Can Other People Effect My Credit Score

Your personal finances are really tied up with your credit score. Credit scores will determine whether you are approved for a loan, and if you are they will determine the interest rate you are charged on that loan. A good credit score will get you a nice home, and a poor credit score will get you rejected by banks time and time again. Notwithstanding, most people don't understand what a credit score is and where it comes from. Even fewer people know what impact credit scores truly have on their lives.

You might be doing everything in your power to get the highest credit rating possible. But can things that other people do affect your credit? To many peoples amazement, the answer is yes. However, there is a lot that you can do to minimize its impact on your all-important credit score.

Credit bureaus have lots of files on your financial history and credit. The sum of all this information is represented by a three-digit number. The most commonly cited score is the FICO score because it is an average of scores from the three major credit bureaus. Myfico service can allow you to access your FICO score and keep current on your credit.

Credit scores are continuously fluctuating to reflect changes in your account and credit activity. The total amount of debt that you have, the types of debts you've incurred, and your history of paying on time factors into your credit. The amount of time that you have had access to lines of credit also is considered by credit bureaus.

The most critical issue is your payment history, as it impacts your credit score the most. One of the ways in which other people can damage your credit is if a company wrongly reports that you are delinquent in making on-time payments. This is more common that you would believe, and it can be a real fight to fix the damage done.

There are many people who can talk about how one mistake in a company’s accounting department gave them trouble for years, as they could not get the problem fixed with companies, debt collectors or credit bureaus. You do have the law on your side, though, so most of these issues are eventually resolved in the customer’s favor.

If you are surprised by the low credit score you have, its worth your time to check up on the information about you that the credit bureaus are using to get to that number. Do they have any incorrect information about you? Usually you all already know if a company has been incorrectly reporting your payments. There can also incorrect information that is damaging your score.

So to answer the question of whether others can negatively impact your credit score, the answer is mixed. They can by making a mistake, but if you are vigilant and take the time and effort to correct those mistakes you can get your credit back to its rightful place.