How And Why Your Credit Score Will Change
By Mike Wayman
How often does our credit score change? What causes a change in our score? Any time our credit report changes, our score can change. What would cause a change? There are several reasons.
You may have missed a payment, or made a payment late. You may be applying for a credit card or a new loan. You might be changing the amount of available credit that you have with a particular company. Perhaps you have defaulted on a loan, or filed for bankruptcy.
Some will find when they apply for a gas credit card, for example, your credit may go down if you update your score. Once the creditor reports to the credit card bureaus of your activity of paying on time, and not keeping a balance, your score should go right back up. After all, your total overall credit has gone up.
If you have stable finances, your score should not be constantly changing. In fact, your credit score may stay the same for many months. If you resolve any debts, or clean up any mistakes in your credit files with the credit bureaus, this will also affect your credit score. Keep an eye on your credit score by checking at least once a year. If it doesn’t change you can be secure and comfortable with your score.
How Will A Foreclosure Affect Your Credit?
By Mike Wayman
In today’s economy it is not surprising that many people are dealing with foreclosures. In fact, there are many tv specials that report the substantial amount of foreclosures that are prevalent today. If you have foreclosed on a loan or are at risk or foreclosure, your credit score is definitely going to be effected.
A credit score or FICO score indicates your ability to pay your bills. Anything can change this score, and a failure to make a loan payment for 30 to 90 days will definitely result in a decrease of your score. Additionally, every time you further default on payments, your score is further affected – it is like a rippling effect.
Most people who have foreclosure on their credit scores are denied credit for up to 7 years. If they are lucky enough to get credit to pay for something, it will most likely be at an extremely high interest rate. However, some people say that this cannot be proven for sure. The researchers do suggest, however, that your credit score will be lowered by 100 to 150 from a foreclosure.
Regardless, your credit score is a valuable asset. If you have not foreclosed yet, do whatever possible to avoid it. And, if you already have a foreclosure on your record make sure that you are doing everything possible now to establish a positive credit history.
