Mar
20
Credit card? No credit history at all?
Filed Under Credit | 6 Comments
Rya M asked:
Hi i am approaching 19 and have no credit history, therefore wondering where i would be best to get a credit card to improve my credit rating?Thanks
Anita
Hi i am approaching 19 and have no credit history, therefore wondering where i would be best to get a credit card to improve my credit rating?Thanks
Anita
Mar
18
annabanana4883 asked:
Here’s the situation: my credit rating is poor. I have a few charged off credit cards from my early college years. HOWEVER, I do have one credit card that I have never even been late. Also, I have some student loans that have perfect payment history.
Here’s the situation: my credit rating is poor. I have a few charged off credit cards from my early college years. HOWEVER, I do have one credit card that I have never even been late. Also, I have some student loans that have perfect payment history.
BUT my rating is still too low. What should I do? I know that paying off charged off accounts will adversely affect my credit. So…how can I improve it now? Will secured credit cards work? What else? Thanks!
Currently, I only have one line of credit–the credit card I use sparingly and make payments on time. The student loans also are in perfect shape. It’s just that old debt that pulls me down. And I’ve heard from several financial advisors that paying off the charged off accounts will pull my rating down. So, what’s the way to improvement?
Douglas
Mar
18
Credit limits?
Filed Under Credit | 4 Comments
ECREAM asked:
I have good credit. Will increasing my limits on my cards improve my credit rating?
Brent
I have good credit. Will increasing my limits on my cards improve my credit rating?
Brent
Mar
2
How to Build a Good Credit Rating
Filed Under Credit | Leave a Comment
Samual java asked:
From bartering in ancient times, to metal coinage, to paper currency, the latest stage and development in the evolution of currency is credit and credit ratings. With increasing ease and usage of the internet, and e-commerce, electronic transfers and so-called “plastic currency” is fast replacing cash.
The way credit works is that it is a record of your spending and borrowing habits, and is used to determine effectively, how trustworthy/dependable you are with a particular transaction, will you be likely to make good on payments, or be unable to pay on time, if indeed at all? Whilst this is a simple mechanism to protect retailers from debt and bad creditors, it can be overly harsh, catching people somewhat unfairly meaning they are unable to buy things, or buy them at such a generous rate. Therefore, it is crucial that you maintain a clean and proactive credit rating. Just as sidenote, no reputation is as bad as a negative reputation, after all, if there is no history or record of your credit transactions, how else will lenders know you are worth the risk and effort?
Bizarre as it may seem, you have to buy credit in order to get your first (crucial) step on the credit rating ladder. Think of it like Ebay with its feedback system, once you establish yourself with small, inconsequential transactions, then the bigger items will be much more accessible. A great place to start is by opening a savings account, this is a huge plus with lenders, and the bank in question may offer you a credit card. If you do get a credit card, make sure to pay off any and all debts and outstanding charges immediately. This will ensure you are not hit with penalty charges, as well as increasing your credit rating “that your a prompt customer”.
Use retailer programs, so for any large purchase, which offers instalments of a fixed amount per month spread over an agreed period of time are a great way of increasing your credit. Just make sure the retailer in question will actually reward you for your work by reporting your loan (or instalment payments) to the major credit bureaus.
For a shortcut, get a co-signer for any loans you take out. This will allow you to take advantage of their credit score, and will also provide the lenders with an extra assurance that should you be unable to pay, then payment can be recovered from the co-signer. Note that this is double-edged sword, whilst you get the benefit of the co-signers good reputation, they will bear the brunt of your bad reputation if you fail to keep up with payments or generally default. If you are going to act as co-signer for someone, be very careful and draw up a clear strategy to avoid getting a bum deal.
Remember you are legally entitled to access your credit report at anytime, and this can give you a clearer idea as to what areas you need to improve upon to increase your flagging credit score.
Edwin
From bartering in ancient times, to metal coinage, to paper currency, the latest stage and development in the evolution of currency is credit and credit ratings. With increasing ease and usage of the internet, and e-commerce, electronic transfers and so-called “plastic currency” is fast replacing cash.
The way credit works is that it is a record of your spending and borrowing habits, and is used to determine effectively, how trustworthy/dependable you are with a particular transaction, will you be likely to make good on payments, or be unable to pay on time, if indeed at all? Whilst this is a simple mechanism to protect retailers from debt and bad creditors, it can be overly harsh, catching people somewhat unfairly meaning they are unable to buy things, or buy them at such a generous rate. Therefore, it is crucial that you maintain a clean and proactive credit rating. Just as sidenote, no reputation is as bad as a negative reputation, after all, if there is no history or record of your credit transactions, how else will lenders know you are worth the risk and effort?
