What Having A Good Credit Can Do
Apparently, having a good credit is your ticket to a lot of opportunities like getting approved easily for a mortgage, getting a car, getting yourself into post-secondary education, or opening your own business. Creditors will feel assured when lending you money since they will consider you as reliable and credible. Such lenders will be more willing to give you very reasonable interest rates in the event you apply for a loan.
Additionally, with good credit, you can also earn reward points on credit cards which you can redeem in exchange for other stuff like cash or trip discounts. It depends on whatever account you have.
Plus, what makes a good credit beneficial is that credit card companies will most likely permit you to have pretty much higher credit limits. If you want, you can even have as much as $25000 credit in your card. Suffice it to say, you must always be watchful of your high credit limit. Just because you have a lot of credit available doesn’t mean you have to stop living within your means. If you don’t have the money in hand to cover it, you will be in trouble when the monthly bill arrives.
But if your credit rating isn’t really pretty, you can always raise it. There are companies that are willing to help you boost your score. Ask around and investigate first before signing up for a certain company, considering scams are rampant these days.
When you are finally sure and confident in a particular company, contact them and inquire about what they can offer you. Settle the necessary things to remedy your financial trouble while seeing to it that your budget will cover it all.
It might take some time and effort but it will all be worth it when you can reap the benefits after doing so. Yes, it may be very alluring to borrow money if you can, but always remember that the less credit you have available, the less you will be tempted to spend.
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Self Credit Repair
Credit is a big deal. It’s your ticket to buying a home, attaining a loan, or even opening a bank account.
Suffice it to say, when it’s bad, you’re pretty much headed down the wrong road. You can fix this by raising your credit first, but you need not go to any credit repair company. You can do it all by yourself.
Always monitor your credit for accuracy purposes. Surely, it is wise to get in touch with the three major credit bureaus (Experian, Equifax, and TransUnion) and get a hold of your updated credit reports to make certain of their accuracy. More to these, download letters written beforehand which you will be using for credit reporting agencies, you might use it in the future.
Take advantage of your annual credit report, it’s free of charge. Also, don’t hesitate to ask for a ‘proof of debt’ from your lender and negotiate with your lender about your payment plan to avoid any trouble in the long run.
In the event there are any judgment hearings, see to it that you appear, no matter what. You should always be aware of the statue of limitations for all of your debts.
There are other many different ways to increase your credit score, A little research will go a long way but don’t stop there. All of this information will be going down the drain if it doesn’t turn into action.
Sure, it’s nice to daydream once in a while about turning into a little penguin so you can dodge all your responsibilities, especially the financial ones. However, when reality kicks in, it’s nice to face these adult obligations with optimism in mind. You can always get out of any financial rut. If there’s a will, there’s a way, after all.
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Good Loans With Bad Credit
When you have bad credit, getting a loan is almost not an option anymore. Luckily, though, it’s possible to still make it one of your choices. Knowing where to look into is key. However, if you want to redeem your credit score, you need to start one way or another. Here are some things to keep in mind when you’re looking for loans with bad credit.
Expect that you would not be given low interest rates, never expect this. Whatever might have happened, you are to blame for your low credit score. High interest rates happen to be one of the consequences for your previous financial mishaps.
Steer clear of major banks, as well as lenders. They are apparently the most accessible ones, but unless you’ve been a member of a small-town bank for 20 years, they will be the last ones to consider you.
Go for lenders that focus on bad credit. Give it a rest for a while if you find it really hard to find a lender that will work with you despite your bad credit. If you really can’t find approval for a bad credit loan, wait a few months and then you can try your luck again. This is the best solution to such financial dilemma.
There is no magic formula that you can use in getting approved for loans with bad credit. You only have to take your time, know every option, and find what works best for you. I’d love to tell you that it will be okay and that you’ll get that loan right away, but that’s pure lie. You won’t know what you’re eligible for unless you give it a try, and it may take quite a stretch of time for you to get back on track with regard to your credit report. Don’t give up until you go all in, effort-wise, and wait for the best.
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Bad Credit Loan Options
To a lot of individuals with bad credit, opting for a loan isn’t exactly a plausible option. Luckily, it can be possible if you know where to look and know precisely what it is that you want. It may seem impossible to get a loan when you have bad credit, but it’s possible!
If you want to be on track with your credit, you have to start right now. Just so you know, it will be more achievable to get a loan than to get approved for a credit card. When you want bad credit loans, here are some pointers:
The lowest interest rate will not be going your way. As a matter of fact, it’s totally off the table. Paying a high interest rate is one of the consequences in rebuilding your credit score.
Steer clear of major banks and lenders. They may be the go-to, but they will almost always reject you. Find those that work specifically with people having bad credit. Have perseverance. Also, always have the patience in improving your credit score. If you can’t get approved even for a bad credit loan, then give it some months to give it another shot.
