Credit Report Score: Work The Right Way

By Daniel Wesley

Your credit report score is an important determinant of your credibility, particularly when you intend to borrow to fund your housing finance needs or a car purchase. Depending on this three-digit figure the lenders will determine your credit limit and compute interest on your borrowing. Best rates are offered to borrowers with good credit report scores, since they belong to the low risk category, whereas those with bad credit report scores do not have an alternative but to resort to expensive borrowing. Generally, the lenders offer best to those scoring 700 or higher, which means that even if you are marginally below say at about 698, it could cost you many thousands dollars more than what you would have shelled out if you managed to score just those two points.

Let's demonstrate the above point with an example - the differential between 700 and 698 scores comes to around one-half percentage point. So if you obtained a $165,000 fixed rate mortgage for a tenor of 30 years, that differential half point is most likely to cost you above $19,000 by way of interest, considering that 6% is the lowest interest rate available. Further, if your credit report score fall below 675, the interest rate that you would end up paying will rise by another 1.2%. These are just averages.

Most lenders are nowadays practicing tiered pricing, wherein interest rates rise with the credit report scores going down. Each lender chooses its ‘break-points’ between the tiers. On one hand, there are some lenders who may increase their interest rates if your credit report score is below 300. On the other hand, there are others who will not charge higher interest rates until your credit report score is below 690 or so. This means that if you intend to stick to the same lender, and if the lender considers credit report score of 700 as his break point, then your credit report score improvement to 701 could be vital.

This example underscores the significance of not just doing what you can to better you credit report score, but also shopping thoughtfully, if you are looking at getting a mortgage loan. When it comes to choosing the lender, compare the options and finalize the one who offers you the best rate for a particular credit report score. The simplest way of improving your credit report score is paying all the bills on time. If implemented thoroughly and consistently this method can improve your credit report score dramatically over a period of time. You must also inculcate a habit of checking your credit report score annually, to see where you stand in credit estimation. This will enable better planning of your finances that is bound to strengthen your credibility.

Credit Report Score Want to buy a car or a house and looking out for ways to finance it? To a lot of you obtaining a loan for the purpose may seem like a simple solution. At times, it is not as simple as it sounds, because your bad credit report score may hinder with the prospects.

Keep Good Credit Rating - A Few Great Tips

By Clifton Randall

Keep a good credit rating by following these great tips. Arm yourself with a budget. Don’t spend willy-nilly. After you decide on your budget, make a list of the items that you would like to purchase. This will protect you from impulse buying and stretching your budget.

Most retail stores make their sales through impulse purchases. They will draw you with sale tagged items that you probably cannot pass by. Buying things out of the whim will add further strain to your budget and will lead to buyer remorse. Just say no to and stick with your list. Remember, it is your responsibility to keep a good credit rating no one else’s.

The battle between retail stores could mean big savings for you if you know where to look. With so many retail stores fighting for your business, it is easy to find a good deal. When purchasing from a sale always save your receipt. Merchants will generally credit you with the difference in price if you find the same item for a lesser price from a competitor.

Watch out for extended warranties! They are of no benefit to you other than peace of mind. According to a recent survey, fewer than 20% of products covered by extended warranties are ever brought in for repair. Floor salesmen usually make a higher commission when they sell extended warranties to consumers. As a result, you can expect a long drawn out sales pitch when you decide to buy that new microwave oven.

Do you own a computer? Have you tried online shopping? It is the new wave of the future. There are so many innovative websites. They offer customers the latest reviews and prices on everything from books to the newest gadgets. Use them for comparison shopping also.

These few credit strategies are simple and prudent. As simple as they are though, they can save you hundreds of dollars. They next time you go shopping try them.

Do you find it difficult to keep a good credit rating? Clifton Randall has worked in the credit industry for the last 25 years. Follow the link to this credit book that has excellent tips on how to keep good credit rating.

