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.



Comments
Post has no comments.
Post a Comment




Captcha Image






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



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

Finance Blogs
best blogs