There are many advantages and benefits of having and maintaining a good credit score. If you have a credit score of 720, 740, or 760 and up, you have a good score. With high credit scores you will be able to save money each month with lower interest rates on all your financial products.
You will also notice you get a better reception by the car salesmen, home lenders, and even insurance salesmen when you step into their office. They know they have a better chance with closing the sale with you because they can get you approved for a loan at a low rate that you can afford and one that you will be happy with.
A above average credit score will entitle you to demand the best interest rates on home loans, home equity loans, credit cards, car loans, personal loans and more. And in most cases lenders should have no problem accommodating your requests. You've earned your credit now put it to good use.
Another of the advantages of having good credit or good scores to be more precise since you do have to maintain a good score with all 3 of the major credit reporting agencies - Equifax, Experian, and Transunion - is that potential employers will not turn down your application because of your credit history. You stand a better chance of landing a job with a high score as opposed to a low score.
Even if you do not agree with the way most companies use credit scoring information, if you want to get into their game, you have to play by their rules.
And when you do play by their rules, you get to enjoy the benefits of low rate balance transfer offers even when credit is drying up for less than qualified applicants. You still get the perks of being disciplined and not overextending yourself and spending more than you could afford to pay back.
As you can see, there are many benefits and advantages of having a good credit score. To get into the high 700+ credit score range, pay all your bills on time. Stay on top of the due dates like a hawk. Only use a small portion of the balance - less than 25% is ideal. Keep accounts open - 10 to 15 years at a minimum. And don't apply for credit you do not need. Follow these simple steps and you'll be on your way to the best deals on credit anywhere.
Article Source: http://EzineArticles.com
Sunday, June 6, 2010
Tuesday, May 18, 2010
Carry a balance? Banks may be gaming your payments
NEW YORK (AP) -- Credit card issuers are still playing "gotcha" with customers.
Landmark reforms this year were intended to stop billing practices that gouge unwitting consumers. Yet banks are hanging onto a tactic that ensures borrowers rack up as much as possible in interest charges.
The practice in question comes into play whenever portions of a cardholder's balance carry different interest rates. Cash advances, for example, can come with dramatically higher interest rates than purchases. At Bank of America, it's about 24 percent versus as low as 13 percent.
From the consumer's perspective, it makes more sense to pay down the higher interest rate balance first, because it rises at a faster pace.
Before the reforms went into effect, however, banks would apply any payments first to balances with the lowest rate. This ensured that the costlier balance kept fattening up for as long as possible.
The tactic was among those targeted by regulators. The new credit card law, which took effect in February, specifies that any payments above the minimum must first be applied to the balance with the higher interest rate.
The key phrase? "Above the minimum"
That means minimum payments can still be applied to the lower rate balances.
And that's exactly what the biggest credit card issuers are doing, including American Express, Capital One and Chase. Customers can't request that a payment be applied any differently.
Although it's legal, the practice undermines the spirit of the credit card reforms, notes Odysseas Papadimitriou, CEO of CardHub.com.
"Why should any part of a payment be applied in an unfair way, especially for people who can only afford to make the minimum payment?" said Papadimitriou.
The loophole was probably the result of regulatory compromise by lawmakers, said Ruth Susswein of Consumer Action. She said most customers don't realize that banks apply payments to their disadvantage, and are infuriated when they find out.
Bank of America, the country's largest bank, noted that the policy is clearly stated in its cardholder agreements and did not provide further explanation. The Charlotte, N.C. company earlier this year touted a new effort to build customer trust with more transparent policies.
American Express spokeswoman Desiree Fish also noted that the policy is standard industry practice, and is compliant with the reforms.
Minimum payments are usually about 2 percent to 4 percent of the balance, or a flat dollar amount. At Discover, for example, it's 2 percent of the balance or $40, whichever is greater.
At Discover, the cardholder agreement states that any payments up to the minimum will be applied "at our discretion, including in a manner most favorable or convenient for us."
Spokesman Matt Townson confirmed that meant payments go to the lowest interest rate balances first.
If you have a consumer comment or question, please e-mail Candice Choi at cchoi(at)ap.org.
