Credit scores

High FICO Score on Credit Report Obtains Positive Responses

Are you living life in the fast lane? And tired of keeping up with all your expenditures? Life is like that, sometimes you get what you want, and sometimes you don’t. And since this is a fact of life, is there anything you can do to improve your life?

Don’t be desperate; it’s not the end of the world. It’s but natural to incur expenses as you go on with your daily life. Most especially now that almost every price of an item you need is soaring high. This is one reason why people find loans, credit cards, and other credit transactions more attractive.

Transactions involving credit is not that easy to apply for, you will need to have a good credit rating based on your credit report. Your credit report holds your credit score, or formally known as the FICO score.

The FICO score of each person applying for credit is very important. This is usually the deciding factor for any company to approve your application for credit. This will determine whether you’re eligible or not.

You should not disregard your FICO score. This means that from the very start, you should have handled all your credit transactions in a good manner and pays your bill on time. If you’ve been living your life like this, then you can expect a high FICO score. Having a high credit score means that you have great chances in getting secured loans, credit cards, and the like.

A high FICO score indicates that you’re a low risk for creditors, which means that once they extend you a loan (or any credit transaction), you can pay off your dues on time.

FICO scores have different ranges. If you’ve scored 500-559, it means that you should start improving your score. 560-619 scores have great troubles in obtaining credit, and for you to have a decent score, you must get a score of 675-699. Scores from 700-719 can expect a favorable response when it comes to financing terms. For people having FICO scores from 720-850, a big round of applause for you, because you’ve attained the best score of all; you will certainly have no trouble in applying for any credit term.

Aside from the different score-range, the FICO score is divided into five categories: the payment history, the credit history’s length, amounts owned, new credit, and the type of credit that you have used. These categories have a direct relation to your credit scores.

Your credit report will contain information such as retail accounts, credit cards, mortgages, installment loans, unpaid accounts, bankruptcy, and other pertinent information regarding your history (on credit). You can’t lie because the records are pieces of evidence which proves your eligibility.

However, there are also times when some information contained in your credit report are not that accurate, so you need to check with the bureau along with your supporting papers at least once every year to have your records updated.

You are free to visit the bureau. In fact, three known bureaus gather credit reports. They are Experian, Equifax, and TransUnion.

The FICO score is your credit score, and remember, you must get a high score to have any application on your favor. One of the best ways to cope with your expenditures is through credit, so it is a must that you get a high FICO score. Be responsible with your finances.

Equifax Personal and Business Solutions: Your Credit Score Report is in Good Hands

The purchase of a new home, a new family sedan, or starting a business is some of the reasons why people take out loans. These assets could cost you tens to hundreds of thousands of dollars each, thus it will really be a huge financial burden to acquire these properties using cold cash. Taking out a loan (whether it requires you a collateral or not) will help you in making the purchases of these properties.

However, there are two facades in taking out a loan—its either you win and take it all or you lose and go home with nothing at all but a sad face.

Your success or failure in taking out a loan depends on a variety of factors, yet your credit score is the most significant factor whether you are eligible for the loan of your choice or not.

The rule is simple: if you have a good credit score, you have high chances of getting the loan of your choice. On the other hand, if you have a bad credit score, you have slim chances of doing so. Instead, your lender will provide you a selection of loans with a common base—high interest payments.

Before applying for any loan that you need, you must understand the role of a FICO credit scoring system, which is the standard for the credit score used by most lenders in determining how risky you are to be loaned money to. FICO (Fair ISAAC & Company) is the leading credit report agency that loan providers turn to with regards to credit scoring for any loan application. In other words, if you possess a bad credit history, the lenders will know your credit situation and decide on your loan application based on your credit history.

Here is the summary of the FICO credit score classification:

· If you have a credit score of more than 700, you are eligible for a loan with the best interest rate under excellent terms.
· If you have a credit score of between 640 and 700, you will be able to qualify for 125 percent of your preferred loan.
· If you have a credit score of between 600 and 640, you will be able to get your preferred loan without making down payment.
· If you have a credit score of between 500 and 600, you will be eligible to your preferred loan provided you are willing to make a down payment.
· If you have a credit score of less than 500, there is a slim chance that you get your preferred loan.

