How Does a Creditor Determine Whether to Grant You Credit?

Credit 101

How does a creditor determine whether to grant you credit? For many years, creditors have been using credit scores and credit scoring systems to determine if you'd be a good risk for a loan or credit card. More recently, credit scores have been used to help determine what rates you pay for insurance. What is a credit score and why is it so important?

What is a credit score?

Credit scores and credit scoring systems are used to help creditors evaluate the risks associated with granting loans and extending credit. Everyone has a credit score. Information about you and how you have handled your credit is captured onto a credit report. How you have paid your bills, the number and type of account you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a system, creditors are able to compare all of this data against the credit performance of other consumers with similar profiles. A credit scoring system assigns a point value for each factor and helps predict who is most likely to repay a debt. The total number of points is combined to form your credit score. Your credit score predicts your creditworthiness or the probability that you will repay a loan / credit in a timely fashion. The higher the credit score, the lower the risk associated with extending loans and credit. The lower the credit score, the higher the risk associates with extending loans and credit.

Because credit reports and credit scores are so important in today financial world, it is imperative that you monitor these closely. I recommend that you contact the three major credit bureaus to obtain a copy of your credit report at a minimum of every 90 days. To obtain a copy of your credit report contact:

Equifax: (800) 685-1111

Experian (formerly TRW): (888) EXPERIAN (397-3742)

Trans Union: (800) 916-8800

Just as there are three major credit bureaus, there are three separate credit scores provided by each of them. All of these scores are developed utilizing a method Fair Issac came up with to ensure that an accurate picture of our credit risk is generated. Each score may vary slightly, as the information contain on each credit report from each of the three major credit bureaus is different.

When lenders and financial institutions evaluate your credit report and credit scores, they use information provided by these three major credit bureaus. It is imperative that you monitor these credit reports, as your financial future is contain on those pages. There are rights afford to each of us as consumers by law, which allow us to ensure that the information contained on these reports are accurate With the Federal Bureau of Investigation naming "IDENTITY THEFT" as the number one crime, it is imperative to maintain your credit profile in today's world. Don't let a theif steal you and your families financial futures!

For more information regarding your credit scores, credit reports or debt options currently available to you, please contact Gateway Credit Connection or visit us online at www.creditmonkey.com.

Michael Goff is the Co-Founder of Gateway Credit Connection, helping empower consumers to take control of their personal and business finances.

Gateway Credit Connection
15770 Dallas Parkway
Suite 1100
Dallas, TX 75248
469.547.4323
Visit us online at http://www.CreditMonkey.com

