Credit report and credit score

How does a financial institution you she evaluates before you credit? You can request your free credit report to examine before applying for a credit or detect errors or fraud in connection with your application.

When applying for a credit or financial institution considers the following to assess your application.


Your capacities


The lending institution must assess your ability, the financial point of view, to settle your debts. When you apply for credit, your lender will ask you to provide information on the status of your income and your debts. It will then be able to assess your net income and may decide to pay you or not pay you, depending on your level of debt.


Your capital


Your capital is the value of your assets including your savings, your investments and your property. The lender will want to ensure that you have adequate resources to secure your credit. The accumulation of capital and goods is a positive signal for a creditor and tends to mean that you are financially responsible. If you are young and this is your first request for credit, it is best that you have a guarantor who can take the responsibility to repay your debts in case you experience financial difficulties.


Your credit


Using your credit, a creditor knows your current debt and knows if you pay your debts on time and in full.

More you represent a higher credit risk, depending on your credit report, credit score or any other criteria used by the lender, the more you will face high cost of credit. It may therefore be advantageous to postpone a purchase on credit if it is expected to improve its credit in the future. For this reason, regular review of your credit report can lead to significant cost savings.

Three Tips to increase your credit score quickly

Increase Your Credit Score in 30 Days- Three tips to increase your credit score quickly

When you borrow money from a lending institution to purchase an item or fund a project that you have applied an interest rate. The interest rate you receive is a direct reflection of your credit score and credit profile. Borrowers with perfect credit will obviously get the lowest rates and therefore have smaller payments. But what if you have less than perfect credit or just want to improve your credit score in 30 days?

There are many things inside you can use for an affordable and effective way to increase your credit score in 30 days price.

The fastest way to increase your credit score method is to increase credit limits on revolving credit accounts, this is easily done with a phone call to the creditor in most cases. With this method, you try to increase your credit limit to a point where the balance of your current credit is now 45-50% of the balance. This trick can increase your score up to 50 points in 1 month

Another useful tip to increase your credit score must be added as a permitted use on friends or relatives credit card account. You want to make sure that the account that you added to get in good standing and have a high credit limit with a low balance.

Disputing old false information on your credit report is a good way to increase your credit score and is very easy to do. If you have a copy of your credit report you can challenge falsely declared or negative accounts that are a few years. This is easily done on the websites of the credit bureaus or writing a dispute letter to the credit bureau. If you do not know how to go about this process there are credit repair companies can do for you. There are many books auto repair credit and e-books available online as well.

These 3 tips when applied should increase your basic credit in 30 days. However, the most important thing you can do to keep your credit score is increased by always paying your bills on time and do not borrow more, then you can pay.


Check and restore its credit rating

Financial institutions use the personal credit rating to assess the creditworthiness of a person before granting credit. This credit rating is directly dependent on repayment habits. Unpaid bills or loan repayments overdue are all violations that can be reported to a credit reporting agency. These independent companies provide and exchange information on how borrowers / debtors pay their bills. They establish credit records, including credit rating.

Credit rating


Obtain small loans, to cosigned a loan for a person with good credit history or use their savings as collateral are as many ways to establish his personal credit rating … the fact to pay its debts on time and in full. You can also request a credit card and pay at least the minimum payments to establish good credit history. Conversely, bad history of credit established by examining factors such as outstanding debt bankruptcy or numerous NSF checks. Ask several times during the same year that increases the credit limit can also tarnish a credit rating.

A good credit score can facilitate the process of obtaining a loan, while a bad one can cause rejection or higher interest rates. A bad can also reduce the chances of getting a job.


What is a credit score?


The credit score indicates a person’s risk is for lenders. The credit rating agencies and lenders use a mathematical formula to determine. This formula takes into account, inter alia, payment habits, measures of recovery or bankruptcy, existing debt, account history of the person, the number of recent inquiries made ​​and the type of credit used . Other information such as data on mortgage and personal inquiries can be included in the credit report, but they usually do not affect the credit score.


