http://articles.bankruptcyalternativeplus.com/rss.xml A blog about bankruptcyalternativeplus.com daily 365 1901-01-01T00:00+00:00 http://articles.bankruptcyalternativeplus.com/?a=35563 <p>by Gregg Hall</p><p>A credit score represents an approximation of one's overall appraisal value, calculated by a statistical model. Three of the chief appraisal reporting bureaus are using unique versions of FICO in the United States. It is important to have a good credit score in order to receive the best rates on home loans, car loans, and credit cards.<br /><br />The Benefits of Your Credit Score<br /><br />There are many rewards that will come, when you take the time to understand how to improve your credit score, and if you would like to know how, read on, this article is undoubtedly for you.<br /><br />A couple of upfront benefits are that you will meet the criteria to get loans. Stemming off of that is another benefit: you will be offered better interest rates, which will save you money.<br /><br />How do you get these benefits? <br /><br />A few different strategies are suggested:<br /><br />1)Lower Credit Card Balances<br /><br />Owing substantial amounts on your credit cards (which is relative to the sum of your limit) makes a large dent on your FICO score. 25% should be the maximum balance in your credit card, according to Jeane Kelly, founderess of The Kelly Group in Connecticut.<br /><br />2)Amend Palpable Mistakes<br /><br />To improve your credit score, check your reports from Equifax, TransUnion, and Experian frequently. To check the accuracy, check it about year before applying for a loan. There are sometimes blunders such as a late payment stated, when, in fact you paid on time which can take about anywhere from 30 days to 3 months to process!<br /><br />3)Erase Debts (Don't Simply Move Them Around)<br /><br />Increasing the ratio of your credit card equilibrium is determined by the following:<br /><br />The Number of closed accounts<br />Your balance and limits<br />Balance Transferred<br />With those, your credit score will probably lower.<br /><br />4)Give Payments On Time<br /><br />You increase your chance of improving your credit score when you are eager to meet your deadlines. Not only is it a good practice, which will benefit other areas of your life as well, but also it is a critical step if you would like to take out loans. It is one of the things they consider when deciding to accept or deny your application.<br /><br />5)Don't Close Credit Cards Not Used Near Loan Time<br /><br />When you have multiple credit cards, but are not using them, you are raising your balance-to-limit-ratio if you block those not used. Opening a new line will decrease your score because you don't have a track record, according to Jan Davis, Executive Vice-President of TransUnion.<br /><br />Following these steps and using good monetary judgment will undoubtedly leave you with not only an improved credit score, but also a good credit score.</p><h3 class="popup">About the Author </h3><p>Gregg Hall is an author living in Navarre Florida. Find more about this as well as bankruptcy alternative plus at <a href="http://www.bankruptcyalternativeplus.com/">http://www.bankruptcyalternativeplus.com</a></p> 2006-08-24T10:45-04:00 http://articles.bankruptcyalternativeplus.com/?a=35562 <p>by Gregg Hall</p><p>Any time that you think that you may want to make a larger purchase such as a house or a vehicle it is wise to make frequent checks to your credit score. Even when you are not thinking about making large purchases you should check your credit score about every year or so. <br /><br />When you are making large purchases though lenders look at your credit score and make decisions as to whether or not they will extend your limit or grant you an incentive. By checking your credit score often you will be able to avoid any possible hidden problems.<br /><br />What does your credit score consist of?<br /><br />Payment history-35%<br />Shows if you have been paying your bills on time<br />It is important to have a good payment history<br /><br />Liable amount-30%<br />How much do you owe<br />What type of account have you taken<br /><br />Appraisal longevity-15%<br />The longer the history the more points you accumulate<br />Indicates how long the accounts have been used<br /><br />New credit-10%<br />New accounts that you have opened<br />How long it has been since you have opened them<br /><br />Overall mix-10% <br />The whole of your report and includes:<br />Credit cards<br />Installment loans<br />Mortgage applications<br /><br />Also look at the amount of your salary to make sure you will be making enough money to cover any future credit purchases.<br /><br />The Fair Isaac Corporation (FICO) is the one that developed the most widely known software calculator in the 1960's. This calculator is used to calculate your credit score. It is found to be the most accurate, however, it is not perfect, so as with anything errors can occur which is yet another reason that you should stay on top of your credit score. <br /><br />It is beneficial to keep up to date on your credit score not only can mistakes happen but you are being compared to thousands of other people with calculations following of a future appraisal risk specifically about you. By keeping a close eye on your credit report you will be able to tell if a mistake has been made more than likely.<br /><br />Equifax, TransUnion, and Experian are three major United States agencies that use FICO. By checking on your credit score these agencies can determine if you are a good &quot;risk&quot; for them. In other words, they can decide if they will get their money back if they should loan you some. The more points that you have the more likely it is that you are a good risk. It is also more likely that they will offer you more perks. The perks can include lower interest rates.</p><h3 class="popup">About the Author </h3><p>Gregg Hall is an author living in Navarre Florida. Find more about this as well as avoiding bankruptcy at <a href="http://www.bankruptcyalternativeplus.com/">http://www.bankruptcyalternativeplus.com</a></p> 2006-08-24T10:41-04:00