 Wysłany: Sob 21:17, 12 Mar 2011 Temat postu: 3271 |
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| Getting Started To Raise Your Credit Score
Wouldn't it be nice to have credit card companies and banks offering you loans and credit cards at unbelievable rate with huge grace periods, just for the privilege of having you as one of their customers? Those with credit score above the 750 mark are the typical recipients of such offers, much more than they could ever use. Did you ever ask yourself what is wrong with this picture? Are you thinking to yourself that these offers are being made to people who really don't even NEED the credit? To an extent, this is true. Credit card companies and financial lending institutions like to have customers who are a low risk to them. Their entire lending portfolio is based almost entirely on the factor of risk and how likely it is that the people they have loaned money to are going to pay it back. If you have a high credit score, you therefore have a low risk to the lender and you are going to get the preferred rates. But if your credit score is lower, then the lender's risk is much higher, especially if you have bad credit, and the interest rate is going to be set higher to cover the lender's risk in loaning you the money. While this may not seem logical, it really does, at least from the lender's perspective. I know one person who has about 50 or so credit cards at any one time, based on offers he has received through the mail. He has excellent credit with a credit score above 800. He will get the credit card at the very enticing offer of no interest for 6 months or something like that, will charge things to it while also collecting airline miles or some other affinity type of thing, then either pay it off completely, or transfer the balance to the next card offer that comes long 6 months later. He gets about 4-5 free airline tickets per year through this process, and his money out of pocket for that is virtually zero. Can you join such an elite group? Yes you can but it is not going to happen overnight. But even with that said, there are many things you can do to hasten the process. The very first thing you need to do is to find out where you are now. If you don't know (and most consumers do not), then you will want to get copies of your credit report from each of the three major credit reporting agencies. Chances are better than excellent that you will find errors in your credit report, which in turn cause your overall credit score to be calculated as lower than it should really be. These errors do not auto-correct, but rather they remain on your credit report for years if you do not report the errors. Your next step is to ensure that you pay each and every outstanding bill that you have on time. This is the single most important thing you can do to raise your credit score. If possible, try to work it out so that your outstanding balance on any of your credit cards is no more than 25-30% of your credit limit on that card. That will rate very favorably for you and not have it look like you are maxed out on your cards. That shows responsibility and future planning to the creditors and your credit score will go up. Put forth the effort to raise your credit score and that effort will pay off in spades for you in the long run. Maybe you don't need more credit right now, but when you do in the future, it will be nice to get a very attractive loan program and to have lenders fighting over the opportunity to get your business. For more information and additional insights on how to Raise Your Credit Score as well as getting free copies of your credit report from each of the credit bureaus, please visit our web site at http: //www. credit-help-center. comTopics related articles： asic 7396 article6896 tod 9883 |
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