Credit Rating

Factors that Leave an Impact on the Borrowing Capacity

A few key factors tend to influence your borrowing capacity under all circumstances. It’s actually a single important factor that helps in determining whether you can own a home or not. Gaining a fair idea of how much you can borrow is of great help when you’re considering multiple properties simultaneously.

Once you gain a fair idea of your actually borrowing capacity, you’ll be able to adjust your property search accordingly. You may even achieve a few options that fall within your budget once you do your research. Many of you may simply be wondering about the factors that can prevent you from achieving the desired loan amount and the maximum amount that you can borrow.

Find out ways to enhance your chance of borrowing more:

Financial Commitments:

Prior to issuing a home loan, a lender has to determine the extent of mortgage repayment that you can afford. Apart from your income, the lender is bound to check out the commitments you have towards other outstanding debts.

A greater repayment capacity will enhance your power to borrow, more so, when you co-own a property with a relative. Your financial commitments may include vehicle financing, credit card repayment, repaying loans and other debts.

Loan Repayments:

The amount that you can borrow may be easily determined by the interest rate and the loan term that you sign up for. As the rate of interest falls, your repayment amount also gets lower. By opting for a short-term loan, you’ll end up saving much of the loan interest. You must accept a loan repayment term that matches your financial situation.

Living Costs:

Your loan application only gets approved when your lender does through your living costs. School fees and cost of child care are among charges that increase your living cost. Once the lender is able to identify your borrowing capacity, it becomes much easier for you to sort out these expenses. Even after maintaining a certain living standard, you’ll need to work towards repaying the mortgage.

Credit Rating:

Your credit rating is certainly an important factor that determines your borrowing capacity. By proving your worth as a reliable borrower, you’ll be able to convince the lender for a much higher loan amount. However, you’ll also need to repay the loan amount within the specified time-frame. Your loan application may be rejected after you’ve defaulted on repaying your utility bills and credit card bills in the recent past. Before even visiting a lender, you must check out free copies of your credit report for free from each of the 3 credit reporting agencies. All of the red flags appearing in your credit reports need to be compared and the discrepancies need to be resolved in any.

Asset Evaluation:

In an attempt to identify your actual loan requirement, a lender can run a credit check on the assets owned by you. All of the vehicles that you own as well as your investment options might affect a lender’s decision. These factors hold considerable ground in determining your loan requirement.

Keeping these factors in mind, you’ll need to work on all areas of opportunity just to enhance your borrowing capacity. This way, you’ll have more options of comparing loan and fresh job offers that come your way.

Simple Ways To Build Up Your Credit

It’s true that bad credit can be harmful to your finances. After all, if suppliers see on your record that you have bad credit, it’s unlikely you will be able to apply for loans. And it can harm your chances of getting a mortgage in the future. But there is also another credit which isn’t so good, and that is no credit. If you haven’t paid for many bills via direct debit before, or haven’t had a credit card, you might have no credit behind you. And then you will also struggle to take out loans and mortgages in the future. However, there are some ways you can get a good credit rating. In fact, here are some simple ways to build up your credit.

Get a credit card

It’s a good idea to get a credit card if you want to build up your credit score. After all, if you make a few purchases on the card, and pay them back timely, it can help you to earn some good credit. Of course, it’s best to make sure you get a card which has a good interest rate. After all, you don’t want something which will accumulate interest almost straight away. In fact, you ought to get a credit card via your bank. That way, you know it’s a reliable credit card which won’t get you into debt. And as you already have accounts with them, you should be able to log on and manage your current and credit accounts at the same time. Just make sure you only stick to one credit card for the sake of your finances.

Your Credit

Build Up Your Credit

Image Credit

Find a no credit loan  

It can be hard to build up credit when you keep getting rejected for loans as you have no credit. But there are some loans out there which you will be accepted for with no or bad credit. In fact, you can get ones like a no credit car loan which will ensure you build up credit as you pay off your vehicle. Of course, you can expect a significant interest rate with one of these loans. But even if you take it out for a year or two, it will soon build up your credit if you pay it on time every month. And then you will be able to take out more loans in the future due to your good credit!

Get a loan out with a partner or a friend

You might struggle to build up credit on your own as you will keep getting rejected due to you’re no credit rating. But if you join up with a trustworthy partner or a friend, you could soon be accepted. And then you can earn good credit at the same time as them. It might be a simple phone bill that you take out together. Or you can get them to add you to the household bills. And then you will soon be building up credit so you can get loans out on your own in the future! Just make sure you trust them, so you don’t end up regretting the decision.

