Its not always true that folks with lower credit scores are not financially responsible, it could be due to unforseen circumstances or situations in life that are beyond their immediate control. Some people feel just because they were born on third base that they scored a triple, if your from a family that bore the financial burden in order to make it easy for you, it may be unfair to critisize others who were born on the opposite side of the tracks. This is by no means an excuse nor should serve as a means to dodge your financial obligations, on the contrary it should motivate you to turn tragedy to triumph. Let’s be a little more empathetic because everyones circumstance is totally unique and markedly different. There is only so much you can scrape and scratch and save with a low income but HUGH financial responsibilities.
FICO, which was once named Fair Isaac Corporation, is the corporation that compiles and computes your credit score. You can start building your credit when you turn 18, and it will stick with you for your entire life. Those without a credit history are said to have no credit history (instead of a score of zero); the lowest score you can have is 300, and the upper limit is 850.
There are, however, some key differences. One is that, unlike in the United States, where a consumer is allowed only one free copy of their credit report a year, in Canada, the consumer may order a free copy of their credit report any number of times in a year, as long as the request is made in writing, and as long as the consumer asks for a printed copy to be delivered by mail. This request by the consumer is noted in the credit report as a ‘soft inquiry’, so it has no effect on their credit score. According to Equifax’s ScorePower Report, Equifax Beacon scores range from 300 to 900. Trans Union Emperica scores also range from 300 and 900.
You forgot one simple thing in your practice. each new credit account splits your credit age average. So taking on that many accounts at once is what hurts your score. But good news is more account less of a split and the faster year lenght of credit goes up. Most people don’t realize there is several factors to a heathy credit report. Also having to many types of the same line of credits will hurt you in the lenders eyes. Good example 1 visa,1 master card, 2 store cards, 1 personal loan. 1 morgage. If all your credits are loans it shows you got less borrowing potential, if all is revolving credit it shows you can max every thing out to fast. just few things to consider for a healthy porfolio
The biggest factor in play when it comes to an average credit score and income is the credit utilization. Credit utilization should always remain at under thirty percent to maintain a good average credit score.
I have built my credit back up from my low score due to delinquencies from my abusive ex. He ruined my credit, and it has taken me about 4 years to fix my credit. My scored was up to 719 in Nov 2016, and I was able to get a loan and buy my first Home. I also was finally able to get a decent credit card. My previous one was a 250 dollar limit First Premier card with monthly and annual fees (those without credit have to pay to start building credit) Currently my score is 675, since I just got a new mortgage, but I applied and got two other major credit cards, and cancelled my First Premier one finally, after 7 years usuing that one. My score will take a little time to get back up past 700, but I don’t need the credit now, having made my home purchase and currently having 5100$ credit limit, which I use responsibly, keeping my limit under 20%, and paying them off every month on time. I am sure my credit will be back up in 3 months.
Considering that if you took all the credit card debt in the U.S. and spread it out among all the households, each household would be over $15,000 in debt, it is tempting to think that most American’s have terrible credit.
Well then you clearly have a high salary and don’t have to worry. And, by the way, you missed my whole point. People sometimes find themselves in financial predicaments through no fault of their own – job loss, illness, divorce, etc. – that can make life less than perfect and certainly not as neat and tidy as you seem to think it will always be. Life has a way of tossing serious curveballs at people. And if you live in a place like the Bay Area, that can knock you off course pretty harshly and very fast even if you think you’re ‘prepared.’
Pavelka found out about his stellar credit score after he went shopping recently at Bass Pro Shop outside of Toledo. Pavelka is an avid hunter, and the store had a sale on a piece of equipment. Plus, if you used a Bass Pro credit card, the store would pay your sales tax, which would amount to more than $50 for his big purchase.
I know some of these score factors can seem very frustrating. First of all, it sounds like you are on the right track in terms of getting your credit together after your divorce. So congratulations for that.
