Your credit score is a number that determines your creditworthiness and impacts everything from the interest rate you are offered on a loan to the rent you are charged for an apartment. Lenders use this number to determine whether you’re a good candidate for a loan and, if so, what interest rate they’ll offer you.
Your credit score can range from 300 to 850. The higher your score, the better your creditworthiness, and you will likely enjoy a lower interest rate when applying for loans. Here’s a breakdown of where scores fall within that range:
There are five main factors that influence your credit score: payment history (35%), credit utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Let’s take a closer look at how each one affects your credit score.
Your payment history has the biggest impact on your score — 35%, to be exact. That’s because it’s a good indicator of future behavior. So, when you habitually make late payments or miss payments altogether, your score will suffer. On the other hand, if you have a long history of timely payments, your score will be impacted positively.
Credit utilization is how much you owe on all your credit accounts and is expressed as a percentage. It is calculated by dividing your current balances by your total credit limits. For example, let’s say you have two credit cards with limits of $5,000 each for a total credit limit of $10,000. If you carry a balance of $2,500 across both cards, your credit utilization would be 25%.
The length of your credit history makes up 15% of your score. That’s because lenders like to see a track record of responsible borrowing behavior. So, if you have several years’ worth of timely payments, your score will be higher than someone who just opened their first line of credit.
Opening several new lines of credit in quick succession can make you look like a riskier borrower — especially if you don’t have much else in terms of borrowing history. That’s why 10% of your score is based on new credit accounts and inquiries into your report. So if you’re planning on applying for new lines of credit, try to space out those applications over several months to avoid any negative impact on your score.
The final factor that impacts your score is credit mix, with 10%. It is based on what kind of debt you have. A healthy mix will work in your favor. That means having both installment loans (loans with set terms like auto loans or mortgages) and revolving debt (debt with no set terms like lines of credit or credit cards). Having both types of credit shows lenders that you can manage different types of debts responsibly.
If your credit score is on the lower end, there are several steps you can take to improve it.
Understanding what impacts your credit score is important because it helps you make informed decisions about managing your finances. By improving factors like payment history and credit utilization, you can increase your chances of getting approved for loans and securing lower interest rates.
Over the years, Ascent Network has helped many people with bad credit improve their credit scores, and their scores improved by 100+. Not only do we help you with credit repair and improving your score, but we also show you how to keep your credit score up.
Remember, even if some factors are out of your control, there are still things you can do to improve your overall creditworthiness in the eyes of lenders. By following these guidelines, you can ensure that you have a strong credit score and access to the best rates and terms when applying for loans in the future.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
If you have filed for bankruptcy, you are not alone. Millions of Americans have been forced to take this drastic step to get out from under the crushing weight of debt. The good news is that bankruptcy does not have to be the end of the world. You can improve your credit after bankruptcy! Here are steps you can take to rebuild your credit and establish a solid financial future.
Since your pre-bankruptcy payment history portrays you as an extremely risky borrower to lenders. You need to establish your credit. How can you do this?
You can assure lenders that they won’t lose money by lending to you by using credit products geared towards helping you improve your financial profile. Here are the credit products you can use:
Another option to rebuild your credit is to take a small loan from a local bank or credit union, such as a credit builder loan. You can borrow against the money you already have on deposit and only get access to the money once you pay off your loan. You can also get a loan without cash at hand, but the money loaned is placed in a savings account and is released to you once you complete payment. Your financial institution then reports your payment history to credit bureaus.
Getting a secured credit card is a great way to begin rebuilding your credit after bankruptcy. To get a secured credit card, you have to put down a deposit, for example, $200-$300, and the credit card company gives you a credit line for that amount. This cash serves as collateral for the credit limit, thus less risky.
Because there is less risk for the issuer, you are more likely to get approved for a secured credit card even if you have bad credit. However, you have to ensure you make your payments on time and keep your balance low to avoid damaging your credit score. Also, make sure you choose a card with low fees.
If you need help getting approved for a loan, another option is to find a friend or family member willing to cosign the loan with you. A cosigner agrees to make the loan payments if you default. This arrangement is helpful if you have bad credit or no credit because the lender will consider your cosigner’s good credit when approving the loan. However, it is important to remember that if you default on the loan, it will damage your credit score and your cosigner’s good credit rating. Only enter into this arrangement if you’re confident that you can make timely payments each month.
