Good Credit Score Essay

Bad credit reports can affect ones’ life in several negative ways. With a bad credit report and a low credit score, it is harder to receive a credit card, an automobile loan, a mortgage, or possibly a job. It is important that one is always aware of the credit decisions made. Paying bills late, maxing out credit cards, and filling out too many credit applications in a brief period will also have a negative impact on the credit report. To keep a good credit report, one should pay bills on time and apply for credit sparingly. Last, but certainly not least, one should check their credit report annually! A free credit report is available from each of the three credit reporting agencies each year. This is something one should take advantage of since it will help them judge whether they are managing their credit wisely. It is imperative that one keeps a good credit score. If not, one could miss out on many opportunities. For example, one may find an opening for their dream job that they are qualified for, but the negative credit report causes them to not get the job. Do not let this happen! Maintain a good credit report and opportunities like this will not pass by!

(3) In order to get the best interest rates, on home mortgage loans or car loans you need to have good credit ratings, which enables you to borrow more money with less interest. However poor credit effects you the opposite way, it can also keep you from qualifying to rent a house / apartment, and denial of credit cards. Other issues you may have with bad credit, you may have to pay a security deposit on utilities, you might not get that phone contract you want, denied for employment, higher insurance premiums.

Making mistakes when it comes to your credit is a lesson that many people learn the hard way. Constant phone calls, mail, and threats can make a tough financial situation worse. Either how well or how poorly you manage your debts and finances are available to creditors to see when you apply for credit, such as for a retail store card, or even an auto or home

Credit repair works. And the results will have a dramatic impact on your financial life. Lenders everywhere have tightened their credit requirements. Every single point on your credit score matters. Credit blemishes can quickly translate into higher interest rates and even loan denials. You cannot afford to ignore the potential of credit repair. Do it yourself, or for a small investment you can hire a professional credit repair service to manage the process for you. Either way, now is the time to take action.

Have bad credit and want to improve your credit score? Apply for a bad credit credit card. Even if you have very bad credit, there are many lenders who have bad credit credit card products, available for clients with low credit scores. The problem isn 't finding a credit card product, but to make sure that you don 't get taken to the cleaners on high interest rates, annual fees, signup fees and more. If you know how to compare credit card offers, you can find a bad credit credit card to help you get back on track.

I learned from our interview that there are three credit rating agencies, Experian, Equifax, and TransUnion. These agencies use a wide variety of information about every person to determine his or her “creditworthiness” from the perspective of banks and just about any other entity that might ever consider extending financial credit to a person. Generally, a good credit score means that lenders will be willing to let you open new accounts, borrow money, and give you the lowest interest rates on any loans. Conversely, a bad credit score means the exact opposite. I learned that every late payment of any kind is a negative mark on my credit score and that makes the credit card’s policy on late payments very important. I learned that the APR is the financing charge calculated as an average percentage of interest on any amount

How are FICO scores determined? For those who are trying to decide on whether or not to grant you that extra line of credit or a bank loan there are a few things they take in to consideration. First off the biggest part of your score is made up of all the bills you’ve accumulated, how many have you actually paid. Secondly, they look at just how much money you owe those who you have bills with as in outstanding debts that have been sent to bill collectors. Third, how long you’ve had credit among a few other decisions.

What exactly goes into a credit score? Unfortunately, many consumers cannot answer this question. Credit scores are not easily accessible and therefore this lack or knowledge negatively affects individuals because they do not know how to better their score. A credit score is composed of five different components: thirty percent is the amount a person owes, thirty-five percent is payment history, fifteen percent is the length of credit history, ten percent is new credit, and the remaining ten percent is called a credit mix. One study of individual’s knowledge of credit showed, “that while most respondents knew what a credit score was ‘in theory,’ their practical knowledge of credit scores was lacking. Knowledge of the factors that positively and

If you run a check on your credit score, for example via Experian, you will see two different types of searches: searches which affect your score, and searches with no impact.

Too much outstanding debt: if your lenders see that you have too much debt, especially compared to your income, this will also destroy your credit score. Again, they will see that you cannot truly pay off your accounts. They consider you as being overextended and know that they probably won't get their money any time soon. This is a huge credit problem that you will want to avoid.

First of all pull your credit profiles at all the 3 credit bureaus. Lot of people forget this important first step and start chasing creditors for giving them a chance to prove their honesty. Your poor credit score may be due to someone else drawing credit in your name also called identity theft.

Don’t do something that could damage your credit score. There are two factors which could hurt your credit score.

But as helpful as credit cards can be, using them the wrong way can lead to a loss of credit score and even get you into debt. Therefore, it is important that you know how to make the most of your credit cards.

Knowing what other outlying debts customers have could be helpful in determining high-risk customers. Along with past credit history this could be helpful in determining customers to reject.

lead to serious financial consequences in the future. Make a plan detailing what are you going to use the credit for, how much money will be spent, what’s the interest rate, and how long do I have to pay it back. The sooner you make a payment on your credit bill, the least likely you’ll default on a payment. Defaulting on a credit payment not only hurts your credit score, it also incurs penalties that you have to pay for such as, late fees or your credit score dropping. Lenders are least likely to lend you if you have a turbulent credit history full of missed payments. There are two different types of credit: closed end and open end credit. Close end usually deals with one time payments like automobile loans, mortgage and installment loans. Open end credit is associated with credit cards and overdraft protection. Most of my credit stems from close-ended credit due to my student loans, recently I’ve been using more open-ended credit in order to satisfy my expenses. My debt payments to income ratio were higher than the 20% maximum. I would always be above the maximum suggested limit, since I hovered around the 50% mark, which showed I needed to reduce my spending. I was trying to build up my credit rating, but with the way I was going I wasn’t sure I could’ve maintained my credit rating. I wanted to have a credit rating where I wouldn’t be listed as a potential liability. Credit experience can affect many things in your life, such as an ability to get a loan or maybe even land