You Must Choose the Right Credit Card for You

By PAT WOOD

The question is which credit cards are right for you. Not all credit cards are the same. Some have a fixed rate, which simply means the APR doesn't change, or at least not that often. Most credit cards are open lines of credit, that you can use to make purchases. Most of them are unsecured, while a few are secured or prepaid. Prepaid credit cards are offered by a lot of major companies and act some what like a debit card, because you will need to open an account and your credit card will be funded by this account. These are great for people starting out with little or no credit or rebuilding credit. Low interest rate cards, are ideal for people with good credit that would like to take advantage of reduced interest rates. Some credit cards have an annual fee, while others do not. Some earn reward points. Store credit cards work similarly to regular credit cards, except there is no annual fee, and the card is only good for purchases at that particular store. These store cards are also effective at rebuilding credit.

You would be surprised at the overall number of people who just don't bother to compare credit cards before signing up for them. You should compare the different features, different benefits, and details of various credit cards. Find, compare, and read reviews before you decide. You wouldn't buy a car without comparing details or benefits, and you never buy a house without looking at several first. Just apply these same principles to credit cards.

Credit cards are convenient for customers and can be beneficial if used correctly. They are the perfect way to finance larger items while still earning points for everyday purchases. Just shop around first, and get the right credit card for you.

Pat Wood is the author and owner of the website http://www.best-creditcards.info She has been in the banking industry since 1987 and has written several articles on credit and debt

Credit Score Credibility How Important Is It?

By Anithasri S

Whether you are just getting into a new home or are looking for a tenth investment, your credit score is important.

This plays a large part in helping you to qualify for the amount of money that you want and need.

By keeping up with your credit score, and understanding how it will tie into your investment, you can be sure to benefit from the points that you have.

Before you get involved in a loan, you will want to check your credit score in order to make sure that you will have the ability to get the loan you want.

There are three major companies that rate your credit score, giving you points for good credit and how your history has related to the credit that you have.

The companies that you can get your credit score from are Equifax, Experian, and Transunion.

Credit scores will affect the loan you get because it helps you to be pre-approved for a loan. Lender companies will be more willing to work with you if you have a higher score. They will also have the ability to give you a higher amount of money.

This usually means that you are responsible with keeping up with your payments, have a good history, and how you have handled things such as overdue payments.

For some, this is the only way that loans will be approved. For others, other factors will be considered, such as financial stability, your income and job status.

Before even beginning the process of finding real estate, you should make sure that these are in the right place.

By adding up the points you can also add up the abilities that will take place with your loan.

Understanding the various elements of your credit score can help you to save money, time and to get approved for the loan that you want.

Simply adding it all together will be the place that you want to start in order to build your credibility.

Discover the secret's most real estate Professionals hope you'll never find out. For more information visit real estates.

Does Your Bad Credit History Still Haunt You?

By Jim Ferris

I would love to tell you to put your past behind you but when it comes to credit your past will be reflected on your credit history and your credit report. And that's how bad credit gets started. However, other contributing factors can well have an adverse effect on your credit and you'd best know what they are.

Most of your bad credit problems arise from bad management of your finances. Missing credit card payments, defaulting on your secured loan, declaration of bankruptcy are the primary red light factors that alert lenders to the fact that you are a bad credit risk. The frequency and pattern of such behavior in the financial arena mount up to give an unflattering picture of you in your credit report and will depress your rating.

Some of the other factors that can give you negatives against your credit rating are your marital status and whether you have children. Not much you can change there! It isn't just what you do with your money that comes up on your credit rating - you can have a rating that is less than perfect as far as a lender is concerned regardless of your payment history. But the best thing you can do is to first to make sure that the credit history being shown against your name is accurate. Check the report very carefully and get the errors corrected.

Regardless of how your bad credit rating arose, you look less attractive to lenders when you apply for a loan than someone with a perfect history. Most lenders will do a quick check of your rating when you apply for a loan. A rejection may occur on this first screening. The trouble with that is that each time you make an application, a turn down is recorded every time there is a rejection. The consequence is that your rating suffers accordingly. In view of this you may want to see if you can find lenders who will pre-qualify you without you entering the application process.

One thing in your favor is that a larger number of lenders are prepared to work with you despite bad credit problems in your history. Some firms even specialize in bad credit loans. The corollary is that they charge higher rates and make bigger profits. The international online companies are usually better set up to work in this area than are local banks and credit unions, so select your lenders carefully and don't make an application until you are fairly sure you will be approved for a loan.

