Rebuilding Your Credit Score Wisely
A lot of individuals surely have had problems with regard to credit cards, and this probably had a negative impact on their 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 could actually be lowered through plastic money, even when you have a home loan that you have managed to pay properly and good track records on your bank account. Rebuilding your credit score is something that can be looked into, and it may help you should you need things like auto insurance quotes, looking for a job since employers these days check the credit ratings of their applicants, or even when you’re trying to get a graduate degree course.
If you want to be successful at rebuilding your credit score, try to have an honest look at your past habits and financial history, see to it that you find out where you went wrong. Find your statements and your bill. Look meticulously if there are patterns in the way you spend.
Also, you spending habits could be of psychological nature. You may be spending more than you should as a compensation for some other deep-seated issue which actually has to be resolved. Think really hard and maybe you can visit a therapist to address this issue.
When you know the real source of your spending problems, then it is about time you look into credit providers and how they could be of help in restarting your credit history. When you are looking for a new credit provider, take into consideration past mishaps. Try searching for a low credit limit offer. This will help ease you into a new credit life.
Furthermore, plan ahead with your new credit life. Plan about what you will be spending, and what you will be repaying. Know what budget you have, and live within your means. Knowing and understating are vital in making wise financial decisions.
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Categories: Credit Score Articles Tags: Credit, Credit Rating, Rebuilding, Score
What’s a good effective way to establish good credit without hurting your report?
Question by Mike D: What’s a good effective way to establish good credit without hurting your report?
with inquiries? I got a new car, but even though it’s under my name, my father co-signed since I have “limited credit”. I have my student loans and now my car loan to help establish credit, I know that will be big once it’s paid off……but I won’t to establish more WITHOUT having to worry about bringing my score down?
Will my score go down for a while or just temporarily?
Best answer:
Answer by Akbar B
Your score goes primarily by how promptly you make payments on your loans. If you are late your score will plummet like a rock, and if you pay on time it will keep shooting up. Good luck.
What do you think? Answer below!
Q&A: Why is my credit not building?
Question by : Why is my credit not building?
For the past 4 years I’ve been renting apartments and have had utility and cable bills under my name. Just recently I tried applying to rent a house (nothing new for me) but when they ran the credit check on me it said that I have “no credit score”.
How can this be? In the mean time I plan on openning a credit card in my name ASAP to start building my credit from scratch, but is there any chance they got it wrong? And how can I fix it? I don’t get how I can have absolutely no score at all. Do I have to open a credit card before my other bills start counting towards my credit?
Please help!
Best answer:
Answer by SPIFIMAN1
Rent, utilities, cell phones, gym memberships, checking and savings accounts are not extensions of credit and do nothing to build score.
To build a credit score you must have either credit card (revolving) accounts or car, boat, home, motorcycle, furniture (installment) accounts that you have paid over time.
People that have never established credit, have not used it in several years or have such bad credit that their score is below 300 will always default to a 0 under the FICO algorithms.
What do you think? Answer below!
Categories: Credit Score Questions Tags: Building, Credit, Credit Score
Turning Bad Into Good With Credit
An ideal world is filled with good paying people. But in the real setting we currently have in this planet, not everyone is capable of doing so because of many different reasons. For people who unfortunately have invested on bad credit instead of a good one, getting themselves another thing to spend money on is some kind of a bad idea. Tough life you have there. To acquire a loan would seem questionable in that situation. The good news is that there is still light at the end of that dark tunnel. You can still obtain one as long as you know where to look for it.
If you want to revive that dying credit of yours then you need to start from scratch. Let go of the past and set aside the others. Learn to focus and set your goals straight. Because of an already dirty history with credit card, it will be hazy to get another one. So you will be better off with a loan. In order to do so, here are points to ponder on.
Do not anticipate to get the best rate. In fact, do not expect ever to get the lowest rate. In spite of the events that may have happened in the past, the blame is placed all on you. If you have had a bad credit then paying high interest is just one way to compromise for the misbehavior before.
