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
How can your credit score keep you from getting a job?
Question by Martini: How can your credit score keep you from getting a job?
I heard on some commercial that a bad credit score can keep you from getting a loan, a car, and a job? How is this possible? Why wouldn’t someone hire you because of your credit score?
Best answer:
Answer by Michelle
Having a good credit score and history is one way of checking if you are responsible and reliable. A large company is not going to hire you to work in accounting if your own money management is a mess, plus they consider you a theft risk if you are hard up for cash. Not necessarily right, but it’s what they do. If you are missing car payments and in debt up to your eyeballs it doesn’t look good to them.
Know better? Leave your own answer in the comments!
How to Keep a Perfect Credit Score
A perfect score of 850 may just be a technical perfection since it is very rare to see people with a credit score as high as this. A good perfect score usually includes the following: a mortgage that is over three years old, one or two auto loans that are more than two years old and less than five credit cards with very low balances that are over 2 years old.
Build up your personal credits
If you want to start out by buying things out of credit, you should enroll yourself first to credit card companies so they can already provide you with credit cards. You may need the help of a family member or friend to sign the papers for your first. These companies may also need proofs that you can pay your monthly bills. A good example is a letter of employment from your company.
Avoid delayed payments
Aside from not being able to pay late payment processing charges, paying on time is vital to maintain a good credit score. A single delayed payment can already have a huge impact on one’s credit score and every credit detail matters. If you have billing disputes, you can still pay on time and wait for your disputes to be resolved. Anyway, you will be receiving refunds in case your dispute gets approved.
Maintain a low credit card balance
It is always recommended to maintain a limit of 25% or below when it comes to your credit card balance. By doing so, it will show credit card companies that you are still interested in paying off your debts and is a good borrower. Some of these companies will even maintain or increase your credit limit.
Avoid too many credit lines
Instead of making you look reliable, too many credit lines will show that you don’t monitor and take care of your debts. If you have a credit card that has been inactive for a couple of months, make small purchases out of it or you can just cancel the card. Using them will reflect your capability to purchase and pay the bills on the due date.
Always pay the minimum on due dates
To avoid credit reports, always pay the minimum balance every due date. If possible, pay more than the minimum. Credit reports may lower down one’s credit score. Paying even the minimum balance will show that you are still trying to pay off your debts and is working on getting them paid.
Live within your means
If you own a number of credit cards, it does not exactly mean that you can just swipe them anytime you want and make purchases. Before swiping that cute plastic of yours, ask yourself if you can handle to pay the monthly bills. Don’t take on more debt that you can handle.
Keep revolving balances low
If you are planning to apply for significant loans in the future, reduce your balances at least 60 days in advance of your planned application date. This is because credit bureau balance updates are lagging and the credit scoring model puts major importance on the amount of your revolving balances.
Hire a consultant
If your low credit scores are consistent, it may be time for you to hire a consultant and pay him for credit repair. One’s credit is important and most credit repair services are affordable. Think of it as an investment.
Written by iwizard
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Categories: Credit Score Articles Tags: Credit, keep, Perfect, Score