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Tag Archives: Credit Repair
10 Things a good credit score can get you.
Your credit score is just a number, right? I mean, how important can it be to your finances?
You know what else is just a number? Your bank balance, the amount you owe in debt, how much income you earn, and even at what age you’ll retire!
In fact, your credit score is more important than ever for nearly every aspect of your finances.
To prove it, we’ll cover ten things that you’ll get with a good credit score:
1. House
So, you finally want to achieve the American Dream by owning your own home? Well, if you’re like most people, you’ll need to obtain a mortgage to buy that home, and a good credit score will vastly help you qualify. In fact, the higher your score, the more loan options will be available to you and the lower your interest rate generally will be. The good news is that there are loans, like those guaranteed by the FHA, that can help lower-credit borrowers, but a high FICO will definitely come in handy.
2. Lower credit card interest rates
The average credit card interest rate in the U.S. is now around 14.99%, but that climbs to a lofty 24.9% when we look at credit card holders with lower credit scores. We’re also spending a LOT on our credit cards again, as the U.S. balance is now approaching $1 trillion! Increase your credit score and you’ll start saving significant money on your credit cards, almost immediately.
3. Business, personal, school.
Are you starting a business? Taking out a personal loan from the bank? Or even applying for student loans (which is now higher than both credit card and auto debt in the U.S.)? If so, a great credit score will be a huge help along the way.
4. Renting
Even if you can’t afford to buy your own home, you’ll have to live somewhere, and that means renting. As part of the initial application, you better believe that landlords check credit score these days for prospective tenants.
5. Lower insurance premiums
A lot of people don’t realize this, but insurance carriers actually cross reference credit scores of their policyholders (along with plenty of other factors) and assign higher premiums to those with low scores.
6. A better budget
If your credit score could magically go from 550 to 750 (and it CAN – it’s just not magic), you’d realize some incredible savings across most line items on your monthly budget. Add it all up and that savings could come to $100, $250, or even $500 a month!
7. Favorable utility and cell phones
Yes, even your utility providers check your credit score now, as they look to avert defaults. If you’ve walked into a cell phone store and asked to open an account then you know that the AT&T, Verizon, and others check credit, too.
8. More savings + less debt
With that new and improved budget, things are finally turning around for you financially. With extra disposable income every month, you can now afford to put some aside for savings every month and, most importantly, start paying down your debt. That’s when you REALLY start realizing more money in your pocket.
9. Dream job
Wait, a good credit score can get me a job? Well, not necessarily, but a bad credit score can certainly ruin your chance of landing your dream position! In fact, more than half of all employers do credit checks on their applicants these days and some, like in financial services, definitely will want a clean credit history and solid score before inking you to a new employment contract.
10. Financial security
Lower credit card rates, becoming a homeowner, paying off debt, saving for emergencies, and landing a new job all mean one thing: you’ve finally broken through the frustration, hard times, and penny-pinching that your low credit score brought. Studies show that consumers with good credit scores have a net worth that’s roughly 12-times that of low-scorers, and that’s no accident!
Are you ready to get these ten things a good credit score will bring you? We’re prepared to help with a free credit report and consultation, so contact us today!
The 15 most common credit score wrecking balls!
1. Paying late (or not at all)
Of course, one of the biggest wrecking balls that smash through your credit score and finances is paying your bills late. For accounts on your credit report, like mortgages, credit cards, auto and student loans, and many others, paying even just a day or two late can trigger a 30-day late, which will significantly ding your score.
Even worse, being 90 days late causes further damage to your credit report that. Remember that payment history (paying on time every month) is 30% of your score, so pay on time to dodge this wrecking ball!
2. Max out credit cards or accounts
Your credit ratio, or the amount of total debt you hold compared to your available credit, is also a major factor for your score, making up 30% of your FICO as well
So, when you max out your credit cards, even if they are paid on time, your score will get smashed.
3. Have an account charged off and go to collections
Once you are 90 days late with your credit card payment or bill, the next step is typically that your creditor soon charges off the debt, sending it to a third party for collections, causing even more damage to your credit score that can be hard to erase.
