Credit cards can come in very handy at times. When you are having trouble with your bills, the temptation to pay the bills with your credit cards can become overwhelming. This is especially true when you have companies threatening to cut off your television, heat, water or electricity. However, paying off your bills with credit cards is a path that you don’t want to go down. The reason is that it can lead you to going deeper into debt than you had wanted to.
Here is an example:
If you owe $200 on your telephone bill and the company has stated they will cut you off if you don’t pay, then you may want to use your credit card. So, you pay off the bill with the credit card, thereby putting a $200 charge onto your credit card. Everything may seem good now, but it is not.The reason is that you have forgotten about the interest, and the interest is always a killer. If you have a 15 percent interest rate on your credit card, then after one month you are going to owe $230 on your credit card. Since you were not able to pay the original $200 on your phone bill, there is the chance you may not be able to pay the $230 on your credit card. As a result, a second month’s interest charge means you now owe $264.50. By using your credit card and missing one month’s payment, you now owe an extra $64.50. Miss another payment and you owe nearly half of what you originally borrowed.
You should never borrow money off of your credit card to pay a bill, and more importantly, you should never try and get a cash advance off of your credit card so that you can pay off your bills. Cash advances come with incredibly high interest and fees. You can often pay 25 to 30 percent interest, plus fees associated with using the cash advance.
A much better option that is available to you, other than paying for your bills with credit cards and cash advances, is to use the minimum payment system. Minimum payments are what you are required to pay to keep your bill from showing up as past due on your credit report. When you make the effort to pay with minimum payments, you are paying off that little bit, but you are still owing a lot of money. Therefore, it is important to use minimum payments, but you should not rely on them. If you only pay minimum payments on your credit cards, you are only paying off the interest. If you keep using your credit card while paying minimum payments, then you are simply causing yourself to fall farther and farther behind.
If you find you cannot afford to pay your bills, it may be time to scale back. By scaling back on your bills, you can save money and not have to worry so much about being late on your payments. You won’t have to use your credit card to pay bills and you won’t have to worry about collection action. This is by far the best option for you and your bills.
If you or anyone else you know would need more information on this post, feel free to visit http://www.creditrepairbydrjen.com
Tuesday, January 27, 2009
Thursday, January 22, 2009
Why should you avoid payday loans and cash advances?
Credit can be a dicey situation when you don’t know how to manage it properly. There are so many fees, interest payments, and more. It can become overwhelming and sometimes you will worry that you will fall behind. Two things you should do to keep from falling greatly behind with your credit and debt, is to take out a pay day loan or use cash advances.
Cash advances are when you take money out of your credit card at the debit machine. This gives you cold hard cash from your credit card and it can seem very appealing to do. However, the truth is that it is one of the worst ways to use money on your credit card. Cash advances have interest rates of as much as 25 percent to 40 percent. That means if you take our $200 in a cash advance, you end up paying between $50 and $80 extra in interest as a result. You should avoid cash advances at all costs. Paying that much interest will only set you back. On top of the interest rates, you can pay as much as $10 to $20 in fees for using the cash advance. Try and use online banking transfers instead of cash advances. Under no circumstances should you use cash advances on your credit card.
Pay day loans seem tempting. If you don’t have the money to pay your bill, you just write a post dated check to a pay day loan company and they give you the money you need at that time. After two weeks, the company cashes the post dated check and everything is square. Sadly, it is not that easy. Pay day loan companies will often take large amounts of interest on your loan. This interest can be as much as 40 percent per two weeks. On a $200 loan, you end up paying $280. There are also other fees attached to it. If by chance you end up bouncing the check because you still don’t have the money, then you have to pay an NSF charge. On top of that charge, there are charges with the pay day loan company, and your interest rate will increase as well. If it takes you an extra two weeks to pay back that $200, you could still owe more than that in fees and interest payments. This is why pay day loans are one of the worst things you can do. It is also why they are illegal in 12 states and severely regulated in 37 states.
Cash advances and pay day loans seem very tempting to use, but they are like a trap door to debt. The interest payments alone can leave you with your head just above water as you continue to take out loans to pay back other loans. Before you know it, your entire house of cards has fallen and you are struggling more than ever with debt. At this point, your only option may be bankruptcy.
