By financen | July 4, 2017 - 4:36 pm - Posted in Credit, Credit report, Credit Score

Credit cardDid you know that all the financial decisions you make today, could affect your ability to buy your own home in the future? And did you know your credit score plays a key role in this? It’s true. But despite this, many Americans have never even looked at their credit score or know what it is. In fact, four in 10 people have actually never checked their credit score before. That’s according to a survey by Chase Slate Credit. However, lenders view credit scores very seriously. In fact, a low credit score can stop lenders offering you the most competitive interest rates. A credit score takes into account your history of making bill payments on time and your spending and borrowing habits. But even if your credit score is poor, there are simple things you can do to help build it up.

Take out a personal loan

You may wonder how being in more debt could increase your credit score. But according to AAACredit Guide (http://aaacreditguide.com/personal-loans/best-personal-loans-for-good-credit), the trick is to make sure you make all of your repayments on time, without ever missing any. By taking out a personal loan and always making your repayments on time, you can show lenders that you are a “safe bet”. They can lend money to you without having to worry about having to chase payments at a later date.

Pay bills in your name

Even if you don’t currently own your own property, it is still important to pay some bills in your name if possible. This could be anything, from a cell phone bill to utility bills, but the most important thing is that you are making regular payments under your name. This shows lenders that you have a positive history with money, and makes them more comfortable lending to you.

Sign up for a credit card

Again, this may seem odd, as it means getting into debt in order to improve your credit score. However, the key here is to make sure that you only use the credit card for a small amount each month, and pay it off in full at the end – rather than just paying the minimum payment. This means that you are making regular payments without having to get further into debt, and this can help to raise your score.

Check your score regularly

When trying to build your credit score, you need to ensure that you are going in the right direction. Therefore, it’s never been more crucial than to check your credit score regularly. You may not realize, but you can obtain your score for free from the three major agencies each year. And if you space this out over the course of the year will give you a good idea of how well you’re doing.

There’s much to gain from making sure you build up a good credit score. And it’s even more important that you start now. Looking after your credit score means that the financial security you never thought possible, could be well within your reach in the future.

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Credit scores are important. Anyone who has dreamt of owning a home, or starting and growing their own business, will assuredly need a loan at some point in time. Credit can also be helpful – if not necessary – for other large expenses such as buying a car, furnishing a home, or traveling.

Because credit is useful for so many things, it is important to have a good understanding of what makes someone a strong borrower, and how they can improve their chances of having access to the credit they need, when they need it.

Chief among these factors is a person’s credit score, which is often the first litmus test a lender uses to determine whether a loan or credit card applicant is someone they want to help. Credit scores involve complex algorithms, but there are some simple steps that you can take to make sure your credit score does not send lenders running.

  1. Start building a credit history. If you do not yet have any loans or credit cards, apply for one or two low-limit credit cards. When you can, take out a small loan. Do not run up large balances, but use these credit facilities for daily purchases and make sure to make payments above the minimum, and on time. Try to pay off the balance each month if you are using your cards for daily living expenses such as groceries and household expenses. Credit scores rise as a person builds a history of handling credit responsibly, so you cannot have good credit score without building a history.
  2. Do not miss payments. Always, always, always make at least the minimum payment on time. Missing payments not only counts against your credit score but also brings penalties or additional interest that make it even harder to pay down your balance in the future. Many loans or credit cards that come with attractive rates will reset to much higher rates if you miss a payment.
  3. Find your sweet spot for a number of credit accounts. It is important not to accumulate too many sources of credit (loans or credit cards). Credit scores suffer if you have too many or too few. If you find that you have got too many accounts, you can close a couple. Too few, and you can add a new credit card or two (just be sure not to spend unnecessarily when you get your new cards).
  4. Do not use all your allowable credit. Credit reporting companies use your credit utilization rate – total outstanding balances divided by total amount of credit that you have access to – as part of determining your credit score. What they want to see is that you are not running up credit balances simply because you can. Try not to let this figure rise between 25 to 40% on a regular basis. If you pay off your daily-use credit cards at the end of each month, this should not be a problem.
  5. Track your score and underlying factors. Free credit reporting tools are available through some credit card providers and independent websites. Using these tools can not only keep you updated with the credit score that lenders will see but also point out areas for improvement based on your specific circumstances. They can help you determine the right number of credit accounts, keep track of your credit utilization rate, and may even remind you of loans or cards that you have forgotten. Consumers have better access to their own credit data than ever before, so use it to your advantage.
  6. credit-score

The world of finance and credit can be a tough place to navigate. Deciding how to finance a business or a large purchase can be tough enough. First, it is important that you have many options. While you have plenty of tools at your disposal, you need to make sure you have spent time preparing, so that you will look as attractive as possible on paper to potential lenders. Maximizing your credit score is one big way to earn the trust of lenders, so you can get the credit that you need to grow your business or buy a home when the time is right.

