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Why Is It Important To Pay Your Bills On Time, Every Time?

A late payment is simply a payment that you have not made to the lender before the due date. This happens to the best of us as we can make mistakes due to oversight or shortage of cash. Unfortunately, these mistakes will negatively affect your credit score and cause it to drop dramatically as your payment history is the key component used to calculate your credit score.

In this article, we will discuss how late payments affect your credit score, the other potential penalties, and tips on how to keep your future credit in tip-top shape.

THE EFFECTS OF LATE PAYMENTS ON YOUR CREDIT SCORE

You know that late payments can negatively affect your credit scores. However, you may not be aware of how much your credit scores can fall or how long it will take you to repair the damage. You should because credit scores can boost or drain one’s finances.

According to Experian, a single 30-day-late payment will lead to the ding of 90-110 points if you have a good credit score of above 780 and a drop of 60-80 points if you have a score of say 680. However, the number of points that your credit score can drop when a late payment is added to your score depends on many factors. The FICO scoring models will consider all the points given below to determine the impact a late payment will have on your credit score.

  • It depends on how long you wait before paying the bill. Your payment will be reported after 30 days past the due date and again after 60 days, then 90 days and then again after 150 days. The longer your bill goes unpaid the greater will be the impact on your credit score. And after that, your account will be written off as a loss of charge and that will be very bad news for your credit scores.
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  • Late payments that have occurred in the past year do more damage than from several years ago. So, your recent credit history severely harms your credit score but this negative impact lessens over time.
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  • The number of points your credit score can take a ding also depends on the number of late payments on your credit report. If you have many late payments already then you are on the low end so the addition of one more late payment may not cause a lot of damage to your credit score as most of the damage has already been done.
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  • The amount of your late payment can also play a role as a small amount of say $200 and $300 will not harm your credit score as say a $300 and $3000 late payment. So the more you owe the more your score drops.

OTHER POTENTIAL PENALTIES OF LATE PAYMENT

  • You will usually be charged a late fee by the lender and if you continue to miss the due date you can be charged additional late fees too.
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  • The interest rates of your future loans will increase.
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  • Your interest rate can be reset to a penalty annual percentage rates (APRS) or default, depending on the creditor’s policy. Credit cards penalty APR can go up to 29.99%
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  • You can also forfeit your 0% promotional rate on a balance transfer card if you have one and it can be reset to the default interest rates. So, you will pay much more interest on your outstanding balance if this is done.
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  • It will remain in your credit report for seven years so you may not qualify for a mortgage (at the best interest rates), get a personal or auto loan, or even receive the best credit cards or rewards programs.

HOW TO MASTER YOUR LATE PAYMENTS

You may be just forgetting to pay your bills or struggling to pay your bills, or just forgot to pay one small bill. Either way, there are ways to master your late payments.

  • You should select a payment due date that coincides with your paydays or a time when you pay all your bills together. Many credit card issuers do allow you to select a due date.
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  • Set up bill payment email reminders or text alerts that will remind you about the bills that are due in a few days. If you require more than one alert you can set up multiple electronic prompts.
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  • Consider setting up automatic payments, especially if you have made late payments in the past due to forgetfulness or being too busy. However, you should ensure that you have sufficient funds in your account so that you do not get to pay overdraft fees. Once you start paying your bills on time your credit scores will begin to improve over time.
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  • Even if money is tight you can review your budget. You may be able to find ways to cut back on spending and make it easier to pay your bills on time
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  • Prioritize which payments you need to pay if you do not have sufficient money to pay all bills. The essential bills like mortgage, rent, and utilities should be paid first. Then pay the bills that have a hefty late fee. Finally you can pay the bills that are about to go into collections.
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  • Finally, a smart move would be to set up an emergency fund that will help you when you have unexpected expenses.
 

 If you need help to improve your credit scores do contact our financial experts at Zinucreditrepair.com.

Can Medical Debt Impact Your Credit Scores?

Are you worried that your medical bills will harm your credit score? The answer is that determining the impact of your medical bills on your credit report and credit scores is not a perfect science. It depends on an individual’s credit history which will be factored into the formula for determining one’s credit score.

Here we are going to examine how unpaid medical bills can impact your credit score. 

The Danger of Ignoring Medical Bills

You may maintain good health insurance and do everything you are supposed to do like choosing in-network doctors and hospitals. But, despite your best efforts your medical bills can still rack up quickly and affect your credit standing. And, if you are uninsured even a simple emergency visit can turn into an alarming amount of debt.

