Many people do not know that they can challenge an incorrect or questionable item on their credit report. Challenging these items can potentially have them repaired or removed. When you participate in credit repair at BNB, we will review your credit reports to help you identify those inaccuracies and come up with a plan to have them repaired. If an item cannot be verified within a reasonable time (usually 30 days) it has to be removed or repaired. The Fair Credit Reporting Act gives you a legal right to dispute any item on your credit report. Schedule your FREE Credit Assessment NOW!
A credit report is a report containing information about your current credit situation and activity, such as a loan payment history or
statuses of your credit accounts. These reports are maintained by consumer reporting agencies, more commonly known as credit bureaus.
The three largest credit bureaus are Transunion, Equifax, and Experian. Each bureau collects and stores financial data about you that
is submitted to them by creditors, such as lenders, credit card companies and other financial companies.
Lenders use these reports to help them decide if they will loan you money and if so..... what interest rates will they offer you! Your credit report contains information about your debts and payment history. It indicates if you have defaulted on any debts, have any outstanding judgments or child support, and whether or not you have any bankruptcies. Other businesses might use your credit reports to determine whether they can offer you insurance, rent you a house or an apartment, provide you with utilities or require a deposit for a cell phone.
A credit score is your credit history expressed as a number. Comparable to receiving a grade for how responsibly you’ve managed your loans, credit cards and other financial obligations over the years. Credit scores range from 300-850 and are generated by a mathematical formula that is meant to predict creditworthiness. The higher your credit score, the more likely you will be approved to get a loan. The lower your credit score, the less likely you are to get approved for a loan and if approved, your interest rate will be much higher than someone with good credit. So having good credit will help you save thousands of dollars in interest on your mortgage, auto loans or credit cards.
800 or Higher – ExcellentWith a credit score in the range of 800 to 850 these people are considered to be consistently responsible when it comes to managing their credit and are prime candidates to qualify for the lowest interest rates. People with this score have a long history of no late payments, as well as low balances on credit cards. Achieving this excellent credit rating not only requires financial knowledge and discipline, but also a good credit history. With excellent credit scores consumers may receive lower interest rates on mortgages, loans and credit lines because they are deemed to be low risk for defaulting on their credit agreements.
740 – 799 – Very GoodThis credit score range shows lenders that a consumer is generally financially responsible when it comes to money and credit management. Most of their payments, including loans, credit cards, utilities and rental payments are made on time. Having a score in this range consumers will enjoy good rates and will be approved for nearly any type of credit loan or personal loan, whether unsecured or secured.
670 – 739 – GoodThis range is the average credit score. While consumers may still get competitive interest rates, they are unlikely to command the ideal rates of those in the higher categories and may still have trouble qualifying for certain types of credit. If you are thinking about a long term loan such as a mortgage, it is recommended to try to increase your credit score higher than 720 so that you can secure a low interest rate to save a noticeable amount long term.
580 – 620 – FairThis “fair” or “average” category may have some dings on their credit history but no major delinquencies. Your credit history and what type of credit you are applying for will reflect in the rates you are quoted. Nor does it mean you won’t be approved but there could be certain restrictions that apply.
300 – 579 – PoorAn individual with a score between 300 and 579 has a significantly damaged credit history. This can be the result of a bankruptcy or multiple defaults on different credit products. Consumers in this range, unfortunately have very little chance of getting new credit.
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