Credit scoring was an industry mystery for many years as financial institutions kept this information to themselves. However, since the Fair Credit Reporting Act, you’re entitled to one free credit report from “Annual Credit Report” each year, which helps demystify the process with credit scores explained.
Now, you can see who reported you for missed or late payments, if your credit score was checked and by whom, and the rest of your financial profile. When all is said and done, there will be a three-digit number that will quickly let lenders know how risky you are as a borrower and will affect your access to lines of credit.
If you are to take away one lesson about improving your credit scores range, it’s this: late or missed payments are bad, very bad. Payment history accounts for 35% of your credit score and includes everything from mortgage or rent to utilities, cell phone bills, credit cards, store charge cards, medical bills, auto loans, college tuition bills and student loans. If you are 30 days late on one payment, then it’s not likely to cause severe damage to your report. It’s only listed when you are “currently 30 days late” and even […]

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