When bad credit loans are being talked about, there is no magic wand to be used. It needs time. Also, check every option that you have. Look for those that would work best for you. It’s good to hear that it’s guaranteed that you’ll be okay and the loan will be approved, but it doesn’t work that way. You wouldn’t know until you try. Get back on track with your credit standing. This will do you good over the long haul.
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What Credit Score Means
Your credit score refers to the 3 digit number assigned to consumers as a convenient way for lenders to understand how credit worthy a certain person is. It is typically utilized in order to help these lenders decide whether you qualify for credit and what the associated interest rate will be.
When you apply for credit, your lender will probably request a copy of your credit report. This report will include a lot of information about your current credit standing. It also covers the numeric credit score. Given that lenders can easily get this information, it will be best on your part if you review the details yourself from time to time.
There are three companies that generate credit scores: Equifax, TransUnion, and Experian. They generate a number between 300 and 850. This number is also known as the FICO score, which 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
Included in the the factors that determine your score include your own credit history, the amounts you owed, how much remains, the duration of credit history, and the type of credit you have utilized.
You can improve your score by paying down any debts, staying well under your credit limit, and pay all bills before due dates.
Find other resources on this website so as to learn more about your credit score and how to improve it.
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Categories: Credit Score Articles Tags: Credit Score, FICO score
What is Considered a Good Credit Score These Days
Credit is one thing we all can’t live with, yet can’t live without, at the same time. As much as we like the thought of not owing anything to anyone, there are inevitable times that borrowing is a grave need. And when that time comes, good credit score is certainly of help.
What credit score is considered good, you may ask. Let’s start off with defining a couple of things. You must know, though, that this article will focus on the most common type of credit score in America, FICO. FICO scores depend upon the information handed out by the three major credit reporting agencies, namely TransUnion, Experian, and Equifax.
All the agencies utilize FICO software in calculating credit score. Also, they have their own databases which kind of give trouble to some, considering you may have 3 different FICO credit scores that depend on the bureau that is used. However, the credit scores typically lie in a rather narrow range.
Scores range from 300 to 850. When you look into myfico.com, you will see that the median score is 723 Median defines the lines between the bottom and top halves. If you happen to have a credit score higher than 723, then you are on top half. It almost always equals a ‘good’ credit score.
However, let must be real. A ‘good’ credit score should equal something that comes with good loan rates. Say, 680 is considered to be the lower limit for prime credit, then if you go beyond such score, your score is ‘good’. However, it must increase before you can get better rates that are intended for those who have ‘good’ and even ‘excellent’ credit scores.
The most telling information is coming from Informa Research Services. They are the ones that correlated FICO scores to loan rates. Based on a 30yr fixed mortgage example, they found FICOs from 680-699 averaged 4.9% APR, those from 700-759, 4.723%, and those with 760-850, 4.501%. Since those with 760+ were categorized in the best loan rate level, should we need to draw a line at where ‘good’ begins, 760 seems perfect just as any.
If you translate it to dollars and cents on a $ 300,000 loan example, the 760+ consumer will be paying over $ 14,000 and almost $ 26,000 less over the life of their loan as compared to the next two lower scoring groups respectively. Anyway you look at it, that is ‘good.’
Categories: Credit Score Articles Tags: Credit Score, FICO, Good Credit Score
Checking Your Credit Score Regularly
Emails, oil in a car, and lotto numbers, but how often do you check your credit report?
More often than not, people only think of checking their credit scores whenever they are eyeing on big ticket items. It is not and will never be an ideal practice. A credit repost is one of the most essential financial records we have as consumers. With your credit score in hand, you are able to monitor your current financial situation and can do something about it should it come out ugly.
The only time people even talk about their credit score is when they want to buy a big ticket item. A credit report is the most important financial record. It is your only tool to monitor and improve your financial situation.
The main reasons why having your credit score checked regularly is strongly recommended are for accuracy purposes and to detect any fraud. You are entitled to your free annual credit reports that you can obtain from the three credit bureaus: Experian, TransUnion, and Equifax.
Credit bureaus sometimes have the tendency to have errors in their reports, so you need to exert your own effort to avoid any discrepancies that might hurt your financial standing in the future if not fixed. Here is a rough list of the common mistakes these credit bureaus make.
-False missed payments
-Outdated bank information
-Duplicate accounts
-Missing accounts
-Negative records that are more than seven years back
-Phantom accounts or ones that you don’t actually own
With regard to fraud issues, you should make it a point to keep track of the number of inquiries requested on your account. If a specific request looks unfamiliar, then there might be someone else requesting for your credit score without your knowledge. Those people might use your name and social security number in buying items, open bank accounts, stuff like that.
As for fraud, make sure you track the number of inquiries requested on your account. If you are not familiar with the requests made on your account, then someone else is requesting your credit score. Your name and or your social security number might be used to purchase items, open bank accounts, or credit cards.