If you cannot get approved for a credit card, another option is to become an authorized user on someone else’s account. As an authorized user, you are not responsible for making any payments on the account; however, the activity shows up on your credit report. So, if the account holder makes their payments on time and keeps their balance low, their credit score will also benefit. Just be sure you trust the account holder completely because if they miss payments or max out the account, it will also reflect poorly on your credit score.
It is important to regularly check your credit report for errors or fraudulent activity and dispute any mistakes. You can also monitor your credit score to see how well you manage your financial responsibility. This allows you to track your progress toward rebuilding your credit after bankruptcy and make any necessary adjustments to your financial habits.
If you feel overwhelmed or do not have the time to monitor and improve your credit on your own, working with a reputable credit repair agency can be helpful. These agencies can help you identify any mistakes on your credit report and work with creditors and the credit bureaus to correct them.
They may also give you personalized advice for improving your credit score. However, be sure to research and choose a reputable credit repair agency like Ascent Network, as some may charge high fees or use tactics that could harm your credit score.
Filing for bankruptcy is a difficult decision that harms your credit. However, by taking steps such as utilizing credit builder loans, getting a secured credit card, becoming an authorized user, and working with a credit repair agency, you can improve your credit score and manage your finances better in the future.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Is it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest.
Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is how the credit card company charges you for the privilege of using their card. The percentage amount can vary. Some credit card companies charge more than others, and often the APR you are charged is based on your credit score.
It is important to know how much the APR is on your cards. Even lowering your rate a few percentage points could save you thousands of dollars.
Interest rates vary by card. But, more than that, they are based on the risk the credit card company is taking by issuing you credit. Just like any other lender, they need to weigh how much of a risk it is that you will not make your payments on time and in full. Where loans for large items have your house or your car as collateral in case you default, credit companies do not have any real-property items to use as collateral.
This is why many credit card companies’ interest rates are often higher than those of banks and other lenders. If you have a low credit score, you are a higher risk to the company; therefore, your interest rate is likely higher than those with excellent credit scores.
After climbing for 20 straight weeks this summer and spring, the current national average credit card APR is a little more than 18%. The average changes often, so it is a good idea to do your research when looking for a competitive APR.
Generally, the answer to that question is, no, you cannot. However, there are always exceptions. Primarily, when you have a higher credit score, you are a better risk for the lender. And the less risk you are, the lender realizes they can make more money off of you without fear.
Therefore, you can go to them and let them know you are unhappy with their high interest rate. Let them know you may move on to another lender. They might reply with a counteroffer or another program that they can offer that has a lower APR because they would like to keep your business.
This has the potential to work only if your credit score is above 680. If it is below that, you will most likely be stuck with your current interest rate until you can improve your credit score.
If your goal is to lower your interest rate, you first need to increase your credit score. Your score is derived from information contained in your credit report. The higher the number, the better your score.
Here are a few ways to improve your score over time:
It is unlikely you will be able to decrease your interest rate, but it is not impossible. Do everything you can to increase your credit score, and once you do, contact your credit card company. Let them know you want a better APR. If you are not a credit risk, there is a possibility they will honor your request.
The worst that can happen is that they say no. Nothing lost; nothing gained. But, if they say yes, it could save you thousands in interest. It never hurt to ask.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, and Thousand Palms.
Charge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you.
Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a score. Your credit score, whether bad or good, comes into play whenever you want a loan, and it affects your insurance premiums.
Here’s a look into how much bad credit costs you.
A bad credit score is detrimental because it prevents you from qualifying for the best mortgage rates. This means you pay more over the term of your mortgage. What may seem like a slight difference in interest rate adds up to thousands of dollars over the repayment period.
A credit score below 580 only allows you to secure credit cards that require a minimum deposit of $100 to $200 to open a credit account. In addition, applying for the card is likely to cause your credit score to go down more because applying for a new card creates a hard inquiry on your credit report.
Your bad credit score negatively affects your auto insurance premiums because you are viewed as a high-risk borrower and more likely to file claims. A person with a credit score of 800 or higher pays approximately $1,297 a year, but someone with a credit score of 579 or lower pays $2,717 a year. Clearly, having a bad credit score could potentially cost you $1,420 a year when paying your auto insurance.
Career advancement is everyone’s dream as it comes with better pay. But before employers entrust you with more responsibilities, they may pull your credit reports to ensure you are someone who is responsible, especially if the new position comes with financial responsibilities.
Credit repair is a process that takes time and effort, but results are usually noticeable within three to six months. The length of time varies from one individual to another, depending on how much damage has already been done to their credit reports and what has already been done to correct it.