And remember to pay bills on time. Every time you do, you are taking steps towards a great credit score!

Credit Scores: What Hurts Them?

Have you ever tried to get something on credit but got “declined” for it? If so, it probably meant that you had a low credit score. In a nutshell, credit scores are what companies use to decide whether someone has a low enough risk to offer finance. Scores get calculated on numerous factors, primarily a person’s past credit history.

Each company that offers credit has different ways to “score” a person’s credit. Almost all lenders will consult credit reporting agencies to get a person’s credit history. Using that information alongside their own lending criteria is ultimately how a business decides whether someone is credit-worthy (to them) or not.

As you may have guessed, your past credit history will have a significant impact on your likelihood to get finance or borrow money in the future. Have you ever wondered what could affect your credit score in a negative way? The following gives you an insight into some of the things that have the biggest impact:

Image Obtained From Flickr Cafe Credit via Flickr, under the Creative Commons License

Late payments

Let’s face it; almost all of us are guilty of paying something late such as a credit card repayment. Such information gets recorded on a person’s credit history and can stay there for as long as seven years, believe it or not!

How long you were late on your payments, and how often, will determine how much damage gets done to your credit score. For example, let’s say that you’ve missed a payment by a couple of days. That will seldom have a noticeable impact on your rating. However, if you’ve got several late payment markers where you’ve not made a payment for at least 30 days can be damaging.

Whenever you take out credit cards, loans, or finance, it’s crucial you make your payments on time. If the repayment date is inconvenient for you, many lenders will allow you to alter your repayment date.

No payments

Have you decided that you don’t want to pay your debts back? If so, you’ve virtually guaranteed a catastrophic credit score for the next few years! Even if you decide to pay your bills again, the damage will have already been done if you’ve not paid anything for several months.

Image Obtained From Creative Commons Images

Of course, you might wish to file for bankruptcy. However, that’s never a guarantee that you won’t have to pay anything back to your creditors! In short, it makes financial sense to take the no-stress option of just paying your bills when you’re meant to!


The thing about bankruptcy is that it’s a last-resort option. You should only consider it when other alternatives such as consumer credit counseling aren’t viable options. When you become bankrupt, no mainstream lender will find you creditworthy for several years.

You might come across lenders that specialize in high-risk individuals if you wanted credit in the future. But, they’ll charge you sky-high interest rates and history could end up repeating itself.

Losing your home

Failing to keep up with your mortgage payments? If so, your lender may have no choice but to foreclose on your property. As you can appreciate, such an action is rather devastating, and banks try to avoid doing that if they can. However, they also have a business to run, and they can’t just give away money!

Image Obtained From Wikimedia Commons

As a result, if you can’t work things out with your mortgage provider, they might have to foreclose your home. There will also be a record of that on your credit history, making it almost impossible to get another mortgage for the foreseeable future.

Maxing out your credit cards

Are you taking “buy now, pay later” to the extreme? If all your credit cards are at the limit, you aren’t an attractive prospect to most creditors. That’s also true if you only make the minimum repayment amount on your cards each month!

Things get even worse if your interest charges take you over your limit (it does happen)! These days, credit cards are straightforward to get, and it’s often hard to resist using them. It can be harder to pay them back, especially if you’re broke.

Having only one loan or credit card

As strange as it sounds, only having one loan or credit card can have a negative impact on your credit score. Why is that, you might be wondering? The reality of the situation is creditors want to see what you’re like paying back several forms of debt. Having only one source of credit doesn’t give companies much to go on when determining your creditworthiness.

How to improve your credit score

There are lots of articles and guides online that describe how you can improve your chances of getting accepted for a loan or credit card. In fact, there’s a few here on this very blog! For the purposes of this post, I’ll outline a few of the most common ways to improve your credit conundrum:

  1. Check your credit score

Do you actually know what state your credit score is at these days? If the answer’s no, it’s time to do some research. Look at what creditors see by obtaining your credit profile. That way, you can judge what is likely to be causing you problems. Plus, you may even spot mistakes that could be hampering your score.

  1. Get help from a credit repair company

Sure, there are some things you can do yourself to improve your credit score. But, there will be times where you need help from some industry professionals. Take a look at these reviews from CreditRepairCompanies and choose a provider that is best placed to handle your particular credit score situation.

