Credit Score Articles

What You Have To Take Into Account When Fixing Your Credit Score

Credit score is practically one of the most important factors in our financial lives. If your credit score is not as ideal as you would like it to be, don’t lose hope. You can always take certain measures to boost it.

However, a lot of us still get confused. What do we have to zero in on to be able to enhance our credit score, really? The factors that make up a credit score aren’t known to public, but we have here are some factors that you need to prioritize when you plan on fixing your credit score.

You should always pay your bills on time. Delayed payments, even just for a few days, will have negative impacts on your score. Payments made 30 days after the appointed time will be considered late. Most lenders report all delayed payments and report them to the credit bureaus in different batches. Therefore, if you are delayed with your payments even just for a day, your account could be reported alongside those that are more than 59 days late.

Your credit balances serve as a proof to your potential creditors how much cash you keep and it can indicate how good you are as a borrower. Higher balances on credit accounts would cause a negative impact on your score

Those who open multiple credit card accounts all at the same time could be a warning sign to prospective lenders. This just shows that you are strapped for cash, and lenders would not want that.

If you have the habit of maxing out your credit cards, then your credit score will definitely suffer. It is recommended that you keep your balances down to less than 35% of the available credit. It may sound difficult especially when you see things that tempt you to buy and buy, but discipline is called for in this situation.

The further your credit history goes, the better it will do good for your score. Just make sure that you have been good with your financial responsibilities.

Credit scores aren’t here to give us headache. It actually helps us manage our finances, thus making it easier for us to manage our lives as well.

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Posted by Trevor Jones - September 4, 2014 at 8:52 am

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Redeeming Your Credit After Bankruptcy

Following bankruptcy, your initial step should be to repair your credit. With no proper credit record, you may be deemed untouchable by many creditors as wells as banks.

If ever you get credit after bankruptcy, you must be very cautious and don’t default in terms of payments or you’ll never be able to redeem your good credit.

A credit card is practically the quickest way to enhance your credit. Always monitor your schedule for repayment. Whenever you get loans, make sure you don’t commit the same mistakes that brought about bankruptcy.

You can attend special classes held by non-profit organizations or perhaps debt management programs. Such programs can be very useful if you don’t have money, filed a bankruptcy, or when you need help managing your finances. Financial management is a handy skill and it’s not exclusive to money. You can use it in disciplining yourself.

In the event that you file for bankruptcy and it is discharged, it would indicate that your current debts were paid in accordance with the bankruptcy rules. It takes about two years to gain back your normal financial status.

You can get a loan even before the end of your lock-in period. Nevertheless, it can be difficult to attain. Your post-bankruptcy credit report could come in handy here. If it’s impeccable, you’re likely to be approved for a loan. Besides, you are required to make a large deposit of 3 to 5% of the whole amount.

You can get help from your friends or family members for the deposit, but you must keep proof of all the money collected since the creditor would want to know all the sources. You can borrow money to use for the deposit but the creditor will never approve you if this is how you regularly get money. You must be employed and have steady income to sustain yourself and be able to repay the loan as well.

These are just some of the ways you can redeem yourself after bankruptcy. Always remember to boost up your credit as much as you can.

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Posted by Trevor Jones - August 28, 2014 at 8:57 am

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The Myth About Average Credit Scores

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. Or 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. It may burst your bubble but the answer to the question in your head is no, there are no such thing as average credit scores.

For that frequently asked question, there are sadly no simple answers. Credit scores also known as FICO scores usually range from 300 to 900 points. The creditors lending money utilize these scores as a window to the background of a potential creditor. It is a basis on whether or not a creditor is worthy to be approved. Most of the time, the people with ratings that fall from 620 points and below tend to have a hard time acquiring the coveted credit. And if they do so despite the low credit score, they will still most likely get the least flattering terms and conditions. As desperate as it sounds, it seems like it is better to have bad service than to have no service at all. On the other hand, people who have credit scores 700 points and above can look forward to top of the line terms and conditions as well as be placed in an arrangement where you have the privilege to make settlements about how you wish you credits will be handled. This is the kind of position that only people on the 620 and below can hope for.

According to a publication authored by Fair Isaac, the maker of credit scoring and the one providing credit scores to three big time credit bureaus entitled “Understanding Your FICO Score”, it says there that the average credit score actually varies from the lender and the industry. The creator himself said that this credit score does not exist. Nevertheless, the word of mouth still lingers among people involved in this kind of business.

Now that you are already aware of this, you must escape from the thought that you belong to the average credit score holder. Work your way up and receive the best services they can offer. Because as proved by evidence and survey, average credit scores will remain a myth from this time forward.