Do not go for the big guns. And by big guns it means the major banks and lenders. Because of the reputation and name, they may seem to be the best choice in the beginning. But if your name is well associated with your poor paying habits then they will remain protective of their status and will most likely not lend even a centavo to you. But do not fret. You just have to find lenders that centers their services with those who have bad credit.
The key here is to keep on going and going. Be optimistic in the search by asking people who have experienced these lenders or you can go over the internet and look for yourself. If worst comes to worst, then take a temporary pause. Give it some time for things to calm down and try your luck again.
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Categories: Credit Score Articles Tags: Credit, Good, Loan, Loans
What is FICO? What Credit Score is Good, Bad or Average?
Among the many numbers that accompany us throughout life, our credit scores are one of the most important. The usual range of credit score varies from 350-800 while some model range up to 900. People with higher than 750 are able to attain best interest deals and insurance premiums while consequently, people having low scores get higher interests and higher premiums. In order to have your credit score improved, one must be able to understand what makes up the rating as a whole.
Watch this video and learn.
Video Rating: 5 / 5
I don’t want a credit card, and do I really even need one?
Question by BeachBoarder: I don’t want a credit card, and do I really even need one?
I’m 19 and most of my friends have credit cards. I told them I had no interest in getting one and they were like “but you need to start gaining good credit”.
I don’t really even get the whole concept of the credit card. When I buy something, I make sure I have enough cash for it and pay with that. It just seems much easier and I know that I definitely have the money and don’t have to worry about a bill later. If I want to buy something big, I save up for it.
So what’s the big deal?
Best answer:
Answer by teresathegreat
You need a credit card for certain things, like reserving a rental car or plan tickets. But you can use a debit card for most of these things as well.
Your friends do have a point – establishing a good credit history is important, and will be essential to you later on in life when you are ready to apply for loans or buy a house. Your credit history looks at how much money you are trusted with, and how responsibly you handle it.
So if you handle your credit card responsibly, it can benefit you in the long run. It’s best to think of a credit card as a debit card – you simply pay for the items at the end of the month instead of at the moment of purchase. If you pay the amount in full every month, you won’t have to worry about finance charges or interest, and you will build an excellent credit history.
So your friends have a good point – but I’d be interested to know how many of them really handle their credit responsibily, and how many foolishly carry a balance from month to month.
Give your answer to this question below!
Why Mr. Credit says Short Sale vs. Foreclosure
Short sale and foreclosure are among the stuff that a lot of people want to know more about. This video talks about secured credit cards, when to pay your CC bill, power of an auto loan, paying off collections, among many others.
Several ignorant sources would just tell you to walk away from your own home after getting your free stay for as long as possible. This will surely destroy your credit profile.
Watch this video and get general tips on bettering credit scores and avoid the usual mistakes.
Video Rating: 5 / 5
Categories: Credit Score Videos Tags: Credit, Foreclosure, short sale
Q&A: Are those credit “watching” agencies worth it?
Question by 1st year: Are those credit “watching” agencies worth it?
I opened a new credit card and they have a credit watching program that they monitor my credit and all that and let me know if something goes on with it. $ 50,000 in fraud insurance for $ 13 a month. is this worth it or are their better deals out there?
Best answer:
Answer by Reena
You are getting insurance for something that is covered.
Read the fine print on your CC agreement. What are the steps you need to take when you find fraudulent charges on your statement?
Immediately contact the CC company and dispute the charge.
You are not liable if you do it in a timely manner…
What do you need this insurance for?
They give you $ 50,000 in fraud insurance when the most they would have to cover is your credit card’s limit? Can you spend 50K on your credit card? No? Neither can the thief that is using your card….
Under what circumstances would you be paid $ 50,000? Ask them that question…
P.S. Letting you know that something is going on with it… Nice.. and then what? You will have to call the CC company and report it, right?
You would have done that anyway as soon as you opened the bill and saw charges that aren’t yours.
And you are paying $ 13 a month, billed to your credit card, for that service?
Not worth it…. the fraud protection is built-in in every credit card agreement… by law.
What do you think? Answer below!
Categories: Credit Score Questions Tags: agencies, Credit, Credit Reporting Agencies, watching
Do you have to wait at least 6 months to close a credit card?
