Posted by Lynn Daniels on Jul 7th
Banks use credit scores to determine whether they should loan someone money, and if so, how much they can safely loan them. Through careful statistical analysis and comparison of your official credit records, specific numbers are calculated for you.
Whether you need a bank loan to buy a new home, want to purchase a car, need money in an emergency, or for anything else, having a good credit score is of the utmost importance to your success.
To make sure you have a good credit rating, you should apply for a credit report at a credit reporting agency. Often you get one free rating per year, so it needn't be an expensive exercise. Most credit providers use the same agencies to get your scores and once you know your credit rating, you can easily get help to improve it, or if it's okay you'll have additional peace of mind when applying for a loan.
One would think that not being in the habit of using credit would give you a good credit record, but this is not true. Because there are no official records to prove whether or not someone can or will repay a loan, this will only give you a weaker credit score. The best way to get around this is to open an account for something like a cellphone, or get a credit card. The most important part is ensuring that it is always paid up in full, or you could end up with an even worse score.
It is CRITICAL to pay your bills on time, and even more so within 30 days. Credit reports are based on how regularly you pay, or rather, don't pay. How often your late payments occur is compared with other people with similar repayment problems and a statistical analysis is done to come up with the score. There are several criteria such as payments after thirty, sixty days and total non-payment and repossession.
To ensure a good credit score, don't ever apply for many separate loans or credit cards within a one year period. Too many credit requests is a sign of impending financial difficulty to most lenders. Rather get a single loan for a combination of things if possible.
If your credit scores are just a percent or two lower than a certain prescribed threshold it could mean that unfortunately you might not get the credit you need, or even mean that you will pay a significantly higher interest rate if you do get a loan.
Looking to significantly improve credit score? Get the super low down now in our complete easy yet effective credit repair guide.
Posted by Sean Wakefield on Jun 11th
The consequences that come with fraud could be quite devastating. That's why you can relax when you get a free credit score, knowing full well that all is in order. It's very important nowadays.
If you don't, you could be allowing criminals to use your name, acquire credit, and leave you with the bill and a credit report that is hurting. The truth is, if your credit score has been damaged, it will undoubtedly leave you with huge troubles.
That means that you could be refused from future purchases like a new computer, a car, or even a new house that you were aiming for. So, there really is no reason to neglect your responsibilities. The fact is that it's very easy to get a report and review it. The people in the field recommend that you do so on a regular basis because we really don't know the true facts about the extent of the fraud that is going on.
Over the years, a good amount of people have been victims of fraud. This fraud can come in many ways, including in personal identity theft. The damage that it leaves behind are many people on the brink of bankruptcy. Just think, you could steer clear of problems like this if you take care of your own affairs regularly.
You don't even have to use a phone or take time away from your busy day to do this. All you need is a few minutes and the Internet to find a website, click on the actual link and get the information you need.
Not knowing what goes on with your credit report will just continue to cause more and more damage. But with proper review, you'll be able to see exactly how much available credit you have, how it's been paid, and if anything suspicious has been occurring.
There are lots of people that don't have the time or the desire to do this on their own. If this happens to be you, just subscribed to a surface that will perform these regular credit checks and will sound off the alarms if there is any suspicious activity. By the way, you should also be reviewing all your statements, including credit card and bank statements to ensure that all is kosher. If you notice anything strange, contact the proper authorities to get it under control while you still can.
Getting a free credit score should be a part of your regular financial status report. A free FICO score will assist in making the process of applying for a mortgage go more smoothly.
Posted by Adriana Noton on Feb 25th
With the recent downturn in the economy, many people are realizing that they cannot afford to sustain the lifestyle that they have grown accustomed to living. Fortunately, this does not mean life cannot be enjoyable. There are a number of easy ways to live within your means without hurting your quality of life. With a little planning and knowledge you can live on budget without feeling the financial strain.
The following are a number of ways to live within your means while making life more enjoyable:
1. In order to live within your means, you have to be able to bring in more money than you are spending. Create a monthly budget that includes how much you spend on essential items such as home and vehicle insurance, utilities, food, cable, phone, mortgage payments, gas, etc. Then, calculate how much you earn monthly. Subtract your monthly income from necessary expenses to determine how much extra money you have to work with.
2. List extra expenses such as entertainment, recreation, and products you shop for in the home and on yourself such as clothing, personal care products, etc. Calculate how much you spend monthly on these items. You will then need to come up with ways to control your spending habits. This can include cutting down on the number of times you dine out each month, shopping for discounts at large department stores, second hand stores, surplus stores, etc. When shopping, look for deals, coupons, and sales. Never pay full price for an item. As well, you can often find great deals when shopping online.
3. Credit card debt is a major source of financial hardship. If you have several credit cards with high outstanding debt, you should at least pay the monthly minimum for each card, and then start to pay off the card with the highest interest rate. Owning fewer credit cards will make it easier to manage and remember. Always pay your bills on time to avoid having to pay any interest at all. To help wean yourself off of credit cards, start carrying cash with you at all times and pay using cash. Seeing the physical money literally change hands will help you consider needs vs. wants on a more regular basis.
4. If you are having trouble keeping up with debt payments, then maybe you should consider consolidating your debt in order to manage it better. Instead of making multiple monthly payments to several creditors, you can consolidate your debt and only need to make a single monthly payment. In addition to helping you get organized, this can also alleviate stress that is often associated with debt.
5. Clean up your credit score. Request a copy of your credit report from one of the following two major credit bureaus: Equifax, or TransUnion. Check it over for any inaccuracies. Look to see what debt is affecting your credit rating and work with a creditor to establish a repayment plan. Don't ignore your creditors as they will send your debt to a collection agency.
At first, implementing a plan to live within your means can seem very unpleasant. You may miss a few of the luxuries you had grown accustomed to. However, once you get used to the plan, you will find life more enjoyable as you will not longer have the worry of how you are going to pay all of your bills. You may even realize that you are much happier living on a budget.
Adriana Noton is a freelance writer who specializes in providing great financial information for Canadians. When searching online for debt counselling or credit counselling, one of the many resources available is Consolidated Credit; offering a variety of debt counselling services and financial planning tools to help Canadians get their debts under control.
