With the economy doing poorly, consumers are turning to one thing to remedy their lack of wants: credit cards. While credit cards can be good, in fact very beneficial, they can also be destructive. How you paid off your credit card balance and managed your debt will show up on an extremely important document-your credit report.
A credit report is a record of your credit history. This record which shows the actions of a consumer are vital to determining their credit worthiness, or their ability to be trusted with money that isn't theirs. It is a federal law that every person is able to receive a copy of their credit report once every year. This can be obtained through a major national consumer reporting company: Equifax, Experian, and TransUnion.
You may be asking though, why even obtain a credit report? Seeing your annual credit report is important for you to see before taking out any type of large loan, whether for a house, a car, applying for a job. This document is free and extremely helpful for your future. There is no reason not to obtain a copy.
There are various ways you can ensure that you will be pleased with your credit report. For instance, be sure to pay off your credit card bills on time. This shows banks and lenders that you are trustworthy and responsible. Also, pay off as much of your credit card bills as you can each payment. If, for instance, you can pay each payment off in full each month, you will have a much better overall credit report then someone who pays off small amounts.
It is also important to abide by the laws of the land and be honest in all transactions. Sometimes a credit report may not accurately depict your credit history, so keep watch on your transactions and all major activity that goes on with your bank accounts and loans; by doing this, you may find that you need to dispute
If you see something on your credit report that does not seem correct, you can dispute credit report information. To do this, you must submit in writing your claim to both the credit buerou that provided you with the credit report and also to the information provider. As you dispute credit history, you are able to ensure that your credit report is accurate and will best allow you to get the loan you need.
Source: http://www.sooperarticles.com/finance-articles/credit-articles/credit-reports-what-why-when-how-308250.html
Sunday, February 20, 2011
About The Debit Card Facts
So your bank has just offered you a debit card with your new account you can open, but you have no idea what it is. Here are some facts about the debit to help you understand them better.
Debit card may look like a credit card, but she is not alone. While you can take credit from the issuing authority to buy on credit, you must use your own money to buy something using a debit. Although they both will help you buy things without carrying cash, but their work is fundamentally different. In addition to purchasing power, you can also use the card to withdraw money from an ATM.
When you get a debit card, you do not make money anywhere you go. As you begin to use the card, you will notice that you are on track to more money, and everything has become easier for you.
If you use a credit card before, then you have no problems using a debit, because you have to swipe it through the machine in the same way as a credit card is cleared. You will receive a receipt and you have to sign it in order to complete the transaction.
You can ask your bank about the cards they support. And since you can not spend more money than an account, you do not have to worry about fees and interest rates. Just as you use these cards are the same. There are many banks that offer you a debit card. In fact, all major banks and recognized credit and debit card systems. You can get a Visa or MasterCard.
You can use a debit card to pay as well. You can also use them to buy anything online or by phone. When you buy something, the purchase amount will be deducted from your account balance. When you order online, you can not sweep your card through the machine. In this case, you must provide your debit card number along with the 3-4 digit security code.
Debit cards are the most profitable credit through a variety of ways. For example, if you do not have a good credit history, you will not get the best credit cards. But since there is less risk to the banks when they offer you a debit account, you can get it, even if you have bad credit score.
There are some drawbacks using debit. The first is that you are actually using their own money, so I like spending money. Another limitation is that the debit does not usually offer the same features and a credit card to do so. Suppose that a product using a debit card. You can payment and then the product will be delivered. But if you use a credit card, you receive the product before paying for it, because if they do not provide what they promised, you can cancel your order.
Source: http://www.sooperarticles.com/finance-articles/credit-articles/about-debit-card-facts-310442.html
Debit card may look like a credit card, but she is not alone. While you can take credit from the issuing authority to buy on credit, you must use your own money to buy something using a debit. Although they both will help you buy things without carrying cash, but their work is fundamentally different. In addition to purchasing power, you can also use the card to withdraw money from an ATM.
When you get a debit card, you do not make money anywhere you go. As you begin to use the card, you will notice that you are on track to more money, and everything has become easier for you.
If you use a credit card before, then you have no problems using a debit, because you have to swipe it through the machine in the same way as a credit card is cleared. You will receive a receipt and you have to sign it in order to complete the transaction.
You can ask your bank about the cards they support. And since you can not spend more money than an account, you do not have to worry about fees and interest rates. Just as you use these cards are the same. There are many banks that offer you a debit card. In fact, all major banks and recognized credit and debit card systems. You can get a Visa or MasterCard.
You can use a debit card to pay as well. You can also use them to buy anything online or by phone. When you buy something, the purchase amount will be deducted from your account balance. When you order online, you can not sweep your card through the machine. In this case, you must provide your debit card number along with the 3-4 digit security code.
Debit cards are the most profitable credit through a variety of ways. For example, if you do not have a good credit history, you will not get the best credit cards. But since there is less risk to the banks when they offer you a debit account, you can get it, even if you have bad credit score.
There are some drawbacks using debit. The first is that you are actually using their own money, so I like spending money. Another limitation is that the debit does not usually offer the same features and a credit card to do so. Suppose that a product using a debit card. You can payment and then the product will be delivered. But if you use a credit card, you receive the product before paying for it, because if they do not provide what they promised, you can cancel your order.
Source: http://www.sooperarticles.com/finance-articles/credit-articles/about-debit-card-facts-310442.html
Saturday, January 22, 2011
How Credit Score is Calculated
Everyone who uses a credit card or has taken any loan or even planning to take any loan must know that how credit score is calculated. It is as important as using credit card or taking loans.
Whenever you or borrow money from some credit agency or finance group the lender sends your information to credit bureau. Once your report is send to credit bureau your background records are monitored. Based on your previous performances your credit score is calculated.
The calculation of Credit Score mainly depends upon following five factors:
(1) Your previous credit performance
(2) Your current level of indebtedness
(3) Time credit has been in use
(4) Types of credit available
(5) Pursuit of new credit
These factors are included in credit score calculations but each of these have different values. Most valuable factor is the first one. The weighting breaks down is as below:
Previous credit performance = 35%
Current level of indebtedness = 30%
Time credit has been in use = 15%
Types of credit available = 15%
Pursuit of new credit = 5%
Clearly from above information one may determine that most importnat fator for getting a loan is to have good credit performance in past. Also it is also important whether the person is haveing any other debt or not.
Other factors such as credit time, type of credit and pursuit of fresh credit are of less importance but one can not overlook these issues.
This is how credit score is calculated.
Whenever you or borrow money from some credit agency or finance group the lender sends your information to credit bureau. Once your report is send to credit bureau your background records are monitored. Based on your previous performances your credit score is calculated.
The calculation of Credit Score mainly depends upon following five factors:
(1) Your previous credit performance
(2) Your current level of indebtedness
(3) Time credit has been in use
(4) Types of credit available
(5) Pursuit of new credit
These factors are included in credit score calculations but each of these have different values. Most valuable factor is the first one. The weighting breaks down is as below:
Previous credit performance = 35%
Current level of indebtedness = 30%
Time credit has been in use = 15%
Types of credit available = 15%
Pursuit of new credit = 5%
Clearly from above information one may determine that most importnat fator for getting a loan is to have good credit performance in past. Also it is also important whether the person is haveing any other debt or not.
Other factors such as credit time, type of credit and pursuit of fresh credit are of less importance but one can not overlook these issues.
This is how credit score is calculated.
Monday, August 23, 2010
How to maintain a good credit score
Credit score is the most important factor for getting a loan in USA. Whenever you wish to take loan you are asked for your credit score. A bad credit score is can be more than an embarrassment in such situation. So it is very important for every individual to keep a good credit score if he wishes to take loans.
How to maintain a good credit score
Before applying for a loan a person must understand the terms and conditions that are responsible for them to get the loan. In almost every situation it is important that your credit score is good. There are few ways for maintaining a good credit score:
1. Know the method for calculating credit score: First of all you need to find out how credit score is calculated. In other words you must work on the factors responsible for calculating credit score. Some important such factors are:
a. Credit Age
b. Level of debt
c. Recently avail credit
d. Previous payment records
2. Make payments for your bills on time: To maintain a good credit score it is always good to pay your bills on time. Pay all your bills on time including telephone, electricity, cards etc bills. This is multi beneficial for you. Firstly you don’t need to pay interest or fine due to late payment and secondly your credit score remains good.
3. Keep your cards bill low: It is advisable to try to keep credit card bills less than 30% of the actual limit. If your credit limit is $ 5,000 then try to use not more than $ 1,500 from that card. Even if you pay your bills on time, taking heavy credit may affect your credit score.
4. Keep a cap on debt amount: To maintain good credit score avoid taking heavy loans and debts. Take your time and ask experts for financial planning that is suitable to maintain good credit score.
5. Keep your cards alive: Try to keep your cards alive because if you wish to close your older cards then your use history will be removed and you will not get the benefit of using that old card.
