Everybody knows that there are problems with the economy today. A recession took a huge toll on the population all around the world and many people are left without work and without a means to provide for their family. On top of this, many of them still had prior obligations, such as a loan and a mortgage, that need to be taken care of. Countless homes have been foreclosed on and many people have defaulted on their loans. These things are not only very difficult for people to go through, but they also affect how well people are able to do financially in the future.
Many people know what a credit score is and have heard the term a lot, especially in this recession. This score can be seen as the most important thing that you have to worry about with your finances. Having a good score can make you and having a bad score can break you. People with good scores are often given breaks on interest rates and may be able to push back pay dates for loans. People with bad credit are often denied from getting mortgages and are denied loans. They may even be denied from being able to acquire certain credit cards.
There are three main companies that work with the government and credit agencies to come up with your report and credit rating. These companies all have their own scoring system, but they tend to use each other for information about certain people. They all have reports that are able to be bought by banks and lenders, as well as the individuals themselves. After all, knowing your score is very important when it comes to being able to secure your financial future.
The three companies are called Equifax, Experian, and TransUnion. They all take in your information about loans, bank accounts, jobs, mortgages, bills, and payments on certain things. Even phone bills are counted in their equation. Then they all come up with a way to rate how worthy you are of being able to borrow money for the sake of spending it. Making a good impression by paying all of your bills on time and making your monthly mortgage payments can help you to go far in life and have a very good rating and score. If you do not pay things on time and have trouble making your full mortgage payments, then life can be made very difficult by your score.