There is a way to increase your credit score and it is probably not what you think it is. When asked this question randomly at a college, most students reported that the way to increase you credit score was to pay off your bills every month and on time. Some home owners said that the way to do so was to pay your mortgage on time and try to remove bad references from your credit records.
So, the question is, Can the credit card score be improved and most people would answer simply pay your bills on time and there should be nothing to worry about. Everyone it seems has an opinion on this. Some said that constantly asking the credit agency to respond to specified issues in your report within a period of time specified by law could or might result in the credit agency making a mistake and the issue in question being cleared - largely based on a technicality. Enough people mentioned this tactic, so it appears that as unorthodox as this method may seem, there may be some validity in some jurisdictions.
As mentioned above, most people simply answered "pay your bills on time and your credit rating will be excellent". We counter that paying your bills on time is fact expected and that this can give you an average credit rating of 5-700. But is this "pay your bills" thought really true? We are going to name this as myth number 1 and look more closely at it here. Loan institutions absolutely adore customers whom pay off their bills on time every month? We calculate stupendous bank profits in that model, right? The truth is, loan institutions and other lenders including the mafia are in absolute love with people who maintain a nice healthy balance that they can get charged interest on.
Ok, so what about Myth number two. "Loan institutions love people who borrow as much as possible." If this second one were true, I wouldn't be writing this article but simply running for the bank as fast as my little feet could carry me. Ok, seriously, if this were the case, people who couldn't repay loans would get massive loans and constantly end up in bankruptcy courts. So perhaps between myth number 1 and myth number 2 we haven't quite achieved a balance yet in terms of what banks don't like. We know what loan institutions don't like, but that doesn't entirely answer what they do like.
Let's cut to the chase. Banks and your, ahem, local mafia lender ( ohh are these two interchangeable ? ) love clients who pay more than the interest each month but not enough to seriously subtract from the actual principal amount. These are cherished suckers and enough of these on a banks balance sheets makes for a very healthy bank. These customers also have the ongoing income to keep their total loan amounts very much under the total allowed credit range. It is this loan to credit that more strongly influences whether a credit rating will be closer to 670 or 800. Lets look at an example, 35,000 in credit and 14,000 already used.
The key phrase here being "ongoing ability " and "debt ratio". Ongoing ability is why some older retired persons with otherwise good credit may sometimes have difficulty refinancing longer term loans. They are viewed as being possible risks because of the "ongoing income" requirement.
So the key issue for those looking to increase their credit scores from perhaps a low 600 to a high 800 depends more on the factor of debt ratio.Primary amongst those additional factors is as mentioned, the DEBT RATIO. If you want to have a credit score above 800 then the credit agencies must think you have a very favorable debt ratio.
That something else is the debt ratio. The key issue for getting credit card ratings above 6-700 is the debt/credit ratio.
The absolute best candidate is someone with a credit to debt ratio which is not only low, meaning they have room to increase it, but someone who also has shown the long term ability to handle an ongoing balance - note that means not necessarily paying it off every month. Watch the video and learn not only what the bank wants to see, but how you can in the next few days influence positively your credit score. Once you understand the math, you are golden.
So, the question is, Can the credit card score be improved and most people would answer simply pay your bills on time and there should be nothing to worry about. Everyone it seems has an opinion on this. Some said that constantly asking the credit agency to respond to specified issues in your report within a period of time specified by law could or might result in the credit agency making a mistake and the issue in question being cleared - largely based on a technicality. Enough people mentioned this tactic, so it appears that as unorthodox as this method may seem, there may be some validity in some jurisdictions.
As mentioned above, most people simply answered "pay your bills on time and your credit rating will be excellent". We counter that paying your bills on time is fact expected and that this can give you an average credit rating of 5-700. But is this "pay your bills" thought really true? We are going to name this as myth number 1 and look more closely at it here. Loan institutions absolutely adore customers whom pay off their bills on time every month? We calculate stupendous bank profits in that model, right? The truth is, loan institutions and other lenders including the mafia are in absolute love with people who maintain a nice healthy balance that they can get charged interest on.
Ok, so what about Myth number two. "Loan institutions love people who borrow as much as possible." If this second one were true, I wouldn't be writing this article but simply running for the bank as fast as my little feet could carry me. Ok, seriously, if this were the case, people who couldn't repay loans would get massive loans and constantly end up in bankruptcy courts. So perhaps between myth number 1 and myth number 2 we haven't quite achieved a balance yet in terms of what banks don't like. We know what loan institutions don't like, but that doesn't entirely answer what they do like.
Let's cut to the chase. Banks and your, ahem, local mafia lender ( ohh are these two interchangeable ? ) love clients who pay more than the interest each month but not enough to seriously subtract from the actual principal amount. These are cherished suckers and enough of these on a banks balance sheets makes for a very healthy bank. These customers also have the ongoing income to keep their total loan amounts very much under the total allowed credit range. It is this loan to credit that more strongly influences whether a credit rating will be closer to 670 or 800. Lets look at an example, 35,000 in credit and 14,000 already used.
The key phrase here being "ongoing ability " and "debt ratio". Ongoing ability is why some older retired persons with otherwise good credit may sometimes have difficulty refinancing longer term loans. They are viewed as being possible risks because of the "ongoing income" requirement.
So the key issue for those looking to increase their credit scores from perhaps a low 600 to a high 800 depends more on the factor of debt ratio.Primary amongst those additional factors is as mentioned, the DEBT RATIO. If you want to have a credit score above 800 then the credit agencies must think you have a very favorable debt ratio.
That something else is the debt ratio. The key issue for getting credit card ratings above 6-700 is the debt/credit ratio.
The absolute best candidate is someone with a credit to debt ratio which is not only low, meaning they have room to increase it, but someone who also has shown the long term ability to handle an ongoing balance - note that means not necessarily paying it off every month. Watch the video and learn not only what the bank wants to see, but how you can in the next few days influence positively your credit score. Once you understand the math, you are golden.
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Going for a pay day loan, Mtg or Lease. Increase your chances for a cash advance first and get a better loan rate from your lender.
