Valuable Lenders are those lenders that are reputable nationwide. We see lots of advertising from some not so valuable lenders. They are not so valuable because they don’t show all the information needed on a credit report that will allow our scores to be the highest possible. For instance, if your account shows the “high balance” but not the credit limit, as soon as you use that card you have a debt to credit ratio of 100%. This can lower your score dramatically. This is an example used by many, not so reputable lenders such as major credit card companies.

Valuable Lenders are those lenders that are ethical in their practices and are national or international banks and financial institutions.

Revolving accounts can also be from good creditors or bad creditors depending upon their status as a lender of revolving credit account bureaus correction darian. A good revolving account is with a reputable bank or lending institution on a national level that requires a higher than normal credit score and other vital information to determine if you are credit worthy.

If there are lates on your credit report then they will usually not allow you to get credit or will require a higher than normal interest rate to start with and then reduce that rate at your request once you have proven yourself to be on time over a period of a year or more. It’s important to know that these good lenders won’t lend if you have too many lates or lates that are consecutive or chronic, such as 30 day lates for 2 or 3 months in a row, or 30, 60, 90 day lates in a row. This usually indicates to them a history of not paying and they just won’t authorize a new account to someone with this kind of history.

The solution would be to clean up your credit reports by having the lates removed and then applying for the better lenders.

It is important to know that when you go to get a loan, whether it is an installment loan or a revolving loan, 10% of your credit score will be determined by the types of credit you have in your credit portfolio. Having a mortgage in your portfolio is a great boost to your credit score and having some revolving loans are great to have but… they need to be in balance and with good banks or loan companies.

There are good creditors and bad creditors depending upon who they are and what they require when applying for a loan. If you have bad credit, then you obviously will search for a creditor that requires less than perfect credit or a lender that says they will help you “repair” your credit or legally repair bad credit. A warning… some do and some don’t. There are so many scams and crooks out there that it is important to understand what is going on.

A high debt to credit limit ratio is not a good thing to do on a new loan because it will impact your business credit scores many different ways. By now you should be able to guess at most of them and understand why but let’s go over them just to be sure.

You have an inquiry, at least one and perhaps more and depending on how many and what your credit score is at the time will determine how much it affects your credit scores.

1) You have a new loan.
2) You have no history on this new loan.
3) It has a high balance.
4) It has a high debt to credit limit ratio. These reasons alone can cause your credit scores to drop significantly that you should be concerned about doing so.

The solution is to get a high enough credit limit on revolving accounts that you won’t need to use more than 45% of available credit on your account. If it is an installment loan, then the impact will be less felt but still have a significant impact on your credit scores. The solution here would be to pay down the loan to less than 80% debt to credit limit as soon as possible. I have one friend who will borrow more than is needed on his loan so that when the loan closes, he pays down the loan 20% to have his debt to credit limit at 80% as soon as possible. This will minimize the impact on his credit scores and keep his scores higher than someone who doesn’t do this. For those who need to keep their credit scores as high as possible for business reasons or for investing, this is a great strategy to use. It takes some money management and if your credit scores are high to begin with, then you stand a great chance of being able to qualify for the higher credit limit to use this plan. To your success…