Tag Archives: credit report

Not Sure Where To Start Repairing Your Credit? These Tips Can Help!

March 1, 2018   Personal Loan

Having terrible credit can affect your daily life in a number of ways. It’s harder to own a home and interest rates are higher on cars, insurance and a number of other purchases. If you’ve had a hard time keeping your credit rating up, here are a few tips to get your credit back in good shape.

One of the best ways that you can do in order to keep a good credit score is to pay for a monthly copy of your credit report. This will allow you to see all the activities done with regards to your credit. If something does not look right, you will be able to dispute it before it is too late.

Every time someone inquires on your credit report, your score will go down for a short time. This is to discourage people from applying for a ton of credit accounts at the same time. Try to apply for only a few accounts while repairing your credit score, and do so at long intervals.

Always keep your bank accounts, your tax payments and your utility payments in order and timely. The way in which you manage these necessities reflects strongly on your credit rating. Falling behind on your obligations and having overdrafts at the bank negatively impacts your daily life and makes it more difficult to get credit.

If you are in the midst of repairing your credit and find that you are having difficulty paying bills on time due to financial stress, call the financial institution and see what options there may be for you. You may qualify for an economic hardship deferment of a loan or for reduced payments. You never know unless you ask!

When you are working to improve your credit, do not rely on debts falling off of your credit report. While it is true that debts recorded on your report can expire, the process takes many years. Serious debts are likely to be referred to collection agencies, as well, making them impossible to ignore. It is better to face up to the fact that you will have to pay off the legitimate debts on your credit report.

Use your credit cards to pay for daily expenses. You can repair your credit by using your credit card to pay for the small things you buy everyday such as gas and food. Make sure to pay the bill in full every month of course; this kind of regular payment in full is very good for your credit score.

A great tip to improve your credit score is to avoid excess credit. Having multiple lines of credit and racking up huge debt on that credit is a recipe for disaster. It shows that you have more debt that you can deal with and will significantly lower your credit score.

An important tip to consider, when working to repair your credit, is how applying for a loan will affect you. This is known as a “hard” inquiry on your credit report. However, you will take “less of a hit” if you group these inquiries into a short amount of time, as opposed to, spread out over a couple of months.

As you learned throughout this article, repairing your credit score is a careful blend of knowledge and action, with knowledge obviously being the more important factor. Once you learn how to repair that score, it’s up to you to take the action necessary to leave that bad credit behind you for good.

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Applying For A Bank Loan

February 9, 2018   Fast Loan

If you’ve never applied for a bank loan before odds are you have no idea what to expect from the process.

There are different ways to apply for a bank loan. Often it is the TYPE of loan you are applying for that determines the approach. For example, if you are applying for a car loan you may be filling out the application at the auto dealership.

If you are applying for something like a signature loan, mortgage loan or business loan you may be applying directly with the bank or through online applications.

Talk with A Professional

Make an appointment with a loan officer at your bank. Sit down with them and discuss the type of loan you are seeking, what your goals are and a bit about your financial situation. The loan officer may be able to give you guidance and offer options you had not considered. You may be able to get a realistic estimate of the chances your loan will be approved.

Provide Your Information

One of the first things you will be asked to do is fill out a credit application. The application is the banks method of gathering demographic, income and credit history information about your.

Be prepared to give information such as:

· Name
· Address and Phone Number
· Date of Birth and Social Security Number
· Employment Information such as name of employer and length of employment

There may be other questions depending on the institution’s internal policy and the type of loan.

The Bank Analyzes Your Information

Using your applications a baseline the bank proceeds to investigate and determine how much of a risk would be involved in loaning to you. Their procedures may look something like this:

· With your name, date of birth, address, and social security number a credit report and/or credit score is requested from the credit bureau(s).

· The bank reviews the credit report to see how long you have had credit. If you have no prior credit it is difficult for a bank to assess the level of risk in loaning to you so it may be denied. The longer the length of credit the more ability the bank has to see how you have handled repayment of credit over time.

· Your credit score is based on a formula that meshes’ lots of data about you and creates a number that immediately tells the bank how much of a risk you are. Know your credit score.

· The credit report lists ‘inquires’ from companies you have applied for credit with. Lots of inquires are a bad indication, as it appears you are constantly shopping for credit.

· If your credit report shows slow payments, late payments, unpaid collection items and so forth you will be considered a very high risk.

· Your length of time on the job is a consideration because the bank wants to feel you have a reliable source of income to pay debts with.

· The bank will look at your ‘debt-to-income ratio’. They want to know what percent of your income is already committed to paying debt. This is a good indication of whether you can afford the loan. Know your on debt-to-income ratio.

· How long have you lived at your place of residence? The bank wants to know if you are fairly stable or do you move around a lot.

The bank completes its assessment and takes one of the following actions.

· Notifies you that the loan has been approved. In this situation you will be required to sign certain loan documents that set forth all terms and conditions of the loan. You will then receive the loan proceeds (money) or the asset obtained with the loan.

· Notifies you that the loan request will be taken to the next loan committee meeting. The ‘loan committee’ is usually made up of bank officers who meet periodically to hear presentation of loan requests that are either marginal, must go before the committee due to the size of the loan, the loan amount exceeds the loan officers cap for approval, or various other reasons. The committee hears the loan requests and votes to approve or deny.

· Notifies you that the loan request has been denied. In this case you should receive a document called a Notice of Adverse Action that will provide further information about the denial.

Do your homework before applying for a loan. You should be able to get a fairly accurate idea of whether you will qualify or not.

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