Posts Tagged Loan Payments
How Well Do Your Understand Your Personal Credit Report?
Donald Saunders asked:
You probably know all too well that the information in your personal credit report is used by the finance and credit card companies when deciding whether or not to extend credit to you, but are you aware of exactly what information your personal credit report contains? For instance, did you know that the information contained in your credit report could affect whether or not you can buy that new home or will have to remain in your current ‘shoebox’?
Many people believe that if a credit card company or other lender looks at your credit report they are merely looking at your credit score and, although this is without doubt one thing that they do look at, they are looking at far more. Most especially, they are looking to see how much debt you have in comparison to to your income and even quite small accounts, like those with a mail order company, will be treated as an income deduction when when it comes to considering a loan application.
If a lender calculates that you have got less money coming in than you have going out then your loan request will undoubtedly be turned down. In fact, by law a specified percentage of your income has got to be available to meet loan payments before the lender is permitted to approve it, regardless of the purpose of the loan.
Lenders are also looking back at your credit history over the past seven years to see how well you have managed loans in existence during that period. Specifically, they are looking to see if you have made your payments on time and will take note of any payments that were more than thirty days late. It may not have seemed particularly important to you at the time that you ran into a few problems and were late with your payments for a few months on an account, but any new lender is certainly going to consider this when assessing the risk of lending to you now.
Lenders will also look to see whether any of your accounts have run into debt during the past seven years and whether or not these debts have now been paid off. If you have payments outstanding on an existing loan agreement credit card companies and other lenders will be very wary when it comes to giving you additional credit before these are cleared.
Finally, your personal credit report will also show if you have filed for bankruptcy, usually in the last ten years. A few people believe that a lender is much more likely to advance you credit if you have filed for bankruptcy as they enjoy the protection of knowing that you may not file again for several years. However, this is not the case and filing for personal bankruptcy is viewed as a red flag by the credit card and finance companies showing that you have already demonstrated a tendency for getting yourself in over your head when it comes to managing your finances.
Your personal credit report is a very important document and one which you should not only understand but that you ought to review from time to time for your own protection. Luckily, the law states that you must be sent a copy of your personal credit report once every year if you request it.
Gertrude
You probably know all too well that the information in your personal credit report is used by the finance and credit card companies when deciding whether or not to extend credit to you, but are you aware of exactly what information your personal credit report contains? For instance, did you know that the information contained in your credit report could affect whether or not you can buy that new home or will have to remain in your current ‘shoebox’?
Many people believe that if a credit card company or other lender looks at your credit report they are merely looking at your credit score and, although this is without doubt one thing that they do look at, they are looking at far more. Most especially, they are looking to see how much debt you have in comparison to to your income and even quite small accounts, like those with a mail order company, will be treated as an income deduction when when it comes to considering a loan application.
If a lender calculates that you have got less money coming in than you have going out then your loan request will undoubtedly be turned down. In fact, by law a specified percentage of your income has got to be available to meet loan payments before the lender is permitted to approve it, regardless of the purpose of the loan.
Lenders are also looking back at your credit history over the past seven years to see how well you have managed loans in existence during that period. Specifically, they are looking to see if you have made your payments on time and will take note of any payments that were more than thirty days late. It may not have seemed particularly important to you at the time that you ran into a few problems and were late with your payments for a few months on an account, but any new lender is certainly going to consider this when assessing the risk of lending to you now.
Lenders will also look to see whether any of your accounts have run into debt during the past seven years and whether or not these debts have now been paid off. If you have payments outstanding on an existing loan agreement credit card companies and other lenders will be very wary when it comes to giving you additional credit before these are cleared.
Finally, your personal credit report will also show if you have filed for bankruptcy, usually in the last ten years. A few people believe that a lender is much more likely to advance you credit if you have filed for bankruptcy as they enjoy the protection of knowing that you may not file again for several years. However, this is not the case and filing for personal bankruptcy is viewed as a red flag by the credit card and finance companies showing that you have already demonstrated a tendency for getting yourself in over your head when it comes to managing your finances.
Your personal credit report is a very important document and one which you should not only understand but that you ought to review from time to time for your own protection. Luckily, the law states that you must be sent a copy of your personal credit report once every year if you request it.
Gertrude
Your Personal Credit Report – What’s In It and What Does It All Mean?
Marie Stark asked:
Do you know what your credit score is? Do you know what credit
score banks and other lenders look for when they review your
mortgage application? When was the last time you looked at your
personal credit report?
Your credit score is a reflection of how well you use credit and
many view it as an excellent picture of your financial health or
stability. Your credit score is based on information contained in
your credit report. Your personal credit report shows several
pieces of your financial history. It shows:
- How much credit you have been approved for and how much of it
you are using
- Which bills you pay on time and which bills you pay late
- Who all of your creditors are, how long you’ve had
each account open and how much credit you are using with each
creditor.
A person seeing your credit score and reviewing your credit
report can draw many conclusions about you based on what they see.
Your credit score is a numeric value between 300 and 900 that is
primarily determined by the timeliness of your past loan payments
and the amount of debt you have.
Actual rankings vary slightly from lender to lender but
generally speaking, a credit score of 620 or above is considered
good and a credit score of 619 or below is cause for some concern
and additional review. The median credit score in the United
States is 723. This means that the same number of people have a
credit score above 723 as those that have a credit score below
723.
Obviously, the higher your credit score is, the better off you
are. A credit score of 750 or above is usually considered to be
excellent, while a credit score below 580 means it could be very
difficult to qualify for a loan.
You should review your credit report at least once a year to make
sure it is accurate and to see what your credit score is. Each of
the three credit reporting bureaus — Experian, Trans Union and Equifax — are required by law to give you one free annual credit report and you can even get this credit report free online.
You can find information about getting your free credit
report online at http://www.annualcreditreport.com/
Lori
Do you know what your credit score is? Do you know what credit
score banks and other lenders look for when they review your
mortgage application? When was the last time you looked at your
personal credit report?
Your credit score is a reflection of how well you use credit and
many view it as an excellent picture of your financial health or
stability. Your credit score is based on information contained in
your credit report. Your personal credit report shows several
pieces of your financial history. It shows:
- How much credit you have been approved for and how much of it
you are using
- Which bills you pay on time and which bills you pay late
- Who all of your creditors are, how long you’ve had
each account open and how much credit you are using with each
creditor.
A person seeing your credit score and reviewing your credit
report can draw many conclusions about you based on what they see.
Your credit score is a numeric value between 300 and 900 that is
primarily determined by the timeliness of your past loan payments
and the amount of debt you have.
Actual rankings vary slightly from lender to lender but
generally speaking, a credit score of 620 or above is considered
good and a credit score of 619 or below is cause for some concern
and additional review. The median credit score in the United
States is 723. This means that the same number of people have a
credit score above 723 as those that have a credit score below
723.
Obviously, the higher your credit score is, the better off you
are. A credit score of 750 or above is usually considered to be
excellent, while a credit score below 580 means it could be very
difficult to qualify for a loan.
You should review your credit report at least once a year to make
sure it is accurate and to see what your credit score is. Each of
the three credit reporting bureaus — Experian, Trans Union and Equifax — are required by law to give you one free annual credit report and you can even get this credit report free online.
You can find information about getting your free credit
report online at http://www.annualcreditreport.com/
Lori
Your Personal Credit and Your Business Credit History
Posted by admin in Business Ideas on October 21, 2009
Pamela Williams asked:
When establishing a separate credit history for your business, does your personal credit matter? Does it make a difference whether or not you have good personal credit? As a business owner, why should you be concerned about your personal credit score?
Your Personal Credit and Your Business
As a new entrepreneur, you may need to apply for a loan in order to finance your business. Without business credit, lenders would be looking at your personal credit history instead to determine whether to approve or decline your application. Thus, having an excellent personal credit or a high FICO score would surely win you an easy approval from your preferred lender. Consequently, if you have a low FICO score or a questionable credit, you may find it more difficult to get approved for a loan.