The myth that medical bills will automatically spell trouble for your credit reports and scores – is just a myth. Simply acquiring medical bills will not have any impact on your credit score. It is not the doctors and hospitals you visited that report your medical bills to the credit bureaus. Medical providers will usually turn over your unpaid bills to a debt collection agency after attempting to collect fees from you for a few months. The debt collector, in turn, reports it to the credit bureaus. So, it is only unpaid medical debt that can typically lead to credit problems as they can turn into collection accounts. They can even lead to potential court judgments if your debt collector decides to sue you for your outstanding medical bills and will stay on your credit report for seven years.  

Therefore, if you are overwhelmed with large medical bills that begin to arrive in your mailbox, you should not ignore them.   Ignoring them is a very big mistake as they can show up in your credit report. But, the degree of damage will depend on other score factors from your credit reports.

Medical Collections and Credit Scores

Many people believe that medical collections are not a big deal because no one would choose to get into medical-related debt. According to a survey a staggering 52% of collection accounts on credit reports are medical bills. It is estimated that 43 million consumers with a credit report have one or more medical accounts in collections.

 Credit scores are inclined to take the line of least resistance. That is to say, it is very easy for a good credit score to turn into a bad one than it is for a bad credit score to turn into an awful one. If your credit score is currently very good then the addition of a collection account or “just” a medical collection may potentially have a very damaging impact on your credit score. However, if you already have problems with derogatory information appearing on your credit reports then one more medical collection may not have a much additional negative impact on your credit scores.

New Regulations May Help

The older FICO scores were designed to treat medical collection bills like any other collection accounts. But, the good news is that after an agreement between the three credit bureaus (Experian, Equifax, and TransUnion) and a group of the state attorney general the FICO and VantageScore have released a new set of rules. These scoring models (FICO Version 9 and VantageScore 4.0) which have come into effect from June 2018 have made it harder for medical debt to kill your ability to borrow money. Collection agencies cannot report medical collections to the credit bureaus unless it is 180 days past due. Secondly, the new regulations also require collection agencies to remove from your reports any medical bills that are eventually paid by your insurance company. This is great news as the time frame of 180-days will give you time to make payments or payment arrangements with insurance companies and medical providers before it goes for collections. Secondly, it will help if a medical collection has been unfairly added to your credit reports when it should have been covered by your insurance plan. Matt Schulz industry analyst at Creditcards.com says, “It is a big deal as it builds time into the mess of getting insurance claims taken care of.”

Debunking the Myth

 No doubt, when these newer and better scoring models (FICO Version 9 and VantageScore 4.0) become more widely adopted a new medical collection will cause fewer credit score problems.

 Though, this special treatment of credit scores may make life a little easier for medical debts but, it is important to keep in mind that many lenders still use older versions of credit scores. So, it is likely that creditors would view a medical collection account negatively when applying for insurance, credit or loan as medical debt. 

Your goal should be to prevent your medical bills from being turned into collections or being reported to the credit bureaus. That may mean that you should:

  • Call the doctor and your insurance company monthly to check on the progress of any reviews that are delaying the payment of your medical bill. In some cases, you may need to pay the bill and then seek reimbursement from your health insurer.
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  • Negotiate with your health provider if you cannot afford to pay a medical bill and try to reduce the amount owed or set up a payment plan.
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  • Examine all the medical bills you receive carefully and compare it with the benefits provided by your health insurance provider. If you feel you have found an error you should contact your health insurance company and file a dispute with the three major credit bureaus.
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    No doubt all this may cause some inconvenience, but it is better than another blow to your credit scores.

    Can Small Business Credit Cards Hurt Your Personal Credit?

    There are many reasons why a business credit card can be invaluable for small business owners. Besides building commercial credit and earning rewards for office supplies it can also make cash flow easier to manage and allows them to put expenses on credit that can be paid later when they are paid by their customers. 

    No doubt business credit cards offer rewards and benefits that are more suited to the needs of small companies, but how does its use affect your credit scores?

    The answer is not just a simple “yes” or “no.” It depends on your provider’s policies and how you use it. So before you apply for a small business credit card it is important to know how it can affect your personal credit and how you can meet your goals. 

    1. Application

    If you do not own a successful business you will most likely have to apply for a small business credit card. When you apply for this type of card the card issuer will check your credit score and credit history. It will run what is called a hard inquiry on your credit report. This will knock about five points off your credit score according to FICO.com. , and can also lower the chances of your application getting approved.