Candice Choi, AP Personal Finance Writer
Landmark reforms this year were intended to stop billing practices that gouge unwitting consumers. Yet banks are hanging onto a tactic that ensures borrowers rack up as much as possible in interest charges.
The practice in question comes into play whenever portions of a cardholder's balance carry different interest rates. Cash advances, for example, can come with dramatically higher interest rates than purchases. At Bank of America, it's about 24 percent versus as low as 13 percent.
From the consumer's perspective, it makes more sense to pay down the higher interest rate balance first, because it rises at a faster pace.
Before the reforms went into effect, however, banks would apply any payments first to balances with the lowest rate. This ensured that the costlier balance kept fattening up for as long as possible.
The tactic was among those targeted by regulators. The new credit card law, which took effect in February, specifies that any payments above the minimum must first be applied to the balance with the higher interest rate.
The key phrase? "Above the minimum"
That means minimum payments can still be applied to the lower rate balances.
And that's exactly what the biggest credit card issuers are doing, including American Express, Capital One and Chase. Customers can't request that a payment be applied any differently.
Although it's legal, the practice undermines the spirit of the credit card reforms, notes Odysseas Papadimitriou, CEO of CardHub.com.
"Why should any part of a payment be applied in an unfair way, especially for people who can only afford to make the minimum payment?" said Papadimitriou.
The loophole was probably the result of regulatory compromise by lawmakers, said Ruth Susswein of Consumer Action. She said most customers don't realize that banks apply payments to their disadvantage, and are infuriated when they find out.
Bank of America, the country's largest bank, noted that the policy is clearly stated in its cardholder agreements and did not provide further explanation. The Charlotte, N.C. company earlier this year touted a new effort to build customer trust with more transparent policies.
American Express spokeswoman Desiree Fish also noted that the policy is standard industry practice, and is compliant with the reforms.
Minimum payments are usually about 2 percent to 4 percent of the balance, or a flat dollar amount. At Discover, for example, it's 2 percent of the balance or $40, whichever is greater.
At Discover, the cardholder agreement states that any payments up to the minimum will be applied "at our discretion, including in a manner most favorable or convenient for us."
Spokesman Matt Townson confirmed that meant payments go to the lowest interest rate balances first.
If you have a consumer comment or question, please e-mail Candice Choi at cchoi(at)ap.org.
Candice Choi, AP Personal Finance Writer
Tuesday, April 27, 2010
Online Credit Repair - Have Your Credit Ratings Refurbished Quickly
Unfavorable statements on your credit report can set you back significantly with obtaining credit. You do not need to give up looking however, since it really is never too late to become credit worthy once again.
Make sure you acknowledge that online credit restoration will never take place overnight. It calls for serious determination and perseverance to get going in a clean slate once more. Although online credit repair company can significantly help with taking the work off you.
Below some easy repairing credit methods are discussed to get you rolling. But if you want quick credit repair with limited effort is it important you find a legitimate online credit repair company.
It's best to be aware of the three credit bureaus are declaring about you. Considering charge card companies really don't need to report to Equifax, TransUnion and Experian altogether, they more often than not report to 1 or all of them.
This merely signifies that each report coming from each bureau is somewhat unique from one another. This is a very important fact because the last thing you want to do is assume that one report will look like the other. You need to check out your reports from each credit agency to make sure they are the same.
Of course, you are permitted to a free of charge copy of your credit rating from the bureau if you have been completely denied of employment or consumer credit because of to your credit profile. You can check with the company to give you with the name of the credit agency, phone number and address.
When you get a hold of your credit score, look at it cautiously. Given that the credit reporting agencies develop your credit rating basing on the facts they receive from your creditors, they are never verified.
The bottom-line is the most important thing you ought to consider is ordering your credit reports. If you get an online credit repair law firm then don't waste your time as they will do it for you. But if you don't remember to buy it from every single institution mainly because you only waste time and financial resources if you only order a credit profile from one particular agency. The fee of the credit rating may differ from state to state though it is likely that the cost of your credit file is around $9.
