Credit « credit report comparison

September 28, 2009

How To Raise Your Credit Score – What Factors Affect Your Credit Report And Your Credit Score

Filed under: Credit — Tags: Applicatio, Bearings, Credit History, Credit Inquiries, Credit Worthiness, Debt Credit, Disbursement, How To Raise Your Credit Score, Irregularity, Loan Providers, Longevity, Regularity, Rejection, Timely Payments, Viability — admin @ 3:48 am

Linda D. Gilbert asked:

Credit reports showing the credit score at the bottom, are issued annually, under normal circumstances. The credit score spanning from 350 to 800 is a mirror of the scorer’s financial functions reflecting his credit worthiness.

The varying types of financial functions involving credit and designated with certain basic parameters according to the ability to influence the credit score, are the fundamental factors helping to determine the resultant score. The factors for calculation of credit score include duration of the credit and comparison of its sum with the age of each of them, lifespan of the existing debt, credit history, and fresh credits availed, kinds of credit, inquiries from loan providers and acceptance/rejection of request for credit.

As high as 35% of the total credit score is dependent on history of the credit received, which is examined by evaluating the transactions of each account to assess the borrower’s viability. The telling effects of payments missed or delayed along with pleas of insolvency will have negative bearings on the count of the borrower’s credit.

30% of the total credit score is added by assessing the performance relating to availed unpaid credit. A disbursement of any long term credit in full or part with regularity has the potential to step up the score on the one hand, while opposite effect too can be experienced in the event of irregularity. A fresh loan without a past of any payment too can attract negative markings.

15% of the total credit score is influenced by points apportioned towards lifespan of the availed credit. The longevity of the credit with regular and timely payments can enhance the score by receiving favorable markings. On the contrary, currently availed credit without any schedule of payment can effect negatively.

10% of the total credit score is derived from recent requests to loan-providers and the acceptance/rejection of these applications attract positive/negative markings respectively.

10% of the total credit score is the final contribution forwarded by the types of unpaid credits being availed by the borrower. Credit having a long life with regular doses of payment schedule is due to bring positive markings. Revolving credits of credit cards have a feature of getting negative markings if most of sanctioned limit is withdrawn and the monthly payments are not above the minimum. Likewise, if only 25% of the sanctioned limit is used by the borrower and he makes full payments of the monthly invoices, the credit card holder can reap the benefits of some points.

A debtor having a count of 700 on credit report is deemed a sound borrower worthy to receive a credit at low rate of interest and without collateral. Scores falling below the optimum will attract increased rate of interest.

Every credit report being a reflection of past performance, both of the long-term and the short-term variety, is variable enough to be rectified for better by the financial functions of the short- term which would have long term effects on the score. As a non-performer must have realized his mistakes by now, he is well-advised to commence performing point-creating actions and also abstaining from point-destroying actions

Repaying old dues in full, budgeting expenses and seek extra source of income are some of the examples of the actions to be implemented for better results on the credit card. The credit report if found erroneous should be referred to the issuing agency with supporting documents, who would scrutinize and if confirmed by the creditors, would send a corrected report at no cost after effecting them in their records.

Receiving financial aids from friends and kin to settle debts can be followed by a visit to a credit advisory firm, in succession, to help achieve the desired credit count.

The debtor should strive to reach an optimum count of 700 on his credit card. One should not forget that Expedia, TransUnion and Equifax are the three credit agencies issuing copies of credit reports without charge. Even though one is enough, it is better to receive all three variants of the reports to assess subtle details.

Nicholas

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August 23, 2009

Recover Your Credit After Bankruptcy With a Loan

Filed under: Credit — Tags: Bankruptcy Loans, Credit Bureaus, Credit Cards, Credit History, Credit Report, Delinquencies, Getting A Loan, Getting A Loan After Bankruptcy, Late Payments, Lender Report, Loan After Bankruptcy, Loan Application, Many Things, Period Of Time, Six Months — admin @ 4:42 am

Amanda Hash asked:

Once you have gone through a bankruptcy process you can be sure that your credit will be ruined. In order to raise your credit score and improve your credit history there are many things you can do. Among them, one of the most effective ones is to obtain a bankruptcy loan and let the lender report the timely monthly payments to the credit bureaus.