     Most importantly, almost all small business credit cards are backed up by a personal guarantee which makes you take personal responsibility for any debts the business cannot pay. These debts will likely appear on your credit reports and severely damage your personal credit scores.

    2. Ongoing Reporting

    Some business credit card issuers report only commercial credit bureaus, and not to consumer credit bureaus. There are few other credit card issuers who do not report monthly payments at all. If you are a small-business owner you can choose a credit card that does not regularly report your account activity to consumer bureaus and so will not make a difference to your score but if you do so you need to avoid missing payments.

    Assuming that you have a credit card that regularly reports your personal credit, then once your card is approved the new account will affect your credit history and lower the age of your lines of credit. If you have a very limited history this will cause a small drop in your score. 

    This new account can also help you build your credit history because your payments and balances on this new account will appear on your credit report as well. This is good for your credit score. So, your use of credit card accounts may or may not affect your credit score in one way or another.

    But you should not make the mistake of thinking that you are not personally liable for the debt on your card because all small-business cardholders have to sign a personal guarantee on almost all small-business card agreements as already mentioned above. So, if the issuer sends the accounts to collections or sues you for balance amounts, it will probably turn up on your credit reports. To make sure if your credit card issuers are reporting your payments and balances or not you can check your credit reports each year from the three major credit card bureaus (Equifax, Experian, and TransUnion)

    3. Always pay on time and in full

    You must always make minimum payments on your business credit card each month. If you miss a payment either by mistake or because your business is struggling it will impact your payment history. This is very important because your payment history makes up 35% of your FICO credit score. One or two late payments can also trigger a penalty APR on your card and could make it harder to stay on top of payments in the future. 

    As a business owner, you must weigh your company’s cash flow and your goal should be to pay your bills completely and not just make minimum payments. This will not only save a lot of interest but if they are not paid for a long time it can greatly damage your scores. 

    4. Credit utilization

    One of the ways that may affect business owners most is carrying too much debt on their business credit card as it raises their credit utilization ratio or a debt-to-credit ratio (the total amount of debt divided by the total amount of credit you have available). Both personal and business credit card balances are combined to calculate the credit utilization ratio which makes up 30% of your FICO score.

    Business credit cards usually tend to have higher credit limits than a personal card and can raise your amount of available credit, but you should not quickly max out the business card as it will definitely hurt your debt-to-credit ratio. By limiting how often you use your credit card each month or by multiple payments every month you can keep your balance low and keep the credit utilization score below 30%. So having a new line of credit may or may not reduce your credit utilization ratio.

    5. Use small business loans for larger capital needs.

    Business cards are no doubt a great way to finance operational expenses but if you need a larger capital to expand the business you should consider using a small business loan instead of business credit cards. You will have the flexibility to use your credit card for your everyday business expenses without the fear of spoiling your credit utilization. Besides, you may also qualify for a lower interest rate than what is available on your credit card depending on your credit history and your company’s financial situation. 

    There are many benefits of using a small business credit card including separating your personal affairs from those of your business. But when it comes to your credit score it is almost impossible to have a complete separation as it has the same impact as a personal credit card.

    6 Times When You Are Smart Not to Pay Off Your Mortgage Early

    Plenty of homeowners would like to pay off their mortgage early as it is a hassle and a headache. Itis their largest monthly payment and takes out a good chunk out of their budget.

    It is understandable as there are many reasons to pay off your mortgage early. It will not only help yousavehundreds (even thousands) in interestbut will also helpyoufeel secure at the thought of owning your own home.

    At the same time, there are benefits of not paying your home loan ahead of schedule.

    The approach which is better for you will depend on your financial situation and goals. If the following situations apply to you, sticking to your mortgage payment schedule and using the extra cash for other purposes will be the best option.

    1. You Do Not Have a Hefty Source of Emergency Cash.

    Financial ups and downs are inescapable. Though the house you own free and clear is a significant piece of wealth, it is not something that you can quickly convert into cash in a crisis. It takes months even in a strong market to sell a house. You could secure a home equity loan more quickly but this also will take a few weeks and will put you back into debt with possibly a higher interest rate than you had on your original mortgage.  So, the best way to ensure that you can cover any unexpected expenses like a job loss or medical bills without having to take on new debt is to make sure that you have set aside a healthy “rainy day” fund to cover at least six months’ worth of household expenses. 

