Understanding Credit & Ways to improve
Your credit score is almost everything! Without a good score, you may be limited in life as far as your purchase power, and buying the things you want including cars, homes, travel, and that all powerful plasma television! Learn tips and scoring criteria that may boost you to financial freedom. You can actually save money with a solid good credit score.
What are Credit Scores?
A credit score is a number that is calculated based on your credit history to aid lenders in determining your credit-worthiness. This number is intended to help a lender ascertain the level of risk they may be taking in loaning you money. The system awards points based on information in your credit report. Lenders can predict how likely someone is to repay a loan and make payments on time.
What Can I Do to Improve My Score?
Avoiding over-inquiriesThere are two types of credit inquiries that can be made to your credit report: hard inquiries and soft inquiries.
A hard inquiry occurs when you seek to obtain credit. This happens when you apply for a loan or credit card, for example. Each time you fill out a credit card application at a department store, the inquiry counts as a hard inquiry. Only you can authorize a creditor to perform a hard inquiry on your credit report.
A prospective lender or other creditor will likely be concerned with an applicant whose credit report shows a high volume of hard inquiries. That's because it suggests a carefree attitude in applying for credit or an effort to borrow excessively.
Borrowing too much -- a situation called over-leveraging -- is a potential red flag for creditors. It signals you may face more difficulty in repaying your debts in cash-strapped times than a person who judiciously applies for credit.
If you're going to ping your credit report with frequent hard inquiries, it may be best to concentrate them around the time you apply for a home or auto loan. If you're thinking about applying for a mortgage loan, please contact me for advice and information before starting.
A soft inquiry is one where the inquiry is not tallied on your credit report. A soft inquiry does not constitute a bona fide request for credit. For example, a soft inquiry occurs when you obtain a copy of your report.
-There is no fast and easy way to repair damaged credit that took months or years to occur. The law allows negative information to appear on an individual's credit record from seven to 10 years.
Get a copy of your credit report. If you are being turned down for credit you need to be sure the reason is valid. Many credit reports have errors. Dispute any inaccuracies you find.
Get a credit report from all three bureaus. Each one may have different information and maybe errors in your file. You can't know which bureau's data will be used to evaluate your credit application, so check them all.
Addresses / phone numbers of the three major credit bureaus:...
Equifax (CBI) PO Box 740249Atlanta, GA 30374(800) 685-1111...
Experian (TRW) (888) 397-3742...
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ABOUT THE AUTHOR
Cecilia Sherrard is a full time dedicated Realtor in Northeast Ohio. With years of experience and knowledge, she has maintained a multi-million dollar producer status. Visit her website at http://www.youshouldown.com you can also view her Real Estate tips at http://www.youshouldown.com/realestatetips.asp