Average National Christian Credit Scores
National average Christian credit scores are calculated by the agencies who gather the information on consumer behavior and translate it into a numeric value, known as the FICO score. This is the magic number that lenders use when determining the risk level of an applicant. FICO stands for Fair, Isaac and Company, which is the company that created the current rating system used to determine the average national credit score. FICO ratings range from a low of 300 to a high of 850. The lower the number of the rating, the higher the financial risk. Just as personal scores fluctuate over time, these ratings fluctuate also, generally somewhere between 678 and 725.
Typically, lenders look at the FICO score as being highly predictive of an individual's lending risk. Although they may look at other factors as well, this number holds great weight in making financial decisions. For example, someone with a FICO rating of 780 would be considered a good risk because it is well above the average national credit score and shows lenders that this person is an excellent borrower.
As a group, the U.S. consumers in the 750-799 range have a delinquency rate of only 2%. This is considered to be better than national average credit scores. People in this range can expect the better financing offers and better loan terms (i.e., interest rates). "With him is the arm of flesh, but with us is the Lord our God to help us, and to fight our battles" (2 Chronicles 32:8). On the other hand, someone with a numerical rating of 550 would be considered a very poor risk. A rating of 550 is much lower than acceptable and demonstrates to lenders that this person cannot be trusted to pay back his or her loans on time and/or in full. Ratings above 620 are considered respectable by most lenders, but if a score is less than 620, most lenders start seeing red warning flags.
Ideally, the credit score should be higher than national average credit scores. In order to reach that goal, it is important to do better than most people when it comes to handling finances. For example, people with scores that are higher tend to have no late payments reported on their accounts. Also, they tend to have relatively long credit histories. People with lower than the average national credit score tend to make their payments late, miss payments altogether, and frequently open new accounts. Other factors that determine financial ratings include the proportion of balances to limits on charge accounts. These indicate that people tend to charge up their charge cards, leaving little room before they are maxed out. To keep a score higher than the average national credit score, keep the total balance on each card low in relation to the credit limit. A greater amount owed indicates greater risk and, thus, lowers the score.
An average credit score for Americans is around 600, which means that the average American pays too much for borrowed money because the loan percentage rates are based on this number. The best total would be 800 and the worst would be 350. But anyone can find ways to boost his marks by learning how to read the report. The person who has a low reading on his financial history can take a few steps that will remedy the problem. There are some things these people can do to convince lenders to give them a "second chance." They can negotiate with the creditors to see if new payment arrangements can be made on existing loans. Lenders may be reluctant to offer new terms if the borrower has missed payments, but if he is honest and lets the lender know that he is serious about changing his habits, anyone can find a way to boost your credit score and improve your financial picture. By being proactive, a borrower can increase the chances that his record will be above average.
It's important to know what these reporting bureaus consider when coming up with a person's score. They look at payment history, current debts, the length of the debt, how many times the borrower has tried to get new loans, and something called the "credit mix." The mix basically looks at the payment history of the loans on which the financial history depends, such as loan cards, a car loan, a mortgage, and bank accounts. Knowing that all these factors play into an average credit score, let's look at some ways to augment it. The first thing to do is to get a copy of the report. Each person is entitled to one free record per year. The only way a person can get this report is by asking. Don't assume reporting bureaus will tell the borrower if he needs to pay. After receiving the financial report, look for mistakes. The simplest way to boost your credit score is to correct mistakes. Are there charges you don't recognize? Is the spelling of your name correct? The borrower can search the Internet to find the best deal.
The second step to correct these mistakes is by writing a letter to the companies that are disputing a charge. Keep the goal to boost your credit score in mind. A third step is to study the "credit mix." A borrower can explore ways to even out his financial history. For example, if a person has 3 loan cards and a car loan, maybe it's time to open a checking and savings account as well. A good mix includes a well-rounded portfolio, from savings plans and borrowing plans. The wise borrower makes sure all debts are current. When you plan to work at this, you can no longer be care-free about spending. A person can reduce interest rates being charged if he works through the system and reduces his loan amounts. Never close accounts that aren't hurting you. To get a better average credit score, try to avoid doing something wrong. God wants us to use money as a tool in our life, not for it to control us. First Timothy 6:10 warns us, "The love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced through with many sorrows." Remember that all our money is a gift from God and we should always treat it that way. To boost your credit score is part of Godly stewardship.
