Credit Rating « Financial Advisor – Financial Information – Credit Report, Bankruptcy, Debt Management etc.

Credit Cards: What You Need To Know

Studies have shown that people generally maintain a business relationship with their first card issuer for 15 years, which is why creditors want to get customers when they are young. The relationship lasts so long because the young consumer doesn’t know how to find better deals.

Many people are suggesting that credit card companies are aggressively trying to get students hooked on credit by luring them with T-shirts and other freebies when they apply for cards. This guide is designed to give you the facts you need to be a wise consumer and the tools to use credit to your

Your National Credit Score (United Kingdom)

The information in your credit report is key to getting the loans you need, but it is only half the story.

Before deciding whether or not to lend money, many organisations take your report, plus additional information included on your application form, and generate a credit score. This score predicts the risk involved in granting you credit.

Calculating your score

Computer programs score your application by looking at how past customers with similar profiles to yours repaid their credit commitments. Every lender uses a slightly different formula that represents its own and industry experience and these may be adjusted according to the type

Improve Your Credit Rating (United States)

As surprising as this may sound, the vast majority of consumers don’t know what their credit score is. That fact is almost as bad as not knowing what your blood pressure is, because by the same token, by the time you discover that it is not where it should be, it is frequently too late to avoid the detrimental or adverse effects of a poor credit score, or high blood pressure.

Sometimes, credit scores go by the name of FICO scores. Approximately ten percent of your FICO score pertains to a detailed analysis of the number and types of accounts

How credit rating is determined

Credit ratings are determined differently in each country, but the factors are similar, and may include:

Payment history – a record of delinquent payments, generally being more than 30 days, will lower the credit rating.
Control of debt – Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower’s after-tax income.
Signs of responsibility and stability – Lenders perceive things such as longevity in the borrower’s home and job (at least two years) as signs of stability.
Re-Aging

Financial Advisor – Financial Information – Credit Report, Bankruptcy, Debt Management etc.

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