|
|
|
Do you know your credit score? Your credit score has become the most important number in your life. Better Qualified has developed the Credit Solutions Kit to help you maintain the highest score possible.
We Acheive You RESULTS In Four Simple Steps: | |
1
REVIEW: | Your entire Credit report for inaccurate erroneous information.
| 2
DISPUTE: | All inacurate information on your credit report on behalf. | | | | | 3
CREDIT BUILD: | Advise clients on the most effective ways on establishing credit. | 4
RESULTS: | Review,
Re-evaluate & Respond on clients behalf.
FREE OF CHARGE! |
Credit Scores Has Grown In Importance Do you know your credit score? If you don't, you're not alone. Forty percent of Americans have never obtained their score, according to a survey commissioned by the Consumer Federation of America and Washington Mutual. That means a lot of consumers don't know anything about the number that affects their ability to get a mortgage, a low interest rate on a credit card, and even a job.
"Credit scores have become one of the most important numbers in the lives of Americans," says Stephen Brobeck, executive director of the Consumer Federation of America. Employers, for example, increasingly look up prospective employees' credit scores to judge their level of "personal responsibility," he says.
That's why Brobeck is concerned that so many people still don't know how credit scores are calculated and how to get a good one. People often incorrectly assume that income, age, and race influence the score, he says, which may make them less motivated to try to improve it. (Scores are based only on credit history.) According to the survey, most people also don't know that cellphone companies, landlords, and home insurers often use the scores as part of customer background checks.
Just one late payment can cost a person thousands of dollars over the following five to 10 years because credit card companiesbase interest rates on credit scores, says Anthony Vuoto, president of Washington Mutual card services.
The bank has developed a score simulation test to show how different factors would influence a score of 670. If a payment is missed on an otherwise up-to-date account, the score could drop 25 to 60 points. Six months of on-time payments would be likely to improve the score by 20 to 50 points. Paying down 90 to 100 percent of revolving balances could cause as much as a 100-point improvement.
Even small score increases can generate significant savings. Washington Mutual estimates that raising a credit score by 30 points would save an average consumer $76 a year in credit card finance charges. That same 30-point increase would save about $20 a month on a 36-month car loan. Brobeck says once customers' scores fall below 660, they are no longer considered good candidates for prime interest rates.
Customers with scores below 600 are usually forced to pay high subprime loan rates. You want a score above 760. Scores generally range from 300 to 850, with most folks clustered in the 600s and 700s. Tumble below 620 and you fall into subprime territory, if you can even find a lender to do business with you. Score above 760 and you'll get the lowest interest rates available.
|
|
Some slip-ups count against you more than others. Your billpaying history counts for 35 percent of your score. How much you owe contributes another 30 percent. Other factors are howlong you've used credit (15 percent), how often you've applied for credit (10 percent) and what types of credit (such as cards and car loans) you use (10 percent). You can find out why your score is so low. A credit reporting agency must tell you which factors negatively affected your number. For example, your report might note that you have several late payments on your credit report. Knowing what you've done wrong can help you change your behavior and improve your score. It's not only lenders who check you out. Some insurance companies use your number to set your premiums. Phone companies, landlords and employers may also look at your score to decide if they should give you a cell-phone contract, rent an apartment to you or hire you. It's never too late to improve. Credit scores can change daily, so get cracking now. First correct any errors in your credit report. Pay your bills on time and keep your credit card balances low. Instead of transferring debt to a less expensive card, pay it off. Finally, apply for new cards only when you need them. Be a big spender at the wrong time The bigger your total balance as a percent of your total credit limit across all your credit cards, the lower your score will be. Some estimates say that you lose 1 point for every percent of your credit limit that you use. So if you have a total credit limit of $10,000 and have an outstanding balance of $4,000 (40%), your score would be 40 points lower than if you had a $0 balance. Ideally, credit experts advise:
"You never want your balance to exceed 30 percent of your credit limit.."
To boost your score: Don't charge anything for at least 60 days before applying for a loan. That way it's likely that all the payments you've made to date will be reflected in your credit score by the time a lender requests it. If you can't pay off your total balance in full, at least keep it under 30 percent of your totalcredit limit.
Your credit scores can save or cost you thousands of dollars a year. Knowing your scores is the first step to devloping a game plan to raise you scores. Time is the most powerful weapon in this epic battle so get cracking today! the first step to developing a game plan to raise your scores. Time is the most powerful weapon in this epic battle so get cracking today.
|
|
|
|
|
|