4. Cosign for someone who doesn’t pay
Maybe you have a friend or even family member that asks you to be a cosigner on their credit card, auto loan, or another account. I know that you’d like to help, but aware that if they don’t pay, YOU are fully responsible for their debt. In fact, those late payments will show up on your credit report just like you took out the debt, yourself.
5. Filing bankruptcy
If you want to talk about a big, heavy wrecking ball, filing a Chapter 7 or 13 Bankruptcy is one of the most damaging events to someone’s credit score. However, for some people, legal insolvency is still the best option if they are drowning in debt with no way out. The good news is that Nationwide Credit Clearing can work with you during and after the BK process to repair the damage!
6. Foreclosing on your home
Another major wrecking ball is foreclosure, which occurs when you miss enough house payments so the bank legally repossesses the home. Foreclosures cause serious damage to your credit score and will take seven years to fall off your credit report.
7. A judgment against you
This is a dangerous and scary wrecking ball for consumers. When you don’t pay your debt obligations, your lender or third-party collection agencies may take you to court, trying to secure a judgment for the amount you owe (plus late fees, penalties, and court costs). Also, there are state and federal judgments for unpaid child support, alimony, IRS tax liens, etc. that will never disappear from your credit file until they’re satisfied! Contact us immediately if you have judgments!
8. Applying for new credit recklessly
If you start filling out a lot of credit card and loan applications within a short period, it shows the credit bureaus that you’re financially desperate, or something is wrong. Since their main job is indicating risk for lenders, your credit score will take a hit, accordingly.
9. Close old credit cards in good standing
It may seem like good financial sense to cancel old or unused credit cards, but by shutting down a seasoned card or credit line in good standing, you’ve just effectively erased a positive track record of paying on time. Sorry, but your score will go down once that positive payment history is taken out of the equation.
10. Not pay student loans
Remember when we were talking about judgments? Unpaid federal student loans will level your credit very quickly, and they also won’t naturally disappear from your credit report until they’re paid. Unfortunately, unpaid student loans are the fastest growing form of credit score “wrecking ball” in the United States.
11. Utilize payday loans, cash advances, or financing through Rent-a-Centers
All credit is not created equal, and when you take out loans that are deemed risky, it will hurt your score. Payday lenders, check cashing services, certain retail credit cards, and financing purchases like furniture can shake the foundation of your score.
12. Try to outthink the credit card companies with balance transfers
Are you “jumping around” between credit card offers, taking out 0% interest or cash-back offers and moving balances around just to stay one step ahead? The chances are that questionable financial practice will catch up with you sometime, in the form of penalties, late fees, small print you miss, or higher interest rates. But even if it works, your credit score will be battered and bruised.
13. Not using your credit at all
About 30 million Americans are considered “Credit Invisible,” as they don’t have a sufficient – or any – credit history. If you don’t have any credit cards or other accounts, there’s no established payment history for the credit bureaus to judge you by, and your score will be rock-bottom. Luckily, you can contact Nationwide Credit Clearing, and we will guide you through how to establish credit and build a good score.
14. An imbalanced mix of credit
Do you have only credit cards on your credit report? Or, is have you taken out four installment loans but nothing else? An imbalance between credit cards, installment debt, auto or student loans, mortgages, etc. can also act like a demolition crew to your credit score.
15. Not checking your credit frequently
These days, credit and identity theft is the fastest growing form of crime around the world, and companies that collect your sensitive financial data – and even credit bureaus (like Equifax) are susceptible to hackers. Even if you pay all of your bills on time and do everything else correctly, the best way to protect your credit and finances is to regularly monitor your credit report.
Start by contacting Nationwide Credit Clearing for a free credit report and consultation at (773) 862-7700 or MyNationwideCredit.com.
5 Ways to jump-start your credit score.
Is your credit score far less than ideal these days? If your FICO is lagging, just like about 30 percent of all Americans, it may be holding you back from getting a better credit card, applying for a mortgage loan to buy a house or even being hired for your dream job.
