Joseph Kenny asked:




What do you know about your credit rating? You may never even think about it until you get turned down for credit one day. However, the way you run your life may affect the way your credit profile looks years later.

Who Stores Credit Information?

There are two main agencies that store information about your credit history. They are Experian in Nottingham and Equifax in Glasgow. The credit file is opened the day you open a bank account. The longer you have had a bank account, the more trustworthy you seem, so it’s best to keep one primary account for the sake of the credit report. That doesn’t prevent you from having a second account that might offer other incentives, such as a better overdraft limit or interest rates.

Your credit score goes up depending on what services you have from the bank. So, if you have a cheque account, a savings account, a credit card and other products, this means the bank trusts you and is a big plus for your credit status.

On A Roll

Whether you decide to vote or not, it is a good idea to appear on the electoral roll. This makes it easy to track and confirm your address details. Lenders will be concerned about whether you own or rent your home, or whether you are living with parents. Owning your own home is a sign of responsibility, and the fact that you have been approved for a mortgage looks good too. It’s best to have a telephone at home. If it is working, it means that you are up to date with your bill.

Stability And Responsibility

Responsibility is also the key factor when it comes to marriage and children. Being married with children means, in theory, that you are responsible. It also means that you are less likely to run off, leaving bad debt behind you. And the older you get, the more responsible you look in lenders’ eyes, so there are some advantages to ageing.

Having a job is an indication that you will be able to repay any credit that you get. Again, staying in the same job for a while indicates responsibility. Lenders like to see some history of earning an income before they approve a loan.

Managing Credit

Finally, having credit really helps your credit rating, as long as you have managed it well. Having credit agreements is good, as far as lenders are concerned. Making the necessary repayments on time is even better. Missing payments or defaults will lower your credit score, so they are best avoided.

If you do end up with a debt problem, arrears or County Court Judgements (CCJs), you may still be able to get credit. There are options such as payday loans for short term credit and secured loans for long term credit. There are even credit cards that cater for people with a poor credit rating. However, the interest rates will not be as good as those offered to people with a good credit report.

Gabriel

W. A. Leon asked:




You may be familiar with the 3 C’s of Credit – character, capacity and collateral. These three factors are considered by creditors before extending a loan to someone applying for credit. However, there is a fourth factor that must always be considered by credit consumers. I will discuss the fourth C shortly. But first, let’s review the 3 C’s of Credit.

The first of the 3 C’s is character. If you have good character, you will assess the risk of the loan before applying and determine whether or not you can repay the debt. If something happens in your life that makes repayment difficult, an honest person will contact the creditor immediately, explain the situation, and make arrangements to repay the debt as soon as possible.

The second C is the capacity to pay debts. Creditors will assess your household income, employment history, and other factors to determine whether or not you are capable of honoring the terms of the loan. If you are gainfully employed, your situation is stable and you are more likely to make loan payments on time. If you have a steady work history, creditors will consider you to be a good credit risk.

The third C is Collateral, which is any personal property you used as security for a loan. If you are unable to repay the loan, the creditor can secure a lien on your property and sell it to cover the amount of the debt. Thankfully, it is not necessary for you to include collateral as part of your loan application. Also, creditors tend to put more weight on your character and capacity to pay.

Another factor that creditors consider is what I’m calling the fourth C of credit. In fact, this factor is the one most discussed often by creditors and by those seeking credit. The fourth C is your credit rating.

You should make every effort to keep your credit rating as high as possible. The overwhelming majority of creditors will review your credit report after you apply for a loan. Many credit decisions are made without considering your character or your good intentions. If you have a low credit score, you are automatically considered to be a bad credit risk.

At some point in your life, you will need credit. Exercise good character, make sure you have the capacity to repay loans, and avoid using collateral. Finally, keep your credit rating high. Your financial life will be much easier if you pay attention to the 4 C’s of credit.

