FinanceDogma – Finance, loans, creditcard and mortgages

June 13, 2012

Understanding your credit score

Filed under: Credit Card — Tags: — admin @ 9:59 pm

A great deal includes credit scores, especially recently due to the collapsing housing bubble and also the issues that came about from this. But just what involves identifying your credit score? Could it be foolproof or can you find difficulties with the machine? What defects exist? Does everybody still utilize it or is there other techniques getting used recently that people haven’t learned about?

What’s Your Score?

You will find several factors which go into identifying your score. Varying between 300 and 850, the score is affected through the following elements that are distributed within the following criteria: Payment history, Credit Utilisation, the peroid of credit history, the types of credit used and the recent requests for your credit score.

By looking into making your repayments promptly, getting a great period of credit history, and keeping a great ratio of credit accustomed to available credit you can preserve your score nearer to the greater end on the credit score spectrum which can lead to you getting further advantages on financial loans, including preferential rates.

Issues With The Scores

Some institutions have, a minimum of, used credit scores for a number of reasons, you will find some difficulties with the practice and also the scores which have given people stress about their stability when identifying how appropriate for a financial loan one is.

The greatest concern within the method is they could be used to improperly provide a better perception of the person’s credit standing. Since most from the score is dependent upon the ratio of credit accustomed to credit available, an individual can improve their credit limit on the credit card in order to improve their credit score despite the fact that it has no effect on remarkable ability to pay back financing.

Additionally, the main critique from the score product is it’s a bad predictor of risk when lending for an individual. This grew to become apparent throughout the housing crisis when banks were supplying subprime financial loans that individuals could not manage to pay back no matter what their score indicated since the moment the rates elevated around the loan they could not afford them.

Still Being Used?

Despite the fact that there’s some critique of these, the scores continue to be broadly employed for from loan programs for such things as houses and cars with a companies which makes it an ailment from the employing process. Some, however, are generally completely abandoning using credit scoring or will also be considering a possible purchasers current debt and employment status and earnings when thinking about them for a financial loan, because this provides a better picture of the capability to pay back the borrowed funds.

Know What Your Location Is

Even when you are not searching to create a large purchase soon that will need a loan, knowing where your score stands is a great way to know whether you have to focus on enhancing it. Additionally it is also a great way to discover if you have been the victim of id theft as possible discover if you will find open credit cards or financial loans inside your title that you simply did not authorize.

March 9, 2009

Credit Score

Filed under: Finance — Tags: , , — admin @ 1:30 pm

Credit score is used by lenders, such as banks and credit card companies, to calculate the potential risk posed by lending money to their customers. With help of credit score check, lenders can decide who qualifies for a loan, at what interest rate, and what credit limits. If you are interested in taking a loan then your credit will play a vital role as the lending institutions will check if you have capacity to repay the loan on time.

Having a good credit history will give you more opportunities and it will be easier to find the best loan for yourself. Keep in mind that by having a good credit score you will have better interest rate and credit limit. Make sure that you pay your debts in time so that you will have possibility to borrow money again in the future.

You should also know that credit score is not limited to banks and credit card companies. There are other organizations that use credit score to decide if a person is qualified for a loan or a credit. Organizations like mobile phone companies, insurance companies, employers and landlords.

February 24, 2009

5 Different Ways Your Credit Affects Your Mortgage Application

Filed under: Mortgage — Tags: , , , — admin @ 4:05 pm

Getting your mortgage application approved is not easy. There are many things a mortgage lender will check before approving your mortgage application. Here is a list of 5 major factors that your credit have on your mortgage application.

* Past credit behavior
* Depth of credit history

* Current credit balances

* Number of credit line
* Number of credit inquires


Past credit behavior

You need to be punctual when paying back your loan. It is very important that your monthly installments are paid on time. Late payments will be shown on your credit report which will make it almost impossible to get your mortgage application approved.

Depth of credit history

Debt of history credit will show your mortgage lender the amount of time you have had credit. Each credit line that you have has a start date listed and it would be helpful for you if you have a credit that has been open for at least a year.

Current Credit balances

Current credit balances will show you how much of your different credit lines you are using up. Try to avoid reaching to close to your maximum credit balance because your credit may start to decline, which will make it harder to get your mortgage application approved.

Number of credit lines

This will show your mortgage lender the number of credits you have had in the past. It would be very useful if your previous credits have been managed successfully.

Number of credit inquires

Your mortgage lender will probably look at the number of credit inquiries you have made recently. The more you have – the lower your credit rating will be.

February 16, 2009

Credit solutions with bad credit

Filed under: Finance — Tags: , , , — admin @ 5:23 pm

Many people have missed a payment on a credit card or a utility bill some time in their life. To get out of that debt, they would have to try to pay off two bills at once. But what happens when they can’t make the payment on that new bill either?  The longer they let the debt go, the worse their credit rating will suffer. The more bills they have in collection, the lower their credit score will be because they haven’t paid off the debt.  (more…)

February 5, 2009

Fixing your bad credit quickly

Filed under: Finance — Tags: , , , , — admin @ 4:16 pm

If you are like most people in the world today, you need to fight to get a loan so you can get a car, pay a bill, or just have money to go shopping. This is due because you have made a few financial mistakes in the past and they are haunting you now. You have missed a bill and it went to collection, your credit card got declined because the balance was over the limit. Has this ever happened to you? Many people suffer because of those reasons but you don’t have to worry, you can get the things you want and fix your credit score all at the same time. Here are a few ways to fix your credit score so you can get the things you want in life. (more…)

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