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
Know Your Credit Score – Tropical Financial
As a credit holder, may you be new or veteran, have certainly wondered how the credit scores of other credit holders are doing. You would comfort yourself by thinking that perhaps they are the same as you, missing documents and lapsing due dates.
You may feel fear while speculating about what if they are much better credit holders than you are. Yes, there are various credit holders out there. The same thing goes with credit scores. You should always be aware of your credit score, suffice it to say.
Watch this video an learn great tips in keeping up with your Credit Scores.
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Categories: Credit Score Videos Tags: Credit, Credit Score, Financial, Score
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
Should I Raise A 700 Credit Score
Even though there are no universal guidelines in regards to what represents a very good credit score, look up on the Internet and you will see that quite a few creditors deem a 700 credit score as “very good” to “excellent.” In accordance with the creator of FICO scores, about 18% of Americans have ratings in the 700-749 range.
Such numbers are necessary since they display your creditworthiness at any given time. Credit scores are based on information in your credit reports. That said, they permit creditors to make instant credit decisions about you just by basing on it. The higher your score, the better the deal you are likely to be offered when you’re looking for some good credit deals.
Now that you have a 700 credit score, you ask if you should raise it. According to Fair Isaac Corporation, which provides this computation to the three main credit bureaus and majority of the creditors, around 40% American consumers have higher numbers than you do.
That is actually a worrying statistic. Research by this author shows that majority of creditors deem excellent credit as those that are above 725, while some are even above 750. These are individuals who are able to get the best terms and conditions of credit offerings.
Therefore, although your credit score may be deemed excellent by some of the creditors out there, if you are able to delay your credit purchase for even a few months, then you can wait as you raise your credit score. You must take into consideration the benefits of having your credit score raised, which includes having to pay a lower interest rate on your chosen loan. You must know that a lower interest rate on a home mortgage could lead to thousands of dollars in savings over the long haul and a reduction in interest rate will also lower your monthly payments.
Whatever you deem to be a good credit score could actually be not enough to get you the best credit terms. It pays to raise your grade if it is below 725 to 750, so rethink your decision about getting the loan you’re eyeing at the moment
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Categories: Credit Score Articles Tags: Credit, Credit Score, Credit Score Explanation
Finance 101: What is a good Credit Score for Buying a Car
When you plan on buying a car, you’re always on the lookout for the best deal. Getting a good deal relies on your negotiating skills to a certain extent, but getting the most bang for your buckhas also something to do with getting a good interest rate on your auto loan. But unless your credit score is pretty good, you are not gonna be able to get the best interest rate.
Watch this video and learn how you could benefit from a good credit score and how you could use it to get your dream car.
Categories: Credit Score Videos Tags: auto loans, Credit Score, Good Credit Score
Poor Credit Is The Problem, Refinancing Is The Solution
In the world of credit market, you started with a clean slate and a good payment record. After a while, due to certain circumstances you missed a deadline. Unfortunately, this single absence was followed by another one and then another until it became a series of unmet cut – off dates. If worst comes to worst, you already gained a bad image, a long list of late payments that will eventually lead you to bankruptcy. It sounds very tragic right? Yes it is. But at every terrible incident comes a string of hope.
Refinancing is the ray of light in terms of poor credit. Good thing there are already a decent number of lenders available in the market nowadays that find opportunities even in the most unpleasant situations. Their specialty is providing loans and professional assistance in hunting down the best possible rate despite a poor credit history. The person with this kind of job is called a bad credit mortgage lender. He or she serves a mediator between the borrower and the lender. If in case you are out to refinance your home or even trying to purchase a new home, this is the best road to take. It may come off as a great leap of risk, but if you analyze it, this will help save hundreds and thousands of dollars in spite of having a past hunted by bad credit.
However, if you are thinking of going to sub-prime lenders as opposed to the leading ones, then think again. The most important thing to do is conduct a research. The internet is there as reference as well as the word of mouth that you can get from family and friends. Assure security and trustworthiness from your sub-prime lender because you would not want to make any more mistakes. They may assume that you are desperate to find a lender that you would be out to do just about anything. Prove them wrong.
Having poor credit is not forever. It will indeed take some time but it has an end. Bear in mind that there are solutions to your problems. All you have to do is balance them out, decide which one is best for you and grab that opportunity before it gets out of your sight.
Categories: Credit Score Articles Tags: Credit, Credit Score
Why Your Credit Scores Are More Important Than EVER Before
A lot of us consumers have had problems with regard to credit cards, well at least most of us. This probably had a negative impact on our credit scores. By having bad habits, mistakes, and poor judgment, they find themselves going into default, having missed payments, or drowning in debt.
Credit scores and underlying history is one the most vital parts in our financial lives. Our credit scores will follow us forever and it will play a huge role in many major financial situations throughout our lives. Watch this video why it’s crucial to take care of your credit score.
Categories: Credit Score Videos Tags: Credit History, Credit Score
Credit Re-Scoring For Your Credit Score
The re-scoring of credit was made possible by owing an ever increasing demand for it from people who are frequently using this aspect of business. If you are planning to establish or acquire a good credit rating, you should be able to pay your outstanding short and long term loans without any delay. By doing this you are able to show lenders that you are able to deal with the credit agreements without any faults or compromises. If payments are made on time and are completed within the agreed time frame, borrowers are then rewarded by lenders with a good credit score. Almost all people know that a good credit rating can easily attract the lowest interest rates and this can be carried over when going for the lowest auto loan rates.
The various systems used to determine a person’s credit scores were invented in order to create a certain standard method of gauging clients and their ability to pay their own credits. This scorings system ranges from 300 to 800; consequently, the higher the rating, the more chances that banks will allow you to have loans and credit deals. Banks and lending companies do not usually give loans to people having scores that are below the six or five hundred point marks.
Customers can be assured that they are treated to a low price guarantee on all items, while not discriminating clients in terms of credit status and credit scores. Clients are also given the chance to choose their payment terms that range from 6, 12, 18 and as long as 24 months. This option comes with a diverse choice of paying every month or twice a month. Discounts are also given as well as many benefits and services.
Some people have tried to maintain a good checking account at local banks but ultimately found it that it doesn’t really work out. The banks are inaccessible at times and have lots of transaction requirements. Before one should go for banking cards, they must first familiarize the many requirements that come along the budget. For example, look how your income and business consume its money.
Categories: Credit Score Articles Tags: Credit Score, ReScoring
Credit Scores & Reports : What’s a Good Credit Score to Buy a House?
These days, there is a lot of homes for sale with low prices and low interest rates. Housing is more affordable today than it has been in so many years. Considering the current market, why isn’t everyone getting their own homes?
A good credit score for getting your own house depends greatly on the economy, but a credit score of 700 or more will make it easier for getting a home loan. See to it that you save up for a sizable down payment if your rating is not very pretty with advice from a certified financial consultant in this video.
Watch and learn.
Categories: Credit Score Videos Tags: Credit Score, home loans
Maintaining a Fair Credit Score
It is of utmost importance that a person must know the tips and tricks of owning a credit card and understanding what a fair credit standing is all about. If a person have had a bad credit score record, he should bear in mind and be ready to take the needed steps in order to bring the credit score back into a desirable level. Almost all banks and various lending companies do have some strict guidelines and strategies about credit score ratings. It serves as a basis for them to have a baseline data of you being a loan applicant and having a potential bad credit history. Being credit worthy is very essential for bank and financial lending companies to be confident with their clients. It is like having to look for a job. Your credit ranking record do provide the same type of information that your resume brings. If it is not that good, then companies may decline and refuse you for applying a certain type of loans and credit card applications.
Your credit score is mainly constituted of many information that contain ratings for your credit score history. These facts are very vital for the formulation and finding out one’s credit history and reputation. Credit rating experts have already made a mathematical algorithm that looks into the totality of a credit score. The most frequently used system is the FICO score system. It pertains to Fair Isaac Corporation. It constitutes five main elements that are essentially key factors for the formulation of a credit rating and will rank people accordingly on a credit rating scale.
If you have been diligently paying your bills on time, they you have nothing to worry about. The FICO rating scales from 600 to 850 points. When you happen to have at least 700 points, this is a clear indication that you are having an excellent credit rating and be able to apply for a favorable credit plan. Banks will help you obtain great rates and discounts as well as perks and freebies that you surely deserve. It is just because they see you as some type of a good risk for that level of investment and that you have provided a worthiness for your credit card application. There are a lot of companies that will surely willing to help you obtain and maintain a good credit score, you just have to pick which one is applicable for you.
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Categories: Credit Score Articles Tags: Credit Score, fair credit score