Credit Score
August 3rd, 2009 at 11:49pm
Under Credit Score
Do you know what your credit score is? Are you aware about your credit worthiness in the market? If no, then apply for your annual credit score absolutely free. This score helps you to know credit standing in the market with all other information.Equifax, Transunion and Experian are 3 credit agencies that issue your credit scores. Once in a year you can get a copy of your score by making request to any of three agencies. It contains the all your transactions of a particular year like your credit borrowing and their repaying pattern. This score makes you good or bad creditor in the market.This score gives you opportunity to check your credit report if it has any blemishes. You can improve your scores by repaying your loans on time so that later, you can qualify for lower rate loans and remove those blemishes from your report as well.Lenders are always interested in knowing your credit scores. As on its basis only they approve or reject your loan application. This score also plays important role in deciding the rate of interest of the loans.Usually the credit score ranges from 300-850. If you have score above 720 then you are considered as a good creditor and if it’s below 580 then you are tagged as a bad creditor. So, if your score is good then your loan approves instantly. One can easily apply for this score online without facing formalities. There are various sites that can offer you the credit score. To apply you just have to fill up a simple form with few details and submit it. You can also obtain your credit score from any of the agencies along with a free annual credit report by signing up with special programs being offered by them.Annual credit score is been decided on the basis of your credit borrowing and their repayment pattern. It is been provided to you by three reporting agencies that is Equifax, Experian and Transunion.
Sophie Wilson is a senior financial analyst at free annual credit report with an acumen for finance and credit cards. To find free yearly credit report, free annual credit report, annual credit score, free credit score, free Online credit report visit
http://www.freeyearlycreditreport.net/
By Credit Info
August 3rd, 2009 at 07:03pm
Under Credit Score
I heard that you credit score would go up anywhere for 30-40 point if you pay a credit card off that is maxed out (if the balance is over a 1,000.00) Is this ture?? And if not does anyone know about what it would go up?
By Finance Enquirer
August 3rd, 2009 at 05:53pm
Under Credit Score
You may not know it, but every time you take out any kind of loan or credit or pay something back, it gets counted on your credit score. Who keeps a record on you will vary according to where you live, but the big three credit reference agencies are Experian, Equifax and Trans Union. They will provide your credit rating to any company that is thinking of lending you money.
All the debts you currently have are included in your credit score. There is a history of all the debts you’ve had in the past ten years or so, and special emphasis is put on anything that has gone wrong. Defaulting (never paying) on any debt will ruin your credit rating completely. Borrowing a lot before you start paying anything back will make you look like a very bad risk, and so will going all the way up to (or even over) your limit on a credit card.
It is also worth considering that the credit reports of anyone you live with may be linked to your report, and could reflect badly on you – your wife or husband’s credit rating is tied to yours quite closely.
The most common method of coming up with your rating is called a FICO score, named after the Fair Isaac Corporation who invented it. Your current credit rating status is prioritized, in this order:
* Payment history, which comprises a whopping 35% of your FICO score. This includes everything, from the timeliness of your payments, to the number of bills you have failed to pay, to the bills that have been forwarded to collection companies.
* Outstanding debt, which comprises 30% of your FICO score. This would tell the lending company how much of your existing credit is being eaten up by existing loans.
* Length of credit history, which comprises 15% of your FICO score. If you have been paying a loan of significant amount over a long period of time, then this would fare well with the lending companies as it establishes a level of commitment they would want to see.
* Credit balance, which comprise 10% of your FICO score. Credit balance is the difference between the current amount of your existing loans and the original amount of the same. The bigger the balance, the lower your FICO score.
* Recent inquiries, which comprise 10% of your FICO score. An inquiry is equivalent to a loan application. The more inquiries you have, the lower your FICO score would be.
Why is your Credit Score is important? Because any time you get turned down for a credit card or any other loan, the chances are that it was because of your credit score. Companies giving out small loans are far more likely to rely completely on this rating than to bother checking your income, and a worse rating will mean that you are offered a higher interest rate.
Your credit score is important when you get car loans and mortgages too. You don’t want to find a house you love only to get turned down for the mortgage thanks to your habit of paying your credit card bills late.
There will always be those times when we would find ourselves in a financial rut. These are the times when bills become due almost simultaneously, when satisfying them is rendered impossible by the other financial demands of our life.
Acquiring loans would help bail us out of these difficulties. In certain cases, loans are quite necessary for our survival. It would be to our best interests that securing a loan be easy and almost guaranteed. A good FICO score would help achieve this, and give us a better position to resort to loans whenever the needs arises.
So how do you to check your credit score? Credit reference agencies can’t hold your information on file without telling you about the information they have on you. Write all three credit reporting agencies a letter and, if you have to, pay a very small fee to have them send you the full credit report they have on you. Actually, new laws allow you to get a free copy of your credit report once per year. Contact each credit reporting agency for details.
You can then check over your credit score, and send a letter back to the agency telling them about anything that you think isn’t right. You might find that an error has made you look bad when it wasn’t your fault. They will include anything you send in your file. If the error turns out to be resolvable since it was not your fault, your credit report will be corrected.