On the other hand, you may also be able to obtain the loan you need by applying for a bad credit business loan. Lenders who offer poor credit business loans always approve clients regardless of the status of their credit. However, these loans are expectedly more expensive than loans that require good credit.
Clearly, the status of your personal credit score makes a difference in getting the financing you need for your business. But what happens after your loan has been approved? What’s the next step in building your business credit? Why should you establish a separate credit history for your business?
Establishing Your Business Credit
As soon as your loan has been granted, you should take the necessary steps to establish a separate credit for your business. Make sure that you’ve obtained all the necessary permit, licences, tax id numbers, and registration numbers that are required for businesses. Afterwards, register your business with a business credit reporting agency like Dun & Bradstreet or Experian Business.
Remember to submit your monthly loan payments on time to build good credit. At the start, any delays or misses on your payments will also reflect on your personal credit report. Why is this? Since your personal credit history was used on opening up the loan, your credit report acts like a co-signer for your business. Therefore, it is crucial to keep up with your payments not only to build a good business credit but to protect your personal credit as well.
After some time of consistent payments, you should have already established your corporate credit. You may need to wait a year or more before you can completely separate your business credit report from your personal credit report.
New businesses are just like a teenager who’s just starting to build a credit history for himself. At first, a student may need a co-signer to get a loan but once approved, a student can slowly build his own credit history and after a while, he can easily apply for new credit without relying on other people’s credit. Clearly, if you plan to venture in business, preparing your personal credit is a must. Although a good personal credit history isn’t necessary required to start a business, it is definitely an advantage.
WADE
When establishing a separate credit history for your business, does your personal credit matter? Does it make a difference whether or not you have good personal credit? As a business owner, why should you be concerned about your personal credit score?
Your Personal Credit and Your Business
As a new entrepreneur, you may need to apply for a loan in order to finance your business. Without business credit, lenders would be looking at your personal credit history instead to determine whether to approve or decline your application. Thus, having an excellent personal credit or a high FICO score would surely win you an easy approval from your preferred lender. Consequently, if you have a low FICO score or a questionable credit, you may find it more difficult to get approved for a loan.
On the other hand, you may also be able to obtain the loan you need by applying for a bad credit business loan. Lenders who offer poor credit business loans always approve clients regardless of the status of their credit. However, these loans are expectedly more expensive than loans that require good credit.
Clearly, the status of your personal credit score makes a difference in getting the financing you need for your business. But what happens after your loan has been approved? What’s the next step in building your business credit? Why should you establish a separate credit history for your business?
Establishing Your Business Credit
As soon as your loan has been granted, you should take the necessary steps to establish a separate credit for your business. Make sure that you’ve obtained all the necessary permit, licences, tax id numbers, and registration numbers that are required for businesses. Afterwards, register your business with a business credit reporting agency like Dun & Bradstreet or Experian Business.
Remember to submit your monthly loan payments on time to build good credit. At the start, any delays or misses on your payments will also reflect on your personal credit report. Why is this? Since your personal credit history was used on opening up the loan, your credit report acts like a co-signer for your business. Therefore, it is crucial to keep up with your payments not only to build a good business credit but to protect your personal credit as well.
After some time of consistent payments, you should have already established your corporate credit. You may need to wait a year or more before you can completely separate your business credit report from your personal credit report.
New businesses are just like a teenager who’s just starting to build a credit history for himself. At first, a student may need a co-signer to get a loan but once approved, a student can slowly build his own credit history and after a while, he can easily apply for new credit without relying on other people’s credit. Clearly, if you plan to venture in business, preparing your personal credit is a must. Although a good personal credit history isn’t necessary required to start a business, it is definitely an advantage.
WADE
How Well Do Your Understand Your Credit Report?
