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Credit scores are a mystery for many millennia

Credit scores are a mystery for many millennia
July 20
14:20 2014

As we are living in a world where finances are of prime importance and that any leeway that we take up can result in us losing considerable amounts. Therefore, it is very important that any and everyone who is of an earning age should be well known to aspects that they need to take care of so as to remain stable financially and be able to garner help in the future, credit of any person is very crucial for the latter. It not only is a tool that enhances your chances of obtaining a loan, but it stands as a statement of your financial standing and well being and hence is a reflection of you in all the financial matters, it shows how responsible you re when money is involved and many more things.

However, sadly all of this is not a common knowledge, in a survey that was conducted by Consumer Federation of America it was noted that the older citizens were much aware of credit as compared to the people who fell in the age group of eighteen to thirty-four years. It may not be very astonishing that the older ones knew much more about it. However, it surely is alarming, owing solely to the reason that people who are young they are just starting. They are on the path to build their credit, if they are not aware of its technicalities and importance how will they decide which habits are good or bad for the build up of their credit score.

When it comes to young people student’s loans are what with which they get introduced to the world of credits. The way they deal with this loan, and how they pay it off is what decides the overall picture of their credit. They can have an impeccable start if they understand the intricacies of credit but in case they are unaware of it, chances are they will ruin all of it being unaware of the implication of not making payments on time.

The problem here seems to be that people are having a hard time grasping, or they are completely unaware of which factors are important and which aren’t for determining their credit score. It is more probable they guess that their current age will be a factor which is true. The problem is just the real deal is much twisted than this, age is an important factor but for the lenders they only consider an average of your age your current age is not even mentioned on the real report and in no way affects the score you have. In the survey, we earlier talked about, only 6% of all the people were able to answer properly as to what are the factors that hurt their credit scores actually. Things like the number of inquiries that have been done into your score or the many accounts that you may have opened are some of the factors that really affect your credit scores.

People are not very understanding of what a bad credit score implicates. On the upside, people do get this that when they overuse their credit cards or make a late payment their credit score is pushed in jeopardy. Many of the people surveyed were aware that the companies that claim to be able to fix credit scores did not accomplish that half of the time.

The best way to know more about your credit score is that you get your own credit report and study it thoroughly.

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