But let’s talk about the car dealerships that offer “Bad Credit Ok” or “We will help you restore your credit”. Usually this does not work because the car dealership will only report if you fail to pay on time.  Now, if you understand credit as well as I do, then you will realize that won’t help at all… ever, because they won’t report the good payment history, just the bad payment history if you forget, slip or fail to pay on time.

So, avoid these game players and stick to a car dealership that offers Manufactures Financing or get your own at a credit union or bank before you go shopping and improve your credit scores.

Because there are hundreds of factors involved in creating a scoring module and how it affects the information in your credit file, it is difficult to ascribe a perfect number of points to what a tip or strategy will do to increase or decrease your credit score. However, this much we absolutely do know… that if you do follow the tips and strategies in this book then you will see a rise or fall in credit points depending on if the action is a good action or a bad action on your part.

Take heed to read the tips and strategies and relate them to your own credit file and the information contained in it. Read it, get to know it and then read the strategies to use to get your scores going up instead of down. This will help you get the highest scores possible and create an opportunity for a great financial future . Now, go and get start and remember, that Every Point Counts!

There are 5 areas of importance in the scoring modules of the credit bureaus.

They are:

1 – Bill payment history – 35% of your score is attributed to this section.

2 – Account Balances – 30% of your score is attributed to this section.

3 – Length of time opened – 15% of your score is attributed to this section.

4 – New Accounts – 10% of your score is attributed to this section.

5 – Types of credit used – 10% of your score is attributed to this section.

Terms:

Creditor = the company that extended the credit to you.

Payee = the company that you make the payments to.

Payer = this is you, the person that makes the payment to the company (Payee) that you owe.

Your FICO Score Determines Creditworthiness

For those needing any type of credit now, the process and successful is bleaker now than ever before due to the recent credit crunch and global financial crisis. But the determining factor in whether or not you will receive the loan that you need – and how much the credit will cost you in terms of interest – is your FICO score.

Your FICO credit score repair forum is a number between 300 and 850, and is used to communicate your credit history and behavior to potential lenders before they decide to extend money to you. You could consider the FICO scale an index that gives the lender a glimpse at the risk he may or may not be taking if you are approved for the loan you want. The higher your FICO score – the higher your chances of getting approved for the credit you desire, and the lower your interest rate will be.

What Potential Creditors Look For

Your score is a tell-all when it comes to your credit. The biggest thing that potential lenders look at is your payment history – or more specifically, the timeliness of your payments. Paying on time is the easiest way to add points to your FICO score. Another thing that creditors look at is how much credit you use each month as compared to how much you have available for use. In general, this should be no more than thirty percent of your available credit lines, across the board, with all sources of credit considered. Overall the lower your outstanding balances the better, getting under 10% is best on individual credit cards. Creditors also look at the length of time that you have an account open – in this case, the older the better.

Having an account in good standing for several years is very appealing to potential creditors because it shows them that you are a responsible and trustworthy borrower. The number of credit inquiries that have recently been run when you apply is also looked at. Potential lenders do not like to see multiple attempts within just a six month or so period. Applying for too much credit is very detrimental to your credit score – it gives the impression that you are on the prowl to borrow from anyone and everyone.

Can You Rebuild Your Credit?

For those with damaged credit who are looking to rebuild their credit histories getting the services of a licensed legal professional is almost always the best route to take. If your time, return on investment, as well as results are important, the hiring of a professional is most always the best option.

Herschel

There are many opportunities to start establishing credit for you. Some people have no problem applying for a credit card or signature loan from the beginning. Let’s establish why and what you can do to get yourself in that position.

Someone who has a steady job and worked there for a long time has established a history of stability. They aren’t jumping around with different jobs and show that they are valued as an employee.

Someone who has only one residence on their credit file also shows stability and has established that they are not flighty or other serious problem with staying stable in one location. These points are well considered when applying for credit of any kind.

I have also established that living in a particular area has an effect on credit score and whether you can get a loan simply because of where you live. It is not pronounced, but could become a big factor in the future. The factors involved are if you live in a rough section of town or if you live in an affluent section of town. The credit bureaus my credit repair collection agency credit are gathering enough data now to be able to determine enough fact to consider this in the now or in the near future.

]]> http://www.lawrencemlaw.com/how-to-begin/feed/ 0