6. Be watchful: Keep an eye on your credit score after regular time intervals. Don’t take it granted that if you are following every guidelines for good credit score, your score will go good.
From these guidelines one can maintain good credit score and consequently increase the chances of getting a loan easily.
Bad Credit Loans
Even if a person is having bad credit he may get loans from bad credit loan lenders. There are some money lenders who can help people with bad credit score and give loans to them.
Thursday, August 12, 2010
How to improve your credit score
Credit score is the most important factor for getting a loan in USA. Whenever you wish to take loan you are asked for your credit score. A bad credit score is can be more than an embarrassment in such situation. So it is very important for every individual to keep a good credit score if he wishes to take loans.
How to maintain a good credit score
Before applying for a loan a person must understand the terms and conditions that are responsible for them to get the loan. In almost every situation it is important that your credit score is good. There are few ways for maintaining a good credit score:
1. Know the method for calculating credit score: First of all you need to find out how credit score is calculated. In other words you must work on the factors responsible for calculating credit score. Some important such factors are:
a. Credit Age
b. Level of debt
c. Recently avail credit
d. Previous payment records
2. Make payments for your bills on time: To maintain a good credit score it is always good to pay your bills on time. Pay all your bills on time including telephone, electricity, cards etc bills. This is multi beneficial for you. Firstly you don’t need to pay interest or fine due to late payment and secondly your credit score remains good.
3. Keep your cards bill low: It is advisable to try to keep credit card bills less than 30% of the actual limit. If your credit limit is $ 5,000 then try to use not more than $ 1,500 from that card. Even if you pay your bills on time, taking heavy credit may affect your credit score.
4. Keep a cap on debt amount: To maintain good credit score avoid taking heavy loans and debts. Take your time and ask experts for financial planning that is suitable to maintain good credit score.
5. Keep your cards alive: Try to keep your cards alive because if you wish to close your older cards then your use history will be removed and you will not get the benefit of using that old card.
6. Be watchful: Keep an eye on your credit score after regular time intervals. Don’t take it granted that if you are following every guidelines for good credit score, your score will go good.
From these guidelines one can maintain good credit score and consequently increase the chances of getting a loan easily.
Bad Credit Loans
Even if a person is having bad credit he may get loans from bad credit loan lenders. There are some money lenders who can help people with bad credit score and give loans to them.
How to maintain a good credit score
Before applying for a loan a person must understand the terms and conditions that are responsible for them to get the loan. In almost every situation it is important that your credit score is good. There are few ways for maintaining a good credit score:
1. Know the method for calculating credit score: First of all you need to find out how credit score is calculated. In other words you must work on the factors responsible for calculating credit score. Some important such factors are:
a. Credit Age
b. Level of debt
c. Recently avail credit
d. Previous payment records
2. Make payments for your bills on time: To maintain a good credit score it is always good to pay your bills on time. Pay all your bills on time including telephone, electricity, cards etc bills. This is multi beneficial for you. Firstly you don’t need to pay interest or fine due to late payment and secondly your credit score remains good.
3. Keep your cards bill low: It is advisable to try to keep credit card bills less than 30% of the actual limit. If your credit limit is $ 5,000 then try to use not more than $ 1,500 from that card. Even if you pay your bills on time, taking heavy credit may affect your credit score.
4. Keep a cap on debt amount: To maintain good credit score avoid taking heavy loans and debts. Take your time and ask experts for financial planning that is suitable to maintain good credit score.
5. Keep your cards alive: Try to keep your cards alive because if you wish to close your older cards then your use history will be removed and you will not get the benefit of using that old card.
6. Be watchful: Keep an eye on your credit score after regular time intervals. Don’t take it granted that if you are following every guidelines for good credit score, your score will go good.
From these guidelines one can maintain good credit score and consequently increase the chances of getting a loan easily.
Bad Credit Loans
Even if a person is having bad credit he may get loans from bad credit loan lenders. There are some money lenders who can help people with bad credit score and give loans to them.
Wednesday, August 4, 2010
This Blog is about...
This blog is about loans and mortgages. You can have updated information about all happenings in the world of business and finance. Know all about best deals available for loans and mortgages.
We will bring something for everyone, even if one has bad credit score he can find loans schemes to fit his requirements. All you need to do is to check updates evey day as we add new information very fast.
This blog will also speak about various loans schemes and information about repayment plans for these loans.
We will bring something for everyone, even if one has bad credit score he can find loans schemes to fit his requirements. All you need to do is to check updates evey day as we add new information very fast.
This blog will also speak about various loans schemes and information about repayment plans for these loans.
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