Bizarre as it may seem, you have to buy credit in order to get your first (crucial) step on the credit rating ladder. Think of it like Ebay with its feedback system, once you establish yourself with small, inconsequential transactions, then the bigger items will be much more accessible. A great place to start is by opening a savings account, this is a huge plus with lenders, and the bank in question may offer you a credit card. If you do get a credit card, make sure to pay off any and all debts and outstanding charges immediately. This will ensure you are not hit with penalty charges, as well as increasing your credit rating “that your a prompt customer”.
Use retailer programs, so for any large purchase, which offers instalments of a fixed amount per month spread over an agreed period of time are a great way of increasing your credit. Just make sure the retailer in question will actually reward you for your work by reporting your loan (or instalment payments) to the major credit bureaus.
For a shortcut, get a co-signer for any loans you take out. This will allow you to take advantage of their credit score, and will also provide the lenders with an extra assurance that should you be unable to pay, then payment can be recovered from the co-signer. Note that this is double-edged sword, whilst you get the benefit of the co-signers good reputation, they will bear the brunt of your bad reputation if you fail to keep up with payments or generally default. If you are going to act as co-signer for someone, be very careful and draw up a clear strategy to avoid getting a bum deal.
Remember you are legally entitled to access your credit report at anytime, and this can give you a clearer idea as to what areas you need to improve upon to increase your flagging credit score.
Edwin
Feb
25
inzaratha asked:
I bought a house a year ago with my fiance.
I have been paying off my car monthly, all bills and mortgage are paid on time each month.
I use only a debit card. I tore up all old credit cards as I don’t want to get involved in that scam again. I only buy what I can afford to.
I bought a house a year ago with my fiance.
I have been paying off my car monthly, all bills and mortgage are paid on time each month.
I use only a debit card. I tore up all old credit cards as I don’t want to get involved in that scam again. I only buy what I can afford to.
We wish to either sell or refiance our home in a year. Our rate is not bad and we don’t have one of those ones that is going to jump a huge amount but it is adjustable. We would like to sell and move out to the countryside in a year.
What are best steps I can do now to assure getting the best rate in a year?
I got rid of credits cards over 3 years ago.
Jo
Feb
22
The Truth About Credit Rating Approvals
Filed Under Credit | Leave a Comment
Matthew Lloyd asked:
Universal credit ratings and credit blacklists are nonexistent. Yes, that’s right. Each company will assess you in their own way, although logically, a bad risk for one company is an equally bad risk for another.
Your credit activity is stored by 3 agencies – Equifax, Experian and CallCredit – and you must ensure that you check your files at all 3 agencies every 18 months or so as there is scope for errors and mistakes. You can get information about your credit history and credit scores either by post or on the Web; this usually costs around £2 per search.
Even if you are careful and regularly review your credit history, it is possible that you could be refused credit. Credit card applications are sometimes legitimately rejected simply because the credit score of the applicant does not meet the standards or criteria set by the lender. This raises the question – what can you do to improve your chances of getting a credit card application approved?
How to Get your Credit Card Applications Approved
Check if you are mentioned on the electoral roll. If not, write to your local council and make sure you are included as this may be the reason you are being found ineligible for credit.
Avoid applying for lots of credit cards in a very short period of time as your score may be impaired; this also covers credit you request for your mobile phone or your car insurance.
Make an application before moving home or changing jobs or taking extended leave for maternity. If you are earning or you show signs of stability then you may have a better chance of getting credit.
Sometimes it helps asking your lender to a run a ‘quotation search’ instead of a ‘credit search’. Such an enquiry won’t impact on your credit score negatively.
Your chances might improve further if you own a home or are employed by someone, instead of living in a rented house or owning your own business. It also helps if you have been using the same bank for a long period of time. Try mentioning your fixed land line phone number instead of your mobile number as that shows you have stayed at your home long enough and won’t suddenly disappear without a trace after taking credit.
At all costs, avoid getting into a rejection trap. Assume that you apply for a credit card, and due to some factual errors or a mistake in your application, you are rejected. If you then apply for another credit card straight away, they see you have been rejected once, and that’s reason enough for them to reject you once more. This snowballs into a rejection trap until you rectify the error that caused this problem in the first place or you simply continue to get refused credit.
Herman
Universal credit ratings and credit blacklists are nonexistent. Yes, that’s right. Each company will assess you in their own way, although logically, a bad risk for one company is an equally bad risk for another.
