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 business credit report can be started much the same as a consumer report commonly is, with small credit cards.
The business can be approved for small credit cards to help them build an initial credit profile.
These types of initial cards in the business world are commonly referred to as “vendor credit”.
Net 30 terms are common with most vendor credit sources. This means they will give you credit on “net 30” terms, giving you 30 days to pay the bill you owe in its entirety.
Some companies will require you buy their products while others won’t.
Some companies will have you pay for your first couple of orders, others won’t.
Some companies report your credit very quickly and it reports quickly, some don’t.
Look out for all of these things when applying with vendors.
Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it.
Most people you speak with at the credit issuers don’t even know
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
If your credit history has put you in the position where you are not able to obtain a regular credit card, try to apply for secured cards. If you get a new card and use it responsibly, a new card can help you fix your credit.
If you have credit cards with a balance that exceeds 50% of your credit limit, pay these down right away.
Opening an installment account can give quite a better credit score and make it easier for you. You can quickly improve your score by properly managing these accounts.
You can dispute inflated interest rates. Creditors are skirting aspects of law when they try to charge you exorbitant interest rates. How ever you did sign a contract saying that you agreed to pay off the debt. You need to be able to prove the interest rates are too high if you want to sue your state’s statutory limits.
Make sure you thoroughly research into any credit counselor before you do business with them. Although some can be quite legitimate, other credit counselors are not honest and upfront with
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
One of the best ways to improve your chances of getting a home loan is to improve your credit score. It is because better credit scores may give you access to better interest rates and more beneficial home loan products.
Here is a list of some quick tips to help you get the best possible credit score. While there is no guarantee that all of these options will immediately boost your credit score, they may help you establish habits that will strengthen your credit score.
Show you can pay your bills on time, every time
Lenders/credit providers will want to see that you can repay a home loan on time. So, here is a list of bills that you should pay on time, every time:
>> Your credit cards;
>> Your rent;
>> Your medical and utility bills; and
>> Any other service that may use a collection agency for the recovery of delinquent accounts.
If you miss a payment date by a few days, call the service provider immediately to make the payment, and don’t be afraid to ask
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
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
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 six months of on-time payments with a secure card,
A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90” day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full. So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.
You can get products and services for your business needs and defer the payment on those for 30 days, thereby easing cash flow. And some vendors will approve your company for Net 30 payment terms upon verification of as little as an EIN number and 411 listing.
Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it. Many don’t even know you can get approved without it.
Most credit issuers will approve you without your SSN if your EIN
Keep your credit card usage under 30% of your overall limit.
Ask your financial institution to increase your credit limit without performing a “hard inquiry”.
Increasing your credit limit while maintaining or decreasing your balance will often improve your credit score.
If you have a number of accounts with small balances such as $20 or $30, pay them off right away.
The bureaus usually take into consideration how many of your credit cards carry a balance; having too many small balances can count against your credit score.
Ask a relative or friend with an excellent payment history to add you as an authorized user on their credit card, especially if they have a zero balance or 0% financing.
Limit the number of loans and credit applications you apply for in a single 6-month period. The only exceptions to this rule are home, auto, or student loans.
The bureaus usually don’t mind if you’ve applied for many of these types of loans, even within a two-week period.
Use your old accounts once in a while to keep them open; creditors sometimes
THE 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
Almost one-third of users experience credit card fraud and in 2010 close to 11 million adults experienced identity theft, with 43 percent of reported theft linked to credit card fraud. As of 2010, estimated showed that 11.1 million adults are victims of identity theft each year.
Those are staggering numbers and are the reason that credit card safety is an ongoing necessity for all of us. During holiday season even greater vigilance is necessary for many obvious reasons. Most security actions fall into the common sense group, but with busy lives we often end up tasking without adding a good dose of forethought.
Following are my top ten list of easy, fast habits anyone can build to support credit/debit card security.
- Never write down your PIN number and make sure to cover the keypad when entering on any machine. For added secure, do not use a PIN number tied to personally identifiable information. A quick Google search with your name may shock you about your personal data floating around on the web.
- Sign the back of your card upon receiving it and destroy old cards immediately.
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
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
The following are some tips that can help individuals to repair credit on their own:
Request a 3-Bureau Credit Report
The first tip is to request a full credit report to check exactly where you stand. Everyone is entitled to one free credit report a year from the 3-major credit bureaus, which are Equifax, TransUnion and Experian. The credit report does not have the credit score, but there are companies that can help you calculate it. The credit score ranges between 300 and 840, and a credit score of 740 is considered fine. A credit score of less than 600 is not so good, and may attract higher interest rates if you ever try to get a loan. Knowing where you stand helps you create a plan to recover your financial footing.
Check for Errors
Analyze the credit report to check for any errors. If you find that there is any discrepancy, such as credit cards you do not own or major purchases you did not make, record the error and dispute it. To do this, you need to highlight the error,
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 the perfect opportunity to help your child build
A person’s FICO credit score isn’t something that should be taken lightly. Obtained through a system called credit scoring, it greatly determines the decision made by creditors about whether or not to give you credit. A credit score may also be utilised to determine the terms and rates of credit advanced to you.
The score is arrived at after the evaluation of your credit report. Some of the elements that make their way to the credit report include the number, types, and ages of accounts you hold, bill paying history, whether you pay your bills on time, and the outstanding debt. Creditors then use a statistical program to compare your loan repayment history with that of consumers who have similar profiles.
Generally, the scoring system attach points to every factor that has the capacity to predict the person most likely to repay a debt. The credit score, which is the total number of points, predicts the creditworthiness of a person. Ideally, it represents the likelihood of a consumer repaying debts when they fall due.
Why is a good credit important to you as a consumer? As
Cashback rewards are incentive programs offered by companies to encourage the use of credit cards issued to users. The programs have a percentage of money spent paid back to card holders; the rewards can be in points, miles or monetary amount. The monetary amount benefit is what is referred to as a cash back reward. Different credit cards offer different cash back levels in relation to the purchase made. Budget conscious card holders can really benefit from the rewards and there are a number of ways that you can increase the rewards that you get with every purchase.
1. Right use – Considering that different issuers offer varying incentives for the use, it is best that you find out as much as you can about credit cards available to you and what they can fetch you with every purchase. With the right credit cards, you will be able to plan purchases accordingly to make the most of the cashback offers.
2. Cashback website sign ups – There are very good websites that offer the cash back programs providing rebates for every use of their links to make