You know your credit is important. You need a good credit score to lead the lifestyle you work hard to pay for, from a nice house to a reliable vehicle to take you places on the weekend. Your credit report is used by potential employers, apartment complexes, and insurance companies to help determine rates, as well as to get a sense of your character. But just how do lenders use your credit score?
Optimal Credit is the best credit repair company in Los Angeles County. We offer a variety of different credit repair services in order to best serve you, from our Platinum, or most aggressive, credit repair program, which aims to get you better credit in 90 days or less, to our Do It Yourself credit repair program for those who prefer to repair their own credit themselves. We also offer phone consultations in order to walk you step by step through our credit repair program. Below, we’ll take an in-depth look at how lenders use your credit score. Contact us today to get started!
HOW DO LENDERS USE YOUR CREDIT SCORE?
- Define their risk. Let’s face it, credit lenders (primarily banks, credit card companies, and other financial institutions) need to make a profit to stay in business. If they lose too much money off customers who don’t pay their bills back, they fold. Hence, your credit score is used by a lender to primarily define your risk. If you have really good credit, odds are you will pay back your loan. If you have bad credit, the odds are definitely not in your favor. Like it or not, the way you pay your bills says something about you and your behavior, which lenders know and use to make wise credit-lending decisions. That being said, those with good credit can default, and those with bad credit can pay back their loans. But on average, your credit score still tells your risk level.
- Less subjectivity. Because of discrimination laws enacted by both the federal and state governments, lenders need to have an objective way of approving and denying credit. This thereby prevents allegations of discrimination based on other factors, such as race, religion, or sexual orientation. All three major credit bureaus (Experian, TransUnion, and Equifax) use the same criteria across the board to determine credit scores, such as credit history, number of credit accounts open, and past due payments made. Thus, in short, lenders use credit scores to prevent lawsuits.
CREDIT REPAIR SERVICES IN LOS ANGELES COUNTY
Optimal Credit is the best credit repair company serving Los Angeles County and the rest of the United States. We are passionate about helping people achieve their dreams through helping them take the right steps to fix their credit. Our team brings years of experience in analyzing your credit report, mailing dispute letters, and following up with credit bureaus. We are experts at coaching you on how to rebuild your credit and getting your credit report up to speed within six months. Our team is unfailing in our endeavors, and we invite you to partner with us. Contact us today to get started!