Learn some surprising facts about your credit score

As per various wedding surveys, roughly one-third of all the marriage proposals are made between Thanksgiving and New Year’s Day. But aren’t you a bit curious about those being rejected? Well, people with bad credit ratings are the ones to be left behind. As per a recent survey, half of the couples said the credit rating played an important role when choosing a spouse. Rather than physical attractiveness, ‘financial responsibility was a more important quality.

Consider these additional fun facts about credit scores if marriages being based on financial health is not enough of an incentive. You can save a lot of money as you go through this article. Think about it as a gift to your wallet.

    It’s all about credit scores, and there are a lot of them.
    You are mistaken if you ever thought you just had a single credit score. There are more than 1,000 credit scores that exist. Your financial history is evaluated by various companies that use proprietary analytical methods. The outcome allows a prospective lender to assess the risk based on your credit rating. There are different score ranges and categories involved.Your credit score should not dishearten you. There is no guarantee that the lender will use the similar credit score type used to assess you. And even if it were, the chances are that most owners use their in-house modified credit scoring. Thus, it would help if you were more concerned with your credit score. It should primarily be used to track your credit-building progress or estimate your credit worthiness.
    Credit resorts are more important than credit scores.
    All credit scores are built on the foundation of credit reports from renowned firms such as Equifax, Experian, and TransUnion. So your credit scores are only as good as the information on your credit reports, which might be unsettling when you realize that the Federal Trade Commission estimates that one out of every five people has a mistake on one of their credit reports. Thus you need to take full advantage of your right to one free copy of each report annually.
    Credit rating plays a vital role in employment, apartment rentals, and insurance premiums.
    Although employers, landowners, and insurance companies cannot access your three-digit credit score, you are requested to submit it to them. Thus based on your historical credit data, they can assess your financial health and decide. For example, as per one report, it is revealed that a driver with excellent credit pays 50% less for car insurance than the one who does not have any credit rating.
    Credit scores cannot reveal quickly if you are a victim of ID theft.
    The availability of free credit scores is thought to alert consumers whose identity has been compromised. Even President Barack Obama provided praise.

    During a speech held in January at the FTC, he said that he was quite pleased as most banks, credit card issuers, and lenders provide another means to combat the ongoing threat of identity theft and the availability of free credit scores to the Americans.

    Nonetheless, there are many loopholes with this idea. First, the credit score can change due to several reasons that are difficult for a consumer to decipher. Second, the credit score is based on historical financial activities that take time to generate, while the fraud moves very fast. Thus it would take weeks or even months for the consumer to realize when the report is sent to their mail, that they are a victim of fraudulent activity or identity theft.