My Credit Rights » Credit Report

Credit Score Range

Poster — Fri, 13 May 2011 06:24:08 +0000

If your foresee any big purchases or loans in the near future, you need to get your hands on a free credit report with your official FICO credit score range. But in the meantime, it can be pretty easy to guess if your score will be on the high end of the spectrum or low. Learn what factors FICO uses to figure your rating!

The FICO credit score range goes from 300 to 850 – a higher number means a better chance for approval and good rates on loans.

The areas that many lenders assign the most weight to are payment history and the amount of debt you currently hold. If you have paid your bills on time, faithfully, for the last seven years then you can expect to get high marks on the payment history sections that accounts for around 35% of your total score. Staying within 10% of your borrowing limit on your credit cards will improve your “amounts owed” category – a 30% chunk of your overall risk rating.

How long have you held credit?

Your actual length of credit history makes up 15% of your FICO score – a pretty significant amount just for keeping good credit throughout your financial lifetime. Newly acquired credit accounts and diversity of credit types each consume 10% of your rating.

Your credit score is basically how you pit up against the average credit holder. Since 720 is the average, you should start your comparisons there. A score of 780 will guarantee you the best rates on loans. To get an excellent credit score, you must have a perfectly clean record – a difficult feat for anybody to achieve!

If you can evaluate your level of credit responsibility, you should be able to view yourself through the eyes of lenders. If you owe you lenders, then practice smart credit card debt negotiation to drop interest and setup a payment plan that works for you! Keeping your credit in check by any means is crucial to keep a healthy report. Get your official credit score range so that you are not left wondering through the rejections and rate increases.

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Raise Your FICO Credit Score

Poster — Thu, 21 Apr 2011 11:03:11 +0000

A high FICO credit score is extremely important for maintaining a comfortable quality of life, as this is the number that lenders look at to determine the creditworthiness of potential borrowers. Low FICO scores can be debilitating for those who wish to purchase homes or cars, or those that need to secure a loan for anything from medical care to home remodeling. Additionally, those with a low FICO score who do qualify for a loan often face an exceptionally high interest rate and strict loan terms. Learning how to improve your FICO credit score and increasing your credit score can make getting the things you want and need easier, and fortunately, there are several ways to do it.

Making bill payments on time is the best way to raise your credit score, as payments that are even a few days late are still late payments. Payment history is actually 35 of your FICO score, and it takes only a single late payment to bring that score down. If late payments have already been made, the key is to get accounts up to date and keep them there. The length of credit history makes up 15 of the score, meaning that consistent on-time payments will result in a higher credit rating over time. If on-time payments are a consistent issue, contacting a legitimate financial counselor can save a credit score.

Increasing Your Credit Score

Decreasing debt is another effective way to increase your credit score, and one of the easiest ways to do this is to stop using your credit cards. The amount you owe accounts for 30 of your FICO credit score, and a high credit card balance can lower that number, especially if the balance is near the credit limit. The limit shows that amount of potential debt a card carrier can incur, and potential debt is as detrimental as actual debt.

Avoiding new credit is also helpful in raising your FICO credit score, as every time credit is applied for, credit rating is checked. Excessive credit checks can lower ratings, as this gives the impression that more credit is needed because of current financial trouble. Mixing the types of debt can also be beneficial to credit rating, as mixing mortgages, credit cards, and other types of debt indicates responsibility in a variety of financial situations. New credit and the mixing of debt each account for 10 of the FICO score.

The FICO score is important to credit rating, as this is the primary indicator of creditworthiness for potential borrowers. Low scores can hinder the ability to obtain loans for mortgages, cars, and other needs, and can result in high interest and strict terms for those who do qualify. Paying bills on time is critical to a good FICO score, as is lowering debt and paying down credit card balances. Mixing the types of debt shows responsibility in a variety of financial circumstances, although applying for new credit can be detrimental. Raising a FICO credit score can be a slow process, but it can be done with diligent attention to payments and due dates, and the result can make it easier to obtain a comfortable quality of life.

