Credit Report Basics

The recent credit crunch has made many people a lot more wary of their credit scores. Various companies have ads all over television, guaranteeing a raise in your credit score through use of their service. Most of us known that credit scores can affect your ability to make large purchases; a bad credit score can ruin your ability to buy a home or a car, and can make taking out any kind of loan a very difficult process. Credit scores communicate to lenders how safe an investment you are; they don't want to give high risk individuals a lot of their money.

In general, a credit score is a way of determining your willingness to repay a debt. You show this willingness by paying back your debts in a timely manner, and the credit score reflects how you've paid back past loans to other lenders. Credit bureaus catalog this information in credit reports, which are detailed documents explaining one’s credit history.

In the United States, credit scores range from 300 to 850, with the higher number indicating a more favorable rating. There are three major companies which issue these reports: Equifax, TransUnion, and Experian. These companies compile consumer credit histories and apply a complex formula to them to translate them into credit scores, which they then sell to lending agencies.

You are able to request a free credit report once a year from each of the credit agencies. This can be beneficial, as you can check for inconsistencies or learn more about the strengths and weaknesses of your credit score. If you stay on top of your credit score, you'll be in a better position to get low interest rates and apply for large loans.

Contact Us

If your credit score is making it difficult for you to make your mortgage payments, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C., by calling 443-546-4608.