    2. You Want to Lower Your Tax

    Before you decide to reduce your mortgage debt, make sure you have fully funded any tax-advantaged account such as 401(k) or individual retirement accounts(IRAs). According to Patrick Whalen, a certified financial planner at Whalen Financial Planning in Los Angeles “Paying off a mortgage early competes with the priorities that can help lower your taxes, like funding a 401(k) plan up to the maximum amount.”

    The tax advantages of these contributions coupled with the potential for long-time growth in your retirement investments makes them the first place you should be stowing any extra cash you have.

    3. Is There A Prepayment Penalty On Your Mortgage?

    Prepayment penalties are rare in new mortgage contracts but some older mortgages containrequirements that you must pay several thousand dollars if your mortgage loan is paid off ahead of schedule.

    Prepayment penaltiescould be the equivalent of a certain number of monthly interest payments or equal to a percentage of the mortgage loan amount. So, if your mortgage loan contains such a prepay penalty clause you should compare the penalty amount with what you will save in interest by paying off the loan early. You should make sure that you do not lose money by triggering a penalty.

    4. You Can Earn a Better Rate By Investing

    The smartest choice to make when you have extra cash to pay off a mortgage loan with a low-interest rate is putting it into the stock market or mutual funds and building up a diversified portfolio. It is reasonable to expect a long-term return of 6 to 8 percent when you invest in a broader market.Meanwhile, your mortgage rate may be around 4.5%, so over time you are likely to earn better returns on your money and can benefit from years of tax breaks and be much better off in the long haul.

    5. You Have Other Debt

    The mortgage loan should be the last debt you pay off. If you are payingother debt that has higher interest rate such as car loans, school loans, credit card debt or home equity lines of credit, it is technically better to put any extra funds towards these debts than your mortgage.

    Many of these debts can carry 0%interest at least for a time. However, in most cases, these 0% deals apply to either temporary or relatively short term loans. So, paying off these loans should always be a higher priority than your mortgage loan.  

    6. You Are Still Savings For Big Purchases

    It is not enough to only pay off debt and save before tackling the mortgage, you should make sure all your future cash needs are addressed. Generally, you should plan to cover all significant expenditure for at least the next five years or preferably for ten years that include:

    • Child’s education
    • Home remodeling,
    • Car purchase
    • Wedding
    • Vacations

    There is no point of paying off a mortgage early if you are getting into more debt for a large purchase.

    HOW WOULD PAYING OFF YOUR MORTGAGE LOAN AFFECT YOUR CREDIT SCORES?

    They will not be a dramatic change in your credit scoreas a consequence of closing your mortgage loan. But closing credit cards can hurt your credit score as it reduces the total amount available to you to borrow. Mortgage loans like paid off student loans and auto loans will remain on your credit reports for 10 years as a “closed account in good standing.”

    FINAL WORD

     Whether you should pay off your mortgage early or not depends on how much money you have to spare, what other alternatives you have and other factors that are unique to you. If paying off your mortgage loan early is on your radar you should seriously consider all your options so that you are sure it is the best path forward for you. 

    5 Credit Card Myths Unveiled

     

    Credit Cards are a keystone of Americans’ purchasing habits. They are no doubt the best financial tool available today as it is easy to carry, provides funds for an emergency and increases your credit scores.

    However, like any other financial product credit cards do seem to create a certain amount of anxiety. A Nerd Wallet survey found that a surprising number of Americans are struggling with basic credit card issues ranging from credit scores to revolving debt to reward cards. This is due to the fact that credit cards are surrounded by certain rumors and myths.

    So, when it comes to credit cards, it is important to know how to separate truth from myth. Here are five popular credit related myths which plague the consumers, plus the facts that repudiate them.

     

    Myth 1: Using a Credit Card can hurt your credit score.

    Fact-   Credit card usage does not hurt your credit score.

    One common misconception regarding the usage of credit cards is that many people fear that it would hurt their credit score. Well, it is time to burst this myth. The fact is that it should be the first step a person must take towards building a credit score. Credit scores are calculated on the basis of the past use of debt and credit. The irony of credit score is that if you do not have debt or you do not use your credit, you don’t have a score. It will be difficult for you to get certain jobs, apartments and loans in the future.

    Tip:  Even if you like paying your bills as you go, it is wise to get a credit card and pay off your credit every month to maintain a credit history. You should also keep your credit utilization ratio between 20-30%.  A credit card can hurt your credit score if you do not use it wisely and rake up huge outstanding bills.

