The importance of Credit Scores and Credit History
Here are some thing you might want to ask yourself. Will I have to borrow money to have some of the nicer things in life? Will I have to borrow money just to survive? Consumers with credit problems or issues today will have more grief than ever if they need to borrow money.
If you qualify to borrow money you are extended credit. Paying this money back on time will assure you of having and keeping good quality credit scores. This will allow lenders to extend you credit in the future.
When paying borrowed money back the best way to avoid bad credit is to pay it on time. When you have a low credit score it cost you more to borrow money. It cost more for just about all items needed in every day life. Credit cards, auto insurance, auto loans, loans to purchase a home just for example. It is a fact that not paying on time will cost you more in the long run.
A lot of times the consumer (YOU) can be unaware about your credit. Credit is one of those things in life that you should familiarize yourself with. Know how it works for you and know how it can work against you. With the internet you can find out about anything and I promise you there is plenty of information about credit. If you choose not to google credit, just go to my blog and you will learn a great deal about credit and credit scores.
I can be emailed at any time with any questions concerning credit issues. All through your adult life you will hear about credit and credit scores. if you have questions concerning your credit and/or credit scores they are just a click away. My blog provides the basic information and then some.
Credit scores can drop unknowingly, there are things you can do to avoid that from happening.
. Get your free annual credit report and check for mistakes at least once a year.
. Avoid interest charges-pay off your balance every month.
. Avoid late fees – pay on time.
. Keep your older credit cards open. The length of your credit history can help you.
. Don’t apply for too many loans, credit cards or cell phone plans.
. If you need a credit card, shop around for the best deal before applying.
. Be aware of scams!!!!!
If you have negative credit scores, take action. Get some help, get it fixed. After that keep it that way have it check at least once each year. Remeber, it is your credit so take care of it.
Want to find out more about Credit Problems Solutitions credit, then visit Tim McNeese’s site on how to choose the best credit scores for your needs.
What Is A Credit Score And Tips On Raising It
Definition of a credit score
Your score is a numerical rating based on factors that are measured by your willingness to repay loans. The score is calculated from the information that is in your profile which is a record of all your credit activities. This score predicts your credit performance, which means the higher your score, the better credit risk you are.
The FICO score is most the most popular credit scoring system. You can get your FICO score by Clicking Herefrom any of the three main credit agencies. (it is advisable to monitor all three. Equifax (800) 685-1111 Experian (888) 397-3742) Trans Union (800) 916-8800
Since the credit score is derived from a credit history, there must be a minimum history in order to get an accurate score. Before a credit report Click Here to download yours now can be obtained, you must have a minimum of one account that has been open for at least six months, and current activity within the most recent six months.
You would have to develop a credit history to be eligible to apply for a mortgage. If your score is too low, there are ways to raise your credit score . However, it is almost impossible to improve it in a short time period. It is important to employ credit habits that will ensure a high credit score at the time you most need it. What are the relevant factors considered in a credit score?
The credit score is only interested in a borrower’s willingness to pay back the loan. It predicts the likelihood that the loan will get repaid based on the accumulation of the borrower’s past performance and current standing. Such information as savings, income or demographic data like nationality, race, religion, marital status, and gender are specifically left out of the credit profile. It is not meant to measure the borrower’s ability to repay the loan. For that, the lender looks at your debt-to-income ratio .
Credit reports track both positive and negative activity in your credit history. It tracks when you make your payments, your balances, the length of the history and the type of credit you have. The number of inquiries and and legal action will also show up, such as bankruptcy or a lawsuit. Late payments can reduce your score, but current payments can increase it.
Different weights are assigned to factors that are considered. Such as FICO assigns 35% of your score to your payment history, 30% to your debt level, 15% to the length of time of of you history, 15% to the type of loans you have and 5% to your credit score requests, which measure your level of pursuit after new credit.
Since this information is considered in most applications for credit, loans, mortgages and even insurance or employment, it is important that you maintain a high credit score and ensure an accurate credit report. To Get yours Now Click Here
How can you raise your score? Raising it takes time, you can raise it by as much as 50 points per year by carefully managing your credit. You should develop positive credit habits to promote good credit history. Make sure you pay everything on time, even your utility bills. Make sure you check all three credit bureaus to make sure everything is accurate, make sure you do not max out your cards, leave an available balance. Obtain all reports annually and make any corrections in writing. Click Here to get your score. You should always continue to re-establish your credit, even after a bankruptcy. Most lenders are concerned more about what happens after this derogatory incident. Continue to monitor all reports and make sure all your corrections are in writing.
To download your credit reports Click Here. Unique version for reprint here: What Is A Credit Score And Tips On Raising It.