Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Understanding Debt Management and Credit Scores

When applying for a loan, another credit card, etc. companies, banks, Loan agents look at your credit history or your credit rating. Credit rating is the interpretation of your credit history. Your credit history involves almost everything from loans, bankruptcies, Mortgages to even late payments. Basically, your credit history is the main source for your credit rating. Having a good credit rating helps a lot in getting good insurance deals, a plus in employment, and applying for loans such as for a car, house, etc. On the other side of the coin having a bad credit rating can hurt…a lot! It can prevent borrowing money and raise interest levels you are asked to pay on loans you do receive.

The most used credit rating system is FICO which has a range of 300 to 850. The higher the score is, better opportunities will be available.

In obtaining insurance, insurance agents look at a person’s credit rating to determine whether it is worth the risk to lend the money. And if the agents decide to lend you money, then your rating still affects the rates at which the Insurer would supply to the applicant. For loans, the Lender looks at the applicant’s credit rating also to determine if the applicant has the credentials to be awarded a loan. Having a bad credit rating means that you were probably struggling with financial problems, from bankruptcies to even something small like a late payment. Awarding a loan to a person who has a low score is a great risk for the company -- they might end up not getting paid.

A good credit offers a little bit of ease and insurance for the lending company. It almost gives a guarantee that the lender will pay when bill is due. A good credit rating, nowadays, also has some effect on employment. Employers today now have the habit of looking at the applicant’s credit rating as a means to measure the individual’s trustworthiness and reliability. But this way of screening applicants is somewhat unfair. Nobody is perfect, people make mistakes sometimes and some have made some very bad ones. In order to avoid such a problem, maintaining a good rating score is essential.

As credit cards continue to rise in popularity and use all over the world, a good credit rating is a great asset wherever you go, whatever you do, and building and maintaining a good credit rating only entails a little discipline and responsibility from the user. Spending more than you make is a definite negative practice for building a good credit rating. Spend only within your budget or your salary. When buying, prioritize things that are needed not wanted. Another issue is pay bills on time to avoid interest from credit companies. Plan ahead and budget your money, this way you avoid getting into debt.

Post has no comments.
Post a Comment

Captcha Image

losing your job candidate saving money comfortable living management advice personal finances repay bad debt management credit specific budget categories payment behavior purchase protection great budget ideas handling money check card back support pay off debt losing a job domestic support child support debt expenses reduce debts hobbies worksheet education monthly payment liability cable bill Chapter 13 management program more income money school jobs debts installment plans budget sheet loan companies credit card extra money debt problems short sale house loan debt traps less money teaching children finance careful handling invest money groceries debt collectors live within means allowance professional child spending restrict spending debit card need money classify bills credit checks credit card traps ongoing bills deals in writing chapter 7 common debt job loss government assistance checking account piling debts credit cards high interest rate cash down payment credit repair loss of income credit companies unsecured loan spending cash card part time job bank accounts interest rate home equity illness visualization ill health help unexpected expenses loan amount lending company credit line debt payment period rebuild good credit save money deb consolidation discounts hospital monthly payments credit card company debt free tracking money lose your job great budget debt collection agency account fees honesty financial security credit score full details paycheck unemployed secured loan debt relief medical bills debt consolidation loans trusted friends injury take control of debt lending companies paying out debt insurances understanding budgeting paying bills court appearance installment plan original creditor live your life credit limit loan harassment overbearing bills taking responsibility interest rates bad debt utility payments debt settlement personal finance software unreasonable expectations common debt traps good credit rating saving debt relief agency new job savings phone calls debt management tips bank bankruptcy credit scores management tips budget ideas account interest mortgages help with debt debt consolidation second job legal action home equity loans loans investing negotiate credit rating spend money tax info credit card debt order report negotiation payday loan stop harassment telephone bills finances financial education payday loan companies own money interest payments loan agents debt consolidation medical debt initial research learning experience fly-by-night making payments building debts debt management Consolidation Company family assistance flat broke control spending bad financial decisions children budget prioritizing car loan credit report paycheck info regain control good budget low interest social services pay off bill modified payment plan consumer lawyer gambling debts income implement a budget internet debt rent payments medical bill asset info receipt seperate accounts introductory offers gambling problem managing debt borrowing get out of debt repay loans assets credit history debt company become free extra payments interest creditors account charges budget good credit record credit card help emergency savings account whole family sickness credit accounts cancer understanding home equity past bad debt security budget categories debt programs filing bankruptcy family budget credit card companies children saving mortgage payments salary credit bureaus savings account purchases loan checks charitable organisation buying a house borrow money debt solution debt management advice doctors monthly budget credit company bills debt collector help home debts debt management mistakes repayment plans overspending household items good credit monthly bill borrower total balance payment frequency good debt overcharging insurance child support credit reports younger children your rights

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs