Credit Score Agencies- The Three That Will Make Or Break

Thursday, November 15th, 2012

Credit Score Agencies- The Three That Will Make Or Break You

In the United States, there are three major credit score agencies, or credit reporting agencies; they are TransUnion, Equifax, and Experian. The three credit score agencies are responsible for gathering and providing information on individual consumers. Banks and other financial institutions, as well as landlords, utility companies, and even insurance agents, have come to rely heavily on the information that credit score agencies provide as a means to determine the creditworthiness of individuals. If you intend to ever purchase with credit, the credit score agencies are likely to have a direct influence on your lenders decision about whether or not to extend you credit and how much it will cost you to borrow money, i.e., what your interest rate will be.

Since the credit score agencies have a direct bearing on your financial life, it is important to make sure that you are careful to avoid behavior that will negatively affect your credit history, and it is equally important that you check your credit report periodically to ensure that the information is timely and accurate.

What types of transactions and credit information decreases your score? Having too much debt. The credit score agencies look at your income and how much debt you have; this is called your debt-to-income ratio, and if it is too much, your credit score will be lowered. Generally speaking, the credit score agencies and lenders like your total debt-to income to be no more than about thirty-six to thirty-eight percent. Even if you have been able to keep up with your payments and have made your payments on time, it is still considered important that sixty-two to sixty-four percent of your income is not involved in paying off loans.

What else decreases your credit score? Having late payments. If you have late payments reported to the credit score agencies, the natural conclusion is that you have difficulty meeting our monthly obligations. If that is the case, it just makes sense that lenders should be cautious about lending your more money.

What other information do the credit score agencies consider bad? Having a lot of account activity over a short period of time. If a lot of different companies are accessing your credit score at around the same time, it indicates that you are shopping around for credit and that you may be taking on too much debt. It is a red flag and can lower your credit rating. However, accessing your own credit report has no effect whatsoever on your credit score, so do not worry about that.

Do all three credit score agencies give you the same score? Not necessarily. Lenders realize this, so they generally use the average of all three scores. They may only use one agency, also, but that is usually not in your best interest, because what happens if they just happen to use the one that has incorrect data about you? Ever heard of Murphys Law? Usually, the reason for the different score is that not all three credit score agencies have the same data. Not every creditor reports everything to each agency. Check your report regularly and correct errors in a timely fashion; keeping a good credit rating in a harsh economy is tough enough without having mistakes in your file.

America And Responsible Spending-Financial Crisis Of Epic Proportions

Sunday, November 11th, 2012

The United States is headed for a financial crisis of epic proportions. If the words America and responsible spending doesn’t send you into fits of laughter or bouts of despair, I just don’t know what would.

The United States currently owes more than sixteen trillion dollars. That is the number 16 followed by twelve zeroes. Twelve!

I just do not think you can say the words ‘America and responsible spending’ in the same sentence without including the phrase, “yeah, right!”

So what does the average American learn form all of this from our own government? Not much good, let me tell you.

Now, the average American does not owe that much to his creditors compared to the national debt but whoever decided to tell Americans that the American dream was to be in debt up to their behinds was completely misinformed.

What happens to John Q. Public when he gets behind on his bills and can’t find a way to pay them? Someone comes and takes something away from him. His car gets repossessed or his house goes into foreclosure.

Maybe, if he still has some income coming in and hasn’t lost his job yet he can work hard at getting his outstanding debt in order by learning to do it himself or calling a credit counseling service to teach him how to manage his money better.

If none of this works or the debt is just too big then there is also the last resort of Chapter 7 bankruptcy.

The best thing about a credit counseling service is the fact that they will get all of the collection phone calls stopped and will try to negotiate a settlement with the lenders and other creditors.

This can relieve some of the stress of the whole situation so you can have the opportunity to just stop and think about it all clearly for a change. You may even be able to come up with a solution of your own if that happened.

The bad thing about a credit counseling service is the fact that their services do not come free. You have to pay them for helping you out of a bad situation. This may be a difficult thing to do when there is not enough money to go around to begin with.

Anyone can get themselves out of debt if they really put their minds to it. The first thing to do is to free up as much money as you can. I don’t care if it is only five or ten dollars a month.

Pick a bill and send them that extra cash with your regular payment. Then when that bill gets paid off use all of that money to pay off the next one on the list and so on and so on until you are debt free.

America and responsible spending may be out of reach for the government and the country a sa whole but if you set your mind and budget to it, it isn’t for you. Fix your American dream by becoming debt free.

Women Business Loans

Sunday, October 14th, 2012

A lot of people out there want to start their own business. Even with the current economic climate, being your own boss and running things how you want will never stop being appealing. But it is always a challenge to get things running.

The biggest challenge presented before new small business owners is the lack of funds. Starting a business is quite costly and often times the only way to finance it is with a small business loan.

It does not matter what race or gender you are, women business loans do not exist just the same as men business loans do not. All the banks really care about is what your credit score is. As harsh as it may sound, they really could not care less about you as a person, only your ability to succeed and repay the money you borrow.

So having a good credit score is always a bonus when trying to get a small business loan. By having a good credit score you have a much easier time acquiring a business loan. You can also get benefits such as lower interest rates to help you out.

However for those who do not have a good credit score there are still options available. It will be harder to get a women business loans and you might have to pay higher interest rates or collateral. But you can still get a loan to get your business off the ground.

You can also look around for other lenders who might be more accommodating then the banks are. When we think of loans we immediately think of banks, but there are other groups out there who are willing to give loans to small business owners, such as the small business association.

These other groups might offer you better interest rates or might give you a loan all together if you were turned down else where.

Something else you may want to keep in mind that can help you secure a small business loan is having experience. If you have a history of working in a high position in the same type of business you are trying to start, lenders are more willing to help you out.

By having this experience it tells the lenders that you know what you are doing and are more likely to succeed, which in turn means you are more likely to repay the money you borrowed.

As rewarding as owning your own business might be, it is a long and hard road to get to that point. Once you have your business set up and running smoothly, running it is a lot easier. However when it first starts, after you get women business loans and all your appliances and other things set up, it will require a lot of work on your part.

Many late nights and long weekends will be spent ensuring your business grows and prospers. It will also take money from your own pocket to help keep it afloat. So make sure you are prepared for the amount of work and risk involved before you head off to start your own small business.