Free Credit Report Blog

Do You Know Your Credit Score?

2008-12-30T02:58:00.000-08:00

Are you aware you credit score and whats on your credit report will have a major effect on your ability to:

Get a car loan
Buy a car
Rent a flat
Obtain a credit card
Buy a home
Get lower interest rates on credit

You NEED to know what is on your credit report, today get access for FREE at www.checkyourcreditscoreuk.info

Credit Score: Rebuilding Your Score After Bankruptcy

2008-12-30T02:57:00.000-08:00

Our credit scores seem to make or break our financial futures these days. A good credit score means smooth sailing as far as financing and loans are concerned. A bad credit score can put serious road blocks in your way. Bankruptcy is about the worst thing that can happen to your credit score. The process is lengthy, stressful and quite often people end up with the bare basics.

Life does go on however even after a financial set back such as this. Bankruptcy will make things difficult for a time but with some determination they will improve. In this article we will show how to rebuild your life and credit score after bankruptcy.

Bankruptcy can affect your credit for up to 10 years. However, if you keep control of spending in as little as -3 years your financial picture can look much more promising. To start to boost your credit rating again, one of the first things you should do is obtains a major credit card. It is easier than many people think.

You may only get a small limit but actually several companies will still offer cards to those with bankruptcy. Bankruptcy gives you the advantage of a clean slate. Your new creditors will know that you have no other debt. By law you cannot file for bankruptcy again for another 7 years. One way or another they will get their money.

The next thing you need to do is find steady employment. Usually 1- years is the minimum time required? Lenders consider longer terms of employment more secure than those jobs you only have for a few months at a time. Earning a regular salary and wage also helps. Once you get your card, make regular payments and make them on time. Do not max out the card. Leave some space as this helps to raise your score.

It won’t happen over night but it is possible to raise your score after bankruptcy. By taking care of bills, staying in steady employment and making payments on time. Bit by bit your score will rise again.

Credit Score: Can I Buy A House With A Bad Score?

2008-12-30T02:56:00.002-08:00

We hear nearly everyday how important it is to maintain a good credit score. High credit scores can mean good financing terms where as low credit scores can mean high interest rates or no financing at all. When we leave school, most of us rent our first homes. From there we hope to buy a home of our own. In this article we will look at how people can still purchase homes with low credit and even bankruptcy on their reports.

Bad credit and bankruptcy can make thing much more difficult when it comes to purchasing a home. However, it doesn’t make them impossible. The key is knowing when to apply and demonstrating that you are a reformed character as far as your fiancés are concerned. Bankruptcy does have long term effects. The term between filing is seven years but it can adversely affect your credit rating for up to 10 years.

There are options however. FHA loans are available for those that are on low incomes or have a bad credit history. They will loan money with as little as two years passing after a foreclosure or filing for bankruptcy. They also ask for as little as 3% as a down payment. Individual circumstances will apply but they are a very viable option.

If you maintain a credit score of at least 580 after an expectable period of time, then sub-prime lenders are an option. They will many times offer 100 percent financing on the home but the rates will be higher than if you went with a standard lender.

Finally, there are hard money lenders. These will make fund available with as little as 6 months passing after bankruptcy. However, they will quite often want 25%-35% down payment and will have high rates of interest. These rates are adjustable over time. If you maintain consistent payment then they will start to come down.

Bad credit and bankruptcy are things that we all want to avoid. However, if it should happen then remember it isn’t the end of the world. With some effort you can get financing for a home. It may cost more but in the end it could be worth it.

Credit Score: How To Dispute Information

2008-12-30T02:56:00.001-08:00

Many of us today have never seen a copy of our credit reports. This is a mistake and it could be a costly one. Those that get their reports quite often find that there are errors on the pages. These errors can lower your scores if they are negative entries such as late or missed payments. You have one of two options. You can get angry and do nothing or you can get angry and take action. The law is on your side in this instance and mistakes to credit reports must be rectified. Unfortunately it does take time and possibly several layers of beuracracy to get it straightened out.

The first thing you need to do is copy your report and identify all of the errors that you believe exist. You then need to send it to the credit reporting agency that generated this report. You need to explain each dispute and ask that it be corrected. It will help greatly if you have your receipts, statements or any other supporting paper work that proves what you are saying. Always make copies, never send your originals.