However, getting a loan after bankruptcy is not an easy task and it requires a lot of information to understand which steps you need to take in order to prepare yourself for a loan application after your bankruptcy has been discharged. This article intends to provide some guidelines as to this matter and help you obtain your loan.

Prepare Yourself For Applying

In order to apply for a loan after bankruptcy you need to think ahead and prepare yourself for the application. You need to start at least a couple of months prior to applying (six months is better). Within this period of time you need to make sure that no delinquencies are recorded into your credit report as your recent credit history will be verified even if the lender already knows that you have gone through a bankruptcy.

For most lenders, recent credit history implies the last six months accounted in your credit report. Within this period there must be no late payments, missed payments or defaults on your loans, bills or debt balances. You need to try to keep your credit cards and lines of credit (if you have) with a small or null balance in order to show the lender that you are making an effort to improve your credit behavior.

Loan And Credit Recovery

Bankruptcy loans have an additional benefit apart from providing finance. These loans can help you improve your credit score and history. Since each timely payment of your loan gets recorded into your credit report, it will help you build up a good credit history and enhance your credit score so you can recover from bad credit sooner.

You need of course to avoid late payments and missed payments as otherwise you will affect your credit negatively. With patience, your payments being reported to credit bureaus sooner than later will get you a significant improvement in your credit and you will be able to obtain financing with more advantageous terms than before.

Where To Apply For A Loan

Knowing where to apply is a big part of the process of obtaining a bankruptcy loan. The smartest way to go is to search the net for bankruptcy loan lenders. You can use whatever search engine you prefer and you will soon be presented with many results. Just make sure not to go for the first offer you receive as you should do some comparison prior to applying.

Just request loan quotes from as many lenders as possible and compare what they have to offer to you. Then, once you have decided which loan you prefer, you can fill the online application or apply by other means. The lender will soon make contact with you and let you know if you where approved.

Adam

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August 19, 2009

if i signed up for a credit card online but then immediately cancelled it, does that hurt my credit report?

Filed under: Credit — Tags: Cards, Credit Card, Credit Report, Credit Score, Good Reason — admin @ 3:46 am

NO asked:

i applied for a credit card online but the limit was way to low in comparison to my other cards. i cancelled it right away but im afraid it will make my credit score look bad due to the inquiry for no good reason. what do you think??

Andrew

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August 17, 2009

What’s Your Credit Score? Not Knowing Could Cost You

Filed under: Credit — Tags: Accurate Prediction, Car Loan, Charge Offs, Credit History, Credit Information, Credit Reporting Act, Credit Score, Fair Credit Reporting Act, High Interest Rates, Home Loans, Major Credit Bureaus, Payment History, Thousands Of Dollars, Three Major Credit Bureaus, Twelve Months — admin @ 6:52 am

Rebecca Spitzer asked:

When you go online and apply for a credit card, how can you get your results in a matter of seconds? The answer is your credit score. This little number packs a big punch and can make the difference between getting approved for a car loan, a great rate on your mortgage, or getting turned down for everything credit related that you apply for in life.

The credit score ranges from 300 to 800. Your specific score is result of a special formula, called an algorithm, which compares your credit information to the credit information of tens of millions of other people. The number that they get as a result is a very accurate prediction of how likely you are to pay your debts.

This may seem unfair, but your credit score is based on a number of factors. They look at your payment history for every listing on your credit report, the total amount of outstanding debt you have, and the length of your credit history. They also check to see if you have had any derogatory credit information, such as bankruptcies, charge-offs, and collections. And finally, they calculate how much credit you have used in comparison to how much credit you have available.

The Fair Credit Reporting Act has made it possible for you to get a free copy of your credit report every twelve months from all three major credit bureaus. Unfortunately, your credit score is not usually included in this free information. But for additional five or ten dollars, you can get your credit score included.

Knowing your credit score can help you get a better picture of what the information on your credit report means. For example, a credit score of 720 or higher will get you the best rates on home loans. And a credit score of below 500 will cost you hundreds, perhaps thousands of dollars in high interest rates, if you can qualify for a loan at all.