Your credit activity is stored by 3 agencies – Equifax, Experian and CallCredit – and you must ensure that you check your files at all 3 agencies every 18 months or so as there is scope for errors and mistakes. You can get information about your credit history and credit scores either by post or on the Web; this usually costs around £2 per search.
Even if you are careful and regularly review your credit history, it is possible that you could be refused credit. Credit card applications are sometimes legitimately rejected simply because the credit score of the applicant does not meet the standards or criteria set by the lender. This raises the question – what can you do to improve your chances of getting a credit card application approved?
How to Get your Credit Card Applications Approved
Check if you are mentioned on the electoral roll. If not, write to your local council and make sure you are included as this may be the reason you are being found ineligible for credit.
Avoid applying for lots of credit cards in a very short period of time as your score may be impaired; this also covers credit you request for your mobile phone or your car insurance.
Make an application before moving home or changing jobs or taking extended leave for maternity. If you are earning or you show signs of stability then you may have a better chance of getting credit.
Sometimes it helps asking your lender to a run a ‘quotation search’ instead of a ‘credit search’. Such an enquiry won’t impact on your credit score negatively.
Your chances might improve further if you own a home or are employed by someone, instead of living in a rented house or owning your own business. It also helps if you have been using the same bank for a long period of time. Try mentioning your fixed land line phone number instead of your mobile number as that shows you have stayed at your home long enough and won’t suddenly disappear without a trace after taking credit.
At all costs, avoid getting into a rejection trap. Assume that you apply for a credit card, and due to some factual errors or a mistake in your application, you are rejected. If you then apply for another credit card straight away, they see you have been rejected once, and that’s reason enough for them to reject you once more. This snowballs into a rejection trap until you rectify the error that caused this problem in the first place or you simply continue to get refused credit.
Herman
Feb
9
Why doesn’t my credit score improve or change no matter what I do to improve it?
Filed Under Credit | 5 Comments
Julia R asked:
I have a 9 year old bankruptcy but since then I’ve been perfect about paying everything on time. I have paid off my mortgage very early and have also paid off the loan on my husband’s car (I cosigned for it). I have Zero debt. Why won’t my credit scrore go up from 703? I know that’s a good rating but I’m working to make it even better.
Andrew
I have a 9 year old bankruptcy but since then I’ve been perfect about paying everything on time. I have paid off my mortgage very early and have also paid off the loan on my husband’s car (I cosigned for it). I have Zero debt. Why won’t my credit scrore go up from 703? I know that’s a good rating but I’m working to make it even better.
Andrew
Feb
9
MIKE SELVON asked:
Did you know that 60% of your credit rating is based on the activity within the last 24 months? You may be lamenting over those old collection accounts or an old bankruptcy filing, but if you have since gotten back on track, or plan to get back on track, then there is a silver lining for you. Borrowers can eradicate bad credit scores by establishing a short and long term financial plan aimed at mitigating bad debt and maximizing good debt.
Improving credit scores involves avoiding many things. In the order of importance, they are late payments, high credit card balances, closing credit card accounts and having too many in-store charge cards. Late payments carry 35% of the weight in terms of your credit score, so do not take them lightly, even if it’s just a store charge card, a cell phone bill or a rent payment.
Your credit score can drop by as little as 20 points or more than 100 points, depending on how often you are late and how many accounts you’re late on, as well as whether you are 30, 60, 90, or more than 120 days late. Secondly, your credit usage should be no more than 40% of what is offered to you.
If your credit line is $1,000, then you should owe no more than $400, and that goes for all lines of credit you have open. If you have any maxed out cards, then pay them down until you hit the 40% mark! Some people think they should close out their accounts to “do the right thing” or “prevent overspending,” although this will decrease your overall credit offering and will reflect negatively on you.
Instead, work on paying those balances down and once you’re finished, aim to purchase one thing a year on those cards to keep them active, and pay them off right away. Lastly, opening and closing store charge cards just to get that 10-15% initial discount is a signal of irresponsible credit behavior and will not result in high scores for your credit.
There are also many things you can do to fix a poor credit rating. To get back on track, the first real step is, of course, paying down your debts. You’ll need money to get there, though, so you might have to pick up a second job, find a new job, work more hours or borrow a safety cushion from friends or family. You can’t dig out unless you have the funds to do so.
Secondly, look at your monthly budget and figure out how much you’re willing to spend on all of your debts each month, allowing yourself an emergency fund cushion if you can. Then list your debts from lowest balance to highest balance, or lowest interest to highest interest, and begin by paying all minimum payments, with every extra penny going toward the highest rate balance. Once that one’s paid off, go to the next balance. The sooner your debts are paid off, the sooner you can begin thinking about how to improve credit scores.
