Anyone who has taken out a loan of some sort, applied for a new job, or rented an apartment knows how much your credit score matters.  Think about it, most employers are even pulling your credit.. insurance carriers are pulling your credit… and of course the lenders are too.  What is the big fuss about someone’s credit score?  Well, one thing I have learned over the years is, it is probably one of the most important things in our life! That sounds bad, but really it is.  How can a 3 digit number that no one has any idea how it is made up, have such a large impact?

In today’s economy a lot of consumers are finding out the answer to that question.  People trying to refinance their home are being faced with the fact that their bills have fallen past due and now they can not get a loan.  Consumers are trying to find new jobs because their employers are going out of business. However, they are not getting that job because according to their credit score they are a “high risk” employee who can’t take care of their personal finances.  So, why would they hire you if you can’t even take care of your own bills?  Insurance premiums are going up so consumers are looking for new insurance companies, but finding out that their rates might not have been so bad compared to their new rate estimates they have received.  Why?  The insurance company is pulling your credit for things such as auto policies, because they say that statistics show your credit score has a direct impact on your driving skills(better chances of NOT getting in an accident) and your ability to pay your bills.  They think that those with bad credit scores are going to get in more wrecks and not pay their bills? Unfortunately, there has been some controversial findings that have been known to show some truth to that statement.

What makes up a credit score?  First, you need to know that the range of your credit score can be anywhere between 350-850.  Secondly, you need to know that there are 3 different credit reporting agencies (Transunion, Experian, and Equifax) where your lenders can report your credit history to.  Thirdly, there are a combination of things that make up your credit score such as your payment history on credit cards and loans, your total outstanding debt versus available credit, how long you have had the loans/credit cards open, how many people have pulled your credit (inquiries) and a whole bunch of other “unknown” factors. So now you know who pulls your credit, why people pull your credit, and what makes up your credit score. How do you fix it?

The first step is getting in the right direction regarding your credit is to become educated on everything that is linked with your credit score and what is on your own credit.  Then get with a company that deals with credit repair and walk through the process with them on FULLY understanding that credit report(s), and how you both are going to work on getting it better.  When searching the internet, look for credit repair sites.  

Companies like Leadpile- The World’s Largest Online Exclusive Lead Exchange-  deal a lot with this lead type and understand that the companies buying these leads really are out there trying to get your credit score higher.  Then your credit score does not affect you getting that next job, next insurance policy or paying REALLY high interest rates.