Last Post On : July 28th, 2013 - Sunday
How To Improve Your Credit Score?

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Use Your Equifax Credit Score To Stay Ahead

Equifax Incorporated is a global leader in the financial information market and has been in business since 1899. This financial model is used for matters relating to finance, credit, income, public record and so on. By using their knowledge to analyze these key areas, Equifax makes a great tool for financial strategies. Business credit is something Equifax credit score deals with extensively as well as fraud detection, which is something this agency takes seriously while shielding its over 400 million  credit holders the world over.

Since a lot of lenders would like to have access to the general public’s records on financial decisions, the Fair Credit Reporting Act protects people by only allowing specific businesses to have access to these records. It is advisable to check your credit score occasionally in order to maintain good financial health.

Credit scores can be a thorny issue with many people, especially those who have purchased three-in-one. Credit bureaus do not make it easy for people either, especially those who have low credit scores that differ among different credit bureaus. For people familiar with Equifax credit score, Equifax sells FICO score to its customers and it is common to hear the term Beacon used in reference to credit scores as sold to businesses. Typically, this kind of score will range from 350-880.

FICO is the most common number cruncher in the market and it works like consultants who calculate consumer’s information but it does not hold their information. By working with lenders and other service providers, the company tries to figure out people’s behavior and predict how they will handle their credit. They use complex mathematical algorithms to figure it all out and sum it up to a number that represents what they think about an individual’s financial situation. This is valuable information in the lending industry and companies, like insurance companies and other lenders, are always lining up to get a more accurate picture of their clients’ financial conduct.

Data is assembled from lenders through third party consultants who are better at math and that is how you get your credit score. This little report will include information about where you work, live, how good you are at paying bills, if you do pay your bills that is, and so on. It would also show if you have ever been sued or filed for bankruptcy. 

When you receive your credit score, there is a chance it is wrong and this is actually quite normal. The Fair Credit Reporting Act allows anyone to dispute any detail on the report and facilitates the correction of the same. It is quite easy; Equifax reports come with instructions on how to go about filing a dispute for errors. There is also a link that can be used to submit the dispute.

Errors can also be submitted by mail after a letter is written highlighting the errors; such a letter can be sent to Equifax’s dispute address in Atlanta Georgia.

The FICO scoring mode is what TransUnion and Experian use to calculate their scores and Experian’s score ranges from 300-850 while that of TransUnion ranges from 330-830. Because lenders and creditors do not usually share data among the credit bureaus, your credit score will be different depending on the credit bureaus. Some people have a problem with this when they find their credit score does not match with that of a different credit bureau.

Ordering your Equifax credit score can be done through their official website, where you can order your report for just $15.95. If you are job hunting, have been denied service or are living on welfare, then the Fair Credit Reporting Act allows you to order for free. Should you use online vendors to order your three in one report, you will also get a report from Experian and TransUnion as well.

Identity theft is a growing concern and people are encouraged to check their credit score regularly in order to spot any unusual activity. Unusual activity should be reported immediately. When you report the incident to Equifax, they can then take the right steps, flag your credit report and stop any further theft. A fraud alert is used to make it harder for theft to continue, as more information is required to confirm your identity, therefore making it hard for anybody to steal.

Reporting identity theft is easy and can be done online or on the telephone by calling the Equifax headquarters in Atlanta at 1-800-525-6285.

People with better credit scores have a better chance of getting low interest loans and credit because they are considered more credit-worthy while those with low scores are considered more volatile. Since each major bureau uses its own formula to calculate credit score, results from any two companies may not be identical. Your Equifax credit score is calculated using Beacon while Experian uses FICO and TransUnion uses Empirica.



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