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The very best thing you can do is pay all your debts on time and whittle down the balances on your credit cards. (Experts recommend using no more than 30% of your overall limit, and less is even better.) If you do that and keep accounts open, you’ll start restoring your credit score — and eventually become eligible for credit products with friendlier terms.
I was wondering Ive been working on credit repair and have had some things removed from my credit to only show back up a month or two later on credit report and how does medical debt collection affect my score I am 100% service connected disabled had to go to er a while back and the va has yet to pay the medical have requested statments from the collection agencys but say they dont have ist that a verifcation of debt not a letter from them saying I owe them
Many credit managers have an educational background in financial management or accounting. Degrees specifically in credit management are rare, although there are a few community colleges that offer associate degree programs with a specialization in this field. There are bachelor’s and master’s programs in financial management or accounting that offer coursework in credit management or credit risk management. There are also certificate programs in credit management, credit risk management and corporate credit management. Coursework in credit management can include investment principles, credit regulations, business law and money management.
Jump up ^ “Equifax Completes Acquisition of Australia’s Leading Credit Information Company, Veda Group Limited, for Total Consideration of USD$1.9 Billion”. Equifax Australia. 2016-02-25. Retrieved 2018-03-06.
Credit scores are often used in determining prices for auto and homeowner’s insurance. Starting in the 1990s, the national credit reporting agencies that generate credit scores have also been generating more specialized insurance scores, which insurance companies then use to rate the insurance risk of potential customers. Studies indicate that the majority of those who are insured pay less in insurance through the use of scores. These studies point out that people with higher scores have fewer claims.
The highest credit score for any given credit scoring model is typically somewhere around 850, and if you have ever hit this mark, even for a moment, count yourself a rare financial creature.1 Is it even possible to hit this level of perfection in the realm of credit worthiness? Yes, some people have done it.2 Is attaining the highest credit score a worthwhile goal? Probably not.
Another common question is whether checking your own credit report or score can hurt it. The answer is no. Checking your own credit scores doesn’t lower them. Checking your own credit report creates a special kind of inquiry (known commonly as a soft inquiry) that isn’t considered in credit score calculations. Without the risk of harming your scores by checking your credit report and scores frequently, don’t steer away from viewing them as often as you need to.
Having negative information on your credit report, such as late payments, civil judgments, or too many hard inquiries, can make it more difficult to get approved for credit cards and loans with favorable rates and terms. The good news is that this negative information will be automatically removed from your credit repot after a set time period.
I assume your asking if getting more credit cards lower your scores–is that correct? The answer is “it depends,” A new account will affect your scores but usually it levels out after a few months. But that doesn’t mean you want to load up on a wallet full of cards in a short period of time.
Until Credit Bureaus are truly regulated and focus on cleaning up their error riddled database consisting of anyone using unverified methods of submitting often false or mis-represented credit information to all three credit bureaus. These bureaus have a financial incentive to focus on selling those, who simply want their credit corrected, overpriced worthless monitoring products while making the effort of correcting false reported info difficult and based solely upon “their members” verification. The FCRA needs amended to overhaul the entire credit reporting system and place oversight under ONE entity with power to significantly fine up to $5 mil in egregious errors that are robbing consumers of billions of dollars and lining the pockets of both the creditors and the bureaus. Republicans are blind to the real underlying issues and the current regulations simply need to be enforced.
Pavelka and his wife weren’t always so well off. He grew up in Cleveland, off Buckeye Road, raised with his brother by his single mother after his father died when he was 1. The three lived in the upstairs of a house owned by his grandfather, surviving on Social Security and VA death benefits. His wife, Helga, an immigrant from Austria, had a similarly tight upbringing.