But the good news is that there are strategies you can use to build your credit, raising it to the point that you are considered a prime candidate for the best interest rates and credit approvals from banks, lenders, and other financial institutions.
Some of these strategies are part of a long-term plan to maintain good credit, but we also have ways to almost instantly boost your score.
If you are planning to apply for a home mortgage, finance a new car, or try to get a job that checks credit as part of the hiring process (like about 45 percent of all employers these days), you’ll want to utilize these five tactics.
Remember that Nationwide Credit Clearing is the U.S. leader in fast, effective, and affordable credit repair, so call us if you’d like a free credit report and consultation to get started!
- Pay down balances.
We know that the ratio of your debt to total available credit – called credit utilization ratio – makes up about 30 percent of your credit score. Therefore, people with maxed out credit cards or high debt loads compared to their available credit will see their scores steadily sinking.
So, the first thing you want to do when improving your credit score is to pay down as much debt as possible.
It’s important to get your credit utilization ratio below 30 percent (so you only owe $3,000 or less on a credit card with a $10,000 available balance). Credit experts even suggest keeping a utilization ratio of 10% or less to achieve a great credit score. However, don’t go all the way to 0% because it won’t show an established payment history they can use in their calculations (since you won’t have any payment).
- Request a credit line increase.
Don’t have enough money sitting around to pay down your credit balances enough to raise your scores? Another sneaky-good way to improve your credit utilization ratio – without paying down one cent of debt – is to increase your total available credit. For instance, let’s say you had a $10,000 credit line but owed $4,000 (so your utilization ratio was 40 percent).
Instead of paying down your debt, if you could get the credit card company to increase your available limit to $15,000 from 10k, your utilization ratio just went down to about 27 percent – and your score would go up! To do this, simply call the credit card company or lender and make your case over the phone and they’ll either approve or deny your request or approve a lesser increase.
- Ask your creditors to remove late payments from your credit report
Did you know that you can simply ask your creditors to remove evidence of late payments from your credit report? Why not? It’s free for you to ask (nicely), and the worst thing they can say is “no.” Called ‘Goodwill late-payment removal,’ this practice is more common than you may think. In fact, any creditor has the power to remove a late payment from your credit report.
For instance, department store credit accounts and other retail accounts are usually pretty liberal with goodwill late-payment removals. They may do just that if you can make a good case that it was a one-time incident because you didn’t receive the bill on time, an address change, etc. and that you otherwise have a perfect record with them.
Once they tell you that the late payment is removed, ask for payment history update letter, which is your confirmation in case you need to present documentation to the credit bureaus.
- Pay for deletion of collections
Many of us have collections on our credit reports, which can do some serious and ongoing damage to your score But there may be a way to get it removed. If you’ve missed enough payments to have an account in collections, your creditors may agree to erase any negative credit reporting for that account if you pay it off.
The good news is that you can also negotiate your payoff, and if it’s in collections, they may accept less than the full amount to settle you up – sometimes even 50 percent of your balance or far less!
Once you negotiate the payoff amount AND they agree to remove the item from your credit report, only pay the collection via a mailed certified check, with “Cash only if you delete account from credit report” written above the endorsement line. Also, make sure you get their promise in writing via a letter of deletion. We can use the letter to apply for a rapid rescore instead for you, so you won’t have to wait a month or more to see your credit score rise!
- Dispute any errors on your credit report.
Most people don’t realize that credit reports often contain mistakes, misreporting, duplicate items, or outdated information. All of these things may be lowering your score, but they can also be removed. Start by contacting Nationwide Credit Clearing for a copy of your credit report, and we’ll help you review it carefully for any errors or inaccuracies.
By reviewing it line-by-line, we’ll be able to highlight inaccuracies or items that are lowering your score. Remember that there are three major credit bureaus and they each may report different information, so it might be a good idea to check all three. Look for errors on larger accounts first, length of history, payments reporting on time, and that your balances are accurate.
The last step is formally disputing each inaccuracy or error with each of the credit bureaus, Equifax, Experian, and TransUnion, separately. They are legally obligated to get back to you in a certain amount of time with proof that the information you’re disputing is correct – or they have to change it or remove it.
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If you have more questions about disputing items, how to boost your score quickly, or want a free copy of your credit report, contact Nationwide Credit Clearing!
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The 5 Factors That Go Into Your FICO Score
Your FICO® score is a major factor when it comes to getting approved for a loan or new credit. In fact, the Fair Isaac Corporation (FICO) is used by 90% of top lenders and banks around the country to help gauge whether you’re a good candidate for new credit, as well as the interest rate they’ll offer. In total, it’s estimated that FICO scores are used for up to 10 billion decisions about credit around the world each year!
However, FICO has closely guarded their credit scoring algorithms, so we don’t know exactly how their computations will raise or lower our scores. But the good news is that FICO does publicize the specific factors that play into a credit score.
“FICO scores give the most attention to how you have paid back lenders in the past,” says FICO spokesman Craig Watts, “and how much you are using of the credit available to you, as shown on your credit report. Those two factors contribute roughly two-thirds of a typical person’s FICO score.”
Let’s take a closer look at those five factors that go into your FICO score:
Payment History
35 % of your total FICO credit score.
The single most important factor that influences your FICO score is your record of replaying past debts. This makes perfect sense, considering that past behavior of paying off debts on time and in full is the biggest predictor of future repayment.
When it comes to your payment history, FICO looks at both revolving loans, such as your credit cards, and installment loans, like mortgages or student loans. In fact, we do know that your FICO score will drop more if you miss a payment on a large installment loan, like your home mortgage, over a smaller credit card, for instance.
To achieve a great credit score:
The single best way to improve your FICO or keep it high is to make all of your payments on time every single month.
Credit Utilization
30 % of your total credit score.
Almost as prevalent as payment history is your credit utilization, or the percentage of available credit compared to what you already owe. Creditors are wary to lend more to consumers who consistently max out their revolving accounts and consistently spend up to their limit without a buffer. Their research shows that these folks are more likely to miss payments or default in the future f they’re already constantly spending every dollar they have available as credit.
To achieve a great credit score:
Common advice is to keep all of your credit cards and revolving debt at around 30% of the total available credit. However, FICO’s research shows that borrowers with the highest credit scores tend to have a credit utilization ratio around 7 percent or so.
Length of Credit History
15 % of your total credit score.
All accounts aren’t created equal when it comes to credit scoring, with the accounts that have been open the longest helping your score more than recently opened ones. This factors into your length of credit history, as well-seasoned accounts are a better indicator of a consumer’s responsible payment pattern. Therefore, even if they’ve never missed a payment or done anything wrong, a borrower with only new tradelines on the credit report will never have a perfect score.
To achieve a great credit score:
Make sure to keep older accounts in good standing and think twice about paying off and closing any well-seasoned accounts (including with balance transfers), as it may hurt your score.
New Credit
10 % of your total credit score.
About 1/1oth of your FICO score is determined by what kinds of new credit you’re adding – and applying for. When consumers start applying for credit cards and other credit too often within a short period of time, it indicates financial desperation or risky spending patterns, and their score may drop accordingly. The exception is when borrowers are applying for a big purchase like a mortgage or auto loan, as it’s expected that they’ll “shop around” a little.
To achieve a great credit score:
Don’t apply for new credit frivolously, and mind the quality of the new tradeline, too. Just because every retail store, department store, and credit card mailer is offering you more credit, you probably don’t want to take it.
Credit Mix
10 % of your total credit score.
To show a healthy mix of credit and financial acumen, FICO looks for a mix of different credit accounts, including credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. If a consumer has all credit cards, for instance, it may indicate a risky imbalance, and their score would be dinged accordingly. FICO’s data has shown that if a borrower has a good mix of credit, they have a higher chance of paying on time in the future.
To achieve a great credit score:
Take a look at the type of credit accounts on your report and balance it out with an installment loan, paying off an unneeded credit card, etc.
