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10 Dirty Tricks Credit Card Companies Play
The credit card companies make billions each year in legitimate interest charges and fees, but are under constant pressure from the shareholders to increase their earnings. To make this extra money the credit card companies sometime adopt some dirty...
Loan Options For The Bad Credit Borrower
For several years if not decades, credit collectors have been telling individuals that if they don't pay and pay on time. They'll never get another car loan, credit card or mortgage. Honestly even with terrible credit, even after bankruptcy you can...
Online Credit Report
Online credit reports are an easy way to learn what potential
lenders will see about us, before we apply for a loan or credit.
All too often, our early mismanagement of credit, like during
our irresponsible youth, winds up hurting us for...
The True cost of Credit
The current house price boom has perhaps passed its peak as I write this, but that doesn't stop the mortgage companies from offering yet more new and tempting products that look like good deals for a consumer. But be warned - The standard mortgage,...
Why You Should Use A Prepaid Credit Card?
Prepaid credit cards have been growing in popularity over the past few years. But despite the 'credit card' name, no credit is actually involved. Here's how it work's.
When a standard credit card is used, you pay for the convenience of being able...
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How Credit Scoring Works
The all important credit score! It determines the amount of loan you can get, it determines the interest rate at which you are charged for a loan, etc. Your credit score plays an important figure in your financial life. So what goes into making that all important score of yours? How does it increase, how does it decrease and what are the factors that go into its calculation?
Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise
your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.
Your credit score and credit report is formed on the basis of your credit history and you need to have at least one account which has been open or updated in the past six months to get a credit score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.
All in all, if you can pay for all your debts in a timely and consistent manner and not take more debt than you can handle, your credit score shouldn’t be able to trouble you in life. So take care and be wise with your finances.
About the Author
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real estate portal for those looking to buy, sell or rent a home.
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