Impact of Canceling Unwanted Credit Cards on Your Credit Score

Sometimes we end up with unwanted credit cards that we applied for without giving much thought. But getting rid of such cards is not such a simple decision as it has a bearing on your credit score.

People end up with these cards because they apply for many cards at the same time thinking that they will be rejected for a few or it will be quite sometime before they will be approved for them. They are also under the impression that they will have plenty of time later to decide if they really want the card or not. But that really is not the case, as it becomes tricky to get rid of the card without affecting your credit score negatively. [Read more…]

When to Opt for a Voluntary Foreclosure

Earlier people used to do everything to save their house from being foreclosed by the banks. But with the recent collapse of the housing market, a lot has changed. Many people who had bought homes without paying any deposit of their own ended up having no equity in their house and their financial situation just keeps getting worse. In many such situations, people are left with no option, but to foreclose their house. [Read more…]

Get Errors in Your Credit Report Corrected

Only last month, one of my close friends spotted a big error in his credit report. His home mortgage was wrongly shown as unpaid when it has been paid for over a year now. Such errors in credit reports are not uncommon and it is a good idea to check yours to avoid getting bad deals on future loans. If you find an error in your report, then do not panic as it is not difficult to get the mistakes corrected. [Read more…]

Understanding Hidden Costs of Credit Cards

Credit cards can prove to be very expensive if you do not handle them cautiously. When you take a card, there would be various hidden costs that you need to understand. Most people ignore the terms and conditions document that they get with the card, but this could prove to be quite costly. [Read more…]

Can Canceling Credit Cards Damage Your Credit Score?

Canceling credit cards seems like a great idea to curtail all the impulsive shopping and splurging. When these pieces of plastic are adding unnecessary dollars to the monthly bills, many think of getting rid of the temptation by canceling their credit cards. But canceling credit cards can impact more than just the spending patterns. They can affect how the card holder would be perceived by future lenders. [Read more…]

New Method of Calculating FICO Credit Scores

FICO, the company formerly known as Fair Isaac, developed the famous FICO credit score, which is used by lenders across the country to assess the creditworthiness of borrowers. The company has recently released a new method for calculating credit scores, called FICO 08. [Read more…]

How to Check Your Credit Score Online

You should always keep a tab on your credit score in order to ensure that when the need arises you can avail of new loans at low interest rates. Consumers have a right to get free annual credit reports from three big credit reporting agencies under the Fair Credit Reporting Act, 2003. [Read more…]

Tips on Taking Out a Home Equity Loan

We hear a lot about home equity loans these days, but not many of us are fully aware as to what such a loan means and how you can benefit from it. Home equity loans are a type of loan in which the borrower uses his equity in his house as a guarantee for the loan. [Read more…]

What Affects Your Credit Score Negatively

The after effects of the mortgage loan crisis are going to be felt for years to come. Already loan and mortgage lenders are tightening the criteria of lending and you may feel the change when you are out shopping for a loan.

The FICO credit score is the most widely used primary factor to assess you risk as borrower. The score ranges from 300 – 850. The higher the score, the better the interest rates and terms offered to you on credit lines and loans. A score of 700 and above has so far been considered a healthy number, but this is now changing with the lenders becoming more risk averse. The lenders have now upped their criteria for eligibility and better borrowing rates by almost 20 – 40 points. [Read more…]

Common Misconceptions about Credit Scores

A number of misconceptions float around about credit scores; most of them are actually propagated by totally profit centered debt settlement companies. It is important to be aware of what is true and what is not, to avoid getting fooled by manipulative people. Here are some of the popular misconceptions about credit scores. [Read more…]

How to Improve Your Credit Score

The recent turmoil in the economy has made credit card companies much more selective about who they give a card to. Only those who have good credit record are able to get a credit card with lucrative terms. [Read more…]

Credit History Definition

Credit bureau or credit information center is an agency that collects information on the credit history of individual consumers in a country. It is usually a centralized agency with plenty of information stored in a computer database that reflects the credibility of consumers. This information is highly useful for lending institutions in rendering loans to individual customers. [Read more…]

How to Improve Your Credit Score Rating

If you use the Internet and have an email account then you have probably already been inundated with thousands of spam messages and pop ups begging you to log in to receive your free credit score. While there are thousands of offers out there, there are two things that always remain constant when it comes to your credit score. [Read more…]

What Credit Score Is Good

You may have an outstanding loan application that you need to be approved for the furnishings of your new home. You may be worrying over the financing of that spanking good car you just love to get your hands on. Or you may be praying to the heavens that your student loan be approved or else you won’t afford to take your classes next semester. [Read more…]

Better Credit Score

Credit Score, also known as FICO Score, is the statistical data gathered by a credit bureau rating how well you pay your debts. The range is from 300-850. You can get your credit score for free from either one of the 3 top credit bureaus in the US: Experian, Equifax, TransUnion. [Read more…]

Average Credit Score

A hot topic nowadays that has been the subject of many books is credit score. A person’s credit score is the numerical interpretation of his credit behavior. It basically is your grade on how well you pay, if you pay on time, etc. It is also known as a FICO score and was invented by Fair Isaac. [Read more…]

Free Credit Score

When you say credit score this is about an individual’s creditworthiness. It is measured based on the statistical analysis of a person’s credit background that usually come from credit bureaus such as Experian, TransUnion and Equifax. Several credit scoring techniques exists such as reduced form credit models, logistic regression or linear regression, hazard rate modeling and weight of evidence models. [Read more…]

Good Credit Score

Some people are good with money – Some people are not. Some people are drowning in debts – Some people are not. Some people run away from their obligations. – Some do not. Some have bad credit records – Some do not. If you’re one of those who unfortunately have bad debts, do not worry because you can do something about it. Be assured that there are a lot of programs that can help you. Anybody can have a good credit score if they know what to do. [Read more…]

What is a Good Credit Score

As consumers we have been hearing a lot about credit record or credit score. Many would agree that these two mean a lot since they are bases for anything that has to do with finances. There is a great deal being extended to this because in reality, we can never function properly in society if our credit reputation is stained. But what is a good credit score, really? [Read more…]