Posted by: joymali
in Default Category on May 24, 2012
Your credit needs to be maintained to keep your score in good shape. Credit scores today are becoming more and more important and their purpose is ever increasing. Because having a good credit score, you can practically get and do anything easily. Good thing there are ways for you to keep it high that requires minimum effort.
1. Keep using your credit card. It’ll help you build up your score and prevent it from being stagnant. But don’t get too carried away though, use your card wisely. Never go beyond your limit as it will just hurt your credit score. Always stay 20-30% below to keep your score healthy, you’ll also be on the good side of the banks. If you’re thinking about not using your card to stop the bills from coming, think again. You will still pay for your card even if you’re not using it, your account may even be up for closure if you’re not using it.
Posted by: joymali
in Default Category on May 23, 2012
Your score is a number that ranges from 300-850. It is calculated using your credit history and the information on your credit report. Your score is something that creditors and banks look for to determine if you are worthy for a loan or not. Same thing goes for your report, creditors also check it but your credit score is like the summary of everything and it’s easier to look at.
There are several different versions of credit scores. The most common version is the FICO score (Fair Isaac Company), wherein the score is used by creditors to determine your worthiness. And because of your paying history is more important than others, some are given different weights in calculating your score. And even if the formula for coming up with your credit score is owned by FICO, we’ll give you details on what information is used for computing your score.
To give you an idea on how it is computed, we have here a chart with the information that is included in your report along with the percentage
Debts - 30%
Payment history - 35%
Credit history length - 15%
Inquiries - 10%
Other accounts - 10%
1. Debt level- Your debt, in comparison to your credit’s limit is also known as credit utilization. If it’s high, it means that you’re close to your limit, and that’s going to hurt your credit score. That is why it’s best to stay 25-30% below you credit limit.
2. Payment history- This is what banks or lenders are most interested about. They want to know if you pay your bills on time and regularly. Collections, late payments or bankruptcies will have an effect on your credit history and credit score. New delinquencies hurt your score more than the old ones.
3. Credit history length- The longer your history is, the better. It will give more information about you and your paying or spending habits. Also, you’ll get more points if you leave the accounts that you’ve had for a long time open.
Posted by: joymali
in Default Category on May 23, 2012
With the current global economic state, everyone’s credit rating is at high risk. For anyone who is working towards achieving or maintaining impeccable credit scores, the economic scenario everyone is facing means you could face have some complications headed your way—and it’s a reality that everyone across the globe has to face.
Your credit report basically contains all your personal details, credit history, and public records related to your financial standing and stability. And all inquiries made by third party institutions are also diligently recorded in it. It may also contain your repayment history, late payments if any, missed payments, defaults and so on. The credit report also defines the details of credit or loan applications you have made. It’s easy to assume that this information is negligible, but such information can be used by creditors, lenders and banks to cross reference your financial credibility should you try to avail of loans.
Given this, maintaining a good credit score is essential for you as a borrower and information detailed in it could potentially lead to your loan applications for mortgages or even employment to be denied. This same rule applies to your partner or any other member of the family since a bad credit reports bring negative reputation for you and the refusal for lending finances automatically applies for the whole family residing at the same address mentioned in their list.
Therefore it is necessitated to review regularly about your credit updates. Some of the major bureaus like Experian, Transunion and Equifax can help you in this regard to provide you annual credit report which is absolutely for free. They will provide you a free copy of annual credit report on request so that you should get acknowledged regularly about all your financial transactions. Once you have a bad record you will have to wait for 7 years to get it removed. Therefore, you must pay attention to your credit score so that your online reputation may not be hampered further.
This predicament can be easily avoided by making a point to diligently review your credit report. Since credit reporting also detects any unauthorized access of you accounts and changing of your address without your consent, it’s also a good way to ensure that you are able to avoid identity theft cases. This means your credit score can equally act as a financial protective measure to ensure that your financial activities are correct and consistent.
Posted by: joymali
in Default Category on May 16, 2012
There are a lot of advertisements out there claiming that they are the best for your credit account. This is actually very risky because if you do sign up for it, you’ll be giving out your personal information. You’re more at risk of identity theft whenever you share your particulars. And this is where a credit monitoring service will come in handy.
A credit monitoring service…
1. Will help you with credit protection and early detection. Most people who are subscribed to this have been victims of identity fraud. But that doesn’t mean that you have to wait for that to happen to you. You better step it up a notch if you are trying to protect your account especially if you require exclusivity. A credit monitoring service will notify you with all the changes or updates in your account. A simple change in your address will get the service to inform you about it. Also, transactions or other activities will be included.
2. Let’s you check your credit score as often as you want, even when your away. If you travel a lot then this is for you. It will keep you updated as often. With the devices we have today, it’ll be very easy to keep track of your record wherever you are. This is also less of a hassle and less time consuming than ordering your record through papers which may take 1 month before you get it. If you get to track it regularly, you’ll be able to catch errors early, and then you get to fix them quickly.
3. Gives you overall peace of mind. Being subscribed to one let’s you know every detail or change about your credit. No matter where you are, whether you out for the holidays, or just at home, you’ll be at peace knowing that your credit is just one click away. Being able to check it whenever you want and being able to track fishy transactions is a bonus if you want to keep your credit score high and your record intact.
Posted by: joymali
in Other on May 9, 2012
The credit score range will be the one to determine whether you are worthy enough for a loan. You will have a credit score that will fall within 300-850, 850 being the highest. Your credit score can either get you into trouble or make your life easier because of how bankers or lenders will see you. Take a look at the score range below and know more about how it will affect your life.
Excellent= 750-800
Easy loan applications (Car loan, home loan, student loan, appliance loan) with low interest rates.
Good= 680-699
Easy loan applications (Car loan, home loan, student loan, appliance loan) with reasonable interest rates.
Average= 620-679
Easy loan applications (Car loan, home loan, student loan, appliance loan) with fair interest rates.
Low=580-619
Difficulty in having an approved loan plus you’ll get very high interest rates.
Poor= 300-579
Chances of being denied are high with very high interest rates.
The ones above are just to give you an idea of what to expect depending on the score that you have. You may have different results but one thing is for sure, you’ll benefit more from a good credit score. It can help you save money too. Good thing there are simple ways for you to achieve a healthy credit score.
Check your credit score regularly; you are entitled to one free credit reports every year from the three big credit agencies. Better to request for a report every 3-4 months. Check it for errors and if there are any, file a dispute as soon as possible. Errors can affect your future transactions and may put off your score too. Next, try to finish off all your balances. In fact, you’ll get better results if you pay more than what is necessary. If you do this, you’ll finish it off faster and the interest rate will be go down as well. You’ll be saving more money overtime.
When the bill comes, pay for it as soon as possible. Paying out on time is a good way to get credit score higher. Be warned that missing out on a payment will leave a mark on your record that may stay for 7 years, so you better steer clear from doing that.
That’s basically what you have to do to be within a good range. Just keep track of your record and pay your bills on time. Use your credit wisely and stay within the limits.
