Credit Score Advice
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Hello-
Everyone tells you to check your credit report and credit score every year but not everyone does it. I went ahead and did it last month and was kind of surprised.
I went to annualcreditreport.com and got my free credit report. I paid the $7.95 to get my credit score too.
What I saw was not too encouraging.
My credit score is 636. That’s not very good.
I knew I didn’t have a great credit score but I didn’t think it was in the bottom 10% of the population in the credit score range.
But then I looked closer and saw that the range was from 501-990. That’s not a FICO score, that’s a VantageScore.
Gee whiz, what am I going to do with my VantageScore? Not many companies use it. So I paid $7.95 for a “credit score” but not my real FICO score.
So the key here is to make sure you get your FICO score and not just a credit score.
The VantageScore was developed to try and compete with the FICO scores but hasn’t caught on much.
With all that being said, I need to make sure I don’t apply for any new loans or cars or houses because I will probably be denied.
Why do I have a low credit score?
I make all my payments on time and rarely if ever miss a payment. In the past 48 months, all my credit card companies show that I have paid on time according to my credit report.
The biggest thing is that my balances are too high. I owe too much on my credit cards and that is why I have a bad credit score.
But I’m working on it like I know most people are.
In time, as my balances go down my credit score will go up and I’ll be a better credit risk.
Yeah, so that way the credit card companies will let me borrow even more money! Yippee! :o)
Thanks for reading.
Have a great day!
-Adam
Technorati Tags: bad credit score, check your credit, credit, credit report, credit score, credit score range, fico, score, vantagescore
Written by Adam on August 4th, 2008 with no comments.
Read more articles on Credit Score and Credit Score Advice and Credit Score Tips and FICO Score and Vantage Score.
Hello-
Today, I wanted to dispell some myths on what goes into your credit score and give you some facts about your credit scores.
Myth: There is only one credit score.
Fact: There are three credit scores; one from each of the aforementioned agencies.
Myth: Your score will decrease every time you check it.
Fact: Not true. You can ascertain what your score is as often as you need to and it will not lower your score at all.
Myth: The FICO score is determined by income, age, and gender.
Fact: False. Your score is determined by many factors, none of which include the above.
Myth: The more money I have, the higher my score will be.
Fact: Untrue. The score is based on payments made on time, and keeping your debt under 75% of the credit available.
Myth: Credit repair organizations can remove information on your credit report that is unfavorable and thus increase your score.
Fact: False. If you find inaccuracies on your credit report, you can easily dispute them by writing to each agency individually. However, it will not increase your score.
Myth: The more credit card applications received, the lower the score.
Fact: Untrue. While we are flooded with these applications in the mail, if you don’t apply, your score is untouched. It is only when you do apply, and wind up with many high-balanced credit cards that are in use, that your score may be lowered.
Myth: Scores will rise if credit card accounts are cancelled.
Fact: False. The truth is that it is better to keep a long-existing credit card account even though you may not use it. It has a history attached to it; the number of years you’ve had it, used it, and maintained steady on-time payments. This is the card that gave you a high score to begin with. To cancel out an account would defeat the purpose of maintaining a high credit score.
Myth: Applying for a new credit card to pay other credit cards raises the score.
Fact: Absolutely untrue. Keep in mind; if you own $5,000 and you apply for another credit card to pay the $5,000 off, you are still in debt for $5,000.
Myth: Having no credit cards is a good thing.
Fact: Wrong. At some point in your life, you will need to establish a credit card history. It’s a catch-22 situation. Without a credit card, you cannot create a credit history, you cannot finance a car, home, or other tangibles you wish to own. Credit history is essential in obtaining high credit scores.
Tips on improving your credit score:
Owning a credit card and working to obtain a high credit score will serve you well, as long as you do not incur expenses above your means. Pay on time and/or pay off balances when you can; stay within the 75% of available credit and over time, your credit score will work well for you.
-Adam
Technorati Tags: check credit score, credit, credit score, credit score facts, improve credit score
Written by Adam on July 22nd, 2008 with no comments.
Read more articles on Credit Score and Credit Score Advice and Credit Score Tips and FICO Score.
Looking for a way to get out of credit card debt and increase your credit score? Check out these tips to help you.
Credit Card Debt Solutions
According to the FTC, there are four basic methods you can utilize with regard to credit card debt solutions: Credit Counseling, Debt Management Programs, Debt Consolidation, or Bankruptcy. While bankruptcy should only be considered as a last choice, let’s review the former programs that may be of significant help to you if you are in debt.
Credit Counseling:
By selecting a reputable credit counseling service and talking with certified counselors, you may have the opportunity to learn how to budget properly and maintain finances in a more productive manner. Counselors can offer the tools and resources you need to pay down your debt and become debt free.
Of course, not all counseling agencies are on the up and up. So it is important to research as many organizations as you can. Call them and make an appointment and be prepared to ask many questions, such as: What type of service do they offer; do they charge fees for their services; are they licensed to operate on your state; are the counselors certified.
Debt Management Program:
This, too, requires a great deal of research to determine if this is the method right for you. This program also encompasses certified credit counselors. In essence, you give them money each month and they pay your bills. Depending upon your financial circumstances, the time it will take to clear up all debt can be up to four years. Again, talk to the selected debt management organization before you sign on the dotted line.
Debt Consolidation:
This is the third alternative, but one that may cost you additional money as well as reduce your credit score. The reason is that if you borrow money to pay off a credit card debt, you still owe the same amount of money but have incurred additional interest and fees. If you decide to take out a second mortgage to pay debts, there is the risk that the points will increase as well.
Although debt consolidation may be considered a likely alternative, you may want to look into other options before you decide.
Perhaps you can take on a second job or ask a family member for a loan. In either case, there are no easy solutions to credit card debt. It will take a great deal of thought, planning and budgeting so that you do not incur any more expenses than need be.
In the interim, you can call credit card companies and ask to have your interest rate lowered, or you can negotiate with them if you are severely in debt to lower your minimum amount due. You can also consider selling items no longer needed or unused on eBay so that whatever profit you make can be applied to existing debt.
The most important way to resolve getting out of debt is to fully accept that you are in debt. Once you make the commitment to pay off this debt using any one of the aforementioned solutions, you are well on your way to a debt-free life.
Technorati Tags: credit card debt, get out of credit card debt, out of debt
Written by Adam on June 11th, 2008 with no comments.
Read more articles on Credit Repair and Credit Score and Credit Score Advice and Credit Score Tips and FICO Score and Get out of debt and Improve Credit Score and Pay Your Bills and Personal Finance.
Hello-
Since your debt load contributes to 30% of your credit score, the more debt you have, the lower your score. So in order for you to increase your credit score, you need to reduce how much debt you have.
There are several ways to eliminate your debt.
The standard answer is to make sure you are paying more than the minimum and stop charging stuff you don’t need.
A better answer is to try and eliminate some of your debts by using debt settlement. If you are behind on your payments and need help but don’t want to file bankruptcy, you may want to consider settling your debts.
There is a company called Credit Solutions that is one of the biggest debt settlement companies around. They were featured on NBC as one of the top ways to get help with your debt.
When you lower your debts, you can increase your score by up to 30%.
-Adam
Technorati Tags: credit solutions, debt settlement, eliminate debt, get out of debt, improve credit score, increase credit score
Written by Adam on April 24th, 2008 with no comments.
Read more articles on Credit Score and Credit Score Advice and Credit Score Tips and FICO Score and Get out of debt and Improve Credit Score and Pay Your Bills and Personal Finance.
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