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
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 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 Default Category on Apr 20, 2012
Through the years, banks continue to become stricter when it comes to lending processes and options. And while this is a well known fact, there are some instances where even borrowers with good credit profiles have had to face being denied.
According to recent reports, loan procedures completed by banks and mortgage lenders were granted to borrowers having a credit score of 750; this is a ten point jump from previous lending statistics showing the stricter and near perfect credit score requirements that lenders now demand. This has an average loan-to-value ratio of 76% while average refused loans had a score of 699 and a loan to ratio value of 83%.
Today many mortgages are supported by federal agencies such as the Federal Housing Administration or through big mortgage-finance names Fannie Mae and Freddie Mac; while lenders still entrust FHA-backed loans scores of 620 and down payments of 3.5%, which is low. An average borrower going through Fannie and Freddie for refinancing has a credit grade of 770, which is extremely high. While the highest score is 850, many borrowers do not have a score above 800. However, the current average score to refinance mortgage through Fannie and Freddie is now at 720, which was earlier considered good credit.
