Obtaining credit and its scoring

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Once it may happen that you can find yourself in an urgent need for a big credit line. However on your way to obtain it you will inevitably meet with some problems. Let's discuss some of them.
Credit score. I guess that you have seen sometimes a three digit number which is called credit score? And they say that the higher the number – the better the creditor's opinion. And if it's lower than some margin – then it's much more difficult. Yes – and it's pure truth of our financial system. There is the so called Federal Trade Commission that issued Fair Credit Reporting Act. Due to this document there are some general rules that determine the way in which all history of your payments and debts is collecting in a special file by authorized credit bureaus. Like Equifax or TransUnion.
So, they collect history. But what is enclosed here that creates scoring? The answer is in the whole complexity of different indexes of data – such as punctuality of past payments or the general length of your credit in time – all these quite objective factors gives you some points.
Thus – even if banks claim that you generally qualify, they can at least overload your credit line with really high interest rate relaying on your weak score (usually less than 600). Anyway by reason of FCR Act you have all the rights to ask any information about your credit history files and requests of third-parties in order to retrieve the knowledge how to react. Remember that it goes within 60 days. Especially it can be useful to understand the reasons of rejection.
The worst thing with your bad credit score is a total absence of this – if you are a recent immigrant or just begin your financial activity. How can you hook your credit?
Ways to get. Yes, there are some common means which you can use:
- Apply for a Secured credit card. It strongly decreases bank risks because you will be able to spend effectively no more than your account sum.
- Try to find a co-signer, somebody who possesses appropriate credit score and agrees to help you build the credit
- Just apply and get for any suitable card service if you are able to find it. There are different credit organizations with numerous individual programs.
Last but not least – keep in mind two things: check the correct filling of your credit report and think twice.

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