Tuesday, July 29, 2008

Clean Credit Report - Easily Raise Your Credit Score 100 Points

Do you know what your credit score is? Many people understand that they have a credit score, but they don't really know how it is actually calculated. If you want to improve your score or maintain good credit you should know how credit scoring works.

Credit scoring is the way that lenders determine how likely you are to pay back the money you borrow. It basically represents you risk level. The lower your score, the higher a risk you are to a lender. The higher your score, the less of a risk you will default on a loan.

With good credit comes low interest rates and favorable terms. Your credit score will determine much more than interest rates. Lenders, landlords, cellular companies and even your insurance company will look at your credit score in determining whether or not to do business with you. If you have a low credit score, you may pay higher insurance premiums and have a harder time borrowing money.

You've probably heard of your credit score called a FICO score. This is the score based on the Fair Isaac & Co. credit scoring model. These scores are based only on the information found in your credit report. FICO is not the only type of score out there. You can have a different credit score from each of the three major credit reporting agencies. It is possible to see as much as a 50 point difference between two scoring sources.

There are five major factors that go into your credit score. They are weighted differently, so some parts appear more important than others. However, they all will affect your final score.

1. Payment History

Your payment history makes up 35% of your total credit score. Your payment history considers whether you pay your bills on time or are late making payments. It will look at the frequency of late payments and how far behind you are on payments. How many accounts do you pay on time? Have you had major credit problems or filed for bankruptcy? Paying your bills on time each month will raise your credit score.

2. Amount Owed

The amount you owe will determine 30% of your total credit score. This section looks at the total amount you owe and what types of accounts you have open. Do you have large balances on all of your accounts? How much available credit do you have in comparison to the amount you owe? How much have you paid down on your accounts since they were originally opened? Paying your accounts down responsibly and not having high balances on your credit cards can raise your score.

3. Length of Credit History

The length of your credit history will result in 15% of your credit score. The longer your credit history, the higher your score. How long you've had certain credit accounts open will affect your score, as well as how long it has been since you've used your accounts.

4. New Credit Accounts

Ten percent of your score is based on how many new credit accounts you've established. How many new accounts have you recently opened? How many requests for your credit have been made? How long ago where you shopping for credit? Rate shopping usually will not hurt your score if they are made within a short period of time.

5. Overall Mix of Credit

The final 10% of your credit score is based on the mix of credit you have -- credit cards, installment loans, mortgage loans, secured loans, etc. The more balanced you are, the higher your overall score in this area will be. You want to have a mix of all types of credit.
There are several ways to improve your credit score. Start by paying your bills on time. This is the one factor that will make the most impact on your credit score. Pay down your debt and limit your applications for new credit. You should also check your credit report and take the time to correct any inaccuracies

Student Credit Cards - Just the Basics

Full-time students will rarely have the time to apply for a credit card let alone build credit outside of class and, in many cases, a full to part-time job. Student credit cards are available to 18 and older students who want to establish credit in their own name at little risk. But what exactly is a student credit card?
A student credit card is a convenient means of being able to purchase books, study materials and other necessities that are vital to a college student without the worry of identity theft or mismanagement of money. It is not completely necessary to be employed in order to obtain a student credit card.

As expected, most student cards have a low line of credit as well as a low APR. Although building credit through pre-paid cards such as credit cards offered by gas companies, a student card is often times the optimal way to go. However, students must keep in mind that a credit card is still a credit card and that any credit used is technically a small unsecured loan. The best way to avoid digging a steep, personal debt hole is to avoid spending money that is simply not available. A subtle 'trick' to credit cards that goes, for the most part, unnoticed, is that transactions made on the card will not be charged with a percentage fee should the card holder simply pay off the debt before the next billing cycle.
Meaning, should one buy a sweatshirt and then charge it to a credit card, then make a simple online bill payment or even paper statement before the next billing cycle then the credit card companies will simply consider it as a temporary loan, paid in full with no, if not minimal interest. In other words, it's almost as if the sweatshirt was paid via cash, just at later time; beware though that the 'pay it later' mentality is the most common cause of credit card problems. As long as that impulsive buyer's mentality is kept in check, most students should be fine with one or two credit cards.

One or two credit cards may help credit ratings and score, but, contrary to urban myth, having more than two will generally hurt if not lower credit scores and rating. What really matters is the ration of credit available to credit used versus the amount of credit cards owned; much more complicated than a simple counting of credit cards. Students who pay their balances regularly are the people, who benefit from having multiple credit cards as the line of credit used is low, available credit high, and number of credit cards limited.

When it comes to learning about personal financial management, for students, a student credit card is certainly a prime option to consider. Always make sure to make wise purchases and to check monthly statements carefully to verify whether you have been charged aptly, since at times there are errors on billing statements concerning purchases through student credit cards. Student credit cards are meant to be a stepping stone into a greater financial world, with greater financial opportunities. As long as the balance is paid every month and credit line is not exceeded, a student credit card can be the very boost needed to get young adults financially and credit worthy.