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How to Improve Your FICO Credit Score

Poster — Tue, 12 Apr 2011 05:10:09 +0000

Did you know that you can improve your credit rating? Your credit score determines too many things. As a first, it reflects the desire of lenders to tie with you. Of course, this means that from the unsecured revolving loans to the secured home loans, everything well and truly comes within the arc of your credit score. On the behest of Fair Credit Reporting Act, FICO takes care of your credit rating. If you improve your FICO credit score, you will be well in line to receive loans at minimal interest rates and at fast approval turnaround time.

For instance, if you are planning to buy your first home, your FICO credit score should ideally be between 700 and 750. You might be considered worthy of a home loan if you have a rating between 660 and 699. If you lie below 660, you have to improve your score prior to sending in your application for mortgage.

There are various methods for enhancing your credit score. If you want to learn how to increase your credit score, you can take the help of the internet domain. Here, you will find reputed online articles teaching you the techniques. The first point everyone talks about is to minimize the revolving loan. Credit score rating agencies do not mind your installment loans but a revolving loan is a sign of poor financial health in their eyes.

You also need to club your loans into one single debt. If this requires a balance transfer, you should go for it. Credit rating agencies believe that such a consolidation of existing debts can reduce your stress and make you smarter for paying future mortgage engagements. If you are out of work, it would be prudent finding a streamlined revenue inlet. This makes the rating agencies take notice too. After all, with a regular income, you will always be better placed to pay off monthly mortgages in time.

Fix My Bad Credit Score

Poster — Mon, 21 Mar 2011 12:38:14 +0000

There is a simple way to fix bad credit score problems that you may currently be dealing with, a credit repair service is the best way to improve my credit score. When you have a negative rating, this will change the way that potential lenders view you in the future. When they consider lending you money, they will look at all of the negative aspects of your credit. If you have a large amount of debts, address changes and other outstanding financial obligations, this will cause your application to be denied. Even if the application is granted, you will likely have to pay a much higher rate because of credit problems in the past. If you want to save thousands of dollars in an automobile loan or home mortgage, you will need to use a credit repair service that will help you eliminate all of the problems on your report.

A credit repair specialist is the best way to fix bad credit score because they will provide you with great results in a short period of time. You can spend months attempting to correct any credit problems you have, but this will not be possible if you do not understand what you are doing. There are specific strategies for getting rid of negative aspects of your history, this is what you will get when using a specialist in order to change your credit rating. May people ask how to improve my credit score, but this is something that is very simple to do when you use the right repair service. First, you should pay down any debts that you can afford to eliminate. Once you do this, you want to use these professionals to remove errors from your report, this will help you to clean up your report and boost your rating.

Know the credit score factors and credit score scale to help you better manage your credit report score.

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Credit Card Bankruptcy

Poster — Fri, 04 Mar 2011 18:22:06 +0000

In our current cash strapped economy, an overwhelming 10% of overdue debt from credit cards is almost a regular occurrence in many households. But the dangers with mounting credit bills is the fact that they rack up escalating interest rates in a short span of time. If action is not taken quickly, then this situation can easily lead to credit cards bankruptcy within the span of a year or less.

Credit cards can either become your ally or foe, depending on how you use them. In an ideal setting, credit is meant to be used as money which allows you to go about your purchasing without the burden and risks involved in carrying wads of money around, but with the specific intention of paying them in full within a given time frame. As we face struggling times, credit cards are being used to sustain families which means spending for things which they do not have the capacity to repay. In fact, Wikipedia lists credit card debt as one of the most common reasons for bankruptcy in the United States.

Before you let your mounting debt overwhelm you and force you to file for bankruptcy, experts advise that there are ways to help you cope with your debts. The key lies in the negotiation process and in knowing the steps to reaching a beneficial settlement between you and your creditors.

Assess your Finances

The primary step towards your financial liberation is to assess what you have and what you owe. Evaluate your current financial situation in terms of your assets and liabilities. You might find that you own items that can easily be sold for money. Accurately assessing your finances and having assets and cash on hand makes for an easier negotiation process.