When you send everything off it is highly recommended you do it by certified mail. Ask for return receipt. That way their side cannot say the package never arrived. You would be surprised how many of these packages go missing so to speak.

You should also send a letter to the creditor that the mistake involves. That way they will know what you are doing. They may also be able to supply you with the evidence you need such as proof of on time payment.

Once this is complete, the credit reporting agency has to initiate an investigation. They will write to your creditors to see if their information is correct. If your creditors cannot verify this then it legally must be removed from your credit report. Once the investigation is complete you are entitled to a copy of your new report. You amended credit report can also be sent to anyone who previously requested a copy.

Error happen on credit reports much more often than people think. By requesting a copy of your report and disputing any mistakes, you can raise your scores and possibly get the financing you need.

Credit Score: Types and Length of Credit

2008-12-30T02:55:00.000-08:00

Our credit scores play an important part in our financial futures. Credit scores determine if we get the financing we need as well as at what cost that financing will be to us. Credit scores also help to determine out insurance premiums and can even affect our chances of getting certain types of employment. It is important to maintain a good credit score, but if yours is low there is a lot you can do to change things. In this article, we will look at how types of credit and the credit history length can help raise your credit score.

Your credit score was created over a period of time. If you have a high credit score it will take a lot to un do it. The reverse is also true; if your score is low then there is no overnight cure. There are several debt management companies that will try to tell you different. If you come into contact with them then leave them be. They are not telling the truth and are likely scam artists. You need to make up your mind to pay things on time and stick to it over a considerable length of time to have any real bearing on your credit score.

If your credit history is less than 3 years old, avoid opening several new accounts at once. When the credit companies see this they get worried. It is the majority of the time a sign that someone cannot manage their credit wisely. People who do this quite often move their debt from one card to the other. This does nothing to lower the balance just changes who it is owed to.

Sometime we do need to shop for several loans at one time. For example when we buy a home several searches for the best mortgage are usually done. This doesn’t have to affect your credit score in a negative way. Most credit scoring companies recognize this pattern of behavior. To insure it doesn’t hurt you, shop for your loans all together.

Some are under the impression that to fix their old credit problems, new accounts are needed. New accounts have little bearing on your credit score even if they are paid on time. The best thing to do is bring your old account current and keep them that way.

Finally, ask to see your own credit report. This does not affect your score. It is also the only way to find mistakes and dispute information that shouldn’t be there. This can have quite an effect on your credit score.

Raising your credit score won’t happen overnight. It took time to get where it is so raising it up will take some time. Avoid scam artists that promise instant solutions, avoid opening several new accounts and keep your old ones current. This way your score will start to rise steadily and stay there.

Credit Score: Keeping Debt To A Minimum Can Help

2008-12-30T02:54:00.000-08:00

Today we are more dependent on our credit scores than we realize. This magic number quite often is the deciding factor in if we can buy a house, car or get that all important student loan. The higher the credit score the better off your are financially in terms of getting loans. Those with low scores may still get financing but they will be forced to pay much higher rates of interest and charges than those with higher scores.

Those with low credit scores have two choices. The first is to accept their position and pay up for their credit. The second is to do everything they can to raise their score. Your credit rating and score is established over time. If it is low, it didn’t get there over night. Raising it up is going to take some time as well. Keeping your overall debts low will actually help to raise your score.

Some are under the impression that to get the highest possible credit score you need several maxed out accounts and you need to make the monthly minimum payment. This isn’t only untrue it is dangerous. Everything is fine as long as you are paying but if something should happen to change this then you can get into trouble.

In establishing your credit rating, the agencies look at something call credit to debt ratio. If your cards are maxed out or close to their limit then this can lower your scores. You also need to avoid the trap of moving debt from one card to another. This only helps if it is necessary and interest rates are lower. Doing this tells credit companies that you cannot pay your debts. If they see balances moving but not falling then this puts up loads of red flags.

Try to leave accounts open that have 0 balances. It may seem pointless but it can actually help to raise your score. This shows that you can control your spending if you have an open account with a low or 0 balance.

Finally, don’t try opening new account to decrease your debt to limit ratio. This will backfire and have the opposite effect. Better to pay down the debt you have and stay current.

Your credit score is vitally important to your financial future. However, if your score isn’t what it should be, things can change. Pay down debt and get your ratio lower. This will help immensely and lower the overall risk to you.

