I am often asked why do I care so much about Credit Reports? Do I eat breath and sleep credit reports? No not really I do have other things I enjoy outside of credit reports and scores.

I would guess the main draw for me is educating consumers on a often misunderstood topic. I never knew what a online credit report was until my mid twenties when I went to buy a car. I knew you need a good credit score, but even that was a mystery to me. After that first car buying experience I decided I should learn a little more about the industry and how it all works.

After working for years in the industry I would say the most important thing you can do as a consumer is to pay your bills on time. Late pays really effect your credit sore, and stay on your report for along time. The next big thing is to not fall into the habit of applying for credit often. This puts a hard inquiry on your credit report, which will hurt your credit score.

Credit worthiness is an awesome tool that regardless of income, social standing, race, sex all consumers can achive, and with that can meet and exceed all kinds of goals. Whether that is to own a home, a car, or multiple homes.

The purpose of calculating credit scores is obviously to gauge the credibility of loan applicants based on their credit histories. A study of your credit history portrays the probability of you repaying any balance due on your accounts. A history of payment of bills, lines of credit from various creditors, the balance of debt on various accounts and the number and type of credit accounts that you have are some of the basic factors that determine your credit score – along with its variation and deviation from your available credit limit. In a nutshell, if you have large account balances and use most of your available credit, and you have a lot of accounts, your credit score will likely go down.The credit limit is the upper limit of money that you can obtain (you should not go anywhere near this amount to maintain a good credit score). This amount is supposed to be repaid to the creditor within a predetermined time frame, usually 30 days.

The Equal Credit Opportunity Act (ECOP) restricts a creditor from generating biased credit scores based on the gender, racial identity, color of skin, status, place and region of origin and other such sociological factors of a consumer. If you are denied credit, the creditor has to state explicitly the grounds for the denial. If you feel that you have been denied credit on a basis other than your credit score, you can and should file a complaint with the Federal Trade Commission (FTC) and the Attorney General in your state.

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