TopConsumerReviews.com is a world-leading consumer product review site. We provide detailed reviews and ratings for thousands of products and services.
A consumer's credit history is the barometer for their financial health.
There was a time when good credit was only important in securing a loan for a large purchase, such as a house. Nowadays, a person's credit history affects every aspect of their life, from jobs to rates on car insurance. Consumers with poor credit will have a lot of doors closed to them.
There are three major credit reporting agencies in the United States: Equifax, Experian and TransUnion. Each agency compiles a credit report on consumers based on their financial histories. Financial histories include bank accounts, credit card accounts, auto loans and even bankruptcies and foreclosures. Any time a consumer has taken out credit, it is included in their report.
Credit reporting agencies use that information to assign a credit score to consumers. The score is ascertained through calculating a mathematical algorithm, which extracts data from the report to generate a three-digit number. Scores can range from 300 to 850. Consumers who have a credit score of over 700 are considered financially stable and desirable individuals with whom to conduct business. Individuals with scores under 500 generally do not secure new loans or credit, and can be subjected to much higher interest rates than their financially-stable counterparts.
There are many reasons why a good credit score is helpful.
In addition to resumes and interviews, employers also have begun to give credence to potential hires' credit histories. In a recent nationwide survey, 69 percent of employers admitted to using an applicant's credit report as part of the hiring process. The Fair Credit Reporting Act requires any employer who wishes to view a potential employee's credit report to first seek permission from the person. Persons with higher credit scores are seen as more honest, hardworking employees and employers will lean toward hiring someone with an excellent credit score over someone with a poor one.
Credit card companies also use a consumer's credit score to determine whether they wish to extend credit to that individual. Consumers who have excellent reports can expect to receive unsolicited offers from credit card companies quite frequently. Credit card companies want to do business with those who are financial stable, offering lower interest rates and other incentives to encourage them to open accounts.
Mortgage lenders also tend to provide better interest rates and loan terms for those with a good credit score. When applying for a mortgage, most brokers prefer consumers whose credit score is at 700 or higher. These are borrowers who have solid financial lending histories and are seen as very low risk for defaulting on a mortgage. Those with scores under 700 can find themselves subject to higher interest rates, which in turn results in larger monthly payments.
Utility companies also determine whether to provide service based on a person's credit score. Most utilities are paid for after they have been used by the consumer, making this a very risky venture for the utility company if a person has bad credit. Utilities have little recourse other than stopping service if a person fails to pay for the gas, electricity, water, phone or cable services they already have used. If a consumer has a bad credit score, it can affect whether a utility company chooses to provide service. TopConsumerReviews.com has reviewed and ranked the best credit repair services available today.
Top Consumer Reviews Articles
TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.
Credit Reports In The News
ZURICH (Reuters) - Credit Suisse (CSGN.S) said on Thursday that a Bloomberg report that Switzerland's second-biggest bank was considering slashing its workforce by hundreds of jobs was not accurate. " ...
Published: Thu, 15 Nov 2018 04:47:00 GMT
It draws on the information in your credit reports to classify you into a category of borrowers and forecasts your likelihood to pay back any debt you take on. A high score is good, while a low score ...
Published: Thu, 15 Nov 2018 06:30:25 GMT
PEACHTREE CORNERS, GA (November 15, 2018) - Alogent (@AlogentCorp), an innovator in end-to-end enterprise payment processing, content management, and digital account opening solutions for financial in...
Published: Thu, 15 Nov 2018 15:27:00 GMT
There's little good news for farmers and ranchers in the Kansas City Fed's report on the agricultural economy for the third quarter of 2018. The Fed says farm income and credit conditions continued to ...
Published: Thu, 15 Nov 2018 10:57:00 GMT
Get the intelligence you need: news and information that is changing your industry today, hand-curated by our professional editors from thousands of sources and delivered straight to your inbox.
Published: Thu, 15 Nov 2018 06:51:00 GMT
A former employee has been charged with identity theft for allegedly stealing customer credit card information from the owner of Sugar Shack exotic dance club. A criminal complaint alleges that Daniel ...
Published: Thu, 15 Nov 2018 13:49:00 GMT
A little less than one-third of employers who employ background checks on job applicants check their credit as part of their research, according to a survey from Career Builder. While the Fair Credit ...
Published: Fri, 26 Oct 2018 07:07:00 GMT
NORFOLK, Va., Oct. 29, 2018 /PRNewswire-PRWeb/ -- Dominion Vision™ CRM, powered by CRMSuite, has broadened its integration with 700Credit, the industry's leading provider of credit reports, compliance ...
Published: Mon, 29 Oct 2018 15:08:00 GMT
[Question]I remember reading a while back that everyone starting this fall will be able to freeze their credit report for free. Is this change effective now, and what do I need to do to get my free fr...
Published: Fri, 21 Sep 2018 12:30:00 GMT
- View Full Site -
Reproduction in whole or in part in any form without the express written consent of TopConsumerReviews.com, LLC is strictly prohibited.