Here’s how you can repair your credit:
There is a lot of confusion surrounding the terms “credit restoration” and “credit repair.” Both involve correcting errors on your credit report and taking steps to improve your credit score. But there are some key differences between credit restoration and credit repair.
Credit restoration entails removing negative items from your credit report. You do this by negotiating with your creditor or disputing the information through the Fair Credit Reporting Act (FCRA) by proving identity theft or demonstrating that the item is inaccurate.
On the other hand, credit repair is the process of taking action to improve your credit score by paying off debts and maintaining a good payment history.
A credit score is a snapshot of your creditworthiness, and credit lenders use the credit score to make very important financial decisions about you. But is there a difference between a 600 and 620 credit score?
Here’s how VantageScore views your credit score:
This is how FICO views your credit score:
No. Credit repair actually helps you improve your credit score by removing negative information from your report and replacing it with positive information. Your FICO score, for example, will improve by a few points as a result of a clean slate on your report.
Bad credit costs you your financial freedom from getting auto loans, mortgages, and getting promotions. If you have a poor credit score, you can still improve it in a few months.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in California in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
If you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts.
There are a few different avenues to explore when it comes to repairing your credit. You can either go through a credit repair agency, work with your lenders or repair credit yourself.
Credit repair companies work with your creditors and credit bureaus to ensure the information is up-to-date and accurate. They also guide you through the process of disputing inaccurate entries and checking if there are fraudulent accounts. In addition, they also offer credit monitoring and advise you accordingly.
You may also be able to work directly with your lenders to try and remove negative items from your report. However, it can be time-consuming, and you may feel you are not getting results.
Another effective way to repair your credit is taking measures into your own hands. This includes paying off debt, disputing credit report errors, and maintaining good financial habits. Even though it takes some time and effort, it’s usually the most successful approach to improving and having a good credit score.
Credit repair can be tricky and time-consuming, so you might wonder if it’s worth paying someone to help you. Well, you can save money if you have the time and patience to do it yourself. But if you’re not comfortable dealing with the complexities of credit repair, it might be worth paying someone else to do it for you.
There’s no guarantee that paying someone will actually improve your credit score. If you are to pay for credit repair services, use credible credit repair companies because fraudulent companies make things worse for you. How can you tell apart credible from fraudulent agencies? Fraudulent agencies:
A legitimate credit repair company will only offer to help remove inaccurate information from your credit report that may harm your credit score. Remember, credible credit repair companies can’t do what you can’t do on your own.
Yes! A lender can fix your credit if you take proactive steps. First, you need to check your credit report for any inaccuracies and dispute any errors you find therein. If you can prove to the lenders that the entry is inaccurate, your lender is obliged to correct the mistake on your credit report.
Using a lender is often more effective than going through a credit repair agency, but it can still be time-consuming and might be difficult to get results.
Repairing your credit is crucial if you want to enjoy low-interest rates when taking loans. To repair your credit to raise your score fast, here are some steps you can take:
Credit repair can take as little as three months or longer if you have faced foreclosure, bankruptcy, or a history of late payments. At Ascent Network, our credit repair experts provide credit profile audits to see how they can help improve your credit score. They also help you improve your credit by verifying and restoring the correct entries on your credit report.
Besides credit repair and credit score improvement, Ascent Network offers debt settlement, foreclosure prevention services, debt consolidation, and education loan negotiations. Ascent Network also provides financial counseling so you can take charge of your financial freedom. Why not be among Ascent Network’s clients and have a FICO score increase of 105 or more?
Credit companies and lenders can help you improve your credit scores. If you use a credible credit repair agency like Ascent Network, they will contact the credit bureaus and dispute incorrect information found in your credit report. If you choose to use the lenders, you must be proactive and follow up using the information provided to repair your credit.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Your credit score is a number that determines your creditworthiness and impacts everything from the interest rate you are offered on a loan to the rent you are charged for an apartment. Lenders use this number to determine whether you’re a good candidate for a loan and, if so, what interest rate they’ll offer you. … Continued
Read MoreIf you have filed for bankruptcy, you are not alone. Millions of Americans have been forced to take this drastic step to get out from under the crushing weight of debt. The good news is that bankruptcy does not have to be the end of the world. You can improve your credit after bankruptcy! Here … Continued
Read MoreIs it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest. What Is an APR? Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is … Continued
Read MoreCharge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you. Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a … Continued
Read MoreIf you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts. Who can help you repair your credit? There … Continued
Read MoreWE COMMUNICATE WITH ALL THREE CREDIT BUREAUS FOR YOU:
