by LeRoy
Whenever you wish to get a loan, you need to know something about your credit score. A credit score is a number that creditors look at to determine your viability to get credit. A bad credit score can keep you from financing your kid’s education, or from buying a new home. Therefore, it’s very important to build a good credit history. Her are five innovative ways for building-up your credit score.
Get a Credit Card, And Pay Your Balance On Time
To get started in building a nice credit score, get a credit card, but remember to only start out with one credit card for the moment. Remember that the more credit cards you have, the more debt you’ll end up with. You need to be responsible with one credit, before you insist on applying for a second or third credit card. In addition, remember to pay your card’s balance on time. If you only charge your card for the items that you can afford to pay, then you won’t need to wrangle with any future debt problems By paying your credit card’s balance every month, this would indicate that you’re capable of paying your bills, and will send a positive signal to most creditors and lenders.
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by LeRoy
What is your credit score based on and what is the average American credit score nowadays? How do you fare in comparison with your fellow Americans? Is your rating higher or lower than the average American credit score? Just about everyone knows that there is such a thing as a credit score and that it is based on your past credit performance, but not many people really know the ins and outs of credit scoring.
First of all, the highest credit score that exists is 850; conversely, the lowest is 300. Of course, the majority of people fall between those two extremes, and in fact, the average American credit score is now about 690, but with the downturn in the economy and unemployment on the rise, it is likely that individual credit scores will begin to fall, and that means the average credit score will begin to fall right along with them.
Even though the average American credit score seems pretty high, at 690, that is really not “good enough” to get the best credit terms from most lenders. Most banks and other lenders use the credit history and credit score to determine whether or not they will lend you money, whether or not they will require collateral from you, how much interest they will charge you, and how long they will give you to pay back your loan. Obviously, the better your rating, the better deal you will get at the bank.
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by LeRoy
credit Clean Up: Dispute Incorrect Information from your Credit Report
When you are working to clean up your credit the job can seem overwhelming and too much to handle. To make it easier there are a few simple ways to go about the process that when used together form the best results and more peaceful you.
One of the steps to the process of credit clean up is to inspect each of your credit reports and dispute any incorrect information you find. This is vital to not only maintaining good credit, but is also important when cleaning up your bad credit and preventing and catching identity theft. Ideally, you should purchase your credit reports once a year and go over them with a fine tooth comb and dispute anything you find to be incorrect.
There are three major credit reporting agencies Experian, Equifax and TransUnion. They all have a web site with ordering instructions on how to pay for and download or print your credit report. There are also sites that offer all three of the reports at once and other services as well. Be careful when considering these sites as they can be a little shady and want you to join as a member to receive their services or special prices. It’s best to stick with ordering and printing your reports straight from the source.
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by LeRoy
credit Clean Up: Add Starter Accounts
Credit clean up can be a difficult thing to do, but if you take the right steps toward cleaning up your credit you can be on your way to a brighter, more secure financial future. One of the best ways to work on building a strong financial future during your credit clean up process is to add or refine the starter or good accounts you currently have. Starter accounts are those smaller credit or loan accounts that people with no credit are usually able to get in order to start building credit. These are often in the form of jewelry, store accounts and tool accounts. They are smaller in limit and don’t require the high level of credit that other loans, like credit cards and home loans, do. These are good accounts not only for those just starting out in their credit journey, for also for those recovering from bankruptcy and other financial set backs.
If you already have some of these accounts, you need to take a hard look at them and make sure they are not in trouble. If they are, you need to do what it takes to get them current and the balance paid. While, some accounts on your credit report you will want to close as you pay them off, like high interest rate credit cards, starter accounts you should leave open. The open, active account with a current paid balance will reflect positively on your credit report and through your credit score. You do want to use them occasionally to keep them active and in good standing, but don’t go crazy or charge more than you can pay off in a month or two. These accounts generally have lower interest and small monthly payments, but don’t let the small payments entice you into getting in over your head. If it’s a jewelry account, buy your loved one some $100 earrings for a gift and pay it off within the next thirty days. This will show you can use the account responsibly and show future lenders you can handle a loan and the responsibility that goes with it.
If you have no starter accounts, then take the time to look for one that will fit well with your current credit situation and your spending habits. If you love tools, then a Sears card should NOT be your first choice because of the temptation to max the card out and get into trouble. Instead, go for something you are only likely to use occasionally and work within the same guidelines as mentioned above when using the account. Some of the store cards have gotten more stringent in their guidelines and you may meet some resistance when looking for one. Try not to go to every store there is and apply for a card because the more times your credit is checked in a short period of time the worse it looks on your credit report and could cause the reporting agencies to think there is some form of identity theft going on.
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