A Personal finance blog to get rich
There is a lot of noise out there about what is true and what’s not when it comes to a credit score. Today, we will talk over some misconceptions and tell you where to learn more about everything credit-related.
Here are the most common credit myths that many people still accept as true.
It can be both frustrating and debilitating to have instances of collections activity lingering on your credit report. This is particularly true when the information was placed there erroneously.
Notations of collections activity can stay on your report for up to seven years, which can make it difficult to get a good interest rate on a loan, it might even cause you to be denied one.
The knowledge we gain from word of mouth is often peppered with a lot of credit score myths, misunderstandings, and lack of clarity. It’s easy to give in to them, forget to recognize advantages, and live oblivious to the provisions offered by various services. Credit cards are not immune to this.
Sure, it’s important that you maintain a good credit score, but at the same time, it’s highly likely that you’re under a lot of assumptions regarding the factors that influence them.
How you use your credit is an essential part of your financial history. Undeniably, lenders and credit card issuers use your credit score to determine whether or not you are qualified for a loan. Besides that, landlords may also use your credit report to know if you will be a good tenant. Even some of the employers also use this number to determine if you are good in financial decisions.
With that said, you should maintain a good credit score and or at least prevent bad credits. To help you get started, here are five doable ways you can do to manage your credit history.
Are you aware of the fact that over 500,000 Americans file bankruptcy every year? This is a staggering number and it is no surprise when you factor in the current shape of the economy. While it might be somewhat refreshing to know that you are not alone in your struggle, it could also be a sign that the country is headed for a recession.
Whatever this situation is, you need to know that there are still repercussions after filing for bankruptcy, and one of the repercussions is a bad credit report. This is why it is imperative that you understand everything you possibly can about filing bankruptcy and how it can affect your credit report.
This is an interesting topic for me to write. I am almost obsessed with my credit score. I check my latest score every now and then, if not every week. In 2016, the average credit score was 699. This is in the “good” range. But what is considered a bad credit score?
While there are different credit tiers we all know about, do they mean you don’t qualify for loans, credit cards, a house, a car, and other necessities? It’s important you know what your credit score means to your financial health.
There are many reasons that people fall into debt. It could be a job loss, a sudden illness or the mishandling of money. Unfortunately, once you get overwhelmed with your debt it can become difficult to make your monthly payments on time.
What usually follows are a few late payments and then a few missed payments. This can present quite a challenge to restore your good name. The potential cost of having bad credit can be huge unless you follow these steps to recover from bad credit.
Trying to gain better control over your finances can be a great goal to have. While all the different factors that affect how you save, borrow, and make money can seem complex when you’re starting out, you can easily become well educated about your finances by breaking up the knowledge you need into smaller chunks.
Understanding your credit score can be a great place to start. Having better credit can come with a huge set of advantages that can potentially help improve all of your finances. Here are the basics of what your credit score means and how you can improve it if needed.
This weekend I was doing some de-cluttering exercise at home. Many unwanted papers I got rid of. While doing so, I came across a handwritten note at the back of my old bank statement, probably it was the first bank statement I received after opening an account with Bank Of America. The title said “A Complete Guide to credit score”.
I came to America in August 2005, I belonged to a country where there is no system for maintaining credit scores. There, Lenders, and probably government too, believe in the fact that money can be reclaimed by force.
Anyways, that’s another story, which I will touch upon a bit in various upcoming blog posts. Today’s topic is about that handwritten note.
Surprise surprise! my FICO score reached an all-time high this month. I am now at 813. It’s so satisfying that our personal finance habits, the habit of handling credit responsibly has paid off. I have posted several articles on improving credit score. Today I’ll write about my credit score, how it reached 813, the factors that went in my favor, also the ones that’ll have to be improved further. Let’s first start with what’s on FICO.
Congratulations – You have an exceptional FICO® Score. The below factor(s) are informative but not significant as they represent very marginal areas where your score was adversely affected. Keep up your good financial habits! Key Factor(s) affecting your FICO® Score:
