Is your credit score causing you stress?

Are you worried about your credit score affecting whether or not you get approved for an important loan?

The fact is that even though your credit score is just a number that represents your creditworthiness it can have drastic effects on your finances.

Lenders take credit scores seriously, which is why you need to make sure that yours is the best it can be. Here are some ways to do that:

1. Pay Your Bills On Time

 


This may seem like a simple solution, but delinquent payments can have a major negative impact on a credit score. Further, any delinquent account that is handing over to a third party collection agency will also reflect negatively.
 

2. Keep Balances Low

 


Whether it be on credit cards or other types of revolving credit it is important to keep your balances below 30%. High amounts of outstanding debt can negatively affect a credit score. Don’t let this suggestion worry you; you don’t need to have a balance of $0 in order to rebuild credit, just keeping your balances low will do some good.

3. Open New Credit Accounts Carefully

 


Make sure that your reason for pursuing another credit card is sound and not just to have an extra cushion. Don’t open accounts just to have a better credit mix. It probably won’t improve your credit score.
 
 

4. Pay Off Debt Rather Than Moving It Around

 


Although transferring a balance to a low interest credit card can be helpful, it only really benefits you if you are able to pay it off before the interest begins. Try to avoid closing unused cards as a short-term strategy to improve your credit score. Owing the same amount but having fewer open accounts may, unfortunately, lower your credit score.

Improving your credit score does not happen overnight, but it can be done. If you are looking for assistance with improving your credit score then you may want to look into hiring a credit repair company. These types of companies will look over your credit report to find items that may be reflecting negatively so that they can suggest to you how to dispute them.

If you are interesting in learning more about how a credit repair company can help you, then simply fill out our online application or call our toll free number today!

The fact is if you ever need to borrow money, get finance on an auto loan, sing up for a credit card or even buy a house, then having a decent credit history is invaluable.

Even if it isn’t great at this moment in time there are steps you can take to build a better history and improve your FICO score.

What you need to do first of all is to take stock of your own personal financial situation and ask this question?

Where am I going wrong?

Sometimes we can affect our credit history without even thinking about it by applying for all the offers coming through the mailbox. These might include offers on credit cards and other financial products from personal loans to credit lines.

 

Each time we apply for these a footprint is left on our credit file, and of course each time we are rejected then this affects the overall score. It’s the same when we’re invited to take out a store card – this is big business for the companies involved but can be bad news for the individual consumer.

The fact is you don’t need lots of credit cards or credit lines, and they don’t help your FICO SCORE especially if you’re a new citizen of the United States.

What shall I do first?

Make sure you check your credit report on a regular basis just to make sure everything is ok. The whole point of the Fair Credit Reporting Act is to guarantee you can see your own credit report free of charge every 12 months. There are three top companies and these are: Experian, Equifax, and TransUnion. These will help you keep track of any changes and you can even see your FICO score going up bit by bit. It’s there to help you in the long term.

CHECK OUT: https://www.annualcreditreport.com/cra/index.jsp

‘IF YOU SEE ANYTHING WRONG ON YOUR CREDIT REPORT OR YOU DON’T AGREE WITH SOME PERSONAL DETAIL CHANGES THIS SITE WILL ADVISE YOU WHAT TO DO NEXT’.

So how can I build and improve my history?

 

Well apart from ensuring your bills are paid on time take a look at any credit or store cards you may have. If you have too many then cut these down to just one or two.

Make payments to them on time and keep an eye on your own personal bank account making sure you manage it well. Only apply for a personal loan, credit union loan and any other loan if it’s absolutely necessary. Keep your financial commitments in terms of credit down to the minimum.

If you have to take out more credit make sure you can meet the payments and on time. Don’t apply for every offer coming through the mailbox and don’t be tempted by lots of store cards or credit lines. Do all of this and you’ll find keeping a good credit score will become second nature.

What if I don’t have a credit history?

This affects many people of course and you’ll need to build a history of credit at a steady pace over time. If you are new to the country and on an H1B visa, then you’ll need to open a checking account with a top bank like ‘The Bank of America’, for example. They can issue you with a secure credit card whereby you give them a sum of money upfront which is put onto the card itself. Always pay this on time each month and you’ll soon be able to get an increase in the limit. By doing this you are slowly building good credit. Ideally you need to give things two years and be careful not to overburden yourself financially.

Remember don’t despair as building or even re-building your credit history is always possible. Start today for a better financial future!

It’s seems wherever we turn these days the phrase ‘credit score’ comes bearing down like a vulture looking for prey.

From TV ads to magazines, newspapers and emails we’re constantly being told to check our score on a regular basis. And of course for many services out there it can be big business offering to keep tabs on the slightest movement. It’s almost as if we can’t go to the toilet without checking our credit score first! Some services make the big sell by luring you into the free trial trap, sometimes making it hard to get out before our credit cards are stamped. From Credit Karma to Equifax, the wings are constantly fluttering above us ready to swoop at the first opportunity.

It doesn’t have to be this way of course. Did you know for example As a result of the FACT Act (Fair and Accurate Credit Transactions Act), each legal U.S. resident is entitled to a free copy of his or her credit report from each credit reporting agency once every twelve months. The law requires all three agencies to provide reports. But it’s important to remind ourselves of what our free credit score is all about.

Explained simply, a credit score is a numerical expression based on a statistical analysis of a person’s credit files. This represents the creditworthiness of any individual. It all makes up a part of modern life, and like it or not it does affect us in many different ways. A low credit score will seriously affect your ability to get credit both now and in the future – likewise a high score will make life much easier for you.

Banks and credit card companies use credit scores to evaluate the potential risk posed by lending money to consumers. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue.

FICO or Fair Isaac Corporation, is the best-known and most widely used credit score system in the United States. It’s calculated statistically, with information from a consumer’s credit files. This provides a snapshot of risk banks and financial institutions use to help make decisions on lending. Applicants with higher FICO scores might be offered better interest rates on mortgages or automobile loans as well as higher credit limit amounts.

‘A FICO score is calculated between 300 and 850. According to recent studies 60 per cent of people fall approximately between 650 and 799. Research also shows opening several credit accounts in a short period of time represents a greater risk – especially for people who don’t have a long credit history.’

The main part of your credit report is your credit history. This lists your credit accounts, the date they were opened, the credit limit or loan amount, and whether you have missed any payments. It’s best to get a free credit score whenever you’re thinking of a purchase involving any form of credit.

The three nationwide consumer reporting companies in the U.S. have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

To order, visit annualcreditreport.com or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. Alternatively you can contact Annual Credit Report Request Service.

‘Remember! The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.’

But some words of warning! Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information. make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. Protect yourself against identity theft. Why not check out freecreditreport.com or freecreditreport.gov for more information

The three credit reference agencies operating in the UK are Experian, Equifax and Call Credit. Credit reporting agencies are commercial companies which compile information from a number of different sources, including the electoral roll, county court judgements and financial institutions. The UK credit reference agencies will also allow consumers a free credit check usually giving free access for a trial period, after which a monthly or quarterly fee may be charged for continued access. The trick is to make use of the free report!

Hey – as Neil Young would muse: ‘Keep on rockin in the free world’ – make sure you get your free annual credit report!! Free credit scores for everyone!

– Grahame Anderson