A Guide to Credit Scores


Some of the most commonly asked questions we receive here at personalloanforbadcredit.org concern credit scores. We have produced a guide examining and explaining all of the must-know aspects.

Where can I see my credit report
You can see your report from each of the main credit bureaus, Equifax, TransUnion and Experian, once a year. The U.S. federal government has created a website for all consumers to receive a free copy of their reports once a year from AnnualCreditReport.com.

Why is it important to know what my credit file says?
All of your credit activities are recorded within these files and are calculated into a triple-digit number of typically between 300 and 850. This number is used by prospective lenders to decide whether or not to grant you credit and at what rate. It is also important to check your file for evidence of mistakes or potential identity theft. You can get a free credit score or pay a small fee at MyFICO.com.

How is the credit score calculated?
The overall three-digit score is made up of five different aspects in different ratios. Those are:

  1.  Credit payment history
  2.  Amount of debt
  3.  Age of credit history
  4.  Types of credit
  5.  Outstanding credit and number of recent credit applications

What do the numbers mean?

  • A credit score of 800+ means excellent credit
  • A credit score of between 750 and 800 means very good credit
  • A credit score of between 700 and 750 means good credit
  • A credit score of between 650 and 700 means fair credit
  • A credit score of 600 and 650 means bad credit
  • A credit score of below 600 means very bad credit

I have obtained my credit file, examined the contents and requested my credit scores from FICO. There are some irregularities. Do I have any power to challenge these?
There are laws in place to give consumers powers to challenge errors on their credit files. The Fair Credit Reporting Act is a piece of federal legislation that mandates credit reporting agencies, banks and other credit issuers (credit card companies, lenders etc.) to rectify any errors. This highlights the importance of checking credit files every 3 months. It is vital to the health of your credit score to immediately take action once discrepancies have been discovered.

What should I do to invoke my rights as per the Fair Credit Reporting Act?
Once you have discovered the fraud or error(s) in your credit file, immediately:

  • Contact the three credit reporting agencies (Experian, TransUnion and Equifax) to tell them about the fraud or errors
  • Contact each of the relevant lenders, credit card companies, banks or other credit issuers to tell them about the fraud or errors
  • Be prepared to provide documentation to help prove that the entries are erroneous or fraudulent. You can follow he Federal Trade Commission guidelines about what kind of documentation you will need here
  • If the incorrect reporting is due to mistakes (rather than fraud), you must request for these to be removed.
  • If fraud (rather than mistakes) have been uncovered, next you need to place a fraud alert on all of your credit files. This means that all credit issuers will be told that you have been a victim of credit fraud. If any subsequent credit applications are made during the alert, you will be contacted for verification purposes to ensure legitimacy.
  • Close all of the credit accounts that have been affected by the fraud by contacting the relevant fraud departments.
  • File a complaint with the FTC.
  • In the instance of fraud or identity theft, file a police report.
  • Be vigilant and pay very close attention to your credit file in the future. We recommend every 3 months for mistakes and every month if you were a victim of identity theft or fraud.

Regardless of your credit score, personalloanforbadcredit.org can help all consumers find affordable and competitive personal loans, car loans and short term loans (subject to state laws).


We are even able to introduce you to lenders that can provide finance options to those with no credit history at all.


Click here to find out how we can help you!

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