High Credit Scores Rarely Just Happen

Posted on 2015-07-01 09:00:49

High credit score rarely just happen. It is usually those who conscientiously think about their credit habits who have the highest credit scores. And it pays off. A high credit score will get you better terms on a loan that can keep money in your wallet instead of a creditor’s. That should be motivation to work hard and be responsible with your financial obligations. Here are habits of high credit score achievers. Always pay bills on time. This is a “no exceptions” rule. On most credit score scales, your payment history accounts for about 35 percent of your credit score. Even a single late payment can cause a significant drop. Surprisingly, the impact will likely be more serious for someone who already has a good credit score. Keep account balances low. In other words, avoid overspending. Most experts recommend keeping your account balances below 25% of your credit limit; some recommend as low as 10%. Even if you pay bills in full every month, most credit score models look at the balance reported by card issuers—usually your statement balance. If you use credit cards to earn rewards, consider paying down the balance before the statement closing date.

See How High Your Credit Score Is Keep older accounts open. There is certainly room for debate on this one with several things to consider. Every time you close an inactive credit card account you risk shortening your credit history, and that is one of the factors used in calculating your credit score. If you have other active accounts of a similar or older age, closing an account probably won’t impact your credit history. Closing an account can also affect your credit score by lowering your overall available credit. That means whatever credit you use suddenly becomes a higher percentage of your available credit. Don’t collect credit cards. Don’t apply for credit you don’t need. Those with the highest credit scores are actually those who use credit the least. When you open a new credit card, you may be doing it to get 15% off your purchases, but creditors view it as more credit available for possible misuse. Don’t impulsively open a credit account for a small savings on your purchase. It is rarely worth it. A high credit score is a reward for responsible use of credit. The reward is well worth the effort. Credit score tracking with MyFreeScoreNow will help you see how your credit score is improving over time. Improve Your Credit Score. Free Consultation. Proven Results. (877) 882-2256

Why Monitor Your Credit

Posted on 2015-06-24 09:00:39

Credit monitoring simply means paying attention to your credit report. But why? Don’t the credit bureaus do that? No, the credit bureaus (Equifax, Experian and TransUnion) are merely repositories of the information sent to them by credit card issuers and other lenders. Credit monitoring is an important concept because credit affects so many aspects of our lives. Most people know that what’s in your credit report can affect whether or not you qualify for a loan or the terms of a loan. Some people are surprised to learn that employers, insurance companies, utility companies, collection agencies and landlords use credit reports. Credit can even be a deal breaker in personal relationships. With so much riding on your credit, credit monitoring makes good sense. A credit monitoring service is a convenient and cost-effective way to stay on top of your credit report. It takes the burden off of you. Whenever there are significant changes your credit report, you automatically receive an alert—usually email. Credit monitoring puts you at the helm. Here are 4 important reasons to consider credit monitoring.

See Your Credit Score Now Credit monitoring helps maintain an accurate credit report. With a credit monitoring service you will know about significant changes as they happen, putting you in a position to take swift action to correct any mistakes. With credit monitoring, there are no surprises when a creditor—or anyone else—pulls your credit report. Credit monitoring may detect signs of identity theft. While nothing can prevent identity theft, credit monitoring looks specifically for the types of information that could signal identity theft in progress. Credit monitoring puts time on your side, helping to minimize the damage done by identity theft. Credit monitoring tells you who is looking at your credit report. Creditors, employers, landlords and other business entities may have a legal and legitimate right to view your credit report. But some of those looks, called inquiries, can have a negative impact on your credit and credit score. Credit monitoring lets you know whenever there’s a new inquiry so you know who is looking at your credit report. Credit monitoring is convenient. A credit monitoring service frees you up to tend to other areas of your life without worrying about checking your credit report. Knowing you will be notified whenever there are significant changes to your credit report brings peace of mind. The benefits of a credit monitoring service outweigh the nominal cost. An accurate credit report is important to ensure you aren’t paying for someone else’s mistake. Improve Your Credit Score. Free Consultation. Proven Results. (877) 882-2256

Saving Money with a Good Credit Score

Posted on 2015-06-17 09:00:38

Most people who use credit cards know they have a credit score. But many don’t understand just how much a good credit score can help you save money. Your credit score is calculated based on the information in your credit report. The main factors that affect your credit score are: Payment History. More than anything else, lenders want to know how you pay your bills. Available Credit. How maxed out are your credit card accounts? Length of Credit History. Lenders view a longer credit history favorably. Types of Credit Used. Most lenders view a proven track record with a variety of types of credit (mortgage, car loan, credit cards, etc.) as a good thing. New Credit. Many credit scoring models consider how many applications you have made for new credits—whether or not they were approved. Although this usually has a minor impact on your credit score, it is something to think about when you fill out a credit application in return for 10% off your purchase.

