How to Improve Your Credit Score The first thing that lenders will check when you apply for credit – whether a loan, mortgage, or a credit card purchase – is your credit score. That’s because before they decide to lend you money, they want to know how good a risk you would be. Lenders are business people and as business people they always consider the risks involved when they make an investment. The investment is you, of course. Or more precisely, your capacity to pay. If the risk far outweighs the investment, then naturally lenders would turn away from such a deal. The credit score helps lenders make their decisions easier and faster. Because your credit score is the closest thing to accurate information determinative of your future credit performance, they base their decisions concerning your credit application on this three-digit number. In short, your credit score is that thing that could make or break your credit application. For this reason, many consumers have decided to take steps to learn how to improve credit score. Even if you already have good credit standing with your lenders, it still pays to learn more ways on how to improve credit score even further. A good credit score can help ensure that you get the most favorable interest rates. How much more if you’ve got close to perfect credit score? Below are some steps to help on how to improve credit score: Improve Your Payment History Paying your bills on time is [...]
Fixing Credit Score Report For you to obtain the best interest rates, there is a need for fixing credit score report. There are times that reporting agencies such as Equifax, TransUnion and Experian, may have bad information about you and this will matter much when financing institutions will give their decisions on your application. In fixing credit score report, you just have to follow some simple steps then go back and grab the terms that you want. There are two most effective ways: fixing credit score report through appraisal bureaus. fixing credit score report through the lender who made the mistake. With the appraisal bureaus, initially there is a requirement on your end to discover what is wrong, If ever you were not able to obtain a written copy, you can get a free government data and find out what is said. The next is to collect all the evidences that will authenticate that such appraisal bureau has to do something with the mishap done. Scout for copies of related documents, do not give the original but only those that you have duplicated. It is not easy to file for another replica because it means that you will have to go through the hassle of the process. After having accomplished it, you are ready to send them a letter with all the legal files and indicated instructions on how they should overhaul the damage done. Enclose your complete name, address, birthdate and Social Security number. Include as well any [...]
Credit Rating Scores At this modern time coupled with all the innovative technologies, people have been wanting things to be quick. Even when eating, which is why fast- food chains have been created. Even when researching, which is why encyclopedias are rampant over the internet. Even when shopping, which is why automated- teller machines are scattered all over. Even when luxury- spending, which is why credit rating scores are very much beneficial nowadays. Credit rating scores are distinguished by the reporting agencies that issue the points based on disparate assessment methods which are all grounded on different factors. There are times that people only take into consideration the information found on their accounts which is actually based on several matters such as payment history, current debts, time length, type mix and application frequency. All of those mentioned are essential in calculating a person’s points. Equifax, TransUnion and Experian are the three major reporting agencies in the United States. They all have variegated criterions used which are weighted differently. Making it the reason why the points they give are not the same as the others. However, they are all rooted from lone credit rating scores. FICO, acronym for Fair Isaac Corporation which is the brain- child behind the software that has been applied since the 1960’s, is the reference of Equifax, TransUnion and Experian. Credit rating scores range between 350, an extremely high risk condition, and 850, a tremendous low hazard status. In a gathered statistics in 2003, almost a [...]
When you have started to purchase a car or acquire a land through mortgage, it is just but wise to keep on checking your credit score. Those are the magic numbers that lenders deliberately look into when they make decisions as to extending your limit and granting you incentives. Checking your credit score regularly will avoid any complications. As for the lenders, it is where they will identify how you are going to reimburse the money you borrowed from them. It is actually a snapshot of your “risk” at a particular point in time. The higher points you have accumulated, the more likely you are to accomplish your bills on the dot. With that, you will also be receiving exciting perks. The most widely known software calculator used since the 1960’s is the one developed by the Fair Isaac Corporation. Checking your credit score through FICO is more reliable than the others as it is also been patronized by United States’ three major agencies namely Equifax, TransUnion and Experian. However, it is not perfect so it is still subject to errors that will occur in your account. FICO develop points solely on the data of a particular person. Checking your credit score as often as possible is very crucial when you enroll for the next mortgage program. It is where it will be compared to the other thousand of applicants. Afterwhich, computation will follow that will project the level of future appraisal risk for a specified individual. As you [...]
9 CREDIT SCORES YOU NEVER KNEW EXISTED You already know about your credit risk score, more commonly known as your FICO Credit Score. That is the one we normally think of when we talk about credit scoring but are your aware that you are being analyzed based on other lifestyle choices and these Nine other types of Consumer Scores that are relatively unknown — that affect you tremendously: Revenue Score - This score measures how much money you are likely to make the creditor. This is measured by rank-ordering your revolving credit accounts by how much of a revenue source you might be in the future. Bankruptcy Score - Predicts if you are likely to declare bankruptcy. It looks at data such as how many high-balance and delinquent accounts you have. Creditors know that anyone who has a high number of late payments or maxed-out accounts is headed for trouble. Response Score - You know all those “pre-approved” offers you get in the mail? Someone is tallying the number you throw away. The more offers you accept, the higher your response score. Attrition Score - This score addresses the likelihood that you may leave one lender for another. If your score is high enough, you will get convenience checks in the mail; or even a personal phone call from the creditor, offering you incentives to stay with them. Behavior Score - This very specific score measures your overall performance with one creditor. Information includes how long you have had [...]
Pay on Time Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month–for example, if it’s due on the 10th and you get paid on the 15th–contact your credit card company to see if they will change your billing cycle to fit your cash flow.
Payment History Tips Pay your bills on time. Delinquent payments and collections can have a major negative impact on your FICO® score. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score.