By Credit Info
August 3rd, 2009 at 11:51am
Under Credit Score
If you are trying to rent an apartment, borrow money for a car, a home or even get a credit card, your score can have a major impact on whether you can borrow, how much you can borrow and even your interest rate. Understanding your score is important but there are a lot of numbers and confusing wording that can make this a challenge.
A credit score is a mathematical system that consists of many numbers that are used to gauge your credit risk. The most commonly used form for this is called the FICO score. This score is used to evaluate your worthiness for credit. To evaluate your score, you get a certain amount of points based on the information that is listed in your credit report. The highest score possible is 850 and the lowest is 300. A score of 650 or higher generally means that your credit is pretty good, however, until you reach 850, there is always room for improvement.
If your credit score is 700 or above, then you are considered to be an excellent credit risk. You should have no problem getting any kind of credit and will most likely be offered a lower interest rate for most of the credit financing. Therefore, it is advisable for everyone to strive to obtain a 700 or higher credit score in order to save money on your mortgage, credit cards or other personal loans.
There are three major credit-reporting agencies that will play a big part in your credit. These three are Experian, TransUnion, and Equifax. Your credit score may be different for each of the credit bureaus because they do not have the same information about you and each uses a slightly different method of calculation.
There are a few things that are reviewed by companies in order for them to compose your credit score. They look at your past payment history. How well you pay your bills and when you pay them. They pay close attention to your outstanding debt. If you have too much debt, your score will be lower. It is also composed of how long you have had your credit history. If you are just starting out, your credit score may be lower even though you do not have any bad points on your report.
Your recent credit applications will also be reflected in your score. If you have too many credit applications made, this will look bad on your report. You should also think about what types of credit and loans you have. You do not want to have a lot of high balances on your credit report. These balances along with high interest rates will go against you and decrease your score.
If your score is lower than you want it to be, you should take measures to improve it. You can buy many books and tapes that will show you some great ways to improve your credit. There is also credit card counseling services that you can obtain in order to get good advice for fixing your credit score yourself.
No matter what your credit score is you should sure that you check your credit report once a year. This way you can insure that everything on your credit report is accurate. Review the information carefully, and if there is anything on there that is questionable, dispute it and have it removed from your report. That way you can be sure there will be no surprises next time you want to finance a major purchase.
By Credit Info
August 3rd, 2009 at 07:01am
Under Credit Score
I filed for bankruptcy (chapter 7) a year ago and successfully had it discharged. I’m in teh process of rebuilding my credit and I pulled my credit report and all the creditors included in the bankruptcy have my accounts listed as “bankruptcy” which is destroying my credit score. Is there any way I can have those accounts removed since they are all closed and were included with the bankruptcy? Does anyone have any tips on rebuilding my credit? My score is currently 530 and I would like to raise it to the average but it seems like it hasn’t been going anywhere. What can I do?
By Finance Enquirer
August 3rd, 2009 at 01:03am
Under Credit Score
I received a letter in the mail from Juniper (iTunes Rewards) stating that they have closed my credit card account due to inactivity. I opened the account about 18 months ago and have never actually used it. Can they close my account just like that without any warning? How should I handle the situation? (Is there anything I can even do?)
Also, I know that closing credit card accounts lowers your credit score. Does anyone know how much mine will be affected?
By Finance Enquirer
August 2nd, 2009 at 11:51pm
Under Credit Score
Many people are unaware of what a credit score actually means. In fact, a survey of 1,000 Americans taken in September 2004 demonstrated that only one third of people knew that a credit score was a measurement of how likely a person is to pay off a loan. Having a good credit score is necessary when it comes to applying for loans for cars, mortgages, and credit cards. Furthermore, having a bad credit score can lead to denial of basics such as a phone line in your home. Therefore, it is important for consumers to understand how a credit scores affects them and how it is determined in the first place.
Calculating the Credit Score
In essence, a credit score tracks how well a person incurs debt and how good that person is at paying the bills on time. Businesses, including lending institutions, look for a high score with potential customers because the higher a person’s credit score, the more likely that person is to be responsible with finances and the more that person can be trusted to pay back debts.
A credit score may vary from one credit-reporting agency to the next since they do not all necessarily receive the same information from businesses. Some businesses report to all three of the major reporting agencies, while others may only report to one or two. In addition, the statistical pool used by each agency may vary slightly, leading to a different credit score. All of the agencies, however, utilize the same software when it comes to determining credit scores. Fair Isaac and Company (FICO) develops this software and, therefore, the credit score is often referred to as the FICO score.
Score Factors
A person’s credit score is not static. It changes all the time. Every time a bill is paid on time or late it is reflected on the credit score. In addition, each time a person takes out a new loan or applies for a new credit card, the credit score changes. This is because the credit score is based on the person’s financial history and attempts to make a prediction at how responsible the person will be in the future.
