Useful Tips on Using Credit CardsWritten by John Mussi
Here are some useful tips on using credit cards. Whether you shop online, by telephone or by mail, a credit card can make buying many things much easier; but when you use a credit card, it's important to keep track of your spending. Incidental and impulse purchases add up, and each one you make with a credit card is a separate loan. When bill comes, you have to pay what you owe. Owing more than you can afford to repay can damage your credit rating. Keeping good records can prevent a lot of headaches, especially if there are inaccuracies on your monthly statement. If you notice a problem, promptly report it to company that issued card. Usually instructions for disputing a charge are on your monthly statement. If you order by mail, by telephone or online, keep copies and printouts with details about transaction. These details should include company's name, address and telephone number; date of your order; a copy of order form you sent to company or a list of stock codes of items ordered; order confirmation code; ad or catalog from which you ordered.
| | What is Credit Scoring?Written by John Mussi
Have you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit. How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans. Information about you and your credit experiences, such as your bill-paying history, number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points (a credit score) helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make payments when due.
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