Post-Bankruptcy Credit Score Boost
After bankruptcy, it’s no surprise if you want to target repairing your credit. With no proper credit record, you may be consider to be among the untouchable by many creditors and banks. If ever you get credit after bankruptcy, you should be extra astute and don’t default in terms of payments or you’ll never be able to boost your credit back to being good.
A credit card is pretty much the fastest way to improve your credit. Monitor at all times your schedule for repayment. Whenever you are out applying for loans, make sure you don’t commit the same mistakes that caused this dreaded bankruptcy.
You can even go to special classes held by non-profit organizations or maybe debt management programs. The no nonsense programs can be very helpful if you don’t have money, filed a bankruptcy, or when you are in need of managing your finances. Financial management is a handy skill and it’s not only for money alone. You can make use of it in disciplining yourself.
In case you file for bankruptcy and it is discharged, it would only signify that your current debts were paid in accordance with the bankruptcy rules. It would take about two years to gain back your normal financial status.
You can apply for a loan even before the end of your lock-in period. Nonetheless, it can get quite tricky to attain. Your post-bankruptcy credit report could be helpful here. If it’s outstanding, you’re likely to be approved for a loan. Besides, you need to make a large deposit of 3 to 5% of the total amount.
You can ask for help from your friends or family members for the deposit, but you should always have proof of all the money collected, considering the creditor would want to know all the sources. You are able to borrow money to use for the deposit but the creditor will never approve you if this is how you usually get money. You should be employed and have steady income to sustain yourself and so you can repay the loan, too.
These are only among the many ways you can redeem yourself post-bankruptcy. Always remember to redeem your good credit as much as you can.
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Categories: Credit Score Articles Tags: back, Bankruptcy, Credit Score, credit score boost, deposit, need, post bankruptcy
Catechizing the Interest of Credit Score if You Don’t Borrow
Almost every other person is now aware that they need to have a good credit score. However, do you actually need a credit score? If you don’t even need to borrow, what would you do with a credit score? You must be shocked to hear this, right? Especially, with all the financial advisors asking you to maintain your credit score, asking you to pay down the debts, believing in what I have said must sound bogus.
Considering the truth
Credit score – why do we need it? We need it so that we can borrow. In order to obtain a mortgage, or a credit score, or even any other type of loan, we require a good credit score. None of the lenders or the creditors would approve your credit application, if you do not have a good credit score.
Nevertheless, what if you do not need to borrow anything in any form? What would you do with a credit score, when you have never thought of borrowing any money? In order to build the credit score, you will have to borrow first. Yes, without actually borrowing any money, it never would be possible to have a credit score under your name. That would mean, you are incurring debts because you need a credit score. Even if you need to borrow, you may not require a credit score as always.
Still, you must be wondering how would it be possible to buy a home without credit score? Is it possible to buy a car without financing it, which again would require you to have a good credit score? Is it possible to rent an apartment without a credit score? What about the insurance policies – can you get any of the insurance policies without a credit score?
It is possible to do all of the above without a credit score. However, the main problem is our society. We have now become totally and completely dependent on a loan and credit cards, and all of the other options through which we borrow. It is mainly with the credit cards that we shop and even make payments on other debts. In fact, businesses too use credit cards for completing their transactions. We can’t even think of the resources which could otherwise be used for buying a car, or renting an apartment and so on. BTW, if necessary you can gather information on credit card consolidation from DebtConsolidationCare.
One of the easiest, but lesser known ways to buy a home without a credit score is the manual underwriting. This is the process in which, the people involved with the process require you to provide your real life information. These can be the details of your utility bill payments, rent receipts, income and so on. Furthermore, try to save up quite a lot, so that you can obtain a mortgage through this, as it may not always be possible to buy a home without a mortgage.
As for the rent. you can start using eCredable.com which has the provision for you to build a payment history, based on your previous rental history, utilities and so on. If you actually have no debt, lenders would be ready to offer you the rent. You would not even be required to obtain a loan. If you can’t believe in this, you can at least try it for once.
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The Purpose Of Credit Score
Your credit score is a 3 digit number which is assigned as a convenient way for the lenders to be able to understand how credit worthy they will consider you to be. It aids them in deciding whether you qualify for credit and what the associated interest rate will be.
When you apply for credit, your lender will request a copy of your credit report which includes lots of information about your credit rating as of the moment. It will also involve the numeric credit score. Given that lenders can easily get their hands on this information, it is advantageous to you if you review the details yourself every now and then.
There are three companies that yield credit scores: Equifax, TransUnion, and Experian. They generate a number between 300 and 850. This number is often called the FICO score, and it stands for Fair Isaac Corporation.
Here is a quick breakdown of the FICO score values:
• 720-850 – this is the range of average scores and better, a very good range
• 700-719 – rates may not be as good as above, but your credit is still decent
• 675-699 – at this level you are starting to lose out on the best deals
• 620-674 – you cannot get great terms here as loans will cost you extra
• 560-619 – this is really subprime so you’ll have to work to improve
• 500-559 – it’s going to be tough to get any loan
You can stumble upon another analysis of the numbers on our credit score rating scale page. Included in the factors that determine your score include your own credit history, the debts you owed, how much is left, the duration of credit history, and the type of credit you have used.
You can boost your score by paying down any debts, staying well under your credit limit, and pay all bills promptly.
Explore other resources that you may come across in this website to learn more about your credit score and how to boost it.
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Categories: Credit Score Articles Tags: Credit Rating, Credit Score, credit score purposes, credit standing, debts, FICO, lenders, range
Repairing Your Credit Score The Right Way
Soon after you find out about all the negative information from your credit report, take measures to remove it especially when the negative information is not really yours. You can do this when the duration for a delinquency or bankruptcy has expired.
These are cases in which even after you have negotiated with your creditor and after having an agreement of settling everything with a fee with the understanding that either “Paid” or “Paid as agreed” will be entered on your report, your report shows that you are still in debt.
When this happen, you must take immediate action to remedy this problem with your credit score. First thing you can do above all things is to send a dispute letter to the credit bureaus and request that they delete such erroneous entry from your report.
You may send this letter with the use of fax, certified mail or standard first class mail.The standard first class mail is your best bet, considering you will be getting a mailing certificate guaranteeing that they have received your letter. You must have a copy of each document you send as a proof.
Next appropriate thing to do is to apply for a credit card, a departmental store or gasoline card, and then use it with caution. The deposit you pay to the credit card issuer will equal your spending limit. Given that the main reason behind getting a credit card is to repair your credit score, see to it that you don’t spend beyond 30 percent of your limit.
The reason is so obvious. The less you spend, the higher the increase on your score. The more frequent you go beyond 30 percent limit, the lower your score plummets. It’s suggested that you remain within such boundary so as to boost your credit score safely.
Categories: Credit Score Articles Tags: credit card, credit score repair, first, fixing credit score, limit, send
Credit Repair Companies and Credit Consulting
While you are on the hunt for goof credit repair companies, you might run into credit counseling agencies as well. Money is big in this industry. These two are considered as giants, but one can work in ways different from the other.
First we talk about credit repair companies. Their goal is to help clean your credit record by means of raising your credit score. They will be scrutinizing your credit report and search meticulously for errors and think of ideas to get your finances enhanced for creditors. If it’s a good credit repair company you want, remember such factors.
Next is credit counseling. It’s actually a different thing. They want to get and keep you out of debt. This may be helpful to people who find credit management a very hard thing to do, it doesn’t work for those who want their credit scores raised.
One of the many measures that credit counseling companies let you take is they let you close down any revolving accounts that you may have, such as credit cards, gas cards, and store cards, to name a few. They will talk about your debts with your lenders and make some bargaining at the same time. Then they make the payments with the fees that you will be paying them monthly.
