About 'debt ratio credit score'|Why your Credit SCORE is not FREE.
Advertisements about credit scores and credit reports are plastered on our TV and computer screen daily and while you shouldn't be taken in by every free offer out there, they do serve a purpose. Your credit score is a vital piece of information that can affect every aspect of your finances, from purchasing a home to applying for a job or even whether you can open a bank account. Every person of employable age should look into their credit rating long before it's needed for a major financial transaction. The first step in managing your credit is to find out what your credit score is currently. Once you know your current number, you can take appropriate steps to increase your credit score. You can request a free credit report from a number of places online and have it in your hand within minutes. Credit reports are not always 100% accurate and it is your responsibility to look for errors and have them corrected. Something as simple as a clerk typing a single digit incorrectly could result in another person's debt showing up on your credit report, which at best could put you over an acceptable limit on debt-to-income ratio, or at worst deny you credit if they show debts that are past due and/or have gone to collections. The credit report should contain information on how to correct any inaccuracies, so make sure to take the necessary steps to do that immediately. If the report is accurate but does contain negative information, you can submit a statement explaining any mitigating circumstances and it will be included in the report. It will not remove the negative information, but depending on how severe it is and what your situation was at the time, explaining it may make a difference to the person that is reviewing your credit report and possibly sway them in your favor, especially if it is an isolated incident and your credit is otherwise in good standing. Your credit score is a quick indicator of how credit-worthy you are, so the higher your score, the more likely you are to enjoy a lower interest rate on credit cards, mortgage, car loans, etc. Credit scores, sometimes called a FICO score, range anywhere from 300-850, with a number higher than 700 generally being considered 'good'. How to get and maintain a high credit score: 1. Pay all of your bills on time This number one rule is pretty basic, but oh so important. This can account for 35% of your overall FICO score. 2. Don't overextend yourself with credit cards or other debt Having a credit card or two with a good payment history is great, but carrying a large amount of debt or too many credit cards, even those with a zero balance, is not advisable. A number of credit cards with a zero or low balance are not looked at favorably by lenders as they are seen as potential debt. They have no way of knowing that you won't buy all new furniture on those previously unused cards as soon as you get the keys to your new house. 3. Have a credit history If you have always paid cash, apply for a credit card or car loan and pay it faithfully to establish good credit. A longer history of paying your debts on time is actually better than having no credit history at all. Even if your credit report isn't perfect or your credit score as high as you'd like, there is nothing that can't be made better with time and a little discipline. Request your credit report to see where you are today, and start making positive changes tomorrow. |
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- low-credit-score-c.blogspot.com/...i do that wrong too? should i have just paid off the whole thing? Debt to credit ratio/ increase credit score? Keep them all under 30%. They want to see you spending reasonably...
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- vancouverlending.wordpress.com/...and the issuer reports the information – can negatively impact your credit-to-debt utilization ratio and subsequent score, regardless of whether you go on to pay off that balance on time or not...
- redeemingriches.wordpress.com/... your accounts, your debt-to-available-credit ratio goes up and impedes your score. E. Eliminate Debt As mentioned, lenders typically like to...
- rickcrozier.wordpress.com/... can lower your credit score. Aim for balances less than 35 percent of your total available credit. You can determine your debt-to-credit ratio by reviewing your credit...
- americandebtconsolidation.blogspot.com/...the result will naturally rebound. Approximately one third of your credit score is your "debt to credit ratio," which will be in much better standing after they clear out...
- low-credit-score-c.blogspot.com/... not translate to a higher score, its really your history of payments and ratio of debt to available credit that make up the bulk of your score...
- mcrand-marketing.blogspot.com/...we've discovered without question that carrying the proper debt to credit ratio will boost your score faster than paying off your bills in full each month...
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