salena asked:
I want to get a frequent flyer credit card but I already have 3 credit cards with generous limits. I don’t need these credit cards and I would like to cancel them and have this “possible credit” to go towards the new card. I heard once that canceling a credit card has a negitive effect on your credit score. Is this true? If so, how do I switch credit cards and avoid affecting my credit score in a bad way?
GLENN
nedra asked:
I just turned 18 in the end of October. What would my credit score be now? What does it start out as? What is the eastiest way to build your credit score? How long does it take to build your credit? Do you get points per month or what?
NUGENT
Carey Snow asked:
Your FICO or credit score is an overall evaluation of your financial health that helps lenders determine your creditworthiness. Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other types of credit. Higher credit scores mean you are more likely to be approved for most kinds of credit and pay a lower interest rate for that credit.
Your credit score can come between you and many things in life. Since a FICO score is the excepted standard for many companies, a low score will mean you have to pay higher interest rates, if you can get a loan at all. It can also mean that you will have to pay higher deposits for utilities such as telephone, electricity, cellular phone plans and many other services. While this may not seem fair to most consumers, it is done by companies to determine whether or not they can rely on you to pay your bills on time.
Typically, those with a lower credit score have issues with paying their debts, or paying them on time. This indicates to companies and banks that the person is probably a high risk case and if they do decide to approve the loan or service, they must protect themselves from that risk by charging more. It is an excepted practice that can restrict or impede the lives of many people.
Your credit score is a valuable asset for many reasons. A very good score allows you to obtain credit more easily and at lower interest rates. But a high credit score can also help you qualify for a cell phone, avoid or reduce a deposit paid for utilities for your home or apartment, and get lower insurance premiums. Your credit score may also be used by potential employers and landlords as a screening tool. Your credit score is very valuable, and you should treat it like the asset it is and always work on improving it.
Three quarters of all lenders use FICO scores when considering requests for loans or credit. To enhance your chances of being approved for any type of credit and get the best interest rates, your score should be 720 or higher.
Lenders look at your credit scores all the time. They look at your scores when deciding, for example, to extend credit to you, or whether to change your interest rate or credit limit on an existing credit card, or to send you an offer through the mail. Having good credit scores makes your financial transactions much easier and can save you money in lower interest rates, lower insurance premiums, and reduced deposits or down payments. That’s why your credit score is a vital part of your financial health.
You should be ever vigilant in achieving and maintaining a high credit score to enhance your chances of obtaining the credit you may desire. Watch for future articles regarding one of the most important financial assets you possess, your credit score! For more information about why your credit score is important check out this site http://GetMoreCreditScore.com/info2.
RUST
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Lisa Nichols asked:
Your credit history and credit score have a major impact on your life. A credit history follows you no matter where you live, work, do your banking or apply for credit cards or loans. A credit score varies in range from 300 to 900. The national average for a credit score varies, but is usually around 692, says Experian Information Solutions, Inc. Learn more about what impacts a credit score, the short-term and long-term effects of a credit history and ways to improve a credit score.
What Impacts a Credit Score
Many events and activities impact a credit score. Approximately 35 percent of a credit score concerns payment history. Outstanding debt makes up 30 percent of the credit score. The credit history length comprises 15 percent. Ten percent of a credit score is based on inquiries. The last ten percent of a credit score concerns types of credit. Traditionally, information from credit card companies and lenders made up most of the information that impacted a credit score. More frequently, however, cell phone carriers, energy companies and other service providers now report payment information to the credit reporting agencies.
Short-term and Long-Term Effects of Credit Scores
A credit score has a number of short and long-term effects on your life. Getting denied for low interest credit cards or loans and not getting the best loan rates are common short-term effects of having problems in a credit history. A problematic credit score can also have a number of long-term effects on your life. Problems in a credit history like bankruptcies, judgments or collections don’t just go away. Hiring companies, landlords and insurance companies are just a few of the companies using credit histories or credit scores to determine eligibility.
Ways to Improve a Credit Score and Establish Credit History
There are a number of ways to improve a credit score and to establish a solid credit history. A free credit report is available to everyone annually and can be helpful for pinpointing mistakes or suspicious activities. A solid credit monitoring program includes ideas for ways to improve a credit score. A “poor credit” credit can help establish a solid credit history. Prepaid phone cards can also help improve a credit score.
MCINTOSH
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SeaShells<3 asked:
What is the most significant component of your credit score? What percentage does it add to your total credit score?
NEWKIRK
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