Can anyone explain Credit scores to me

a reply to: Partridge

Most credit card companies use machine learning models or neural networks consisting of 100s if not 1000s of metrics and complex combinations between them taken into account. There is no simple way to give a reason (except for low score) as the models are black box.

These models are used on top of the bureaus, so even you have a good rating from the bureau, the model can still decline you.

Basically a credit score is the credit providers level of confidence in your ability to take on debt.

Think bean counter in an anonymous office cubicle.

a reply to: Ravenwatcher

a reply to: Partridge

If you are refused credit you can get a free copy of your credit report from the agency who refused you.

On another note you can get a free credit report from each of the three credit reporting agencies every year.

Request one every 4 months from one of the4 credit reporting agencies. You will have the year covered.

originally posted by: tanstaafl

originally posted by: nugget1
Using your cards and paying in full each month gives you a loe=wer score, too; they want that interest (free) money.

We have ALWAYS paid ours off fully every month (I won't pay their extortion_, and my credit has always been excellent, so this simply isn't true...

I have never checked my credit score, so I can't vouch for the validity. That's just what my SIL (bank managerr) told me is what it takes to get the very highest credit score.....back in 1986, so things may have changed-a lot! lol

I hope you had a wonderful Christmas

a reply to: boatguy12

Thanks for this I had no idea.

Your credit card statements have terms that say you must dispute the invalid charge within 30-60 days, this time varies by US state. If you did not dispute the charge, and the CC agencies refuse to address the issue, you must hire a lawyer to help you. This may involve a court case.

If a debt-collector gets the debt, it may be illegal in some states for them to harass you. You may have to hire a lawyer to help you in this case also. The lawyer should know what the collector can and cannot legally do.

Unfortunately the law is too complicated for the average person to navigate without a specialist. Thus we need to save some income for a lawyer for a case like this.

During lockdown, when most businesses had big problems hiring qualified people, I had a case where I got a medical bill 4 weeks after treatment, which is normal for this corporation. Their computer system sent the debt to collections, which was in error. I talked to the medical billing dept and they corrected the issue. They understand that bad press can hurt their business and reputation. In many cases the billing dept is the only place that can correct bad charges, so be nice to them.

Understanding credit scores can be a bit tricky, but I'll try to simplify it for you. Credit scores are based on various factors, and it's not just about having zero debt. The age and mix of your accounts also play a role.

Losing long-term accounts can impact your score because it reduces your credit history, which is a key factor. However, paying off your credit cards on time is a positive step that should eventually improve your score.

For more personalized advice or if you're considering your credit for homeownership, you might want to consult with a Mortgage Broker in Bridgend. They can provide insights on improving your credit and securing the right mortgage.