     Myth 2: Maintaining a balance on your credit card helps your credit score

    Fact: Not paying your dues can hurt your credit score.

    A majority of consumers (54%) are under the impression that carrying a monthly debt balance improves their credit history. This is entirely wrong as this is the worst financial mistake you can make. The minimum amount due is the amount you need to pay to avoid any late charges. It is only a fraction of your total due and varies from bank to bank.

    In a short term it is nothing but a myth. You will be relieved that a burden has been lifted from your shoulders but the trouble will start when the interest on the balance unpaid amount accumulates and will be bouncing back to be paid. Your debt will build up in a huge pile and you will soon find yourself neck deep in a pool of debt. Your credit scores will see new lows along with your finances and it will also hamper your ability to raise funds in future.

     

    TIP: The best strategy is to use your credit cards and pay off your bills in full each month, so you can keep your overall debt-to-credit limit low. 

     

    Myth 3: Getting Rid of Old Cards Helps Your Credit Score

    Fact: No, it is just the opposite

    Another myth about credit cards is that old credit cards hurt your Credit Score. But, the truth is just the opposite. The saying “old is gold” is very true in this scenario. If you leave your old cards open it may have a number of benefits.  Firstly, they bear testimony to your long time money management skills. Secondly, the older the credit account the more value it adds to your credit history (determines 15% of your score). The other important benefit is that it will keep your credit utilization ratio (the amount of available credit compared to the credit limit) low. It influences 30% of your FICO score.

    TIP:  You should avoid closing an old card without a good reason to do so. If you find that the fees associated with your old card are outweighing the benefits you might consider closing the account.

    MYTH 4: You can improve your credit score by using a debit card. 

    Fact: It will have no effect on your credit score.

     

    Though both credit cards and debit cards appear identical, they are at the opposite side of the spectrum and serve different purposes. With a debit card you withdraw money out of your own account whereas, on the other hand a credit card means borrowing short-term funds from financial institutions which you should pay back in full. Your credit score reflects your repayment ability and lenders look at your behavior when you borrowed previously. Prepaid cards and debit cards will not help you better your CIBIL score as there is no involvement of debt in the process.

    TIP: You should use your credit card for everyday purchases and loans which you really need and pay them off in full before the due date. Avoid withdrawing money from your credit card as you will be subjected to high fees and high-interest rates and this   will quickly subtract any short-term gains.

     

    Myth 5 – Keeping many cards is bad for my credit score.

    Fact- The number of credit cards that you’re holding will have no bearing on your credit score.

    This myth is conceived from the belief that every card plays a role in increasing your debt.  But the fact is no one credit card can satisfy all your needs. You may need an Airline Credit Card for discounts on flights and hotels, a cash-back credit card to get some hard earned money back in your account and a shopping credit card to get special discounts. Your friends and relatives may discourage you to have more than one card as they are worried that it would play a role in increasing your debt. But as long as you are using your credit cards wisely it will not negatively affect your credit scores. You just have to keep a tab on the amount you spend on each card and pay your bills in time.

    TIP: You should not apply for too many credit cards at one go. This could lead banks to reject your request as you will look like a person who is desperate for finance and you have no means to repay your debt. So you should space out your applications for credit cards.  Secondly you should not be impulsive with your purchases. Finally, avoid piling up tons of credit cards that have high annual fees.

    If you have been assailed by any such myths it is time to embrace facts. It will help you to be more discerning in decision making and build a strong financial foundation.

    If you know about any other credit card myth or rumor you want details on you can connect with us on Facebook or Twitter.

     

    5 Ways Millennials Can Boost Their Credit Score

    boost credit score

    Millennials (people aged 18-34)  don’t fully understand what impacts a credit score than older generations but according to a recent study it does not stop them from trying to improve their credit. They check their credit scores most and are trying actively to build and improve their scores according to Discover’s 2018 Credit Survey of US consumers.

    If your credit score is lower than what you would like it to be then you are not alone as credit scores are influenced by many factors like   a long credit history (35%,), level of debt utilization(30%) the age of credit(15%)  mix credit(10%) and credit inquiries(10%). It is hard for many millennials to meet these criteria. But the good news is that you can boost your credit score this year by taking some concrete steps. Here are five steps that you can try.