It is your job to maintain your credit report that is a very good reflection of you. Be on the lookout for mistakes on typing, imperfect details, and outdated and inaccurate histories of your account. After examining the report correctly, list all the errors you want to challenge and the reasons why.
Seeing that bad reports are not free, remember to be thorough. You'll have two alternatives, which is to either finish the adjustment form supplied with your credit rating or craft a letter. With this form it is important to deliver a photocopy of your report with the problems circled to the credit agency who supplied the report. At the same time, keep in mind to add supporting files along with your report.
Right after submitting the paperwork and report, don't forget to maintain copies of all of the forms and the date you sent it. Routinely, the agency will investigate the dispute in the course of 30 days just before acquiring your correspondence. In addition, almost everything which is proved to be incorrect is removed.
Other ways to correct your credit is to including beneficial facts and stableness with your credit life. Even when you possess the credit, there can be a period of time when you're getting denied of credit because of insufficient credit file. You will find several lenders that do not report your history of credit to the credit bureaus. What you might do is to try asking the grantors to report the facts of your account and the background of your monthly payment for the credit agency.
You can even try making some kind of credit standing through the use of guaranteed bank cards. This type of credit cards are presented to those with absolutely no consumer credit or in the process of repairing their credit.
At the same time, it truly is well-advised to open a checking account in your bank. Doing this, would likely show your creditors that you'll be attempting to conserve so you are saving income to pay off the money you owe.
To get your credit repaired fast online check out
http://creditsonline.info/
Article Source: http://EzineArticles.com
Make sure you acknowledge that online credit restoration will never take place overnight. It calls for serious determination and perseverance to get going in a clean slate once more. Although online credit repair company can significantly help with taking the work off you.
Below some easy repairing credit methods are discussed to get you rolling. But if you want quick credit repair with limited effort is it important you find a legitimate online credit repair company.
It's best to be aware of the three credit bureaus are declaring about you. Considering charge card companies really don't need to report to Equifax, TransUnion and Experian altogether, they more often than not report to 1 or all of them.
This merely signifies that each report coming from each bureau is somewhat unique from one another. This is a very important fact because the last thing you want to do is assume that one report will look like the other. You need to check out your reports from each credit agency to make sure they are the same.
Of course, you are permitted to a free of charge copy of your credit rating from the bureau if you have been completely denied of employment or consumer credit because of to your credit profile. You can check with the company to give you with the name of the credit agency, phone number and address.
When you get a hold of your credit score, look at it cautiously. Given that the credit reporting agencies develop your credit rating basing on the facts they receive from your creditors, they are never verified.
The bottom-line is the most important thing you ought to consider is ordering your credit reports. If you get an online credit repair law firm then don't waste your time as they will do it for you. But if you don't remember to buy it from every single institution mainly because you only waste time and financial resources if you only order a credit profile from one particular agency. The fee of the credit rating may differ from state to state though it is likely that the cost of your credit file is around $9.
It is your job to maintain your credit report that is a very good reflection of you. Be on the lookout for mistakes on typing, imperfect details, and outdated and inaccurate histories of your account. After examining the report correctly, list all the errors you want to challenge and the reasons why.
Seeing that bad reports are not free, remember to be thorough. You'll have two alternatives, which is to either finish the adjustment form supplied with your credit rating or craft a letter. With this form it is important to deliver a photocopy of your report with the problems circled to the credit agency who supplied the report. At the same time, keep in mind to add supporting files along with your report.
Right after submitting the paperwork and report, don't forget to maintain copies of all of the forms and the date you sent it. Routinely, the agency will investigate the dispute in the course of 30 days just before acquiring your correspondence. In addition, almost everything which is proved to be incorrect is removed.
Other ways to correct your credit is to including beneficial facts and stableness with your credit life. Even when you possess the credit, there can be a period of time when you're getting denied of credit because of insufficient credit file. You will find several lenders that do not report your history of credit to the credit bureaus. What you might do is to try asking the grantors to report the facts of your account and the background of your monthly payment for the credit agency.
You can even try making some kind of credit standing through the use of guaranteed bank cards. This type of credit cards are presented to those with absolutely no consumer credit or in the process of repairing their credit.
