Posted by admin on June 11th, 2008 — Posted in Living With Mathematics
Is your credit report important? There are a lot of people who would not consider their credit rating as something too important to them in their life. There are others who, while recognising its importance, would not be overly concerned about the issue or understand the reasons for its importance. Well, to those people, they should at least be aware of some of the uses that are made of credit reports in the world in which we live.
Lenders
While it may seem obvious to state it, credit reports are predominantly concerned with assessing the risk involved in lending money to you. Lenders are obsessed with one thing, getting repaid, and their entire industry revolves around making this occur. Therefore, they have developed the credit score that will assess your likely hood of repaying them and this is then used to either approve or reject your application for credit. While this is the basic purpose, some more sophisticated lenders desire to get in on an ever larger share of the market and in order to lend to higher risk borrowers, they create different categories of loans which people with lower scores can qualify for. These loans will invariably have higher interest rates and other less favourable conditions and this will be the price you pay for having a lower credit rating.
Since loans are used to finance homes, education, cars, and most other large purchases in life, the inability to get access to credit, or only to be able to get it at less attractive terms and rates, is a substantially reason to care about your credit report and try to keep it in as good a condition as possible.
Credit reports are also used when you apply for renting or leasing accommodation. This is usually because the landlord wants to be fairly certain that you’ll be able to pay your rent as it falls due. So keeping your credit score healthy at this stage will pay off if you need to be approved for renting or leasing residential property.
There is also a trend among employer to start using credit ratings when assessing job applicants. The reasons they are making use of credit reports are of course different for every employer but there is a consensus that a healthy credit report and a good past record of meeting financial commitments is a good sign that the job applicant is someone reliable and worth employing. While it does seem slightly perverse that the very people that will need a job the most are precisely the ones that can be denied it but that’s the direction things are moving in.
Joseph Kenny is the webmaster of the UK credit card comparison site www.creditcards121.com/, where you can find a selection of credit card advice. For US visitors there is also the comparison site www.credit-cards-info.com/ for all US interest free offers.
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Posted by admin on June 8th, 2008 — Posted in Living With Mathematics
The truth about credit repair is that even immediately following a bankruptcy, you may qualify for a credit card with some companies, if you are employed and have a checking account. Some companies will approve your application even if you are unemployed. This is not to say that bankruptcy is the best credit repair option. It is not even a good credit repair option. It is just meant to offer a little encouragement to those who are frustrated and believe that there is nothing they can do.
Credit card companies that extend credit to people with low credit scores and those who have just declared bankruptcy charge higher interest rates and fees. If you qualify for one of these cards, but not the lower interest rate cards, it is important to pay the balance off each month. Typically the line of credit will be very low anyway, but it is still important to monitor your spending. The truth about credit repair is that establishing a good payment history will help. It does not exactly offset the bad credit, but if you are able to get a credit card and pay the balance off monthly, credit card companies will typically increase your line of credit. This will improve your credit score. There are many factors which determine a person’s credit score and one is the amount of available credit versus used credit. So, if you are approved for a higher credit limit, but you do not “charge up” to that higher limit, then your credit score will go up. The best credit repair programs consist of building good credit, while removing bad credit.
The truth about credit repair is that negative items do not have to stay on your credit report for a long period of time. They can be removed by the credit bureaus or by the creditors who reported the negative items in the first place. The best credit repair programs include disputes with the credit bureau and good will intervention with creditors. The worst credit repair advice is to wait the five to seven years for the information to “fall off” of your credit report. The truth about credit repair is that if you dispute an item on your credit report and the credit bureau cannot verify it, then they must remove it.
Even the best credit repair specialists will advise consumers that the whole process is time consuming and can be frustrating. This is the truth about credit repair, but it does not mean that you are “stuck” with bad credit for your entire life or even a number of years. People who have the time, patience and the knowledge can achieve results in a matter of weeks or months. If you do not have the time, patience or the know-how, you can hire a credit repair company. The best credit repair companies are associated with law firms. They do not recommend illegal action, such as providing false information on credit applications. They are honest and upfront about their fees. The best credit repair law firms can help you achieve results, do a lot of the work for you and take most of the frustration out of the process.