If you or anyone else that you know would need more information on this topic, feel free to visit http://www.creditrepairbydrjen.com
Cash advances are when you take money out of your credit card at the debit machine. This gives you cold hard cash from your credit card and it can seem very appealing to do. However, the truth is that it is one of the worst ways to use money on your credit card. Cash advances have interest rates of as much as 25 percent to 40 percent. That means if you take our $200 in a cash advance, you end up paying between $50 and $80 extra in interest as a result. You should avoid cash advances at all costs. Paying that much interest will only set you back. On top of the interest rates, you can pay as much as $10 to $20 in fees for using the cash advance. Try and use online banking transfers instead of cash advances. Under no circumstances should you use cash advances on your credit card.
Pay day loans seem tempting. If you don’t have the money to pay your bill, you just write a post dated check to a pay day loan company and they give you the money you need at that time. After two weeks, the company cashes the post dated check and everything is square. Sadly, it is not that easy. Pay day loan companies will often take large amounts of interest on your loan. This interest can be as much as 40 percent per two weeks. On a $200 loan, you end up paying $280. There are also other fees attached to it. If by chance you end up bouncing the check because you still don’t have the money, then you have to pay an NSF charge. On top of that charge, there are charges with the pay day loan company, and your interest rate will increase as well. If it takes you an extra two weeks to pay back that $200, you could still owe more than that in fees and interest payments. This is why pay day loans are one of the worst things you can do. It is also why they are illegal in 12 states and severely regulated in 37 states.
Cash advances and pay day loans seem very tempting to use, but they are like a trap door to debt. The interest payments alone can leave you with your head just above water as you continue to take out loans to pay back other loans. Before you know it, your entire house of cards has fallen and you are struggling more than ever with debt. At this point, your only option may be bankruptcy.
If you or anyone else that you know would need more information on this topic, feel free to visit http://www.creditrepairbydrjen.com
Monday, January 19, 2009
What are debt collectors forbidden to do?
One of the worst things about being in debt and having a low credit score is the fact that you have to deal with debt collectors. The sad part of this is that many people do not realize just what debt collectors can and cannot do. By knowing what they can do, and are legally allowed to do under the Fair Credit Reporting Act, will help you stay a step ahead of them and not to fall into their traps.
First, debt collectors cannot threaten you to do something that they are not allowed to do. They cannot threaten violence or any crime of any type. They cannot threaten to take your property or your wages without a court order either. Second, debt collectors cannot swear at you, lie about who they are, lie about why they are calling you or contact you so often that it can be deemed harassment. They cannot call you at work either if you have asked them not to contact you at work. As well, it is illegal for a debt collector to call you before 8 a.m., or after 9 p.m.Third, in no way are debt collectors allowed to tell anyone else about your debt. They can only do so if they have a court order against you. This means that debt collectors cannot tell your employer about the debt, but they can call your employer to ask where to find you. Debt collectors cannot contact family members, except for your spouse if you are married, or your parent or guardian if you are under the age of 18.Fourth, a debt collector cannot trick you in order to collect on the debt. This means that they cannot lie about the legal status of the debt, and they cannot claim that they work for a federal or state government agency. They cannot use any paperwork that may make it look like they work for a government agency either.
Lastly, debt collectors cannot add a fee to the amount of the debt unless it is a special case. Also, if you have a lawyer, then the debt collector can only contact the lawyer if you have sent a statement asking them to contact the lawyer on your account.Debt collectors will try anything and everything to get you to pay back your loan or debts. However, sometimes they go a bit too far and begin to cross the line. When they do this, you need to be ready to act because by acting and not falling for their tricks, you can actually help your situation and even have the debt erased due to a threat of a lawsuit on your part. Knowledge is power and knowledge about your rights with debt collectors is very, very powerful, so know your rights. This is why it is important to keep records of when you receive calls from debt collectors, what they say to you and more. Anything that can be used to help your case will help you in the long run and get the debt collectors off of your back.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
First, debt collectors cannot threaten you to do something that they are not allowed to do. They cannot threaten violence or any crime of any type. They cannot threaten to take your property or your wages without a court order either. Second, debt collectors cannot swear at you, lie about who they are, lie about why they are calling you or contact you so often that it can be deemed harassment. They cannot call you at work either if you have asked them not to contact you at work. As well, it is illegal for a debt collector to call you before 8 a.m., or after 9 p.m.Third, in no way are debt collectors allowed to tell anyone else about your debt. They can only do so if they have a court order against you. This means that debt collectors cannot tell your employer about the debt, but they can call your employer to ask where to find you. Debt collectors cannot contact family members, except for your spouse if you are married, or your parent or guardian if you are under the age of 18.Fourth, a debt collector cannot trick you in order to collect on the debt. This means that they cannot lie about the legal status of the debt, and they cannot claim that they work for a federal or state government agency. They cannot use any paperwork that may make it look like they work for a government agency either.