Here are some financial tips to get there: 1) Merely paying your bills on time is no longer enough. Don’t get me wrong about this fundamental habit; the consequence of not paying what you owe on time is the ding on your credit history every time. Since we’re talking about shooting for the highest score, you’ve got to do more than pay on time. Instead of paying one time per month, why not do two payments per month or on a bi-weekly basis? Show the credit card companies how prudent you are. 2) Spend no more than 10% of the credit limit, consistently. If your credit limit is $1,000, then the magic number for you not to cross is $100. Think creatively in advance what you can do with a $100 budget. Could it be your gas bill, eating out, books, etc? Use your imaginations, and best of luck!
We shouldn’t use our credit cards as an instant loan for things we can’t afford? What happens when you need something right away like a car repair and don’t have the money? Save up for it instead? What if you don’t make enough money to save? It’s so easy to say you can pay off credit card(s) in full every month when you have the sufficient income to do so but what do you do when you lose a job at no fault of your own and can’t get another one right away to pay your bills on time or at all? BTW, my elders did a fantastic job at raising me, religiously or not; the true problem lies with those in the work place who can’t seem to accept and allow people to remain at a job which reasonably leads to people defaulting on their credit!
Hope you see this. It has been almost half a year. 6 more months and my equity loan becomes a CAR LOAN. SOME credit unions will accept certified notary papers explaining your predicament and WILL consider such in any decisions concerning loans. You can and SHOULD also have an addendum added to your FICO or credit report. You may need a lawyer for this. It will be a lot faster and cheaper than TRYING to have the ex’s obligations removed. If i were to see your divorce papers i could advise you better but the man stating that you are still responsible could be mistaken. I am NOT an expert in finance. I practice criminal behavior. Any lawyer worth his spit will tell you.. “If you can afford it i can make it happen” Sorry, just trying to make you smile. 616 is not the end of the world and certainly better than MANY AMERICANS TODAY! I HATE CREDIT CARDS. I advise 12 month loans of 1.5-2k from a credit union. Have the loans paid directly out of your checking or savings. To be sure there is NO MISTAKES. Ask for your exact total interest payment. Be certain you add this to the account that will be paying off the loan. Be smart. Make sure there are no other fees or costs.Check on your loan at least once a month. At a decent credit union a loan like $1500 shouldn’t cost you more than $150 for the year and the next one less and less… 616? you may even end up paying way less on a 12 month loan… Anyway, that is how I did it. Or should i say my wife?? Think of this. Every year I have a giant 4th of July party. Every June I take a personal loan of $1500 from my CU. I purchase fireworks wholesale and set up a stand. By the time of my party on the first Saturday AFTER the 4th of July. I have not only financed the entire party but also have all the money to pay back my loan. These loans usually cost me $40. Now imagine I did this with a credit card instead? Let’s say the standard store credit finance charge of 29%. That is making me sick….. So, GOOD LUCK…. let me know how you made out.
My credit was excellent and then I decided to get a new car, motorcycle & some of those cc’s with good points, rewards. That dropped my score down to bac down fair at the moment! I have quite a few cc’s and all are paid in full each month. So I know my score will go back up. Actually, I”m trying to raise it as high to 850 as I can. It seems after following these forums, you can see what you need to do to have an excellent score. I had a mortgage a couple cc’s. Not enough to get that “excellent” score. I’m starting to see they want you to be able to “handle” your credit very wisely. A higher cl but a very low utilization seems to do the trick with a various mix of loans. Thanks everyone for your input. I would be stuck in the 600’s forever if I didn’t start reading this forum!
However, credit scores are usually not the only things lenders will look at when deciding to extend you credit or offer you a loan. Your credit report also contains details which could be taken into consideration, such as the total amount of debt you have, the types of credit in your report, the length of time you have had credit accounts and any derogatory marks you may have. Other than your credit report and credit scores, lenders may also consider your total expenses against your monthly income (known as your debt-to-income ratio), depending on the type of loan you’re seeking.
You can get personal information about what is hurting your credit score the most. When you check your credit score from Experian, you’ll get a list of the individual factors that are impacting your score. To improve your credit score, work on these factors first.