Are Banks Raising Credit Card Rates to Shore Up Their Finances?

There is little doubt that over the past couple of years many banks have been hiking up the fees and charges on their credit card products, and people that are not as financially savvy as others have been left to pay the price. It seems that over recent months the situation may have become worse, with credit card providers flocking to increase the fees and charges on many credit cards.

Banks have certainly been feeling the pressure over recent months, with the global credit crunch causing huge problems when it comes to shoring up their finances, and it seems that one of the ways in which they have decided to do this is through increasing the rates and fees on their credit cards, as well as increasing rates on mortgages and loans.

People are urged to check the fees and charges on credit cards carefully in order to see what they will actually be paying, and in many cases card providers will not hike up the actual headline interest rate but will focus on the hidden charges such as cash transaction fees, annual fees, and the like.

One industry official from a credit card guide recently said: "It is nearly unprecedented to see so many providers raise their purchase rates over such a short period. Generally, hiking the purchase rate is considered a last resort for lenders, as they have to put this headline rate in their adverts. If they need extra cash, they will normally do other things, like increase the fees for transferring a debt from another card or for using the card at an ATM to withdraw cash."
With this in mind it is more important than ever now to really do your homework and compare credit cards before you make a commitment, as you could save yourself a fortune in terms of your borrowing costs. And remember, it is not just the actual APR that you need to look at but also the various fees and charges that are applied on the credit card.
By looking at the bigger picture and comparing a range of suitable credit cards from different providers you can get a much better idea of which card is both suitable for your needs and offers value.

Consider a Credit Card, Even If You Have Bad Credit

Are you an individual whose credit history leaves a little to be desired? If you are a person who is suffering from any type of financial issues because of having bad credit, then you are certainly not alone. In our fast paced society of today, for a large number of us, it can be a very hard task to keep up in the financial world. Many of us, at some point in our life will suffer the effects of receiving a few black marks along the way on our credit history.

Luckily, there are many credit card companies and other financial institutions that realize this. Because of this fact, several companies have made it possible for you to apply for and receive a credit card, even if you have bad credit.

The advantages that you can benefit from when you have a spot free credit line are endless. It is no secret that everyone would like to have a blemish free credit line, but in reality, this simply is not the case. There is however help available to all individuals, no matter how bad your credit history may be.

When you have that handy piece of plastic in your purse or your wallet at a time of need, or just because, would be a great way for you to begin re-establishing yourself a good line of credit. Rebuilding your credit would be beneficial to you and your entire family.
There are many different situations that can occur where the use of a credit card would be extremely helpful. Not only having the funds on hand when you need them, but for the purpose of establishing good credit. Some of the many situations that can occur where a credit card could be very beneficial would be an unexpected medical emergency, an over-due bill, being in between paydays, a birthday or holiday that's just around the corner, and many others.

If you have made the decision that you would like to go online and apply for a credit card, be sure to take your time in reviewing all of the information, and the fine print that is available on each credit card that is offered. Then all you would need to do is simply decide on which card would best fit your particular needs, at rates that are acceptable to you.

It is so much easier today than ever before for individuals to be able to go online and find a large amount of information on a variety of credit cards that are offered. Having the ability of going online in the comfort and the privacy of your own home when you are comparing what each card offers, along with the specific interest rates and other fees that apply to each particular card can be fast, easy, and convenient.

Credit cards are no longer just for those who have good credit. Now, there are many options available for everyone, including those who have bad credit. It is just a matter of deciding which card would work best for you.

Credit Card Counseling Debt Consolidation

People with good credit score, who have a high level of revolving credit debt, can easily get loan at lower interest rates for credit card debt consolidation.
People who have less credit but have equity in homes can choose credit card debt consolidation with home equity debt consolidation loan.

But some people are being totally consumed by credit card debt. Such people often live from paycheck to paycheck. Most of these people need help to consolidate credit card debt.
If you are drowning in high interest credit card debt and wish credit card debt consolidation, nothing to worry; credit card debt counseling is most successful and best way of tackling this problem.

If you find any problem regarding credit card debt consolidation, it will be wise to seek debt consolidation counseling.

Be very cautious while deciding upon a company for credit card debt consolidation. Even non-profitable groups can be dishonest. Some of them are just brokers who do very little to eliminate your debt and charge high fees.

You can ask to other people who have already gone through debt counseling.
How credit card counseling can be helpful for you?

1. Consolidation counseling will help you negotiating with your creditors to offer you credit card debt consolidation loan at lower interest rates.

2. Right debt consolidation counseling will help you increasing your debt pay off time length.
3. They will help you learn how to be in control of your debt.

4. Counselors will help you know how transferring your balance to zero interest rate credit card is helpful in credit card debt consolidation. Equally important, you learn how to be in control of your debt rather than allowing it to be in control of you.

One or two meetings with debt counseling will provide you required information to eliminate credit card debt.