  1. Pay off your debts quicker

Credit cards can often take longer to pay off because of compounded interest getting applied to your accounts each month.

Make a concerted effort to pay off your cards quicker. Even just an extra $10 a month per card on your repayments can make the world of difference!

  1. Don’t borrow any more money

If you want to buy something expensive, the best thing is to be patient and save the cash for it instead.

Further borrowing will only worsen your credit score and potentially leave you short of available money each month.

  1. Earn more money

Even if you don’t have much credit, many companies will be reluctant to lend to you if you’re not earning a good salary.

The answer to solving that problem is simple: get a better paying job! Alternatively, get a second job to do in your spare. Once you can prove that you’ve got more money coming in than going out, you’ll have an improved credit score.

Thank you for reading today’s blog post!

Track Your Credit Score Effortlessly So You Can You Can Borrow Money!

credit score

Too many people are unaware of their own Credit Score and misunderstand fully why we have them. Your credit score can have both vast rewards and exponential pitfalls, which effect an adult in almost every aspect of their lives. Taking an interest in what your Credit Score looks like and what effects it, will make it more likely that you can live the life you want and not just what others say you can!

Your own personal Credit Score, which you can get for free & well as tons of free information about improving your credit score, is produced by a system that calculates how reliable one is with their money and determiners how likely a person is to repay money to a Lender. The reliable likenesses is determines by many factors like your overall debt, types of, and how many, bank accounts you have, number of late payments and how old the current information is from when you are asking to barrow money from a lender. All significant financial history is recorded on a Credit Report and determines your overall Credit Score from 300-about 800. (The higher the number, the better the Credit Score.) Lenders can be individuals or companies that are allowing you to take out a line of credit in either cash or check form. This could be bank, a school, a private or commercial renter of apartments or/and houses. Which can result in all sorts of influences of your lifestyle?

credit-scoreOne in ten Americans are denied a job because of their Credit Score.  There is a source that can help people get cash even with bad credit, online payday loans no credit check, however this doesn’t work for all. Many people with poor credit are unable to get a car, cell phones, or cannot barrow the money required to buy or put a down payment on, a house! Even the amount of interest on the borrowed money that the lender demands you to pay back is a direct result of your credit score!  All of these factors, and so much more, can drastically effect the chances of being able to improve a credit score. Furthermore if you do not even know what your Credit Score is, how do you know if you need to improve it? If you have not looked at what is on your Credit Report you are under informed on how curtail everyday financial decisions are and which decision effect your future finances.

By using online sites and applications to track your Credit Report and Credit Score using free tools, like,, and not only will you know exactly what effects your score, you can also access your real time Credit Score! Not only do these sites track your credit score & give you free bureau reports, but they also offer top rated advice & additional tools to help you make your credit better.  Many advantages like these are accessible online,  and are reliable tools that need to be used to ensure healthy credit.  Learning about your credit, and the best ways to improve it is also imperative to keeping your credit healthy!  Useful alerts from these major credit report companies are able to notify you of any unauthorized information that has been recorded as an added defense to keeping your credit healthy!  With all these major tools at your disposal, not only tracking your credit, but keeping it health is much easier than ever before!

Managing Your Finances: Why Your Credit Rating Is So Important

In today’s digitized world, everything, including money, has been given the ability to be transported through electronic signals, going in and out of several computers, before finally landing, hopefully, in the right hands. In the last decade, the use of credit cards has been steadily on the rise. With people constantly now purchasing with credit cards, it is important to keep your finances under good management. It is easily just as important to keep track of your credit scores and make sure that they are in check.

A few years ago, many people would find constantly managing their finances quite a hassle. This would be due to the fact that to constantly keep an eye on your finances, one would also have to constantly make several trips to their respective banks. This makes it very hard for people whose daily schedules are constantly kept full by other appointments to make regular trips to their banks. This is why many people have turned to doing their banking online.

"Credit rating" handwritten with white chalk on a blackboardManaging finances

The convenience of online banking when managing finances makes even the most frequent online shoppers better at managing their finances. With the convenience that the service provides, the fact that it allows users to check their financial information as often as they want allows individuals to practice their skills in record keeping.Having 24/7 access to records can make it easier for you to keep track of your spending as well as spot errors on transaction records. It also enables you to secure a better credit score, allowing you to make more purchases using your credit cards.