It could sound pretty helpful, but it will only act as an indication that you can’t manage your finances by yourself and that you need other people’s help. More to these, closing any account will lessen your credit rating but your debt generally stays equal.
Additionally, find out how credit counseling company works, involving the good ones. If a monthly fee is required, then you might want to take another route. Consider, they get to generate profits form you on a monthly basis. Therefore, they want you as their customer for as long as they can. When it comes to credit counseling, you will pay the lowest payment possible for a very long stretch of time. And in terms of credit repair, the longer it takes for them to do the job, the more profits they will be generating.
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Categories: Credit Score Articles Tags: companies, counseling, credit counseling, Credit Repair, Credit Repair Companies
What Makes For A Credit Score
Have you ever tried getting a letter coming from your credit agency that displays your credit score and the question running through your mind is how did it come about? That’s the usual case a credit holder is experiencing when he or she sees how low their standing is.
First off, you must realize that your current credit score will rely upon your past payments. This makes up for 35% of your overall credit score. If you have been religious with your payments, then no further questions will be asked. Bad news if you have missed a couple of due dates. Different creditors have different standards when it comes to when they will be accounting a late payment. That said, it’s still best to do timely payments.
Second, the 10% of your score will be coming from your variety of credit. This would only mean having different categories like car loan, house rents or simple credit cards display your capability to handle a myriad of credit options, given you keep in mind to pay all of them.
Third thing to know is that 15 % of your credit score will be taken from how long you have a history of credits. The better you have handled them in the past years, the better your score would turn out.
Fourth, 30% comes from the overall amount of the balance you owe. It will be weighed parallel to your income. So, see to it that you make your debt lower than your income to keep your score afloat.
And of course, 10% of the credit score makes up for what you owe from inquiries with regard to your credit. This could mean an overdue or a forgotten due date.
You can trace back this mysteriously low credit score to the credit holder’s lost of control and lack of knowledge. It’s tempting to blame the credit agency for not informing you ahead, but you have to accept the fact that you’re responsible for the kind of position you are presently on.
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You Credit Score Must Be Better Than Subprime
Credit scores range from 300 to 850. Precise details about a credit score is not really known by many, but what people know is that the lowest credit score possible is 300, with 850 being the highest.
Majority of lenders deem 620 the bottom cut off for prime loans, the dividing line between fair and bad credit. That being said, having a credit score a bit above it may make you panic, for instance, 630. It’s still actually average, but it falls on the low side or below average. Nevertheless, a 630 score is rather more acceptable than being in the “subprime”.
This credit score would possibly be deemed a sensible credit. You won’t instantly be denied loans, but you will surely be repelling the best rates. Securing loans could also be very difficult at this certain level. The interest rates are always pretty high and the conditions are far less than ideal.
As a matter of fact, if you plan to buy or refinance a home or a brand new or used car, you are bound to have a higher mortgage rate. Thus, you are better off improving your credit score.
If your credit score marks a little above 620, you may have done some financial mishaps. This may take place if you own credit cards that are maxed out. Spending beyond your credit limit makes it even more damaging for your credit score. When your credit cards are maxed out or go beyond the credit limit, you give potential lenders the vibe that you don’t have the ability to live within your means. The money you make is not enough, so you use your available credit to get what you want or need. That’s probably what happens, or so they think. This can badly affect your score.
You should never forget that your credit score depends on all the data in your credit report. Thus, it’s a must that you always monitor it.
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Categories: Credit Score Articles Tags: above, above average credit score, average credit score, credit cards, lenders, limit, subprime credit score, subprime loans
Things To Consider About Credit Scores
The exact details of a FICO (Fair Isaac Corporation) score are never known by the public. After knowing your score, do you always wonder what factors are considered to come up with it?
Being late on certain payments will never fail to negatively affect your credit score. Payments that are received more than 30 days after due date is deemed late. Most of the creditors report all payments that are behind and usually sort them out in different batches. That being said, if you are late even for only one day, your account is more likely be reported alongside those that are 59 days late. Yes, that could happen.