Lastly, debt collectors cannot add a fee to the amount of the debt unless it is a special case. Also, if you have a lawyer, then the debt collector can only contact the lawyer if you have sent a statement asking them to contact the lawyer on your account.Debt collectors will try anything and everything to get you to pay back your loan or debts. However, sometimes they go a bit too far and begin to cross the line. When they do this, you need to be ready to act because by acting and not falling for their tricks, you can actually help your situation and even have the debt erased due to a threat of a lawsuit on your part. Knowledge is power and knowledge about your rights with debt collectors is very, very powerful, so know your rights. This is why it is important to keep records of when you receive calls from debt collectors, what they say to you and more. Anything that can be used to help your case will help you in the long run and get the debt collectors off of your back.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, January 15, 2009
What do you know about your free credit report?
One of the most important tools that you have at your disposal to protect your credit, and repair it, is your credit report. Your credit report is very important because it lists everything about your credit, what needs to be repaired, what needs to be fixed and what your credit score is. How do you expect to repair your credit score if you don’t even know what your score is? Knowing your score will tell you how much you have to repair your credit score by, and where to start. If you have a credit score of 750, then you will know that you probably don’t have to do too much credit repair. However, if your credit score is 500, you know you have your work cut out for you.On top of that, by seeing your credit report, you will be able to see if there is any problems on it, as in credit errors.
Credit errors affect roughly 75 percent of all credit reports. Credit experts state that one of the easiest ways to repair your credit report is to fix the errors that are not your fault. One credit error that is repaired can raise your credit score by as much as 50 points. When you are talking about interest rates and your ability to get credit, 50 points means a lot.You can get your credit report from the three major credit reporting agencies, with TransUnion being the best and most respected of the bunch. A credit report would typically cost you about $40 to obtain, but thanks to the Fair Credit Reporting Act, you have a trick up your sleeve. It is your own free credit report that you are entitled to every single year.
With the Fair Credit Reporting Act, you get a free credit report that you can use to repair your credit and find credit errors. The free credit report can come from any of the credit reporting agencies, and you can go to them directly if you wish. However, there are many websites that offer you the ability to get your free credit report through them. MyFreeCreditReport.com is one such site, but there are many more. However, you should be careful what websites you go to because some websites will be fronts for identity theft schemes. You put in your personal information, and they use it to steal your identity. Try and use well-known websites, or use the website of TransUnion to get the free credit report that you are entitled to under the Fair Credit Reporting Act.Your free credit report is the most important tool at your disposal for repairing your credit report. While you do get a free credit report each year, you should not limit yourself to only one credit report. Every six months is a good timeline to get your credit report. You will get one for free, and pay for one, but it will keep you knowing what your credit is like and it will keep you from becoming a victim of identity theft.
If you or anyone else you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Credit errors affect roughly 75 percent of all credit reports. Credit experts state that one of the easiest ways to repair your credit report is to fix the errors that are not your fault. One credit error that is repaired can raise your credit score by as much as 50 points. When you are talking about interest rates and your ability to get credit, 50 points means a lot.You can get your credit report from the three major credit reporting agencies, with TransUnion being the best and most respected of the bunch. A credit report would typically cost you about $40 to obtain, but thanks to the Fair Credit Reporting Act, you have a trick up your sleeve. It is your own free credit report that you are entitled to every single year.