You and your credit score

Your bank keeps careful track of your transaction records, so why shouldn’t you? Keeping track of one’s finances is crucial to maintaining a good credit score. When you use your credit card, you’re essentially borrowing money. Your credit score is determined based on five factors: your previous credit performance, the current level of your indebtedness, the length of time your credit card has been in use, the types of credit available to you, and your pursuit of new credit.

Your credit rating is most affected by how well you handle your debt by paying it off. To boost your credit rating, you should be able to pay off your debts quickly, maintain low levels of indebtedness, and refrain from applying for additional credit constantly.

Importance of your credit rating

When you apply for a utility, mortgage, or loan, the lender will check your credit rating. Depending on your rating, the lender will resolve what risk you pose to them. If you have a poor credit rating, lenders may not shun you entirely but lend you money at a higher rate instead. Therefore, if you are planning to use your credit for a major investment in the future, it’s important to achieve a good credit rating now.

Make you loan paymentson time and for the right amount through online banking to avoid getting in debt and into potential trouble. If you have an outstanding debt, keep it as low as you can and never ignore overdue bills. Pay attention to and improve your credit score to make sure you’re always in good financial health.

Tips on Building Your Credit Rating in College

Credit Rating in CollegeWhether you have just entered college or if you’re already enrolled and you’re seeking ways to secure your financial future, building your credit rating can help in many areas of life. When you’re in college, building your credit rating is possible regardless of your age with the proper support and the right opportunity. Before you begin to build your credit rating, it is important to determine your own personal goals for your financial future and your capabilities on affording your credit card bills each month once you’re approved.

Before Building Your Credit Rating in College

Review the budget you have available to spend each month based on your income, current bills, and tuition costs. Before you apply for a credit card, determine why you want the card and how much you plan to spend personally each month to help building your credit score.

By spending money using the credit card each month and paying the bill on time without any delay, your credit rating will improve regardless of what you’re using the card for when making a purchase. You should also plan on using your credit card for payments you already make such as paying your phone bill. So, you should create a plan on what things you’ll use your credit card for and what things you won’t.

It’s also ideal for you to get a steady source of income through employment as this would heavily benefit your credit card application. Even when going for the lowest credit limit, they could still deny you if you don’t have a source of income.

The Benefits of Building Your Credit Rating in College

Building your credit rating and overall score in college can help assist you if you want to take out a loan for a vehicle, home, or even a personal business investment once you have graduated. Having a higher credit rating means you’re also capable of being approved for loans that have lower interest rates, ultimately saving you more money as long as you’re capable of paying all of your bills on time. Investing in a home or launching a business is entirely possible if your credit rating is high enough by the time you graduate or receive your degree from college.

In addition, it can also theoretically be useful when applying for positions that conduct background and credit checks on potential employees.

Find a Student Credit Card

Applying for a credit card for students is often possible as long as you can provide proof that you’re a student. If you can provide proof of your income as well, searching for a student credit card is simple and does not require the signature of a parent or another guardian to have the card approved as long as you are over 18. Student credit card offers may be available on a college campus you’re attending as well, so make sure to inquire with your college. You can also visit a local bank or compare various types of student credit cards that are available to you right from home online.

Ask Your Parents to Co-Sign for a Credit Card

If you’re unable to sign for your own credit card, you have the ability to ask your parents to help by co-signing for the card with your name on it. Your parents must, of course, trust you to pay off the credit card bill each month before co-signing for the card, as the responsibility of the bill will be theirs if you’re unable or unwilling to pay for the charges yourself.

If you’ve shown financial responsibility while you were in high school, this shouldn’t be too much of a problem.

Use a Secured Credit Card

It is also possible to apply for a “secured credit card” if you’re not qualified for a traditional card and if you do not have relatives who will help to co-sign for a card in your name. A secured credit card is an option that allows you to invest a specific amount of money into an individual savings account in exchange for the card itself. By depositing a trusted amount of money, you’re able to use the card to help with improving your credit rating. A secured credit card can be applied for by using trusted banks and institutions online as well as by applying for the card in person at a local banking branch.

Comparing Credit Card Offers Online

Searching for the ideal credit card with the lowest interest rate for students is possible by browsing online to compare the available options. Looking for a credit card that is right for you online is a way to read and review all card terms and conditions while also comparing interest rates and credit limits, based on your qualifications, age and whether being a student gives you an advantage. Comparing credit cards online is ideal and can also save time regardless of the type of card you’re interested in and your purpose for applying for one.

