3 Reasons Why You Should Repair Your Credit Today

repair your creditWould it not be great if you ever could repair your credit? Some have asked themselves that question, answered yes, and took action to do so. For most people it is just a passing, fleeting thought that never gets anywhere and is soon forgotten. Most people are not aware of precisely where to start, so they really never do. The aspect of maybe needing to do a little work puts others off. Others are too lazy to try, or lack motivation.

Now “Whoa Up” here one minute, my friend! Are those reasons actually good enough to base an important decision on? What favorable reasons were taken into account? Did both the Pro as well as the Con side get taken into account? Did the negatives rule simply because positives weren’t taken into consideration?

It’s possible that really needs a little bit more consideration… I’d guess that we ought to think of say, 3 reasons why maybe you should repair your credit and find out how things might look from that perspective.

The first thing is your interest rates are currently based on your credit score. Right, I fully understand your argument that my interest rates are based on my credit score but so what. Consider this, for every extra interest point you are paying because of your low credit score, you are paying an extra $10 per month for every $1000 you have borrowed, which might not sound like a lot, but over time, it adds up to be a very large number. To top it all off, it is important to consider that most of our debt takes a very long time to pay off.

Second, if your interest rates are based on your credit score, then every time you try to get a new credit card, try to buy a car or new home, you are being judged based on your current credit. That is true because financial institutions look at your past history to see if you have done what you said you would do and most time people with poor credit have missed a few payments on different loans or credit cards they have had. One of the results of this is that with a lower credit score, you are going to be driving lower end cars or paying a higher monthly payment for the car so the way to be able to drive a nicer vehicle for the same amount of money is to repair your credit.

Third, it feels so much better when you don’t have bills every month that are out of control. When you repair your credit, you basically start a process of wiping out all your debt so at the beginning of the month, you have fewer bills and less stress, which is a great feeling! And the key to repairing your credit is to start one decision at a time and have a written budget of where the money goes. Each month, as you continue to pay off more debt, you are going to feel a ton better about yourself and your life. After a period of time, it will become a habit to spend your money wisely and have more of it at the end of each month!

So, after reviewing the 3 reasons above, I hope you get started today to repair your credit one small decision at a time!

5 Reasons You Should Improve Your Credit

improve your creditWhy don’t you improve your credit? Many people have thought about it. Some actually did it. Most only looked at taking that approach for a little bit, then got busy with other pursuits. Some will still be just considering it and still have not even begun to take action. Others have gotten stalled for not enough information and have not even begun to seriously consider it.

Wait a minute! Are those really valid reasons? Did they really examine the positive side? Did we consider the “pro” side or simply the “con” side? Maybe we should have a look at that.

Let’s consider 5 reasons for you to improve your credit, only to decide if any of them fit here.

First, your credit score is used by the lending institutions when you apply for any type of credit to determine whether you are credit worthy or not. I understand fully your objection regarding that you don’t know where to start in repairing your credit.  I agree that that is a pretty valid objection, but please consider, we offer several different resources to assist you with doing this. And moreover, you ought to consider that once you get started, it really is not that difficult to see great results in a short period of time.

Second, the loan institutions also determine what interest rate you qualify for based on your credit score and the lower the credit score, the higher the interest rate. . The chief reason for that is that if you have a lower credit score, then you have missed some payments somewhere in your payment history and the banks figure that they need to charge you more to borrow their money because they might not get all the money you have agreed to pay them since you have a history of missing some payments or slow paying on your accounts.

Third, undertaking the project to improve your credit means that you are going to stop over spending on a monthly basis and get a budget in place to make better choices with you money. As well as making better choices with your money, you will probably find that there is less stress in your life so your health, relationships and personal life should all improve!

Fourth, after getting a budget in place and paying down your debt, you should find it easier to start saving some money for your retirement. This is going to be a great feeling to know that you will be able to put some money away for an emergency or have a more comfortable retirement.

Fifth, after getting a handle on your spending, you might find that you have more discretionary income so you can take a vacation, do some repairs on the house that need to be done or send a monthly gift to help another person in this world.