At the same time, it truly is well-advised to open a checking account in your bank. Doing this, would likely show your creditors that you'll be attempting to conserve so you are saving income to pay off the money you owe.
To get your credit repaired fast online check out
http://creditsonline.info/
Article Source: http://EzineArticles.com
Credit Card Debt Settlement - How to Legally Reduce Credit Card Debts and Get Elimination by 50%
With the introduction of credit cards, many people used it as easy plastic money in shopping malls and restaurants. Although this thing is very useful in many manners, people make things massive due to their own acts. Swapping a card takes 10 seconds, but paying back that amount may take a lot 20 to 30 years.
If we talk about the repayment schedule of cards, it is very strange, like other unsecured debts. Many people are in massive debts just because of this repayment schedule. People continuously pay back in shape of minimum amounts, but cannot find any solutions and finally find their pockets empty. The minimum amount people pay against the credit card bill is the pure profit of credit card companies, which means you are paying for nothing.
As cards are issued legally with the approval of the government; then, the process of elimination must be legal. It is now possible to legally reduce credit card debts by 50% with the help of debt settlement programs. Those people who are in massive credit card debts that always want to avoid bankruptcy, but do not have more money to pay back, can eliminate their credit card debt by 50%. This easy process is done by simple negotiations and cannot affect the credit score. The purpose of this reduction is to attract people and prevent the rising bankruptcy in the country.
With the help of debt settlement programs and the government support in shape of stimulus cash, the process of getting a discount is very easy and effective. Simple negotiations can get you a discount of 50% over the outstanding balance of card.
The elimination is in two shapes, if you have a lump sum amount equal to half of your loan, you simply call your credit card company that you cannot continue with minimum amount and you want to eliminate your credit card debt. You can negotiate on behalf of that lump sum cash. The financial institutions and card companies always like to have a deal instead of a consumer that went bankrupt, which is the total loss. That is why the settlement deals are rising these days.
Debt settlement is the best alternative to bankruptcy and usually makes financial sense for consumers with over $10k in unsecured debt. Consumers can expect to eliminate 50% of their unsecured debt on average. To find legitimate debt settlement companies in your state and get free debt advice then check out the following link.
http://creditsonline.info/
Article Source: http://EzineArticles.com
If we talk about the repayment schedule of cards, it is very strange, like other unsecured debts. Many people are in massive debts just because of this repayment schedule. People continuously pay back in shape of minimum amounts, but cannot find any solutions and finally find their pockets empty. The minimum amount people pay against the credit card bill is the pure profit of credit card companies, which means you are paying for nothing.
As cards are issued legally with the approval of the government; then, the process of elimination must be legal. It is now possible to legally reduce credit card debts by 50% with the help of debt settlement programs. Those people who are in massive credit card debts that always want to avoid bankruptcy, but do not have more money to pay back, can eliminate their credit card debt by 50%. This easy process is done by simple negotiations and cannot affect the credit score. The purpose of this reduction is to attract people and prevent the rising bankruptcy in the country.
With the help of debt settlement programs and the government support in shape of stimulus cash, the process of getting a discount is very easy and effective. Simple negotiations can get you a discount of 50% over the outstanding balance of card.
The elimination is in two shapes, if you have a lump sum amount equal to half of your loan, you simply call your credit card company that you cannot continue with minimum amount and you want to eliminate your credit card debt. You can negotiate on behalf of that lump sum cash. The financial institutions and card companies always like to have a deal instead of a consumer that went bankrupt, which is the total loss. That is why the settlement deals are rising these days.
Debt settlement is the best alternative to bankruptcy and usually makes financial sense for consumers with over $10k in unsecured debt. Consumers can expect to eliminate 50% of their unsecured debt on average. To find legitimate debt settlement companies in your state and get free debt advice then check out the following link.
http://creditsonline.info/
Article Source: http://EzineArticles.com
Top 5 Credit Misconceptions
While the U.S. economy finally begins to recover, consumers are still dealing with the effects of lowered credit scores and subsequent attempts to raise them. Many factors affect the algorithm of a credit score, however, there are plenty of misconceptions out there intended to unnecessarily frighten the average consumer. Here are the top 5:
1. Your score will drop if you check your credit.
This is absolutely inaccurate, as checking your own score counts as a "soft inquiry' and therefore does not factor into your credit score. Only "hard inquiries" from a lender or creditor can damage your credit if done too often. However, many inquiries for the same purpose in a short amount of time (ie: Shopping for a loan) are grouped into another category with a far less damaging effect on your credit score.
