I just came across a funky blog that had a great article entitled “Another Simple Way to Understand your Credit Report. This blog post was excellent. It talked about how someone with an excellent credit score can go down 100 points in one day with a single late payment. The author also spoke about how people with differing credit scores can end up purchasing the same asset and yet get financed quite differently resulting in one paying far more interest than the other.
This article should be read in light of the Fair Credit Reporting Act. (“FCRA”). You see, while FCRA is the basis for many of the issues raised in this blog post, many of the points made by the author do not relate to anything in FCRA specfically. For example, the late payment will penalize someone with a high FICO score far more than one with a mediocre FICO score. I recommend this article, highly.