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We now know the five factors that go into your FICO score, and what best practices to follow to keep a great credit score. However, your situation could be a little different based on what’s on your credit report and your credit history, so you should get help from a credit professional to maximize your score.
If you’d like help with your FICO score, contact us for a free consultation today!
Tips to Improve Your Credit Score this Year!
It’s the beginning of a brand new year and we wonder,, have thought about your credit score yet? A New Year means new opportunities for you financially! For those of you seeking a more financially secured life, take these tips, read them, and begin to implement them into your daily routine.
- Keep your credit card balances low. The most effective way to improve your credit score is to pay down your revolving (credit card) debt. Your credit utilization ratio accounts for 30 percent of your credit score. While you may hear that paying debt down to 30% of the available balance is a good mark, an ideal credit utilization ratio is actually around 10% or lower.
- Pay your bills on time.
- Don’t allow outdated or inaccurate information to remain on your credit report. If you see something incorrect listed on your report, you should take actions to have it removed.
- Sending your payments in early may also help your credit score. Different creditors have different report dates when they send the information to the credit bureaus.
- Check your credit report annually. It’s important to make sure that there are no errors on your credit file. A significant number of credit reports do have these errors, which can lower your score. These days, you also need to make sure that your identity hasn’t been stolen or compromised, which affects up to 1 in 8 Americans every year.
- Don’t be tempted by new credit card offers or take on new debt. You can have these solicitations stopped being sent to you by “opting out” of these offers.
- Paying off a collection will NOT increase your score. It’s not the balance, but the fact that the account went into collection status is what is essentially hurting your score. But your score will increase if the collection agency is willing to delete the account off your credit report.
- Don’t go without credit. You only have a credit score if you have an active credit history. Some credit scoring systems cannot calculate a score if no balance is reported to the credit history within the last six months.
- If you want a high score, do not pay all your debt down to zero. FICO calculates a significant portion of your score by your credit utilization ratio, so it’s important to simply keep them all under 30% of their limit
- Request an increase to your credit line. Then make sure not to use the excess credit because this will improve your overall credit % usage
- Add missing accounts to your credit report. A perfect way to build your credit is to add positive accts that are not currently being reported. Unfortunately Cell phone companies, Internet providers, utility companies, and medical billers are not required to and often don’t bother reporting credit. But if you ask them to do so, they sometimes will post a new but well-seasoned, positive new trade line to your credit report.
- If you’ve missed payments and have an account in collections, they will often agree to erase any negative credit reporting for that account as long as you pay it off in full.
- Call Nationwide Credit Clearing if you have any questions in regards to your credit or want to see how you can improve it. We’re the nation’s leader in credit repair, with our clients enjoying a lifetime of financial freedom
Nationwide credit Clearing has been the leader in credit repair for over 20 years. We can help anyone in the United States increase their credit score. Give us a call today to find out how it all works!
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
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How do Derogatory Items affect your Credit?
What are derogatory items?
Derogatory items are significantly damaging marks that show up on credit reports as a result of poorly managed credit scores or identity theft. Measures such as late/skipped payments can ultimately lead to the existence of derogatory marks on your reports. Each mark corresponding to a particular circumstance or outcome. Below are a few examples of several key derogatory items you should know about:
Charge-off: A charge-off is one of the worst marks a person can get on his or her credit report, as they happen when a lender determines that someone isn’t able (or unwilling) to pay off a debt they’ve been delinquent on for many months of payments. Although the lender determines the borrower is unable to pay, the lender is still able to legally demand payment entirely for as long as the state’s statute of limitations allow. It needs to be noted that it’s possible for charged-off financial debt to be settled for under its full worth, but credit reports will often note that the debt was not paid in full should this happen.
Collections: Sometimes debt goes to a collections bureau after a lender or service fails to receive payments. With this designation on your own credit report is quite severe; it is possible to work with a collections agency to make paying the money a bit easier. You can also negotiate conditions on your mark to disappear from your information completely once you make the agreed-upon payments.
Court Judgement: Judgements make reference to civil court rulings typically made against one person who owes money to someone else (similar to a lawsuit from a creditor or any other lawsuit regarding money). Since judgements are a case of public record, they could easily show up on credit reports.