Free Christian Credit Score RepairsGetting a free credit score repair is easy to do and can give a person many advantages when dealing with finances. With all the Internet companies offering expensive deals and tortuous strategies, consumers may be led to believe that repairing a loan history is difficult, and that there is no such thing as free credit score repairs. But there are resources galore to help consumers take the necessary steps to change their financial history, on their own, using honorable means. Before logging onto the Internet and exploring free credit score repair companies, there are facts that consumers need to be made aware of. Sifting through the enormous amount of information associated with these firms can be overwhelming, making it seem as though the simplest answer is to hire an expert service.
There are companies advertising free credit score repairs, advice and helps online. These companies may offer minimum services or introductory counseling to entice the consumer in and then charge absorbent fees. Getting help is important, but it is not as simple as paying an agency to remove debt from a financial report. True and valid information cannot be permanently removed. Some free credit repair agencies offer legal maneuvers that temporarily remove bad credit, but once an investigation is completed and the information is validated, the debt is put back into the report.
However, there is a free credit score repair service that is legitimate and can help consumers with long-term results. There are non-profit agencies that will work with consumers by aiding with debt consolidations or negotiations. These non-profits work with consumer affairs through government sponsored programs, addressing the growing crisis of over-extended debt in America.
If a person is looking for a free credit score repair, he must be willing to invest the time and energy it will take to accomplish this with integrity. Long term payment on debt owed is the best way to prove financial integrity. There are many reasons that debt can accumulate to an alarming level, and some reasons are out of our control: emergency or unexpected medical bills, loss of a job, personal crises. Whatever the reason, the result can be devastating to a report, causing financial hardships in other areas, and making free credit score repairs necessary.
God wants to be a help to His children in all their circumstances. A Christian can pray about his financial situation and getting free credit score repairs help. Then, trust that the Lord will help you. "Be careful for nothing; but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace that passeth all understanding will guard your hearts and minds through Christ Jesus" (Philippians 4:6-7). Even a good financial record will not give the believer peace and joy, but trusting God will in any situation.
Online credit report repair can be done through the use of wise and sound financial planning and management and a home computer. All individuals can and should request a copy of their credit report annually from each of the three major reporting bureaus to check for inaccuracies. The online credit repair of mistakes can then be done by filling out a form through the Internet on a reporting agency bureau's website. Once the matter is looked into and either resolved or needs further proof, the individual will be notified, typically through the use of their email or through regular postal mail.
Those seeking immediate online credit repair, should know that such reports can only change by allowing the appropriate time requirements to prove or disprove a claim. During the investigation, there will be a note attached to the individual's report, should any creditor wish to view it, that states certain accounts or information are under review. Although the time restraints associated with this process can be a hassle, the outcome is generally favorable for removing misinformation, or adding positive information. Notes on the online credit repair report warn potential creditors that their may be some inaccurate information contained within the report.
The main reason for using online credit repair services is to improve ones financial score and allow the requester the luxury of filing claims through the convenience of their home computer. In the past, in order to get anything removed or added to a credit report, the requester had to provide notarized proof of account opening, closing and balances. Today, with electronic communications so readily available, the reporting agency can fulfill an online credit report repair in as little as 2 days, assuming they are able to contact and retrieve the information they need to determine a final decision.
Christians should definitely seek online credit report repair help if there are inaccuracies on their credit report. A lower score, because of inaccuracies, or overdue bills results in a defamation of character. This defamation allows creditors to charge unusually high interest rates on loans, or higher premium rates for insurance. It also allows an employer to revoke an employment offer. The importance of having a good score is very high. Christians not only have to give an account of how they make their decisions during this lifetime, but to God Himself at death. "For it is written, as I live, saith the Lord, every knee shall bow to me, and every tongue shall confess to God, so then every one of us shall give account of himself to God." (Romans 14:11-12)