Sam Wilson

Sam is a financial specialist who’s helped people improve their credit scores and financial state across the years. Sam writes for fastcredit.repair and is dedicated to helping those in need. In his spare time, he likes to relax and take his kids to the local park.

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By financen | April 24, 2017 - 5:42 pm - Posted in Credit Score, Loan, Personal Loans

Personal loans can be a great arrow in your financial quiver for consolidating higher interest rate debts, like credit cards or short-term loans, or financing a major purchase or unexpected bill. With predictability built in, personal loans make it easy to budget for repayment for the life of the loan, and for the most qualified borrowers, repayment can extend up to several years. However, not everyone is eligible for a personal loan through banks or online lenders. Because personal loans do not require collateral – an asset, like a vehicle, a home, or a bank account the lender can use to recoup losses due to default – the application process can be stringent. Here are the most common factors banks review when evaluating a personal loan application.

Credit Score

credit-score

The first place lenders look when receiving a new personal loan application is the borrower’s credit history and score. Credit information is like a financial fingerprint in that it provides a clear picture of who a borrower is in terms of money management and timely debt payment over an entire lifetime. When credit history is clean, and a credit score is above 700, banks are more apt to offer a personal loan with the lowest possible interest rate and budget-friendly repayment term. If credit score and history are on shaky ground due to past late payment, a recent bankruptcy, or a foreclosure, lenders either decline a loan application or charge far higher interest rates to protect their potential for loss.

Employment History

employment

Some banks ask for employment history on a personal loan application, in an effort to understand a borrower’s track record of earnings. When someone has had significant gaps in jobs over the last few years or has had several different employers in a short period of time, lenders may view the borrower as higher risk. Steady employment and increased income over time is what banks are typically looking for to qualify a borrower for a personal loan.

Current Income

Income

Above and beyond a borrower’s past financial record, banks want to understand current income. Borrowers with steady earnings from a conventional job are perceived as a lower risk to most lenders, while those who are paid by commission or a bonus structure are less reliable in theory. Banks also want to understand the reliability of the income stream a borrower has, and how that stacks up against other outstanding debts that require a monthly payment. Even when income is steady, borrowers who have several other monthly payments due may not be a strong fit for a personal loan through a bank.

Amount and Purpose of the Loan

The last common factor in reviewing a personal loan application is two-fold: the intent of the borrow and the amount funded. First, personal loans may have some restrictions on what items or expenses they can be used to pay, typically excluding paying off another loan or financing education-related costs. The most common uses for personal loans that are deemed suitable by a bank include debt consolidation, a large expense like a family vacation or holiday spending, or business financing. Second, banks always review the amount of the loan requested and compare that to the borrower’s income and other monthly obligations. For most personal loan applications, no more than $35,000 can be borrowed at one time.

Using a personal loan to manage your finances can be a smart way to leverage your borrowing ability, but take note that banks are going to review your loan application carefully. Before applying for a personal loan, make sure to have documentation relating to your income, a list of previous employers, and a clean credit history to improve your chances for approval.

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By financen | April 11, 2017 - 6:15 pm - Posted in Credit, Credit Score

How to Improve Your Credit Score

Do you ever think about your credit score? Chances are you have if you are in the market for a new car or even to buy a house. Your credit score doesn’t seem important when you are young and don’t have a lot of responsibilities, but it is. College students are famous for racking up credit card debt in college that will stick with them until later in their life and ruin their credit.

If you are thinking about your credit score, you are probably trying to come up with ways to improve it. Doing this is actually not as hard as you probably think it is, but it will take some work in both the short and the long term. A lot of this depends on how bad your score is to begin with, but there is no mountain too high to climb in terms of credit.

