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reliable information on credit cards - online investing - personal loans - owning and operating your own home business. indepth information from professionals in their field. dont forget to check out our links to the best sources on the internet, these days information and research is critical to making the best educated decision to suit your needs.

Tuesday, June 27, 2006

Credit Score, Exactly what is it and how do you determine it?



Credit history have you confused? Every one puts such a huge importance on your credit score. Why is this credit score so important? And how is it determined?

Your credit score is based on multiple variables that are dependent on your credit and amount of money loaned out to you. Your credit, or more appropriately addressed as the ability for you to pay back the money that has been loaned to you, whether it be through a credit card, mortgage, home equity loan, car, RV, boat, motorcycle, rental apartment or town home, or just about anything that involves you paying back money trustingly for the items you have purchased or pay for on a monthly basis.

When your credit score is accumulated, each item is passed through a system where points are either awarded or deducted based on the status of the terms. For example, if you have a specific amount in a loan, and you are paying consistently and on time, then you will be awarded points. However, if you are late on payments, and have many credit cards close to maximum, perhaps have not made every house, car, or RV payment, on time, then you will be deducted points.

The computer program evaluates the awarded points and deducted points to come to a total. This total can range from around 330 to the lower 800's. This score is used to evaluate if you can make your payments and on time.

There is usually a clear relationship between those with a higher score and those with a lower score. Those people with a higher score, above about 680 are capable of paying back the loans that they take out. However, those who have a score below 680 are less capable of paying back their debts on time.

Lenders use this information to determine the terms of your mortgage when buying a home. I f your credit score is up to par, you can expect a lower interest rate, shorter terms, and less fees. However, if your credit score is below the average, then you can expect to have a higher interest rate, more fees, and possibly more expenses that are associated with the lender taking a greater risk with a person that may not be capable to pay back the mortgage in a timely basis.

So as a result, your credit score is a huge influence in the mortgage terms that you can qualify for. Because of this, you should try to clean up your credit score to the best of your ability. This means paying back loans, paying on time, and closing out any credit cards that are not necessary in your financial situation.

There are many things that actually affect your credit score. Keep in mind that if you pay on time and are on top of the debt that you have, having some debt and credit is a beneficial thing. If you can prove that you can handle debt, and pay on time and towards the principal amount, then you will not have as many problems.

If you have too many delinquencies, a short credit history, too many revolving accounts, too few revolving accounts, balances that are close to maximum, too many accounts, and of course major problems such as tax liens, judgments and bankruptcies, then you can expect your credit score to be lower than average.

In order to repair these credit issue to get the mortgage rate that you deserve, be sure to handle any debts or payments that might deduct points from your score. Pay above the minimum, on time, and you will quickly see your credit score increase as the problems are depleted.

The basics for having a decent credit score is to not have too much debt, pay your debt on time, and not have too high of interest rates! If you feel you need to correct some issues on your credit score, then do it! You can end up saving thousands of dollars! Do not buy a home until you are financially stable and capable of maintaining a house. You do not want to take on something that you can not handle financially.

-->by: John R. Blakefield

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Personal Loans And APR � Is That All That Matters?



The advice from financial advisers has always been, if you are thinking about taking on new loan or any type of credit agreement, shop around. These days, there is such intense competition among lenders to get your business, that special offers and extremely low interest rate loans are always on the market somewhere, if you are willing to search them out. It is also worth checking out less well known lenders and not just the high street banks, as some of the best deals around will be from these lenders.

The government has sought to facilitate this by providing a standard benchmark figure that can be used to price loans from different lenders. This figure is the APR, or annual percentage rate for interest on the loan. It is calculated in the same way by all lenders and should give you an accurate and fair view of the real cost of any credit you take on. So for instance, if a credit card is tempted to tell you that they only charge two per cent interest, they will have to tell you that this is their monthly rate, and the APR is in fact, something more like twenty eight per cent.

However, the APR is not the only thing that you will have to check out when you are shopping around for credit. There are many other very important factors that will also effect which credit offers are the best deals. For example, as well as interest, it is possible that a loan will include other fees that do not go into calculating the APR. Some loans, especially mortgages, incorporate arrangement fees or set up fees that you will also have to take into account. Many other loans will have early termination charges that are added to the bill if you wish to repay the loan early.

Flexibility is also a consideration and you may want to check if over payments, or repayment holidays are permitted on your loan. This means that you can put a little extra against the loan when you come into extra money, or take a break from payments if you lose your job for example. This is very important in long term loans such as mortgages.

Some credit cards will also offer you low APRs but then charge very high penalties if you miss a payment. Others will offer you low APRs but only for an introductory period, after which the APR jumps to a higher level. You should be aware of these types of offers. Even zero per cent balance transfers can be subject to a balance transfer fee, that in effect means you are paying for the balance transfer, and it makes little difference to you whether it is as interest or as a fee.

-->by: Joseph Kenny

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Structured Settlement Annuity

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cardcreditdebtreduction

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