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

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

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

Finance Blogs
best blogs