Default: A default, particularly on certain kinds of loans (home, student, car), can create a serious problem on credit reports. Oftentimes, a default can be a precursor to several of the other items on this checklist, as it is one of the very first derogatory items that will show up on a past due individual’s credit report. For example, a default might appear onto your credit reports prior to the account being sent to collections. This is why it is extremely crucial to take non-payments seriously and address the problem that caused them right away.
Repossession: Repossession typically occurs when you default on a secured loan, i.e.. You presented something in collateral. If this occurs, everything you offered as collateral for this loan will be taken by way of the lender. This most frequently happens for mortgages and car loans, where the car or home you purchased with this loan is taken away. It’s worth noting that if the current amount of the repossessed item does not cover the entire remaining account balance on this loan, you might still be on the hook for future payments. These things are in no way an exhaustive list of derogatory marks; however they are several of the worst and most damaging, which is why you need to be aware of them.
How can I tell if my credit reports have derogatory marks?
The easiest way to find out if your credit reports include any derogatory marks would be to check your credit report & score. If you do not already know, federal law enables you to get one free copy of all the three of your credit reports – Equifax, Experian, and TransUnion – one time per year through most online services.
Can someone really improve their credit after receiving multiple derogatory marks?
If you do have any of the neg marks mentioned above, do not give up hope. While none of these issues is good for your credit, in time they will eventually just go away. Most derogatory items merely remain on your credit report for about 7 years, along with some having the potential to disappear even sooner. As your credit history grows, the weight that these items are specified also decreases, even if they are still physically found on your report. In addition, there is a whole lot that you can do to start building your credit again nearly immediately. Considering that most of these marks are the direct result of failed payments, working out a payment strategy to pay off any balances is a solid initial step toward restoring your own personal credit.
If you struggle with this, we encourage you to take a look at our top quality X5 Credit Repair system, exclusively from Nationwide Credit Clearing. If you or someone you know has derogatory items on their report, ones that should be disputed, please give us a call. We have been helping people for 28 years improve the quality of their lives simply by working with Nationwide Credit.
Money cannot buy happiness, but it sure makes living life a lot easier. Don’t Wait, Call Now!
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
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Secure a Solid Loan by Improving your Credit
Everyone knows that personal credit scores are crucial when it comes to obtaining a loan for a car, house, or anything that is a large purchase; however a business credit score is just as vital for small business loans. Understanding the ins and outs of building or regaining good credit may seem complicated, and here at Nationwide Credit Clearing, we want to help by providing you with these simple tips to be familiar with.
KEEP THE UTILIZATION % AT A LOW
The optimal proportion of utilization is 30% which means, if you have a $10K limit on your charge card, try to keep the exact balance below $3K. In a nutshell, you want to have a lot more credit available than you actually need. The more connected you allow yourself to reach your max amount, the higher risk you look like.
ORGANIZE MORE THAN ONE CARD
10% of one’s credit score will be based upon the mix of credit you ACTUALLY use as well as how effectively you manage them all, so be sure to have multiple cards open as well as spread utilization equally amongst them. Do NOT cancel your cards in an effort to improve your credit score. Your cards need to be kept open with a low utilization rate.
TIMING IS PRETTY MUCH EVERYTHING
Every time you submit an application, your credit score is checked. The greater number of applications you submit, the more reduced your credit score is going to b, unless you do all of your applying within a short period of time. Still, if all inquiries are set up within about 30 days or less, the reporting agencies will consider multiple inquiries as just one inquiry regarding a single purchase, so you want to keep your credit application window of this time as short as you possibly can.
MONITOR YOUR CREDIT SCORE OFTEN
Everyone is entitled to a free copy of their credit report from each one of the top 3 reporting agencies one time per year, meaning you can request a copy from a different agency every four months.
RECORD & TRACK ALL PAID OFF DEBTS
The more positive history you have of paid off debts, the better you look to prospective lenders, so make sure you keep those gold stars on your credit history as long as possible.