Your credit balance gives your lenders substantial idea regarding the cash you have on you and your credibility as a borrower. High balances almost always have a negative impact on your credit score.
Don’t think of opening tons of credit card accounts all at the same time since this may cause an issue with your lender. Because of this, you might be up for multiple credit inquiries considering it will seem that you are extremely strapped for cash, which would not be doing any good to your credit score.
If you max out your credit cards, it’s not only you that will suffer but so will your credit score. See to it that your balances are less than 35% of the available credit. It could sound pretty difficult, but you can totally do it.
The longer your credit record is, the better it will be for your rating. Have mixed types of credit card and do not think of closing down old ones since these will help you improve your score.
With more time and effort you can pretty much increase your score. Don’t let your credit score overpower your life. You can always do something about it if you’re not satisfied.
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Categories: Credit Score Articles Tags: cash, credit card, Credit Score, credit score factor, late, payments
Just How Necessary Is A Good Credit Score?
A good credit score could either make or break your financial status and stability. If you happen to be one of those people who practically feed on loans just to have some purchases then it is practicallya must to keep you rating excellent.
Typically, financial loan companies are picky when it comes to borrowers. They like those who can show and maintain a good rating in their annual or quarterly credit report. Nevertheless, when you’re already down with a bad rating, you can still take some measures to boost your credit score. A poor credit score will only indicate that you cannot handle your credits properly. It could be that you’re delaying your payments or you don’t pay lenders at all.
Many steps can be taken to do certain repairs on a credit score rating. You need not look for the service of some credit repair agency. What you were always wishing and hoping for can be on the tips of your fingertips. You will end up saving some money that you could have spent on the services offered by these agencies.
Getting a copy of your own credit report is one of the prerequisites in repairing your credit score. This report comes free every year. The contents of which include all your outstanding debts to all different lending companies.
All the prompt payments that have been made, delays and defaults will be included, too. What the report will reflect is your creditworthiness. After obtaining the required report, you can start to do repairs to your credit score. One of the vital things to keep in mind is that the task requires discipline, sacrifice, dedication and control.
We all know how hard life is, especially when it comes it money. Well, at least to most of us. However, we can always control this particular area in our lives, provided we live within our means and always make smart decisions.
Categories: Credit Score Articles Tags: companies, control, good credit rating, Good Credit Score, keep, payments, poor credit score
Tips On Safely Fixing Your Credit Score
Take immediate action in getting rid of negative information from your credit report as soon as you possibly can, especially when you have found out that such negative information is not yours to begin with.
Additionally, do this in the event that for a delinquency or bankruptcy has expired.Also, act on it when after your have already disputed negative information, it can still be seen on your report. Furthermore, you must address it after negotiating with your creditor and made an agreement of settling at a fee with the understanding that either “Paid” or “Paid as agreed” will show on your report, but it is still being shown on your report that you are in debt.
In this kind of situation, you’re better off taking quick action on the damage done to your credit rating. The first thing you can do is to send a dispute letter to the credit bureaus and ask for the removal of such erroneous entry from your report.
The letters you have made could be sent through fax, certified mail or standard first class mail. The standard first class mail is an ideal choice, considering you can get a mailing certificate assuring that they have really received your letter. You should get a copy of all the documents you send for evidence.
Next thing you can do is to apply for a credit card, a departmental store or gasoline card, and then cautiously use it. The deposit you will be paying to the credit card issuer will equal your spending limit. Considering the real reason for getting a credit card is fixing your credit score, make certain that you don’t go beyond 30 percent of your credit limit.
It is actually a no-brainer. The less you will be spending, the higher the increase that will be seen on your credit score. The more you spend beyond 30 percent limit, the lower your score plummets. You’re better off keeping your spending within such boundary so as to boost your credit score safely.
Categories: Credit Score Articles Tags: credit card, credit score repair, first, limit, repairing credit score, seen