Within all the above info lays a pretty good set of reasons in favor of you to improve your credit. What’s your opinion?

So now, just think about that for a few minutes. A very good case has been made in favor of doing it. Maybe you really should improve your credit.

Your FICO Score – What Exactly Is It?

As difficult as it sounds, summing up a credit score meaning is really a no brainer. You see your credit score or FICO score is really a number between 300 and 850.

As you read each line in this article you’ll realize that your credit bureau rating (or FICO score) is not required to be offered for FREE like your credit score report.

Regardless of that reality, The FCRA (Federal Credit Reporting Act) requires credit-reporting agencies to provide you a copy of the credit score they have calculated and provided to lenders.

In other words, you get to see what the lenders see and understand why they made the decision they made and what information it was based on.

Usually, most loan providers use the FICO (Fair Isaac Corporation) process to calculate your FICO credit score.

Nevertheless here’s something you have to know: Never ever ignore the fact that the score provided to you by some credit agencies my not necessarily be a FICO score. At this time, Equifax is the only organization with the right to sell FICO scores.

Should you buy your credit| bureau score from the other two major credit score reporting (TransUnion or Experian) you will get a credit score distinctive to that specific agency.

I’ve have some extremely clear insights on how your credit score bureau rating is calculated. Listen up.

Here’s how it works: Your payment history makes up 35 percent of your rating; all unsettled balances make up another 30 %; and also the length of time you’ve had a credit score history accounts for 15 percent.

Let me explain a little bit further.

For starters your credit score is figured out by how long you have had a credit history. With that in mind, know that your credit score straightaway impacts personal loans and any credit you apply for in the future.

In fact, you could be charged a larger interest rate because of one’s credit score.

Also, the quantity of interest you are presently paying on loans, credit cards, or any other revolving credit dramatically affects your FICO rating calculation.

Also, your FICO rating is established by how much of your obtainable credit is currently tied up. Maxing out your credit cards will adversely affect your credit score.

Look, you should think about the effect brand new accounts would have on your credit score. A large variety of inquiries in a small amount of time can certainly damage your credit score.

To make your credit score even simpler for you to comprehend – credit-reporting agencies will provide you with up to 4 explanations for your credit score results.

I wonder, even as you continue to read this write-up if you know how essential it is for you to understand the calculation of one’s FICO score. It’s crucial that you study these factors to have a better comprehension of where you presently stand.

Have you ever wondered what the difference is between your FICO score and credit score? That is one of the first questions people have after they start to investigate their credit situation after they have been turned down for a loan or had some experience like that.

Your FICO score or credit score is a number between 300 and 850 that the different that a couple different organizations have created so they have a way to measure what a person’s credit worthiness is.

One thing to keep in mind is that your FICO score or credit bureau score is information that a couple organizations keep track for everyone and they are not required to give it to us for free. Fortunately, we are entitled to get a free credit report every year.

When we apply for a loan, the banks request a copy of our credit report from these third party groups that track our credit. Fortunately, the FCRA, Federal Credit Reporting Act, makes these third party organizations make available to us, the consumer, a copy of the report so we can see what the banks are making their decisions with.

Now, this is where it gets a little confusing because a large majority of the loan institutions use the Fair Isaac Corporation, FICO, method to calculate your score. But, Equifax is the only organization that has the ability to sell the FICO score information to us. So, other organizations are using some other method to calculate your credit score.

There are two other agencies, Experian and TransUnion, and they will provide you with their own version of your credit score so you could actually have 3 different credit scores that the lenders work with.

Here’s the good news, it’s not as complicated as it sounds. Let me help you understand how your credit bureau score is calculated.

Here are the details: 35% of your credit score is made up by your payment history: 30% is made up by your outstanding balances; 15% of your score is determined by the length of time you’ve had your credit.

Here’s some more information:

Any time you apply for a loan, your credit score is going to dictate how much money you can borrow and what interest rate you are going to qualify for. The lower your credit score, the higher the interest you are going to have to pay for your money.

Also, the interest rates you are paying on your existing credit cards and other revolving credit instruments will help determine what your FICO score rate is.

