The various credit bureaus can use different methods at arriving at your score and this is why you can sometimes have more luck getting credit from one lending institution than another.
Scott Stephens show you how to get out of debt fast without filing bankruptcy in his ”ULTIMATE DEBT GUIDE”
The industry standard is a system called FICO. FICO stands for Fair Isaac Corporation Company. FICO is software for calculating credit score and is regarded as the leader in the calculation of credit score within the finance industry.
The fact that it is commonly accepted as the most suitable way to rate a person's credit score is why many people will talk of FICO scores or FICO ratings rather than calling them credit scores.
The software that is used to calculate credit score, whether it is FICO or other software uses research and mathematics to decide upon the rating.
This information is important to you as it will help you to have a better understanding of what you can do to give your credit score a boost in its rating.
I must say that I was very reluctant at first to endorse any product, but Life Without Debt was different because it's based on a proven, step-by-step system.
The best way to explain how credit score is calculated is to compare it to insurance premiums where you will pay a higher premium based on various factors in your life.
With insurance those factors will be your age, your occupation, your health and even your choice of sport where dangerous activities will make you a higher risk for the insurance company.
The insurance company can then look at their research data and calculate your risk.
Obviously older people and those participating in dangerous activities will be a higher risk and those people will be expected to pay higher premiums.
Credit bureaus have similar research data that relates to peoples ability to repay debt in certain circumstances, and it is this data that they will use when they input your information to decide whether they will lend you money and if so at what interest rates.
Friday, October 10, 2008
Wednesday, October 8, 2008
IMPROVING YOUR CREDIT HISTORY
Improving your credit history is basically about doing the opposite to that which caused you to get a bad credit history in the first place.
You got a bad credit history by not making good the debt that you owed to other people either on late payments or failure to make the payments at all.
This bad credit history remains in your name for 7 1/2 years and any time you go to borrow money, rent accommodation or virtually anything else that involves the need to check your credit standing you are going to be at a disadvantage.
So what can you do to make up for your past errors?
Simply by doing the opposite to what you did in the past and borrowing small amounts of money but ensuring that you pay them back on time all the time to start to build up a good credit history will begin to compensate for your past efforts.
Scott Stephens show you how to get out of debt fast without filing bankruptcy in his ”ULTIMATE DEBT GUIDE”
When many people get on top of their debt problems they are very reluctant to go back to borrowing again however in order to get your own house and a mortgage that will be necessary in order to buy it, you need to start rebuilding your credit history and unfortunately the only way that that can be done is by borrowing and proving that you have changed and can meet your responsibilities to the financers.
You don't have to borrow a lot of money and in fact it is better to do smaller amounts at various different places so you get good credit reports from a wider range of people.
Credit cards are the easiest way to get started rebuilding your past and then buying the occasional item provided it is a necessity and at low cost on hire purchase where you make monthly payments over a set period of time and don't miss any payments as the next step towards your goal of getting lending institutions the confidence to work with you further.
I must say that I was very reluctant at first to endorse any product, but "Life Without Debt" was different because it's based on a proven, step-by-step system.
In this e-Book you will find everything you need to get out of debt FAST, and stay out of debt FOREVER!
You got a bad credit history by not making good the debt that you owed to other people either on late payments or failure to make the payments at all.
This bad credit history remains in your name for 7 1/2 years and any time you go to borrow money, rent accommodation or virtually anything else that involves the need to check your credit standing you are going to be at a disadvantage.
So what can you do to make up for your past errors?
Simply by doing the opposite to what you did in the past and borrowing small amounts of money but ensuring that you pay them back on time all the time to start to build up a good credit history will begin to compensate for your past efforts.
Scott Stephens show you how to get out of debt fast without filing bankruptcy in his ”ULTIMATE DEBT GUIDE”
When many people get on top of their debt problems they are very reluctant to go back to borrowing again however in order to get your own house and a mortgage that will be necessary in order to buy it, you need to start rebuilding your credit history and unfortunately the only way that that can be done is by borrowing and proving that you have changed and can meet your responsibilities to the financers.
You don't have to borrow a lot of money and in fact it is better to do smaller amounts at various different places so you get good credit reports from a wider range of people.
Credit cards are the easiest way to get started rebuilding your past and then buying the occasional item provided it is a necessity and at low cost on hire purchase where you make monthly payments over a set period of time and don't miss any payments as the next step towards your goal of getting lending institutions the confidence to work with you further.
I must say that I was very reluctant at first to endorse any product, but "Life Without Debt" was different because it's based on a proven, step-by-step system.
In this e-Book you will find everything you need to get out of debt FAST, and stay out of debt FOREVER!
Saturday, October 4, 2008
Managing a Budget Deficit
If your expenses are greater than your income then you have to contend with a budget deficit and there are only two ways you can deal with this. You can earn more money or you can spend less - it is as simple as that. Unfortunately it is easier said than done some of the time and that's why many people get into debt in the first place by topping up the deficit with money from credit cards and other high interest loans.
GET MORE TIPS ABOUT CREDIT AND DEBT MANAGEMENT.
Your budget will help you to focus on areas where you can cut your spending. Obviously you will be looking at luxury items first and those non-essential items that will be easy to eliminate. If you can eliminate your budget deficit by getting rid of these non-essential items then you are in luck however it might not be quite that easy for you to reduce your spending enough to make up the deficit.
If that is the case then you will have to go back over your budget again and see the areas where you can cut your spending to try to close the gap between income and expenditure.
If you are putting a percentage of your income aside a regular basis for some type of saving scheme then you might need to consider canceling that saving until you have managed to reduce your debt to such an extent that you are able to cover your costs with your income.
Once all areas of cost-cutting have been exhausted you are left with the only other alternative of increasing your income and you will need to look at whether you're able to increase your hours of work or possibly even get a second job to bring in enough additional income to cover your expenses.
One way or another unless this budget deficit is eliminated you will be destined to continue accumulating debt and the more you do that the more difficult it will be to bridge the gap.
“How You Can Get Out Of Debt FAST Without Filing Bankruptcy -- Using Several Little
Known But Highly Effective Techniques
Which Are Guaranteed To Work No Matter
How Much You Currently Owe!”
Scott Stephens show you how to get out of debt fast without filing bankruptcy in his ”ULTIMATE DEBT GUIDE”
GET MORE TIPS ABOUT CREDIT AND DEBT MANAGEMENT.
Your budget will help you to focus on areas where you can cut your spending. Obviously you will be looking at luxury items first and those non-essential items that will be easy to eliminate. If you can eliminate your budget deficit by getting rid of these non-essential items then you are in luck however it might not be quite that easy for you to reduce your spending enough to make up the deficit.
If that is the case then you will have to go back over your budget again and see the areas where you can cut your spending to try to close the gap between income and expenditure.
If you are putting a percentage of your income aside a regular basis for some type of saving scheme then you might need to consider canceling that saving until you have managed to reduce your debt to such an extent that you are able to cover your costs with your income.
Once all areas of cost-cutting have been exhausted you are left with the only other alternative of increasing your income and you will need to look at whether you're able to increase your hours of work or possibly even get a second job to bring in enough additional income to cover your expenses.
One way or another unless this budget deficit is eliminated you will be destined to continue accumulating debt and the more you do that the more difficult it will be to bridge the gap.
“How You Can Get Out Of Debt FAST Without Filing Bankruptcy -- Using Several Little
Known But Highly Effective Techniques
Which Are Guaranteed To Work No Matter
How Much You Currently Owe!”
Scott Stephens show you how to get out of debt fast without filing bankruptcy in his ”ULTIMATE DEBT GUIDE”
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