Oct
27
drivelikejoewho asked:
I had a 735 credit rating last year. Since then, I have learned a few things not to do that will effect your score. I cancelled my oldest credit account because I never went to the store that I had for anymore. It had a $300 limit and I never used it. Didn’t know closing it would drop my score or I wouldn’t have done it. Then I got an account with no interest for 12 months to buy a computer. I paid the account off already and I haven’t closed it because of the above. I did lower the credit limit in hopes that might improve my score after finding out closing it is not a good idea. I then dropped the limits on the two credit cards I have. I have about 9k in credit card debt and make about 55k a year. I have no other liens (cars etc.). No late payments or anything on any accounts open or closed. My score dropped from 730 to 640 in one year.
I had a 735 credit rating last year. Since then, I have learned a few things not to do that will effect your score. I cancelled my oldest credit account because I never went to the store that I had for anymore. It had a $300 limit and I never used it. Didn’t know closing it would drop my score or I wouldn’t have done it. Then I got an account with no interest for 12 months to buy a computer. I paid the account off already and I haven’t closed it because of the above. I did lower the credit limit in hopes that might improve my score after finding out closing it is not a good idea. I then dropped the limits on the two credit cards I have. I have about 9k in credit card debt and make about 55k a year. I have no other liens (cars etc.). No late payments or anything on any accounts open or closed. My score dropped from 730 to 640 in one year.
Help!
Albert
Oct
20
Can I get a credit card for my new born child so as to improve his/her credit history?
Filed Under Credit | 8 Comments
DLC asked:
Don’t have a kid as yet…but was in a discussion with a friend. Does it make sense to get your kid a credit card right when they are born (or very, very young) so as to establish credit for them. Use the card once in a while and pay it off in full. Does that increase the chance of the kid getting a great credit history and therefore much lower interest rates when the kid is buying a car or a house…etc.
What are the rules anyways…do they need to be 16? I remember kids in my school that had credit cards before 16.
Zachary
Don’t have a kid as yet…but was in a discussion with a friend. Does it make sense to get your kid a credit card right when they are born (or very, very young) so as to establish credit for them. Use the card once in a while and pay it off in full. Does that increase the chance of the kid getting a great credit history and therefore much lower interest rates when the kid is buying a car or a house…etc.
What are the rules anyways…do they need to be 16? I remember kids in my school that had credit cards before 16.
Zachary
Oct
18
Need expert advice on credit?
Filed Under Credit | 6 Comments
curious asked:
I took an instalment loan for $8000 to help improve my credit rating. My score is 747 at the moment. I only have credit cards with less than 10% balance of my total credit limit and no late payments ever. Also, this is my first loan.
I took an instalment loan for $8000 to help improve my credit rating. My score is 747 at the moment. I only have credit cards with less than 10% balance of my total credit limit and no late payments ever. Also, this is my first loan.
Will my score drop because of this new loan? If so, how much and how long will it take me to get to an 800 fico score?
Stella
Oct
15
How to improve a low credit score?
Filed Under Personal Finance | 3 Comments
Lingua Scelestra asked:
I have no debts, but i’m not allowed to open a proper account (with debit card etc) at any bank, i have too low a credit score. I tried taking out a store card to improve my rating, but they said i can’t because i have a low credit score. Is my scoial mobility going to be forever impaired by the fact that like most people i work damn hard for my money? I feel really cheated. How can i improve my score? I even have a (low credit limit of course) credit card (from my student days) which i’ve never missed a payment on. Help!
Yolanda
I have no debts, but i’m not allowed to open a proper account (with debit card etc) at any bank, i have too low a credit score. I tried taking out a store card to improve my rating, but they said i can’t because i have a low credit score. Is my scoial mobility going to be forever impaired by the fact that like most people i work damn hard for my money? I feel really cheated. How can i improve my score? I even have a (low credit limit of course) credit card (from my student days) which i’ve never missed a payment on. Help!
Yolanda
Oct
12
Charles Henry asked:
Being accepted for a credit card is easy for some people, however, in life, finances can become a strain. You could lose your job, if you are self employed, you could go through hard times, have bad months, or for whatever reasons, there can be a strain on ones finances.
So what does all this mean?
Well, in hard times, people can add up debt, miss vital payments, such as mobile phone bills, credit card bills, important payments, such as mortgage bills, and other payments that can affect your overall credit rating. Once the credit rating has been affected, it can be hard trying to get it improved.
When income is down, debts can get worse and worse, payments can become harder to pay, it can add up and get on top of you. When this happens, which is not unusual, life can be hard and it isn’t cheap in this world to survive, especially in developed countries.
If things do get this bad, there is always help, although your credit rating will suffer, it can eventually be put right. A debt management plan could help you to regain control of your finances by allowing you to put down only what you can afford to pay after living costs.
Your credit rating will be affected, however, once the debts are cleared, your credit rating will likely be reset, and regardless of what letters you receive saying it will take you 6 years to recover from such a plan.
Once you have your debt cleared, you will likely be in a secure job or for the self employed, business should have improved, your income will be higher, if you get a simple credit card, purchase small items on the card, but then pay off the card quickly, and this will improve your credit rating fast. Do this for around a year and you should have a superb credit rating.
Credit card for people with bad credit rating
However, there is an option for people who do have a bad credit rating. They can secure a credit card as long as they have some income of some kind. The company will normally accept your credit card application, and from there, will give you a much higher interest than usual. The good news is if you keep making your payments on time, you will be able to apply for a new card with a much lower interest. You can really start taking control of your finances and improving your credit rating when this happens.
Megan
Being accepted for a credit card is easy for some people, however, in life, finances can become a strain. You could lose your job, if you are self employed, you could go through hard times, have bad months, or for whatever reasons, there can be a strain on ones finances.
So what does all this mean?
Well, in hard times, people can add up debt, miss vital payments, such as mobile phone bills, credit card bills, important payments, such as mortgage bills, and other payments that can affect your overall credit rating. Once the credit rating has been affected, it can be hard trying to get it improved.
When income is down, debts can get worse and worse, payments can become harder to pay, it can add up and get on top of you. When this happens, which is not unusual, life can be hard and it isn’t cheap in this world to survive, especially in developed countries.
If things do get this bad, there is always help, although your credit rating will suffer, it can eventually be put right. A debt management plan could help you to regain control of your finances by allowing you to put down only what you can afford to pay after living costs.
Your credit rating will be affected, however, once the debts are cleared, your credit rating will likely be reset, and regardless of what letters you receive saying it will take you 6 years to recover from such a plan.
Once you have your debt cleared, you will likely be in a secure job or for the self employed, business should have improved, your income will be higher, if you get a simple credit card, purchase small items on the card, but then pay off the card quickly, and this will improve your credit rating fast. Do this for around a year and you should have a superb credit rating.
Credit card for people with bad credit rating
However, there is an option for people who do have a bad credit rating. They can secure a credit card as long as they have some income of some kind. The company will normally accept your credit card application, and from there, will give you a much higher interest than usual. The good news is if you keep making your payments on time, you will be able to apply for a new card with a much lower interest. You can really start taking control of your finances and improving your credit rating when this happens.
Megan
Oct
2
10 Ways To Improve Credit Score
Filed Under Credit | Leave a Comment
John Casement asked:
Many of us could stand to do some cleaning up with our credit. However, all too often we think there is not that much we can do. Actually, we have quite a bit of power when it comes to improving our credit scores. Here are ten simple tips on how you can make a positive impact on your credit score. Chances are that at least one tip on how to repair bad credit will be right for your situation, and will hopefully motivate you to try some other ideas as well.
Idea # 10 – Get A Better Paying Job. One of the main reasons that a credit score goes down is because you simply owe too much money when compared to your annual income. One of the best ways to start correcting that situation is to find a job that will allow you to realize more income during the upcoming year. Assuming that your level of indebtedness does not increase, your credit rating will improve, even if you don’t make any changes in your spending habits.
Idea # 9 – Make More Than The Minimum Payment. As your credit balances go up, it becomes harder to make more than minimum payments on your credit card accounts. At the same time, your credit rating will go down a few points, even if you are consistently making those minimum payments. In order to bolster your credit rating, always pay more than the minimum amount, even if it is only a few dollars.
Idea # 8 – Curb Your Credit Card Spending. Along with paying more than the minimum amount each month, cut back on how much you use the cards. Chances are this will mean having to cut back on entertainment and eating out, but those are things that most of us could stand to do anyway. Start out by setting a maximum amount that you will allow yourself to charge each week. Calculate this amount by taking the most recent calendar month, adding up all the credit card charges you made, and divide that amount by two. That will be your monthly allotment for credit card purchases. Divide by four and you will have your maximum amount of charging for the week. Do not carry over an unused amount from one week to the next, or you will defeat the whole point of the exercise.
Idea # 6 – Separate Needs From Wants. Many people use credit cards to pay for essentials like groceries or gasoline. That is fine, as long as those expenses are paid in full each month. For the rest of your charges, learn to ask yourself if you really need what you are about to purchase on credit. If you do not need it, but still want it a great deal, ask yourself if you will still want it as much next week or next month. If you cannot honestly say yes, put it back on the shelf and move on.