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Posted by Trevor Jones - August 19, 2014 at 8:29 am

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Medical Bills Could Lower Your Credit Score

Among the most common credit score killers is medical bills. There are a lot of instances where your score can suffer because of a misunderstanding with your insurance or your doctor. This could actually dock you big points for something that isn’t actually your fault. And then there are time where your score suffer because you simply just can’t afford the bill.

As a matter of fact, medical bills that go to collections are treated the same way as any other type of bill that goes into collections in the FICO score formula. Experts claim that even just one medical bill that has gone to collections can mess up your credit score by 100 points, thereby compelling you to enact a lengthy credit repair technique to bring the score back up as time passes by.

That being said, understand your insurance: A lot of medical bills go to collections due to people not being able to afford them. One way to better plan and get ready for prospective medical costs is to know and understand your insurance plan. For instance, is it going to cover wellness visits? What about the deductible? Will you need to shell out money out-of-pocket after you meet the deductible? If you are aware of these things, it can better help you prepare should there be a surgical procedure or emergency instead of take a “wait and see” approach for when the comes.

Get a payment plan. Surgeries, procedures as well as hospital stays can build up. A lot of people could not afford to pay the sum of the bill in full right away. Ask the hospital to see if you can have any particular payment plan to make regular installments toward the bill. A lot of hospitals will not charge any interest as long as the balance will be paid within one year or two.

Always have the records and keep them. See to it that you keep all your medical bills and always look into your credit report and be watchful of inaccuracies. If your report doesn’t go hand in hand with your personal records, take immediate action to have any get rid of any discrepancies from your report. Or else, you may need to repair credit for nothing.

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Posted by Trevor Jones - August 7, 2014 at 12:50 pm

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Swipe Away With Secured Credit Cards

There is a reason why it is called a secured credit card in the first place. It is the best way to deal with your expenses and at the same time enhance your credit history. In addition to that, with the modern society taking its toll nowadays, you can surely make use of that credit card whenever and wherever.

A credit card has moved a level higher. It is what most airlines, car rentals, hotels, restaurants and stores are looking for in order for you to be able to utilize their services and purchase their products. It is also a great way to keep yourself secured by not having to carry with you bills. It offers safety and convenience that you can enjoy all the time.

However, the catch is being able to find the right company that offers a secured credit card with a deal that is worthwhile. If you come to think of it, the search may tend to be long and discouraging because of having to consider a lot of option. But as long as you have the determination and information needed to get the credit card in your hands then taking time to decide would not be a problem for you.

So basically what happens is this. If in case you have a poor credit history because of past missed deadlines or if you have not even had a credit card before then you will most likely not be qualified to avail of the regular credit card. The option left for you is to opt for a secured one. In a secured credit card, anything and everything that you use this card for will be immediately backed up by your own personal money. That money is in a bank account which will be linked to your credit card line.

But if you want a shortcut and get pass all the hustle and bustle, you can right away apply for a Visa or Master Card. These are the major and most trusted secured credit cards available at your expense since these are accepted almost everywhere.

Now what are you waiting for? Fund that bank account, apply for a secured credit card and get to enjoy all the perks you want with just a simple swipe.


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Posted by Trevor Jones - July 21, 2014 at 9:34 am

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Getting Expert Help In Boosting Your Credit Score

If you want to get expert help in boosting your credit score, you may get confused with credit repair companies and credit counseling. Let me enlighten you on this.

Let me begin with credit repair companies. This kind of company helps you clean your credit history through boosting your credit score. They study your credit report and check if there is any error. They come up with ideas to enhance your financial status which you can use for lenders.

On the other hand, credit counseling is leaning towards a different side. They aim to get and keep you out of debt. While this is important to people who have a hard time managing their credit, it usually does not work for people who are looking to boost their credit scores.

Credit counseling companies let you close down any revolving accounts that you have such as gas cards, store cards, and credit cards, just to name a few. They talk to you lenders about the debts that you have and bargain as much as they can. They make the payments with the monthly fees that you pay them.

While it sounds efficient, it can indicate your lack of finance management. It shows that you cannot control your own finances, and you require other people to do it on your behalf. Additionally, closing down any account will have negative impacts on your credit score. However, your debt remains the same.

If you are asked for monthly fees, you may want to opt for other options. Think about how they make money from you per month. Therefore, they practically want to keep you as long as possible. The longer it takes for them to do their job, the more money they will be making from you.

As much as you can, work on boosting your credit score on your own. It may take a long time, but it is extremely doable.

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Posted by Trevor Jones - June 30, 2014 at 8:22 am

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Raising Credit Score On Your Own

Credit is actually a huge component of our financial life. It can pave way for you to get a hold of your own home, be approved for a personal loan, or even setting up a certain back account.

It goes without saying that when your credit is not as good as you would like it to be, there are ways to get back on the right track. You can deal with this by pumping up your credit first, but going to credit repair companies is not really necessary. You can do so on your own!

