Many of us never bothering checking our credit. Why? Because we feel like we’ve gone through a few rough patches; maybe defaulted on a loan, have a past eviction, or even stolen a few items from a rent-to-own business and the credit world has flagged us for life. This is why leaning how to check your credit for free will give you an overview of where you stand with your credit and see how bad it really is or isn’t.
First, let me say that you shouldn’t just assume you have bad credit. If you had a problem with not paying your bills, collections, or even judgments against you that does not stay on your credit report forever, so don’t just assume you can’t get credit because of your past.
Many sites will tell you to contact the creditor and pay off your old debt, but what the smart people will tell you is check to see how long ago your bad debt was reported to the credit bureaus. After seven years, many items will fall off of your report and while it is
“A credit rating is an opinion on the financial soundness of an enterprise and its capability to repay its debts and the corresponding interest. It is a tool for risk assessment and as such, it provides investors with a simple and objective indicator of default risk to supplement their own credit evaluation.” (Business Finance and Philippine Business Firms, Nenita D. Mejorada, 2006)
Some of us are willing to give up the complacency and security of a regular job to go into business. We are willing to invest our money on a business where we can be our own master and employer. We make feasible studies, build our network, and offer our products through social eCommerce. But getting into business means having the acumen to take advantage of opportunities. We should know our target market, the goods and services our market needs, the growth and stability of our business, and the financial resources that we have.
There’s a great deal of business opportunities to try out there. A lot of us are willing to grab them but we don’t have the sufficient capital to do
The world is a constant flow of services and goods today that need to be created, ordered and paid for. In today’s economy, this is often done through credit. In a view to keeping this system functioning smoothly, it is important that businesses rely on business credit reports. Through business credit reports, companies can determine the creditworthiness of any business partner or dormant account.
The business credit report shows your ability and willingness to pay bills.
The business report is very similar to inactive accounts. If you are considering extending credit to a company on the other side of the world that is divided by a barrier of culture and language, then you need to rely on timely and objective business credit reports.
The business report is an accurate and objective document that provides businesses with the vital information they need to make a sound decision about whether or not to extend credit. With today’s global marketplace, it is impossible to inspect all facilities personally on short notice. Therefore, the global entrepreneur needs to rely on a small window through which they can examine that
Your credit card offers you access to a world of possibilities. It can not only help you in making payments, but it can also help you to improve your credit score. If you make the payments on time and use your card wisely, you can improve your credit score by leaps and bounds. However, if the card is misused due to negligence or fraud, your credit history and score can be severely affected. Hence, it is important that you avoid being a victim of credit card fraud.
Here are 7 tips that will help you to avoid credit card fraud:
1. Do not disclose your credit card info – You should never disclose your card number, security code, expiry date and other details of your card to anyone. These details can be used to make fraudulent transactions and so you need to make sure that no one has access to them. Even if you get calls from people claiming to work for your bank, do not disclose your card info to them.
2. Keep your card
Many consumers wonder is credit repair legal? YES, actually it’s your right as a consumer to make sure your credit report is accurate, so there is nothing illegal about it!
There is also a huge misconception that credit bureaus are some type of government entity, they are not. In fact your local bar is just as much of a government agency as a credit bureau. A credit bureau is a business pure and simple, they have one purpose, which is to make as much money as possible. They don’t want to help you- they just want to make money! Making sure you have a low score helps them make cash, how?
Credit bureaus are essentially a lead source for lenders. They get paid by lenders so they can run your credit files when you want credit. They also sell thousands of leads everyday to lenders all over the country.
You know those “pre-approved” credit card offers you get in the mail? Well those are directed to your mail box from information sold by the credit bureau to the credit card companies.
I’ll give you one
Why Credit History Is Important?
You are in need of an urgent loan and the bank is reviewing your application. Well, that’s procedure and every lender will do the same thing. But what they are also going to evaluate is how your past history has been, regarding the payment of loans. Have you paid your bills on time, how long have you been using credit, how many credit cards have you obtained in a specific period of time and what is the current amount of your credit? These are some common questions that your lender might ask you when you apply for a loan.
The lender will then use your credit background and the credit scores to help determine whether you are eligible for a loan or not. So having a good credit background is critical if you plan on applying for a loan in the future. You would need to work on your habits to ensure that your credit background remains good but if there are some flaws in your credit background, there’s no need to worry. Although they cannot be completely erased;
A credit rating is nothing but a number, which is computed by an approved credit rating agency. These days the masses are more conscious than that in the past. It is because of this risen awareness that jargon like credit rating and CIBIL score are heard often across almost every tier of the society. The rating or the number actually provides a hint of an individual’s credit worthiness. This score proves to be a crucial tool for conventional lending agencies while processing or approving a loan application of an individual. Before borrowing the money, creditors need to have an indication of the probability of default of every loan seeker who approaches them, for obvious reasons.
