Insurances.net
insurances.net » Small Business » Basics of Credit Reporting
Home Business Small Business Wholesale Business Business agency Global Economy
]

Basics of Credit Reporting

Basics of Credit Reporting

Author: Mike London

How Does It Work? Your credit history is a reflection of how well youve managed your finances and repaid your debts over time. Credit reports from millions of borrowers are compared against each other using a computer program that analyses similarities, assigning a score report with weight given to varying factors. The score predicts how likely it is that you will repay future debt. Factors Affecting Credit Rank - Payment History (35% - Amount of Debts Owed (30% - Length of Credit History (15%)| - Recent Credit (10%) - Types of Credit (10%) Keep Your Debt-To-Income Ratio at 20% Creditors look for evidence that your monthly payments on non-mortgage debts take no more than 20% of your net (take home) monthly income. This is known as your debt-to-income ratio. Credit History Your credit history is pulled together into a credit report issued by three companies: Equifax, Experian, and Trans Union. These companies in turn, sell your credit report to lenders so they can review your past credit history. Your credit report and credit score often vary somewhat from one company to another. Therefore, its important to regularly monitor your credit report from all three companies, checking for any inaccuracies. What Included in Your Credit Report - List of Debts, - Credit Cards, Car and Mortgage Loans - Collection Items, such as Phone/Utility/Medical - Public Records Tax Liens, Bankruptcies - Credit Inquiries ( An inquiry is made every time you request credit) The Cost of Credit - Monthly Payments and APR The Truth in Lending Act requires lenders to disclose the Annual Percentage Rate (APR), on loan transactions. The APR is the amount you will pay in interest charges per year. When looking at borrowing, consider how much the interest will cost, in addition to the loan amount and your ability to repay. The lower the rate, the better. The Bottom Line A good history will enable you to borrow more money at a lower cost. Try to pay your loan balances on the statement date, rather than the due date and have as much credit extended to you as possible,(this doesnt mean you have to use it). About the Author:

Get Your Free Credit Report and Score by visiting http://www.trysmartcredit.com.

Click trysmartcredit
How Much Debt Should You Have For Debt Consolidation? Why Consider Online Personal Loans? Logistics Management Features TraceGains How Many Credit Cards Can You Get Into Debt Consolidation? How To Succeed In Your Melaleuca Business How Debt Settlement Companies Can Assist You The Mortgage Loan Modification Process - How Does it Work? Stop Foreclosure Assistance - Getting Help With Loan Modification Stop Foreclosure After a Failed Negotiation with Your Creditors I failed to make money from Twitter and Facebook until I started to understand how it works properly Refinance to Stop Foreclosure Instead of Loan Modification? How To Create An Info-Product For Your Business Recession Proof Small Businesses!
Write post print
www.insurances.net guest:  register | login | search IP(44.212.39.149) / Processed in 0.011981 second(s), 6 queries , Gzip enabled debug code: 6 , 2391, 146,
Basics of Credit Reporting