Gauge your Emotions

Negotiating with creditors is a difficult task. In fact, there are some of us who are ill equipped to handle such tasks. Your second stop will be to decide on whether you are emotionally and mentally strong enough to negotiate on your own. If not, you can always hire or ask a friend to mediate on your behalf.

Choose your Mediator

A good mediator will be someone who can speak on your behalf and protect your interests. They should be knowledgeable, focused, eloquent and forceful. Research is also necessary to find some weak spots on your creditor and look for history of complaints or law suits.

Put it in Writing

In the negotiation process and settlement, it is imperative that you record everything in writing especially when it comes to your agreements with your creditor. This piece of paper will protect your rights and ensure that you and your creditor will always be on the same page.

Credit Score Scale

Poster — Wed, 02 Feb 2011 02:22:43 +0000

Chances are at some point in your life, you will need to get some kind of financing in order to assist you with a purchase. You may need a mortgage or business loan. It may be as simple as applying for a credit card. Regardless of your need, whether or not you qualify and the terms of your credit will largely be based on the credit scores scale.

The length of your credit history along with the types of credit you have (or have had) will affect your overall rating. People with a long credit history and various credit types will have a better score than those who have a brief history (even if they pay with cash on time for everything). Depending on that country in which you live, you may have different criteria for establishing your score, but your history will be the number one factor in consideration.

The way most people bring down their credit rating is by paying late or missing a payment. This will bring your credit ranking down very quickly, and it will take many months to reestablish that you are a worthy credit risk. No lender wants to offer financial help to someone who has a history of non-repayment. If you ever accidentally miss a payment, be sure and contact your lender (many offer pay by phone) to reduce the chance of a late payment being reported.

If you have excellent credit, you should have no difficulty in receiving financing from the lending institution of your choice. If you have less than ideal credit, you will end up paying more for your loan both in terms of the interest rate and in terms of restrictions and penalties you may face if you are late with even one payment. You may be required to file a deposit or put additional money down towards the purchase price of whatever it is you are financing. It is very important that if you do not rank highly on the credit score scale that you do everything in your power to reestablish your rating with any new credit you obtain.

Low Interest Rate Credit Card

Poster — Sat, 15 Jan 2011 03:42:10 +0000

It is only natural to want a credit card with a low interest rate. The interest rate associated with your credit card can make your bill increase or decrease and you certainly don’t want to pay a huge amount monthly because of the high interest rate of your card. A credit card with a low interest rate is the best way to avoid a high credit card debt. Low rate credit cards, prepaid credit cards, and prepaid debit cards are good ways to control your spending. There are some things you should know when getting a credit card so you can avoid unnecessary fees and charges on your part.

• CREDIT SCORE

Your credit report score is very important for credit card companies. This will serve as the basis if they will approve you for a low rate credit card or not. A credit score can range from as low as 300 to as high as 850. The higher your credit score is, the better your chances of getting a low rate credit card. Make sure that you have a good, if not excellent, credit score so you don’t have to pay much as interest.

• RATES, FEES, & CHARGES

When getting a credit card, it is not only the interest rate that matters. A credit card company might offer you a low interest rate but there may be high fees and charges attached to the card like annual fees and over the limit fees. Make sure that you know the annual percentage rate or the APR.

• COMPARE

Don’t limit your choices when it comes to credit cards. Many companies offer low interest personal loans and low rate credit cards and your best bet to get a low interest rate is to compare these different offers. Check the interest rate as well as other fees and charges associated with the credit card. Knowing your different options will help you decide which card is best for you.

Credit Score Scale

Poster — Sat, 11 Dec 2010 19:37:08 +0000

When banks began to increase their rate of lending they needed an objective measuring system that would enable them to measure the credit worth of a debtor. When lending out large sums of money such as a mortgage the lender will want to make sure they are not exposing that money to too much risk. The credit score scale enabled them to do just that.