There is still a way of explaining the importance of credit score. Flatly, it tells a lender or credit institutions like banks, how likely is it that a borrower will repay a loan based on the individual’s
- Pattern of credit usage in the past and
- Loan repayment history
It is possible for every individual to check his or her own credit history. In order
An increasing number of people are choosing flexible working opportunities with their employers, as it enables them to successfully combine both their lifestyle arrangements and their family commitments.
However, many have found that when it comes to visiting their local bank branches while looking for a home loan, car and truck loan or even equipment finance, their local bank is still apprehensive towards them. And, it is because of their irregular working hours:
1. They don’t seem to fit into the strict lending guidelines set out by banks; and
2. They are not seen by banks as holding down a stable job with a regular income.
What the Common Unusual Employment Types?
Here are some of the common unusual employment types:
1. PAYG (pay-as- you- go) contractors
2. Casual workers
3. Part-time workers
4. Self-employed individuals
6. People with other forms of income
Type 1 – PAYG Contractors
PAYG contractors are normally employed via an agency or directly via their employer. This form
Having a credit card (or cards) may not necessarily mean you have bad debts, I’m sure in this day and age, most adults carry one – everywhere. However when used without planning or management, having just one card can mean a huge financial issue in the long run.
So here are the top 5 TIPS on how you can utilize a Credit Card to your maximum benefit so that it works for you.
1. Don’t Trust Self – Organize Direct Debits Arrangement
Once you get that “APPROVED” notification, make sure you get around setting up an account where you can easily have the Closing Balance direct debited from this account at the end of every month (or billing month). This account can simply be an everyday/ most basic account (preferably one that don’t cost a monthly fee) where you can budget your Credit Card spend to. This way, you will never miss any payment due dates, and will never set yourself in that trap of irrevocable-cycle of credit card interest repayments.
For example, when you first sign up for a credit
As you may know already, Chapters 7, 11, and 12 will remain on one’s credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy. Your ability to re-establish your credit after filing bankruptcy is better now than it has ever been. After your bankruptcy is discharged, you will start receiving a great number of solicitations offering to finance homes, vehicles and credit cards.
These are some of the following steps you should take:
1. Examine Your Credit Report – The very first thing you should do is obtain a copy of your credit reports and make sure there are no errors or inaccuracies in you report.
2. Pay Your Bills On Time, Every Time – Pay your bills and rent on time all the time. Remember your payment history is 35% of your credit score.
3. Bank Account – Start with a checking or savings account. Lenders may use this to determine
A Credit Information Report (CIR) offers an individual a numeric summary of their credit history. It plays a major role should an individual want to apply for a loan, or a credit card, as all banks and financial institutions run a CIR as part of their loan approval process.
A credit score constitutes a part of the Credit Information Report. Basis the financial information provided by lenders to Credit Information Companies, a score is determined. This score, based on a scale of between 300 and 900, is what is taken into account by a lender prior to offering a loan.
With Credit Information Bureau (India) Limited (CIBIL) a score of 750+ points is considered to be good. For a first time borrower with no previous track record, a score of -1 is displayed.
Different Credit Information Companies however, may have different scoring parameters. Most companies use the definition of ‘bad loan’ as a customer going more than 90 days past in 12 months.
Let us take a look at the factors that can negatively impact your CIBIL score.
Multiple loans and credit cards
If you think you have a good credit history, but you have never checked it out, you might be in for a nasty surprise. It’s not just keeping up your payments and being responsible with your borrowing that affects your credit score, there are some ways that you damage it that really shock you. Here are ten of those surprising things that could knock down your credit rating by a few points.
1. Having a company credit card
If your employer has given you a company credit card then that could be affecting your own personal credit score. Most corporate cards are now actually in joint names and that means that you are jointly liable for the credit. It also means that if your company pays their bills late, it will impact on your credit rating.
2. Using your debit card to rent a car
If you pay a deposit on a rented car with your debit card, then the car hire company will probably do a credit check on you. Every credit check that is made on you will take a
When applying for a mortgage, lenders will review the borrower’s employment, income, down payment, and credit history. Even if the borrower’s credit scores are acceptable, many lenders will look at the length and amount of credit established. If the borrower does not have an established payment history, the loan may be denied due to lack of or insufficient credit. The following sources could be used to establish your credit history and generate acceptable scores to obtain a mortgage.