Another thing is that determines your FICO score is the amount of credit you currently have tied up in purchases so the more credit you currently have tied up in assets, the lower your FICO score is going to be.

One thing to consider is to only have a couple of credit cards at the most because every time you apply for a new card, your FICO score and credit score could take a hit. So if you apply for several at the same time, then watch out because your credit score is going to plummet.

Credit Scores and What They Mean

Are you asking yourself just how far your credit score is going to get you? And here’s another thought:  Just how fast could you secure a car loan with a credit score less than 700?

Contemplate this fact:  According to FICO (Fair Isaac Corporation), credit scores fall in between 300 and 850.  The higher your credit score, the less difficult it will probably be for you to get the credit you might be applying for.

So, as an example, a credit score of 580 would be considered middle ground.

Ponder this as I share with you the fundamental grading system for credit scores:

·            A Grade – 720 or greater.

·            B Grade – 620-719.

·            C Grade – 580 to 619.

·            D Grade – 550 to 570.

·            F Grade – 550 or lower.

Like it or not, in case you find yourself with a 590 credit score you’ll most probably pay a lot more in interest rates and charges when you purchase anything from a nearly new car, a new home or even the credit card offers you receive in the mail.

So, you should do everything possible within your skill sets to enhance your credit score as fast as you can.

Oddly enough, merely discovering and correcting just 1 mistake could result in your credit score rising 30 points or greater. This is why it’s so important to look at your credit report yearly because at the end of the day your credit is your responsibility, people do make mistakes and they can affect you severely.

Because, in the wink of an eye, your credit score could fall and you could discover oneself on the short end of the stick.

As you now know, a middle grade credit score is just not sufficient.

Recognize this: In the event you need to get better interest rates, you’ll have to take the road less traveled and work to boost your credit score.

Think about it: just how essential a excellent credit score would be to you? Do you see that a high credit score is your ticket to superior buying power?

As you dwell on the facts we’ve discussed so far, you will soon understand that although a credit score that falls between 500 and 700 isn’t the worse possible rating,  you will not escape greater interests rates. And greater interest rates means less money that stays in your pockets over the long run.

If you’re ready, take a closer look at how it is possible to enhance your credit score and begin saving thousands of dollars in interest and charges.

Understanding your credit score is a pretty simple thing after looking at the fundamentals. At the end of the day, life is better with a higher than lower credit score so do all you can do to keep it as high as you can. The good news is that you are here reading this article so you have already taken the first step down the path of repairing your credit. Now, with consistent effort and a game plan,  you should be able to meet your goals in a pretty short period of time.

Are you drowning in financial debt and pulling your credit score down too?

By the time you might be finished reading this article, you’ll swiftly discover that the magic formula to improving your credit score depends upon your capability to lessen your debts.

You see in case you find your self with more financial debt than you’ll be able to reasonably handle, the simplest alternative is always to lessen the amount of debts you’re facing.

Don’t get me wrong, this may be a lot easier said than carried out. Since the bottom line is you might not have enough funds to pay your bills.

Surprisingly enough, there is a solution.

In fact you might not be aware that there are steps you can begin taking RIGHT NOW that can minimize your load.

I’m telling you, anytime you pay your debts late, it affects your credit report in a damaging way. In addition to that, your credit score undergoes a damaging blow that can follow you for up to seven years.

Astonishing isn’t it?

Like it or not, the only way to enhance your credit score and leave your fiscal trouble behind would be to consider reducing your financial debt.

Here’s the very first thing you need to do is start prioritizing your financial obligations. Look closely at your obligations.

Listen, you should number your financial obligations in order of relevance. And you know what? Significance isn’t determined by who is driving you up the wall with the most calls or letters.

Importance is decided by what debts will most negatively impact your life the fastest.

Seriously, put some consideration into this. Take into account what the effect will be on you and your family should you skip a payment.

On top of that…ask your self how effortless it’s for the creditor to discontinue its service or take back it’s property.

I’m sure that by now you’ll be able to see that the well being of your financial future rests on you keeping a high credit score whilst reducing your debts.

Are you willing to do whatever it takes to end your monetary suffering?