2. Closing old accounts will improve your score.
This is one of those that comes from a misunderstanding of the credit algorithm. Age of your credit is one of the top factors, so when you close an old account in good standing, your credit drops because it is now newer. Remember, the longer you have credit (And take care of it), the higher your score will climb.
3. Paying off a negative record removes it from your credit report.
Untrue. Negative records, which include collection accounts, bankruptcies and charge-0ff's, remain on your credit report for 7-10 years after first being posted. Paying off a delinquent account before the set term ends will result in the account being marked as paid, but it will not be removed until the term ends. Still, it is a good idea to pay off these debts, as it does improve your credit score, but the major improvement won't show up until the items are finally removed.
4. Being a co-signer doesn't make you responsible for an account.
Opening a joint account or co-signing on a loan means you are taking legal responsibility for an account. All activity, positive and negative, will show up on the credit reports of everyone involved. If you co-sign for a friend or family member on a loan and they don't make the payments, they're hurting both your and their credit ratings. The only way to stop the double reporting is to either refinance the loan or have the creditor remove you from the account.
5. Paying off a debt will add 50 points to your credit score.
Your credit score is the result of a highly complicated algorithm that takes into account hundreds of varying factors. It is very hard to predict how many points you will jump, or fall, with your credit actions. Some people with very high credit ratings can drop significantly by missing only one payment, whereas someone with a low credit score might not see a drop at all. It is still highly recommended to pay off debts though, as some people have experienced noticeable increases in their score after paying off debt. There is not a magic wand for improving your credit score, however good financial behavior and time are the two most important factors.
GET YOUR FREE CONSULTATION TODAY AT
http://creditsonline.info/
Article Source: http://EzineArticles.com
1. Your score will drop if you check your credit.
This is absolutely inaccurate, as checking your own score counts as a "soft inquiry' and therefore does not factor into your credit score. Only "hard inquiries" from a lender or creditor can damage your credit if done too often. However, many inquiries for the same purpose in a short amount of time (ie: Shopping for a loan) are grouped into another category with a far less damaging effect on your credit score.
2. Closing old accounts will improve your score.
This is one of those that comes from a misunderstanding of the credit algorithm. Age of your credit is one of the top factors, so when you close an old account in good standing, your credit drops because it is now newer. Remember, the longer you have credit (And take care of it), the higher your score will climb.
3. Paying off a negative record removes it from your credit report.
Untrue. Negative records, which include collection accounts, bankruptcies and charge-0ff's, remain on your credit report for 7-10 years after first being posted. Paying off a delinquent account before the set term ends will result in the account being marked as paid, but it will not be removed until the term ends. Still, it is a good idea to pay off these debts, as it does improve your credit score, but the major improvement won't show up until the items are finally removed.
4. Being a co-signer doesn't make you responsible for an account.
Opening a joint account or co-signing on a loan means you are taking legal responsibility for an account. All activity, positive and negative, will show up on the credit reports of everyone involved. If you co-sign for a friend or family member on a loan and they don't make the payments, they're hurting both your and their credit ratings. The only way to stop the double reporting is to either refinance the loan or have the creditor remove you from the account.
5. Paying off a debt will add 50 points to your credit score.
Your credit score is the result of a highly complicated algorithm that takes into account hundreds of varying factors. It is very hard to predict how many points you will jump, or fall, with your credit actions. Some people with very high credit ratings can drop significantly by missing only one payment, whereas someone with a low credit score might not see a drop at all. It is still highly recommended to pay off debts though, as some people have experienced noticeable increases in their score after paying off debt. There is not a magic wand for improving your credit score, however good financial behavior and time are the two most important factors.
GET YOUR FREE CONSULTATION TODAY AT
http://creditsonline.info/
Article Source: http://EzineArticles.com
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