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.

Good installment loan companies are those loan companies that require a higher credit score and ask for more information about you to determine if you are a good risk. This loan can be for an auto or mortgage, student loan or furniture, etc. It’s important to keep these loans in balance with revolving type loans as the balance will play a key part in a portion of your credit score. In other words, one installment loan for every revolving loan or credit card is the correct combination.

It is important to know that if you have even one late or negative on your secure credit reports, it will cause your interest rates to be much higher. If you have more than one, most will not even look at you or your request to take out a loan with them. It is better to get the negatives removed first than to try for a loan with a reputable lender.

New loans always cost you points because they start with an inquiry, don’t have credit history repair services and are usually 100% debt to credit ratio. Be cautious in getting a new loan as it does hit your credit score in 7 different ways as we mentioned in previous secrets.  Know what you need the credit for and don’t just get any credit you can as it will hurt your credit scores. It’s a puzzle that needs a plan and requires careful consideration before plunging ahead. What will it be used for, when will you get it paid off, what will it cost you to get, what is the interest rate and will it help to improve your lifestyle or will it put you deeper in debt?

I have noticed that people are not patient anymore and it costs them in money, in time, in heartache, and in stress and strain on relationships.  Plan ahead, be patient, save, invest, gain knowledge from those who are successful and then be patient again.  My father always taught me, “When in doubt, don’t.”  In other words, wait and see so you aren’t jumping on board a boat that has already left the dock.  You get wet and it upsets the fish.

A rule of thumb to getting new credit is this… get a National Bank Credit Card, get a high credit limit, and keep it for the rest of your life, with a low balance, paid on time, every month… this will create an excellent credit score for years and years to come.

Now go be curageous…

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.

Come back and you will learn more about each area.