Four Damaging Myths About Your Credit Score
Banish these myths from the way you handle your credit! Your score will be as good as it can be when you know the truth about how these actions affect your credit score.
Damaging Myth Number One: Closing inactive accounts will raise your score.
This is a widely held belief, but it's false. Closing accounts, whether or not they have zero balances, whether or not they're inactive, will often lower your scores. Why? Because part of your credit score is based on the ratio of your credit card debt to your total available credit. If you close a zero-balance account with significant available credit, this ratio gets smaller. It's as simple as that.
On the other hand, you can also have too much ...
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How is your Credit Score Calculated?
You know that the information found in your credit report determines your credit score, but how do they turn the information into a number?
Every time you apply to borrow money from a lender, be it a loan or a credit card, your credit report and score will be scrutinized. This score often dictates whether or not you will be approved for credit.
Credit scores range from 340 to 850, and are used to determine whether or not it is likely that you will pay back the loan. The lower the score, the higher the risk that you will not pay back the loan. For example, a borrower with a score of 439 is less likely to pay ...
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Tags: Finance
How To Improve Your Credit Score Before Buying A Home
If you are thinking about buying a home, condo or any other type of real estate, then you should know how your credits score will impact the home buying process. Most people who buy real estate do not have enough money in the bank to purchase a property outright with cash. Instead, most of us need to get a loan (also referred to as a mortgage) from a bank or through a mortgage broker in order the purchase real estate.The cost of a loan, is in part, linked to a person's credit worthiness. In other words, lenders want to know the likelihood that a person will repay the entire loan on time and to completion. In the United ...
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Tags: Finance
How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of cash. Putting aside the insanely rich, most people just don't have that much cash laying around. Some of us have only have a few dollars left over after expenses. Some of us manage to save a few thousand dollars. But unless you have several hundred thousand dollars in cash, you're going to need a good credit score to get around.
I know from personal experience that having a bad credit score prevented me from getting into apartment after my divorce. I argued with the property manager briefly saying "But I can pay you 2 years of ...
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Tags: Non-Fiction, Writing
Your Credit Score – It Is Important You Understand It
A persons credit score is one of the most important numbers they will ever deal with. A credit score is used by many different companies to determine the credit worthiness of a person. Almost every business a person deals with from utility companies to banks are interested in their credit score.
The credit score is based upon the things reported in the credit report. The higher the score, the better. A higher score means lower interest rates and an easier time getting lines of credit. A credit score is made up of the following information:
- 35% is based upon the persons payment history. It will be affected by making payments or not making payments.
- 30% ...
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Tags: Non-Fiction, Writing
How to Build your Credit Score
A solid credit score can lead to lower interest rates, loan approvals, and even job opportunities. If your score is currently less than what you would like it to be, you can take measures to improve it. By understanding the basics of the system, you can start building your credit score today.
What Credit Score Is
The term "credit score" refers to the overall health of your finances. The Fair Isaac Corporation usually calculates this three-digit figure. Fair Isaac takes information from your credit report and punches the numbers through a series of calculations. Your payment history and the amount of outstanding debt you have are taken into consideration. The length of credit, new credit, and type of ...
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Tags: Finance
Do you Know How Credit Scores Affects You?
As the world got more systematic and organized in various aspects of life, a system known as credit scoring and rating was introduced into the financial sector and this gained popularity in the 1980s. Credit scoring evaluated a person’s lifestyle, earnings, and expenditure and estimated quite accurately how much of a financial risk the person was. This helped banks and other lenders of money to determine whether or not a person was worthy of a loan and what their chances were of recovering the loan.
Credit scores and reports reflect how you have managed your finances over time. It maps the borrowing as well as payment patterns and reflects debt trends. Bad scores stem from not paying credit ...
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Tags: Business, Online Business
Better Credit Scores – 7 Tips
Credit scores are the equivalent of a financial report card. There is no way to avoid having credit scores since the Big Three consumer reporting agencies - Equifax, Trans Union, and Experian - keep tabs on your credit situation daily. These agencies then report your scores to any lender who requests it.A credit score is also called a FICO score. If you have a low credit scores you could be turned down for home or auto loans. Your low score can also actually contribute toward your financial woes since it usually means higher monthly payments on any money you borrow.There is hope, however! By taking the right steps, you can improve your credit scores significantly. Here ...
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Tags: Finance
What’s a Credit Score?
If you’re applying for a conventional loan, payday loan or just need a cash advance, your credit score could have an impact on your interest rate and loan term. So what is a credit score? What’s in it and what does it say about you? Credit scoring is how creditors or lenders assess their risk when lending money to you. They look at your score and it indicates to them how financially responsible you are.
Your credit worthiness is calculated by credit scoring agencies and bureaus. You should get a copy of your credit score at least once a year and make sure that there are no mistakes or omissions in it. You can get this information for very ...
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What is a Good Credit Score ?
Is 700 a Good Credit Score? This is a common question what score is considered worthy of good rates and terms? Typically Scores range between 300 and 780. There are scores that get into the 800's but you typically don't get that high unless you are in your 50's with low debt. There is a time factor in the calculations for having a score that high. You need to be around a while before it happens. You also need to have a excellent credit history with very little debt. So what are lenders looking for to consider your credit risk low? Here is the break down of what goes into the Credit Scoring process.
What goes into a ...
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Tags: Finance
