{"id":69,"date":"2019-03-19T01:55:59","date_gmt":"2019-03-19T01:55:59","guid":{"rendered":"http:\/\/www.installmentloans.info\/blog\/?p=69"},"modified":"2019-03-19T01:55:59","modified_gmt":"2019-03-19T01:55:59","slug":"facts-on-credit-scores-and-credit-reports","status":"publish","type":"post","link":"https:\/\/www.installmentloans.info\/blog\/facts-on-credit-scores-and-credit-reports\/","title":{"rendered":"Facts On Credit Scores And Credit Reports"},"content":{"rendered":"\n

When you want to take out a short-term loan, such as a payday installment loan, you will have a credit report on file with a credit bureau but it will not affect your ability to borrow money. However, all lenders are required by the federal Fair Credit Reporting Act (FCRA)<\/a> that U.S. consumers of payday installment loans and other similar loans be entitled to a free credit report each year. This is to ensure that consumers stay informed, can fight identity theft, and will get fair treatment.<\/p>\n\n\n\n

The Credit bureau stores and maintains all information regarding your borrowing and repayment habits that are reported on a systemized credit report. The credit report will also include your personal identification, your credit history, and public records that directly affect your credit rating. The purpose of a credit report is to develop a standard to report credit ratings. Also, credit reports are important because they serve as the source for your credit rating and score.<\/p>\n\n\n\n

Definition of credit rating<\/strong><\/p>\n\n\n\n

A credit rating measures your consistency of repaying your loans, such as a payday\u00a0installment loan, and other debts. If you neglect to make timely payments on your bills or a loan, you will be reported to a credit bureau.\u00a0 In simple words, a credit rating gives a glimpse of your credit worthiness.<\/p>\n\n\n\n

Definition of a credit score<\/strong><\/p>\n\n\n\n

A credit score is a figure that determines your credit risk and can affect the approval of a loan application. This is usually established by credit-reporting agencies, such as the Equifax and TransUnion, using a scale from 300 to 900. The higher your credit score, the lower the risk for the lender. Furthermore, there is also a so-called \u201cR\u201d rating in your credit score that shows your payment history. This rating ranges from 1 through 9, with an R1 rating as the best and an R9 is the worst.<\/p>\n\n\n\n

Certain Factors can influence your credit score that includes:<\/strong><\/p>\n\n\n\n