If your credit score is very low and you do not have any significant derogatory entries on your credit report, it’s time to take a good look at that report and find any inaccuracies. Be sure that all the debt you have paid off shows up as a zero balance, and double-check your available lines of credit

Jamie

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August 15, 2009

How Credit Score Works For You

Filed under: Credit — Tags: Absence, Billing Period, Credit Score, Credit Worthiness, Debts, Instances, Interest Rates, Lenders, Loan Application, Loans, Matter Of Fact, Piles, Precious Assets, Quite Some Time, Score System — admin @ 7:00 pm

Paul Hata asked:

It is natural for us to resort to credit when we are in great financial need, yet we are running out of cash. Instead of pawning our precious assets in exchange for the amount that we need (which is commonly minus the applied interest), we can apply for different types of loans with convenient terms of payments and affordable interest rates.

In addition, there are also instances when the lender provides rebates and other forms of financial incentives to their clients, thus making credit an advantageous alternative when you are in great financial need.

However, there are individuals who do not understand the limitations that must be followed when resorting to credit. Since credit allows them to make purchases in the absence of cash, they tend to spend more than what they can afford to pay later on, thus resulting to piles of debt at the end of the billing period. Though credit limit is strictly enforced, there are individuals who manage to slip away from their credit limits, thus they are acquiring more debts until the time comes that they cannot repay such debts anymore.

It is important that you are aware of your limitations when you avail of credit when making purchases or payments, especially with regards to their credit score system. There are many individuals who are practically ignorant of what credit score system is. As a matter of fact, they do not even know what credit score is and how it works. The credit score system has already been in effect for quite some time now, and many lenders use this as one of the basis to determine whether your loan application is accepted or rejected.

How can credit score system works for your financial needs? To start with, let us define first what credit score is, and understand the system itself as a whole. Keep in mind that it is a vital report that you must be aware of that is, if you want to have your loan application to be accepted.

Credit score is a statistical manner of assessing the credit worthiness of a borrower. It possesses every inch of information about your credit experiences your loan paying history, the accounts that you own, the age of each accounts, late payments that you have made prior to your latest loan application (if there is any), and existing outstanding debts that you failed to pay (if there is any).

The credit score system works through a statistical method which is used to make comparison of your credit profile with other borrowers with similar profiles. Points would be awarded for every factor that manifests debt repayment. These points will be summed up, and it will tell how likely you will be able to make the payments when it is on due. This will now be your credit score a three digit number.

Each time you will borrow or use credit for purchases or payments, you will get a credit score which shows how you managed your past credits. Lenders rely on credit scoring system that gives grades to your credit performance. For instance, once you have an excellent credit performance on your previous loans, you will be able to attain a credit score of 600 or above. In case your credit rating is ranging from 500 to 535, expect that you will experience difficulties of securing loans with affordable interest payments.

Your score is recorded in your credit report, which is managed by credit reporting agencies such as Equifax and Trans Union. Your credit report is divided into four major sections, which is the following:

- Personal history;

- Identifying information;

- Inquiries; and

- Public records.

A good credit score needs continuous hard work. Thus, it is important that you understand what you are dealing with to avoid complications later on. Keep in mind that it is your limitation in terms of using credit and you are bounded to stick with it. Or else, suffer the adverse consequences.

Robert

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August 11, 2009

What is wrong with my Vantage credit score in comparison to my FICO credit score?

Filed under: Credit — Tags: Experian, Fico Credit Score, Fico Score, Mortgage, Vantage Credit Score, Vantage Score — admin @ 1:46 pm

unarica27 asked:

I have purchased both of these reports on the same day. My Vantage Experian score is 677. However, my FICO Experian score is a 663. I thought that my Vantage score would be much higher. This means that my FICO score is fair (and has potential) and my Vantage score is is terrible. Can someone please explain this to me? I really want to obtain a mortgage. THANKS!

Cindy

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August 9, 2009

Credit Card Debt, Giving A Credit Rating

Filed under: Credit — Tags: Assistance Group, Credit Card Debt, Credit Inquiries, Credit Reporting Bureaus, Credit Score, Credit Scores, Credit Scoring, Gathering Information, Low Interest Rates, Monetary Transactions, Negative Impact, Propensity, Quick Response Team, Wealth Accumulation, Worthiness — admin @ 4:28 am

Stephen Campbell asked:

Numbers of credit reporting bureaus or agencies gather information on the subject of the debtor’s credit history or files from reliable private and public credit data sources. They also get data from the creditors who extended the loan to the debtor.