---

Google News Updated : Tue, 07 Oct 2008 08:49:19 GMT Nobel Prize awarded for AIDS, cervical cancer research - Los Angeles Times Times Online Nobel Prize awarded for AIDS, cervical cancer research Los Angeles Times - 1 hour ago Luc Montagnier dedicated his award to AIDS sufferers and predicted results on a "therapeutic vaccine" for the pandemic within four years. 2 AIDS researchers receive Nobel Prize Chicago Tribune Work tied to HIV, cancer earns scientists Nobel Prize Detroit Free Press People's Daily Online - International Herald Tribune - Philadelphia Inquirer - Hartford Courant all 1,117 news articles Publ.Date : Tue, 07 Oct 2008 07:01:27 GMT Red Sox squeeze past Angels, advance to ALCS - Washington Post Red Sox squeeze past Angels, advance to ALCS Washington Post - 1 hour ago BOSTON (Reuters) - The Boston Red Sox beat the Los Angeles Angels 3-2 on Monday at Fenway Park to advance to the American League Championship Series for the fourth time in six years. Rays, Red Sox will play for pennant Detroit Free Press Relentless Rays dominate ALDS MLB.com New York Times - FOXSports.com - Sports Network - Newsday all 2,394 news articles Publ.Date : Tue, 07 Oct 2008 07:48:05 GMT Scores homeless after Tibet quakes - CNN Xinhua Scores homeless after Tibet quakes CNN - 44 minutes ago (CNN) -- Nine people were killed in the pair of earthquakes that struck Tibet, China's Ministry of Civil Affairs reported on Tuesday, lowering the toll of 30 that had initially been reported. Government officials head to quake site in Tibet Xinhua Schools closed for safety after Tibet quake Reuters UK Aljazeera.net - United Press International - The Associated Press all 732 news articles Publ.Date : Tue, 07 Oct 2008 08:04:47 GMT UPDATE 1-Qantas jet hits turbulence from Singapore; 30 hurt - Reuters ITV.com UPDATE 1-Qantas jet hits turbulence from Singapore; 30 hurt Reuters - 1 hour ago SYDNEY, Oct 7 (Reuters) - Over 30 people were injured, some with broken bones and lacerations, when a Qantas passenger jet flying from Singapore to Perth struck turbulence on Tuesday and had to make an emergency landing at a remote Australian airport, ... Mid-air incident forces Qantas flight to land just after takeoff guardian.co.uk 40 hurt in mid-air jet 'incident' in Australia CNN International Bloomberg - The Press Association - BBC News - Flight International all 153 news articles Publ.Date : Tue, 07 Oct 2008 07:46:41 GMT New prenatal test may be less risky than amniocentesis - San Jose Mercury News ITV.com New prenatal test may be less risky than amniocentesis San Jose Mercury News - 6 hours ago By Lisa M. Krieger Building on the latest developments in DNA science, Stanford University researchers have designed a prenatal genetic test that appears to be just as accurate - but much safer than current methods like amniocentesis - by using a ... Safer prenatal Down's syndrome test found in US Reuters Blood Tests Ease Search for Down Syndrome New York Times Bloomberg - WebMD - Telegraph.co.uk - The Missoulian all 175 news articles Publ.Date : Tue, 07 Oct 2008 02:10:40 GMT 'Saturday Night Live' is buzzworthy again, thanks to Tina Fey as ... - New York Daily News Sydney Morning Herald 'Saturday Night Live' is buzzworthy again, thanks to Tina Fey as ... New York Daily News - 31 minutes ago Once upon a time, TV viewers would have had to stay up late to watch Tina Fey do her Sarah Palin routines on "Saturday Night Live. Alive from New York, Fey's Palin Paces SNL E! Online Palin may appear on ‘SNL MSNBC Boston Herald - Reuters - Washington Post - New York Times all 402 news articles Publ.Date : Tue, 07 Oct 2008 08:17:55 GMT Supreme Court opens term with cigarette marketing case - Los Angeles Times Canada.com Supreme Court opens term with cigarette marketing case Los Angeles Times - 1 hour ago The public lines up outside the Supreme Court on the first Monday in October, the traditional start of the court’s term, when justices hear oral arguments. Supreme Court Opens Term With a Tobacco Fraud Case New York Times Suit on Tobacco Ads Sparks Feisty Debate Washington Post USA Today - CNN - The Associated Press - Daily Press all 467 news articles Publ.Date : Tue, 07 Oct 2008 07:01:27 GMT Automatic Blogging RSS Parser

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks,... Read More

Fight Credit Card Fraud with Common Sense

By now, you have undoubtedly heard of credit card fraud,... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More

Fair Isaac Corporation Credit or FICO Score

As I am not from the US, I had no... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More

SuperCharged Secret 5, Credit Card Utopia

LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More

Boosting Your Credit Score To Get The Best Credit Card Deal

Making Your Credit Rating Work For YouOne of the basics... Read More

Always Avoid Payment Holidays

Once you've been paying off a credit card for a... Read More

Home Loans ? Repair Your Credit Before You Buy

Before you take out a home loan or make any... Read More

Credit Card Incentives

Credit card companies want your business. After all, lending money... Read More

What To Look For In A Credit Card

When you are deciding what type of credit card to... Read More

Finding Reputable Credit Card Companies

You're interested in getting the best credit cards for your... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

How To Read Your Credit Report

The Fair and Accurate Credit Transactions Act, signed into law... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

How Your Credit History Can Affect Your Life

Your credit history is an important aspect of your life.... Read More

Learning the Disturbing Facts about Credit Card Debt

When I received my first credit card in the mail... Read More

Identity Theft ? Monitor Your Credit Report

The recent security breach at credit card processor CardSystems Solutions... Read More

SuperCharged Secret 3, Credit Card Utopia

TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time... Read More

Credit Score - Reporting Your Financial Health

Credit score is one of the most basic, determining factor... Read More

Why Americans Find Predatory Lending Offensive

"Menis - the author translates as "indignant rage" - It... Read More

The Credit Card Surprise That You Need to Look Out For

Companies that issue credit cards want to make a profit.... Read More