Credit Score

Simple Ways to Improve Your Credit Score

Simple Ways to Improve Your Credit Score

Have you applied for car finance recently but did not get approved because of bad credit? There are numerous factors that can affect your application for loans or a new line of credit, and among these factors, your credit standing plays a crucial role.

While you may have met all the other requirements but still can’t figure out why your loan application gets declined, it may be time to take a close look at your credit score.

When you have a less than stellar credit, it may seem like you’ve dug yourself into a deep, dark hole that you couldn’t get out of. However, you shouldn’t feel disheartened because there are simple ways you can do to improve your credit rating.

While the road to recovery is not easy, the good news is, it’s not impossible. But it will take plenty of effort and discipline on your part. So, to help you get started, here are several things you can do right now to get your credit standing back in good shape.

Check your credit report.

Remember when you were in school? If your parents wanted to know how your grades were doing, they would ask to see your report card. Improving your credit rating is basically the same thing. You can start by getting a copy of your credit history.

Just check online and look for sites, like creditsimple.com.au or creditsavvy.com.au, which offer this kind of service. It’s completely free, fast, and easy.

Look for possible errors.

If you think there are some mistakes on your credit report, you should carefully examine them and dispute these errors when necessary. The good news is that most credit bureaus and credit providers have set up a standard process to handle disputes for errors found on credit reports.

Pay your bills on time.

Staying on top of your finances can be overwhelming at times. But it’s very important that you track all your bills and pay them on time. Missing payments can put a dent on your credit standing and lower your credit score over time.

Usually, when you forget to pay a bill, after 30 days, a credit bureau will be notified, and this may affect your credit rating. So, to avoid this, you can set up arrangements like an automatic payment system from your bank to make sure you never fail to pay your bills on time.

Reduce your credit card balance.

One of the effective ways you can boost your credit standing is to pay down your credit card balances. If possible, keep your balances low, even those small balances as they may become a nuisance over time, especially if you have more than one credit card. This way, you can avoid saturating your credit report so many balances.

Use credit to your advantage.

While it may seem counter-intuitive to have outstanding credit, when you consistently pay them and avoid defaulting, this will have a positive impact on your credit score. When you show that you are not falling behind on your payments, it will show that you are a responsible borrower and can be trusted because you can pay your debts.



These are just some of the simple ways to get your credit standing in better shape. When you have reached a point where your credit rating is at a good spot, your chances of getting approved for loans will be higher than before.

Have you found other ways to improve your credit rating? If so, we’d love to hear from you. Please share your tips by leaving a comment, so that others may benefit.

 


Does your credit score affect your amorous pursuits?

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How many would ever attack their credit score to their online profiles that they create for dating? Not many but little do they know that their credit score might play an even bigger role in shaping romantic relations. When you talk of a credit score, you actually don’t just ascertain the amount of money the person has because it is more a way to know about a specific person’s attitude towards money and the responsibility he shares in this era of debt.

Previously, when people got married during their early 20s, they never spoke about their finances with each other. But times have changed now and when you meet someone who is in their early 20s and you invite them to a party, they arrive with almost a closet of financial stuff and this proves that money has always been important in the field of dating.

However, there are few studies which show how the mentality of people has changed about their finances. As per a recent survey done by Bankrate.com, it was seen that 2 among 5 adults are of the opinion that a person’s credit score would have an impact on the interest of a person who is dating the person. In fact, this figure includes 48% of the college graduates and 50% of the people with an annual income of $75,000 or even more than that.

As per a research by Federal Reserve, people with the best credit scores are most likely going to be engaged in committed relations and the more is the discrepancy between the credit scores of the couple, the more likely it will be for the relationship to end. This kind of result arrives because the initial scores show a constant credit usage which thereby leads to financial distress. So, as we see, people are giving more stress on credit scores before they are going on for a love relationship. There is greater importance on finances and scores.

According to a credit analyst of Bankrate, Mike Cetera, the results of the survey were definitely interesting but if more and more people get serious about knowing their credit scores and understanding them, people will gradually know how important it can be to take good care of your credit score in order to stay successful.