Once you determined your credit situation and you think you can secure a loan, you need to have a credit report to be submitted to your preferred lender. There are hundreds of credit companies that furnish reports to commercial lenders, but you might want to try the services offered by Equifax Personal and Business Solutions and see yourself getting approved for the loan that you have applied for.

Equifax Personal and Business Solutions compiles your credit reporting data from credible sources and creates a credit file, which will reflect to your personal credit history, including your FICO score. Through Equifax, you will be able to monitor your entire credit history and check for any inaccurate entries.

Realizing the need for an accurate and free-of-fraud credit reporting, Equifax is now offering online credit report services which have an easy and immediate access to 3 nationwide credit reports, customer care for any inaccurate credit data on your report, and daily monitoring of 3 credit reports with alerts for any changes that must be done.

With Equifax Personal and Business Solutions, your good credit score report is in good hands.

Credit Scores

Credit scores determine if someone gets approved or
declined on any type of credit.

In commercial terms, credit scores are defined as
numerical expression based on a statistical analysis
of a person’s credit files, generated by a
mathematical algorithm.

To be more precise, credit scores are determined on
the basis of the certain amount of credit a person has

His credit statements are compared with the accounts
of other people applying for credit to the same
financial body.

Bankers and credit card companies are termed as
lenders who use credit scores to evaluate the
potential risk while lending money to the consumers
and to alleviate losses due to bad debt.

Credit scores are being used by the lenders to
determine who qualifies for a loan and who does not,
at what interest rate, and what credit limits they
could lend the money to the person and in what time
and what interest they could get their refund back.

There are lenders who sometimes build or create
regression models that predict the amount of bad debt
a customer may incur.

But it is really difficult and hard to predict about
the debt return still it is done to have an idea in
the future if this person is a high risk or worthy of
future credits.

Lenders usually look for higher number as we have seen
that people with highest score get the lowest rate of

Different countries use different techniques to make
credit scores and similarity is found between Canada
and USA. But the system is said to be better in

Credit Scorecards

Credit scorecards are created with the help of
statistics. First, all past loan applications of
interested consumers are collected.

Then these applications are divided into two essential

The first one deals with the people who repaid their
loans in due time without much hassle.

The second one deals with those of the defaulted.

It is mandatory to compare the first group with the
second one to prepare an appropriate scorecard.

Credit scorecards provide a accurate measurement of
the likelihood that a customer will repay the credit
amount back in the allowed amount of time.

Logit or probit are estimation techniques which are
statistically used to predict the probability of
default of new clients based on this historical data

The default probabilities are then compared to a
« credit score. » This score will rank the potential
client by their height of risk without explicitly
identifying their probability of default.

It is to be noted that the procedure of credit scoring
was not always fit enough and it did have drawbacks.
Then newer and improved techniques were applied to
maintain this method of comparing credits.

These measures are: hazard rate modeling, reduced form
credit models, or logistic regression.

The essential differences from credit scoring involve
both the data base and the ability to calculate the
financial value of a loan, given its risk from a
credit perspective.

The data base includes all of the available
observations on both defaulted and non-defaulted
clients. This makes it much easier to see the effects
of macro-economic factors like stock prices, auto
prices, interest rates, and home values on the default
rates of retail loans secured by automobiles or homes.

Credit report

It’s really awesome to buy products without clearing
the full bill and keeping the transactions on the way.

But one must remember that while doing transactions in
credit they must keep an eye on the credit facilities
and must have their credit reports of the last

Credit reports tell us about the person’s details,
address, contact number, personal details, where
he/she works, social security number, and marital
status, descriptions about previous jobs, recent
positioning, income, debt, and length of employment
and also it contains other factual history of your
credit experience with the credit granter.

But on credit reports no records of arrest, specific
purchase, and medical records are kept. Credit report
are being sold out by the credit reporting agencies
where you are being evaluated for business, insurance,
employment and other purpose allowed by federal laws.

People can get their credit reports only by calling
the agency, there are three credit bureaus suppliers
Experian, Equifax, and Trans Union.