Four Ways to Improve Your Credit Score

Be Fastidious with Your Credit Report – Don’t just look at your score and throw your report away. There could be damaging things on it that are incorrect. Consumers have the right to challenge anything on their report that they thing doesn’t belong. You might be surprised at how much your score goes up when even small debts are taken care. They really add up. Credit agencies are more than willing to work with you to help get rid of these if they are proven to be wrong.

Start with High-Interest Accounts – If you have multiple loans or credit accounts you are trying to pay off, start with the higher interest ones. This makes sense because the higher the interest rate, the more money you are going to pay to get rid of it. People don’t always realize how much interest really racks up on their credit accounts.

Get a Credit Card – A lot of people have probably told you to never have a credit card because they are trouble. There is some truth to this, but in order to have a good credit score, you must have some credit in the first place. The only way to build your credit score is to borrow money and pay it off. This will also create a history that lenders can look at to see if you are a viable option for a loan. In short, you can’t have a good credit score if you don’t have any credit. This seems obvious, but a lot of people don’t understand it.

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By financen | October 6, 2015 - 5:32 pm - Posted in Credit, Credit Score

Credit and credit scores are becoming increasingly important in our lives. Whether it is access to loans, better interest rates or for job offers, CIBIL scores are being used in almost every sphere of our lives.

A common question that crops up is:

How do I get my CIBIL score ? Or from any bureau for that matter.

You can obtain a FREE credit score by following these simple steps:

  1. Visit www.freescoreindia.com. Register by providing basic information regarding your name, E mail and current city of residence
  2. Provide your PAN number, Date of Birth and Aadhar Card number. In case you do not have your Aadhar number, you may upload a copy of any other address proof that you may have such as passport, ration card, rental agreement etc
  3. Validate your identity

credit scoreAfter you submit this basic information, your credit report and score will be generated. A notification is sent to you once the report is ready. All you have to do is login to the website to get access to the latest in the world of credit and credit score. You also get access to several savings opportunities which will help you to manage your credit and save money. Every customer gets access to a customised space on the website which has a wealth of information on a person’s credit profile, various financial tools such as loan calculators and score simulators, customised offers on home loans, personal loans and credit cards and the latest news, launches and product offerings in the world of finance.

Now, getting a credit report is no longer cumbersome. The entire process is completely free. No credit cards, no hidden charges, completely secure and you can opt out anytime.

It is to be noted that the credit report provided is from Equifax which is among the largest credit bureaus in the world and among the 4 licensed to operate in India by the Reserve Bank of India.

Written by Arun Ramamurthy, founder of freescoreindia.com which is India’s premier credit management platform.

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Sometimes we get into financial mess that may not be created by us. If you are one of them and are feeling trapped, there is an easy way to get out of this mess. Sometimes you get frightened thinking that the lenders will turn down your proposal because you are a bigger risk to their finance. Now you don’t have to go through such difficult financial situations. Recession has left its toll on many of us. People who never thought that their credit will get bad are now facing this tough situation. You can easily apply for a loan with different loan companies. You just have to do a search on the internet, shop with different companies and figure out the best deal in your favor.

What makes a loan high risk? This is that type of loan which is applied by a borrower who has bad credit and is in tremendous need of cash. Just do a search on the internet as per your requirements and you will find different lenders. Although they may not specialize in this type of loan, but they can approve your loan requirement. These lenders have a fair idea about such requirements of the borrowers. It does not matter whether you own a car or a home, to put as collateral, you still have the chances to get approved. All you need is a steady income and an active checking account, and many lenders will be willing to do business with you.

Based on the collateral that you have to put against the loan, you can apply for a bigger amount. An unsecured loan that is offered without collateral can range between $1,000 to $25,000 and you can pay it back between 1 to 25 year time frame.

creditWhen you are applying for an unsecured loan, it is obvious that the interest rate will be a lot higher considering the risks involved with it. Hence, it is better to pay back a small loan quickly than letting the interest charges kill you slowly over a long period of time. Hence, you should borrow a small amount, so that you don’t end up paying a lot in interests and fees. And once this loan is getting paid off, it will improve your credit history. Once your credit score is back up, then you can get better deals from the lenders.

Application process is very easy. You just have to get online, fill the application form and your loan will be processed. Make sure that you have fully read the terms and conditions in the contract copy to avoid any confusions at the later stage.