However, whenever you have a low credit score, there are many ways in which you can improve your score so that you are not seen as a risky lender when you approach a lending institution for a loan or an insurance policy. You might have been struggling with your medical bills and that could have spoilt your credit score. Whichever reason it may be, you should avoid hurting your romantic relation with your spouse.

Nevertheless, a better way in which you could determine the financial compatibility is by discussing on investing, saving, giving and sharing. As people are of the opinion that talking about your personal finances and your balance sheets are important, you should definitely give it a try to keep your love relationship going good.


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

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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!

Bankruptcy

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!


Tricks for students to build good credit score – It’s time students become responsible

One of the most interesting parts of growing up is being able to taste financial freedom but learning how to use your finances can be challenging. It is a prerequisite among students to build a good credit as in future this helps you qualify for loans at a reasonable interest rate, auto insurance with reduced premiums, affordable rental applications, mobile phone plans and even a job at a good company! So, with all that said, how do you get started? The Credit CARD Act, which came into effect in 2010, changed all the rules of the credit card game. But to put it simply, it still comes down to showing a responsible behavior while dealing with your finances.

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Credit cards are more like necessary evil; you know you need it badly when you’re out for shopping but once you start misusing it, it backfires you in the form of outrageously high interest debt. So, if you don’t want to get tied down by the shackles of debt, here are some important ideas that you may take into consideration. Read on to know how you can build good credit.

? Be an authorized user on the account of your parents

Parents are always advised to add their student kids who are just off to college and who you don’t think are responsible enough, to their credit card accounts. The first card that a student should have is their parent’s card! The teenager should be an authorized user on the account of his parents so that they can supervise his spending activities. Moreover, this also helps students build good credit through piggybacking. In Piggybacking, a parent makes his child an authorized user of his card provided he himself has good credit. This will boost his kid’s credit score.

? Make sure you get the right credit card for you

Once a student is able to qualify for a regular credit card on his own, it’s vital for him to ensure that he takes the right credit card. He should do his homework by doing some research on finding out the credit card with the biggest benefits like lower rates, reasonable credit limits, no annual fees and clear cut billing policies. If you assess your finances and you think that you might carry a balance, opt for no-frills, low rate card. A cooler option would be a reward credit card.

? Don’t use your credit card for purchasing anything and everything

Timely payments and responsible usage of credit cards will always help you build a good credit history and also discourage the bank authorities from closing down your account due to inactivity. As soon as you get a credit card, you start a credit history and this show on your credit report. The responsible you are with your finances, the cleaner your credit report will be. But if you want to start credit, you have to continuously use the card. Think of regular expenses like groceries and other small expenses that you can put on your credit card.

? Pay off credit card balances every month

When you’re initially trying your level best to build good credit, you should try to carry no balance in your card. Make sure you pay off your balances every month and what if you can’t do that? That will clearly imply that you’re living beyond your means and that you have to curb your expenses in according to your income. A student should have a card only when he has a job or has some sort of financial support. Whenever your carry a balance, you owe interest rates and fees which thereafter leads to debt.
Being a student leaves you with improved financial responsibility. If you are eager to get yourself a credit card, make sure you follow the tips mentioned above to build good credit from the very beginning.


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

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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 https://www.creditkarma.com/, https://www.creditsesame.com/free-credit-score/, and https://www.credit.com/free-credit-score/ 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!


4 Things to Know When Taking Out a Loan for Your Small Business

Small businesses often need external financing to help them make large purchases or get through slower business periods when cash flow is low. A small business loan is one way that business owners can address their short and long-term financing needs. Before you start the process of taking out a loan for your small business, you should consider these four tips to help you prepare for the process.

Know Your Credit Score

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Image via Flickr by GotCredit

Check your personal credit scores for all three reporting agencies. To do this, you can request a free credit report at AnnualCreditReport.com. Check for errors and resolve these immediately, if possible, before beginning the loan application process. If you have payments that you’ve fallen behind on, try to bring your accounts to date to help your chances of being approved and receiving a favorable interest rate.

Your chances of being approved are greater with a credit score above 600. However, there are options for individuals with lower credit scores which offer financing at higher interest rates.

Analyze Your Financing Needs

Clearly establish what you need extra financing for. Is it for a long-term investment like real estate or equipment that will last 10 years or more, or do you need short-term financing to buy more inventory or meet regular expenses? This will direct you to the options that you’ll need to evaluate to meet your business’s needs.

