NO CREDIT HISTORY?

No credit cards and paying cash for everything does not give you a good credit history. It gives you no credit history. You can build up your credit history if a friend or relative is willing to share a credit card with you and add you as an authorized user onto their accounts. You can also put utility bills and other accounts in your name if if someone else pays the bill.

Credit Use

Apart from removing incorrect information from your credit report, you can start repairing or rebuilding your credit simply by improving your credit behavior. Start by making sure you pay your bills on time every month, as this is the single biggest factor in you credit score. Paying off any credit card debts will also help you increase your score. If you dont have funds available to pay your bills, you should talk to credit counselor as you may need to employ more serious optings such as debt settlement or bankruptcy.

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WHEN TO PAY OFF AN ACCOUNT BALANCE

Paying off a loan may have a negative effect. Often lenders require an applicant to have at least 3 open, active accounts for 24 months or longer. If the loan is paid off it doesn’t count as one of the 3 accounts. However, if you pay off a loan, your credit history is updated to reflect that and stays on your report for 10 years. Negative information stays on your report for 7 years.

Effect of Inquiries on your Credit Report

For large purchases, i.e. mortgages or auto loans, when shopping around for the best quote, try and arrange for all inquiries to be made within a 15 to 30 day period. They will have minimal negative impact on your credit report if they are all within a short time of each other.

How much does bad credit cost?

If you purchase a $20,000 car over five years, mildly damaged credit will cost you $4,722.54. Poor credit will cost $8,593. If you purchase a $100,000 home over 30 years, mildly damaged credit will cost you $50,155.24. Poor credit will cost $130,791.63. If you pay $10 a month on a $500 balance on a credit card, poor credit will take 14 years and cost $1,174.36 in interest.

Why cant you just pull or order my credit report for me?!?

Beware of companies that do!
A company or individual must have a "permissible reason" for pulling a consumer credit report such as judgment/collectons, extension of new credit and employment screening.

WHAT IS CREDIT HISTORY

A history of debt is not credit history. The distinction makes a big diffrence. It means using a credit card and paying off the balance each month. It does not mean racking up a lot of credit card bills. Credit and debt are not the same thing.

ARE CREDIT PROBLEMS HOLDING YOU BACK?

If you are having credit problems and cannot get approved for credit for the things you really want and need, you could give up or put everything on hold while you wait for your credit to fix itself. But there is a better way. Call Banco Capital to find out how we can help you. 1-800-442-1591

YOUR CREDIT SCORE

A low credit score is not the end of your financial world. Discipline and responsibility can help rebuild even the lowliest of scores. Paying more than the minimum, reducing the number of cards in your wallet, negotiating a payment plan and taking advantage of the comments section on your credit report can all help boost your score and improve your odds of success the next time you need a loan.

Boost your credit score

Increase your credit score by a least 20 points or more in a single month by following these 7 rules
1.Pay recent past dues on the accounts that recently fell a month or two behind.The more recent the late payment the more it will lower your score.
2.Request good faith adjustment by contacting the creditors who report late payments on your credit report ask them to make a good faith adjustment to remove the late payment information from your credit report files.
3.Pay collection that agree to vanish:Pay off accounts where the collection agencies agree to remove all references to the accounts from the credit bureau.
4.Spread Debt evenly: Evenly spread your balances over your cards with the lowest interest rates and the highest credit limits.
5.Report credit limits: Some of your credit accounts may not report the credit limit to the credit bureaus. Ask the creditor to provide this information.
6.Keep the right credit: Major bank credit cards, held for a long time with good payment histories help boost your credit.
7.Limit new accounts Many people open new department store credit around the holiday. To receive additional money off their purchases, These accounts hurt your credit score.So after you use the card promptly pay these off and close them.

BENEFITS OF GOOD CREDIT

1)Get a mortgage at an exceptional rate, 2) Get approved for the apartment you want 3) Open a new new credit card 4) Finance big ticket items instead of paying up front 5) Save hundred of dollars by paying less interest.

ABOUT YOUR CREDIT SCORE

Paying your bills on time does not automatically raise your credit score. It is only 35% of the total points. Carrying a balance is not always good if it is more than 15% of your overall limit. HR cannot see your credit score, only your credit report. Only lenders have access to your score. Short sales and foreclosures have the same effect on your score. Bankruptcies stain your score for 7 years, but your score improves as the item gets older.

CREDIT SCORES MATTER

If you have a good credit score you were probably asked for a smaller security deposit where you currently rent. What did you borrow from your landlord? The right to live in that apartment. Don't let a late payment cost you a job. Prospective employers are allowed to use your credit history to decide whether or not to hire you.

5 Keys to unlocking a better credit score

Sometimes people get in over their heads. They rack up some much debt that they're unable to make consistent interest and principal payments and when you're late or unable to make payments, your credit rating suffers. These 5 tips will help you raise a bad score and win favor .
1.Pay more than minimum
2.Work out plan
3.Switch from Credit to Debit cards
4.Cut up those store cards
5.Add comments to your credit report
Discipline and responsibility can build even the lowliest of scores. Paying more than the minimum,reducing the number of cards in your wallet,negotiating a payment plan and taking advantage of the comments section on your credit report can boost you score and improve your odds of success the next time you need a loan.

THE PERFECT CREDIT SCORE

Why? A high score says you're responsible, trustworthy, and in control of your life. A perfect score is 850. Payment history is the single most important factor. Next percentage of what you owe to how much credit is available. Your mix of credit is important, i.e.,mortgage, credit cards, and auto loans.

WAYS TO WRECK YOUR CREDIT SCORE

Do not settle past due debts to play less than you owe. Recent information is more important than past mistakes. Do not transfer balances from a high interest card to a low interest card because new accounts decrease your score and it reduces your debt to available credit ratio. Do not close old credit cards because creditors like to see a lot of available credit. Do not pay off your mortgage because it provides a necessary credit mix. Do not avoid credit altogether. The ideal number of credit lines open is between 6 and 21.

KEEP YOUR CREDIT SCORE HIGH

Cancel excessive credit cards and lower your available credit and usage ration. The longer you have had an account, the better. Multiple request for credit means you're a greater risk. Squeeze all your inquiries into the same 45-day period and they count as a single inquiry.

YOUR CREDIT SCORE

A credit score of 680 has been devalued in favor of scores of 720 or more. Scores range from 330 to 830 and the average is 698. A score of 619 is considered subprime and a score of 770 or more is considered top tier. Each lender however has their own "break point" between tiers because the tier system of credit scores can be fickle.

Asscess Your situation

Before you even start to think about rehabilitating your credit, make sure that you can pay your bills on time and not do any more harm. If keeping up with your credit card bills is still an issue, then call the issuer,explain your situation and try to negotiate payments you can afford. Ask the issuer how that will be reported to the major three credit bureaus: Not paid as agreed, which can hurt your score? Or will the new terms say that you are now paying as agreed

Heal a Wounded Credit Score

Before you begin, make sure you can pay your bills on time and not do any more harm. Payoff credit cards, but not installment debts. Get your debt down to 30% of your available credit. If a credit card ends up in collection expect to lose between 80 to 150 points from your FICO score. A short sale or foreclosure can drop your score 200 points