Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Credit Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
Credit Scoring: What You Dont Know Can Hurt You
You've probably heard the term credit scoring. You may have some idea that your credit score can have an effect on your life. For example, you may understand that when you apply for a mortgage, the mortgage company will check out your credit score. But did you know that the interest rate you can get on your mortgage -and on credit cards - will depend heavily on your credit score? Did you know that more and more employers will check your credit score when you apply for a job, and that insurance companies may raise your premiums or even cancel your insurance based on your credit score? So, what is a credit score and how is it calculated? Your credit score (in some cases, it is called your risk score) is a rating of your credit worthiness or how likely you are to repay a loan and how likely you are to repay it in a timely fashion. And it can have a dramatic effect on your life. There are three companies that gather information on how you handle credit. They are Equifax, TransUnion and Experian. They each determine your credit score based on a formula developed by the Fair Isaac Corporation but each calls its credit score something different. Trans Union calls its credit score "Empiraca." Experian calls its score "FICO," and Equifax will tell you its credit score is "Beacon." Credit scores range from 400 to 900 with the average score somewhere around 700. This is one case where higher is not better as the higher the score the greater the risk you are thought to be. What are the factors that make up your credit score? There are five factors that determine your credit score. The first of these is payment history. About 35% of your credit score may be based on how late you have been paying your bills (30, 60 or 90 days). The later you have been, the more negative effect this will have on your score. So will matters that are in the public record, such as bankruptcies and accounts that have gone to collection. About 30% of your credit score will be based on the amounts you owe. If you have, for example, a credit card that is close to its limit, this can impact your score negatively. This means it may be better for you to have a lower balance on several different cards than a large balance on one card. The third factor in your credit score is the length of your credit history. If you have an account that has been open for a long time, this can have a positive effect on your credit score. About 15% of your score will be based on the length of your credit history. About 10% of your credit score will be based on how much new debt you have requested. So, if you recently applied for a number of new credit accounts, your score may be negatively impacted, Your credit score will also depend (about 10%) on the types of credit you already have. For example, if you have loans from finance companies, this can negatively affect your score. Like it or not, your credit score will also reflect your level of education. For example, a college-educated person will be given more points than a high school graduate. How long you have lived in a single location will also affect your credit score - for good or for bad. So will the number of years you've worked for the same employer. The companies that score your credit just plain like stable people. And finally, if you are a homeowner, you get additional points. Is credit scoring fair? It is fair in that it does not take into account personal factors such as your race, gender, color, religion, national origin or marital status. It also does not factor in interest rates you are paying on your credit cards, nor does it include factors such as child or family support obligations or rental agreements. It also does not take into account inquiries about your credit score by employers or lenders that were made without your knowledge, or any information that could be thought of as predicting your future credit performance. What can you do to improve your credit score? Experts in this area suggest that you make sure you pay all your bills on time, that if you miss a payment to a creditor, you get it current and keep it current, and that if you are having trouble paying your bills or cannot pay your bills, you contact your creditors or see a legitimate credit-counseling firm. In addition, you should keep the balance on your credit cards and other lines of credit as low as possible. And if you can, pay off your debt, and not just move it around from credit card to credit card. Do not try to increase your credit availability by opening a number of new credit card accounts. Try to pay off the balance owed on your credit cards every month. The credit information providers (Trans Union, Experian and Equifax) are not required to provide you with your credit score. However, they are required by law to provide you with a free credit report once a year. Moreover, the law requires that you be able to access these reports online. The web site for these reports can be found at annualcreditreport.com.Once you log onto this site, you will be asked to provide several pieces of personal information, including your full name, social security number, birth date, and current and previous addresses ... to make sure you are who you say you are. Douglas Hanna For FREE help with debt and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com.