With the Fair Credit Reporting Act, you get a free credit report that you can use to repair your credit and find credit errors. The free credit report can come from any of the credit reporting agencies, and you can go to them directly if you wish. However, there are many websites that offer you the ability to get your free credit report through them. MyFreeCreditReport.com is one such site, but there are many more. However, you should be careful what websites you go to because some websites will be fronts for identity theft schemes. You put in your personal information, and they use it to steal your identity. Try and use well-known websites, or use the website of TransUnion to get the free credit report that you are entitled to under the Fair Credit Reporting Act.Your free credit report is the most important tool at your disposal for repairing your credit report. While you do get a free credit report each year, you should not limit yourself to only one credit report. Every six months is a good timeline to get your credit report. You will get one for free, and pay for one, but it will keep you knowing what your credit is like and it will keep you from becoming a victim of identity theft.
If you or anyone else you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Sunday, November 9, 2008
How does your credit score affect your mortgage?
Getting a mortgage is a very stressful event in a person’s life. It is usually by far the largest loan a person will get in their life, and getting a mortgage you can afford, with interest rates that will not cut you down, can be very difficult depending on your credit rating. The question most people will ask themselves is “How is my credit score affecting my potential interest rate?”
While many people ask themselves this question, most do not truly understand how their credit score affects their mortgage interest rate. All it takes is a small percentage increase on your interest rate and you pay thousands more. For example if you have a mortgage worth $350,000 and you pay seven percent in interest, you will pay an total interest payment of $24,500. However, if that interest rate is only three percent more at ten percent, then the interest payment you make in total is $35,000. That is an increase of $10,500 on what you pay throughout the life of that mortgage. All it took was a three percent increase on your interest rate.
So, how does your credit score affect your interest rate? If you have excellent credit of 760 to 850 on your FICO score, you will pay about 5.780 percent in interest based on 2007 interest rates. If your score is 700 to 759, you will pay 6.002 percent, and from 660 to 699 you will pay 6.286 percent. If you have the average FICO score, which is 620 to 659, you will pay 7.096 percent. Naturally, as you fall lower on the credit score scale, the amount you pay in interest will increase. If you are at 580 to 619, which is a fair credit score, you will pay 8.583 percent, while 500 to 579 will cause you to pay 9.494 percent.
It would be pointless to look at a credit score below 500 because there is virtually no way to get a mortgage with a credit score that is that low.This shows the importance of making sure your credit score is very good, rather than fair by using credit repair services. If your credit score is 760, then on that mortgage above you will pay $20,230. However, if you are only 260 points lower at 500, then you will pay $33,229. That is a difference of just under $13,000 and all it takes is a few missed payments on your credit card, a collection notice and having too many credit cards.Your mortgage rate is tied directly with your credit score. The lower your score is, the higher the interest rate will be. As a result, you want to make sure that you have very good credit before you try and get a mortgage. Even getting your credit report sent to you can help because it will give you an idea of what interest payments you will be making. Nothing would be worse than being surprised by the interest rate, and then struggling to pay it down the road. No one wants foreclosure, so be smart before you get your mortgage in order to avoid complications later.
If you or anyone else that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
While many people ask themselves this question, most do not truly understand how their credit score affects their mortgage interest rate. All it takes is a small percentage increase on your interest rate and you pay thousands more. For example if you have a mortgage worth $350,000 and you pay seven percent in interest, you will pay an total interest payment of $24,500. However, if that interest rate is only three percent more at ten percent, then the interest payment you make in total is $35,000. That is an increase of $10,500 on what you pay throughout the life of that mortgage. All it took was a three percent increase on your interest rate.
So, how does your credit score affect your interest rate? If you have excellent credit of 760 to 850 on your FICO score, you will pay about 5.780 percent in interest based on 2007 interest rates. If your score is 700 to 759, you will pay 6.002 percent, and from 660 to 699 you will pay 6.286 percent. If you have the average FICO score, which is 620 to 659, you will pay 7.096 percent. Naturally, as you fall lower on the credit score scale, the amount you pay in interest will increase. If you are at 580 to 619, which is a fair credit score, you will pay 8.583 percent, while 500 to 579 will cause you to pay 9.494 percent.
