scoring models said that I was a high risk consumer. A consumer with a low FICO score is considered a low-risk consumer. Thus, by using my credit scoring models I was assigned a high risk status. This significantly reduced my interest rate because it indicated that I was a high-risk consumer.

Secondly, the widely used credit scoring models were wrong about my payment history. They gave me a lower payment history. When I checked my score online, I found that I was not paying more than 31% of my income toward my balance each month. By using the widely used payment history scoring model, I was being overcharged. This was the second major error that the credit bureaus had made.

The third error was that the credit scoring models thought I made all my payments on time. Even if I missed a payment or two, my credit scores showed that I had made all of my payments on time. Once I discovered these errors, I contacted the credit reporting agencies and they provided me with the accurate information. I then informed them of my discovery and they informed the credit bureaus of my claim.

Once this information was provided to the credit reporting agencies, they quickly fixed the errors. But my situation was not yet resolved. Because my score was calculated based on my payment history, my three mistakes reduced my score by over 100 points. Because my payment history was so poor, the next time my credit report was requested I could not qualify for a mortgage loan. I had to get a co-signer or find a lender who was willing to take a high risk on my account.

To protect your credit scores and help you avoid making costly mistakes, you should get your credit reports and score regularly. You should also check your credit reports for any errors. If you see an error on your report, dispute it. There are many professionals who can help you do this.


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