1. Many Credit Reports aren't Created Equal
What this means is that the interest rate of yours is somewhat determined by whichever credit report your lender uses. This might not seem important however, a few issues might imply the difference between being classified from the no credit risk category to the a certain amount of credit risk group or perhaps the default credit risk category. This can mean having many percentage points added to the loan of yours. Be sure to check out which reporting agency your lender is employing and if you've a better report with another agency, ask the lender to think of that report instead. With respect to the situation, it may be a good idea to switch to a lender who primarily uses a unique reporting agency.
2. In which you Got Your Credit Card Can affect Your Credit Score
In the past, your credit score was typically calculated by rating credit cards issued through national banks more than ones listed through hometown credit or banks unions. Even though this calculation is rarely used anymore, several lenders continue to calculate the score of yours this way. Owning a charge card issued through a neighborhood credit or bank union might be hurting the credit score of yours in case you end up with a lender using this outdated credit score calculation.
3. The Credit Report You obtain May Never be The One Your Lender Sees
Whenever you purchase a money mutual credit score (www.peninsuladailynews.com) report, the score you see is based on a specific calculation by that reporting company. If a lender looks at your score, they may be using a different calculation and very likely a variety of various scores based on calculations associated with certain risks (auto loan report, bankcard score, mortgage score, etc.). So don't be surprised if the lender replies to your loan request differently than you expected.
4. There will probably be Errors on Your Report
It is believed that up to a quarter of consumers are affected by mistakes on their credit reports every year. Picture paying a greater interest rate or even not getting approved at all due to an error! To avoid this, make sure to check out the credit report of yours at least once a year for mistakes. You have the correct to one free credit report each year out of each recognition agency. Only you will be able and willing to find the errors so prudence may be your best bet here.