The final score is highly objective and based on statistical data. Points are gained based on specific factors such as late payments, payment history, outstanding debt, and the length of time an account has been open. All of this information is compared to the statistics of people with similar profiles to determine a final credit score.
By Credit Info
August 2nd, 2009 at 07:01pm
Under Credit Score
I heard on some commercial that a bad credit score can keep you from getting a loan, a car, and a job? How is this possible? Why wouldn’t someone hire you because of your credit score?
By Finance Enquirer
August 2nd, 2009 at 05:51pm
Under Credit Score
It is hard to watch television these days without hearing about credit scores. If you are not looking to get a loan or credit card, you may be wandering whether or not they are important. Your credit score is important, regardless of whether or not you plan on applying for a credit card or loan. In this article I will explain what a credit score is and why it is important.
What Is A Credit Score?
Your credit score will determine whether or not you’ll be approved for a mortgage loan, and how high your interest rate will be. Your credit score will also determine the cost of your car insurance. Even certain jobs, which you apply for, will require you to have good credit. Having a low score will make things much more expensive, and you may find that some companies won’t hire you. The easiest way to get a good score is to make sure you’re responsible with making your payments on time. It is also important to understand what is used to calculate the score.
Calculating Your Total
The type of different loans you have makes up about 10% of the score. If you don’t have an established credit history, the number of different accounts you have will be considered. Your payment history makes up 35% of your credit score. The number of different accounts you make payments on is considered, as well as number of late or missed payments you have. Any liens, bankruptcies, or judgments will be reviewed, and this information will be used to factor in your score. Services such as furniture rentals and car loans are included as well as credit cards.
The total amount owed makes up about 30% of your credit score. The number of accounts you have and the amounts you owe on all of them are reviewed. The closer you are to maximizing out your loans, the more likely it is that your credit score will be lower. How much you have paid back on your loans is also taken into consideration. The age of your credit history makes up about 15% of your credit score. If you have a long credit history your score will be higher if you don’t have any negative marks in the past. The last factor that makes up your credit score is called new credit.
New Agreements
New credit refers to the number of new loans you have opened recently, and makes up about 10% of your credit score. The number of request you’ve made for credit cards or loans is also computed. Now that you know all of the things that are used to calculate your score, what can you do to improve it?
What You Can Do To Improve
One of the things you can do is make sure all of your bills are paid on time. If you are too busy to make sure your bills are paid on time, set up automatic payments so that the money is debited from your account on the day it is due. You also want to make sure you don’t open too many accounts within a short period of time. It is also important to keep your balance low in proportion to the total amount of credit available on the loan. You should owe 25% less than the total available credit on your loan or credit card.
It is also better to pay off your credit card instead of moving over the balance to a card that has a lower interest rate. Constantly moving around your balances can cause your score to become lower, because the total amount you owe could fluctuate if you close certain accounts.
By Credit Info
August 2nd, 2009 at 11:49am
Under Credit Score
Janet just ordered her free annual credit report and was excited about what she saw on her report. She decided to order her FICO score, and low and behold, her score increased over eighty points from the last credit report she ordered over a year ago. She had worked hard to pay off her credit cards throughout the year and was pleased at the positive results on her credit report. Janet was so excited that she finally figured out how to improve her credit report and FICO score. Unfortunately, as soon as she found out about her great credit report and FICO score, she ran across some information about a new credit scoring system that was going to be effective soon! She said to herself, I can’t believe it! I worked so hard on improving my score and now they come up with this!
Just when you thought you knew how to understand and obtain your FICO score, the whole credit scoring system is about to change! The three credit bureaus have decided to flip the script on us and have worked together to create a new credit scoring system. It’s called the VantageScore.
Why have the three credit reporting bureaus; Experian, Equifax and TransUnion decided to create a new credit scoring system? They claim the new scoring system will reduce discrepancies between your scores and the three bureaus. These bureaus indicate that the VantageScore, returns more accurate scores on consumers which may have a credit history which is limited.
Are the credit score ranges the same for VantageScore and my FICO score? No. The VantageScore will have a range from 501-990. For instance, a score of 901-990 is an A; 801-900 is a B; and 501-600 is considered an F.
The FICO credit scoring system has a range from 300-850. It appears that the VantageScore system may be tougher than the current FICO score. For example, if you have a FICO score of 720 you could get a 9% interest rate on a credit card you may have applied for. With the VantageScore, your interest rate for this same credit card may be as high as 20%!
The VantageScore became effective for commercial use on March 14, 2006. Time will tell, how effective this system will be for creditors and consumers. It appears that the new scoring system may be more advantageous to the creditors rather than the consumer, since the VantageScore ranges are much higher to qualify for a good interest rate. This would appear to allow creditors the ability to charge consumers more for products and services purchased.
As a consumer, make sure you become informed about the new VantageScore system and how it will affect you! Although the FICO scoring system can be still used by your creditor, they have an opportunity to choose which system they will review for your credit. Now there are two systems currently. How long the FICO scoring system will be around is anyone’s best guess!
By Credit Info
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