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.
Categories: Credit Score Articles Tags: Credit Score, interest, need, possible, without
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
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.
Categories: Credit Score Articles Tags: agency, better, Credit Score, credit score criteria, different, payments
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
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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Categories: Credit Score Articles Tags: appear, Credit Repair, Credit Score, down, Equifax, long, poor credit score
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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Categories: Credit Score Articles Tags: Credit Score, credit score repair