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What if someone says “Your planets are not in a favorable position”? Would you ever mind giving a thought to it? Well, I wouldn’t have cared but with US financial market facing a credit crunch and the people going through financial hassles, it seems that indeed we are all under the influence of some planets…

It all started with the risky borrowers getting qualified for home loans…the rest of the story? Well, many of them have defaulted on their loans; as it is, they have been under the evil influence of the credit score planet (just kidding ), and added on to this, there has been a fall in the home prices also. So, homes are not easily selling in the market and as such homeowners not able to pay back their loans from the sale proceeds.

The result…mortgage companies like the American Home Mortgage who’ve never worked with people with shaky credit have now gone for filing bankruptcy… such is the effect of the planets. Adding to this, investors have stopped purchasing bonds and stocks from banks and the banks who’ve offered the funds for the loans, now want their money back from lenders. Therefore, lenders who have promised to make several dollars of loans have suddenly backed out of the deals.

So, that’s the entire story.. people are in financial trouble. Some blame it on planets saying their positions aren’t good enough for them..the rest is simply blaming it on lenders and cursing themselves for dreaming something big to do with the money they’ve received as credit.

Technorati tags:credit crunch, US financial market, american home mortgage

Let me introduce myself. Though known to you but formally I am Planet Credit Score. I am the foundation of all your financial transactions. I affect you on the basis of your financial behavior. Based on me you will befriend credit cards or your required loans. Well if you are good at it and maintain all your payments properly I am there with you, if not, befriending loans or even credit cards will be difficult.

I am a three digit number assigned to you depending on the given reasons which say whether you are good or not….

• 35% of your payment history,

• 30% of the amount that you owe on all your debts,

• 15% of the length of your credit history,

• 10% on the new credits that you have taken and

• The rest on the type of credits that you use.

Always remember, if you are good you are more than a 700. I believe you are average if you score 500-699. You are below 499? I have nothing to say.

Look…. its pretty simple that I have different avatars, but as you need to know, I will tell you. You are acquainted with me mainly as FICO. As FICO I mark you from 300-850. As Vantage I mark you from 501-990 and also grade you between A-F, the best grade being A. I am also PRBC incarnate and many more.

Remember it’s my position that a creditor will check before they offer you credit. My position i.e. your score also depends on how well you manage your money and bills. Stay on your guard and deal finance with prudence so that you don’t restrict my path and make me collide with other planets. As it is said “God helps those , who help themselves”. Don’t you worry. I am there with you. Good Luck!

Keep an eye out for all the other planets who are yet to introduce themselves.