5 Easy Ways to Trash Your Credit

Having good credit scores is very important. Being ignorant on how you could ruin your credit rating is very dangerous especially since people have grown reliant on credit nowadays. Your credit score is so fragile that most of the time, people can unknowingly do something that although may seem right, may also negatively affect how they stand with their credit.

The key to avoiding this is to understand how agencies like TransUnion, Equifax and Experian determine your credit score. You see, these agencies have different formulas in arriving at a score for your credit rating, however they are not much different and they actually have similar considerations with how your FICO score is determined. Here are 5 easy ways to trash your credit score, which you might want to avoid.

Late Payments
Being late on your payments definitely affects your credit score. Since the purpose of these credit ratings and scores are to see whether you have the ability to pay, not being able to pay your bills on time, regardless of the amount, would have an impact on your credit.

Using Too Much Credit
Experts say that using too much credit also negatively impacts your FICO score. Regardless if you pay off that balance right away, the system generally recognizes those high credit balances just the same. Since the system does not discriminate on these aspects of credit usage, it is best to spread out your spending over several cards.

Closing Card Accounts
Since a part of your credit card rating is the ratio of your available credit to the credit being used, closing credit card accounts would mean that you have decreased your available balance.

Not Using Your Credit Card
In the case of inactive credit card accounts, credit card companies could end up not reporting it as part of your available credit to the agencies since you are not using it anyway. They would assume that you are only boosting your credit rating with that account.

Parking Tickets
This refers to fines not related to credit cards but actually fines such as parking fees and even library fees. Regardless of the amount, these fines are reported as money owed; left unpaid, these can definitely harm your credit rating.

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How Long Does it Take to Raise Your Credit Score 100 points

Patience is a virtue, even when in credit scores.

In this day and age when money is hard to come by, people have resorted to various ways in order to alleviate their financial woes, and each of these different ways has their own pros and cons. For those people who can still be said as financially sound, a viable option is to get loans from companies, banks, and even individuals who are willing to lend money to them for a short amount of time on the condition that they will be able to return it with interest.

But as mentioned before, applying for these aforementioned loans also has its detriments, one of which is the fact that they have to be paid in due time, or else the borrower of the money will suffer dire consequences such as higher interest rates. Another caveat for people who wish to apply for loans is the fact that they need to have a good credit history in order for them to be considered as eligible for these loans.

Unfortunately, there are many people who have sub-par credit histories or credit scores, which makes it difficult for them to secure these loans. There is a variety of reasons as to why people accumulate below average credit scores, but thankfully, there are many credible credit card companies who allow their debtors opportunities to improve their credit scores, which will be able to give them a chance of eventually having good credit scores, which will then land them loans from companies and banks.

There are many different ways through which people can improve their credit scores to 100, but this might take some time, which, of course, is not an ideal scenario for people who wish to be able to get their much-desired lawns in less time. This is especially true for people who have emergencies such as utility and water bills, debts, and even medical expenses to pay for. And when it comes to the question on how long it takes to raise credit score to 100 points, it usually takes more than 50 days, all depending on the ability of a person to get copies of their credit reports, evaluate them, and point out the disputes that they have in them.

And since they will be mailing their concerns to the credit card companies that they are borrowing money from, this is usually the part that takes a lot of time. But once they have properly assessed their credit reports and are aware of their concerns and disputes regarding these reports, then they will truly be able to eventually raise their credit scores to 100 points in a relatively short amount of time.

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How to Build Credit From No Credit: Effective Money Management

One of the most essential things that a person has to consider whenever he or she has to borrow money from any lender, be it a bank, a company or even an individual, is the amount of credit that he or she has. This is because these aforementioned moneylenders scrutinize a person’s credit thoroughly before they can determine whether he or she is indeed a financially stable person who will be able to pay off their loans at the designated time. A good credit is what will enable a person to get loans for purchases such as cars, houses, and other important purchases.

And since a person’s credit is their ticket to landing those desired loans from moneylenders, it is important that they should be able to establish a good credit history, especially for people who have only recently acquired their credit cards and are mulling their options on getting loans. Prospective lenders immediately see a person with good credit history as a person who has credibility and will be able to manage the money that will be given to them.