Check my credit score

Check my credit score

When you go to the doctor for your annual review, you do not want to know the results? Identify potential problems; you can treat them before they become major problems. The same is true when it comes to your credit report. If you do not have it periodically check that you might be ignoring a problem that will continue to snowball until it becomes financially devastating.

Your credit is the most important in determining your financial future factor. It is a compilation of your credit history and a roadmap of how you treated your financial responsibilities. Lenders check when evaluating for a car loan, mortgage or credit card. Even some employers see your credit report when they evaluate you for a job or a raise.

Did you know that 3 and 4 credit reports contain inaccurate information? These errors can negatively affect your score prevent you from getting a loan or appreciate the interest rate you deserve. By law, the credit reporting agencies must eliminate errors, but they need you to police your own report and identify.


Review your report can also ensure your safety. Identity theft happens more often than you think. Although it only takes a second for someone to steal your identity, following could take years and years to clean. By reviewing your credit report, you can be alerted to suspicious activity even before notice from your bank or Credit Card Company.

Checking your credit report is free and easy. If you do not have to check recently, do it today.

How to improve your credit score fast?

images (21)There is no single or rapid improve your credit score so. Pay attention to companies which intend to improve your credit score quickly and make you pay for this service. You should contact your provincial or territorial government to inform you about the rules that govern this type of company before entering into a contract. However, instead of using this type of company, you should contact one of the credit rating agencies to determine whether the information placed in your file is correct.

Here are some tips on how to improve your credit score:

Always pay your bills on time. Although the payment of utility bills such as telephone, cable and electricity is not included in your credit report, some cell phone companies may report late payments to credit reporting agencies, which could hurt your score.

Try to pay your bills in full by the due date. If you cannot do this, pay at least the required minimum amount shown on the monthly statement of your credit card.

Try to pay off your debts as quickly as possible.

Do not exceed the limit of your credit card. Try to keep your balance well below the limit. The higher your balance, the higher your credit score suffers.


Reduce the number of credit applications you make. If too many potential lenders ask about your credit in a short period, your score may suffer. For cons, the fact that you ask for information about your own credit report does not affect your score.

Make sure you have a history of credit. You can acquire credit history using a credit card. It is possible that you have a low score simply because you have never contracted loans and demonstrated your ability to repay them.

Try to restore your credit score applying for a “secured credit card”. To get a secured card, you must make a deposit with the issuer of the credit card. Usually, your credit limit is a percentage of your deposit. If you always pay your credit card account with guaranteed until the maturity date, you will establish a history of credit.

How to improve your credit score – the basics of personal finance


The health of your credit score is extremely important for your finances for a number of reasons. To start with good credit score is exactly what the banks are looking for

when deciding whether or not they will lend you money. More often than insurance brokers do not own or often look at your credit card to determine whether or not and choose as a potential client or prospective tenant. This article will describe a number of ways to improve your credit score and help you in your personal finance basics.

1. Pay your bills on time

The reason this is first on my list is because it is probably the most important to follow when trying to increase your credit score standing. If you visit a bank and you want to apply for a mortgage, the first thing the bank will find is that if you perform regular bill payments when they are due.

These bills include everything from your cable, home or cell phone, credit card or other bills. Your credit score directly reflect if you pay for, miss or are late on your bills. If they find that you always miss or are late payments, there is a good chance they will approve you for the loan.

Useful tips so that you will all bill payments:

-Create a new checking account and allocate sufficient liquidity at the beginning of each month for your bills that you always have enough.

-Create automated email reminders a few days before when your bills are due.

-Create automatic payments through your online banking.

Keep writing when each bill is due calendar. Update and check regularly.

-Buy everything possible with money. Not having a credit card means less Bill forget.