Jay

Sean J Williams asked:




Do you know what your 3 credit reports and scores have on them?

Has a bad guy, thief or other criminal massively damaged your credit report and you not even know about it? What happens when you need a loan for a car, or want to buy a house? Do you think anyone is going to loan you money with the big black marks on your credit reports that you may not even know about?

Not knowing WILL cost you a lot more money than if you pay attention. Why? Because in the United States there are a lot of things based on your credit score.

Your car insurance for instance will be substantially more expensive if someone has screwed up your credit and you’ve done nothing to fix it.

Health insurance? You bet! They base some of their rates on your credit score as well.

Are you getting the picture here? Not yet?

Okay how about every time you make an interest payment, or a credit card company re-evaluates your account? Do you think not knowing your credit scores will be the best policy to protect you against that?

Of course not. The fact is that you need to find out where you are financially by first determining what’s is good and bad with your credit, or if someone has made you a victim and you don’t even know it yet.

What will happen if you never find out until it’s too late? Do you want to imagine your future as someone who always rents an apartment because no bank will ever give them a loan to buy your own home and live the American dream?

That’s why you need to know your scores, and have your reports. But only you can decide to protect yourself.

Tonya

Rachel Altman asked:




It’s no secret that we live in a credit society. If you have a credit rating of sufficient rank, you can live a very nice life as long as you maintain responsible payment habits. There are vast numbers of Americans that have seen their credit ratings fall to levels that disallow them from acquiring the things that they want out of life – including some of the basic necessities like housing and transportation. If you are one of those people, there is still hope! You can take steps to improve your credit rating. You can restore it to levels where you can breathe again and start enjoying your life. Let’s examine some of these steps now:

o You need to see just what kind of shape your credit is in. It may not be as bad as you think – it may be worse. Check it. Once every year, you are entitled to a free copy of your credit report from each of the three major credit bureaus. You are also entitled to a free copy any and every time that you are turned down for a credit card or auto loan. By checking your credit score regularly, you will be better able to identify and rectify problem areas.

o Once you know what the problems are, start fixing them. The first item to check for is erroneous information. There could be clerical errors and the like living on your credit reports and destroying your credit reputation. By immediately notifying the reporting agencies about errors, you have taken the first important step to credit restoration.

o Obviously, one of the biggest credit rating destroyers is not paying your bills on time – so start doing it! Your credit rating is a number that others use to gain insight as to your dependability. Regardless of the reasons that your credit is damaged or broken, today is the day to begin repairing it. Make every payment on time – every time.

o Don’t buy things on credit unless you are absolutely positive that you will be able to pay for them on time. If you even have a little doubt, put the purchase off until a later time.

o Make some small sacrifices here and there and pay your credit cards down. Stop paying that minimum payment each month. After late payments, high credit card balances are the most damaging aspect of your credit rating. If you want to restore your credit rating to desirable levels, pay those cards down and then quit using them so much.

o You can obtain a secured credit card to begin generating the proof that you need to show potential creditors that you can handle responsibility. Most issuers of secured credit cards guarantee reporting your payments every month.

Having bad credit isn’t an end-all situation. With a little time and effort, you can begin to restore your credit rating to the levels that you need and desire. Life goes a lot smoother for you when you have good credit. Start today to restore your credit rating!

Barbara

Bryan Hufford asked:




Ever wanted to improve your credit score? Don’t fall for the false internet claims of “raising your score overnight!” I’ve got 3 tips that cost nothing and will help you raise your credit score over time.

1. Make sure your credit report is accurate

Are you sure the information on your credit report is up to date? Small errors on your credit report may affect your credit score. Here’s an easy way to improve your credit score: With the Fair Credit Reporting Act in place, you are entitled to make any changes of errors that appear on your credit report. By identifying the error and submitting proof to any of the 3 credit bureaus (TransUnion, Experian, and Equifax), you can get inaccurate items deleted from your credit report! This can help raise that FICO score!