Credit Score: How To Improve It

2008-12-30T02:53:00.000-08:00

Lending someone money always involves a risk. If a friend asked you for money you would likely say yes or no based on the likelihood of ever getting the money back. Financial institutions work in much the same way. They look at someone’s income and credit score to help determine the risk factor.

We all have times in our lives when things don’t go as planned. We can loose our jobs or be forced to take lower wages. These all affect our financial circumstances and can unfortunately lower our credit scores. Fortunately for us these credit scores are not etched in stone. They are established over a period of time and they can be changed for the better. In this article we will look at some of the best ways to heighten your credit score.

One of the largest factors in determining your credit score is your payment history. It accounts for about 35% of the overall number. To keep your credit score high or get it up a few points you need to start paying bills on time. Concentrate on any bills that are past due, get them current first and work to stay that way. Past due accounts can do a lot of damage to your score.

Most people get into trouble through change of circumstances. They loose their jobs and cannot make the payments that they once made. To make matters worse they ignore credit and debt problems. As soon as you are aware that you may have a problem, talk to your creditors. They may be able to work out alternative arrangements. By lowering your payments it will take longer but there will still be regular, positive activity on your credit score accounts. Don’t ignore the problems in hopes that they will go away, they never do.

If things have been left quite a while then seek advice from a professional. Make sure they are legitimate. Anyone promising to turn your credit around over night is likely not telling the truth.

Your credit score is established over time. We all face difficulties in our lives but these can be overcome with some negotiation and determination. Get in the habit of paying bills on time and stay that way. Clear outstanding accounts and keep them current. Talk to your creditors and seek professional advice if the problems get too advanced. This way you can keep and even raise your current credit score.

Credit Score: Length of Credit and New Accounts Can Influence It

2008-12-30T02:52:00.000-08:00

In today’s world, it is tough to survive without credit. Essential purchases such as houses and cars are quite difficult to obtain without some financial assistance. A poor credit history can hurt one’s chances of getting these items. Many are under the impression that paying your bills on time is all that you need to worry about when it comes to your credit score. This is vitally important however; there are several other factors in play. Two key factors that help determine that magic number are the length of your credit history and new accounts that you apply for.

Your credit history length is important when it comes to determining your score. It accounts for about 15% of the total number. A longer credit history is looked upon more favorably than a shorter one. Someone with a credit history of 6 months isn’t going to look as impressive as someone with a history of 6 years. It takes time to establish a payment history. Those with longer credit histories typically have higher incomes as well.

When determining credit history length, they mainly look at individual accounts. An account that has been opened and regularly used for a few years is going to influence your score more than a newly opened account that has only been used a few times. They also consider how long it has been since accounts were last used. An account that is opened but hasn’t been used in years will have little bearing compared to one that is opened and regularly used.

New accounts also can influence your score. This account for about 10 percent of the overall number. They consider how many new accounts that you have and how often they are used. They also look into any requests for new credit. Lots of credit requests made close to each other can damage your score. even if they are all approved. It is best to space these out and control the number of accounts you have.

Your credit score is very important to your financial future. It can help determine if you will own your own home or have to accept a life of renting. It can determine if you get that new car loan or have to drive that old used banger for another year. Payment history is important but it is just one of many factors is gaining a good credit score.

Credit Score: The Amount You Owe Can Influence It

2008-12-30T02:51:00.000-08:00

If you have ever applied for credit in any shape or form, or any find of deferred payment plan, the phrase credit score has probably entered your vocabulary. Credit scored help determine first of all if we obtain credit and second of all the price we will pay for that credit. Credit scores can also influence other areas such as insurance rates and even employment. For these reasons it is best to keep your score high. Several factors influence your credit score. Your payment history, the amount you owe, your credit history length, new credit accounts and an overall mixed picture. In this article we will look closely at how the total amount of money owed can influence your credit score.

Many are under the impression that payment history is the only real factor to their credit score. This is highly untrue. Although keeping a good payment history is highly recommended, it only account for about 35% of your overall credit score. A further 30% is given to the actual amount you owe. The credit agencies that devise these numbers will look at how much you owe and on what types of accounts. For example, one is considered in a much better financial position if they owe 100,000 dollars on a house rather than 100,000 dollars in plain loan debt. Even if the person makes regular payments, owning on a house will give you a higher credit score and a better financial position.

