Real Estate Innovation

Can Others Actions Affect My Credit Score Negatively?

Nothing is a more important part of your personal finances than your credit score. Lenders will use it to decide if they will give you a loan and at what interest rate. It can literally be the difference between getting a nice home and being turned down for a loan. Even with how important they are, many people donat understand how credit scores work and what factors make them fluctuate up and down.

Even if you do all you can to improve your credit, the question still remains: Can others actions affect my credit score? Unfortunately, the answer is yes. The good news is that there are many actions you can take to limit the damage to your annual credit report.

Credit bureaus have lots of files on your financial history and credit. The sum of all this information is represented by a three-digit number. The most commonly cited score is the FICO score because it is an average of scores from the three major credit bureaus. Myfico service can allow you to access your FICO score and keep current on your credit.

Credit scores change over time, as they are continuously updated with new information about your accounts and credits. The amount of money you owe in total, as well as the kind of debt you have and your payment history goes into your credit scores. Pure length of credit history will have an effect as well.

Payment history is the biggest factor that affects credit, and one of the ways that others can affect your credit score is if companies wrongly reports you as an unreliable bill payer. This does happen more than you would think, and it may be a battle to get the incorrect information changed.

There are many people who can talk about how one mistake in a company’s accounting department gave them trouble for years, as they could not get the problem fixed with companies, debt collectors or credit bureaus. You do have the law on your side, though, so most of these issues are eventually resolved in the customer’s favor.

Check your credit report. If your score is a lot lower than you expected, you should check if a credit bureau has incorrect information about your financial profile. Youall usually already know if they problem is misinformation about payments, but the incorrect information could be coming from other sources and causing your score to be low.

So, Can the actions of others affect my credit score? As we have seen, the answer is yes and no. Other people’s mistakes can unfortunately lower your credit score, but by being proactive and on top of your credit you can fix those mistakes and get your credit back to where it should be.