Monday, June 7th, 2010 at
9:15 am
Many people are perplexed about whether or not a really perfect credit score is necessary in order to get credit these days. Most of these people have been lulled into a false sense of security because in days gone by, people with bad credit would simply pay a higher interest rate.
The trouble is that fewer and fewer lenders want to lend money to people with bad credit scores and credit histories irrespective of the interest rate.
This means that without something along the lines of a perfect credit score or even an above average credit score you may not have access to any kind of borrowing options at all. Which in-turn means putting your dreams and plans for the future on hold?
There is a school of thought which says that it is almost impossible for the average person to achieve a perfect credit score. This is simply not true because you don't have to be wealthy to have a good credit score ratings.
It is just a question of being responsible in your use of the credit that you do have. People who have acted responsibly will be able to reap the reward in the form of better interest rates and cheaper borrowing.
Those who have a more cavalier attitude to their financial transactions will end up paying the penalty for their nonchalant outlook.
The best advice I can give is if you have a bad credit score then set up a plan to improve your credit rating. Pay your bills on a regular basis and on time. Don’t fall back on your payments – that’s will only lower your credit score even further. Show a commitment to improve your credit rating and everything will come right in the end and you achieve your goal of a perfect credit score.. It might take a little bit of time but you will reap the benefits in the long term.
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Saturday, May 29th, 2010 at
10:15 am
The beacon credit score is the number used by the Equifax credit bureau and is based on certain factors about your lifestyle including your income, amount of debt, the amount of credit enquiries you make and even your employment history.
The majority of people only realize they have a beacon credit score when they have been rejected for a credit card or loan application. They start to worry and get concerned as to why this has happened.
Your credit history plays a big part in making up your beacon credit score because if you are defaulting on payments for any of your credit then that will harm your credit score.
Financial institutions use your beacon credit score as a guideline in assessing if you are able to pay back the loan you have applied for. If you have a beacon credit score in excessive of 750 then the banks will more than likely approve your loan application along with a good interest rate.
But the score will vary depending on the bank. Some low interest rate banks will accept a score of 640 whereas the higher interest charging banks will even accept a beacon credit score as low as 540. It is a case of shopping around to see what bank suits the credit score you have.
If you have had a loan application rejected because you have a low beacon credit score then you can apply to the creditor and ask for the reason why it was rejected. You have up to 60 days to apply and the creditor must reply to your request. If they don’t then they are in breach of the Equal Credit Opportunity Act.
You need to find out what your beacon credit score is and make sure that the credit report is correct. Because if the credit score is low then you have to set about improving your beacon credit score if you want ensure that you get the best deals on interest rates when you apply for a loan or credit card again.
One of the best places to find out what your beacon credit score is online. Credit score websites are available on the internet with services to monitor your beacon credit score sometimes free, but often at a fee.
Keep an eye on your beacon credit score, as this three digit number has many extraordinary effects on your long-term goals. It can be the deciding factor in whether you get that mortgage for your dream house. If your beacon credit score is too low, you might have to put your dreams on hold. Check your credit report as often as possible and clear up any possible mistakes very quickly.
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Thursday, May 27th, 2010 at
8:40 am
While there is certainly some small difference of opinion among experts, most financial counselors are agreed that it will be necessary for you to attain a 700 credit score or higher in order to qualify for a good interest rate on a loan.
It is possible to be rated somewhat less than this and still be considered a good credit risk. But, the 700 credit score level is way above average credit score that will almost certainly get you a better rate.
Do you know what your current credit score is? If you don't, you can get this information from many different credit bureaus online different. Once you know what your credit score is then you'll know just how far you are away from your goal.
Perhaps you have heard that if you can qualify with a 700 credit score or better, you will more than likely get a really good interest rate on any type of loan product. But, if you have a low credit score then you must increase your credit score as quickly as possible to reach the 700 level
The question is: what do you need to have in order to reach that high level?
Of course, you originally start out with a good credit score but it is the overall transactions throughout your financial transactions that affect how your credit score if formulated. An impeccable payment history will help you reach your goal. But it is more than just your payment history that you will need. Your credit record will also need to be free from any claims and judgments of any sort.
If there are any serious blemishes on your records they should be removed at all costs. It is difficult, but not impossible to reach this level, if you will truly work at it. All your hard work will pay off in the long term because you will not only have the satisfaction of having a higher credit score but the confidence of knowing that all your credit applications will be approved and with low interest rates to boot.
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