Bad Credit Score Research Paper

Negative credit has a significant impact on your ability to get a car or home loan. If you're approved for a loan with a low credit score, chances are you'll be paying a higher than normal interest rate. Poor credit causes you to pay more money to borrow, when compared to people having a higher credit score. The highest possible credit score is 850. The average credit score is 680 in the United States. Any score above 700 is considered a good score. Credit scores take time to increase, but it seems they can decrease almost overnight. Despite the intimidating aspects of credit, you don't have to be a financial genius to have a high credit score. Avoiding credit mistakes can mean the difference between receiving a 600, or a 750 credit score. Know the Scores
In other words, if a lender doesn't want to report your credit history to the credit bureaus, there is no one to make them. This is obviously to your detriment if you're an excellent borrower, with a good payment history. For example, if you have a loan with a credit union, it may not be reported with all three credit bureaus. Credit Unions as a whole, are notorious for not reporting to all three credit bureaus. Installment Loans Believe it or not, paying off installment loans early actually does more harm than good. Installment loans require a certain number of payments over a specific amount of time. An example of an installment loan is a home, or car loan. The longer you keep an installment note in good standing, the higher your credit score will go. For that reason, its better to keep installment notes for the full term of the loan, if its financially feasible to do so. Knowing your credit score, and properly managing your accounts is the key to maintaining a good credit score. http://www.money-zine.com/Financial-Planning/Debt-Consolidation/National-Average-Credit-Score/ http://www.credit.com/products/credit_reports/The-Top-10-Credit-Mistakes.jsp