Common,Mistakes,Can,Lower,Your finance, share, loan Common Mistakes Can Lower Your Credit Score

If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that

Your credit score tells creditors an instant snapshot of your credit worthiness. Think of your credit score as a picture of your credit risk. Not everyone agrees to the fact that we are approved or denied credit based on a “number,” but thanks to Fair Isaac & Co, who came up with this credit model, we are stuck with this reality. Below are the weights and factors assigned to different credit history factors used for your credit score, commonly known as your FICO score:

Item	Summary	% of Weight
Payment History	Determined by the payment history on your credit card accounts, from Visa cards to department stores and loans. The model assigns greater weight to recent missed payments than late payments years ago.	35%
Outstanding Credit	Based on the amounts you owe creditors. This includes the total of what you owe on all your accounts and whether you carry an unpaid balance on certain accounts like credit cards.	30%
Length of Time	Attributed to the length of time the applicant has been a credit user. The longer, the better, assuming you pay on time.	15%
New Credit Loads	Based on whether you appear to be loading on new credit. In other words, have you been applying for and receiving new loans in recent months. High activity in this category will lower the score.	10%
Mixed Credit Use	Governed by the types and "mix" of your credit use.	10%

While your payment history does account for 30% of your FICO score, there are several other factors that may contribute. Consumer Credit Counseling Services (CCCS) offers the following four common credit killers and ways consumers can avoid their damage: 1. Staying out of debt. Having no credit history is nearly bad as having a poor credit history. From the perspective of a creditor, if you have stayed out of debt your whole life, they have no way of basing whether or not you would handle a loan properly in the future. Maintaining several types of accounts proves that you can handle the responsibility. If you are experiencing trouble obtaining credit because you lack history, opt for a secured credit card. 2. Assuming there is a grace period. Many people do not realize that even one late payment can negatively impact your credit score. If your payment is due on a holiday, be sure to send the payment in early. Keep in mind that many creditors today are raising rates and even closing accounts as penalties for late payments. Sending partial payments—even if they are on time—can also result in the creditor reporting you as delinquent. If you are having trouble meeting your monthly obligations, make it a priority to contact your creditors and request a revised repayment schedule. 3. Closing old accounts. Closing old or unused accounts could hurt your overall credit score by shortening the length of your credit history. This factor makes up a whopping 15 percent of your score. Closing accounts also limits your amount of available credit. Credit scores take into account the proportion of credit used. If you choose to keep old accounts open, just be sure to keep tabs on them regularly to be certain they are not used fraudulently. 4. Relinquishing control. Cosigning a loan has many risks and very little reward. Any late payments made by the primary borrower will appear on your credit report. In addition, the cosigned loan could change your debt-to-income ratio, making it harder to qualify for future credit. The best way to avoid this major credit killer is to “just say no.” By observing the following guidelines, you can influence your creditworthiness for the better: Check your credit report regularlyTake the necessary steps to remove inaccuracies.  Never allow your credit health suffer due to inaccurate information. If you find an inaccuracy on your Credit Report, contact the creditor associated with the account or the credit reporting agencies to correct it immediately. Be punctualPay all of your bills on time. Late payments, collections, and bankruptcies have a negative effect on your credit score.  Unpaid judgments, tax liens, involuntary repossessions, and foreclosures have devastating long-lasting effects! Watch your debtKeep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.  Maintaining balances below 30% of the credit limit is preferred, and maintaining a credit balance near zero percent of your limit will actually generate points!  Give yourself timeTime is one of the most significant factors that can improve your. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use. Avoid excessive inquiriesLarge number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.  "Hard credit inquiries" can cost up to a 5 point drop in your credit scores.  Some hard inquiries may remain on your credit reports for up to two years. Multiple mortgage inquires will be considered as a single inquiry over a fourteen (14) day period.  Performing your own (soft) inquiry does NOT register as an inquiry on your credit profile. Finally, when trying to improve your credit score, it pays to be consistent and patient in your good credit habits. Credit scores are continually updated and may move several points each month; whether your score goes up or down is entirely up to you.