2. Maintain balance on credit cards accounts at 30% of your limit

Credit bureaus do not like seeing your credit card accounts maxed out. It shows financial irresponsibilty. A safe percentage to have circulating each month on your credit card balance is 30% of your credit limit. If your credit card balances are higher than 30% of your credit limit, pay down the balance so it remains at 30% or lower of your credit limit. This will also help raise your FICO score.

3. Make payments on time each month and every month thereafter

Your FICO score is based on the past 2 years of payment history on any credit card or installment accounts. Making one late payment on any account can lower your score significantly. By making timely payments each month, you can increase your credit score over time.

These are just 3 simple tips that cost nothing that can help raise your credit score over time. I hope you’ve found them helpful in your quest in gaining a better credit history.

Teresa

Paul Sarwana asked:




Many people often wonder how they can raise their credit score. It is actually easier than most people think. There are many different steps you can take for improving your overall credit rating. Here are three essential steps you can take:

1. Obtain Copies of Your Credit Report

One of the first steps to increase your credit score is to obtain copies of your current credit status from the three main credit reporting agencies. As the three major credit bureaus, Equifax, Experian and Transunion may have different items on their reports you will want to compare them and thoroughly look over them.

Make sure that there are no errors or mistakes on the report that could be bringing your credit score down. Checking over your three credit reports will also give you a full understanding of where you stand and how much work you will need to do for your credit score improvement.

2. Make All of Your Payments on Time

Another way to raise your credit score is to make all of your payments on time. If you currently have any open loans or credit cards with balances, be sure that you make the full payment on time. Always make any and all payments by their given due date because anytime you make a late payment, it affects your overall credit score.

As well, work to pay off your credit cards and loans. You can simply do this by paying off the smallest credit card balance first and then working your way up the ladder. The less you owe on credit cards and loans, the higher your score will be.

3. Obtain or Not to Obtain a New Credit Card

While trying to boost your credit score, you will not want to obtain any new credit cards or loans. The more available credit you have available, the lower your score can become. Stick with the current credit cards you have, as well as work to pay them off as soon as possible.

If you are trying to repair your bad credit and currently do not have any open credit cards or loans, then you may want to obtain a credit card with a small credit limit. Each month you can put a small amount on the card. After you have had the card for a while and have made the monthly payments on time, your credit score will begin to improve.

So, whether you are starting from scratch or have damaged your credit rating, you can take some simple steps to raise your credit rating. The harder you work on improving your score, the quicker and easier it will happen. And before you know it, you will have the good credit score you desire.

Franklin

frend asked:


if i tell my lenders that they can have the house.

But i’ve never been late on any payments for this mortgage.

Will this show up on my credit report for the next 7 – 10 years?

Can i purchase another house in 2- 3 years when market goes back up.

Lawrence

Santhana Chann asked:




People who have a bad credit often find it difficult to obtain a loan to supplement his needs. As bad credit is not desired by any company or individual to issue the loans, these people often tend to get to the edge of the road and lose their hopes. However, there are chances that one can improve his credit score and turn bad credit report in to a good one. Only then he can improve his chances of qualifying for a loan.

The quicker you turn from the bad credit score to the good one, the quicker you have the chances of qualifying for a loan. Moreover, doing this can save lots of bucks for you. There are certain ratings given to each individual based on his credit history. People who have a rating as ‘OK’ are highly prone to more loans than those people who have their credit history rated as ‘Fair’. This clearly implies that people with the ‘fair’ credit rating have to clear off all their debts as soon as possible to get qualified as ‘OK’. The unused credit does all the difference and stands as the major factor in determining the rating of an individual.

People with lower credit rating have to work along way to get into higher credit rating. They have to concentrate on the negative entries that they have allowed to enter in their credit history. One is always recommended to maintain a good score as only people who have a good credit score have the highest chances of obtaining a loan than any others.