2. Never Let Go To Bills Collections


This may sound very simple, but this collection agency exists because thousands of people allow their unpaid bills go that far. You cannot forget your bills. Your bills will not just disappear. If one of your unpaid bills go to collections, you have to pay extra, the major interest and your credit rating will be tarnished.

3. Keep credit card balances low

The simplest basics of personal finance is whether you should use a credit card, to maintain the balance to zero or as low as possible. The number reflects the higher your credit scores the most recent balance on your statement. Even if you pay your bill in full each month, you should never exceed more than 30% of your available credit. The less you use the most.


4. Use your credit cards

This may seem a little odd, but try not to spend a company credit card to another. If you jump around and credit cards constantly open and close your credit score may be affected. If you can use the credit card you when you were 20 and stick with it. If you primarily use a different credit card, try to keep your old cards active and use it every once in a while. Make sure you pay it in full each time.

5. Check your scores once per year


Credit scores can change quickly. One day, everything can go well tomorrow and your credit score could be terrible. Looking into your credit score each year is a leading personal finance base that we should all follow. This will allow you to correct any mistakes that banks or you could have done.

Keep in mind, if you check your credit score more than once a year or on a regular basis, it will have a negative impact on your scores. Checking once a year is your best option. Make sure to dispute errors, such as unpaid bills or late payments when you are certain that they were paid on time or there may be other issues that you might find.

The high credit ratings the opportunity to create low interest rates on mortgages, auto loans, personal loans and credit card rates. The simplest basics of personal finance that you should follow are to maintain the health of your credit score so that you will be able to enjoy all sorts of different financial possibilities. The sooner you fix the problems you may have with your credit card as soon as you put everything in order. By following these tips, you will be completely on your way to improving the health of your credit score.


How to improve your credit ratings

Lenders use credit rows to determine the cost of loans, as levels determine what interest rate they will charge loan applicants. Lenders divide the different levels in a similar manner, but they can change their discretion to lenders. In addition, there is no rate for guaranteed interest assigned at any type of credit rating a borrower credit.


Interest rate

Most lenders apply differential pricing loans based on credit ratings of borrowers. However, there is no rule of the entire industry to divide the levels of credit because lenders choose their own break points. Some lenders may charge a higher interest rate to a borrower who has a credit score below 700. Other lenders may charge a higher rate, unless the score of the borrower is less than 690.

Credit Ratings


Credit ratings may be as high as 850. But borrowers who have obtained results of 740 or more are generally in the upper level of credit and get the best loan rates. Consumers who have the lowest credit ratings can work on their farms by reducing their debts and to ensure they pay the bills on time. However, a Bank rate article titled “How credit scores affect your mortgage rate,” warns that there are times when raising a credit score does not affect loan terms: someone who tries to raise his score of 760 800 probably will not get better loan terms even if he can increase his score.

Divisions level

Customers auto loan with notes of 720 or more can be expected to be in the first part and should have access to the best rates for car loans, according to Edmunds. The third level includes credit ratings ranging from 670 to 699. The fourth stage, with some of the highest lending rates, including car buyers who reached a credit ranging from 630-669. Lenders generally classify people who have credit scores 619 or beyond subprime borrowers. They usually have a harder time obtaining loans without paying high interest rates.


Any level of credit you are, it should compare interest rates to various financial institutions. A significant difference can be noted in interest costs, even for people with credit scores in the fourth tier. For example, people who obtain auto loans in five banks in 2010 paid about 8 am 45 percent in interest, but credit unions accused an average rate of 7.68%, according to Edmunds. Adding even a third of a percentage point to a sum of $ 165,000, the results of the 30-year mortgage over $ 11 172 in additional interest charges over the life of the loan.

The Highest Credit Score

There are several ways to establish credit is available to build the highest credit score. Some include debt service of a vehicle loan and make a mortgage payment, but the most common and easiest way to build personal credit is to use a credit card. When you receive a credit card there are many rules that you must understand, as debt service, and you should not load more credit than you can afford to repay.