It would be pointless to look at a credit score below 500 because there is virtually no way to get a mortgage with a credit score that is that low.This shows the importance of making sure your credit score is very good, rather than fair by using credit repair services. If your credit score is 760, then on that mortgage above you will pay $20,230. However, if you are only 260 points lower at 500, then you will pay $33,229. That is a difference of just under $13,000 and all it takes is a few missed payments on your credit card, a collection notice and having too many credit cards.Your mortgage rate is tied directly with your credit score. The lower your score is, the higher the interest rate will be. As a result, you want to make sure that you have very good credit before you try and get a mortgage. Even getting your credit report sent to you can help because it will give you an idea of what interest payments you will be making. Nothing would be worse than being surprised by the interest rate, and then struggling to pay it down the road. No one wants foreclosure, so be smart before you get your mortgage in order to avoid complications later.
If you or anyone else that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Thursday, November 6, 2008
How do foreclosures affect your credit score?
Right now, millions of people are going through the pain of foreclosure as the sub-prime mortgage crisis sweeps across the United States. As a result, those millions of people will learn first hand what can happen to their credit score when a foreclosure is put on it.
When a foreclosure happens, it means that the homeowner can no longer make payments on their loan. The property is then seized and sold. The owner of the property receives no money for this sale, and all the money goes to paying off the mortgage for the bank, with whatever is left over going to the bank. This will all happen after about six months of missed payments and a Notice of Default to the homeowner. After three months more of not paying, the sale date for the foreclosure is set and the house is up for sale due to foreclosure.
Everybody knows just how bad a bankruptcy can be for your credit score, but what about if you suffer a foreclosure? First, a foreclosure will stay on your credit report for seven years, while a bankruptcy will be on it for as much as ten years. In regards to your FICO score, it will plummet about 100 to 200 points. This means that if you have great credit at 700, you will most likely fall to about 500. However, if you had perfect credit of 850, you will fall to average credit of 650. It may seem that you can still get credit if your score is at 650 and the foreclosure may not be that bad, but it is. When you apply for credit, credit holders will see the big evil word 'Foreclosure' on your credit report. That means for the next few years, there will be no way you will get credit as many lenders will fear you could default on your loan to them, as you did with your mortgage loan.
Foreclosure is a very difficult situation to be in, but thankfully it is not the end of the world. As many people know, credit is ever changing and it is not set in stone. Therefore, over the seven years that you have to deal with a foreclosure on your credit report, you will be able to slowly repair your credit. To do this, you need to make sure you pay back your bills and credit card payments as you get them. You should slowly try and apply for credit as you go through the years, and you should even go to debt counselling as it will look good on your credit report.
Do not fear that everything is over when you go through a foreclosure. Millions of people have gone through the same thing and millions more will go through it as well. All you can do is dig your feet in, work hard to get through it and learn from the mistake of foreclosure and ensure it never happens to you again. Repairing your credit is at an all time importance and something that you can do yourself. Everything is determined by your credit score, so be alert, be prepare and fix your credit today.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
When a foreclosure happens, it means that the homeowner can no longer make payments on their loan. The property is then seized and sold. The owner of the property receives no money for this sale, and all the money goes to paying off the mortgage for the bank, with whatever is left over going to the bank. This will all happen after about six months of missed payments and a Notice of Default to the homeowner. After three months more of not paying, the sale date for the foreclosure is set and the house is up for sale due to foreclosure.
Everybody knows just how bad a bankruptcy can be for your credit score, but what about if you suffer a foreclosure? First, a foreclosure will stay on your credit report for seven years, while a bankruptcy will be on it for as much as ten years. In regards to your FICO score, it will plummet about 100 to 200 points. This means that if you have great credit at 700, you will most likely fall to about 500. However, if you had perfect credit of 850, you will fall to average credit of 650. It may seem that you can still get credit if your score is at 650 and the foreclosure may not be that bad, but it is. When you apply for credit, credit holders will see the big evil word 'Foreclosure' on your credit report. That means for the next few years, there will be no way you will get credit as many lenders will fear you could default on your loan to them, as you did with your mortgage loan.
Foreclosure is a very difficult situation to be in, but thankfully it is not the end of the world. As many people know, credit is ever changing and it is not set in stone. Therefore, over the seven years that you have to deal with a foreclosure on your credit report, you will be able to slowly repair your credit. To do this, you need to make sure you pay back your bills and credit card payments as you get them. You should slowly try and apply for credit as you go through the years, and you should even go to debt counselling as it will look good on your credit report.