Julia

Gary Bunn asked:




Your credit report is the one piece of financial information on which you will be judged on forever! This is the one piece of personal information that will determine if you are accepted or turned down for every credit application you make in your entire life. Its not surprise then that having a poor or damaged credit report can be a real worry.

Its not only used in the decision to grant you credit, but it also effects the terms of your agreements. For example do you have to pay a deposit? What interest rate will you be offered? Will you qualify for a better deal? Do you need a second person to be a guarantor? Almost every decision regarding financial credit facilities is decided using the information on your credit report.

Even though most of us understand just how important our credit rating is, sometimes we still end up in difficult situations which reflect badly on our credit files. That’s just life and sometimes it’s simply unavoidable. Perhaps you’ve noticed errors on your credit report or maybe there’s incorrect information recorded against your name? Damaged credit can happens due to a huge variety of reasons, so it’s not something you ought to be ashamed of. What’s important now is getting your report back on track..

The first step you must take to begin repairing your credit file is to get hold of a current copy of your credit report. You can get a free copy of your credit report from all 3 major companies here. You’ll then need to spend some time reading through your file and highlighting any errors or information you think might be incorrect or misleading. This may take an hour or so, so grab a coffee, sit down and get to work!

Next you’ll need to make the credit referencing agencies aware that you are disputing some of the information on your report. You’ll find contact details for each agency on the credit report itself. It’s really simple to contact them and you can normally do this online. They will then be obliged to investigate the issues you’ve highlighted. Normally these agencies are quite helpful. After all it’s in their best interests to have the most accurate information possible.

Now it’s time to contact the companies on your file that claim you owe them money. This may be a debt from years ago or it could be a more recent debt, for this purpose it doesn’t matter, anything that shows as a debt needs to be addressed. Write a short letter to the companies shown on your file asking them to validate your debt with them. They are legally obligated to send you proof of this within 30 days. Make sure you keep copies of the letters you write for future reference. If they cannot or do not comply within the allotted 30 days, they are legally required to delete you from their systems and the credit referencing agencies will remove the entries from your file. You’d be surprised how many companies can not provide you with this proof because of poor record keeping!

Now you will be in a position to see exactly how much you owe and to whom. Contact the outstanding creditors and make offers on repayments, you do not need to clear the debt in full in one go if you do not have the cash available. Companies are very helpful when it comes to arranging repayments you can afford. Your payments will then begin to show on your credit report within a month or so, instantly beginning to strengthen your report. Keep making repayments you can afford and stay in touch with the companies you owe, this way your report will reflect on time payments, your debt will decrease and most importantly your credit rating will improve with every passing month!

You can get hold of your Free Instant Credit Report here today if you’d like to know what’s on your file.

Mike

William Harty asked:




Here is a list of tips to help you rank well on the FICO score scale very soon:

1.) Pay OVER your minimum monthly payment. This will separate you from the rest very nicely.

2.) Have several open credit lines that are active. You must service your many lines of credit if you really want to boost your score. These can include a variety of loans, credit or gas cards, and mortgage payments.

3.) Never pay off all your debt. To get really superior credit on the credit rating scale, you cannot pay all of your debt off. Lenders like to you that you can service debt responsibly and carrying a little every month certainly helps.

4.) Do not exceed your debt beyond 30% of your limit. If you have a credit card with a limit of $1000, it is a must that you do not carry any debt that is over $300 for this line.

5.) If you need to borrow $600 then simply ask for an increase in you line amount. This is another strategy to build nice credit. By increasing your credit lines the credit bureaus will see that you are a stronger borrower and you scores will raise.

5.5) Always monitor your credit report! Because of the changes in the credit card industry, you may have a higher interest rate or lower line amount without you know. This happens regularly and will knock down your credit score instantly.

Because of lending changes and credit card companies who control their industry and change rules, it is important to have a clear understanding of where you stand on the credit rating scale. There are also issues with identity theft to be alert of that a good credit monitoring can help.

Jason