The truth about credit repair is that you must pay your bills. You must pay off any outstanding judgments or charge-offs. But, the truth about credit repair is that you can call a creditor who has reported a charge-off or judgment and negotiate the removal of the negative report. Once you have paid the creditor, they have no real desire to leave the negative information on your report. Even though the credit bureaus may say that a specific item will remain on your credit report for a specific amount of time; it is not necessarily the truth. The truth about credit repair is that consumers can accomplish a lot on their own and possibly more if they have the help and advice of one of the best credit repair companies. For more of the truth about credit repair, visit Credit Fix Solutions.
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Posted by admin on April 9th, 2008 — Posted in Living With Mathematics
Do you feel apprehensive because of the fact that you are in need of funds but can’t get it because of bad credit history?
Well! Gone are those days when bad credit was considered as something to be ashamed of and getting a personal loan with a bad credit………an impossible task. In today’s age of financial revolution the attitude has completely changed towards bad credit history cases largely due to the ease of getting tailor-made loans.
In the recent years, borrowing has increased drastically. You need to borrow for reasons which are endless. And, that’s where personal loans come into the scene. Personal loans are type of loans especially designed to fulfill your personal wants and needs. And, if you fall under the trap of bad credit, then also you have the possibility of accessing customized personal loans known as bad credit personal loans.
There are a wide variety of lending opportunities available for bad credit personal loans. All you need to do to enhance your chance of availing the best bad credit personal loans is by exploring different loan options and discover which loan opportunities are best for you and your needs.
The term ‘bad credit personal loans’ suggests that you are looking for a personal loan for a specific situation called ‘bad credit’. Bad credit may happen to anybody and most of the times because of circumstances beyond our control, such as, late payments, skipping payments, county court judgements etc. So, it should be kept in mind that under no circumstances it can debar you from accessing some of the best personal loans available in UK. Like personal loans, bad credit personal loans are also highly flexible in its character and so it can also be used for almost any purposes ranging from home improvement, debt consolidation, buying a new car to education and wedding. And, like any other type of loan, a bad credit personal loan has also got its own share of pitfalls, the chief one being, higher rate of interest.
Before applying for a bad credit personal loan, it is very important for you to be well versed about your credit score, the terms and terminologies of the lending market and the rate of interest available. These will help you to know exactly what should you expect from your lenders and will reduce the chance of falling prey to any gimmick.
Some simple steps to avoid bad credit history:
Keeping a budget which will allow you to get an accurate picture of your financial position - your incomings and outgoings.
Don’t take on major loans if you can’t really afford to pay them back.
Always pay your bills on time.
Cut back on non-essential luxury items if you’re feeling the financial crunch.
The best way to ensure the best deal for bad credit personal loans is by exploring all the options available, comparing quotes from various lenders and selecting the one that perfectly matches your financial circumstances.
Visit http://www.loans11.co.uk and get additional information about Bad Credit Personal Loans.
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Posted by admin on March 26th, 2008 — Posted in Living With Mathematics
Obtaining a credit report is an excellent way to begin taking control of your financial future. It’s recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud. However, once your report arrives you may have trouble making sense of it. How are you to read and understand a credit report?
There are three major credit reporting agencies that issue credit bureau reports; Experian, TransUnion and Equifax. It is recommended that you obtain reports from all 3 credit report agencies as they most likely contain varying information since creditors subscribe to agencies on a purely voluntary basis. The credit reports provided by each of the different bureaus may present somewhat differently but generally speaking the information will be broken down in much the same way.
There are four main parts to the credit report: personal profile, credit history, public records and inquires. Check each section carefully for any errors. Note any errors you may discover on a separate piece of paper as you read over your report.