The credit score is a 3 digit number that is calculated by the 3 big credit rating bureaus. They collect various financial data based on a person’s credit history and how they use credit. For example, this can include the amount of debt they have, the type and how long they have had it. It will also include records relating to their credit transactions and if they have missed any monthly payments. This and other financial information is used to calculate the score. Your score is then ranked on the credit score rating scale. The higher the rank is where you want to be because it will make your life much easier when it comes to applying for that loan, mortgage or credit card. The scale uses a number range between 300 and 850. Any score below the 500 level is deemed as a poor credit rating and therefore, a greater risk to lend to. A low score can be attained by not controlling your finances properly and having too much debt that you cannot afford to pay back.

With a poor credit rating lending banks and loan companies will impose greater restrictions on the loan products that you can choose. The financial products that you will have access to will have higher interest charges compared to someone who has a good credit rating. If you are thinking of applying for a mortgage, a loan or a new credit card then, it would be a wise idea to check your credit score first.

Credit Score Factors

Poster — Tue, 09 Nov 2010 19:09:03 +0000

Credit score factors are something that every person looks at whenever he or she aims to increase their credit scores. Having a high credit report score poses a lot of benefits. One, it can help you apply and get a loan easily. Second, if you are considering of buying a new car or house you can get good interest rates and mortgage loan. And lastly, if you have a good credit score you will be able to avail of the promos and discount rates of different major credit card companies. Moreover, it allows you to get additional credit cards and open up a bank account without going through the arduous processes of application.

People who want to get a better and low interest rate use their credit rating score to avail of it. It serves as your reputation or identification card to lending agencies because if you have a high credit score, they will trust in you more.

How to get credit score reports

Credit score reports can be generated via online sites. You can also ask your credit card provider if they can provide you with this document.

Establishing a good credit score

Understanding your credit report will help you establish a good credit score. Several factors that affect your scoring include the following:

1. Too many bank accounts

If you happen to own a lot of credit cards from different companies, it will affect your credit score negatively because lending companies might not take your application seriously.

2. Inadequate bank accounts

Likewise if you own only one credit card or bank account, lending companies might not prioritize you. They prefer to entertain customers with the right number of accounts, say two or three different major credit cards.

3. Late payments

If you happen to have your credit score report with you, try looking for the numbers 30, 60, or 90, if you see them it means that you have history of late payments. These numbers symbolizes the number of days that you were penalized for not paying on time. Late payments can leave a negative feedback in your credit score report.

Apart from the mentioned factors above, there are more credit rights and score factors that you should take into consideration if you want to increase your credit score report. Getting the help of debt management agencies can guide you along and help you manage your finances. This will allow you to pay off your balances and establish a good credit score report.

Credit Rating Repair

Poster — Mon, 26 Jul 2010 19:35:07 +0000

There are many reasons people have bad credit rating and need to improve or repair their credit ratings, one of which is wanting to apply for a mortgage after bankruptcy. Having bankruptcy on your credit record does not have to be the disaster many people believe it is, and so long as you take the right steps and be patient, then you will be able to build up a good credit report in the space of around two years, meaning you will then be a candidate whose application would be considered by lenders.

Making sure that your credit report is accurate is the first thing that you should do, as it is not unheard of for inaccurate data to be recorded after bankruptcy. Accounts that were included in the bankruptcy may well still be showing as open and in arrears, and things such as payment plans may be recorded incorrectly. The only way to be sure that everything is in order is to check it through carefully yourself, and if in doubt then speak to the solicitor that handled your bankruptcy so they can cross reference the information held. Your credit report will be one of the first things any potential creditor looks at, so making sure it is accurate is vital.

Building up a good payment history is very important if you want to be considered for a mortgage after bankruptcy, as another thing lenders will look for is proof that you are able to commit to and maintain regular repayments. Obtaining credit following bankruptcy can be difficult, however you will find there are some credit card companies that specialise in high risk lending, who will take you on. While getting a credit card may be the last thing you want to do, it is the best way build a good payment history, by using it to make small purchases, and paying off the balance in full every monthly.

