Scott Paul asked:




Do you know your credit score? How do you interpret your score and repair it if necessary? Credit scores are a big part of our financial stability and future. In order to secure the best future for you and your family you NEED to have good credit. A huge step to improving your credit is to understand the credit bureaus and how they formulate a credit score.

If you own your own home, or car, or taken out a car loan you are probably familiar with credit lines. If you have good credit you can get low interest rates and if you have poor credit you will have high interest rates or maybe secured loans. Credit score scales are basically all formulated the same way.

They look at you previous credit history, which would include poor credit history, faulted loans, late payments, amount of the payments, number of payments, number of loans, length of time you have had credit, credit cards, checking account lines of credit and so on and so forth. All these things impact your credit and if you are late on payments or are never using credit at all it will take a long time to improve your credit. The best advice to get good credit is to use it often, but use it in small amounts that are easy to pay off on time so you don’t shoot yourself in the foot.

Another thing people don’t often think of is that credit inquiries and credit applications also affect your credit score and make you look suspicious.

Barbara

W. M. Blake asked:




Anyone who has checked into their credit score has probably found the rating scale to be somewhat confusing. There are a bunch of numbers, each meaning something different. Understanding how this rating works will help you to read your credit score effectively.

There are several pieces of information reviewed by companies when they build your credit score. These factors include the following:

- Your past payment history

- When you pay your bills

- The amount of outstanding debt you have

- The length of your credit history

If you have a great deal of debt or you don’t have a very long credit history, you will receive a lower credit score even if there are no “black marks” against you.

Recent credit applications also factor into your score. If you have made too many applications recently, this will cause you to receive a lower score. As will too much debt at high interest rates, such as high rate credit cards.

A score of 700 or higher is considered a good credit score. At this level, you shouldn’t have any problems getting credit, and at a low rate of interest.

If your score is between 450 and 650, it indicates that your credit needs some work to improve it. At this level you’ll likely have a harder time finding a loan or qualifying for a credit card without some type of security. You will also likely be paying a higher interest rate because you are considered a higher risk.

If your score is below 450, your credit is in need of some serious help. At this level you likely won’t be able to qualify for a loan or credit card until you pursue some form of credit counseling to improve your score.

If your credit score needs improvement, there are a number of sources that can help. There are many credit counseling services available, many of which are free to use. They will be able to assess your financial situation and offer advice as to the best route to improving it – and your credit score along with it.

Margaret

Mike Singh asked:




You may find yourself asking what does your credit score mean exactly? This is a valid question, many people ask themselves what does a credit rating mean. It is a score that determines how responsible you have been in handling your credit and debts. When asking about credit score, it signifies you should also know it helps in getting accepted for a loan or a credit card so it is important to keep it in good standing. Also when looking at your credit rating means you should do everything you can to improve it if need be.

Not only should you know what does your credit mark mean, but you should also know the parts that it is made up of. This is because there are many numbers and names all over it. It is important in determining what your credit mark mean to look at it at least once a year in order to avoid any problems and to resolve any that do arise as quickly as possible. This will mean you must look at it carefully and make sure everything is correct from your address to the balances on each account.

Something else that you need to do when trying to figure out what does your credit score signify is making sure you are ready to dispute anything that is wrong on it. You should also be aware of how to go about this. There are ways and the creditors must oblige within a certain amount of time.

A good thing to do before attempting to find out about your credit rating is to get a free copy of it for your records. This can be done online and at least once a year needs to be done. If it is too low for your own comfort you can work on improving it by curbing spending, paying on time and transferring balances. Do not buy anything you really cannot afford.

When trying to figure out your credit rating mean you should look at the interest rates of different credit cards. These interest rates can greatly affect your credit score and your ability to pay credit cards off. Get rid of any cards with high interest rates as soon as possible and you will be better off.

Most of the time when you are looking at what does your credit score mean, you are trying to figure out if something is wrong with it and looking for a way to improve it. By following these simple suggestions you can be on your way to doing a lot better financially. As long as you understand your credit mark mean, you are well on your way to being debt free.

Kathy

Mike Singh asked:




Understanding your credit score rating scale can seem like an overwhelming and almost impossible prospect. A credit rating scale can be confusing, especially if you have trouble with numeric systems. In a scale you have several numbers that all mean something different. Even though it can be a hard and overwhelming to try to understand your rating scale, doing so can be rewarding and a necessity in fixing it if need be.

One of the first things you should look at it is how exactly your credit score rating scale is composed and put together. Companies look at a couple of different aspects to put it together. One thing that determines how your credit rating is put together is your past payment history. This includes how well you pay your bills and whether or not you pay them on time or not. This aspect also includes any outstanding debt, too much can make your credit rating lean towards the lower end. Something else that is considered is your credit history in general. Beginners as well as a poor one can lower it as well. Sometimes if you are just starting out it may be even lower than someone who has a history that is poor.

Other things that are considered as part of a credit score rating scale are any credit applications or inquiries into your credit. Too many of either can lower your score and reflect poorly on you and your score. Different types of loans and credit can also have an affect as well. Balances that are too high and the number of balances that are too high can be a bad sign to a credit reporter as well. High interest rates can even be a negative mark as well.