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By financen | November 15, 2010 - 2:15 pm - Posted in Credit Score

The three digit number called credit score plays a significant role in your life. From buying a home to getting a job, your credit score can play a vital part in some very important things in your life. So do you have severe credit blemishes? Stop worrying because you have plenty of company. A large number of Americans have credit scores poor enough to get them disqualified for getting loans with reasonable terms. However, you can definitely improve your credit score. Wondering how? Just read on.

What you should do:

• Your credit score is calculated on the basis of your credit reports. But your credit reports are certainly not error proof. So get copies of your credit report and check whether everything is all right. You can visit http://www.annualcreditreport.com for the said purpose.

• If the amount you owe is close to the credit limit then your credit score is likely to be affected. Your scores should be limited to 30% or less of the cards limit. You must understand that even if you make full monthly payments, your credit score can suffer if you rake up big balances.

• If you are a good customer then your creditor might agree to remove one or two negative items from your credit history. Things are tough if you have a more troubled account. However if make a series of timely payments for a long then your lender may agree to erase previous delinquencies.

• If your credit score is going down because of your outstanding debts then better try to pay off your debts as soon as possible. If your debts are too overwhelming then you can take the help of a non-profit credit counseling to work out a debt consolidation plan.

• If you have just cleared off your debts then you can apply for a new credit card to build a decent credit history. If you are denied a regular credit card then you can get secured credit card. If used judiciously it can help you to develop a good credit history.

What you should not do:

• Avoid making late payments. They have a negative impact on your credit score. It is a funny thing that late payments have greater impact on bad scores than good ones. If you have multiple negative items on your credit report then one more will not hurt it significantly. But if you are trying to fix a bad credit score then better stay away from late fees.

• Never ever ask your creditor to lower your credit limit. It reduces the gap between your balances and gap between your balances and the credit limit. This can certainly hurt your credit report. Sometimes, while applying for a loan your creditor asks you to lower the balance and you are compelled to do so. But make sure that you don’t do it unasked.

• Debt consolidation can have negative impact your credit score. It is always better to have small balances on few cards and than a big balance on one card.

• If possible stay away from debt reduction programs like debt settlement. Bankruptcy of course ruins your credit report and seems to stay on your report forever. It should be your last resort.

So keep in mind the above points and start building your credit score from today!

By financen | June 7, 2010 - 2:10 pm - Posted in Credit, Credit Repair, Credit report, Credit Score

Your credit rating is the most important factor in front of anyone. You will need to have a good credit standing when you are applying for a job or when you are looking for some financial debt help from the banks and other prestigious financial institutions. Your credit can dictate the house you live in, the car you drive in. The information contained in your credit report is used for many different life events. Your credit scores will go down if your information providers have reported some negative remarks to the credit bureaus. It doesn’t mean that the negative items cannot be fixed. There are reputed credit repair companies that can help you mend a broken credit score.

 

 

Taking the help of a law firm to repair your credit is a good idea. These law firms have been helping people with bad credit to remove the negative items so that they can regain their financial worthiness. With the help of the law firm, people who earlier had bad credit are now able to have normal productive new lives as unverifiable and erroneous information were immediately removed from their credit report. These law firms use the credit repair review which finds out why you were denied in getting a new car, a home or a new career.

According to the FTC, an average person can usually spend at least 100 hours just to fix one negative item on his credit report. Anyone can get an inaccurate negative item removed from his credit report by contacting the credit bureaus, but doing so, you have to go through a lot of red tape and call each company reporting on your credit report. Most of the times, the credit grantors will give you a run around that can delay the whole process. These law firms in such situations seem to be a great relief as they work with credit agencies and the credit bureaus with the objective of removing the negative items on your credit report.

When you are looking for a company to fix your credit report, give more preference to a law firm because they have their licensed attorneys and they know the laws as per the FDCPA and the FCRA. They can not only empower the customers with knowledge and work out possible ways to fix their credit ratings, but can also take legal actions against the credit grantors and credit bureaus if they seem to be violating the laws and reporting inaccurate information even after providing proof.

There are different services available with credit repair from ala carta to monthly membership levels. There is a plan for all kinds of people who are looking to fix their credit ratings. If you are interested, law firms can set up your account within the same day and start the credit repair process after you provide them the latest copy of your credit report and put a request on the items to be investigated.

Credit repair process with the law firms is simple and easy. You just have to sit back and relax in the comfort of your living room. You can stay posted on the status of your account by logging into the online account with them. If you feel that your score is out of control then you could benefit from a credit repair review and have an experienced professional aid you with your credit problems. If you feel like someone else is driving your score, than you could definitely benefit from their knowledge.