• Secure Credit Cards – This type of card is offered by large banks (available online), local banks, and credit unions. A secure card usually requires a $300 to $500 deposit to open an account. The servicers of the secure card will report the payment activity to the credit bureaus just like a standard credit card. This is a great way to obtain new credit. The last thing you want to do is apply at numerous lending institutions and pile up inquiries (which will lower your scores). You may need a co-signer if your credit scores are below 500. After
HE FIRST THING TO DO
The first thing to do is to get a free copy of your credit report. By law you’re allowed annually one free copy of your credit report from the three major credit agencies: Experian, Equifax and TransUnion. It’s important to get all three reports from all three agencies to compare and contrast any discrepancies such as late payments, charge offs or delinquencies.
SET ASIDE SOME TIME TO REVIEW
Now that you’ve gathered all the information from the credit agencies, set aside some time to figure out where you went wrong with your credit and prepare to fix it. If there are any items on your credit report that are wrong or don’t look familiar, file a dispute in writing. Even errors such as misspelling of your name, social security number or address could mean your personal information is mixed up with someone else. The credit agencies are obligated to remove any errors in personal information, which will help increase your score. The most highly used credit score scale used by the largest banks and lenders is the FICO score and
When it comes to repairing your credit, it’s not something that can happen overnight. Credit repair, especially if you’re attempting to do it yourself, is a long game.
So, how can a new or current credit card help improve your score? There are two big reasons.
I call this the 30 x 30 rule. Only use 30 percent of your total credit because it accounts for 30 percent of your over credit score. I had personal experience with the power of the 30 x 30 rule. My credit utilization was at 32 percent because of an unexpected emergency. After I paid down just 4 percent of my total credit leaving me at 28 percent utilization my credit score rose by a staggering 31 points. I couldn’t believe it. Moving forward I now always keep my utilization below 30 percent. Although, as a best practice, I almost always pay all of my credit cards off at the end of the month. I like the freedom of not carrying a credit card balance.
With a new credit card, you have a
If you’ve ever run into financial trouble, you know how frustrating it can be when that information shows up on your credit report. Lenders use the information on your credit report to assess your risk as a borrower, and late or missed payments could make you seem like more of a risk. In addition, your credit score may be negatively impacted.
Luckily, you have some control over your credit score. Just like missing payments and not paying your debts can bring down your score, you can do things to build it back up. It takes some effort, but it is not impossible.
1. Understand your score.
The first step on the path to positively affecting your credit score understands what goes into it. A credit score is based on several different factors in your credit history, including your payment history, how much you owe, how much credit is available to you, the length of your credit history, and the types of credit you have.
However, two things influence your credit score the most: on time
A BOUNCED CHEQUE
A bounced cheque is one of those reports that will never show up on the traditional credit report. This however, does not make its potential implications on your credit score any insignificant. While your bank may not list your bounced cheque case with the credit bureau, you might still find the record listed due to a bounced cheque that was taken up by a collection agency, civil or criminal charges against you owing to it or writing it to a company which reports to the credit bureau.
The bank may also list you on their ChexSystem which means your ability to open a checking account with another bank is not only limited for some years duration but also your credit limit is reduced.
FREQUENT APPLICATION OF NEW CREDIT CARDS
Anytime you apply for a credit card or a loan, the lender performs an analysis known as the ‘Hard Credit’ inquiry which seeks to review your credit score profile. This exercise will determine your FICO credit score to a tune of 10% and the score sticks
What can you do if you want to give your child a head start by helping them to build good credit from the beginning? Can you open up accounts in your child’s name, build that credit, and still protect your child from potential identity theft?
Where to Begin
A gift of excellent credit is one of the best things that you can give to your child. There are a few ways to help your child create a great credit report including the following:
- Allow your child to become an authorized buyer on your credit card. Even though you will be responsible for paying for all purchases, you will help to build your child’s credit when paying off all balances in full. This is one of the easiest ways to show your child how to handle credit responsibly as well.
- If your child is old enough, you can cosign on a credit card for him or her. All people under the age of 21 must have a cosigner according to the law, so this is
Yet, if you’re like many Americans, just knowing that you have a credit score may be just about all that you know. This is a bad situation, and you need to fix it, sooner than later.
“Why?” you ask. Well, your FICO score is, for better or worse, like your financial DNA. So, while you hopefully know that you have a credit score, you may not know just how important that score is to your life and livelihood. Unlike DNA, however, your score isn’t a number that just takes care of itself. No, you need to take care of it.
Here are just three reasons for making sure that you do.
Your credit score is somebody else’s business.
That’s right: big business. Your score is at the mercy of three privately owned mega corporations, whose business is rating you and your creditworthiness. In fact, it is these companies, or credit bureaus, that create your score in the first place. The “big three” of these national credit bureaus are Experian, Equifax, and TransUnion. This credit – or FICO – score that