The interest rates on these kinds of cards will be sky high so you never want to leave an outstanding balance with bad credit lenders. Taking a few small steps at a time is the best way to progressing towards getting a mortgage after bankruptcy, and while it may feel frustrating, it will be worth the time and patience in the end.

Free Credit Report – The What, How, and Why

Poster — Thu, 20 May 2010 13:45:57 +0000

What is a Credit Report?

A Credit Report contains all your credit activities that function as your credit card’s record. In it are lists of your credit card accounts or inactive and active loans, your current balances, and all your activities with regards to your monthly payments. Credit Report also contains complaints made against you for unpaid and pending payments.

Annually checking your credit report is a must to keep your credit record clean and accurate. There are thousands of reasons why you should opt for a free credit report every year, and why you should correct incorrect information. Some people are declined for a loan because they have bad credit and they want to know what bad things are in their report.

How to get free credit report

Getting a copy of your credit report is free. Every American is entitled to get a free credit report from all three major Credit Card Bureaus. This was made possible thanks to the ‘2003 Fair and Accurate Credit Card Transaction’ granting all American Citizens the right to get their credit reports for free.

To get a free copy of your credit report online, you can:

Log on to www.annualcreditreport.com, which is currently the only authorized bureau for credit card holders to access their yearly Credit Card report for free.

Or you can also call their hotline number toll free. 877-322-8228

You can also get a copy of their brochure. Fill up completely the form located behind the brochure and mail it to this address:

Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348 – 5281

Remember, you can still get a free a copy of your annual credit report even if your recent or current loan applications have been denied, if you are currently receiving a public assistance service, if you’re applying for an unemployment assistance, you’re currently residing in a state where free copies of credit report are being offered, or job based or insurance policy on your credit report.

Credit Counseling

Poster — Tue, 20 Apr 2010 11:58:39 +0000

Credit counseling services help people who are in debt and require guidance when it comes to paying back creditors as well as planning a budget. People take help of these services when they want to get out of the financial problems. The credit counselling agencies offer help and advice to help you get out of debt easily and often is cheaper than the cost of bankruptcy. However, it is crucial to not go into further debt in an attempt to get out of financial problems.

What credit counselors do to help you out of debt

The credit counselors advise you on handling your money and debts, and help you to develop a budget. The counsellors are certified and trained in the areas of consumer credit, money, debt management, and budgeting. Counsellors talk about your entire financial situation with you, and guide you to make a personalized plan to solve your financial problems. An initial counselling session normally lasts an hour, with an offer of follow-up sessions.

The credit counseling services contact your creditors on your behalf, help you to build your credit, suggest better money management techniques, promote debt reduction strategies, advise ways to avoid bankruptcy. They will negotiate with the creditors to reduce your interest rate. The counselors may also be able to eliminate finance charges. They will guide you to increase your credit score gradually. In short, they will advise you the best course of action.

How to do find the best counselor for you:

Given below are the tips to help you find a good credit counselor.

Look for an organization that offers a variety of services, including budget counselling, savings and debt management classes.

It is better to avoid those organizations that tell you that debt management plan is your only

option, even before they examine your fiscal problems.

Credit counsellor’s help their customers work out how to get out of debt, not erase it. The credit counselling services should help the debtor to work out a step-by-step process to get out of financial troubles. Then the consumer will be able to see the goodness in trying to find a way out of the debt problems.

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How Do Banks Determine Your Credit Rating?

Poster — Fri, 12 Mar 2010 05:03:40 +0000

Your credit score is more important than you may realize. Until the time comes that the credit score determines whether they can buy a house or a car, most people never even think about their credit rating. Now that we realize that it is important, what exactly goes into deciding what it should be? Basically, your credit rating is your credit performance reduced to a single number that indicates how responsible a borrower you are.

Lenders use this number to calculate how much of a risk they are taking when they loan you money. There are several different things that are taken into account when your credit score is decided. Above everything else, your ability to pay your monthly statements on time is the most important factor of your credit rating. If you are habitually late, your credit rating will drop quite a bit, but your score can take a hit from as little as a single late payment. It does not matter if all that you can afford to pay each month is the absolute minimum. If you want to maintain or improve your credit rating, you absolutely cannot miss a payment.