    Check Your Credit Report for Mistakes

    You need to check your credit reports from time to time to see that they do not have any damaging errors by getting a copy each from the three major credit bureaus. In a study by the Federal Trade Commission in 2013 it was found that one in four consumers had a mistake on their credit reports that could have an impact on their scores. One in a five had an error that a credit reporting agency corrected after a dispute.

    In order to ensure that you do not have any damaging errors on your credit reports you should get a free copy from the three major credit bureaus; EquifaxExperian, and Trans Union at  AnnualCreditReport.com. If you come across any errors you should submit a dispute online with the bureau that is reporting the error. You should explain why you believe the information is an error and provide details about what you are specifically disputing. (Including account numbers)

    If there are big mistakes clearing them up  could lead to a great improvement in your credit score.

     

    Lower your Credit Utilization Ratio

    The amount you owe measured by your credit utilization ratio will account for 30% of your credit score.  It can be calculated by dividing the total amount of debt owed by a total amount of available credit. For example, if you have a credit card with a limit of $1,000 and your credit card balance is $200, then your credit utilization ratio is 20% for that credit card. According to Experian a lower credit utilization (using a small amount of credit loaned to you) is preferred.  So if you pay off your debts in time you could boost your credit score.  You should decrease your credit card debt as the amount you owe will make up 30% of your score. But, using too much of your credit can be a sign of repayment risk.

    Do not Skip or Miss a Payment on a Credit Card.

     

    Missing a payment or skipping even one payment on your credit card can lower your credit score.  It can cause it to drop by 100 to 300 points according to Bruce McClary, spokesman for National Foundation for Credit Counseling, a Washington, D.C.-based non-profit organization. This misstep can take you about two years to restore your credit score. So the first thumb rule is to pay your bills on time as this factor makes up 35% of your credit score. You can avoid late payments going forward by setting up automatic payments from your credit cards and other bills.

     

    Have a Long Credit History

    Having a relatively long credit history affects 15% of your credit score.  Millennials should not close credit card accounts they have opened several years ago as it shrinks a person’s available credit.

    Your credit history can be longer if a relative who has a long and awesome credit history is willing to help you and can add you as an authorized user of one of their credit cards. This is one of the simplest and fastest ways to boost your  score. The old card will show up in your credit report and you can also get credit for the history of on-time payments This also means that you have access to your relatives line of credit. If you make purchases it will affect your relative’s credit utilization and it would be the ultimate responsibility of your relative for paying back what you borrow. So that means the relative needs to trust you to be responsible for your purchases. You can avoid purchases altogether –would be vital.

    The Necessity of Credit Cards

    One of the great ironies of earning a good credit score is that you must have credit to build credit. So having a credit payment history is very important as it accounts for 35% of your credit score. If you do not have a credit card do get one. You can open a credit card for small day-to-day purchases and it should be paid in full each month to build your credit history.

    You need to have a mix of types of credit as it affects 10% of your FICO score. Having different types of credit accounts will also improve your  score. In addition to a credit card if you have an auto loan or mortgage that you make on-time payments each month or another credit card pay off each month it will help you to improve your scores.  Obtaining more credit cards at one time can lower your score more.

    According to McBride’s you have to “keep your borrowing modest particularly if you have an existing car loan or student loan debt, ”and that  “ paying bills on time , keeping debts modest and paying your debts in time accounts for almost two-thirds of your  score”.

    Call us now at (800) 400-ZINU(9468) for further details.

     

     

     

     

     

     

     

    How Credit Score Affects Your Love Life

    Living in a dynamic century, the ‘Woman of Today’ is in search of a responsible life partner who can manage his money. Your credit score says a lot about your character. Very few of us are free from debt issues but one who pays his debts responsibly is a better option as it increases your chances of finding long lasting love.

    A Survey Report in a US newspaper revealed that 9 out of 10 people consider financial security an important factor for getting married. According to New York Times more people are adding credit scores to their social filters A couple benefits in the long run if they have a responsible approach to finances.

    Life in the modern world without using financial services is simply unrealistic and access to debt is essential for a middle class life. Sometimes when money problems come to light late in a relationship it can lead to separation and divorce. A good credit score will have a great impact on your love life and can lead you to happiness.

     

    Debt impacts your family life in many ways:

    • Burden of debt will affect your contribution to household expenses or even your entertainment and holidays.
    • It can prevent you from buying a home of your choice. Your own home indicates a financial stability and commitment.
    •  Having kids is a milestone that cements many relationships, but severe debt problems can put a break on this next step and results in marriage breakups.