If you make two thousand dollars a month, you should not go to the mall and charge your credit card more than two thousand dollars. Or for that matter, any amount that you will not be able to repay is not a good idea. This is simply irresponsible and can ding your credit if you use it in this way, which is not the reporting process for the best credit score. As you use your credit card on the items you normally buy and could normally afford, then you will do well.


However, you want to establish a small debt and be able to show that you can maintain it responsibly. A common that many old timers realize is that you should always pay the exact amount of money you borrowed at the end of the month myth. It is a good rule to include, but not always the best practice to be applied in the construction of credit to establish the highest credit score. The credit bureaus do that you can accumulate debt and pay the minimum monthly payment. After paying your monthly payment, if you have a few dollars there, you’ll be fine. In fact, it will actually help improve your credit score. Make sure you do not exceed 35% of your credit limit.

Increase Your Credit Score

When it comes to how to build credit, it is very difficult to know what resources are effective and which are not effective.

téléchargement (1)The office is always changing the way they formulate scores, and nobody really knows the exact formula used to apply a FICO score to a file people. However, we have enough information for FICO released that allows us to put together, very precise, proven methods to start increasing your score.

Depending on your current situation (if you start with a clean slate or have had financial problems that lead to such problems on your report) the times it will take for your score to increase vary some.

It will obviously be much easier and faster to build good score, much faster, if there is no derogatory marks in the past, but if there is this simply means that it may take a little longer to increase your score.

The proven strategies on how to build credit:

Tip 1: Get a secured credit card: It may be difficult to obtain unsecured credit card when you have bad history or no history, so you may need to get a card secure credit.

These are great because they will report to all three credit bureaus, and if managed right (keeping low balances and payments on time), you credit score will increase over time and create enough of a credit history to be able to get a credit card unsecured more traditional.

There is a very small chance of being rejected for a secured credit card because they ask you to give a deposit up front to secure your credit line. Ideally, you’ll be able to convert them into a unsecured credit card after 12-18 months of good payment history.

Tip 2: Get a co-signer of a loan: Another great way to building credit is to find someone close to you to cosign a loan. Get a co-signer is when someone who has established credit history and puts his good / her name on the dotted line next to you for a loan.

The terms are the same as they would be if the person was co-signed for the loan on their behalf, which can be very favorable. As long as payments are kept on time and made a positive way is a great way to build credit. A word of caution, however, if you default on the loan, the cosigner will also negative marks placed on their credit file.

Best Strategies on How to build credit

Tip 1: Open a bank account: This is often overlooked because the bank accounts do not report to credit bureaus, but if you start to establish a good story to keep your bank account in good order, then you may be eligible a good interest with your bank for loans and credit card rates.

It is much easier for a bank to approve you for a loan when they have a history of how you take care of your obligations. If they see that there is not discovered and money is well managed bank can have the ability to overlook some credit problems or no credit history and you approve for loans that will help you build credit.



Tip 2: Understand how credit scores are made: Understanding how a credit score is made, it helps you make the right decisions when it comes to building credit. As you begin to establish new credit accounts, balances you carry on your credit cards can throw up your credit score 100 points anyway. This means that if you have a history of keeping your balances low, while you build credit, you will be rewarded with a better credit score than someone who carries a balance near the limit of each month.


Tip 3: Keep your credit card accounts open: The only thing that closing accounts credit card will do is lower your credit score.

As you build credit sure you never close any of these accounts, unless you absolutely must. Even if you rarely use the accounts, closing them will only lower your credit and lowers your average length of credit history on your accounts.

Just know that more than one account is opened and favorable terms, the better it is for your credit score. It is best to use your credit card is often, but be sure to keep your balances low. (This is in understanding how the results are made).

Well there you have it. If you follow these tips on how to build credit, you will be well on your way to put yourself in a position to have a great credit score and be able to qualify for any type of loan you could possibly ever wanted.