djamal-soft
السبت، 4 يناير 2014
Your credit report is a rating that lenders use to help them decide whether or not to approve you for your home loan, auto loan or other credit. However, it's much too easy to send your credit score into a tailspin. All you have to do is make one or more of these types of mistakes. To get a copy of your 3 credit reports visit ScoreDriven.
1. You neglect to learn how your credit rating is decided. The three primary credit confirming agencies - Equifax, Experian and TransUnion - use formulas that depend on five elements: Your payment history: whether you pay all of your bills in time. What you owe: not only the entire amount your debt, your debt-to-credit rate, which compares debts to credit open to you. Your period of credit: the length of time you've been using credit, such as the average age of your records. Types of credit: your various kinds of credit, including turning accounts (like a bank card or perhaps a store bill) and installment accounts (for example a vehicle loan or perhaps a mortgage). New credit inqueries you're making: the extent that you have requested new credit or adopted more credit card debt. When your behavior sends warning signs to the credit confirming agencies, your credit score will probably have a hit.
2. Pay past due. The main thing a lender is concerned about is whether you can settle the borrowed funds. Loan providers try to find patterns of missed or late repayments, and being even 1 day past due on a repayment could lower your credit score. The best policy is to pay on time and in full. If you can't pay completely, pay at the very least the minimum due on or before the payment date.
3. "Max out" your credit card. Lenders get nervous if your debt-to-credit ratio gets too high. You need to shoot for a ratio under 30 percent. To compute your debt-to-credit ratio, take the unpaid balance (debt) and divide it by your borrowing limit (credit). The result is your debt-to-credit rate.
4. Cancel charge cards without considering the effect. Canceling a credit card is not always a great choice. Shutting down an account could raise your debt-to-credit ratio. Why? Because the accessible credit you've got shrinks when you close the account, but the sum borrowed stays the same. Creditors like to see consumers with long, responsible credit histories. If the card you close is one you have held for a long time and paid in time, you just might be decreasing that great part of your credit history.
5. Fail to reach an equilibrium in between "paper and plastic." Ensure that you use enough credit to keep your score in great shape. When you decide you pay cash for most purchases, you might actually hurt your credit rating. That's because utilizing a charge card properly can convey responsibility and prudent management of your money. Even so, keeping the debt under control is most essential. If you require the discipline of using paper over plastic to maintain your debt in check, you should do so.
6. The greater number of credit inquiries you create the more risky you might seem to creditors. Apply only for cards you really need, as well as for purchases that trigger a credit inquiry (like a vehicle) that you're truly set on.
7. Give up improving your credit score. For those who have credit problems and don't make an effort to resolve them, chances are your score will keep going down. The two things that will eventually help you raise your credit score: making regular payments plus the passage of time. Pay at least the bare minimum on every kind of loan or credit card on time. If this seems to be overwhelming, work with your creditors to create a schedule of debt servicing. Let them know you haven't given up-and back up what you are saying with real action and it will show on your 3 credit reports.
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