Credit Scores
#11
04-15-2012, 12:09 PM
First off; getting good credit is very difficult and keeping it takes work. Bad credit is easy. Some of the above info is accurate and some is not.
Cell phone companies and utility bills do not report to the credit burea unless you have a bill with them that goes to collections and then it shows up as a collections account and bad debt. If you never have a collections account and always pay your rent and utilities on time you will never build credit.
Pick up a book on building credit or repairing your credit.
Every time someone pulls your credit report it drops your score. You are best off to apply for credit from many sources in a two week period if that is your choice rather than to apply from one, wait for a reply and then apply to another and so forth. The reason being is that if everyone pulls your report within a two week period it will list everyone that pulled the report but on the score it shows up as only one pull where as if someone pulls it today and then another pull in two weeks and then another two weeks later shows as three pulls and three drops in your credit score.
Paying your bills on time may not always boost your score, however late pays and accounts in collections will negatively affect your score.
To build credit, go to your bank and ask if they offer secured credit cards. Find a bank or credit union that does. Use 1000.00 to open a savings account in the financial institution that offers the secured account. Now apply for a secured credit card in the amount of your savings account. Now comes the important part. Never exceed fifty percent of the limit. If you have a 1000 dollar credit limit never use more than 500 dollars. Next always pay at least the minimum due on time. The best thing to do is to pay the entire balance every month. This gives you all the benefits of having a credit card without paying any finance charges. Doing this will build your credit score fairly quickly. Doing this for a year or two will allow you to get an unsecured credit card. Also for some reason revolving credit (credit cards) are more favorable to the credit burea in building credit than a personal loan or secured loan that has a defined high credit amount and then declines with each payment. It could be because in this type of loan you are using 100 percent of the money available.
Cell phone companies and utility bills do not report to the credit burea unless you have a bill with them that goes to collections and then it shows up as a collections account and bad debt. If you never have a collections account and always pay your rent and utilities on time you will never build credit.
Pick up a book on building credit or repairing your credit.
Every time someone pulls your credit report it drops your score. You are best off to apply for credit from many sources in a two week period if that is your choice rather than to apply from one, wait for a reply and then apply to another and so forth. The reason being is that if everyone pulls your report within a two week period it will list everyone that pulled the report but on the score it shows up as only one pull where as if someone pulls it today and then another pull in two weeks and then another two weeks later shows as three pulls and three drops in your credit score.
Paying your bills on time may not always boost your score, however late pays and accounts in collections will negatively affect your score.
To build credit, go to your bank and ask if they offer secured credit cards. Find a bank or credit union that does. Use 1000.00 to open a savings account in the financial institution that offers the secured account. Now apply for a secured credit card in the amount of your savings account. Now comes the important part. Never exceed fifty percent of the limit. If you have a 1000 dollar credit limit never use more than 500 dollars. Next always pay at least the minimum due on time. The best thing to do is to pay the entire balance every month. This gives you all the benefits of having a credit card without paying any finance charges. Doing this will build your credit score fairly quickly. Doing this for a year or two will allow you to get an unsecured credit card. Also for some reason revolving credit (credit cards) are more favorable to the credit burea in building credit than a personal loan or secured loan that has a defined high credit amount and then declines with each payment. It could be because in this type of loan you are using 100 percent of the money available.
#12
04-15-2012, 12:29 PM
Credit cards can be bad if you get in over your head. I would get a low limit card use it a little and then make some monthly payments on it. Don't max it out and then pay it off because i was told that doesn't really help your credit. Also keep in mind once you do get a credit card you are gonna get a ton of offers for other cards, Throw them in the trash.
A vehicle loan would be a good Idea too if you want to go that route but again go through the credit union or bank not a buy here pay here type place.
A vehicle loan would be a good Idea too if you want to go that route but again go through the credit union or bank not a buy here pay here type place.
#13
04-15-2012, 01:06 PM
First off; getting good credit is very difficult and keeping it takes work. Bad credit is easy. Some of the above info is accurate and some is not.