For people who have only recently received their credit cards and are wondering on how to build credit from no credit, what they have to keep in mind is that acquiring a credit card also entails them with several responsibilities. One of which is to be able to properly organize and manage their expenses, which will effectively keep them from getting these risky loans in the first place.

A good way to start for people who wish to build their credit is to search the internet for websites that offer prepaid debit or credit cards. These cards, unlike conventional credit cards, do not require its owners a credit history, and will even serve to their advantage if they wish to earn small amounts of money from using this type of credit card. Another way of building a good credit history from scratch would be for a person to refrain from purchasing items that they know are beyond their budget, except in cases of emergency. They must also make sure that they constantly pay off their debts, even in small amounts, so that they will not pile up and become too much for them in the long run.

But perhaps the most important thing for people who wish to build good credit history from scratch is that they should remember that incurring credit means having debts, debts which have to be paid in due time. If people have the urgency to pay off their debts and are more prudent in spending and managing their money, then they are sure to be able to build good credit history from having no credit.

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Why Is It Important To Know My Credit Score?

Why is it important to know my credit score? The credit score is a measure of your credit-worthiness, or your ability to acquire new credit. Credit scores can range from the lowest score of 300 to the highest, 850. If you have a low credit score, you may have trouble getting approved for loans or be charged higher interest rates on the loans that you get. A credit score below 600 is considered poor while one above 720 is considered good. How can I know my credit score?

What are Credit Bureaus?

The first step to know my credit score is to be familiar with the different credit reporting bureaus. These organizations track the credit information of individuals and aggregate them into a credit report. The major agencies are Equifax, TransUnion and Experian, who collect the information from various creditors such as banks as well as public sources such as bankruptcy filings. Although the three agencies share information, they also create their own distinct credit reports, which is why it is important that if you want to know my credit score accurately you will have to ask for reports from all of them since you may get different results. We are all entitled to one free report from every credit bureau a year and only have to pay for additional reports.

Why Is It So Low?

Once you look at your credit scores by looking over the credit reports, you may be surprised at how low they are. If you pay your debts religiously but your scores are still low, there may be errors in your credit report. If your credit score is too low, you can make it higher by disputing any errors you find on your report. For example, there may have been some debts that have been reported twice or ones that you’ve already paid but are still on the report and you know my credit score will be pulled down.

 

How Is It Computed?

An important aspect to better understand your credit score is knowing how it is computed. Once you know this, you can take steps to improve your creditworthiness in order to raise your score. Thirty-five percent of your score is computed based on how promptly you pay your debts. If you pay on or before the due date, then your credit score should be high. Another thirty percent of your score is based on how much you owe vs. your total credit limit. If your total debts are close to your credit limit, your credit score will be low. Another 15% is based on your credit history or how long you’ve been availing of credit. The last 20% is divided between new debts and how many different types of credit you have so you know my credit score will be high if you keep credit cards active even if you don’t want to use them anymore. If you have a lot of new applications for credit, you know my credit score will be low due to an increased number of credit inquiries reflected on your report. And if you strive to have a variety of credit types such as different types of credit cards, then you know my credit score will be high.

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658: Recommended Credit Cards for a Credit Score of 658

Credit Score of 658 Recommended Credit Cards

A credit score (also known as FICO scores) of 658 fall in the range of average. The best credit cards and lowest interest rates are typically reserved for those with credit scores above 700, although you can still get a good deal on a credit card with a credit score in the high six hundreds. If you don’t know your credit score there are plenty of places you can check for free.

Fun info: The score of 658 is a very average score and according to Steve Bucci 40% of people have a very similar score between 620-745.

The two best credit cards you could get with a credit score of 655:

Chase Freedom: You might not get accepted with a low 600 score but it still does happen regularly so it’s worth a shot. They have some of the best cash rewards with 1% cash back on all purchases. The Freedom Card is best for applicants who do not carry a balance.

Citi Simplicity Card: If you don’t like the Chase Freedom card because you like carry a balance on your credit card the Citi Simplicity credit card is a great alternative. With a competitive interest rate, no late fees, and no penalty APRs, the Simplicity card will save you money and make your life easier.

Find more tips for your credit score range and tips for other credit score ranges here-

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