The term credit can mean many things. For most people, it is the ability to borrow today and pay later. The idea of “credit-worthiness” defines our personal finances, and reaches out to all parts of our financial lives. Credit can be an accounting term. You can talk about credit cards, your credit history, your credit score, or the three credits you got in college for taking Bowling. This page is the credit nerve center of ThinkGlink.com. From this page you can learn more about what credit means and how having good, bad, or mediocre credit affects your personal finances.
Credit Card Terms May Change
Trouble in the stock market and the economy recently has affected credit card companies just like any other business. You may think that if you pay your credit card bill on time every month and never go over your limit, that you're safe. Credit card companies may change the terms of your credit card at any time. What kinds of changes can credit card companies make? Does your behavior affect what action a credit card company takes on your credit limit?
What’s My Credit Score And How Do I Raise It?
Before you even think about buying a home, you should ask yourself two questions: "What's my credit score?" and "How do I raise it?" Knowing your credit score will help you negotiate a good interest rate on your mortgage, and if you can raise your score, you'll get a loan with a lower interest rate.
Annual Free Credit Report
The only site where to get an annual free credit report is annualcreditreport.com. Ads that offer a free annual credit report aren't free and will still ask for a credit card number. You credit score isn't free, and usually costs about $7 along with the annual free credit report.
Credit Repair Agency Scams Increase
Credit repair scams abound in economic times like these: A shaky economy, record levels of foreclosures, a rising number of bankruptcies, credit card delinquencies, and late mortgage payments. Repairing bad credit takes more than paying a $1,000 fee. Beware of those promising to repair your credit by getting you a new Social Security number.
Credit Card Rates May Change
If you're thinking about getting a new credit card make sure to read all the terms you can prior to applying. You don't want to get blindsided after you have the card. It's easier to read the terms in advance than close the card and get dinged on your credit history. Credit card interest rates can zoom up at a moment's notice, but you can take steps to keep your rate low.
Low Credit Score Means Higher Interest Rate
A low credit score will lead to challenges when trying to get a home loan. The interest rate will depend on what kind of credit you're looking for. It's also possibly that you won't qualify for a loan with a credit score of 500.
Bankruptcy Only Way Out Of Credit Card Debt
A mother let her son use her credit card to help set up his new home and now she is in significant financial trouble. You should never let anyone use your credit card without your permission. If the credit card debt is bigger than her income, her only solution might be to file for bankruptcy.
Bankruptcy And Bad Credit Make Mortgage Difficult
After going through a divorce and bankruptcy you may find it difficult to keep making mortgage payments on a property that's not a primary residence, even if it's rented out. To prevent your credit from becoming more bad, you should try to keep making mortgage payments. Perhaps your former spouse, who's also paying part of this mortgage, can help you out until you have more income. Despite bankruptcy and bad credit, it's not a time to give up.
Creditors May Set Up Payment Plans
A woman diagnosed with breast cancel neglects to pay some of her bills. Even during illness or hardship, yo uare responsible for paying your bills on time. Think about setting up automatic payments to make sure they're on time. If your late bills have already been reported, work with the creditors to create a payment plan or your credit score will suffer.
Credit Report Hurt By Inaccurate Charge-Off
Inaccurate reporting of information on your credit report can seriously damage your credit score. However, sometimes the circumstances are reported wrong on your credit report. If a dispute goes on for a year or more, and the leasing company sells your debt to a collections agency and charges off the wear and tear amount that you failed to pay, then it is a charge off. You can dispute the way debt is reported by filing complaints with the credit reporting bureaus and other agencies. Make sure to report your complaints in writing to the credit companies.