Cell phone companies and utility bills do not report to the credit burea unless you have a bill with them that goes to collections and then it shows up as a collections account and bad debt. If you never have a collections account and always pay your rent and utilities on time you will never build credit.
Pick up a book on building credit or repairing your credit.
Every time someone pulls your credit report it drops your score. You are best off to apply for credit from many sources in a two week period if that is your choice rather than to apply from one, wait for a reply and then apply to another and so forth. The reason being is that if everyone pulls your report within a two week period it will list everyone that pulled the report but on the score it shows up as only one pull where as if someone pulls it today and then another pull in two weeks and then another two weeks later shows as three pulls and three drops in your credit score.
Paying your bills on time may not always boost your score, however late pays and accounts in collections will negatively affect your score.
To build credit, go to your bank and ask if they offer secured credit cards. Find a bank or credit union that does. Use 1000.00 to open a savings account in the financial institution that offers the secured account. Now apply for a secured credit card in the amount of your savings account. Now comes the important part. Never exceed fifty percent of the limit. If you have a 1000 dollar credit limit never use more than 500 dollars. Next always pay at least the minimum due on time. The best thing to do is to pay the entire balance every month. This gives you all the benefits of having a credit card without paying any finance charges. Doing this will build your credit score fairly quickly. Doing this for a year or two will allow you to get an unsecured credit card. Also for some reason revolving credit (credit cards) are more favorable to the credit burea in building credit than a personal loan or secured loan that has a defined high credit amount and then declines with each payment. It could be because in this type of loan you are using 100 percent of the money available.
Cell phone companies and utility bills do not report to the credit burea unless you have a bill with them that goes to collections and then it shows up as a collections account and bad debt. If you never have a collections account and always pay your rent and utilities on time you will never build credit.
Pick up a book on building credit or repairing your credit.
Every time someone pulls your credit report it drops your score. You are best off to apply for credit from many sources in a two week period if that is your choice rather than to apply from one, wait for a reply and then apply to another and so forth. The reason being is that if everyone pulls your report within a two week period it will list everyone that pulled the report but on the score it shows up as only one pull where as if someone pulls it today and then another pull in two weeks and then another two weeks later shows as three pulls and three drops in your credit score.
Paying your bills on time may not always boost your score, however late pays and accounts in collections will negatively affect your score.
To build credit, go to your bank and ask if they offer secured credit cards. Find a bank or credit union that does. Use 1000.00 to open a savings account in the financial institution that offers the secured account. Now apply for a secured credit card in the amount of your savings account. Now comes the important part. Never exceed fifty percent of the limit. If you have a 1000 dollar credit limit never use more than 500 dollars. Next always pay at least the minimum due on time. The best thing to do is to pay the entire balance every month. This gives you all the benefits of having a credit card without paying any finance charges. Doing this will build your credit score fairly quickly. Doing this for a year or two will allow you to get an unsecured credit card. Also for some reason revolving credit (credit cards) are more favorable to the credit burea in building credit than a personal loan or secured loan that has a defined high credit amount and then declines with each payment. It could be because in this type of loan you are using 100 percent of the money available.
#14
04-15-2012, 01:06 PM
Good write up Mouse. I get really upset when I go to do a manual credit check for customers and see that the dealers for our company not the corporate store the dealers have done 2,3, sometimes 5 credit checks! I let them know that they can be messing up peoples credit and that no matter how many times they do the credit check if it comes back declined the first time it will always come back declined and that it needs to be checked through Equifax IE: me
to override the decline.
I do notice a lot of people have been declined because their bill go into collection but some people have still been approved.
like someone else said don't let your credit score bother how people look at you there are always other options and things to improve on.
to override the decline.I do notice a lot of people have been declined because their bill go into collection but some people have still been approved.
like someone else said don't let your credit score bother how people look at you there are always other options and things to improve on.
