| Start building positive credit history in 3 simple steps
Credit history, credit score, credit report-- these words will greet you sooner or later when you apply for a loan, mortgage, rent an apartment, apply for a job, or last but not the least apply for a credit card. Efforts towards building a good credit history should begin early, right from the student life. Ironically most of the students are not aware what is needed to build a credit history. In this article we look at three simple steps that can get you a jumpstart towards good credit history. 1. A checking or savings account Begin with opening a checking account in your name. This is the first step towards acquaintance with banking and financial institutions. The idea is to open a bank account as early as possible, keep it in good standing, and it should reflect financial stability.
Fair Isaac to Adjust Credit Scores to Stem Credit Renting Practice
Fair Isaac Corp. said this week tha the next version of its widely used FICO score will no longer consider certain types of credit card accounts, closing a loophole that allowed strangers to coattail on a cardholder's good credit. The new FICO score formula won't include authorized user accounts users on credit cards who are not responsible for paying the balances but are approved to make purchases with the cards. Often, authorized users are family members of a cardholder, such as college students on their parents' cards or spouses who have little or no credit of their own. These types of accounts can improve a credit score if the primary cardholder kept low balances and paid the balance on time over a long period. Minneapolis-based Fair Isaac plans to introduce the new scoring methodology in September to one of the three major credit reporting agencies: Equifax Inc., Experian Information Solutions Inc.
Bad Credit Home Loans Consumers With Bad Credit
There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history. There are mortgage companies that actually provide tips, sympathy and a free "easy" Bad Credit Mortgage Approval Form. With this form they are able to decide whether the applicant is eligible for some of their home loans customized for consumers with bad credit. Once that is ascertained, the process of securing the loan begins. In addition to this service, companies provide educational supplements for the consumer with bad credit. They explain what a credit report is and why it is so important.
The cruelest card
Pay down debt: The closer you are to the limits on accounts, the more it lowers your score. Get your available-credit-to-credit-used ratio under 50%.
Loan yourself money: Open a savings account and take a loan with the savings as collateral.
Keep older accounts: You need to show stability on your credit history, so keep accounts that have been established for more than three years.
Check your credit: By law, you're allowed one free copy of your credit report each year from each of the three credit bureaus. Printer friendly version Comment on this story Send this story to a friend Get Home Delivery .
Pump up your credit score
With the peak home-buying season kicking off, savvy buyers will be scouring newspapers, checking the Internet and pounding the pavement, not only for the perfect house, but also for the best mortgage rate. Shopping around is important, but it shouldnt be the only strategy for getting the lowest interest rate. Just as crucial is making sure your credit report is in good shape. Lenders view your credit rating as your reputation, said Lucy Duni, director of consumer education for TrueCredit.com, a Web site run by the national credit rating bureau TransUnion. People with the highest credit scores get the best rates, while those with the lowest scores may not even qualify for a loan. Ideally, you should begin steps to spruce up your credit report at least three to six months before applying for a mortgage, Duni said.
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