Personal Profile
At the top of the credit report you will find all your basic information such as your full name, current and previous addresses and employers, social security number, and date of birth. Your spouse’s name may also appear if applicable. In addition, you may notice several variations of your name listed. This can occur when creditors record the information incorrectly. These discrepancies are usually left on your credit report. It is important however, to ensure that your address is correct. An incorrect address could alert you to a possible identity theft.
Credit History
The next section is your credit history. This provides you with an itemized list of your current active, past closed accounts and their balances or arrears. Listed first is the name of the creditor and your account number for each bill–sometimes the account numbers may appear partially obscured for security purposes. These debts could include real estate mortgages, credit cards, car loans, or medical bills.
There will be a column for identifying the nature of the account; Joint, Individual, Undesignated, Authorized User, Terminated, Maker, Co-signer or Shared. There will also be a notation of the date when the account was opened, number of months the account payment history has been reported and date of last activity. The report will show your high credit limit or the maximum you are allowed to borrow, if applicable. There is a column for Terms which indicates the number of instalments or monthly payments remaining on the account.
The next few columns will show the balance remaining on the account, any past due amounts and the status of the accounts. There are two types of accounts; instalment and revolving. An Instalment account means that there are fixed payments and a specific ending date, such as with a car loan. A revolving account is one with no fixed ending date as with credit card debts. Creditors like to see few revolving debts.
The credit report will indicate the different types of accounts and also may assign it a numerical ratings system. You may see such symbols as R1, R2, R3 or I1, I2, I3.The R or I indicates Revolving or Instalment and the numbers indicate the payment history of the account as follows;
- 0- account hasn’t been used yet
- 1- paid as agreed
- 2- 30 plus days past due
- 3- 60 plus days past due
- 4- 90 plus days past due
- 5- 120 plus days past due
- 7- Collection account or bankruptcy
- 8- Repossession or foreclosure
- 9- Charged off or bad debt
The credit report will also show a record of any debts that have been turned over to a collection agency. It will show the date the collection was reported, the name of the company handling the collections and the company or lender that the loan was originally issued with and the balance remaining on the account.
Public Records
These are reports obtained from local, state and federal courts. They will indicate records of bankruptcies, tax liens and monetary judgments. Overdue child support records may also be shown. These public records will remain part of your credit history for seven to ten years and reflect negatively on your total credit score.
Inquiry Section
This section reveals any parties that have obtained a copy of your credit report over the last two years. There are generally two types of inquires, hard and soft. A hard inquiry is one initiated by you, whenever you apply for a loan or fill out a credit application. A soft inquiry comes in three forms; companies that wish to offer you promotional applications for credit, current creditors that are monitoring your account or credit bureau inquires requested by you, the consumer. These soft inquires do not show up on credit reports that businesses receive, only on copies provided to you. Although many lenders will view too many inquiries on your report as negative, it is important to note that two or more ‘hard’ inquires within a 14 day period count as just one inquiry.
Credit Score
The credit report can also reveal your credit score. A credit rating scores is a means of calculating an individual’s credit risk to determine how likely they would be to make good on a loan. The score is a three digit number ranging between 300 and 850. The higher your score, the better it reflects on you as a borrower. A good credit rating score will enable you to negotiate for better interest rates.
Disputes
What if you should find an error on your credit report? Once you have discovered an error, contact the credit bureau that issued the credit report and state in writing what you found to be inaccurate. You will find the contact information listed at the top of your credit report.
The credit reporting companies must reinvestigate the claim within 30 days. They will then contact the party that submitted the item and attempt to resolve the dispute as quickly as possible. Remember, you have the right under the Fair Credit Reporting Act to dispute any inaccurate or fraudulent information that may appear on your credit report, and should do so in a timely fashion.
Once you learn to read and understand a credit report, you are moving towards a more secure financial future. Obtain your report today!
About The Author
Melanie Cossey is a successful home based freelance writer. Melanie writes many informative articles on the topic of credit, such as What is a FICO score and why is it important and Comprehending a Credit Report. To lean more about credit reports visit http://www.ultimate-credit-report.com for more on credit scores visit http://www.ultimate-credit-report.com/credit-score.html
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