Good, Average And Bad Credit- Where Do You Stand?
By Mike Wayman
Credit scores can help you understand your personal credit power. As someone with good credit, which people generally agree is anywhere from 720 on up, you qualify for lower rates on loans, purchases, and can receive gifts like miles and other bonuses. Having good credit makes it possible to buy cars and homes with financing. If your credit is too low, your can be denied access to this type of financing, or be forced to using much higher interest rates, which isn’t exactly fair to you, but the lender makes the decision.
With good credit, you can get approved for any kind of financing. With a high score like 850, no one will have trouble lending you money. Some lenders do not require high credit scores, but look out for specific activity on your report. If you believe your credit is low, it may be enough for a car loan or home repair loan.
Having a score between 600 and 700 is considered to be fair or good. Anything below 600 is considered poor credit. Taking the time to manage your credit report to clear out any old outdated activity can help you build your credit. Over time you can improve your score, which helps you to get access to money you may need for emergencies or unexpected expenses.
How And Why Your Credit Score Will Change
By Mike Wayman
How often does our credit score change? What causes a change in our score? Any time our credit report changes, our score can change. What would cause a change? There are several reasons.
You may have missed a payment, or made a payment late. You may be applying for a credit card or a new loan. You might be changing the amount of available credit that you have with a particular company. Perhaps you have defaulted on a loan, or filed for bankruptcy.
Some will find when they apply for a gas credit card, for example, your credit may go down if you update your score. Once the creditor reports to the credit card bureaus of your activity of paying on time, and not keeping a balance, your score should go right back up. After all, your total overall credit has gone up.
If you have stable finances, your score should not be constantly changing. In fact, your credit score may stay the same for many months. If you resolve any debts, or clean up any mistakes in your credit files with the credit bureaus, this will also affect your credit score. Keep an eye on your credit score by checking at least once a year. If it doesn’t change you can be secure and comfortable with your score.
A Guide To Understanding Equifax
By Mike Wayman
Equifax is a credit reference agency which keeps records of all of your credit information. They keep information on credits you have, credit your have applied for, your address, previous addresses, and your status on the electoral registry. When applying for credit or updating your credit report, Equifax is one of the three major credit bureaus that keep information. They have been around since the mid 1970’s and are based in Glasgow, Scotland.
When applying for a copy of your credit file from Equifax you pay about $15.oo. It will arrive within 7 working days. This report shows any late payments, CCJ’s, and what companies have looked at your file. Look through the file for any errors. You may find some things that are outdated or incorrect. After you determine what is out of date you can contact Equifax and they will update your information.
How recently your file has been updated can change your credit approval rating when applying for credit, so it is a good idea to update your file at least once a year. Most companies today use credit scoring when applying for credit with them, so doing a yearly check will help you to avoid mistakes and keep the credit application process smooth and easy.