You need to be prepared to do your homework well before you finalize on an application.The well known online lenders are set up to allow you to compare rates and costs and are well used to the questions you may have. Some of the brokers make this process even easier with comparison capability built in to their process. Since you have bad credit, you need to be smart in your shopping. Carelessness at this stage will not only cost you dollars and cents but may contribute to making a bad situation even worse. Be diligent and an educated consumer and avoid damaging your credit further by filing too many applications.

Jim Ferris is a seasoned advisor to those with poor to bad credit. When you face difficulty with financing and are looking for lenders who you can go to without fear for mortgages, consolidation loans and other high risk vehicles.You'll find the answers you need given by Jim and his colleagues at http://www.badcreditovercome.com

Are Variable Rate Credit Cards Better?

By Steve Szasz

When you shop for a credit card, you will be considering variable rate credit cards and fixed rate credit cards. A variable rate credit card uses the prime lending rate as its benchmark. Each lender then adds his own interest percentage and offers the variable rate credit card to his customer. Look at it this way – as soon as there is an increase in the interest rates of the Federal Reserve, the bank rates also go up.

The best situation to go in for a credit card with variable rates is when you notice that the prime lending rate dips steadily. That is when variable rate credit cards are a good option, since you enjoy the benefit of low lending rates.

However, don’t confuse the interest rate of variable rate credit cards with introductory offers made to you. These offers are only to attract you and expire after a specific period, say two months or four months. Subsequent to this, your variable rate credit card will attract a higher rate of interest. So don’t make these special offers a basis for your decision while looking for a credit card with variable rates.

Factors that could influence the interest rate of your credit card

When you are looking for a credit card with variable rates, your personal credit score and rating as well as your current income will influence the lenders’ decision. Accordingly you can look at standard cards, silver cards, gold cards, platinum cards and titanium cards – with the hierarchy of the card ascending from standard to titanium. So your eligibility for any of these variable rate credit cards is directly related to how good your credit history is, since interest rates are highest for standard cards and lowest for titanium cards.

In a variable rate credit card, the interest rate is likely to fluctuate periodically. Some credit card issuers can tell you how low or how high the interest rates are likely to vary so that you can decide upon your variable rate credit card based on this. If this fluctuation is still advantageous to you, as compared to a fixed rate credit card, you may consider a variable rate credit card.

No credit card is immune to interest rate fluctuation. Since variable rate credit card interest rates are based on the prevailing market rates, you’ve got to watch out constantly to see if it is a good option for you; if not you may want to look for another variable rate credit card where the issuer gives you a better deal. It is a very competitive market out there.

Steve Szasz is a publisher of numerous finance related articles and webmaster of 6 finance themed websites on loans, insurance and investment. His website url is called Credit Card Company

Tips For Cleaning Up Your Credit Report

By Collins Deconle

Many people have some form of bad credit. If you have negative items on your credit report, you will find it difficult to obtain loans. In today's society you need good credit record to buy a car, purchase a home, and get a credit card and so on.

Credit bureaus, also known as, credit reporting agencies, collect and sell information about consumers. They collect information on you and then allow others to view it when you apply for a loan, credit, apartment, job, and so on.

Credit bureaus get their information about you from all creditors that have done business with you. If you defaulted, the reports are sent to credit reporting agencies for review.

Getting a copy of your credit report is the beginning of repairing bad credit. You need to know what your credit report says about you. So contact the major credit bureaus and get copies of your credit report.

When you receive your credit reports from all of the major credit bureaus, review each report carefully. Derogatory information may appear on your report without your knowledge. If you find incorrect or inaccurate information or anything on your report that is worth disputing, contact the credit bureau to file a dispute.

If you dispute an item, it must be reinvestigated. If the credit bureau cannot verify the truth of an entry within a reasonable period of time, the negative information must be deleted from your report.

When the reinvestigation is complete they must provide you with a free copy of your corrected credit report.