See Your Credit Score Now Credit scores are used to determine interest rates when you borrow money on everything from a credit card to a home mortgage. This is where your credit score can make a huge difference – not only in monthly payments, but also in the total amount you repay over the life of a loan. Consider two people buying a home with a $200,000 30-year fixed-rate mortgage. Based on credit scores, one has an excellent credit score and qualifies for a 3.697% interest rate with monthly payments of $920. The other has a credit score that barely qualifies and gets a rate of 5.269% with monthly payments of $1,107. Over the course of 30 years, one pays $131,282 and the other pays $198,434 in interest. Your credit score can also affect the interest rate on your credit card accounts. If you aren’t paying your balances in full each month, this, too, can keep money out of your own wallet. The bottom line is a good credit score can save you each and every month. If this is an eye opener for you and you are lamenting that you have a low credit score, never underestimate the power of time and good credit habits for changing that low credit score to a high credit score. Improve Your Credit Score. Free Consultation. Proven Results. (877) 882-2256

Protect Your Identity by Saying No

Posted on 2015-06-10 09:00:48

Keeping your personal data personal can be challenging. It’s almost certainly already out there in a lot of places. With identity theft commonplace today, it’s important to learn when to say No, especially when asked for your Social Security number. Social Security numbers used to be the standard identification number used by just about everyone. They are unique, making them a convenient way to identify individuals. But, Social Security numbers are a key piece of information used by identity thieves to create new identities. It is especially important to safeguard your Social Security number today. There are entities that still need your Social Security number today, such as state motor vehicle departments, welfare offices and tax authorities use Social Security numbers to verify identities. Social Security numbers are required by businesses such as banks that report to the IRS. And Social Security numbers are the key identifier used by credit card issuers and on credit reports, so lenders and landlords may need them.

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Who else really needs your Social Security number today? One thing is for sure. It’s not everyone who asks for it. Many businesses continue to ask for it just because that’s the way it was done in the past. They might not even use it for anything, but it’s there in your file where it can potentially fall into the wrong hands. With the risk of identity theft so high, consumers need to be on guard. When someone asks for your Social Security number, ask why they might need it. If you aren’t satisfied with the answer, say “No.” Here are a few places where your Social Security number should not be required: Public schools. Your address can be confirmed with a utility bill. Rewards programs. Rewards programs are not financial obligations. They are merely marketing tools and should not require your Social Security number. Job applications. It’s not until you are hired that an employer needs your Social Security number. However, some employers now check credit reports as part of the hiring progress, and they would need your Social Security number to do so. But, your permission is required. It may be hiding in the fine print. There is no need to go to extremes. Using common sense before providing your Social Security number can minimize your risk of becoming an identity theft victim. Recognize that some entities have a legitimate need and right to it, but others are just asking out of habit, ignorance or with evil intent. Keep identity theft in the back of your mind before handing it over.

Improve Your Credit Score. Free Consultation. Proven Results. (877) 882-2256

Credit Score – The New GPA

Posted on 2015-06-03 09:00:49

If you are graduating from high school or college, you have probably been quite focused on your GPA. You probably tracked it throughout your school years and knew when it went up or down—and why. With graduation now a memory, it may be freeing to put thoughts of your GPA behind you. But when you enter the post-graduation world, you have a new sort of GPA—your credit score. Like your GPA, it’s a number you should track and be aware of as it changes. Credit reports and credit scores are closely related, just as your school transcript was related to your GPA. Let’s look at both.

See Today's Credit Score Now Credit Reports Your credit report is a collection of data that tells the story of how you handle credit. It lists your accounts and shows how much credit is available to you, your outstanding balances and whether or not you pay on time. Like your school transcript, it has all the nitty-gritty details of what’s taken place. Credit reports are maintained by credit bureaus (also known as credit reporting agencies). Credit bureaus are private, for-profit companies that collect information from merchants, lenders, landlords and public records. Creditors are not obligated to report to the credit bureaus (Equifax, Experian and TransUnion), but most creditors are happy to do so because they also benefit from the information in credit reports when they make credit decisions. Credit Scores In simple terms, your credit score is a three-digit number that sums up the information in your credit report. It provides lenders and others with a quick way to analyze your credit history and current situation. A complex mathematical formula compares your credit report details with millions of others, generating a credit score that reflects your creditworthiness at that time. As the information in your credit report changes, your credit score changes. Why It Matters Lenders look at your credit score report as a prediction of how likely you are to make your payments and make them on time. A lender may use your credit score to calculate the rate you pay for a loan; the lower your consumer credit score, the higher the interest rate. But credit scores don’t stop with creditors. Insurance companies, utility companies, landlords and even employers are interested in how you have handled credit. Your credit score sums that up quickly and easily. Don’t make the mistake of ignoring your credit score. It can affect your life long after you’ve forgotten your GPA. Improve Your Credit Score. Free Consultation. Proven Results. (877) 882-2256