To get a better credit rating, you may want to call in and ask that new, updated information be added. Lenders like to see that you have steady employment, so including your current employer could be an asset. You can also include your date of birth, checking account and current residence.
If your credit report is missing accounts you regularly pay on time, then you can send the credit bureaus recent statements and payment history records to prove you’re re-establishing your credit score. You can also use a Chevron credit card to buy gas each month and pay it off in full right away.
Brad
Did you know that 60% of your credit rating is based on the activity within the last 24 months? You may be lamenting over those old collection accounts or an old bankruptcy filing, but if you have since gotten back on track, or plan to get back on track, then there is a silver lining for you. Borrowers can eradicate bad credit scores by establishing a short and long term financial plan aimed at mitigating bad debt and maximizing good debt.
Improving credit scores involves avoiding many things. In the order of importance, they are late payments, high credit card balances, closing credit card accounts and having too many in-store charge cards. Late payments carry 35% of the weight in terms of your credit score, so do not take them lightly, even if it’s just a store charge card, a cell phone bill or a rent payment.
Your credit score can drop by as little as 20 points or more than 100 points, depending on how often you are late and how many accounts you’re late on, as well as whether you are 30, 60, 90, or more than 120 days late. Secondly, your credit usage should be no more than 40% of what is offered to you.
If your credit line is $1,000, then you should owe no more than $400, and that goes for all lines of credit you have open. If you have any maxed out cards, then pay them down until you hit the 40% mark! Some people think they should close out their accounts to “do the right thing” or “prevent overspending,” although this will decrease your overall credit offering and will reflect negatively on you.
Instead, work on paying those balances down and once you’re finished, aim to purchase one thing a year on those cards to keep them active, and pay them off right away. Lastly, opening and closing store charge cards just to get that 10-15% initial discount is a signal of irresponsible credit behavior and will not result in high scores for your credit.
There are also many things you can do to fix a poor credit rating. To get back on track, the first real step is, of course, paying down your debts. You’ll need money to get there, though, so you might have to pick up a second job, find a new job, work more hours or borrow a safety cushion from friends or family. You can’t dig out unless you have the funds to do so.
Secondly, look at your monthly budget and figure out how much you’re willing to spend on all of your debts each month, allowing yourself an emergency fund cushion if you can. Then list your debts from lowest balance to highest balance, or lowest interest to highest interest, and begin by paying all minimum payments, with every extra penny going toward the highest rate balance. Once that one’s paid off, go to the next balance. The sooner your debts are paid off, the sooner you can begin thinking about how to improve credit scores.
To get a better credit rating, you may want to call in and ask that new, updated information be added. Lenders like to see that you have steady employment, so including your current employer could be an asset. You can also include your date of birth, checking account and current residence.
If your credit report is missing accounts you regularly pay on time, then you can send the credit bureaus recent statements and payment history records to prove you’re re-establishing your credit score. You can also use a Chevron credit card to buy gas each month and pay it off in full right away.
Brad
Jan
30
Question regarding Credit Score Ratings?
Filed Under Credit | 2 Comments
BaseballFan4Ever asked:
I scored a 791 out of 850 with Eqiufax in Feb. 2006
I scored a 791 out of 850 with Eqiufax in Feb. 2006
I just scored an 888 out of 990 with Experian Oct 2007
Do the 2 agencies have different rating systems or scales?
Has my credit score improved from Feb. 2007?
Experian said that I am “Prime” Plus and my Risk Grade is B. My Credit rating ranks higher than 85.15 of US Cosumers.
Is this a good credit rating?
Ida
Jan
29
What do I need to do to improve my credit score and how long does it take?
Filed Under Credit | 3 Comments
mikey asked:
If I am at a 700 now, how long will it take to get to 750 and what do I need to do? I have about 4-5 open credit card accounts, but I only have debt on one, which is interest free until 2010. I have a mortgage. I don’t miss my payments. I have student loans again don’t miss a payment. What are techniques to get a higher credit score?
While you’re at it, where could I go to get a trustworthy credit score rating?
Helen
If I am at a 700 now, how long will it take to get to 750 and what do I need to do? I have about 4-5 open credit card accounts, but I only have debt on one, which is interest free until 2010. I have a mortgage. I don’t miss my payments. I have student loans again don’t miss a payment. What are techniques to get a higher credit score?
While you’re at it, where could I go to get a trustworthy credit score rating?
Helen