    To make your credit score more appealing and getting out of debt should be your priority for a carefree and happy life. We at ZINU CREDIT REPAIR offer valuable assistance for managing your finance.

    Ring us at (800) 400-ZINU(9468) to know more. (more…)

    Credit Repair and the Procedure to Fix Bad Credit

    Well a lot of people actually do not understand what exactly credit repair is. So, how can one deal with it? Dealing with credit repair may not seem to be an easy procedure, but in reality it is not that complicated too. Just read on to get a fair idea about how you can do so in the long run.

    The first thing that you need is to get a Credit Report from any of the well known credit agencies like Experian, Equifax or TransUnion. You can get one from each if you want or can simply get one to see how your Credit Score looks like as of now. This is the basic thing that you need to do if you are thinking taking a professional help or want to do it yourself.

    As soon as you get the report you are requested to read the report thoroughly. Consider this to be an important as it will give you a comprehensive inkling. You can actually find out which is rightly placed and which one has to be removed. Look for partial details, spelling errors and wrong credit history. Make sure you do this as well as this will only help you avoid unwanted credit on file. There is no need to mention that this will take some load off your report for sure.

    The Easiest Way to Credit Repair

    After all this the easiest way to credit repair is by starting to pay off your debts. Once you restart your payments, you can see the debts vanishing. No wonder this can take care of all that you have not been able to do in the past. Yes you need to keep one thing in your mind that this cannot happen overnight. You need to give it some time. Many people think that it is a matter of one day affair which is not at true. You need to have patience and let it take its time to repair the already damage credit.

    Follow us here to learn more ways to improve your credit score.

    Busting the Myths – The Truth About Rebuilding Credit

    Here are a few of the many myths that are busted about rebuilding credit. You must have read and heard a lot about debt management, debt settlement, and credit score. The question is that do these terms mean anything or are they just layman terms? Can credit be repaired in reality? The answer to these questions can be found in them only. It is correct you need to research a little. If you are in trouble with your debts, get an answer to these questions. This article will give you an idea.

    Increasing Credit Score will definitely help you lead a better life.

    To start with credit repair is not a mere term and it is very much possible a thing. This means that you can repair your credit without much of a difficulty. Now the question arises as to how can you do so? Again the resolution to these queries lay hidden in the fact which approach you want to opt for, like a do it yourself or professional help.

    If you want to stick to the do it yourself method, then you need to understand the importance of the whole thing. To be precise you need to get a fair idea of your position. If you are neck deep in debt and want a way out of this, then you need to get a grip on your spending habits. Pay your creditors on time and get current with your payments. All this will definitely help you lead a better life.

    Nonetheless you need to be practical about one thing that is getting professional help for this is a far better idea than opting to do it yourself. A credit advisor on the other hand will hear you out, get all the necessary details from you about your income, and plan thing for you. They will make the required adjustments and assist you with all your queries in regards to debts. All this will in turn help you to get your credit repair done in no time at all. So what are you waiting for? Go ahead and call a credit counselor today!

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    Why is it hard to get Credit Cards?

    If there is an unstable economy in the state then the individual finds it tough to get a credit card. Whether it be a home loan or business loan, it becomes a bit harder to get it approved, due to bad credit score. The credit card company does look at multiple factors when they take up a decision.

    Credit worthiness

    It is also necessary to look up the credit worthiness, but some credit card companies do look into more detailing. Amount of debt that an individual has as his outstanding amount. It is a big factor to get a credit card. If you have a bad credit score then you might have to adapt a fast credit repair process to cover it up. Or else it will become tough to get access to a new card.

    Payment History

    Forwarding late payments is also another reason that falls hard on new credit cards. If once a people are late in making payments, then it is taken as mercy. But a regular one may make debtor fall into bad repute. During unstable economy, credit card companies do make some strict lending rules. During a raised economy one will not such harder situations to get a credit card.

    Overall Credit Score

    The overall credit score plays a major role in bringing out a credit card that one may have applied for. If the economic condition is rocky, credit score needs to higher to get a card. Outside the normal rule credit card companies have their own set of rules to maintain a stable economy.

    Credit card companies do look into the financial history of individuals if they apply for a credit card. Maintaining a good credit rating will obviously have a better impact. You will be able to meet the uncertainty of economy. Alternatively, the safe way may be to apply for a new card after the uncertainty period gets over.

     

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