What you May Not Know About Bad Credit
See how many of these questions about bad credit you get right:
What exactly is bad credit?
“Bad credit” is defined as a FICO score of 620 or lower. FICO (the initials stand for Fair, Isaac and Co.) scores range from 300 to 900. A score above 680 signifies good credit. Scores in the 620-680 range are medium and a score lower than 620 puts you in the poor credit range.
How common are bad credit problems?
Bad credit affects more than 30 million Americans. As a nation, we have piled up more than $683 billion in revolving credit card debt. The average American household has $9,300 of credit card debt. And almost one in every 100 families will wind up filing for bankruptcy.
How long does bad credit information stay in your credit report?
Seven years, with these exceptions: bankruptcy may be reported for ten years; criminal convictions don’t have a time limit, nor does data reported because of an application for more than $150,000 worth of credit or life insurance.
Will bounced checks give you a bad credit rating?
Not if you make good on the checks in a timely manner. If you don’t, the company may turn the unpaid debt over to a collection agency. That will definitely show up as a blot on your report. Companies that send unpaid bills to collection often do so as soon as 90 days after getting the rubber check.
Does being on unemployment contribute to a bad credit score?
“No. However, if you are collecting unemployment when you apply for a credit card, unsecured loan, line of credit or bad credit home financing, you might get declined. Not because you have bad credit, but because unemployment checks are considered “unstable” income.
What happens if you marry someone with bad credit?
Nothing, as far as your credit score is concerned. Each person with a Social Security number has his or her own credit report. Bad credit only affects a spouse if you co-sign on loans, open a joint account, or jointly file for bankruptcy. State law governs whether a spouse can be held accountable for a partner’s debts incurred while married.
Will unpaid utility and other home bills result in a poor credit rating?
Only if your account gets far enough behind (often 90 days past due) that it is sent to collection. This will show up as a black mark on your credit report. In addition to sending the account to a collection agency, utility companies and cable providers will probably also shut off services.
Will canceling inactive credit cards improve your credit score?
Closing an account you have paid off may actually hurt you. Your credit score is affected by how much available credit you have in comparison to your total debt. Cards with zero balances and available credit on them raise your available-credit-to-debt ratio.
What can you do to repair a bad credit rating?
The best way to repair a bad credit rating is to pay down your debt. Another important thing is to make all payments on time, even if it’s only the minimum amount due. Also, get a copy of your credit report from the credit bureaus and make sure there are no mistakes. Correct any errors you find.
What kind of bad credit home financing is available
There are several types of bad credit home financing available. You can learn more about each typeâand get a free mortgage quoteâat the following recommended sites:
Bad Credit Mortgage Refinancing Now.
Mike Hamel
http://www.articlesbase.com/credit-articles/what-you-may-not-know-about-bad-credit-52703.html
Best way to learn about and establish good credit?
I want to learn about all the factors considered when a credit agency determines your credit score. I do not have any credit and would like to establish some credit. I do not have any bad credit either. I have already tried applying for a credit card, dell computer card, sams card, and have not been approved for anything.
I do not have any bills that are under my name. I was told by someone to go get a tv or something with no money down, but I do not need any of that. I also do not want to go get a loan and end up paying interest for no reason. I have seen several websites which give some info about this, but not enough. Can anyone give me any suggestions or recommend a book?
I've always heard that getting a gas card helps to start build credit. They give anyone (basically) a gas card.
If anything, it'll help you get your foot in the door & get a wal-mart card, or something similiar.
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No credit is a step above bad credit, but not by much. Follow the link for more information on establishing and maintaining credit. A cellphone is also a great way to start credit.
There really isn't that much to it. Just pay your bills on time and if possible pay a little more than the minimum payment. If you pay off your loans or credit too quickly you will recieve negative remarks because they want you to pay every month.
http://credit.about.com/b/a/007277.htm?terms=good+credit
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Get a gas card if that doesn't work go open up an account in a bank. The longer you have the account the better it looks in the credit. Make sure the bank you go to offers you a credit/debit card.
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you need to apply with a co signer, that way you can start establishing credit, eventually, you can remove the co-signer. But you must use the card and pay it atleast double the min. payment every month
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go to finance.yahoo.com they have some great articles. You could try getting a secured credit card. It may sound dumb but you send in money and then you can use your money through the credit card.(also called a debit card) Also your credit score looks at your bank accounts. If you have a checking account or a savings account or both. Just getting a checking account and useing it will help establish credit.
The end
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I would recommend that you go to your bank and obtain a Credit Card with a small limit ($500 or less). Put a few small purchases on it each month, and pay it before the due date. You'll pay zero interest, and obtain a great credit rating. That's the only really good want to obtain good credit, and keep it in check.
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um…no credit is worse than bad credit. The best way to establish a credit is actually by buying a new car. But if you have been turned down for sams cards and cell cards, chances are you're going to get a ridiculous rate. What you can do is this, have one of your parents "add" you to their account as an authorized user. and they use and pay their balances, it will also be reported on your credit as payments made for. After a little while it will establish credit, enough for you to get a card of your own.
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Get "guerilla credit repair".
Get all three of your credit reports. Contact transunion, experian and equifax. Make sure all the information is correct and that all the accounts on there are in fact yours. If there are any errors at all, get them corrected. This may take a while.
Satisfy any judgements or debts you have.
Go to bankrate.com. They have good articles for starting off your credit. If you have no credit at all or some problems – you might have to get a "secured" card. A normal credit card gives you a line of credit. A secured card is where you put up your own money, pay an annual fee and can't take out any more than you put up. The rates are high, so if you don't pay it off every month you will incur interest charges on the very money you put up! However, if you pay your bills on time for a year you will get a history.
You need to build a history. You need at least 4 lines of credit open that you have paid bills on time for at least 6 to 12 months. You might also try some store and gas cards. The rates suck and you can only use them with one retailer, but they help you build a history.
Once you build a history you can get cards with good rates and cancel the old ones.
Never borrow more than one third of your limit.
Always be on time with your bills.
Never just cut up a card. Call and be sure it is cancelled.
** Years ago I was in your situation. But I put up $300 for a secured card. I paid my bills for a year on time. After 6 months I could get a department store card. Now I can get real cards.
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if you have time here's a big FAQ and more:
http://credit-cards.ebookorama.com...
and here http://finance.ebookorama.com
if it helps please remember me
good luck!
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