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How To Get A Good Credit Score
When a person goes to the bank for a loan they must be ready to present a good credit score. This is because with a good score, approval is fast. If one has a bad credit score on the other hand, their loan can get denied. Some lenders will approve the loan but only for bad credit loans. Now bad credit loans have high interest rates and at times require a security pledge. These are just plain hassles without a doubt.
So how can someone get a loan when its required, without all these hassles? and what can be done in order to avoid a bad credit history? There are a few ways in which to do so.
Paying On Time
First and foremost, pay dues on time. It doesnt matter whether they are utility bills or credit card debt. On time payments result in a good score while late ones result in a negative score. On time payments, however, are only possible when ones finances are in control. One may find it difficult to keep up with their dues if they are short of cash. Therefore budgeting and organising finances first allows someone to plan for bills once they arrive.
Make Use of Credit
Second, one must use a line of credit. Credit scoring is based on the proportions of a credit limit versus the persons outstanding balance. When someone frequently uses cash there is less room for debt. However, a credit score can become stagnant. This means credit bureaus don’t have any credit reference to score an individual. So although one should minimise credit card use, it doesn’t mean stop using it entirely, nor does it mean they must max it out.
Maxing out a credit line is one of the fastest ways to garner a negative score. One should only use their credit card wisely. Wise charges include charging big ticket items, balance transfers and low interest rate purchases.
Double Check for Discrepancies
The next great way to increase a credit score is through being vigilant regarding credit reports. Unfortunately, lenders arent always accurate in reporting to credit bureaus. Additionally, credit bureaus themselves can input errors in the report. Thats why an individual must always check his or her credit history in order to notice such disputable cases. And when they do, this can be reported to and corrected by the credit bureaus. It may seem insignificant but small corrections in a credit report can greatly impact ones credit score.
Building a good credit score is not easy. A person must be patient, diligent and wise in his finances. In time, they will see improvements in their credit score. When this happens only then can one apply for a fast cash loan and get credit cards without hassles.
Fix Wrong Information In Your Credit Report — TODAY (Page 1 of 2)
Other than eating, sleeping, and breathing, one of the most important things you should be doing on a regular basis is ensuring that the data in your credit report is accurate. That is such a simple statement, yet it is ignored by the vast majority of consumers, probably due to several factors, such as:
* Consumers seem to accept the fact that errors will self correct in a reasonable period of time, where in reality nothing could be further from the truth.
* Consumers dont know how to find out if there is wrong information on their credit report, which impacts their total credit score negatively.
* Consumers dont realize that having a low credit score (lower than what they deserve, if the information maintained by the credit bureaus was accurate) can impact a huge number of factors in their everyday lives.
* Consumers dont realize that studies have shown that the MAJORITY of credit reports on consumers and businesses have errors and inaccuracies.
Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. You need to find out what your credit score is before you talk to any lender in case there is something on your report that they may question. Your credit score is the actual number ranging from 300 to 850 that lenders use to judge your creditworthiness and the interest rate theyll charge you. Having a credit score lower than what you actually deserve could mean the difference between getting approved for a loan or credit card, or being denied. If you are approved, a lower credit score can mean the difference of the lender assessing a 14% interest rate or a 6% interest rate, which can cost you hundreds and even thousands of dollars more at the end of the loan period.
The big three credit bureaus are required to give you a free copy of your credit report annually, or any time that you have been denied credit based on information that they provided to a potential lender. It may take some time to get through to the credit bureaus to request a copy of your credit report, but this is well worth your time to do so. Be sure to get a copy of it from all three of them, since some lenders only report to one or two of them. This means that the information on your credit report from one credit bureau is almost certainly not going to be identical to the data from another credit bureau.
If you notice any errors on your report, you should complete a dispute form with the credit bureau. When they send you a copy of your credit report, they will usually include instructions on how to file a dispute for erroneous or inaccurate information. Some experts say that if you are disputing say 5 different items, you should file 5 separate dispute forms so each one can be addressed specifically. There is some merit to that discussion, since the credit bureaus may view a dispute consisting of many items as frivolous and not take appropriate action to correct the information.