Evaluate Your Loan Options

If you need a short-term loan, inventory financing and loans to increase working capital are available from traditional lenders like banks and credit unions. There are also alternative financing options like merchant cash advances, which help businesses get short-term loans in as little as 24 hours to quickly resolve cash-on-hand shortages. To obtain a merchant cash advance, a business leverages its future revenue. These loans typically carry a higher interest rate and fees. For business owners with low credit scores or serious funding time constraints, online lenders like Bad Credit Business Loans can represent a viable option for their business needs.

To invest in areas like real estate, make large equipment purchases, or undergo considerable expansion, you will most likely need to seek out a long-term loan. There are also special small business loan programs available from the Small Business Administration, many of which are specially designed to help you grow your business and often offer more favorable interest rates and repayment terms.

Prepare Yourself for the Process

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Image via Flickr by thetaxhaven

Go over your financial statements to make sure everything is up-to-date and in order. These documents show your business’s profitability, as well as the assets available as collateral for your loan. If you’re planning to expand, you’ll need to have a well-crafted business plan and marketing strategy. This will prove to a potential lender that you’ve prepared well for a successful expansion. If you need to, enlist the services of a professional consultant to help you with these documents.

Use small business loans responsibly, and do not take on more debt than you can handle. Small business loans are helpful tools that allow businesses to grow and contribute more to the local economy by hiring additional employees and offering better services to their customers.


When is the Best Time to View Credit Reports?

There are a lot of common myths when it comes to credit scores and obtaining credit reports. Some of these myths include, ‘checking your credit report will lower your credit scores,’ and ‘viewing credit reports is expensive and unnecessary.’ These myths, of course, have since been discovered as untrue, and more and more people are wondering what is actually right when it comes to credit reports.

The truth is there are a few times in a person’s life when it is not only beneficial, but very important to get their free credit reports from CreditSesame.com or Wallethub. Getting credit reports at these times can help anyone make better financial decisions, reduce and avoid debt, and plan better for their future. Anyone can use these tips to help them decide when the best times to get their credit reports are. Here are some of the best times to view credit reports.

When is the Best Time to View Credit ReportsRight now

It has been said that there is no time like the present. People who have never checked their credit reports or have not checked their credit reports in a year should check them right away. A lot of changes can happen to a person’s credit report over the course of a year, so a good rule for anyone is to check their reports annually to make sure they are still on track to meet their financial goals.

When getting ready to take out a big loan or line of credit

Taking out a loan or getting a new line of credit is a big financial change. These changes almost always effect a person’s credit reports, and people who are unaware of what is on their credit reports say may not be as prepared as they should be to apply for a loan or line of credit. Credit reports can help people become the most prepared so they can understand not only what they need to do to get their loan or line of credit, but also what they will need to do to pay off their loan or maintain their credit.

When planning a savings budget for the future

Saving for the future is something everyone does, or everyone should be doing. Saving for the future allows people to live comfortable throughout their life and prepare for their children’s lives. When planning out how to save for the future, credit reports can be a big help. Credit report information can help people make a plan for saving and create a more stable financial future.

When some unusual activity happens

Sometimes there are unusual activities that happen to a person financially. A couple examples, include being turned down for a loan or receiving an unusual bill. These may be small misunderstandings, but they could be a red flag for a bigger issue. Checking credit reports can rule out that those situations are identity theft or fraud.

When trying to get out of debt

Everyone has some debt at one point or another, but having too much debt can cause serious financial issues. Anyone who wants to make a plan to get out of debt should start with their current credit reports.

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The Three Steps to Fixing Your Credit

There are a couple of things that you need to know about having less than perfect credit  The first is that there are more people out there whose credit profiles are not nearly as awesome as they’d like them to be—so there is no reason to feel embarrassed about your score or situation. The second is that credit scores change all the time. The credit you have now is not the credit you’ll have next month or next year. This means that you can fix your situation.

Step One: Finding Your Starting Place

The first thing that you need to do is get copies of your credit reports. You are entitled to at least one free credit report every year from each of the three major credit bureaus: Equifax, Experian and TransUnion.

It’s important to understand that accessing your credit reports does not necessarily mean learning your credit score.

Once you have your credit reports, you’ll want to make sure they are absolutely accurate. This means going over every detail and making sure that it is correct. If you see something that is even a little bit off, you need to dispute that detail with the reporting bureau. In addition to raising your credit score, it is important to get a clear and accurate idea of how much work you are going to need to do.

building-creditStep Two: Fixing Bad Credit

Most of the time, the key to fixing bad credit is getting back on track with your bills. Don’t worry about the payments you’ve missed in the past. You can’t do anything about those now. What matters is that you create a positive and steady payment plan for your future. It is also important that you work very hard to reduce your debt to income ratio. Your debt to income ratio is a big factor in your overall credit score. It is what lenders look at when you apply for loans or financing.

The best way to reduce your debt to income ratio is to increase the amount of money you send in to your creditors each month. By now you already know that you need to pay more than the minimum amount due if you ever want to get out of debt. Even $5 more toward that balance is a good thing. A better way to do it though, is to take your minimum amount due, add however much you are charged in interest every month and then tack at least $10 (though 10% is better).

If you have a lot of bills or if you’re worried that you won’t be able to afford to make even your monthly payments each month, don’t panic. Many creditors are willing to work with clients when it comes to things like interest rates and minimum amounts due. They’d rather reduce your interest rate than lose you as a customer. If this process intimidates you (or if you don’t have time to call and haggle with all of your creditors), a credit repair service can reduce the stress of the process. These companies negotiate with creditors on your behalf and help you set up budgets and payment plans that you can afford to keep.

Step Three: Building Good Credit

Don’t wait until you are out of debt to work on building good credit for yourself. You need to work on both simultaneously. Yes, paying down your debt and creating a positive repayment history will accomplish part of this goal. The other part, though, is proving that you can handle credit responsibly. The easiest way to do this is to open a secured line of credit with your bank.

If you are willing to work hard, you can fix your credit. It won’t happen overnight. It might take a few years—but it will happen.


Your Credit Scores: How Much Do You Know About Them?

How often have you heard the term “credit score”? Perhaps— many a times. Yes, you know that it will be one of the key factors considered by lenders when you are looking for loans of any kind—be it cars, mortgage, home improvement or anything. However, are you exactly aware of the regulations behind them? Are you sure that you are not confused about any of the aspects of credit ratings? If no, then read on, to know further.

Provided below is a lowdown of a few nuances of the all-important credit scores—something aimed at helping you with better understanding of your credit or FICO scores.

These scale of the credit scores

The scores generally vary from 300 to 850. It can well be understood that 300 is a very bad and 850 is a very good score. A sufficiently good score for securing an auto loan is around 720. However in order to qualify for a mortgage, you should better 760. You do have the right to know, why a certain lender has rejected your loan application. Similarly you might also ask him why you have been offered lesser than the best rate. They should be totally transparent about the range of scores they have considered (many of the lenders use VantageScore that has a range of 501 – 990).

The Three Bureaus

The three credit bureaus only generate the credit reports. They do not judge your scores and give directions to the lenders whether or not to accept your loan application. They are simply in charge of laying down the history (how well or poorly have you been able to manage your finances like loan repayment or credit card bills etc). Equifax, Experian and TransUnion are the three major credit bureaus. It’s the companies such as VantageScores and FICO who mark you, thereby indicating lenders whether at all it is risky to deal with you or not.

Credit_CardFree Credit Watch

One of the biggest myths attached to credit scores is that you can find out about your scores for free from some websites. You can secure a rough estimate of your scores from these free sites (these scores include those marked by FICO and VantageScore as well as the PLUS scores by Experian) but only when you are willing to subscribe free (on a trial basis) to a credit monitoring service. And, the catch is—if you don’t unsubscribe within a period of 7 days or so, the site might charge you a certain amount of money.

The Credit Card Age

As against popular belief, your credit rating does not “age”, once you close an account. For instance if you close an account in a particular bank, the credit card of that bank will “be a year older” next year. John Ulzheimer, a noted credit expert says: “Not only does it still count in your score, but it continues to age.” (Sources: money.usnews.com)

The closed account stays in your credit report for only a good 10 years. However, if your scores are negative, they will be deleted after 7 years– since, negative rating can only be reported in the history for seven years.


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