It is very essential to update your credit profiles.
If it is not updated then the agency couldn’t provide
the latest information to the bankers about your
positioning and it is duly needed to maintain

If there are errors in your credit repot one can
straighten them out by going to the agency that
reported the bad report and the agency is bound to fix
the problem, as long as the debt has been cleared.

Always have your paid statements ready as well as your
returned checks or credit card information to verify
any payment made.

Credit Repair Tips

In some cases, bad credit is a result of irresponsible money management. But it often occurs because of unexpected financial hardship. One day you might have all of your bills current, and the next you could become disabled or lose your job. And if you fall behind on your debts, it will wreak havoc on your credit rating.

Credit repair agencies claim that they can remove bad entries from your credit report. But did you know that you can often have them removed yourself at a much lower cost? There are two methods by which you may be able to get negative entries removed from your report.

Option #1: File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. If the information is found to be false, inaccurate or unverifiable, it must be corrected or removed from your report. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation.

If there is any inaccurate information on your credit report, a dispute is certainly in order. But some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed.

If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. No explanation is required. But keep in mind that if the entry is verified, it will remain on your report. And if the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry as long as they notify you at least 5 days before doing so.

Option #2: Negotiate with Creditors

Dealing with creditors can be intimidating, especially if you’re not on good terms with them. But speaking to your creditors directly may help you get negative information removed from your credit report.

If you only have a late payment or two on your account, a creditor might be willing to remove the derogatory information once you’ve resumed a regular payment schedule. If you’ve experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative entry. It sounds like a long shot, but you never know until you ask. Requests to remove late payment information may be made after you’ve brought you account current. But if you’re hoping for removal of a repossession or collection action, it’s best to negotiate a deal before you pay anything.

If You Can’t Get the Bad Entries Removed

There is no guarantee that disputing information on your credit report or negotiating with creditors will get negative items removed from your record. If it doesn’t, the best thing you can do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild good credit is bring past due accounts current. Try to work out a deal with your creditors to accomplish this, or talk to a credit counseling agency. But don’t miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, keep the current account current.

Once you’ve brought all of your accounts current, put a priority on keeping them that way. Making your payments on schedule will raise your credit score, and with the passage of time, the good entries may outweigh the bad.

Credit reference

Credit is granted when an organization or an
individual makes money enough to give its customers
some of it to borrow. There are mainly two kinds of

a) Home loans, or mortgages, and personal or shop
loans are linked to a specific item or items and

b) Revolving credit on payment cards can give an
individual access to a fixed amount of money that he
or she can spend as he or she wishes, in a wide range
of retailers and other outlets.

Credit reference can also be referred to as credit
history. It is handy information, which holds the
creditors personal information, be it of a person or
an institution or an organization.

It provides dealers an account of credit applicants’
past credential dealings in order to make a more
accurate decision.

Credit rating agencies essentially play this role in
while working with consumer credit. Potential lenders,
that is individuals or organizations or institutions
that are interested in investing their money, consult
with established credit rating about appropriate

These initial talks are necessary for it decides
whether the said person, organization or institution
is reliable enough to be granted credits.

Credit references helps to assess whether if an
applicant’s credit history indicates proper, timely
payments on all outstanding obligations.

A lender would be able to judge all by himself whether
that the applicant will make timely payments on the
requested loan or not.

Credit references also indicate the applicant’s bank
account, what type of account it is, mentioning at the
same time about overdrafts.

Credit Rating Agencies

Nowadays a country’s financial growth depends on how
much its citizens invest and its annual expenditure
and profit.

Giving credit has always been in fashion, for it
brings in good money to the potential lenders.

In the same way it allows consumers to have means to
participate largely into the country’s financial
benefits in this enormous money play discipline in of
utmost importance.

Credit bureaus maintain credit records and likewise
Credit rating agencies determine the appropriate rates
according to which consumers and lenders work out
their dealings.

Credit rates provided by credit rating agencies
function as guidelines in such cases. The issuers are
companies, cities, non-profit organizations, or
national governments issuing debt-like securities that
can be traded on a secondary market.

It is obvious that credit rates are never the same for
everyone. They are set on the basis of risk-based
pricing. Risk-based pricing is a way of price
differentiation based on the different expected costs
of different borrowers, as set out in their credit

There are more than hundred credit rating agencies
around the world. The top listed credit rating
agencies that assign credit ratings for corporations
include the following:

* A. M. Best (U.S.)