#15
04-15-2012, 08:56 PM
A few more things about credit. If you have bad issues with only one creditor, you can expect all of your other creditors to take action against you ranging from revoking credit to increased fees and raised interest rates, to lines of credit closed. They don't play fair.
Also if you have been declined credit, take the time to call and ask why. Sometimes a conversation can change the outcome. If you can't change the outcome, ask what it is they want to see. The credit granting officers are usually good about offering credit advice. These people are usually very knowledgeable about credit.
Also if you have been declined credit, take the time to call and ask why. Sometimes a conversation can change the outcome. If you can't change the outcome, ask what it is they want to see. The credit granting officers are usually good about offering credit advice. These people are usually very knowledgeable about credit.
Last edited by mousehousemoparman; 04-15-2012 at 09:00 PM.
#16
04-16-2012, 04:40 AM
"Be true to you words, your promise to `pay"
Hi DeRon & Member's,
What Your Credit Score Says About YouYou know that your credit score influences decisions that others make about you regarding your finances. And your credit score is about more than determining whether or not you get a loan, and what interest rate you will receive. These are major considerations, and they can mean a difference of thousands of dollars. However, employers, insurers and even Internet providers also use your credit score to make decisions. Your credit score is a numerical representation of your financial habits, and some even make other assumptions about you based on your credit score.
Obviously, your credit score tells others about your payment history, how long you have had credit and whether or not you present an acceptable financial risk to a lender or landlord. But what else does your credit score say about you?
DisciplineObviously, your credit score tells others about your payment history, how long you have had credit and whether or not you present an acceptable financial risk to a lender or landlord. But what else does your credit score say about you?
Your credit score can indicate your level of discipline, at least in the eyes of others. Employers might view someone with a poor credit score as someone lacking in the discipline to do what is needed in order to keep your credit score up, and others worry that such a characteristic might carry over into other areas of performance. Someone with a high credit score is often perceived as having solid discipline, and capable of making tough decisions in order to maintain the proper balance in one’s lifestyle.
IntegritySome employers (and others) might decide that a low credit score indicates questionable integrity. A high credit score, on the other hand, can indicate a willingness to fulfill obligations and stay away from commitments that can’t be fulfilled. Someone who has a low credit score may also present other risks. A low score could lead an Internet service provider may be wary of entering into a contract with someone who may not pay as promised. Employers may worry that someone in enough debt to result in a low credit score may be vulnerable to accepting bribes, or may even be tempted to embezzle.
ResponsibilityMany insurers, especially auto insurance companies, believe that there is a correlation between responsible financial behavior and responsible behavior behind the wheel. The reasoning is that those who have a good credit score must be making responsible financial decisions, and are more likely to behave cautiously and responsibly when making driving decisions. Thus, more responsible driving = fewer accidents and claims = lower premiums. Those with low credit scores are often perceived as less responsible, and may be penalized, since they represent a bigger risk.
Bottom line: It may not be fair (especially if you have had an unexpected financial, medical or other catastrophe), but your credit score is increasingly becoming associated with decisions that may not strictly relate to your credit history. Because it is simple, short and relatively easy to comprehend in a single glance, your credit score is rapidly becoming a measure for those who feel they are taking a risk on you. A potential employer may still have to get your permission to check your credit, but more employers are asking for that permission — especially if a background check is required for a job.
Before you dismiss the importance of a good credit score, stop and think about what it might be saying about you.
Bottom line: It may not be fair (especially if you have had an unexpected financial, medical or other catastrophe), but your credit score is increasingly becoming associated with decisions that may not strictly relate to your credit history. Because it is simple, short and relatively easy to comprehend in a single glance, your credit score is rapidly becoming a measure for those who feel they are taking a risk on you. A potential employer may still have to get your permission to check your credit, but more employers are asking for that permission — especially if a background check is required for a job.
Before you dismiss the importance of a good credit score, stop and think about what it might be saying about you.
Thread
Thread Starter
Forum
Replies
Last Post