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 Taking the time to manage your credit report to clear out any old outdated activity can help you build your credit.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.

Understanding Your Credit Score

By Mike Wayman

Many consumers do not understand the importance of knowing the criteria used to determine their credit score. Knowing these details helps when you apply for a loan, seek to modify an existing loan, apply for a job, or even change auto insurance companies.

The credit score is comprised of five categories: Your payment history, the total amount you owe on all existing loans, the length of your credit history, the amount of new credit you have, and the types of credit you use. Lenders look at how well you make payments on existing loans and how many times any payments have been late. The also look at the total amount you have outstanding on loans, and compare that to your total worth. For example, owing more than the value of the property you own is always viewed negatively.

Also considered is how long you have been using credit. Someone with a history of using credit successfully for twenty years usually fares better than someone who just got his or her first credit card six months ago. Lenders look at how much credit you already have, and determine whether you are overextending yourself by applying for more, and lastly they look at the types of credit you use and whether you typically carry unpaid balances on store charge cards or pay off balances regularly.

Essentially, your credit score affects every aspect of your financial life, so it is important to know where it comes from.

How To Correct An Error On Your Credit Report

By Mike Wayman

Your credit score is a vital number in today’s economy.Along with that, your credit report is just as important. When you need financing for a mortgage or a car loan, it is important that you not only have a decent report, but that you also have one that is accurate.

Today you have easy access to your credit report. You can analyze the report to ensure that the information is indeed correct. It is quite common for people to have errors on their reports today. However, you do not want to have incorrect information on the report when you were applying for a loan with the bank.

What happens if you find something that is wrong when you go over the report? Do not worry. The information on the report is not set in stone. There are ways to fix the errors and guarantee that the report is accurate.

The process for dealing with disputes is simple and can be done online, by phone, or through mail. You need to give them your personal information including your social security number. Also, you have to list the company and account that you are disputing. And, lastly, you list a reason for the dispute. After you do this, the credit agency should follow up with you in about a month.

4 Credit Myths Everyone Should Know

By Mike Wayman

Given the economic uncertainties that we live in today, it is not uncommon that you might consider applying for a loan or needing to make a purchase off of credit. What is the best way to go about getting the right financing for your needs? It probably depends on your situation. And while you have probably heard on the news the reports about banks tightening their standards, you still have options to get the money you need. However, you need to be aware of common myths and mistakes people usually make when it comes to dealing with credit. Here are 4 good myths to keep in mind.

1. Credit Score = Credit Report. There is a difference between your credit score and your credit report. The credit score is a number, while the report lists a detailed history of your finances. This “report” includes payment history, balances you might owe, anything past due, etc.
2. Don’t check your credit report if you’ve paid your bills. Today many people have become victim to identity theft. If you do not check, you will never know if you are one of them.
3. Checking your credit report damages your credit. This will not damage your credit. Check it today!
4. Boost your credit by paying off bills fast. Your credit score reflects payment over time. Your score will not change overnight.