Understanding Your Credit Score

Understanding Your Credit Score

When you look at your personal credit score there are some things you might want to understand about it. The first thing to understand about your credit score is that it is based on a compilation of issues that usually go back 10 years.

Anything that might affect your credit score in the last 10 years so as a series of late payments. Is included in your score and using various computerized algorithms that take into account things like late payments (they usually allow you a couple before the computer system starts systematically gnawing at your credit).

Understanding Your Credit ScoreConversely, if you successfully pay off a loan or bill or credit card, that information must appear in your credit report and the agency must update your credit score.  In what could be called “these are the times that try your soul,” you may find that it is easier for the credit agency that is making the report to continue carrying you as a late pay, when, in fact, you hare on time and paid up. That’s when you have to open a ticket with the credit reporting service, being sure to copy the paid up vendor so they will know what is going on and can take action from their end. You may also want to copy the attorney general’s consumer affairs division so that they will also know that the credit reporting agencies are up to their old habits again.

Imaging getting a call from a collection company on a bill that was paid up. Don’t think it can happen, it can and the collector just doesn’t believe you even if you fax him the first 14 pages of the paid up loan agreement and the first Book of the Bible. It’s just the credit service doesn’t make any money on you if your accounts are paid up and your credit score  should have changed.

Usually a stern letter from the attorney general is all it takes to have this fixed, but sometimes it can raise more tummy acid than not as you try to fix the mess they leave you. Unfortunately, credit reporting services are not geared to “paid up” clients so that, unless otherwise noted in very formal language and many times, they will keep you in their database, waiting for some second or third-rate collection agency to try to collect your paid up debut. If this happens, your only out is to counter sue both the collector and the agency, something neither likes.

You know, it’s funny just how a counter suit will sweeten your credit score. The best part is that since most collection houses maintain local offices in most states you can sue in your own jurisdiction and have the credit house fight the suit in your jurisdiction, even if they have to fly a team of lawyers 3,000 miles to do so. It’s a nice feeling, now, isn’t it.