Question by KitKat: Do you have to wait at least 6 months to close a credit card?
Ok. I’m easily pushed into things because I’m a quiet, good person.
I recently went to Chase and opened a new checking account to get a $ 125 incentive for opening it. I felt extremely uncomfortable when she kept asking too personal stuff. Like how much exactly I make each paycheck and exactly how much I have in my other bank accounts. There is NO reason why they need to know how much is in my bank accounts. So I refused to tell her, but got tricked into saying my paychecks, which isn’t a huge deal. She said she just wanted to know because of my rates. But she should just have asked for my rates, not my specific amount. Then she insulted me with saying my credit card from my bank is, lowest, 13% interest. When it is actually 8.99% interest. I would have to be dumb to get a card with anything above 9% interest charges.
She was being really rude and insulting. Saying that since I’m 19 my parents must pay for everything and my cell phone. That is the most insulting thing anyone could ever say to me. They haven’t even paid for my school lunches since before high school. Ever since I started baby sitting at about 13, I have paid for everything myself. And she would just keep talking and lying about my life.
Then she goes and says that I need overdraft protection. I’m not irresponsible. I NEVER use money I don’t have. So I don’t need it. And if I was a stupid retard who overdrafts, then I deserve to pay the fee! But she said “I have people come in here all the time saying it would never happen to them, but then it does. So I’ll get you signed up for it.” I told her clearly that I did NOT want that. She said it was free on the account. I said I didn’t need it. She walked away and came back and said “Ok, you are approved and will be getting your card in the mail in a few days.” I’m like “What are you talking about?” She was like “The overdraft protection is a credit card and if you go over the balance it will draft it over in increments of $ 50 to help protect you from the fees.” And I was like “But I said I didn’t want it. It will show up on my credit report as another card and I told you I didn’t want it. And it will hurt my credit score.” And she’s like “Oh, you’ll need it. And it won’t show up on your credit report.”
So I did NOT give her permission to open this credit card. I specifically told her no! And then she insults me continuously! And someone told me that if you close a credit card within 6 months of getting it, it hurts your credit score. I am trying to buy a car right now. I have a good credit score. But not “excellent” in this economy. And this will be the 3rd credit card on my report! And if you have 3 or more cards it hurts your score (or it’s more than 3, idk). My ex’s overdraft protection was that if he withdrew too much out of his checking, the amount would roll over from his savings. So that is what I thought it was and the way she explained it. But I just opened a checking, no savings. And after I told the banker NO to the overdraft, she still went ahead and opened it without my permission!!!
A- Will it hurt my credit score to close it within 6 months of opening it?
B- What can I do to get this lady in trouble for this? Write a letter to the head of the bank? I bet she just did it because she gets bonuses for opening new cards. That’s why I said no, and she still went ahead and opened it. I’m furious.
She had me sign a paper saying that I opened the Checking account and she said it was for my signature for the checking account file. Do you think she used this as the credit card she opened without my permission???
Best answer:
Answer by stephenweinstein
A. Closing a credit card within 6 months of opening it does NOT necessarily hurt your score, ESPECIALLY if you already have older credit card accounts. Closing a newer account and leaving an older one open can actually HELP your score.
Having 3 cards is not too many.
B. Yes, you can write a letter. No, I do not think that she will get in trouble, especially if you leave the account open, which is what they want. If you really want to hurt them and demonstrate to them that her actions are hurting them, then wait until you receive the $ 125 incentive and THEN close BOTH the credit card account AND the checking account, and send them a letter telling them that you closed both accounts because of what she did.
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Q&A: my first credit card tips?
Question by Sick MOFO: my first credit card tips?
What’s the best way to raise the so called “credit score”? Paying the minumum every month vs paying the balance off immediately? Does the amount you charge matter? And any other tips you may have. Thank you.
Best answer:
Answer by Jenyfer C
Keep a low balance that you make payments on, every month on time. Your credit score looks at timely payments, but also debt to credit ratio. Try to stay well below the limit. Most credit card companies review accounts once a year and may increase your limit.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: Card, Credit, first, Tips