How credit scoring works and what this means to your credit rating.

That changed when I had to clean up the mess you read about on the previous pages!

Credit scoring is a factor used by your creditors to estimate the customer risk factor. In other words, creditors use a score to find out and determine what kind of a credit risk you are. Such as.....What are the chances you will repay your loan on time or at all? What have your spending habits been like in the past? Do you tend to spend more than you make? Do you have a habit of paying late?

And the biggest one, How much do you owe?

These are just some of the things your credit score tells a creditor about you. Auto and other types of insurance companies use your credit score to determine what kind of a liability risk you are.

Those who make their payments on time and only assuming a debt amount they can handle reasonably are much less of a liability risk and a credit risk.

As harsh as this sounds, creditors who see you as a high risk will also have to consider the fact that you could be a person involved in dubious activities as well, such as insurance claim fraud!

Not only those with a great credit score will be at risk of Identity theft!

Those with fair credit are at risk too because if you have a few late payments, but generally have a good credit history with little or nothing in collections, then criminals will steal your identity and improve your credit score by behaving really well so they can take you for a bundle!

Why? Because those who are in the "fair" category with a few forgetful moments rarely check their credit rating often and a really good con man or woman can boost your credit score and get you into the great range of scoring by becoming responsible, at least for a while! And by the time most wake up to what is going on, it's too late! Major damage has been done!

This is how a lot of people are taken for a fortune!

This is why checking and keeping an eye on your credit is a must do! Get in the habit of checking your credit report for errors and accounts you know you didn't apply for! This is also the best way to learn how credit scoring works!

This is the biggest reason you should have enrolled in a credit monitoring service! You not only need to keep an eye out on your credit to avoid becoming a victim of ID theft, but if your going to repair your credit and boost your score, not having a credit monitoring service where you can watch what your doing is like driving while blind!

If you haven't enrolled in one yet, do it now! This service from Equifax is a great bargain where you can get your credit score and reports and make repairs while keeping an eye out on your credit! When I finally enrolled in a credit monitoring service like this, I wish I had done it earlier. Neglecting my credit reports and guessing about how to make repairs to my credit made my score fall so hard the THUD! could be heard from Phoenix, Arizona to Salt Lake City, Utah!

I didn't learn about how credit scoring works overnight! I stumbled into every pothole there was and landed on my face, breaking my nose! Well I'm through having to swallow bad credit and bad scores like a snake eating an egg! I hope you are too!

If you have never seen a snake eat an egg, go to a zoo and watch it sometime. You won't believe the contortions that snake makes trying to swallow that egg! It will twist and turm in every direction getting and forcing that egg down! This is why I know that if you watch your credit and know how credit scoring works, you won't be going through contortions and twists like this yourself!

When good credit becomes habit froming, it's like your favourite ice cream, you just can't get enough!

To read more of how credit scoring works, don't stop now, just go to the next page by clicking here for more on how credit scoring works!