| |
| |
|
Credit Information |
|
|
|
Boosting Your Credit Score To Get The Best Credit Card Deal
Making Your Credit Rating Work For You One of the basics of getting the most competitive credit card deal in the market is to ensure you have the best credit record possible. Few of us are lucky enough to be earning a six-figure salary, and many people are likely to have other financial undertakings that a potential lender will want to take into account. None of this, however, should preclude you from getting a top bracket credit rating. Getting a credit score of 700+ may be beyond some consumers, but lifting your credit rating to a point at which lenders will furnish you with some of their best deals is not an insurmountable task. It can be a stressful time applying for a new line of credit. Many consumers get upset when applying for a new credit card when they find out their credit score is low, and they have poor credit. A lower credit score can impact the amount of money that financial institutions will lend you. It can also impact on the rate of interest at which you borrow. In some cases, the difference between having an excellent credit rating and a poor one could be getting a 0% deal on your credit card, and paying an APR that touches 30%. Sometimes financial institutions won't even lend you a dime, based on a low credit score. A variety of factors can impact on your credit score. Generally speaking, lenders love stability more than anything else. Paying amounts owed on time is but one of many variables. It could be that you've lived in more than one address over the preceding three years; or having borrowings with a variety of institutions. It could even be down to the fact that you've got too much credit already at your disposal. But just what goes into your credit score? A report by the analytics experts Fair Issac recently broke credit scoring down into five categories and assessed their importance on the final rating. Most important was how you had paid you bills in the past with the most emphasis on recent activity. Naturally, paying all your bills on time is good; paying them consistently late is bad. Having accounts that were sent to collection agencies is even worse, though nowhere near as bad as declaring bankruptcy. Paying your bills in a timely and consistent manner contributed to 35 percent of the score. Next most important was the amount of money you owe and the amount of available credit at your disposal. The assessment of outstanding debt fell into several categories, and included credit cards, car loans, mortgages, home equity lines, and so on. Also given consideration was the total amount of credit available. If a customer has 10 credit cards that each have $10,000 credit limits, that totals $100,000 of available credit. Generally speaking, people who have a lot of credit available tend to use it. This makes them a less attractive credit risk. This amounts to 30 per cent of the total credit score. Also impacting on credit scores is the length of credit history (15 percent). The longer a customer has had credit - particularly if it's with the same financial institution - the more points they get. The mix of credit contributes 10 percent to the credit score. Customers with the best scores have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. Statistically, consumers with a richer variety of experiences are better credit risks. As far as banks and credit card companies are concerned, they know how to handle money. The last important factor taken into consideration is new credit applications (10 percent). If you've applied for several lines of credit in the past few months this will negatively impact your credit score. The antidotes to this are simple. Pay your bills in a timely manner, particularly in the months leading up to an application. Close unused retail store cards, credit cards and old bank accounts with overdraft facilities. Maintain long-standing and healthy arrangements with banks and other lenders. Don't apply for a stack of credit cards, loans and so on, unless you're absolutely sure it's the right product for you. It goes without saying that you shouldn't apply for a credit line unless you use it. There's a sixth factor that can contribute enormously to a negative credit rating. In 2001 it became possible for customers to get their own credit score in exchange for a small fee. In the past, prospective lenders were able to keep this score hidden, and many unscrupulous institutions used this knowledge to charge a higher APR on credit. By being aware of your credit score lenders can't lie and say your score was low and charge higher APR on your credit card. More importantly, it's vital that you get rid of black marks on your credit rating. Errors unfortunately happen all the time, and erroneous reports of missed payments, referrals to debt collectors and even bankruptcies can scupper your chances of getting a low rate of interest and even a credit card altogether. Query everything and haggle with credit reference agencies so that only the information that is listed on your credit history that should be there, is there. You can find out your credit history by applying to one of several companies. Many offer an online service and can furnish you with the information both quickly and cheaply. Equifax, Truecredit and Consumerinfo are some of the best such providers. Patience is the key to getting a great credit score - and the best credit deals. You're never going to make the jump from having a credit score of 500 to one of 700 overnight, but by implementing easy to follow and practical strategies, you can quite easily leverage your credit score to a rating that is respected by all concerned. Ethan Hunter is the author of many credit card related articles. If you are looking for help with Credit Cards or any type of credit issue please visit us at http://www.creditcardunlimited.