MORE RESOURCES: Credit - Google News
Wilson to Lead Plumas Bank's Credit Administration - MarketWatch (press release)
China Credit Cards, Danish Loans, Mortgage Deal: Compliance - BusinessWeek
Don't overlook a federal tax credit - Delmarva Now
Give your card some credit - Telegraph.co.uk
UCLA study gives qualified support to film tax credit program - Los Angeles Times
RPT-ASIA CREDIT UPDATE: Greece jitters halts rally - Reuters
CREDIT MARKETS: Corporate Borrowers Flood Market - Wall Street Journal
Russia, China lose credit in Arab world: League chief - Reuters
|
 |
|
|
RELATED ARTICLES
The Best Strategy To Erase Credit Card Debt Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health. Which Credit Bureau Should I Use To Check My Credit Report? There are three main credit bureaus in the United States; Equifax, Experian and Trans Union. Each bureau collects your personal and financial information which is then sold to lenders such as banks, credit unions, credit card companies, mortgage and auto loan lenders. Credit Score: The Brightest Feather In Your Financial Cap Credit scores are the most important aspect that determines your financial future. Carrying a good credit score is an asset and can pave your future towards greener pastures. Your Credit Card May Be Costing More Than You Think! Do you know what your credit card is truly costing you? Manypeople assume that they do, but aren't familiar with thehidden fees that many credit card companies are charging. Infact, if you don't keep close tabs on your credit card, youmay end up paying hundreds of extra dollars per year-withoutever really knowing it!And if you're trying to budget your money, those hidden feescan add up!Let's take a look at some of the most common credit cardfees, and then talk about how you can avoid them. How To Read Your Credit Report The Fair and Accurate Credit Transactions Act, signed into law on Dec. 4, 2003, gives every American the right to a free credit report every year from each of the three major credit bureaus -- Equifax, Experian and TransUnion. Credit Card Benefits and Drawbacks Credit cards have both benefits and drawbacks. It is wise to consider both before applying for a credit card. Credit and Loan Help for Mortgage Loans Mortgage loans are some of the most difficult loans to receive if you havebad credit because lenders focus heavily on your credit score and historyof making payments on time. However, there is credit and loan help forindividuals interested in home mortgage loans. Looking for that Low interest Credit Card? If you have been shopping around for a Low Interest Credit Card you will notice that the UK market is awash with Credit Card companies offering low rates to entice you to apply for their Cards.There has never been a better time to consolidate your credit cards and get a far better interest rate. Choosing the Best Low Interest Credit Card With so many low interest credit cards on offer, how do you know which one to choose? Here is a brief guide for choosing your low interest credit card.The Chase Manhattan MasterCard is a great choice, for those with an excellent credit rating. Credit Card Expenses Are Killing Your Budget! Do you know the costs associated with your credit card? Do your really know? Many people assume they do but aren't aware of the hidden fees that many credit card companies are charging you month after month. In fact, if you don't keep a close eye on your credit card, you may end up paying hundreds of extra dollars per year-without ever knowing it! And if you're trying to budget your money, those hidden fees can add up!Let's take a look at some of the most common credit card fees, and then talk about how you can avoid them. Credit Repair Scams "Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've probably seen these headlines and others just like it promising to clean up or "fix" bad credit. For someone who suffers from a bad or poor credit rating, these headlines are certainly an appealing offer. Five Credit Card Billing Problems and How to Fix Them It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When you receive your credit card statement each month, sit down with it and check each item to make sure that you actually DID purchase it. If you do run into inaccuracies or problems, there are procedures to follow to report and deal with the charges. What Are The Most Common Credit Card Mistakes? Now in a world with so many easy to get credit cards it can be easy for someone who is a first time credit card holder, or even someone who has several credit cards in the past to make mistakes when using the card.One of the most common mistakes when using credit cards is to use the credit card to make purchases of things you are not really able to afford. Beware the Shopping Mall Monster Like me, you've probably been offered a fair old number of these by now.. Common Credit Score Myths A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. 7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit There are seven consumer credit laws you should be aware when dealing with your credit.1. Saving Money: Quick Cash, High Cost I didn't think it was possible. But it is. What is Credit Counselling? Ever wondered what is Credit Counselling? There are occasions when you might encounter a financial situation that is beyond your scope which is when a session with a credit counsellor could be beneficial.If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counselling organisation. A Debt Mentality While working through my own debt situation, and helping others resolve their life issues regarding debt and credit, it never ceases to amaze me how similar the life stories are and how profound is the effect of debt on the way a person thinks about life, irregardless of how much money they have or don't have.I remember being in junior high school hearing my father say something to the effect of "you only have as much money as you have credit. Like It Or Not, You Have A Score To Settle! Part 1 Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
YourFree.biz Domain Is For Sale - $5,000 For Enquiries eMail Us © www.YourFree.biz 2011 |
|