On the rating scale a score of seven hundred or more is excellent and someone with this type of score should have no problems with credit or interest rates. While those with scores around six hundred and fifty to four hundred and fifty will have some difficulty obtaining credit, though could still have a chance. A lot of times those who fall on this part of the scale will have to secure any loan they apply for with some type of collateral. Those who fall below four hundred and fifty will most likely not get approved at all, whether secured or not. These people need to find a solution to their credit problems and a way to improve where they fall on the scale if they wish to stand any chance at all.

Speaking of help in rising where you fall on the credit score rating scale there are a lot of places to start from. Free credit counseling is available if you know where to look and will greatly help you if you are in need. These credit counselors will not only help you improve your score but can also help you get back on track and be more responsible in the future to avoid the problem again.

After sifting through all the information and getting your bearings you can learn a lot. Things may not be so overwhelming after all. When it comes to the credit score rating scale and understanding it, all it takes is a little patience, which in the end can be well worth it.

Eleanor

Maria Faith asked:




Purchasing a new home is not equivalent to lying in a bed of roses. This transaction will entail much effort and determination on your part. You will need to research available listings, find competent agents, and engage in different tasks in order to ensure your home purchase. One of the most painful processes that you will need to go through is applying for a mortgage pre-qualification.

This process can be made simpler through improving your credit scores. Good credit histories will help you look good in the eyes of your lenders. It would also finish the application process easier than you expected. Here are some of the most effective steps in improving credit score and qualifying for home loan applications.

Studying certified copies of credit reports

The first thing you should do is to look for true copies of your credit reports. Drive by credit bureaus and requesting copies of these important documents. After this, prepare yourself for creating a financial plan that would guide you through your quest of improving your credit scores.

In your financial plan, you should include a priority list of different debts that you would need to pay first. Your list should include all your outstanding debts and loans with high interest rates. By paying them as soon as possible, you can stop your credit scores from descending into risky rates. Since loans with high amounts and interest rates are the number one causes of your poor credit history, deal with them first.

After listing your priorities, write corresponding target dates that shows when each of them should be repaid. Stick to your plans and always follow your time frame. Avoid frustration by setting realistic time frames that are attainable and possible to fulfill.

Paying your monthly bills on time

Another thing that you should do is to stop ignoring your monthly deadlines. Do you always pay late for your car insurance? Do you fail to meet the deadlines of paying utility bills? Such delinquency in these payments will be shown in your credit reports. Break this vicious cycle and start devising ways to help you keep up with your important financial obligations. This would help you gain the confidence of your lenders and make desired mortgage qualifications within your reach.

Patience is a virtue

One of the best ways to improve your credit scores is to become patient with its process. Changes will not happen overnight, so expect dealing with emotional and psychological pressures. Always be positive with your developments and do not cause unnecessary frustration by setting goals that might be too high for you. Keep your head in the game and always remind yourself of how fixing your credit could lead you to the doorstep of your dream home.

If things get too hard for you, try asking help form professionals. Credit experts and financial advisers could help you stick with your goals and keep you focused in attaining your dreams. Doing things yourself is a cost-efficient way to fix bad credit. However, you should know when to seek help once you hit a scary dead end.

These three simple steps would help you improve your credit scores in no time. Once your credit history improves, you can finally ensure a mortgage pre-qualification and finalize your real estate purchase.

Reginald

datrik asked:


I’m trying to improve my credit score(530) and am going to get a Bank of America secured credit card. It has a $29 annual fee and a 20% APR. Is there another proactive way to dramatically improve my score without having to face such high interest rates?

btw, I havw already dealt with my bad credit past. I’m looking for things to build my credit, not fix it.
thanks!

Viola

Claire Hendley asked:




Is bad credit ruining your life? You may be surprised at the number of ways having bad credit can haunt you. In addition to not being able to qualify for loans, paying sky high interest rates, and not being able to get a cell phone contract, having bad credit can even ruin your chance of getting your next job.

So what can you do about it?

In this article, I’m going to give you 5 ways to quickly improve your credit score.

First, get a copy of your credit report from all three bureaus (Equifax, Experian, and TransUnion). Some people only get a copy of one and this is not sufficient because there may be different information on the different report. Scan your credit reports. Are there any mistakes? If there are, you should write a letter to the credit bureau reporting them.

Second, check if there are any duplicate entries. If something is on your credit report twice, it can hurt you. So, if the same credit card is listed twice, get this cleared up.

Third, consider challenging older and smaller amounts – even if they are correct. When you challenge a negative mark, the creditor is required to prove they are legitimate. If they cannot do this (because the records have been lost as often happens when debts are bought) or don’t think it’s worth the trouble (because the charge is so small), then you essentially get a “free pass” for the cost of writing a letter.

Okay, that’s it for the credit report, but I’ve got two more strategies that can help you repair your credit.

Fourth, go to your bank and get a line of credit secured by your savings account. Arrange for automatic payments from your savings.

Finally, pay your bills on time from here on out. Okay, I know it’s not sexy. But the best way to establish credit over the long run is to responsibly manage your credit.

Mary