Monthly Archives: December 2015

Actual free credit reports:

A good friend of mine recently asked me what was a credit report and how he can get an actual free credit report. My friend has a doctorate. He is a smart and experienced guy.

If he was asking me this question, he may not be the only one with doubts.So I contacted the people of My Fico to have a chat about scores and credit reports.

rating-1465012-1279x1702Credit Report:

Perhaps the first thing to know is that a Credit Score and Credit Report, are two entirely-different things. Your credit report shows you the raw data, while your credit score is the translation of these data into a three-digit number, using one of the dozens of credit scoring models.

The representative of My Fico compared this to prepare a meal. The credit report is its raw material, the scoring model is your prescription, and the three-digit number as you get credit score is the finished dish.

The three major credit reporting agencies are: Experian, Equifax and TransUnion. Each one of these credit bureaus maintains a separate credit report for individuals. Every time you see your credit score it comes from a report by one of these agencies. No combined results it’s based on data from all three.

It is advisable to request your credit report from each agency once a year, to see your credit. This also gives you the opportunity to review and compare your credit reports for errors. It may be a surprise that you could find a different score from the three agencies, and this is due to differences (or errors) between your reports. Continue reading Actual free credit reports:

Tips to increase credit score:

Your Credit Score affects every important part of your financial life.  Some employers check it as part of a background check for a new employee, to see how responsible you are.  The owners want to see your report and credit score to know whether or not you pay the rent on time.  A good credit history is a necessity for any large loan such as a home or an auto loan.  And your credit score affects the price you’ll pay for auto insurance as well.accounting-761599_1280

If your credit is not in the optimal range of scores, some simple steps are recommended to get there:

◾ Use your credit cards sparingly, perhaps to pay some living expenses, such as a fuel tank or buying food.
◾ Never keep debt at the end of the month, it represents more than 15% of your total credit amount approved.
◾ Pay each card in full each month.
◾ Never miss the deadline of your card for payment.

If you follow these steps, it will not cost anything to increase your score, and you can build a great credit rating in the short term.  You can also apply and qualify for credit card companies with rewards programs or cash incentives.  However, if you ever had a large debt on your cards or you feel the urge to spend more every time they increase the limit of any of your credit card, then I would not recommend this path of action. Even the greatest credit card offers can be a slippery slope for people with a mentality of spending.

If your credit is in bad shape, do not despair.  There are also suggestions to flip terrible credit scores:

Continue reading Tips to increase credit score:

Common causes of denial of loans and credits:

Common causes of denial of loans and credits:Loan Application

The refusal of credit, which is also sometimes called “the rejection of credit” is an incident in which a person or a company is not approved for requested credit line or loan. There are a number of reasons why a line of credit application may be rejected. The most common causes of refusal of loans and credits are lack of credit history and bad credit history. The lack of credit history is a situation where a person has never held a credit or have had a very limited line of credit.

Refused credit can occur if a person with no credit history request a credit line or a person with a limited credit history has applied for a credit line that will make large amounts of money or credit available.

A bad credit history can also lead to the denial of credit. A credit history can be considered poor by a credit institution if one has been delayed on payments, non-payment of loans or have declared bankruptcy.

There are a number of other factors that a credit institution can review, but these are the keys that leads to the denial of credit due to bad credit score. Continue reading Common causes of denial of loans and credits: