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

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

Finance Blogs
best blogs