It can be difficult to understand why you have bad credit or how to improve your credit, but it really is all about your track record.
New information is constantly being added and deleted from your score. This new information comes from large credit reporting agencies who keep track of people’s financial information and sells it to lenders.
So any time you’ve applied for credit will have a file, and the information includes your social security number, employment, credit cards and debts.
Credit score calculating is not easy and keeping track becomes overwhelming. You may just be seeing it more difficult to get a loan for a car or home or maybe you’re seeing higher rates. This is based on that score.
To give you a better idea of how these large agencies predict your reliability to lenders, we’ve provided a noncredit example.
Suppose you’re waiting for a friend to get to your house. Where do you think they are?
To answer this question you need to review what you know about this person. If they’re always late, you find something to do while you wait, at times getting a little frustrated.
Are they forgetful? If you had scheduled plans and didn’t confirm beforehand, maybe you realize that they probably forgot.
Maybe they’re never late, so you try to think of why they would be this time. Did they stop to get gas?
Using all these variables you could try to predict where your friend is. That’s what these large credit agencies try to do. They try to predict whether you’ll be able to pay lenders, and even if you have enough income, they look at how your payment history has been in the past.
This can’t feel good, but guess what? There is help out there… hint, hint. The Credit Repairmen can help improve your credit. Call us today at 210-520-0444.