Donald Saunders asked:
You probably know all too well that the information which is contained in your personal credit report is used by the loan and credit card companies when determining whether to extend credit to you, but do you know exactly what information your personal credit report contains? For example, did you know that the details which are contained in your personal credit report could determine whether or not you can buy a new house or are going to have to stay in your current ‘shoebox’?
Many people think that if a lender looks at your personal credit report they are simply looking to see your credit score and, although this is certainly one of the things that they do look at, they are looking at a great deal more. Above all, lenders are looking to see how much debt you have in comparison to to your income and even fairly small accounts, such as those with a mail order company, will be treated as an income deduction when when it comes to considering an application for a loan.
If a credit card company or other lender calculates that you have more money going out than you have coming in then your request will undoubtedly be turned down. In fact, by law a certain percentage of your income has got to be available to meet loan payments before the lender is allowed to approve it, regardless of the purpose of the loan.
Lenders are also looking back at your credit history over the past seven years to see how you have handled loans in existence during that period. In particular, they are looking at whether you have made payments on time and will play close attention to any payments which were more than thirty days late. It may not have appeared particularly important to you at the time that you ran into a few problems and were late making payments for a few months on an account, however any new lender will certainly consider this when assessing the risk of lending to you now.
Lenders is also going to see whether or not any of your accounts have run into debt during the past seven years and ifthese debts have now been paid off. If you have payments outstanding on an existing agreement lenders will be very wary about extending you additional credit until these are cleared.
Finally, your personal credit report will also show whether you have filed for personal bankruptcy, usually in the past ten years. Some people think that a company is far more likely to advance you credit if you have filed for bankruptcy because they have the protection of knowing that you may not file again for a number of years. However, this is not the case and filing for personal bankruptcy is viewed by lenders as a red warning flag indicating that you have already demonstrated a tendency to get yourself in over your head when managing your finances.
Your personal credit report is an extremely important document that you should not only understand but which you ought to review occasionally for your own protection and peace of mind. Fortunately, the law states that you must be sent a copy of your personal credit report once each year if you ask for it.
personal credit report
You probably know all too well that the information which is contained in your personal credit report is used by the loan and credit card companies when determining whether to extend credit to you, but do you know exactly what information your personal credit report contains? For example, did you know that the details which are contained in your personal credit report could determine whether or not you can buy a new house or are going to have to stay in your current ‘shoebox’?
Many people think that if a lender looks at your personal credit report they are simply looking to see your credit score and, although this is certainly one of the things that they do look at, they are looking at a great deal more. Above all, lenders are looking to see how much debt you have in comparison to to your income and even fairly small accounts, such as those with a mail order company, will be treated as an income deduction when when it comes to considering an application for a loan.
If a credit card company or other lender calculates that you have more money going out than you have coming in then your request will undoubtedly be turned down. In fact, by law a certain percentage of your income has got to be available to meet loan payments before the lender is allowed to approve it, regardless of the purpose of the loan.
Lenders are also looking back at your credit history over the past seven years to see how you have handled loans in existence during that period. In particular, they are looking at whether you have made payments on time and will play close attention to any payments which were more than thirty days late. It may not have appeared particularly important to you at the time that you ran into a few problems and were late making payments for a few months on an account, however any new lender will certainly consider this when assessing the risk of lending to you now.
Lenders is also going to see whether or not any of your accounts have run into debt during the past seven years and ifthese debts have now been paid off. If you have payments outstanding on an existing agreement lenders will be very wary about extending you additional credit until these are cleared.
Finally, your personal credit report will also show whether you have filed for personal bankruptcy, usually in the past ten years. Some people think that a company is far more likely to advance you credit if you have filed for bankruptcy because they have the protection of knowing that you may not file again for a number of years. However, this is not the case and filing for personal bankruptcy is viewed by lenders as a red warning flag indicating that you have already demonstrated a tendency to get yourself in over your head when managing your finances.
Your personal credit report is an extremely important document that you should not only understand but which you ought to review occasionally for your own protection and peace of mind. Fortunately, the law states that you must be sent a copy of your personal credit report once each year if you ask for it.
personal credit report