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit There are seven consumer credit laws you should be aware when dealing with your credit.1. What Is the Fair Credit Reporting Act and What You Should Know About It The Fair Credit Reporting Act (FCRA) and the recent update to this law called the Fair and Accurate Credit Transactions Act (FACTA) protect consumers against inaccurate information being reported by credit bureaus and the privacy of that information. What does this mean to you?When you make purchases on a credit card, make payments to your accounts, open new bank or credit accounts, borrow money, buy a house or a car, and even fund your education, your financial information is reported by creditors and lenders to a credit bureau. Credit Cards Can Help You Get Out Of Debt Your credit rating / credit score is based upon how you have dealt with credit previously.If you have always paid the full amount owing and never missed a payment then your credit score will be high. Credit Repair, How To Credit repair, is in a word, vital to reestablishing your credit. Unless you plan to never use your credit again, then you have to find a way to fix it. To Repair Credit Is No longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days... To repair your bad credit does not necessarily mean that you now have a good credit, absolutely not. When most people have bad credit, they either purchase a credit repair book or seek a credit expert help. Reward Credit Cards: Get the Best Rewards Card Incentive Program A good credit reward card can contribute to your retirement account, offer gas rebates, score theme-park or vacation tickets or take thousands off theprice of your next auto purchase. Rewards at hotels, airlines, and retailers bring more to the possibilities but, adds to the confusion. Five Reasons to Repair Your Credit Score - You Can Do It Yourself There are multiple reasons that tell us why we should have a 700+ Credit Score, but these five facts will definitely give you the big picture and hopefully will drive you to want to fix your credit score starting today.Fact #1: Did you know that consumers with Credit Scores of 700+ are likely to get interest rates up to four points lower than those with scores under 640. 4 Steps to Creating Good Credit As a consumer you've learned the importance ofestablishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score. Bad Credit Loans For Those Who Seek Alternatives for New or Old Car You can still save money on a Bad Credit Loan by comparing rates, checking out multiple policies, and negotiating with lenders.Getting a Bad Credit Loan doesn't have to be like basic training. Applying for Credit Cards Online In the olden days, about 10 years ago, before the internet, consumers would have to fill in applications for credit cards, loans, mortgages and so on by hand. It's hard to believe now, but this lengthy process was the norm, with requests for extra documentation and references going backwards and forwards, until finally the application was accepted or rejected. Debt Collection Agencies Debt collection agencies are often a viable option for receiving payment on overdue bills. Here you can earn how debt collection agencies work and what to look for in reputable debt collection agencies. Harassment of People in Debt by Creditors HarassmentHarassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970. It is often difficult to know what to do when you feel a creditor is not dealing with your account fairly. Choosing The Best Credit Card To Apply For Always shop around to get the best deal when choosing which credit card to apply for. If you don't do your due diligence you could end up with a card that has too high of an interest rate, that has an unnecessarily high annual membership fee, etc. A No-Brainer Way Of Getting Credit And Credit Cards What Is Your Credit Rating Now?If you have any charge accounts now, or have ever borrowed from the bank to buy a car, or if you ar paying on a mortgage, there is credit information on you.Up until a few years ago, you could only guess at what your credit rating was, because the credit bureaus who keep track of borrowers wouldn't tell the borrowers anything! But that's been changed through several laws, and now the bureaus have to send you your credit file when you request it. Save Money and Lower your Payments by Improving or Repairing Your Credit Having a better credit score not only represents easier access to money from lending institutions, but more importantly represents instant money in your pocket.This probably sounds like something obvious for most of people, but it isn't until you start thinking in terms of real examples and real dollars that most of us start to understand the magnitude of the benefits associated with a good credit score. How To Boost Your Credit Score Years ago your credit score was a big secret, known only to a select few such as your mortgage and credit card companies. In 2000, Fair, Isaac Co. Credit Repair Companies and Credit Counseling Let's be crystal clear, right up front. Paying someone to "fix" your credit is a waste of your time and money, since the negative issues that are temporarily removed from your file will only reappear again in a couple of months. Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK? About Search Entries:Every time a lender checks your credit history from your credit file (i.e. Secured Credit Cards- Consumer Tips Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.Several months ago Tom, a member of CreditBoards. 10 Tips To Prevent Credit Card Fraud Imagine opening your credit card statement one morning and discovering to your horror that you suddenly owe thousands of dollars - on purchases that you never made.Impossible?Credit card fraud on the rise, so you need to treat your card and its information with extreme care.
|
| Home | Site Map | |
| © 2007 |