Also, if you request, they must send your corrected credit report to anyone who received your report in the past six months. Job applicants can have an updated copy of their credit report sent to anyone who received a copy during the past two years for employment purposes.

If you have bad credit, don't ignore it, rather find out what you can do to erase negative credit information from your credit report.

Collins DeConle is the owner of http://www.aboutcreditrepairhelp.com Visit his website and you'll discover a wealth of resources that can help you rebuild your credit.

How To Find The Best Credit Rates

By Shelley Green

The best way you can find the best credit rates for your cards is do research. The fact that you are reading this article means that you have started your research already, so you are already on your way to getting the best credit rates for you. You need to compare various credit card companies to discover the best credit rates and those that will benefit you the most.

Comparing the best credit rates can help you make the best choice for you. There are also other factors to think about when choosing a new credit card, these are factors other than the best credit rates, such as other charges and fees. You must asses your personal needs and think about how you are planning to use your new credit card.

The most ideal credit card for you will be the one that will work best with your spending habits and your personal needs. Many independent companies offer expert advice and also great tips about all different aspects regarding credit cards and the best credit rates. There are so many different credit cards available on the market today.

They are all offering various deals and what they say is the best credit rates. These are all being offered right now and you only have to look in the shops, magazines, television and internet to see the world plastered with advertisements for credit cards. You must remember to choose the best credit card with the best credit rates for your personal needs. It is advisable to have as many facts as you can so that you can decide wisely about the best credit rates for your new credit card. Sometimes looking for a new credit card can me like searching for a needle in a haystack and it can be really quite confusing.

To make the best credit rates easier to understand you are able to contact a credit card agent or you could call up their customer service representative. These people should be able to give you the information that you are looking for. The information will help you to compare the best credit rates among the bad. There are also comparison services available for choosing credit cards. Trying to find the best credit rates and best credit card deals make take some time, but it will be worthwhile in the end, if you get the best card for you it is likely to save you a lot of money in the long term.

Shelley Green is the owner of http://www.loans-click.com, a site that specializes in Loans including tips and advice on different loans and also other recommended sites for loans.

Is Bad Credit A Bad Word?

By Kate Ross

What Does “Bad Credit” Mean?

There is a difference between a being swindler and being a person who, at some point in his life has failed to repay some credit, or has incurred in excessive refinancing, jeopardizing his reliability. To have bad credit just means that a bank will have to be more careful about granting you a loan, whatever kind it may be, than to other customers with perfect records.

So, How Do We Overcome Bad Credit?

Let us suppose you have “Bad Credit”, and feel that you are not elligible for the loan that you need so much. Well, to begin with, there are many banks that are willing to repair your credit. This is done by granting you a small amount so as to get you on track again. As you respond to your payment obligations, you will be offered a slightly higher amount, testing your responsibility and financial capacity. They will ask you for some documentation, of course, but… who wouldn’t?

In Other Words…

In other words, everybody deserves a second chance, everybody is elligible for some kind of loan. Just be sensible, put your feet on the ground and set out to get the necessary credit repair, so you can once again be a part of mainstream society, so to speak. There are hundreds of options on line to choose from, so you’ll always find more than one that is right for you.

What Must You Expect From a Bad Credit Loan?

In the first place, they will ask you for some documentation, so as to know who they are speaking to. They will require a check stub. This will tell them exactly how often you receive your paycheck. They will also ask you for your bank account number and credit card statement. You see, you’ve already told them that you have bad credit. What they want to know through the documentation is how much they can grant you the first time, so as to start your way back to reliability.

Bad Credit Is Just That: Bad Credit

Certainly you’re not a “bad guy” if you have bad credit. You’ve just made a mistake and you must show that you are willing to amend this. All you have to do is take the opportunity to make it known. It will be the beginning of your definitive progress, if conveniently used. Probably you could consult with a financial advisor, who could even assess you towards a profitable business. All you need is to take the decision and set off to be a winner in life. That’s all it takes to get out of bad credit. Just click on your computer mouse and start a new life!

Kate Ross is a professional consultant at Speedybadcreditloans.com Smart tips and interesting articles on this subject and other financial related topics can be found in her website