et Your Credit Score To Soar In The Twinkling of An Eye.Written by Omar M. Omar
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·How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score. Scoring models may be based on more than just information in your credit report. For example, model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home. To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It's likely to take some time to improve your score significantly. How reliable is credit scoring system? Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, credit scoring systems must be based on a big enough sample. Remember that these systems generally vary from creditor to creditor. Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed. And many creditors design their systems so that in marginal cases, applicants whose scores are not high enough to pass easily or are low enough to fail absolutely are referred to a credit manager who decides whether company or lender will extend credit. This may allow for discussion and negotiation between credit manager and consumer. What happens if you are denied credit or don't get terms you want? If you are denied credit, Equal Credit Opportunity Act requires that creditor give you a notice that tells you specific reasons your application was rejected or fact that you have right to learn reasons if you ask within 60 days. Indefinite and vague reasons for denial are illegal, so ask creditor to be specific. Acceptable reasons include: "Your income was low" or "You haven't been employed long enough." Unacceptable reasons include: "You didn't meet our minimum standards" or "You didn't receive enough points on our credit scoring system." If a creditor says you were denied credit because you are too near your credit limits on your charge cards or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time. Sometimes you can be denied credit because of information from a credit report. If so, Fair Credit Reporting Act requires creditor to give you name, address and phone number of credit reporting agency that supplied information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down for credit. The credit reporting agency can tell you what's in your report, but only creditor can tell you why your application was denied. If you've been denied credit, or didn't get rate or credit terms you want, ask creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and best ways to improve your application. If you get credit, ask creditor whether you are getting best rate and terms available and, if not, why. If you are not offered best rate available because of inaccuracies in your credit report, be sure to dispute inaccurate information in your credit report.© Copyright - www.deleteuglyredit.com
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
| | Don't Let an Illness or Unemployment Cost You Your HomeWritten by David Miles
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If you fall behind with your mortgage repayments and cannot repay debt, you could end up losing your home. That's why Council of Mortgage Lenders encourages all mortgage borrowers to consider taking out mortgage payment protection insurance - also known as accident, sickness and unemployment (ASU) cover. This type of protection will help you to cover your mortgage repayments and any associated insurance premiums for up to a year if you are unable to work due to unemployment, accident, or sickness. - You choose amount of cover you need per month - You choose type and level of cover required - You choose how long you want to wait before claims are paid - You pay a low monthly premium - The policy pays a fixed monthly benefit for up to 12 months if you are unable to work due to accident, sickness, or unemployment. You will normally be able to make a claim if: - you have lost your job in circumstances beyond your control - e.g. redundancy - and are registered as unemployed, or - you are unable to work due to a disability/illness and you are under regular care of a doctor or consultant. For more information on protecting your mortgage repayments, visit UK Mortgages & Remortgages website. ------ Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.
David Miles is the editor of a number of websites offering information on UK mortgages and remortgages, including: Clean Slate Mortgages London Remortgages
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