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Saturday, May 19, 2012

Posts Tagged ‘credit score’

The Good Credit Score Range How Things Have Changed Since The Great Recession

Last Updated on Monday, 20 June 2011 01:27 Written by GuestPoster Monday, 20 June 2011 05:07

Before 2008, a good credit score range encompassed scores between 650 and 800. Average credit encompassed scores between 550 and 650, while bad credit was any score under 550. However, after The Great Recession took place, lenders began changing their perception. Now even a 700 score is considered too low. In fact, if you peruse Facebook pages or message boards related to finance, you will see many horror stories of people with 700 to 800 credit scores getting turned down for loans.

With that said, consumers must look past the numbers. Yes, if possible, they should try to get in the 700s, as that has become the new 650. However, they should also start saving, in the event they have to put 20 percent down on their mortgage. With a 700 credit score and tens of thousands in the bank, consumers WILL get approved. They may not be able to take advantage of the no-money-down loans that were so popular in the past, but they will be able to get an affordable fixed-rate mortgage.

Consumers with bad or average credit can also get approved with 20 percent, but they will probably be given an adjustable rate mortgage. Adjustable rate mortgages fluctuate, which makes things difficult for buyers. A mortgage of 1,000 one month could jump to 1,200 in six months just because the interest rate changed.

In summary, being in a good credit score range does matter, even if the playing field has changed. So if your credit is not in the 700s, you need to work on getting your finances together. Use the Annual Credit Report network to get a free credit report online. Take note of any irregularities and contact the credit reporting bureaus to get them fixed. Afterward, work on paying down your debt. Even if you cannot pay it off completely, if you can lower your debt-to-income ratio, you can still increase your score significantly.

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Reasons Why You Need To Check Your Credit Rating Score Scale

Last Updated on Wednesday, 8 June 2011 09:28 Written by GuestPoster Wednesday, 8 June 2011 04:33

The world we live in today is becoming hugely dependent on the need for credit. The economy is flooded with it, that it can no longer function without it. Today we use the credit card to buy everything we need. Buy now and pay for it later is the new mantra. In the beginning credit was a great idea as it could enable most folks to buy the things they wanted without having to save up for years. You could buy that dream car right now. As long as you could afford to pay it back there was not a problem and paying it over a number of years made this very easy to do. However, many people began to abuse their credit cards and when something unexpected came along such  ill health they found themselves unable to pay their debts.

For the reason the your credit score is becoming very important. Having a score that is below 720 on the credit rating score scale can cost you a lot of money and hassle. Bank and credit card companies use your credit score to determine how risky you are to lend money to. With a low score you are deemed as a higher risk. This can mean higher interest rates as well as greater borrowing restrictions being imposed. Banks do this because they need to offset the extra risk of lending you money.

There are many factors that can lower your score but the most prominent are such things as having too much debt and late payments on credits outstanding. Fortunately, the good news is that you can improve your credit rating by applying a number of restore credit score strategies. The first step is to acquire a copy of your credit report. You can pick this up for free from the top 3 credit bureaus which are Experian, Trans Union and Equifax. The credit report contains information relating to your finances and credit history such as the amount and type of credit you have. Check through each of the credit reports and identify any entries in the report that may be wrong or out of date. Contact the relevant agency as you have the right to dispute this and have it amended.

Another way to improve your score is to identify how many credit card accounts you have. For example, having 5 or more credit cards can count against you. Therefore, cancel most of your cards so that you have a maximum of 2 only. Make sure that you clear the outstanding balances of the credit card accounts before cancelling.

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