| If you are considering making a major purchase and | | | | instance a new job or an inheritance may significantly |
| using financing to do it your credit score chart is | | | | change your ability to borrow money. |
| something you need to be aware of regardless if the | | | | During a review your credit score chart will be |
| economy is good, bad, or otherwise. While a bad | | | | examined to see what types of loans you have used |
| economy may increase scrutiny and decrease | | | | in the past and currently and how diligent you been in |
| flexibility concerning your ability to get the funding you | | | | keeping to the repayment terms. The types of loans |
| need, the basic concepts for a financial review are still | | | | you have outstanding are often reflected as a |
| in place. | | | | percentage of your total debt. |
| Ostensibly, a credit score chart is set up to be fair. It is | | | | You will also receive a score as from the rating |
| a document with nothing other than a name and a | | | | agencies. There are three major credit reporting |
| social security number and, of course, your financial | | | | agencies that issue what is known as a FICO score. |
| history. This unbiased document provides the agency | | | | These agencies derive there scores based on |
| or lender from which you are seeking funding an | | | | information provided to them by companies you do |
| overview of your borrowing and repayment activity | | | | business with such as a car company, department |
| over the last several years. | | | | store, or mortgage company. |
| In many cases the extension of financing is purely | | | | For those that have low scores obtaining financing is a |
| predicated on ratios or percentages that are | | | | challenge. Those having very good scores may even |
| generated by a formula used by the lender. There are | | | | receive competing offers for there business. A recent |
| different formulas used by different industries. For | | | | report indicates that 58% of US residents have a |
| example the automobile industry will use a different | | | | credit score of 700 or more. With this score they very |
| formula than the housing industry while looking at | | | | likely will obtain the funding they need with few if any |
| essentially the same financial history. | | | | issues. |
| As stated previously, many times your answer for | | | | For those whose credit score chart indicates scores |
| approval for funding is simply the result of a formula, | | | | below 700 it would seem wise to obtain detailed |
| no other interpretation. However, on occasion there | | | | reports of their financial history from all three agencies |
| are times when your credit score chart can be | | | | and see if they contain any errors. It may also be |
| tweaked by human intervention when recent events in | | | | advisable to seek advice from a financial counselor as |
| person financial circumstances have changed. For | | | | to what you can do to improve your FICO score. |