They apply for a revolving credit card and now 10 points lower their credit score and now they cannot get their dream car financed. It is difficult to explain to the car dealership that 30 seconds ago the credit report had a much higher score, and if the report had not been pulled the car would have a new owner.
100 points can lower depending on who pulls the credit report scores at most. Consumers should take an initiative when it comes to protecting their credit score. Consumers are not helpless; they actually have more power than they realize. Creditors always insist on pulling a credit report for any and every thing. Consumers should be aware of these pulls and offer to intervene.
Here are a few things consumers can do to protect their credit rating and avoid damaging credit pulls. Although, some creditors will say they cannot accept a report from the consumer this is not always true.
a. · Keep a current copy of credit reports close by. Some creditors will accept a current copy of a credit report instead of charging customers to pull one. The government allows consumers access to all three of their credit reports each year for free. This is in response to identity theft and the 9/11 scares.
b. · Get a credit report from the 3 major credit reporting agencies. Consumers should check each report for accuracy. All 3 reports should contain similar information. Any outdated or erroneous information can be legally removed. Most consumers find inaccuracies on their report each year and having it removed can increase credit scores. Contact the proper reporting agency for procedures on how to remove negative, old, or erroneous correspondence.
c. · Collect letters of credit worthiness from other employees and creditors. Having letters from past and current creditors can help a lot. Most creditors will take these types of letters into consideration and probably pass on pulling the credit file for the time being. What creditors are looking for is a history of payment or non-payment. In some cases a few telephone calls may suffice.
d. · Offer to request your own credit report. Many businesses will inform their customer that pulling their own report costs them nothing and they will accept it. This is usually the best choice for avoiding a pulling fee. Companies charge an outrageous fee to check credit files, and lower credit ratings.
It may be hard to imagine but trying to fix bad credit and pulling a person’s credit file in the midst of him or her trying to establish or reestablish his or her credit can have a psychological impact on a person’s life. To some consumers when a business pulls their report it is saying I do not know you, therefore, I cannot trust you. It is the shame and embarrassment of having poor or bad credit that makes some consumers feel inadequate. It is the way the creditor looks or treats consumers after they find out their credit is not good at all.
This happens to people on a daily basis and for some consumers it is just too much to deal with. The world seems to run by credit vultures and loan sharks. Banks will not give out loans to individuals with soiled credit. This is also true of other financial industries as well. Credit bureaus have their own formula in which they use to calculate consumer credit scores. Each negative item on a consumers’ report will lower their credit score considerably. People do not realize how valuable their credit is until they are faced with making some tough life decisions.
Getting married is one of those decisions and so is starting a family, financing a car, or buying a house. Any one of these major events will require the consumer to take a look at their credit history and determine whether or not it needs to be improved. When consumers enter into another phase of their life they realize that cash is good but it does not buy good credit. Merchants want to see a history of payments, missed payments, or established credit. To understand more of this, visit http://www.irebuildcredit.com
Some consumers are under the impression that they can gain good credit by paying cash for their purchases. The truth is paying cash for purchases do not build credit because it fails to provide a payment history. Any time a consumer wants to improve his or her standard of living he or she has got to have some type of established credit.
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