Have you ever had trouble in decrypting credit reports issued by banks? I certainly have gone through the grind before getting my loan approved; not knowing what is it that helps them to decide in allotting or rejecting a loan.
For all you people who have had a tough time knowing why you are not worth it I have some good news! CreditKarma.com, a site that provides your credit scores has developed a tool that generates your credit scores free of cost. The so-called Credit Report Card gives individual scores of important constituents of your real credit-report present at “TransUnion LLC”.
This tool ascribes grades that range from A-F based on five key factors, which affects your credit scores largely. Wish I had something like this when I was applying for a loan, but never mind. The factors that influence credit scores are:
1. Utilization patterns of credit card
2. The average duration of existence of the borrower’s payment accounts
3. Total percentage of payments that’s made on time.
4. Number and variety of credit card accounts.
5. Number of times the borrower approached the bank for credit.
Not only this, you can know more about their debt to income ratio and debts. Although these two factors do not contribute to deciding the credit scores, they definitely are important factors that lending agencies consider before they approve or evaluate your loan application.
All you have to do to get your credit scores, as I did is to register on CreditKarma by keying in your Full name, birth dates, complete address and SSN (social security number) such that the website could find the relevant data. However, CreditKarma does assert that it doesn’t store your social security number thereby keeping your information safe and private. I feel that’s not a bad deal at all! I had to verify my information on loans such as home loans, mortgages, student loans, auto loans, etc. as this credit report fetches information from the credit file on a real time basis.
I do recommend that before checking out your credit scores, be ready with all the necessary information, as wrongly entering such information would generate reports with errors. If you fail to verify your information then you would not be allowed to re-login for quite some time. It might not give you the same report as a lender generates before determining your credit worthiness as different lenders have different ways of determining their lending standards.
However, this tool definitely gives a user a bird’s eye view of their current credit worthiness and gives handy tips on ways one can increase their credit scores. I could also compare my scores with over 400,000 sample credit score reports present on CreditKarma.com, something I feel gives you a clearer picture as to where you stand.
I feel this is a welcome move as this helps you to assess your credit worthiness during credit crunch that America is experiencing. There are many websites like credit.com having, a tool that determines credit scores based on simulation of the answer you give. An online mortgage-lending firm called Quicken Loans Inc. offers a website called Quizzle.com that generates credit scores based on Experian model.
