Credit Score Affects Our Lives
December 10, 2009 by Loans Guide
Filed under Bad Credit Loans
It is not a secret that the life of a modern person is tightly connected with the credit score. I am quite sure that this score, as well as the credit history have affected your lives as well. This score is very important for your creditors, as it would provide them an information how you manage your finances and how good you are paying your bills. The latter information will for sure affect the attitude of the creditors to you. As you may see, bad credit scores have a negative impact on you. Actually the score consists of several factors, such as your credit history, which reflects whether you have delays or missed some payment of your bills. You should know that your past credit history comprises 35% of your credit score. It would be useful for you to know that bad remain in the credit file approximately for 6 years – this means losing of some points. But the negative effect will be reduced by the means of timely payments made during the last 12 months.
Your current address and the lengths of your staying there also is very import and may affect your credit. Creditors like to see the stability in you. Your score will be higher if you stay at the same address for the last 3 years. But if you have changed a lot of addresses within 3 years it will have rather negative impact. The duration of your employment status also has a great impact on credit score. Again the stability! The creditors would trust you more if you work for the same company for a long period of time. On one hand you will have higher credit score, on the other – you will have more chances to get your credit. But if have changed it for 2-3 times in the last 3 years – you wouldn’t have any chances. don’t forget to take this factor into consideration during your next application for a loan.
Your applications are also important. If you constantly apply for either credit or credit card within short period of time will also have a negative effect. This would mean for the creditors that you constantly need extra finances. According to some data it is normal to take one credit application during one-two months. If you do it more times than it would definitely have a negative impact.
If you have a bank account it is great and you would have a high credit score. But recently opened accounts are not good in comparison with old ones. But if you have no bank account at all it is the worst that may happen.
So if you have a low credit score you must be prepared that your application for a credit will be declined. If this situation does not appeals you much than try to avoid all thing that lower your score.
Have you heard that the info about your credit score can help you a lot in taking care of lots of problems with credit? And do you know that you can receive a free credit score?
Yes. This is really doable. Read more about free credit score, how you can get free credit score and how to use this information with maximum effect.
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I agree, the mortgage industry will be offering record low mortgage rates —below 4%–soon, but they want only the best borrowers. You must have a high credit score, low debts, and equity in your house.
Indications are that foreclosures will SKYROCKET in the next 3 months—because STATES are stopping foreclosure action for 90 days —- which will blow up in statistics in 90 days. If you don't have a job now, you won't have one in 90 days.
It's going to be a very WILD 2009 — since no one in gov or industry has a CLUE what to do!!!