This time of year credit cards are being used at an all-time rate. But before long credit card bills and other bills will be delivered with due dates in January. How and when you pay those bills help to determine your credit score.
The benefits of a good credit and a good credit score is like a gift that keeps giving. It will help you borrow money for a car or home, or open a credit card with a comparatively lower interest rate. That means you will pay less over time for the money.
Many are surprised how so many things contribute to your credit report.Did you know that leasing an apartment, buying a house, vehicle loans, even cell phone payments contribute to either building good credit or making your credit score plummet? Information concerning credit and credit scores will presented in a two part series.
If you plan to rent or leave an apartment your credit report is often reviewed by a landlord or rental agency aspart of the review process. These people are mostly looking for major negatives on your credit report that show you may not be a responsible tenant. They will also check that the name, address, and employer on your report match what you put on your application. You could be denied an apartment or required to pay higher rent. You could also be forced to put down a larger deposit or to use a co-signer because of information on your credit report.
Purchasing a vehicle can be a big decision, your credit score commonly influences auto loan rates available to you. Most auto dealers rely on your score and some basic application data. If you have a high credit score (750+),you will receive the best loan deals available (sometimes as low as 0 percent).
However, even people with major credit issues can usually be approved for an auto loan, though at very high rates; which contributes to a much higher car note. The Better Business Bureau recommends shopping interest rates, like you would shop anything else where you want a competitive price or rate. It's a good idea to limit the number of loans you apply for since inquiries from auto loan applications can lower your credit score.
These days your credit score affects many parts of your life; you might be surprised at all the different areas. Purchasing something as simple as cellphone is much easier and often less expensive with a high credit score. Cell Phone companies will check your credit score before deciding to grant you a service plan. People with credit issues may be asked to put down a large down payment or pay extra for a service contract. There are cell phone services available that do not require a credit check. Some contracts include terminology that allows the company to review your credit at any point. Be aware that a cell phone application inquiry will appear on your credit report and can lower your credit score.
Did you know that banks will not check your credit report during the checking or savings account application process? However, most banks will review your ChexSystems report before granting you a new account. This report is not based on your credit file, but instead includes records of bounced checks or other banking negatives.
If you are thinking of applying for a new credit card, the company will review your credit score to see if you qualify and most importantly, what terms you should receive. Some credit card offers have different rate options for borrowers with different credit standings. Others have one set of requirements for opening the account.
Usually rewards cards and cards with low APRs require the highest credit scores. Secured and pre-paid cards accept borrowers with credit problems.Credit card companies often review the credit scores of existing customers and in turn may adjust their rates. Remember, credit card application inquiries can lower your credit score.
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