Your credit score defines you financially. Establishing and maintaining good credit will make your life infinitely easier. To establish a good credit score you must make your payments on time and in full every month. You can also improve your credit score by minimizing your debt. Learn more here about your credit score and what it means for you.
What Makes A Credit Score And How To Raise Yours
Consumers now have easy access to their credit reports and credit scores. However, now that they can access all the information, it's up to the consumer to understand what makes up their credit score, and to know how to improve the credit score. Paying on time, the length of your credit history, and how much debt you carry will help creditors determine whether they should give you more credit or not.
Credit Score Reporting Options
Under a law passed by the California legislature, all consumers must be given access to their credit scores by July 1, 2001. The other two credit reporting bureaus, Experian and Trans-Union, have said they will make available to consumers their own credit scores, which are not based on the FICO formula created by Fair, Isaac. Giving consumers access to their credit score, a number that lenders frequently said was "too complicated" for consumers to understand, represents a major breakthrough.
Pay Off Mortgage Early With Extra Payments
If you prepay your regular monthly mortgage payment it may be applied incorrectly to your mortgage loan. Mortgage companies usually see prepayments as extra money to go toward the principal of the mortgage loan. When the mortgage company does not then receive your mortgage payment at the designated due date they may think you're delinquent in making your mortgage payment. How can you avoid this? You can have the mortgage payment deducted automatically from your account to avoid mix ups.
When To Use A Non-Profit Credit Repair Service
Non-profit credit repair or budgeting services should only be used if you are on the verge on bankruptcy. Using a credit repair service when you aren't on the verge of bankruptcy can sometimes cause damage to your credit. Having debt reported as "closed by credit grantor" can be a black mark on your credit report. Finish the pay-back program, and then you can start to recover your credit.
A person used a non-profit credit repair service and now can not qualify for a car loan. Ilyce explains to use these services only if you are on the verge of bankruptcy.
Bank Underwriting Commitment Needed For New Home
A home buyer is having trouble securing financing for a mortgage and hopes a bank underwriting commitment may help. His home purchase contract has a no-financing contingency. There are several options for getting a loan but also warns against signing a purchase offer without a financing contingency.
Credit Card Debt: Pay Off And Improve Credit Score
After making numerous credit mistakes, can you consolidate your debt and improve your credit score? A debt management program probably won't help you pay off the debt and instead may lower your credit score. Ilyce's advice: get a second job, pay off the debt and improve your credit score.
Previous Marriage Results In Bad Credit
A newly married couple is confronted with significant debt from a previous marriage. They may be able to clean up her credit, but the husband needs to be careful her bad credit doesn't drag his down. He needs to keep his credit separate and not use his wife's credit to qualify for a home loan or credit card, until her credit is cleared up.
Transferring Credit Card Balance Is Smart Move
A couple wonders if transferring their credit card balance to a lower rate card will hurt their credit score. Transferring a balance to save money and paying off the debt is the best strategy. Transferring a balance shouldn't lower your credit score, especially if it means paying off your debt sooner and cheaper.
Bad Credit: Pay Off Debt And Get Credit Counseling To Improve Credit Score
If you've got bad credit or are struggling to pay your bills, get credit counseling, get help paying off your debt to improve your credit score. Your credit score is your key to qualifying to buy a home, so you have to get rid of bad credit by paying off your debt to improve your credit score. If you can't seem to get a handle on your bills, working with a credit counselor can help you pay off your debt, improve your credit score and turn your bad credit into good.