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The Good, The Bad, and The Truths Of Credit Score Protection

What is the Credit Score?

It is a major factor in many mortgage decisions. This score is used by lenders when determining the best way for you to live and to take on an extended family. A credit score is a ratio of the income earned by creditworthy persons versus the income available to those persons.

The purpose of such a scoring is not to discover the exact number of chances created per 1,000 person, but to establish how realistic such a system would be if accurate. But the truth, as never before, is that credit scores are an important tool in the decision making of those we loan.

According to a 2005 report in the British Medical Journal, nearly 40% of UK households are under the age of 50 and 60% are in this age group. The gap between the wealthy and the rest is even greater for the rest of us.

How It Affects Our Future Mortgages

The basic theory is that what is paid off during a consumer’s lifetime is valuable to the credit card. As long as future principal is kept on hand at the end of the year when that capital remains, payments made are a significant portion of the total payment. Yet the advantage of getting paid off only during this time is abused. Another theory holds that when you make a late payment it is used as leverage against you. If you cannot pay your bills or your credit card bill or your credit card with a higher interest rate then a large portion of the increase in your payments are received by the credit card companies who are paying interest on the amount owed on the loan.

What is the Universal Default Payment?

Universal default is the principle that a payment due to a creditor is automatically declined. In other words you agree to pay the debt, that is, pay on it (not satisfy). This is the “universal default” (although slightly different) as it applies to the borrower who defaults on his/her credit card bill.

The Problem of Default

If you repay your entire bill every month, but that doesn’t contribute enough to the balance then the interest rate will fall a significant amount while only a small percentage slips through. This means your benefits are stretched short and your debt is immediately eaten up. If you do a credit application search online with debt consolidation you will find many creditors who offer the plan of low interest only, with very little incentive to payoff the debt. You may even find a bankruptcy’s offer of “guaranteed payment” which only adds up the debt, and not the minimum monthly repayment.

Other Alternatives

It would be far better to go for the FDIC. They offer many strategies to manage credit and are relatively small compared to the bigger players. The situation is slightly different if you borrow only a few hundred dollars. With the FDIC you are entitled to free consultation, and they handle most of your payments as part of their practice. But the situation is also a lot more difficult to understand since many smaller lenders are not registered pre-screening organizations. The FD’s approach is not intended to replace the legal qualifications of your application for an individual loan, but rather to demonstrate their effectiveness.

Credit Score and Business Credit Score

Credit scores, also known as FICO scores and Business Score scores, are generally used as indicators of financial risk or risk management in the management of a business. An FICO score signifies potential failure to timely repay a loan. Another commonly used measure of risk involves the financial status of an individual. If your current financial situation serves to contribute to their vulnerability and to their suffering, this could cause you financial peril.

The accuracy of score provides essential information for decision making. If the scores for a business are very accurate, it is very probable that the employees operate in the best interests of the company or governmental agency.

When and where is an individual score created or assigned to?
Each of the three major consumer bureau (2000 census data) and individual credit report agencies provide scores for people with different types of credit problems. If an individual’s personal information is searched, it is commonly found that both his and her information has been changed. Federal law provides notice of changes in scores from each bureau and of possible consequences, including judgments against them.

If someone was paying the same or higher interest than the original person for a specified time period, an annual fee may be charged. Individuals holding various types of credit and loans may have different scores.

Are the scores accurate?
An accurate score means that the employee is capable of making a reasonable effort to repay the original loan or to carry out all of the payment arrangements in the original agreement. An imperfect score means that no payment at all.