A credit report contains your identifying information as well as your credit history. Overall, your credit report includes information such as:
- The number of your active accounts
- The number of your new accounts
- Public records (arrests, lawsuits, etc.)
The report basically sums up your whole financial history. Your credit report will be given a score depending on your credit history.
Your credit score is determined based on how responsibly you have managed your credit in the past. If you have done a poor job managing your credit, you will have bad credit. If you have done a good job of managing your credit, you will have good credit.
A good credit score is anything from 670 to 850; this is excluding the fair credit score range of 580 to 669. You will receive a good credit score by paying credit back on time or even early. Generally, being a good debtor to your lender will help you get a higher credit score.
A good credit score will tell all your future lenders that you are a responsible borrower. The advantages of having a good credit score include:
- More lenders are willing to give you credit
- Lower rates on loans or financing
Overall, the better credit score you have, the easier it will be to receive credit from lenders. The same cannot be said for having a bad credit score.
A bad credit score can range from 300 to 579; this range does not include the fair credit score range of 580 to 669. You will get a bad credit score when you miss payments or are late paying back your lenders.
Having a weak credit score will be like having a financial storm cloud over your head. A bad credit score will cause you to financial disadvantages such as:
- Being rejected for financing by most lenders
- Higher rates on loans or financing
Overall, a bad credit score will make it hard for you to get reasonable rates on new purchases, if you can even find a lender that will accept you.
How Your Credit Report Is Used
Your credit report will be used by lenders to get a very specific idea about what kind of debtor you are. They will be able to see how often you paid your credit back on time or how often you have missed payments. Lenders can see all the information listed on your credit report and other related financial history. Each lender has their own criteria for accepting debtors depending on your credit score. Generally, lenders will be more eager to accept a person with good credit over a person with bad credit.
Learn more about the Basics of Credit here
Common questions
Can't I dispute these items myself for free?
Yes. You have the right to dispute inaccurate information in your credit file yourself, at no cost, by contacting the credit bureaus directly. Clients come to us for the process, the follow through across all three bureaus and the direct creditor interventions, not because self disputing is unavailable to them.Will working with Zinu hurt my credit score?
Disputing an item does not lower your score, and our review does not involve a hard inquiry on your credit file. Scores can move in either direction during the process as your report is updated by the bureaus.Do you guarantee a specific score increase?
No. Zinu Credit Repair does not guarantee specific results, and individual outcomes vary based on your unique credit situation. Any company promising a guaranteed number of points is one you should walk away from.