DON’T BE LATE
Your credit report doesn’t just cover credit cards & loan payments but it also includes every other payment you have made or are currently making. That unpaid $30 copay or electric bill will hurt you just nearly as much as a balance of $1k that hasn’t been paid on a loan or card (if it goes beyond 60 days that is).
Nationwide Credit Clearing recommends you check your report often and ensure you don’t possess unknown outlying debt..
If your credit score is not as solid as you would like it to be, start implementing these pointers and you will see your score begin to go up. Keep in mind, the right loans can in fact help develop your credit, and we can help get you there. Even though you may seem to have a hiccup and overlook a payment, do not let it discourage you. Pay the bill, and then keep moving forward; that dimple won’t be there for long.
If you still feel uncertain about how to even begin with these steps, Nationwide Credit is here to help guide you. We offer a free credit report and consultation. If it’s been a while since you have checked your credit score, please give us a call.
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
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How Can A Bad Credit Score Affect You?
When you make a purchase using your credit card, you are typically not thinking about the affect it will have on your future. You probably aren’t thinking of the purchase as a test of your personal integrity or reliability. You are more than likely thinking about that new television you are purchasing or how your new watch will look on your wrist. In contrast, your creditors don’t care how your new watch will look or how much joy your new television will bring you. They want to recover the money they lent you, with interest. Lenders do not like borrowers with elevated credit risk (the risk that you will not repay the money you owe). To determine your credit risk, lenders will rely on your credit score.
Your credit score is based on the information that is provided in your credit report. It will include data on past loans, foreclosures, credit utilization, bankruptcies, credit applications, and more. Credit scores follow a scale ranging from 300 (most risky) to 850 (least risky). Lenders will often times segment the score ranges into classifications such as A, B, and C.
Your credit score will affect more than just your personal finances. Credit scores influence many aspects of your personal and public life, even including situations that do not involve borrowing money. The following are situations that can be affected by a bad credit score:
- Getting approved for a loan will be difficult
- Higher rates and restrictive terms on loans that you are approved for
- Trouble renting an apartment
- Trouble getting a job
- Difficulty getting a mobile phone contract
- Higher insurance premiums
- Potential strain on your personal relationships with friends and family
Here at Nationwide Credit Clearing we will professionally assess your credit situation by procuring basic information that will allow us to obtain a copy of your current credit report. We will do this by a “soft inquiry” so that it will not affect your credit score. Our team of professionals will determine the best method of credit clearing to utilize on your case. Learn more about how we can help you!
Source: Money Crashers
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
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How Many Credit Cards Is Too Many?
You are at the register paying for a pair of new shoes at your favorite department store. The cashier asks if you would like to sign up their rewards program to save 10%. You are thinking who wouldn’t want to save 10%, of course you want to sign up. So you sign up for the stores credit card to get a discount on your purchase. Is that 10% off and a new credit card really benefiting you?
Stop and ask yourself if you really need another credit card. The more credit cards you have the greater chance you have of getting deeper into debt. It is important to remember that credit cards are not a form of supplemental income. The annual fees of the credit cards can also add up, so that 10% you saved will eventually cancel out.
Your credit score can also be negatively impacted by having too many credit cards. Which will in turn impact your ability to borrow money. Learn more about how a bad credit score can affect your life in our recent blog post (Little Known Causes for Bad Credit
In contrast, adding more cards can help your score by decreasing your credit utilization ratio (the amount of debt you carry compared to your available lines of credit). However, if you have a lot of credit cards with high limits and you go to a lender to take out a loan, the lender will take into consideration a situation where you ran those credit cards up and what your debt-to-income ratio would look like then.
So, how many credit cards is too many? There are people who are very successful using a single credit because it is easiest to manage one card. Having 3-5 cards is typically not a problem. But if you find all your credit card balances are increasing, that is a danger signal.
Source: CreditCards.com
If it’s been a long time since you have checked your credit report, give us a shout here at Nationwide Credit Clearing. Our Initial Credit Report and Consultation is Free of Charge! Call Today!
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
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