Accordingly, the information is divided into five sets or categories with the corresponding percentages which reflect the significance of each category in the final computation of scores for your credit card debt, namely: (1) Owed Amount–30%; (2) History of Payments–30%; (3) Duration of Credit Record–15%; (4) Nature or Kinds of Credit Currently in Use–10%; and lastly (5) Latest Credit Inquiries –10%.

In general, these credit bureaus compute the debtor’s credit score using a three figure number which range from 300 up to 850. The higher the credit score, the better opportunity of acquiring low interest rates for the loan being applied for and a better opening for wealth accumulation.

The industry of credit-scoring has been making different opinions and wide-spread reactions to the public. The consumers fear that credit-based rating or scoring will pose a negative impact or unjust rating to them and will affect their economic standing and other monetary transactions.

Some credit bureaus justify their reason of gathering information and making credit rating or scoring. For them, their work is to help lending businesses formulate efficient and effective economic decisions.

Others create a distinction between the credit-based scores of insurance companies which predicts the loss of propensity and the credit scores which is just to predict the worthiness of a particular person to pay.

Each of different companies should develop its own credit-base rating or scoring algorithm to serve better the consumers. Below are some of the techniques adopted in credit scoring:

– Forming a Credit Assistance Group/Team–they are the quick response team that will give assistance to consumers calling through toll-free numbers. The public would certainly like to know the effect of credit records or rating to their application of loans, mortgage, employment and/or insurance transactions.

Also included to the team’s responsibility is the making of reports on the personal credit insurance of the consumers or client. This report will show the consumer’s variable score and the comparison with the aggregate rating or score

–Revising a New Method in Credit Scoring- this simplified way utilizes nine variables instead of the usual sixteen. Their algorithm will calculate the credit scores by assigning 100 as a foundation score.

–For those consumers with no credit records or whose credit histories are lacking, they will establish a program which will particularly cater to these groups of creditors to somehow uplift their credit ratings.

Andrew

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August 4, 2009

Credit Cards Too Complex for Consumers

Filed under: Credit — Tags: Balance Transfer, Banks, Borrowers, Boxes, Card Issuers, Cases Result, Confusion, Consumers, Credit Card Deals, Credit Cards, Minimum Repayment, Presenting Information, Standardisation, Unpleasant Surprises, Vested Interest — admin @ 2:01 pm

Isla Campbell asked:

Recent headlines have criticised credit card companies for not making their terms easily enough understood by consumers, who claim harsh rules laid down by banks and card issuers are buried away in the small print and don’t become clear until it’s too late. For instance, millions of consumers every year take advantage of 0% balance transfer and purchase credit card deals as a way of cutting debt in order to mend their financial problems.

Sadly, many of these consumers do not realise that, despite the 0% interest rate, they still need to pay the minimum repayment each month, typically 2 or 3% of the balance. Instead they think ‘interest-free for 12 months’ means not having to pay anything for 12 months. As a result, when they receive their first monthly statement they pay nothing, thinking everything is in order.

This oversight will in most cases result in the credit card company immediately imposing a fee and raising the interest rate to a significantly higher level, known in the credit industry as ‘default and lose’.

Confirming this disconcerting trend, The Office of Fair Trading (OFT) last week published a report entitled ‘Credit card comparisons’, available for free from its website, saying the market remains too complex, unclear and difficult for borrowers to compare deals.

Among its recommendations to rectify the confusion the OFT calls for standardisation in presenting information, such as summary boxes containing the interest rate and other payment information about the card, on every monthly statement in order to be more user-friendly and avoid unpleasant surprises for the cardholder.

According to the survey, the most common reason for consumers choosing a particular card is a recommendation by their bank, which of course has a vested interest. In order to get a better idea of which card is right for them, there are several websites that allow consumers to compare credit cards from the comfort of their homes. Not shopping around before committing to a credit card is quite possibly throwing money down the drain, something especially hazardous to consumers already struggling with existing debt.

John Fingleton, OFT Chief Executive believes that it is essential that consumers are provided with the correct tools in order to make comparisons between credit cards more easily; and with some of the recently announced recommendations receiving widespread support from industry bodies including the FSA and APACS, it is hoped these new measures will ensure more transparency in the credit card industry and help find consumers the right credit card for their needs.