Idea # 5 – Get A Copy Of Your Credit Report. So many people don’t get around to doing this. There is a good chance that something on your credit report is not right and is negatively impacting your credit score. If you don’t get the report, you won’t know about it until you are turned down for something you really need.
Idea # 4 – Get A Copy Of Your Credit Report From All Three Main Bureaus. Even people who do get one credit report each year often don’t get a copy of their credit report and score from each of the three main agencies. It is very possible that there are line items on one report that are not on the others. Looking at one credit report is not enough; get a copy from each bureau and go over it in detail.
Idea # 3 – Correct False Information. If there is anything on any of the three credit reports that are not correct, report it immediately and take the necessary steps to have the information updated. One bad note can knock you out of getting the best mortgage rate, or getting a car loan with the best terms.
Idea # 2 – Pay Off Credit Card Balances At Every Opportunity. Keeping low balances will help to make you more attractive when you need to make a major purchase on credit. If your income is obviously tied up in making a series of payments to ten different credit cards, your chances for getting what you need are much better.
Idea # 1 – Respect Your Credit. The simple fact is that credit is a privilege, not a right. Creditors are not obligated to extend credit to you, and it can be revoked if you choose to abuse it. Failing to treat your creditors with respect and meeting your obligations will only lead to a bad credit score. Limit the amount of credit you use, pay off all accounts in a timely manner, and always remember to be grateful for the credit you have been granted.
Jason
Many of us could stand to do some cleaning up with our credit. However, all too often we think there is not that much we can do. Actually, we have quite a bit of power when it comes to improving our credit scores. Here are ten simple tips on how you can make a positive impact on your credit score. Chances are that at least one tip on how to repair bad credit will be right for your situation, and will hopefully motivate you to try some other ideas as well.
Idea # 10 – Get A Better Paying Job. One of the main reasons that a credit score goes down is because you simply owe too much money when compared to your annual income. One of the best ways to start correcting that situation is to find a job that will allow you to realize more income during the upcoming year. Assuming that your level of indebtedness does not increase, your credit rating will improve, even if you don’t make any changes in your spending habits.
Idea # 9 – Make More Than The Minimum Payment. As your credit balances go up, it becomes harder to make more than minimum payments on your credit card accounts. At the same time, your credit rating will go down a few points, even if you are consistently making those minimum payments. In order to bolster your credit rating, always pay more than the minimum amount, even if it is only a few dollars.
Idea # 8 – Curb Your Credit Card Spending. Along with paying more than the minimum amount each month, cut back on how much you use the cards. Chances are this will mean having to cut back on entertainment and eating out, but those are things that most of us could stand to do anyway. Start out by setting a maximum amount that you will allow yourself to charge each week. Calculate this amount by taking the most recent calendar month, adding up all the credit card charges you made, and divide that amount by two. That will be your monthly allotment for credit card purchases. Divide by four and you will have your maximum amount of charging for the week. Do not carry over an unused amount from one week to the next, or you will defeat the whole point of the exercise.
Idea # 6 – Separate Needs From Wants. Many people use credit cards to pay for essentials like groceries or gasoline. That is fine, as long as those expenses are paid in full each month. For the rest of your charges, learn to ask yourself if you really need what you are about to purchase on credit. If you do not need it, but still want it a great deal, ask yourself if you will still want it as much next week or next month. If you cannot honestly say yes, put it back on the shelf and move on.
Idea # 5 – Get A Copy Of Your Credit Report. So many people don’t get around to doing this. There is a good chance that something on your credit report is not right and is negatively impacting your credit score. If you don’t get the report, you won’t know about it until you are turned down for something you really need.
Idea # 4 – Get A Copy Of Your Credit Report From All Three Main Bureaus. Even people who do get one credit report each year often don’t get a copy of their credit report and score from each of the three main agencies. It is very possible that there are line items on one report that are not on the others. Looking at one credit report is not enough; get a copy from each bureau and go over it in detail.
Idea # 3 – Correct False Information. If there is anything on any of the three credit reports that are not correct, report it immediately and take the necessary steps to have the information updated. One bad note can knock you out of getting the best mortgage rate, or getting a car loan with the best terms.
Idea # 2 – Pay Off Credit Card Balances At Every Opportunity. Keeping low balances will help to make you more attractive when you need to make a major purchase on credit. If your income is obviously tied up in making a series of payments to ten different credit cards, your chances for getting what you need are much better.
Idea # 1 – Respect Your Credit. The simple fact is that credit is a privilege, not a right. Creditors are not obligated to extend credit to you, and it can be revoked if you choose to abuse it. Failing to treat your creditors with respect and meeting your obligations will only lead to a bad credit score. Limit the amount of credit you use, pay off all accounts in a timely manner, and always remember to be grateful for the credit you have been granted.
Jason