Credit scores, information you should know about your credit rating and what effects it


	Credit Scores and the credit scoring system is a hot button for conversation today. It seems everyone I meet has issues with the way their credit is being reported, and for the most part, they are correct. It is estimated that currently 70% of all credit reports contain errors that negatively effect someone's score. Whenever we start a discussion on credit reporting we must remember what the credit reporting bureaus are and what they are designed for. The credit reporting system was set up by lenders, for lenders. It is a for-profit system, not a public service, and not designed to help the average person. The credit reporting system's sole purpose is to grade risk and allow lenders to make maximum profits. In fact this system sells your information for a profit. Don't be surprised the next time you have your credit pulled you get 25 telemarketers calling your home, trying to sell you anything. The credit reporting agencies sell your information to marketing companies. These are called trigger leads and result in your credit being pulled multiple times which drives your credit score down. They make big profits and you pay higher interest costs.

	Now that we know that the credit bureaus are not here to help us, what can we do to improve our credit scores and lower our interest rates? Here are some tips that will improve your scores: 1. Pay your mortgage on time. The mortgage trade line contributes most to your credit score so if need be other things should go late before the mortgage. 2. Limit inquiries into your credit. Whenever your credit is checked your score goes down. Don't give out your social security number to people over the phone. Make sure you meet them face to face before giving out that information.








	3. Keep your balances under 50% of the high-end limit. When you are maxed out on your credit cards you are looked at as a higher risk and your scores go down. 4. Limit the collections on your bureau. One small collection account of $50.00 if left unattended alone will end up costing you a great deal more than the $50.00 would. Collection companies work together; if you ignore them they will sell your account to another collection company and then another, and then another, and by the time you know it that one collection account is on your credit bureau four times and is costing you 50 points on your score. You need to try to settle any collection accounts that are currently on your report.




	If you follow these guidelines and give it a little time you will see your scores go up.

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