Good Credit Goes A Long Way
October 29, 2008 · Print This Article
Credit rules the economy in America. For better or worse, this system is the standard for exchanging value in this nation. While it may have come under a crunch in recent history credit nonetheless is vital to achieving many purchases that would otherwise be impossible without the proper funds.
Credit is an excellent method of determining your eligibility for loans. Just like how you’d feel confident lending money to a good friend that has proven his or her responsibility and prudence in paying you back on time on a previous loan, credit reflects your own financial reputation in the same way. If you have a credit history that is good, this increasing the confidence lenders have in you. Essentially speaking, an outstanding credit history gives you the opportunity to borrow more money at a cost that is lower.
Having no credit history takes away these opportunities, and may be initially restricting. In order to obtain a loan, you’ll most likely have to show proof of your income and receipts showing that you pay your rent and your utilities on time. This may not even cut it, however.
Because of the problems you may face without established credit, you’re going to have to turn to one of the few successful methods of getting credit started at a relatively fast rate. This most likely means that you’ll want to apply for a credit card. Credit cards are exceptional in how they can give you the ability to build credit quickly and efficiently just by using the card and paying your balance on time. However, credit cards are a huge responsibility, and you have to approach possession of one with the fullest intention of handling it in a responsible and mature way. If you neglect paying off your credit card on time and in full, you can quickly become penalized or even get buried in debt on account of fines and heavy interest charges.
The most important part of credit history is timely payments. In fact, the payment of bills accounts for 35% of a credit score. If you end up having late payments, a note is added to your report by the business you owe signifying the issue at hand. This can make it harder to obtain future loans and financing because loaners see you as being a risky investment. In fact, interest rates can be hiked or you could be denied loans outright simply because of payments that were late or not delivered at all.
Good credit goes a long way. If you handle your finances wisely and pay your bills on time while maintaining a credit card in a responsible manner, you’ll find your score improving slowly but surely. With good credit comes the reward of being treated exceptionally well by financial institutions and all sorts of businesses that look to your credit as an indicator of your character. When buying a home, renting an apartment, or even applying for automotive insurance, your credit counts. When you bring big numbers to the table, creditors are more willing to take you seriously, listen to you, and provide you the money, financing, or service that’s necessary to obtain what you need.
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I think most people are relying on the fact that somehow the goverment will come in and save everyone from this credit crisis and that we don’t have to continually look after our own credit. Their excuse, well everyone else is letting their homes go into foreclosure, filing for bankruptcy, ect….so why shouldn’t I? This article gives great insight, thanks!
My score is excellent,my wife and I share the same cards.How come she has no credit score at all?
Thanks for any help or info..H.Hahn
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You can get a copy of your FICO score by purchasing it at . You will have to purchase it from them. However, I have a Washington Mutual credit card that shows me my FICO score online for free and gives me recommendations. This is just a free service they provide for their cardholders it seems. Also, Suze Orman sells a FICO kit that I hear is pretty good and can help you with all kinds of suggestions, depending on your specific situation.
HTH!
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Keep your payments up-to-date and you should be good. Don't get more credit. A score of 750+ is average for a good IR. Just keep showing the credit companies that you can be trusted to repay loans. Now is a good time to pull all three of your credit reports and analyze them. Correct any errors and make sure everything is correct.
I don't know exactly what it will do to your credit score, but if you have had the old Visa for a while and it doesn't have any annual fees, I would suggest keeping it. Your credit score is based on the debt to available credit ratio.
You would need to have enough income to make payments. About 70,000 a year in income would be good for a house of that price. Then a credit score of 700+. The price of the house is not relevant to the credit score, it is relevant to your ability to make the payments.
just dispute everything on your credit file. no need to hire anyone to do it.
whats up? New post: Latest Credit Score Mortgage Au …
Article by Earnest Younge at 2010-08-15 18:20:53
Categorized in mortgage finance,
In case you have had financial problems in the past, using a car loan to improve your credit can be an excellent part for an overall financial plan. So, if your ultimate goal is to improve your credit scores then the first thing you need to do is get a copy of your credit report and have a look at it.
Didn't kno jobs can deny you for a credit score wth I wanna cry
Really helpful, thanks!
5 Ways to Improve Your Credit Score Fast
Don’t listen to this idiot. Close accounts you don’t use. Keeping it open may increase your score but so what? Are we really so scared of the upper class in this country that much that we would do exactly as they want. They want you to keep the cards open because then there is always a chance they will make a profit from you.
It will take awhile, it isn't as much about how much you have on your card, but the fact that you make your monthly payment on time, and the time you have the card. Your credit probably took 1 point ding, I wouldn't worry about it, just continue to make minimums or much higher each month and then when you get it to 0 let it sit there, you need to build up history on the credit card. Good Luck
Congrats on getting your first card and, more importantly, on caring enough to ask about the impact of a $1600 purchase.
Are you considering applying for credit any time soon?
If not, don't worry about the impact to your score. In fact, consider, don't worry, about the amount of interest you'll pay for delaying full payment of the $1600 purchase.
That is, you indicated it will take you 2-3 months to pay it off.
Unfortunately, the hit is much more than the one point suggested by a different poster.
Thirty (30%) percent of your FICO comes from "amounts owed."
Not a problem…unless you're considering new credit. If so, hold off. Get a credit history with on-time monthly payments. Show responsibility with the card you have.
Don't laugh..but really nurture it. Develop a long-term credit relationship and you will benefit.
Hope this helps,
Best,
Mike
: I want to help my credit score, but i have high debt?
In the end it would be up to the lender as to if they would make you pay it. A lot would depend on the amount as well as the type of debt. If it was for something like a medical bill they may not, but if it is for a credit card debt they may require you to pay it off. Their biggest fear from them is if you get sued would you then have to default on the mortgage, basically making you a higher risk.
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Thanks. It does. I’ll try that.
probably around 1 or 2. ive done it before!
Rogers' Man Nabs National Attention For Credit Score
i have a score of 590 i owe about $370 on my report..when i pay this off will my score go up.
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Using your debit card as credit versus ATM does nothing for you. I don't know the lowest score but 850 is the highest. The average american has a score of 675-700. Anything over 700 and you are in very shape, the top 20%.
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All the banks get bailed out but Im still stuck with 14.99% interest rates. I have paid my bills on time for years. The banks can go screw themselves. I have also heard that if you check your credit score, it can go down. I have never check mine tho