Always keep track of your credit to be accurate. It’s absolutely best to get in touch with the three major credit bureaus (Experian, Equifax, and TransUnion) and get your up-to-date credit report so as to be precise with the information. Additionally, download letters written ahead that you would use for credit reporting agencies as it can be useful.

Get your yearly credit report, and know that it’s free of charge. Do not hesitate to demand for a ‘proof of debt’ from your creditor and bargain with such creditor about your payment plan in order to prevent yourself from getting into any kind of trouble over the long haul.

If there would be any judgment hearings, see to it that you show up, no matter what it takes. It is also recommended that you know about the statue of limitations for all of your debts.

You can find that there are several measures to take when you want to raise your credit score. Dig even deeper and look it up online or ask around but never forget to put all the knowledge you have in action.

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Posted by Trevor Jones - June 21, 2014 at 9:06 am

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Paying Bills on Time

As you may know, credit is one of the biggest problems a person can have. Even most of the world’s countries are in debt. This little devil just gives everyone a headache, but you wouldn’t have any problem to begin with if your credit score was in good shape. Don’t wallow in the doldrums if your score isn’t exactly commendable, you can always do something to improve it. But before getting down to detail, you should first know what credit score is.

Credit score is a numerical expression that shows the creditworthiness of a consumer. Lenders depend on this number to decide whether to approve you for a loan or not. If your credit score is high, you can attain credit from possibly anywhere you want to, depending on your source of income and the like.

Your score drops as you apply for a credit. When you are having a hard time getting approved for loans you are applying for, it basically means you have a poor credit score. To be able to boost it back up, you will have to be on time with your payments.  And pay off everything in full amounts.

The majority of people miss a payment here and there, and even just one late payment can hurt your credit score. But there’s always a solution to every problem, first, know what your credit score is. You can get it online from the credit bureaus annually, free.

A surefire way to boost it is by paying your debts on time, there are other things as well. But this should be always on top of your list. When your credit score is improved, you can then start using credit again.

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Posted by Trevor Jones - May 27, 2014 at 9:23 am

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Boosting Up Your Credit Score

With great credit score comes great benefits. The higher it gets, the more you are in control of your finances. Truth be told, you’ll reap more benefits, spare more money, and enjoy relatively low interest rates as compared to people who have poor credit scores.

For starters, creditors tend to approve you for any loan application and you will be given the lowest rates possible since they are confident enough that you will be a good borrower based on your records. That said, you should always be on the lookout in boosting up your credit score.

One of the most vital things to steer clear of is too many credit cards. This only gives your future lenders the wrong notion that you are in a lot of debt and approving you of another loan might just put you off even more in meeting your obligations. So always limit your credit cards to 3-4.

Additionally, and yet again, pay your bills on time. You ought to have a record of at least seven years of meeting your financial obligations at an appointed time. Mot creditors don’t back up people who have track records of late payments. Basically, if you intend to apply for a loan someday, start practicing prompt payments now.

More to these, get your annual credit report. If you’re not aware of it, you are actually entitled to a free credit report from credit reporting agencies namely Experian, TransUnion, and Equifax. Browse it to find errors or discrepancies on the information on your credit report. And if there is any, directly report them to the bureaus which are expected to fix it within 30 days after a systematic study.

Keep track of all account statements that you have as there are credit card companies that raise your interest rate or drop your available credit if you pay late, even if it’s not to their own company. With the right practice and time, you’ll be able to boost your credit score and reap all benefits after successfully doing so!

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Posted by Trevor Jones - May 21, 2014 at 9:25 am

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Credit Score Considerations

The exact details of a FICO (Fair Isaac Corporation) score are never made public. After knowing your score, do you always get into wondering how they came up with it?

Late payments always have a negative impact on your FICO score. Payments that are received more than 30 days after due date is considered late. Most creditors report every late payment and sort them out in different batches. That said, if you are late even just for a day, there is a possibility that your account will be reported alongside those that are 59 days late. It happened to many people.

Your credit balance displays how much money you have on you and just how responsible you are as a borrower. High balances create a negative impact on your credit score.

Never think of opening several credit card accounts at a time since this create an issue with your lender. For this reason, you might be subject to multiple credit inquiries. That is because you seem strapped for cash, which is actually quite harmless to your credit score.

If your credit cards are maxed out, you will not only suffer but your credit score will go plummeting, too. See to it that your balances are less than 35% of the available credit. It can sound quite difficult, but you can totally do it.

The longer your credit record is, the better it is for your rating. It is recommended that you have different kinds of credit card and never close down old ones since they will help you improve your score.

With some time and effort, it is possible to raise your credit score. Don’t let your credit score overwhelm you. If you’re unsatisfied, there are so many measures you can take to boost such score.

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Posted by Trevor Jones - May 14, 2014 at 9:41 am

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