* Baycorp Advantage (Australia)

* Dominion Bond Rating Service (Canada)

* Fitch Ratings (U.S.)

* Moody’s (U.S.)

* Standard & Poor’s (U.S.)

* Pacific Credit Rating (Peru)

* Egan-Jones Ratings Company (U.S.)

Credit rating agencies are not spared from criticism,
for their inability to downgrade countries readily
enough and also supprting unscrupulous company

Credit history

Credit according to the financial experts, is a
contractual agreement in which a borrower receives
something of value at a particular point of time and
agrees to repay the lender at some later date.

Credit is believed to determine the borrowing capacity
of an individual or company. Credit history is the
record of someone or their organization’s financial
dealings based on credit.

It is an account of their past borrowing and repaying.
It also contains facts about late payments and
bankruptcy, if there is any.

A credit reputation can also be used as an alternative
to credit history. Credit history is generally
maintained by credit bureaus set up in several

When a customer interested in obtaining credit applies
for credit from a bank, whether it is a nationalized
bank or private bank, his personal inputs are
forwarded to these credit bureaus.

From time to time these bureaus updates the status of
the credit holders’ accounts, cross checks their
personal information, like their address or contact
numbers and records even the change of names, if there
is any.

All these detailed information are required to
understand the applicant’s credit worthiness. Moreover
these records are maintained to keep tract of the
person’s whereabouts and also to make sure that he
pays his debts in the stipulated period as mentions in
the credit related agreements.

Credits and associated financial dealings help in
boosting a country’s financial growth. Credit history
further helps to determine annual percentage rate of a
country’s financial dealings.

Although it’s hard to keep your credit record clean,
in today’s world it is almost mandatory.

How to Create a Family Budget

For singles, creating a budget is relatively easy. They tend to have a good handle on how much money they have coming in, and when tracking expenses, they only have their own to think about. But creating a family budget is a whole new ball game.

Most families have multiple sources of income. And when there are multiple spenders, that makes things much more confusing. This is one of the main reasons that families lack a formal budget. But having a budget and sticking to it can greatly improve a family’s financial outlook.

Making a family budget may be tricky, but it can be done. Here’s how.

1. Take inventory of all income. If a certain source of income fluctuates from month to month, use the lowest amount or average it out.
2. Keep track of all expenses for a month or so. Keep all of your receipts, and ask all family members to turn theirs in to you each day.
3. Add up your monthly expenses. Be sure to include bills, debt payments, groceries, and everyday expenses such as lunch money and transportation costs.
4. Get the family together and discuss ways you can trim the budget. Getting input from other family members will help you determine which expenses are necessary and which ones could be cut down or eliminated. Maybe you or your spouse could start taking lunch to work instead of eating out, or maybe the kids can drop an extracurricular activity.
5. In addition to individual expenses, discuss how you can cut down on the electric bill, groceries and other necessary family expenses. Consider such things as carpooling or taking public transportation, buying more generic foods and adjusting the thermostat.
6. Estimate how much you can save on regular expenses, and cut the completely unnecessary items out of the budget. Then refigure it and see where you stand.
7. If you end up with a surplus, allocate a portion of it to savings. If you’re in the red, go back and rework the budget until you have more income than expenses.

Being Realistic

One reason that family budgets often fail is because they’re just not realistic. It’s great to cut down on expenses, but sometimes we tend to go too far. For example, cutting entertainment out of the budget completely might look good on paper, but we all need a little diversion every now and then.

Instead of cutting such things out of the budget completely, consider finding ways to lower the cost. Going back to the entertainment example, maybe you’ve been going to dinner and a movie as a family twice a month. But eating in and renting a new release would be much cheaper, and you would still get to spend quality time together.

Individual expenses can also be tricky. This can be resolved by allocating a certain amount for each family member to spend each week. If someone spends his entire amount before the week is up, reevaluate his expenses and adjust if necessary.

Creating a family budget can help keep spending under control, leaving more money to pay down debts and save for future goals. But in order to succeed, close monitoring is essential. Your efforts will be rewarded, however, with less financial stress and more money in the long run.