The topic of credit scores and credit reports has been in the news as of late due to the fact that new rules that have been implemented require that lenders disclose a consumer’s credit score if they are denied a line of credit, like a mortgage, car loan, or credit card, and as a result these men and women may get a look at their credit score and potential reasons as to why they were either denied the credit were seeking or may have received unfavorable terms. However, looking at a credit score is nothing new to consumers as many have accessed reports online as a way to find out where they stand financially, especially if someone is planning on making a purchase that may require borrowing to do so.
Understandably, consumers have grown frustrated when they may have found that the credit score they have received did not necessarily match the score that their lender had, as there are different models that are used to calculate a consumer’s credit score than that which may be used to offer a consumer their credit score online. However, what some officials have been wanting consumers to remember when they are looking at their credit score is the number may not be as important as what range they fall into, and furthermore consumers need to be more focused on their credit report and history rather than their score, in many cases.
Understandably, nothing is wrong with looking at a credit score so that a consumer knows where they stand, and again if a consumer is denied credit or given unfavorable terms they may be able to see this information for free and gauge in a more accurate manner where they stand with a lender as they will know exactly what score a potential lender is using. When a consumer gets a credit score online, as an example, they will need to take notice of where they fall, in terms of whether they are viewed as a bad credit borrower, may have fair credit, or are in excellent position in terms of their score, but if a consumer is looking for this information for the purposes of bad credit repair, a credit history may be more helpful.
In the past, officials have been adamant about consumers who are pursuing a more beneficial credit score to review their history in order to make sure that there are no mistakes. Some consumers have found debts still on their credit score which were previously paid off, and this can honestly cause a decrease in the consumer’s score, but others may have found that they have become the victim of credit card fraud and, once again, are in a position where their credit score has suffered.
While knowing a consumer’s credit score can be helpful, if a consumer is serious about getting on the bad credit repair path, it may be more important to focus on their credit history and building a better credit history through paying debts on time and keeping their debt to income ratio low, among other things, as the history a consumer builds will obviously lead to a higher credit score and for consumers who are looking to improve their credit standing, this is what matters most.