When you are purchasing a new home, a car, or taking out a loan for special needs you will need to have good credit. Your chances of qualifying for a loan increase when your credit score is high. Many unforeseen circumstances can cause you to face financial hardship which can in turn lower your credit rating. If you have a low score you can still take some measures to improve your credit score.
Unfortunately, in today’s financial climate, it is not unusual for anybody to find themselves struggling to keep their head above water. When your credit rating has dwindled to the point that you aren’t even sure if you’ll be approved for a payday loan, you know you’re in trouble. A credit rating is no longer just something that people look at to decide if you will pay the loan on a car, now it is as if your credit history shows everyone whether or not you can be trusted at all. So it’s not hard to see why people have started to equate their own personal value with whatever is stated by the credit companies. Some will even try bad credit lenders and see if it would help.
My friends were laughing at me when I said I could settle credit card debt and get out of the hole that I had dug for myself. After my wife was sick, I had all of these bills that I have paid with the credit cards. And frankly I have also used the credit cards to pay living expenses because I was having to spend much time away from my work. I’m not there, I don’t get paid.
In the middle of an American economic crisis, and every other industry seems to be cutting back, one seems to be growing rapidly: the debt collection! You heard right! According to one recent study that was conducted as of late, more than fifty five percent of the collection agencies questioned plan to add to the amount of staff that they already employ this fiscal year.
I sit at my desk completely frustrated with Advanta. I opened up a business credit card with them 3 years ago and made a purchase of $6500 to help build my business credit for Rapid Recovery Solution, my Collection Agency. I have paid more then the minimum every month, on time. November 2008 I noticed that my interest rate seemed a little high. No where on my statement did it say the actual interest rate so I called the company. After 10 min or so I get a live rep on the line and they tell me it is 36.1%. Are they kidding, this must be a mistake. I have over a 750 score and never missed a payment. They said they sent me a notice in Aug that they are doing this due to a change in there lending methods. It turns out this is the second time this year they did this. I went from 8.99% in Jan 08 to 18.99 in Feb 08 to 36.1% in Aug 08.
On February 22nd, 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act took effect. The CARD Act had one major purpose: to attempt to harness in credit card practices and set limits to the fees that credit card companies charge consumers. It was designed with credit card holders in mind, limiting the amount of credit made available to them in this recession “for their own good.”
In the last article in this series I described how long different marks remain on your credit report. I wrote that mistakes will be removed instantly, soft inquiries will have not have an effect, and hard inquiries can hang around on your credit report for two years. Late payments, on the other hand, have the capacity to do way more damage.
In tough economic times, it may possibly appear tough as well as not possible for any young individual to acquire their initial credit ratings card. Nevertheless, it can nevertheless be accomplished reasonably very easily and rapidly in the event you know the appropriate organizations to utilize with.
There is no absence of credit cards to choose from but how do you decide which card is right for you? You could choose from the many offers that come in the mail, appear in your e-mail box or you find online but you’re going to have to go hunting for some of the best deals. Here are a few pointers to help you choose:
As of 2009, bankruptcy filings that were new increased by over thirty five percent in only one year. Although it may seem like a dismal sign, one good way to look at it is that all of these people are on their own paths to rebuilding their credit scores and ultimately, financial freedom. We have all seen the commercials with “people just like you and me” prodding us to visit whatever website and find out what our credit score is. We know that if the number is high, it’s a good thing. It it’s low, it could mean trouble finding a loan, getting a job, or a new place to stay. But just what is a credit score?