Regardless of the errors and identity theft, checking your credit score regularly should be in your list so you would be able to improve if you are not satisfied.
Categories: Credit Score Articles Tags: Credit, Credit Score
How To Safely Repair Your Credit Score
This article will show you quite easy tasks that can help you in repairing your credit score sans having to pay credit repair agencies huge amounts of money and without draining your wallet. Wanting to have your credit repaired only means your credit score is low. It is low when it is below 620, and it could be a hindrance in obtaining a loan. However, you can turn it all around with just a few tasks.
Take action in removing negative information from your credit report as soon as possible when you find out that the negative information is not really yours. Also, do so when the duration for a delinquency or bankruptcy has expired. Take immediate action as well when after your have already disputed negative information, it still remains on your report. Moreover, you should address it after negotiating with your creditor and had an agreement of settling at a fee with the understanding that either “Paid” or “Paid as agreed” will be entered on your report, yet it still displays on your report that you are in debt.
In such cases, it’s best that you take quick action in an attempt to the damage done to your credit score. The first thing to do is sending a dispute letter to the credit bureaus and request that they delete such erroneous entry from your report.
Your letters could be sent through fax, certified mail or standard first class mail. The standard first class mail makes a good choice since you will be able to get a mailing certificate guaranteeing that they have received your letter. You must have a copy of each document you send so you will have evidence.
Next appropriate thing to do is applying for a credit card, a departmental store or gasoline card, and then prudently use it. The deposit that you will be paying to the credit card issuer will be equal to 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 a no-brainer. The less you spend, the higher the increase on your score. The more you go beyond 30 percent limit, the lower your score drops. It’s best that you remain within such boundary in order to boost your credit score safely.
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Believe It Or Not: The Credit Score Version
Nowadays, people value their finances a lot. One of the most fundamental part of which is the credit score. Whenever you are applying for something, the offices and agencies actually take time to look into your credit scores. These credit scores may come from your previous and present bank accounts, insurance companies, lenders, credit unions and other firms of such. However, statistics show that majority of the society is still half blinded by the real meaning of a credit score. Some are facts while others are just hearsay Here is a rundown of what they consider as myths when it comes to credit scores. Let us identify which ones are real and which ones are not.
The first myth says that most credit bureaus use various ways in calculating a credit score. This is one of the most common. But the truth is that, the only difference is the term they use to call the computing system. The formula itself is the same for all major companies. The second myth says that you can fix your credit score by just paying all your existing debts. How convenient would that be right? However, that is not the case. Yes it would be better to settle your credits but your past accounts will remain intact. The credit history will reflect on your current standing. This will show how you are as a payer. The third myths says that closing down previous accounts will enhance your credit report. This is downright pointless. Closing ancient accounts would not even have a tinge of effect on your credit score. But opening them up would cause major damage. Having numerous accounts that are not going all too well is definitely bad news for the credit companies. And last but not the least, the fourth myth says that for a minimal fee, a loan company can cure your sick credit score. Wrong again. No credit bureaus are capable of fixing your problem for you.
The only way up here is not to look back to your poor credit history but rather show the credit companies that you have learned from the past and that you are now ready to become responsible in handling your account in the future.
Categories: Credit Score Articles Tags: Credit Score, credit score myths
Having A Home Loan
Just some years back, it was pretty easy to get a home loan just by having a decent credit score. Lenders would not worry about anything else other than making fast cash by handing out quick loans even to the under qualified.
Applying for it was pretty simple and getting approved is quite easy. Lenders did not mind late payments or debt to income ratio back then. If you have a viable credit score above 620, then you’re good to go.
Today, it’s still possible to get approved if you have such score, however, you have to come with a hefty down payment. Or, you could pay high closing costs and high interest rates over the course of the loan.
The question is, why do we get shocked about the state of our economy? We all wonder whatever happened to the housing industry. Who do we blame for this downfall? Will anyone fix it? If yes, who?
It boils down to the fact that greedy lenders in the past are to blame, they handed out loans to irresponsible people who were not even fit to be lent in the first place.
As a result, those home owners who are not qualified will be unable to pay their loans. And the massive foreclosures are on our hands. Suffice it to say, those lenders only took advantage of people before. Today, lenders don’t trust applicants just depending on their score. They scrutinize everyone as well as ever report.
We are punished for their mistakes. If you’re looking to have a mortgage with reasonable terms, you may want your report examined and cleaned up. They could contain items or errors that could be deleted with some work.
Good deposit also breeds trust in your commitment to owning a home. Also, creditors will be checking into your debt to income ratio. This can be improved by paying down debts, earning more, or ideally both.
You will be significantly benefiting if you do some investigating in your own history. Check what lenders are looking for and what you must have in the first place to be trustworthy according to them. With time and patience, you will have a home without any regret of paying too much in fees and interest.
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Categories: Credit Score Articles Tags: Credit Score, home loan, home loans, Lender