Clarence

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July 28, 2009

The Dangers of Dormant Credit Cards

Filed under: Credit — Tags: Credit Card Account, Credit Card Companies, Credit Card Fraud, Credit Card Providers, Credit Fraud, Dim View, Dormant Account, Emergencies, Fraudster, Fraudulent Activity, Identity Fraud, Possession, Target, Unnecessary Fees, Victim Of Fraud — admin @ 10:58 pm

Reno Charlton asked:

Many people in the UK have more than one credit card, and in some cases people decide to use one of their credit cards for regular use and another for emergencies only.

However, it is important to remember that having a credit card account that lies mainly dormant can actually be something of a risk, and could result in you being charged unnecessary fees by the credit card providers or even becoming a victim of credit card fraud.

Whilst some people think that having a credit card for emergencies only is a good idea, credit card companies tend to take a dim view of this. Why? Because they have to still deal with the administration of the account even though the customer is not really using the account. As a result of this some providers have started applying fees on accounts that are rarely or never used.

However, this is not the main problem for people that do not use their credit card accounts very often. The main risk is becoming the victim of credit card fraud, as many fraudsters target dormant credit card account, safe in the knowledge that the fraudulent activity probably won’t be picked up for some time because of the fact that the account is rarely used.

Some people even think that if they cut up the credit card on a dormant account this will stop them from becoming victims of identity theft and credit card fraud. However, much of the fraud carried out using credit cards is CNP or Card Not Present fraud, where the fraudster does not need to actually have possession of your credit card in order to conduct fraudulent activity. You actually need to close the account altogether in order to stop the risk of becoming a victim of fraud.

Industry officials recommend that those with a credit card that is not used very often try to use the card at least once per month in order to keep it active. This can help to ensure that you are not charged for nothing by the credit card firm. However, more importantly it will ensure that you receive a statement from the credit card firm each month, which you can then check to ensure that no suspicious activity has been carried out using your card.

It’s also important to know the level of credit card security your issuer offers you, from fraud guarantees to active fraud monitoring and even identity theft protection services.

It can also help to use free credit report services, such as Experian or Equifax. For a small monthly fee (usually less than £10) they will monitor your entire credit file and alert you to any changes such as newly opened accounts, closed accounts, address changes and more. These services can help to prevent credit card fraud and identity theft.

Francis

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July 26, 2009

Business Credit Card

Filed under: Credit — Tags: Business Credit Card, Business Credit Cards, Business Credit Report, Business Finance, Businessmen, Cash Flow, Charge Cards, Due Date, Dun, Equifax, Experian, Medium Sized Companies, Personal Finance, Time Credit, Withdrawals — admin @ 12:52 am

Amit Kothiyal asked:

Want to build your business’s credit? Then a Business Credit Card can help you get credit for your business. Normally, businessmen use them to set up their businesses’ credit. Business credit cards are quite similar to traditional, personal credit cards, but they have dissimilarities in the following ways:

1) These Cards are issued in the name of the company, not the individual; therefore, the company, rather than the individual, is held responsible for all debts.

2) There may be limitations on what can be purchased on them and there might be restrictions on withdrawals from ATM’s.

3) Itemized credit card reports allow companies to track their expenditure.

4) Complimentary features like insurance and banking discounts.

In case you want to discover the type of credit offers you are receiving on your existing card, you have to figure out the credit agency to which they report. The standard credit agencies which credit card offers report to are: Business Credit USA, Equifax Business, Bradstreet, Experian Business, and Dun. If they report to anyone else then it will be based on your personal credit.

Apart from initiating a business credit report, this card does have other benefits, such as your ability to keep separate records for personal and business finance. A few of the other benefits offered by these cards are:

1) More secure in comparison to carrying around a large amount of cash.

2) Less expensive than using checks.

3) Controlled spending.

The two main types of business credit cards are Charge and Credit. Charge cards do require you to pay the full amount before the due date, otherwise heavy charges will be added onto it. These kinds of cards are suitable for large companies where cash flow is sufficiently high enough that the payments will be made on time. Credit cards allow you to pay the minimum amount due on them, but charges interest on any amount left outstanding. This could be a better option for small to medium sized companies where cash flow is irregular.

Timothy

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