Do not fear that everything is over when you go through a foreclosure. Millions of people have gone through the same thing and millions more will go through it as well. All you can do is dig your feet in, work hard to get through it and learn from the mistake of foreclosure and ensure it never happens to you again. Repairing your credit is at an all time importance and something that you can do yourself. Everything is determined by your credit score, so be alert, be prepare and fix your credit today.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Monday, November 3, 2008
Do you understand your FICO score?
Nothing has a bigger effect on whether or not you can get a loan, how much interest you pay and how credit will affect your life, than the FICO score. Fair Isaac Credit Organization (FICO) is the leading credit report company in the United States, and the number they assign your credit dictates your future.
The scores range between 300 and 850. The lower the number you have, the worse your credit is. If you have a score of 300, your credit is classified as completely abysmal. There is no way you can get any type of credit, and even if you somehow did, your interest rate would be so high you could never afford to pay it back. However, on the flip side if you have a credit score of 850, then you would have no problem at all getting credit. Your credit rating would allow you to have a lower interest rate, easier terms for your loan and you will have to put up much less collateral.
The reason that FICO is used so extensively is that it uses a system that takes into consideration much of your credit history so that companies can quickly and easily see where you lie compared with everyone else. If you have a score of 700, then you are just above average and companies will be more inclined to giving you credit. However, if you have a score of 500, then you are 150 points below the average and you will be unlikely to get the loan, or the loan terms that you had been hoping for.
Understanding how your FICO score is determined will give you a much better chance of repairing your credit. FICO places 30 percent of an emphasis on the amount of money you owe. This also takes into account your outstanding debt, including your mortgage, credit cards and auto loans. The length of your credit history has a 15 percent stake on your FICO report. The longer you have been using credit, the better the FICO score will be.
Ten percent of the value of your FICO score is put on the loans you have had and the mix of your credit. If you have had car loans, credit cards and mortgages, then your credit score will be better. Another ten percent of the score looks at whether or not you have sought credit in the past year. The more credit you try and get, the lower your score will be. Lastly, a full 35 percent of your credit score will be based on your payment history. This is why it is so important to pay your bills. If you don't pay your bills, then you will have a lower credit score.Your credit score has a huge affect on what kind of credit you can get. If your credit score is low, below 600, then your chances with the loan will be smaller. However, if the score is over 700, you will be able to get any loan you want.With that being said, it is so important to understand and recognize yor FICO score and keep working on improving it by making smart financial decisions with your credit.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepair.com
The scores range between 300 and 850. The lower the number you have, the worse your credit is. If you have a score of 300, your credit is classified as completely abysmal. There is no way you can get any type of credit, and even if you somehow did, your interest rate would be so high you could never afford to pay it back. However, on the flip side if you have a credit score of 850, then you would have no problem at all getting credit. Your credit rating would allow you to have a lower interest rate, easier terms for your loan and you will have to put up much less collateral.
The reason that FICO is used so extensively is that it uses a system that takes into consideration much of your credit history so that companies can quickly and easily see where you lie compared with everyone else. If you have a score of 700, then you are just above average and companies will be more inclined to giving you credit. However, if you have a score of 500, then you are 150 points below the average and you will be unlikely to get the loan, or the loan terms that you had been hoping for.
Understanding how your FICO score is determined will give you a much better chance of repairing your credit. FICO places 30 percent of an emphasis on the amount of money you owe. This also takes into account your outstanding debt, including your mortgage, credit cards and auto loans. The length of your credit history has a 15 percent stake on your FICO report. The longer you have been using credit, the better the FICO score will be.
Ten percent of the value of your FICO score is put on the loans you have had and the mix of your credit. If you have had car loans, credit cards and mortgages, then your credit score will be better. Another ten percent of the score looks at whether or not you have sought credit in the past year. The more credit you try and get, the lower your score will be. Lastly, a full 35 percent of your credit score will be based on your payment history. This is why it is so important to pay your bills. If you don't pay your bills, then you will have a lower credit score.Your credit score has a huge affect on what kind of credit you can get. If your credit score is low, below 600, then your chances with the loan will be smaller. However, if the score is over 700, you will be able to get any loan you want.With that being said, it is so important to understand and recognize yor FICO score and keep working on improving it by making smart financial decisions with your credit.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepair.com
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