Tag Archives: credit reports

How to Raise Your Credit Scores

The behavior of a consumer is prone to change. When a company makes an inquiry, what they get is a “snapshot” of your situation. When you open a charge account, miss a payment, or pay your debt, your score changes. Although the number keeps changing, you need to know what your score is at a particular time and how you can increase it. Each section of credit information carries a different weight when it comes to calculating your credit score.

35% payment history

This is very important as it contributes the largest share. Underpayments, missed payments, late payments, and other related issues are included in this section. Creditors report this kind of information differently (some 10 days after the due date, some after you have missed two payments, etc.). Get to know how your creditor reports information. 

30% outstanding debt

You have a credit limit and you are the determinant of that limit. Your outstanding debt is calculated against unused credit and used to come up with a credit score. Many credit cards increase your credit limit (if you do not use up the available credit).

15% length of credit history

Keeping your account for a long period of time boosts your credit score. The most important thing is to pay off your balances and avoid closing accounts. If you use the same finance resource for different loans you will also help your score.

10% new credit information

New credit shows that you can open credit lines and that your financial situation is great since creditors are willing to finance you. It also shows that you are financially active.

10% credit mix

A mortgage is a loan; so is a credit card and any other account that you can charge groceries or gas to. However, they are not the same type of loans. Their difference is important. Several kinds of credit accounts show credit bureaus that you can handle different types of financing. 

Negative items such as tax aliens, judgments, and bankruptcies can damage your score.  Credit bureaus accumulate all the factors above and use their formula to come up with a number that is your score. The number changes regularly and you should check your credit report on a regular basis.

You can improve a bad credit score by adopting good credit habits, not over-borrowing, paying on time, and keeping low credit balances. Dispute negative items on your report; you can do it yourself or involve a credit repair company. Credit repair involves challenging and verifying inaccurate information. It works to retain the good information and eliminate bad information. 

What Is A Good Credit Score?

Your credit influences every area of your life. A good credit score means lower rates for car loans, credit cards, mortgages, and a few types of insurance. Employers also use credit scores to make hiring and advancement decisions.

This chapter will help you understand what a credit score is and what a good or bad score means. Basically, a credit score is a number that shows your likelihood of repaying debts. This number helps creditors decide on whether to give you credit or not and even the terms of the credit.

For instance, your bank uses your score to see if you qualify for a mortgage and to decide on the rate; the higher the score the lower the interest rate.  Credit bureaus calculate credit scores using their internal algorithms. These scores depend on your financial actions, both present and past. How you pay your debt, amount of debt you owe, and the period you have had credit are some of the factors considered.

Your credit score keeps on changing depending on your actions. Simply put, creditors sell your financial information to credit bureaus and the bureaus use the information to come up with your score. This score is like a “grade” of your financial responsibility. New creditors use the credit score to determine your likelihood of repayment. There are many types of credit scores but the one that really counts is the FICO Score. It ranges from 300 to 850. 

Others include:

PLUS, Score: it was developed by Experian. It ranges from 330 to 830.

TransRisk Score: TransUnion developed this score and it ranges from 100 to 900.

Equifax Score: it ranges from 280 to 850.

VantageScore: unlike the three models above, lenders use the VantageScore sometimes. It ranges from 300 to 850. The credit you want to obtain and the interest rate that you would prefer are the determining factors on whether your score is good or bad. For a small loan, multiple score ranges are good. Mortgage lenders, however, will require a score of at least 640. 

Here are the general range points.

781 and above – excellent credit

661 to 780 – good credit

601 to 660 – fair credit

501 to 600 – poor credit

500 and below – bad credit

Landlords will require that you have a credit score of no less than 620. Otherwise, you will have to get a cosigner. Alternatively, you might be forced to pay a huge deposit.

Average new car rate:

740+ (Super Prime): 2.70%

680 to 739 (Prime): 3.67%

620 to 679 (Non-Prime): 5.49%

550 to 619 (Subprime): 9.25%

<550 (Deep Subprime): 12.42%

Most lenders will not finance you if your score is less than 640. For the best mortgage rates, aim for a score of 720 or higher. For the best rates and a lot of perks, aim for excellent credit (720 and above). A score of 640 and above can also get you a decent credit card. 

Self Lender Review: Build Credit and Earn Interest

Nowadays, it seems like people prefer not to have credit cards. 

For you to get one, you have to establish credit. So how do you even get it in the first place? 

What Is Self Lender?

This is where Self Lender comes in. It is a company that helps you build good credit. You take out a small loan and they use it to set up a CD account in your name. Each month, you make payments to pay off that loan and gain access to the CD funds. These monthly payments are then reported to credit bureaus. 

Signing up is free but you will have to pay interest fees. If you are serious about improving your credit, these fees are worth it. 

In summary:

You can use Self Lender as a tool to build savings and credit history. Note that individual credit situations are different and this may not necessarily improve your score. 

Every month, you pay off your loan. Once you have cleared it within the agreed period, the CD funds become available. 

These monthly payments will be reported to credit bureaus. If you pay responsibly, your credit score will improve. 

How It Works

Basically, this is a company that monitors credit for free and also provides a Credit Builder Account. This account entails you giving yourself a low-cost loan. 

It is like making monthly payments to a savings account. At the end of the agreed term, you will get the total amount and a better credit score on top. 

What About Someone with No Credit Cards? 

Someone who has always avoided credit cards because they hate debt may not have credit at all. This means that buying a house or car will be a little difficult for them. 

If this is you, Self Lender may work just fine for you. 

How to Deal with Bad Credit

Other than making your payments on time every month, how else can you improve your credit? 

Self Lender will help.

Here are other options:

  • Become an authorized user for another person’s credit card account.
  • Get a secured card.
  • Report your rent payments (and pay on time). 

Self Lender and Bad Credit

A Credit Builder Account could help you improve your bad credit. Self Lender may not run a hard inquiry check on your credit but they will still need to know whether any of your checking accounts have been fraudulently shut down or gone to Chexsystems.

What to Expect with a Credit Builder Account

You open an account and take out a small loan. A Certificate of Deposit (CD) account will be opened with this loan. You get to choose your CD size.

What you will need:

  • Prepaid card, debit card or bank account
  • Email address
  • Phone number 
  • Social security number


  • 18 years or older
  • Permanent U.S resident

How It Works

Choose your account.

Make payments.

Watch your score go up.

Access your money after the CD term.

Self Lender Fees

You will have to pay activation fees and an interest rate (10.6% to 13.16%). 

When is The Best Time to begin Credit Repair?

This article explores the need for credit repair when creditors start calling.  You will see a case study of how one can begin in debt just by paying the essentials but may be able to get out of debt by adjusting a few of those essential items.

When the creditors are ringing the telephone off the hook you know it is time to repair your credit. The U. S. alone has in excess of millions of individuals and families straining to discover a way out of debt. This is the reason when you go online you see thousands of web sites that disclose, they have the answer for relieving debt. Do not be fooled! Most of the telemarketers that say they can get you out of debt can only produce a lot more problems. There is no solution for all of us, but there is a solution for us all individually.

Let us look at a case. Let’s say that you make $220 each week per paycheck. Your debt is about $6000, and it does not appear that you can find a way out. Now let’s claim that you have two cars, and both are paid in full and you have a monthly rent that equals $500. We understand that you only have $650 per month to buy food, pay utilities, clothes, and other items desired to live. We cannot overlook the telephone bill. This seems like an impractical situation but in reality, there is a solution available.

Now if your telephone invoice is about $80 per month and you pay out about $60 per week on groceries and about $160 per month on utilities, you will notice that you will have barely a dime left at the end of the month. Thus, the answer is getting a job that pays more, looking for a low-income residence that bases the rent on your income and using less utilities per month.

