|
|
| Home /Credit Information |
|
|
|
|
Bad Credit? No Credit? Yeah, Its a Problem.
Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit. The first step to solving these credit problems is to understand what your credit score means. In doing this, you will have a better idea of how to fix it. Creditors use a point system to evaluate your credit. The more points you have, the better your credit is. These are some typical scoring methods used by most creditors. * Age -Under 21= 0 points -24-64 = 2 points -65+ = 0 points * Marital Status -Single = 0 points -Married = 1 point -Divorced = 0 points * Number of Dependants -None = 0 points -1-3 = 1 point -Over 3 = 0 points * Current Residence -Living with family or friends = 0 points -Living in an apartment = 1 point -Living in a home that you are buying = 3 points -Living in a home that is paid for = 4 points * Previous Residence (Varies with creditors) -0-5 years = 0 points -5 or more = 1 point * Employment History (Each creditor determines whether the job is considered skilled, unskilled or professional) -Unskilled job = 1 point -Skilled job = 2 points -Professional job = 3 points * Income per Month (Varies with creditors) -$800.00 = 1 point -$100.00 = 2 points -$1500.00 = 3 points -$1800+ = 4 points * Current Debt per Month -0 - $300.00 = 1 point -$301.00 - $500.00 = 2 points -$500 or more = 3 points * Previous Credit -A loan in good standing with the agency you are now applying with = 4-5 points -A loan in good standing with any other agency = 2-3 points * Savings or Checking Account Information $500.00 in a checking or saving that has been open for 6 months or more = 2 points * Having a phone in your name is worth another 2 points. When you add these up you should have anywhere from fifteen to twenty points in order to secure a loan. If one creditor turns you down, keep trying. Each creditor has a unique set of guidelines they use to determine whether or not a loan is given. If you need to boost your credit score, try getting a loan using a co-signer or a secured loan and pay it back before it is due, or apply for a credit card. Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and free credit repair information that you can research in your pajamas on his website.
Other Articles in This Category: Simplifying Your Search For a New Credit CardDont Dig Your Own Pit How Your Credit Rating Affects You, and How to Check It Choosing A New Credit Card How Creditors Measure Your Credit Rating Credit Repair, How To Applying for Credit Cards Online Free Credit Report - Really Useful Tips When Choosing Credit Cards Credit Damage: Getting Compensated for Your Loss |
|
|
|
RELATED ARTICLES
Credit Problems? Heres How to Manage Your Creditors If you find that creditors are calling you almost daily or that one of more of your bills has been turned over to a collection agency, you should know how to manage your debts. Dealing With and Repairing Bad Credit Bad credit can be a burden for otherwise good credit. It may not seem fair at times that financial mistakes in the past can haunt you in the present, but with a little bit of work and some time bad credit can be turned around and repaired. Choosing The Credit Card That Is Right For You Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances. Before choosing the right credit card you must shop around for one. Credit Report ? Watch Out for Parking Tickets The economic downturn of the last five years has affected millions of Americans, but it has also affected the budgets of states, cities and counties. With limited tax dollars with which to work, various government entities have had to try to stretch their budgets to allow them to continue to function. Many government agencies at the state and local levels have turned over debt collection to collection agencies, even for such seemingly small debts as parking tickets or library fines. What does this mean? An unpaid parking ticket could end upon on your credit report. SuperCharged Secret 3, Credit Card Utopia TURBO-CHARGED KILLER RATE SAVING INFORMATION! Collection Agency Secrets for Collecting on Bad Debt Getting worried that one of your clients, customers or patients will never pay? Have you given up on a customer who's essentially said he won't pay? Congratulations--being stiffed by a customer or patient is a milestone in the growth of a business or medical practice. But even the most hopeless of bad debts can sometimes be collected-collection agencies have been doing it for years. Here are six of their secrets. Why Credit Cards are a Bad Idea Credit cards are just so convenient, aren't they? There's no need to carry any money with you ever again: you can just take one with you to the shop and pay the exact amount just by handing it over. If you haven't been paid yet, then you don't need to worry, because the money will still be there. Recognizing the Signs that You Might Need Credit Counseling Most families in America today have a credit card; some have two or more. The type of credit card you own, gold, platinum, ext, is almost a status