Factors That Negatively Affect Credit Part 4

Factors That Negatively Affect Credit – Part 4

This week we have been looking at factors that negatively affect your credit scores.

Today we will look at your credit history.

Our credit scores are based upon our payment history. If we maintain the proper kind of credit and maintain healthy balances our scores are affected positively. If we open the wrong kind of credit and have high balances it will affect our scores negatively.

If you have no current credit accounts you could end up with no scores at all.

35% of your credit score is based upon your payment history. Creditors report your positive or negative payment history to the credit bureaus. Consumers who take on debt and pay it back on time increase their scores. You can see how important it is to maintain your accounts carefully.

30% of your scores are based upon your outstanding debt as compared to your credit limits. It is best to keep your outstanding debts as low as possible.

15% of your scores are determined by the length of your credit history. Closing old accounts sometimes will hurt your scores.

10% of your score are based on the different types of credit you have. You can hurt your scores without proper guidance.

At HOPE we can help you develop healthy credit habits. Please call us at 704-503-3669 and we will be glad to assist you.

Factors That Negatively Affect Credit Part 3

Factors That Negatively Affect Credit – Part 3

We are continuing to discuss this week factors that negatively affect your credit.

Today we will look at inquiries.

Every time someone pulls your credit report you lose 1 – 3 points. It is unwise to apply for credit haphazardly. Many stores will encourage you to apply for their credit card and offer you a discount off today’s purchase as an incentive for doing so. The discount may cost you a lot more over the long run with higher ineterest rates.

10% of your scores are based upon credit applications you submit to lenders. It is better to keep these to a minimum.

It is important to check your credit report at least once a year so you can be sure what is on your report. You don’t lose any credit score points for checking your own credit report.

Inquiries that you have initiated will negatively affect your scores for 24 months.

It is important to have professional help in making wise credit decisions. At HOPE we can help you make wise choices when it comes to applying for credit. You want to be sure you are helping and not hurting your credit scores. If you would like more information please call us at 704-503-3669. We are waiting on your call.

Factors That Negatively Affect Credit Part 2

Factors That Negatively Affect Credit – Part 2

We are discussing this week factors that negatively affect your credit.

Today we will look at new late payments or new collection accounts that appear on your credit report.

It is very important that you pay your current bills on time. Missing a payment can hurt your credit scores more than all of your collection accounts combined. The credit bureaus will penalize your score when you have missed payments.

New collection accounts that appear on your credit report is another way your scores are penalized. Most collection agencies will give you a short window to deal with new items before they place them on your credit report. It is better to deal with these items quickly so they will not appear on you credit file.

Maintaining a good credit score can save you hundreds of dollars every year on a home loan.

At HOPE we can usually help you negotiate and your collection accounts at a considerable savings. If you would like to know more please give us a call at 704-503-3669.

Factors That Negatively Affect Credit Part 1

Factors That Negatively Affect Credit – Part 1

This week we will be sharing with you, “Factors that negatively affect credit”.

First we will mention inaccurate negative information that might be on your credit report. Many credit reports have out dated or inaccurate information that may be showing on the credit report. A recent study showed that over 75% of credit reports contain errors.

You should obtain a credit report so you will know what is being shown on your credit reports. These are the reports creditors will use to determine if they will approve you for a loan. It is important that you are not surprised by inaccurate information being listed on your credit file. Inaccurate derogatory items will cause your scores to be lower than they should be.

It is your legal right to challenge this information and force the creditor to verify the information they have submitted to the bureaus on your credit file. Creditors must prove the information they have submitted is correct. Getting these items updated correctly or deleted will cause your score to increase significantly.

Most of the time you can get items removed from your credit report if they are seven years old. There are also limitations as to how long a judgment or bankruptcy may stay on your report as well. Many times these are listed inaccurately with old information.

At HOPE help clients verify their credit information to be sure your credit file is 100% accurate. If you would like more information please give us a call at 704-503-3669.

Are Department Store Credit Cards Best?

I have often been asked: "Are department store credit cards best?" These cards are also referred to as "retail store cards" and, whatever you choose to call them, the answer to the previous question is "not really." Many times retail stores will offer you a discount on your purchase if you apply for their card. However, discount aside there are still several reasons I would stay away from these cards.

1. Department store credit cards generally come with a low limit. 
This means that if you charge anything on the account then you will be endanger of having a high revolving utilization ratio - a big mistake in the credit score department. 

2. Every time someone pulls your credit it may lower your scores.

3. The interest rate on retail cards is generally higher, perhaps much higher. 

4. You limit your self to buying in that store alone, where with a general use Visa, Master Card or Discover Card you can use the card almost anywhere.

In my opinion you should never charge more than you can pay off within one week. Keeping your balance at zero to $10 ensures you keep your scores as high as possible.

Everyday at HOPE4USA we help our clients make wise decisions about their credit. If you would like to know more please call us at 704-499-9696 or CLICK HERE to schedule your no-obligation, professional credit analysis now.