In today’s time you will pay out $60 simply on groceries and not have enough to make it to the next week.  Thus, is it feasible that you can eat foods that are inexpensive and last longer? When you are broke you have to live like a person who is broke. The sadness about people who struggle is that they regularly envy or strive to buy items they do not truly need. Rather than paying the bills on time, they regularly pay a portion of the bill and purchase items that are not needed.

If you have two cars and are a lone individual it is smart to put one of the cars up for sale and use the balance toward the bills. You may notice from this deduction that more money is needed to live. Why are you paying $400 for rent when there is many sources on hand that present rent for less? Now let us twist this around.

From here on out, we will give you tips on how you may be able to get out of debt and begin to keep a little money for yourself.  This article should become a little more helpful to you.

What if you effectively rented a low-income apartment? Let’s say that your rent amount is lowered to $300 per month. This leaves you an additional $200 per month to purchase groceries, pay utilities, pay your telephone bill, pay car insurance and have a few bucks left over each month. This is one answer and it does not produce much but it does produce a small reward. Now if you can lower your utilities to around $100 per month that is another $60 you could pay out on bills.

If your credit history is delinquent, yet you are not sinking in quicksand you might qualify for a credit card. The answer is not to get the credit card to purchase items, instead it is to get a credit card that will help you pay your monthly bills and allow room to repay the credit card. Ensure the credit card has low interest rates and no annual fees attached. If you can get by with no credit card, all the better, but today it is nearly impossible now to go without a card.

If you can get a job with higher wages, then this is beneficial too. The disadvantage is when people get better paying jobs, they regularly take it for granted and land further in debt. The more money you make the more you spend. It pays to be cautious with your money and keep aware of your credit situation to maintain a repair in place. When creditors are calling, it is time to fix your credit so get ahead of the game before the telephone starts ringing.

No matter which way you look at it, having a firm understanding of credit repair will benefit you in the long run, even if it is just slightly.

3 Ways To Get Your Free Annual Credit Report

Yes, you can now get your credit report without paying a dime. And unlike before, now it is truly free. No longer do you have to sign up for a “free” credit report by signing up for “credit monitoring protection service” for a low annual fee of $79 a year! The days of dodging the annoying charges and service fees for a free credit report are over.

Under the 2003 Fair and Accurate Credit Transactions Act, you have the right to a free copy of your credit report within a 12 month period from the big three credit report bureaus (Experian, Equifax and TransUnion).

The goal of this new government act is to ensure that Americans have the right to stay informed about what these three credit reporting bureaus say about you without having to pay for it. Since identity theft, fraud and errors are quite common today, why should you have to pay for a copy of a report to fight back against these problems?

Here are the 3 ways to get your free annual credit report:

The three credit reporting agencies have created a website to request your annual credit report.

1) Go to http://www.annualcreditreport.com

2) Call (877) 322-8228 to request your free credit report.

3) Complete a form from the Federal Trade Comission, http://www.ftc.gov/bcp/conline/include/requestformfinal.pdf and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

If you go directly to the three agencies or use any other type of service you may end up having to pay or sign up for the subscription services I mentioned above! Make sure you use one of the 3 methods I have listed to get your annual free credit report.

You can get the reports from all 3 agencies at once or stagger the reports from each one during the course of 1 year. The advantage of staggering the reports that you receive is to keep track of how any major changes in your financial picture affect what is on your credit report. For example, if you plan on getting a second mortgage over the coming year, or applying for student loans, ect. it might be wise to get a report before and after these major events!

This new Act does not supplant the other methods you can take advantage of to receive a free credit report. If you are applying for unemployment or been denied a loan, or need a credit report in order to get a job, you still have the right to obtain a free credit report.

Take advantage of this new government regulation and make sure all of the information listed by all three credit reporting agencies are correct. Any errors or omissions can reduce your credit score and end up costing you a lot of money when you apply for any type of credit.

Yes, you can now get your credit report without paying a dime. And unlike before, now it is truly free. No longer do you have to sign up for a “free” credit report by signing up for “credit monitoring protection service” for a low annual fee of $79 a year! The days of dodging the annoying charges and service fees for a free credit report are over.