sharon. asked:


even though i pay all my bills on time.. my credit score is not improving. I pay a monthly mortgage ( less than 1000$) through my checking account. If I pay it through the credit card.. will it make a difference?
what else to do to improve the credit score? I need to apply for loan, and with my credit score, not getting good interest rates. please advise.

Kathy

missfickle asked:


I am debating whether or not to buy a car with my parents help (making payments to them to avoid interest rates) OR if I should make as high down payment as I can and put the rest on financing to imorove my credit. (Also learning and doing something independent of them)
The question is: Would this second scenerio in fact help increase my credit score?

Luis

John asked:


I have had a Capitol One Card for a few months now. I applied for it on my 18th birthday. Almost everything I buy I put on it, then I pay it off even before I receive my statement. I have done this for two months. I got a free experian credit report and it said my score is 707. Is this good? If i keep on doing the same thing will it keep on getting better and better?

Also I would like to eventually get a motorcycle loan. Would I be able to do that now or should I wait a while before I apply?

Also if you have any suggestions on what else I can do to improve my rating let me know.

Kathryn

jay w asked:


My credit score is around the high 500′s and low 600′s depending on which company you ask. I’m really trying hard to pay off past debts and pay off car notes. None of my past due debts are credit cards. I would really like to be set financially my december. When can I expect my credit scores to improve when I keep paying off my debts? With my current rate of paying off things I’ll be done with almost all my debts and loans within the next six months. Will my credit score improve before I get out of the military 10 months from now?

Sally

Aaron asked:


So for five years or so I was really broke and I’ve accumulated a lot of small old bills. Nothing really big, $100 here, $300 there, all told it’s under $5000, which I realize is not much compared to folks that have a ton of credit card debt, of which I have none.

I have a good job now and I’m able to cover all of my living expenses, but I can’t generate any extra money to take care of these little bills all over. I don’t want to declare bankruptcy, but I really want to improve my credit rating and find some way of dealing with these bills. Are there any services out there to help a person in my situation? Any input is greatly appreciated.

Jose

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

Mark Aucamp asked:


If you believe everything in the news these days, it’s almost impossible to get a good deal on credit. Luckily, that’s just not true. If you have a good credit rating, you can still qualify for some great deals – whether you want a card, loan, mortgage or simply the right mobile airtime package. Follow these tips and you could see a real improvement to that all-important number.

Month 1

Understand credit ratings

When lenders decide whether to grant you credit and what interest to charge, they calculate your credit rating (also known as a credit score) to assess the likelihood that you will repay what you owe them. They do this by allocating a value to items from your application and your credit report – the personal history of your credit accounts, such as loans, cards and mortgages – and adding them up to get a single number. In general, the higher your score, the easier you’ll find it to get credit.

You don’t have a single credit rating, as every lender uses a different formula. Your credit score also changes over time, as your circumstances change – which is where these tips come in.



Check your credit report

It’s crucial that this is up to date and accurately reflects your circumstances, so lenders don’t turn you down unnecessarily or lend more than you can really afford to repay. Start by getting an overview of your credit accounts and how well you’re managing them. You can see your Experian credit report online with a 30-day free trial of the credit monitoring and ID fraud protection service CreditExpert.

It’s an urban myth that your credit rating suffers every time you look at your own report. In fact, checking your credit report regularly could help you to manage your finances better and build a better credit score.

Month 2

Register to vote at your current address

The electoral roll is used to confirm that you live where you say you do – you may lose points if you don’t appear and lenders may ask you to provide further proof of residence or even turn you down.

Set the record straight

If you find any discrepancies on your report, such as an account that is closed but is listed as open or a late payment that you know you made on time, get in touch with the relevant lender and explain the problem. Be prepared to provide proof and ask them to amend the entry.

Month 3

Give yourself some breathing space

Look for zero per cent balance transfers or spending deals on credit cards, which will give you some breathing space while you sort out your finances – but remember to save up the money to repay them when the introductory period is up.

Close unused accounts

Target unused accounts listed on your credit report and close them down. Lenders take into account the amount you could borrow when they decide what to offer you. Lower that total and you could increase your credit score.

Month 4

Make the most of savings on your mortgage

If you have a tracker mortgage that has benefited from the record lows in interest rates, now’s the time to consider whether paying off more of your home loan will leave you better off rather than using the surplus to repay other debts. Check first that you won’t be penalised for any early repayment.

