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 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.
Posted by: joymali
in Other on May 8, 2012
For starters, your credit score is a number that will fall within 300-850, 300 being the lowest. Your credit will determine how worthy you are to lenders, banks or even companies. Having a good credit score can do you a lot. That is why being educated about the credit score range is very helpful and important at the same time. Below is the range chart to give you an idea about the advantages and disadvantages of the scores.
Excellent= 750-800
Chances of getting a loan is high and you get the best and low interest rates as well.
Posted by: joymali
in Economy on Apr 20, 2012
Improving your credit health is only possible with honesty and good financialmanagement. A critical eye towards your credit and how much you can financially manage given your income and debts will allow you to manage your finances more efficiently. Understanding what’s in your credit report and how your credit score was computed will boost your rating and keep your report free from any information that may cause your scores to get pulled down.
Here are some guidelines that will allow you to improve your credit score.
1.Free credit report from Equifax, Experian and TransUnion
Your free copy of your credit file is a document that houses all your credit related information. Read and understand them carefully to make sure that the information is right and free from errors. Individuals should conduct a credit check to understand the aspects that are responsible for lowering your grades. Outstanding bills and judgments against you are hindrances for having good scores.You should try to avoid such problems. Any mistake on credit statement should be immediately reported in writing.
2.On time payments essential for uplifting your credit score
Making payments on time and missing deadlines can influence 35 percent of your score. You can repair your credit by ensuring that you pay minimum payment dues, if you are not able to pay in full.
3.Expedite settlement of yourdebts
Negative remarks on your file are likely the reason that makes you sway from one lender to another. To eliminate those remarksfrom your file, it is important that you should start paying attentiontodebts such as credit cards and other borrowing methods.Your effective management of debts will take offeliminatebad remarks from your credit statement and will alsolowerthe credit utilization and percentage of the available credit.
4.Do not delete the accounts
It is vital that you must not end the accounts which are paid off. You will reduce the available credit amount and this will also boost the utilization rate. It also leavesa bad impact on your score.
5.Regular credit check of the file
This is also a way of making you well versed with the changes that take place in your credit details.The updates in the file are also responsible forfluctuations in your credit score. Contrary to popular belief, it is not something that you can do once a year. It is essential that you are able to instill the habit of routinely doing this by signing up with one of the services online offering unlimited access to the report and also free credit scores.