Using Your Credit Card Responsibly Once you’re Approved

Once you have been approved for a credit card (co-signed or to you individually), it is essential to be responsible at all times regardless of how much the card is used. Any time you spend money on your credit card, be sure to pay the monthly bill in a timely manner. When you avoid paying your credit card bill on time, it may negatively impact your credit score and rating, causing it to drop. Ensuring you pay the bill on time every time will also help you boost your credit rating instead. Using the card for items you need to purchase is highly recommended, as it will allow you to stay within your budget so you’re never incapable of paying off your credit card bills.

This article was written by Donald Turner on behalf of Kanetix. When searching for a credit card, make sure to consider checking out Kanetix and see how they can help you find the right credit card.

Check Your Credit Rating – Poor Fico Credit Scores Cost

Check Your Credit Rating – Poor Fico Credit Scores Cost

There have been good signs that the economy has bounced back but this should not keep you from protecting a good name and reputation within the community. The creditors these days are implementing more strict policies that more and more Americans Canadians are being disqualified from getting loans and financial credit. This may well be from their banks , credit unions , credit cards or third party financial sources and institutions such as auto dealers and their car lot auto financing services and divisions.

What is Good Reasonable Fico Score:

All loan providers that include credit card issuers, banks, mortgage lenders and auto finance companies have revamped the FICO score in screening their loan applicants. Individuals with low scores are typically not allowed to loan or are given mark up rates that are very high. The then 620 FICO score that served as the baseline for enjoying credit, benefits, goods and employment has been raised to 740. That means the individuals with credit score lower than this baseline cannot engage with loans. There are even individuals who score high in their credit standing but still experienced reduced credit line and there are even individuals who failed to maintain their credit card accounts and equity lines.

Improve Your Fico Score It’s to Your Credit History Benefit:

People are aware of the vitality of FICO score in today’s dealing so more and more individuals are looking to improve their credit score. And these have greatly contributed to the rise of credit repair, credit rehabilitation or credit restoration services.

Credit Profiles Profiling:

Credit profiles in the US mostly contain erroneous entries or omissions that have gone against the credit standing of seventy eight percent of the individuals. People who are not able to fix these errors might go for credit service organization (CSO) to help them out.

Standard Rules Regulations in the Credit Credit Reporting Industries:

Various CSO’s have been focusing in repairing credit standings in the same manner as making out thieveries. Typically these organizations look into laws endorsed by the congress to argue negative, erroneous, obsolete and fraudulent details in the credit profile of their clients. The common acts used are the Fair and Accurate Credit Transactions Act, Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Fair Credit Billing Act. Then disputes will be submitted to the consumer reporting agencies namely Equifax, Trans Union and Experian as well as to the state, federal, private and local regulatory authorities, creditors, collection agencies, and third-party record providers via electronic, verbal and written means. CSO’s are able to send the dispute letters via the various means (electronic, verbal and written) to the different credit reporting agencies, creditors, collectors and third-party record providers in a much extended period of time as compared to other credit repair clinics that can only do the submission in a monthly basis.

Why Business Utilize the Skills Processes of Credit Reporting Agencies:

Although it is possible for an ordinary person to engage with the same activities performed by CSOs to make things more economical, CSOs are equipped with more knowledge, skills and resources which give these organizations an edge. A decent and sound CSO should have a verifiable track record of their capability to contest and change any flawed or imprecise judgments, liens, foreclosures, bankruptcies, short-sales, student loans, inquiries, derogatory tradelines, personal identifiers and other fleeting data from their client’s credit profile. The typical time frame for credit repair result ranges from thirty days up to six months. However developments should be apparent by forty fifth to sixtieth day upon initiation of the repair process.

Are Credit Reports Reporting 100 % Accurate? Appealing Inaccurate Reports Reporting:

The process of restoring the credit standing of individual is lawful. However CSOs are not run by legal attorneys. That means the advice that can be derived from these organizations may not necessarily be according to law and in case you need to appear in court these organizations cannot represent you unless they hire a licensed law practitioner.

Thomas I. Canmore

It never can be easy to obtain auto financing if your credit report and FICO score are not 100 %
Many “good” and “responsible” people seem to have unfortunate issues in their credit past

Yet you may need a vehicle for your job

You need a car for your employment but have trouble obtaining auto financing in Edmonton or Fort mcMurray ?

If you have a job in Alberta Western Canada require reliable transportation fill out a confidential credit app at Canadian Custom Credit

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