By financen | May 24, 2010 - 5:43 pm - Posted in Credit, Credit Card, Credit Score

It is really a question that many of us have in our mind. You should not have unused credit cards in your wallet if your primary goal is to maintain good credit score. But in case of emergencies, that extra card may come to you as a real help.

Unless you extra credit card causing problems like annual fee or inactivity fee – there is no such a great reason to close the account. “A zero balance on a credit card account won’t hurt your FICO score, but closing an account could”, says Craig Watts, a spokesman for Fair Isaac.

However the bank may cancel your credit card if your credit card remains unused for many days. The reason is “eventually the card issuer will close the account due to inactivity,” says Watts, as keeping the unused credit card account open costs the lender money.
If you are to apply for a loan then you should consider this quotation given by Rod Griffin, the director of public education for credit bureau Experian, “Closing an account causes you to lose the available credit limit associated with it. Your utilization rate, also called your balance-to-limit ratio, will increase as a result of closing the account. That may cause a temporary decline in your credit scores.”

Watts says, “The FICO score assesses all the information on your credit report. So the score impact from any one action, such as closing an account, will depend on what other information is present on the credit report”. He also says “closing one card is much less likely to affect your FICO score”.

If you are responsible enough borrower then an account closure would not have much impact. As good credit involve not to carry excessive debt and making payments on time.

By financen | November 6, 2009 - 12:21 pm - Posted in Credit, Credit Repair, Credit Score

A number of people are falling behind in their monthly payments to different creditors because of the rising costs in gas, food and also due to increasing unemployment. With the recent stressed economy, many people are finding hard to make ends meet. They are continuously missing their monthly payments, thereby causing havoc in their credit report.

Although credit repair can be quite a challenging job, but it’s not at all impossible as many people think so. There are legal law firms that specialize in credit repair services and improve your credit ratings. If you are getting late on your monthly payments to your creditors, these specialized law firms can negotiate with your creditors and arrange a payment plan after lowering the interest rates. They will stop any kind of late payments that might have shown up on your credit report if you were expecting to get late.

When you hire a credit repair service, check the company with the local authorities so that you know about their legitimate business and their work experience in getting results for the customers. With the changing laws and regulations, you need to make sure that you are working with a law firm that can keep up on all the changes. Browse through the internet and do a search on “fix my credit score” on the popular search engines. You will get a variety of credit repair companies and the features that they have to offer. Do a thorough research on the company before signing up for their services. You need to make sure that you are signing up with a legitimate company who will not put you deeper into debts, since you are already struggling to come out of this mess.

Hiring a company that is not judgmental is also important. It is very frustrating to fall behind in the monthly payments. A law firm that can not empathize is less likely to stand by your side and provide adequate service.

Once you have gotten your credit fixed by the credit repair service, it’s important to maintain your improved credit scores. Always check your credit report at least once in every six months and see if there are any inaccurate negative items getting reported on your credit file. Never miss your monthly payments with the creditors otherwise it won’t take too much time to fall in the same spot from where you have just come out.

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Are you sure of paying all your previous bills in time? Most of the insurance companies will like to know such details before offering any quote. The insurance companies will use your three digit credit scores to determine the kind of insurance plan offered to you. The cost of the insurance policies will also be calculated on the basis of your credit scores. The premiums on your insurance policies may double if you have missed a couple of payments on your credit cards or other financial obligations. Regardless of your sound business relation with the insurance company, you might lose your policy if the credit scores keep moving down in the course of time.


Many people are surprised to know that the insurance policies and the premiums have some kind of connection with the credit ratings or the credit scores. Most of the insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road also. People who manage their personal finances properly tend to manage other important aspects of their life with the same level of responsibility. Most of the insurance companies will definitely review this factor before offering any kind of insurance policy.

There are many people, especially the ones having low credit scores, feel that credit scores for an insurance quote or insurance policy premium is unfair and hurts only the working class. Opponents argue that the low economy has put a strain on the large amount of working group. Missing a couple of payments due to a tight financial situation is often possible and because of this, the premiums should not go high. There are so many areas where public transportation is not readily available and insurance is a must. People who are already going through tough financial situations and are hardly able to make ends meets will be severely affected by the increased premiums and will fall even further behind.

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