Finding Your Way Home
Lenders look at your credit report to determine whether you qualify for a loan or credit card. Inaccurate information could lead to an unfavorable interest rate or outright denial of your application. You should periodically request copies of your credit reports and check them for errors. If you find a mistake, act immediately to have it corrected so it doesn’t hurt your chances of obtaining credit.
How an Error Might Have OccurredIf you have a common name, your records could have gotten mixed...
A late payment on a credit bill or other debt such as a mortgage can have a significant impact on your credit score. And the higher your credit score is to begin with, the more it can fall after a late payment.
Paying your bills on time is the best way to avoid this. If you don’t make your payments and your account is turned over to a collections agency, you won’t be able to get that account current again. Late payments can stay on a credit report for seven years.
Before it gets to that point,...
A debit card is a smart way to shop if you want to avoid using a credit card that will charge you interest if you don’t pay the balance in full each month. But because a debit card is directly tied to your bank account, you can lose a lot of protections.
Debit Card Hassles
While a debit card can be seen as safer than carrying cash, it can be a costly mistake if a thief steals it or your personal information to empty your bank account.
Unauthorized credit inquiries are a sign that someone has fraudulently applied for credit in your name. They can hurt your credit score and make your financial life more difficult until they’re removed from your credit report.
A credit inquiry is a record that your credit report was accessed because you submitted a credit application somewhere.
The Fair Credit Reporting Act defines who can be granted legal access to your credit. These include you, a court order if you’re alleged to have caused...
Credit can be a scary subject to approach, whether or not you want to jump into it isn’t an option in most cases; credit determines a lot, but it can also be a great financial tool when used properly. When your credit score is good, your rates, loans, and other financial endeavors will be good, too.
The first step to managing a credit score is to understand how it is calculated. Read this guide to help you on your way to achieving financial freedom.
Why does credit score matter?
Most p...
If you’re buried in debt that you can’t repay, declaring bankruptcy can allow you to start over with a clean slate. It can also lower your credit score and make it difficult to access credit in the future. With a strategy and dedication, you can rebuild your credit and achieve your financial goals.
See Where You StandStart by taking a realistic look at your current situation. Obtain copies of your credit reports to see how your financial struggles have affected your credit scores. Knowing your...