They will also look at the credit account and which ones still have balances. They also look at the total amount of the credit line that has been used. Someone with 7 credit cards that are maxed out may present a higher risk that someone with substantial space left on their cards. If you have car loans they may look at how much you borrowed compared to how much you still owe. If you have paid of a good portion then this will reflect quite favorably on your score.

Maintaining a good credit score is important in today’s world. With the rising costs of housing and cars, fewer and fewer of us are able to afford these with cash. We rely on loans and financing to get the things that we want. A low credit score can make getting this financing very difficult. Maintaining payments is one essential part but keeping tabs on the amount you owe is another. Resist the urge to max out and be mindful of the type of debt you have. It could make a big difference in your financial future.

Credit Score: What Influences It

2008-12-30T02:49:00.000-08:00

Nearly all of us have heard the term credit score. This magical number that seems to hold control over most of our financial decisions. The credit score will decide whether or not you get financing on a home, car or other types of loans. They influence the amount of interest paid and even insurance rates. Some are even claiming that those with low credit scores can have difficulty finding employment in certain sectors. The credit score is vitally important and keeping it as high as possible can make a big difference in one’s financial life.

There are several features the influence a credit score. One of the most important factors is past payment history. Paying your bills on time is important because it helps you to establish a good track record. It also shows that you are a reliable person when it comes to meeting your financial obligations.

Payment history makes up about 35% of the total credit score. If you always pay your bills on time then this part of your credit score is sound. However, if you don’t then credit companies will start to ask other questions. For instance if you have a few late payments that are few and far between, then this will not effect your overall score much. However, if this is a frequent occurrence then things change. They will look at how often you make late payments and how late the are. A payment that is a few days late does not carry as much weight as those that are several months late. They will also look at all of your accounts. If you have several and only one shows a few late payments, then again it isn’t going to do a world of damage. However, if several accounts show frequent late payments then the story changes.

Your credit scores can be highly influenced is any of your credit accounts have been turned over to collections. If you owe money on an account, and make no payments in a certain amount of time, (usually 90-120 days) the company can turn the account over to a collections agency. Your credit score is automatically lowered and will remain there until this account is cleared.

Finally, bankruptcy can have a detrimental effect on your credit score. It will depend on the type of bankruptcy you declare but generally those that have been though this process are barred from getting further credit for several years.

Several factors influence your credit score. Payment history is one of the major components. By maintaining a good payment history and keeping up with all of your commitments, you will give yourself the best chance of keeping that credit score high.

Credit Score: Why It's Important

2008-12-30T01:36:00.000-08:00

Anytime we are in a bank or see something even remotely finance related, we hear the common phrase of credit score. Anytime we see a credit card application or open a bank account, somewhere on this bit of paper will be those two little words. Most of us can likely make a fairly educated guess as to what the credit score is. However, many of us are unaware of the profound impact this little number can have over our financial lives.

The credit score affects much more than if you are going to get that new credit card or not. Credit scores can be the deciding factor in many of our life’s decisions and challenges. In this article we will look at why it is so important to maintain a good credit score in this day and age.

The credit score is most commonly associated with loan decisions. It probably comes as no great surprise that whenever, you apply for credit card, loans, installment payment plans and mortgages the credit score is one of the major deciding factors. People with low credit scores will likely struggle to get approval on any of these more so than those with high credit scores. By keeping on top of your finances, you can insure that your credit score remains solid.

The credit score not only decides yes or know on various types of financing, but what rate of interest you will receive. Those with good credit scores are likely to get the premium rates of interest. Those with low scores are going to be charged more. Those with low credit scores can still obtain financing but quite often they are forced to use sub-prime lenders. These lend the money but at much higher costs.

Many are surprised to hear that your credit score can now affect the rate you receive on car and homeowners insurance. Several states have started employing this policy on the evidence that statistically, those with better credit scores are less of a burden. They make fewer claims than those with poor credit.

Finally, sometimes potential employers will look at credit scores when making the decision on whether or not to hire. Those positions in the financial world are known for this. A poor credit history will make some employers reluctant to offer expense accounts and company credit cards.

Many of us need credit accounts to get the things that we need today. Most of us would struggle to buy a new car without financing or a house without a mortgage. Having credit is important and so is maintaining a good score. Keeping the credit score high can offer better finance opportunities as well as more favorable insurance rates and even that dream job.