The next aspect of your credit rating is just how much credit is currently available to you. They will take the credit limit from each line of credit that you have available and add it up to determine your maximum credit. They will then compare this number to how much credit you are actively using. When you are only using a portion of the credit that you have available to you, it is taken as a sign by the lenders that you are a responsible consumer and that you are unlikely to get in over your head. This makes them feel safer in lending you their money. Using less than 50% of your total available credit at any given time will help you keep your credit rating high, and reducing the amount of credit used to a level below 50% will help improve it.

The remainder is made up as a factor of not only how long your lines of credit have been open, but how wide the variety is. The best way to keep your credit rating as high as possible is to avail yourself to a number of different types of credit. Otherwise, if you need to find a loan that requires no credit check, unsecured loans for small amounts are available.

Visit http://www.cheapunsecuredloansguide.com/ to learn more about loans and credit.

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Credit Report Repair

Poster — Wed, 17 Feb 2010 07:22:44 +0000

Do you have bad credit? Is there currently inaccurate information on your credit report that is hindering your ability to obtain credit? There are many ways to fix your credit and the best way is to do it yourself. The reason for this is because it’s easy and free, well except for some postage. If you’re reading this article it will be a good starting point on fixing your credit.

Do you already have a company in mind that you can trust to fix your credit at a reasonable price? Before you make any decisions continue to read this article and gain as much FREE information as possible. Also, try and educate yourself about your rights and the laws of legal credit repair. One thing you must always keep in mind is that credit reporting agencies are not government agencies or affiliated in anyway.

However, they do have a relationship when it comes to consumer protection laws. These companies are for profit multi billion dollar businesses that make their money by obtaining and selling your private information. In addition, they are selling your credit information to creditors, insurance companies, and anybody and everybody that could potentially solicit you for offers. They are also known for selling your credit information to telemarketers and marketing companies all without your permission or knowledge.

Furthermore, errors on consumer’s credit reports across the country are openly admitted but yet they have no interest in fixing them. Do you think they care what they have reported about you, or how it may affect you and your family? Absolutely not! They have no interest in your credit or good name because your not who pays them the big bucks. These credit agencies will go around reporting whatever they think is right until a consumer like you notices an error and demands that it be fixed.

Repairing your credit report is not fun but it is certainly doable. It is more time consuming than anything. Therefore, if you don’t have the time and have the extra money a credit repair company might be right up your alley. However, if it’s not then all you need to do is start writing letters to the credit bureau who is reporting inaccurate information and demand it be corrected. I know this article doesn’t have all of the answers but hopefully you have a good start to research a little more and get your credit fixed.

How to Repair Credit Report Issues

Poster — Mon, 01 Feb 2010 17:03:27 +0000

If you would like to learn how to repair credit report issues, then you will want to read this article. While there are no credit repair secrets that will instantly change your credit file, there are many things that you can do that will have a positive impact. Over time, fixing credit is both possible and fairly easy to do. Let’s take a look at a few things that you can do.

Rapid Rescore

The best way to improve your credit score quickly is to get a rapid rescore. To do this, you will need the help of a lender or mortgage company. You will need to provide them with documentation that shows that the information in your credit file is incorrect. They will then file the rapid rescore which will be reviewed within 48 hours. Once this is done, your credit file will be updated immediately. A rapid rescore is great, but it only works when you have errors in your credit file because you do have to provide documentation.

Pay Down Debt

Paying off debt is another great way that you can improve your credit score. The reason this works so well is that 30% of your overall score is determined by your credit utilization ratio. This is the relationship between how much you owe on your credit cards and how much your limits are. To have the best possible score, you need to owe less than 25% of your credit limit on each of your revolving accounts.

Become an Authorized User

If you have a spouse or parent that has good credit, you can improve your credit score by having them add you as an authorized user on their account. Ideally, choose a card that is more than three years old that has a high limit and low balance.