Rationalise your borrowing

Get out your statements and work out which of your remaining accounts are costing you most in interest, then do your research to see if you can roll them up into a single, less expensive loan. If that’s not possible and you have spare cash, use it to pay off these debts first – you’ll be better off than if you keep the money in the bank and, as your balance falls, your credit rating could rise.

Month 5

Explain yourself

Past financial problems such as missed repayments stay on your credit report for at least three years, while IVAs and bankruptcies are there for a minimum of six years. If special circumstances explain why you got into trouble, you can ask to add a note of explanation that will be seen by lenders. For example, you might have had an accident and skipped a few repayments but have never had any problems before or since.

Sweep up your footprints



Every time you make an application for credit, the lender will search your credit report and leave a record known as a footprint. These stay on your credit report for 12 months and lots of these in a short space of time can make them fear that you’re desperate for money or even suspect that a fraud is being planned, so if you spot something listed as an application when you were only asking for a quotation, contact the lender and ask for it to be removed. When you want to know what kind of a deal you can get, be careful to ask for a quotation search that won’t count against you.

Month 6

Protect your ID



ID fraud is one of the fastest-growing crimes of the 21st century. It takes place when a criminal gets hold of enough of your personal data and impersonates you, take over your accounts, borrow money in your name – and trash your credit rating. When you check your credit report, look out for unfamiliar transactions or applications and tell the lender immediately if you think you’re a victim. The Home Office recommends this as an effective protection.



Update your relationships



One section of your credit report lists your financial associates – people with whom you have a financial relationship, such as a mortgage or joint credit card account. Lenders may check the credit reports of your financial associates when you apply for credit, as their situation could affect your ability to repay what you borrow, so it’s important to ensure that the list is up to date – or you could be penalised for someone else’s financial problems. It’s always best to close joint accounts when a relationship ends.

So how are you doing?

See whether you’ve boosted your credit rating by ordering your Experian Credit Score for £5.95 at any time when you check your Experian credit report with CreditExpert. It won’t be exactly the same as one calculated by a lender but it will demonstrate the impact of your credit history on your credit score and help you to track your progress.



Shane

Ahdab asked:


Can it be improved like the way G.P.A.s (grade point averages) can be?

Debra

Cy99 asked:


I am a single parent who does not receive child support. My credit has gotten out of hand and I want to improve my credit rating. After each paycheck I have little money left over and I live on a very tight budget. What can I do to improve my credit rating, pay off some debt, and save money?

Lisa

Alan Lim asked:


Are you stuck with bad credit history? Do you find it difficult to qualify for traditional loan opportunities? If your reply towards these questions comes in the positive manner, then there is just one approach which can assist you in getting rid of these circumstances. Now, you must be wondering what is that approach? Well, simply raise your credit rating by the personal loans for bad credit history. Although it sounds something crazy to rebuild your credit history with a positive image, but still you can do it by following a few of strategies described here.

First of all, apply for a loan which is not going to be an easy going task at all. It is so because whenever you apply for a loan, moneylenders will request you to provide your credit ratings. Well, in this case if your rating is at some positive level or satisfactory, then there are chances to get loans instantly. But, in case your credit history is completely jagged, then it’s going to be a little bit tricky. Well, in these circumstances you can apply for secured loans which are provided by regular financial institutions. These loans require you to mortgage your asset as collateral. But the interest rates payable in these loans are the cheapest one.

In case you are unable to mortgage any of your assets, you can go for unsecured loans options. These loans are usually offered at higher interest rates as they don’t require you to mortgage anything as collateral.

Once you receive the amount of loan, make sure to consolidate your old debts from it. It will not only save ample of money, but also improve your credit history too. Moreover, you should get your credit sheet from FICO and try to find errors in it. And then try to fix them all by paying your due amounts of several debts.

In addition, you can increase your credit rating by paying of the installments of personal loans timely. Usually, it is seen that the more you are consistent in paying the installments, the more your credit rating is boosted. So, make the most of these loans to enhance your credit points which will allow you to acquire great deals on loans in future.

Therefore, personal loans for bad credit are not only the best approach to support your financial requirements, but also they can dramatically increase your credit rating.



Ronnie