symbol in society. The concept is a good one, using your good credit to purchase big-ticket items that you may need time to pay for. If used wisely, credit cards can be a dependable resource, however, sometimes we are unaware of the fact that we are overspending. Some may think that if they are able to make the monthly payments, then their debt is under control. This is not always the case. These are some signs that you may be in or going in the direction of having a major financial crisis. Credit Damage: Getting Compensated for Your Loss Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured - tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it's the credit victim who ends up having to live with a bad credit rating. Why Should You Use Credit Cards Believe it or not, the way society, especially the commercial side, is set up these days, the only alternative to using credit is to pay cash for everything. But it's actually quite hard to do that. For example, if you want to rent a car, you have to have a credit card, even if you pay cash for the rental. The reason for that is because once a company has your credit card with your signature, they'll never lose money. If you default on anything, or if extra charges come up later, all they do is charge your credit card. Many companies require a credit card before they'll do any kind of business with you, for that very reason. Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth You got creditors calling you everyday. You could lose the car or house. Your teetering on the edge financial ruin - then you see an ad that may safe your butt! Typical headlines say something like "Millionaire reveals Hidden Cash Sources, or help for people in debt up to their eyeballs!" New Law Provides Free Annual Credit Report As of Thursday, December 1, 2004, one-third of Americans will be able to access their credit reports from all three main agencies for free. Passed in late 2003, the Fair & Accurate Credit Transactions Act creates a central source consumers can use to obtain a free annual credit report. Free Credit Report - Really 2005 marks the year that consumers will be able to get a free credit report each year. The roll out of the Fair and Accurate Credit Transaction Act signed into law by President Bush actually began last December 1. If you didn't know about it, don't worry. You haven't missed the boat. Not everyone is eligible to get their credit report. The Federal Trade Commission (FTC) is allowing the credit bureau's to implement the program piecemeal so as not to overload the new credit report system. Millions of consumers are expected to take advantage of the free reports. Credit Reporting: How Does It Work? In order to determine a consumer's credit worthiness, creditors and lending institutions have come to depend on credit reporting agencies. Credit reporting agencies supply individual reports that provide consumer specific information for lending purposes. With the advent of technology, most creditors now have automated systems that provide them direct access to credit reporting agencies. In most cases, credit agencies or credit bureaus provide personal, legal, and account history related information. In recent years it has become more common for lending institutions to use multiple credit reports to meet lending requirements. Besides meeting lending requirements, multiple reports also provide additional security measures. Using multiple sources for reporting purposes provides a more comprehensive and complete background check on a consumer's credit and spending history. Credit Cards and How To Choose Them: It may seem like a simple question but its important to take into account a few factors when choosing your credit card. If you are in the enviable position of being able to pay off your card every month then you are amongst the few. If like most you don't then we can offer you some guidance. Some Truth About Credit Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. No matter who you are or what type of business you are considering, credit is a vital component to be considered when developing your business idea and business plan. Useful Tips When Choosing Credit Cards Chances are you have received your share of "pre-approved" credit card offers in the mail, some with low introductory rates and other perks. Many of these solicitations urge you to accept "before the offer expires." Before you accept, shop around to get the best deal. Special Credit Information for Married Couples If you are married, establish separate credit accounts. What Is A Credit Report? Even if you have heard of a credit report, you may not know exactly what it is. If so, this credit report article is for you. Learning about your credit report is important in any campaign to eliminate credit card debt and obtain a good credit status. So, you should at least know the credit report basics. Is Plastic Making You Happier? If you're like most people, you probably own at least one.
|
| Category Home | Site Category Map |
| © 2005, 2006 Freeever Information |