CreditGURUs.info - Credit Tips, Credit Loan, Credit Score

1. Those who don’t know history are doomed to repeat it.

Our nation is in chaos and the root of it all stems from good graces of man. Credit is deeply rooted into our history, it stems from a person’s or merchant’s product or service is priced too high for the average consumer. When payment from the patron for the item(s) was not convenient at the current time arrangement could be negotiated. This was the birth of the consumer credit program.

Let’s look at a typical California House priced at $395,000. The builder, in order to make a profit, needs to sell many of these homes at this price. How many of us have $395,000 to plop down in one lump sum?

If the builder only sold homes to people who could pay the lump sum, they would not sell many homes and the price would skyrocket to $3,395,000 due to the need for the builder to earn an equitable profit. On the other hand the builder would not make any profit if the homes were sold at $4000 or even $40,000.

2. What’s it going to cost you?

The homes must be sold at a price that is consistent with perceived value and quality, but still needs to make it available to the average consumer. This is the reason the mortgage business is so huge.

Let’s look at another example. This trend is deeply rooted in our history. Have you ever gone to a store and realized you didn’t have the money to purchase an item? Remember asking the store clerk to put it onto your account?

Actually you can still find this type of system where the merchant would allow the consumer a period of up to 30 days to repay the debt; when payment for the goods or services is not convenient.

3. How did this all begin

This began back in the days of the general store where a patron would come by and pick up a few items, charge them to a personal account and the patron would agree to pay the entire account by the end of the month.

4. Does this all still exist?

You can still find this type of environment but it’s gone for the most part replaced by the modern day credit card and department store card. This is a system designed with the theory that you never have to pay off the balance in full. This is called a revolving credit or charge account; pay off some, then spend it to the limit.

5. What happened to the people

This is where people get in to trouble everyday, late payments piling up, and debt occurring from interest added stress. I don’t know of anyone who wants or needs this. As an evolution of this process, it was natural that some type of credit reporting system would be created. Then suddenly the dawn of the credit bureau began.

Creditors or merchants were concerned about doing business with bad debtors; they needed a way to report problem consumers and a way to get the information about them before they established an account for them.

6. With the dawn of the credit bureau trouble had only just begun.

Now that the bureau had been born they began tracking information on individuals and businesses, selling that information to subscribers (creditors) and receiving information as well.

Late payment and other types of errors started occurring on peoples personal credit reports. After a while the errors were so bad that certain individuals were forced to go bankrupt and lose their families to divorce or worse.

People were always in a hurry and rushing to keep up with the Jones’or should I say

(___________________________________________________flat line)

Does this sound like you? Do you need help in mastering the ownership of your credit?

We can help; we have the proper solution for you. If you need a free credit report you can get one here at www.raise-my-fico-score.com/freecreditreport.html. Finding out where you stand is the 1st part of understanding your credit history. Knowing your credit history is easy especially since you know your financial situation. If you want to find out more on how to fix your credit, boost your scores and stay on the safe side of the credit barrier.

Dedicated to raising your credit scores.

Here are some of Ryan’s major achieviments.

Past President ACFA San Francisco, CA USA.
Million Dollar Club Memeber Mark Victor Hanson & Robert G. Allen Inspired
Licensed CA Real Estate Agent
Internet Entreprenuer
Certified Cash Flow Consultant
Credit Repair Specialist

Dedicated to your dreams, and fueled by desire Ryan has hit the nail on the head once again. With his break through special mini report
www.raise-my-fico-score.com

Share This

Many people have heard of bad credit, but some may not know what it means. For a long time, there was no established method for determining the credit activities of consumers. However, this all changed when a company called the Fair Isaac Corporation designed a credit scoring system that is called the FICO score. Because the three major credit agencies have different information on each consumer, the FICO score calculated by these agencies won’t be exact.

Your FICO score has become the best way to determine if your credit is good or bad. To get your store, information in your credit report is compared to the credit reports of others. Your future credit activities can be determined by this information. When you apply for a loan, lenders will look at the FICO score to determine if they should allow you to borrow money. Having a low score doesn’t automatically mean you won’t be allowed to get a loan.

In the past, having any marks on your credit report would cause lenders not to loan you any money. They had no way of determining which borrowers would pay off their debts. With the advent of the FICO score, more people today who have had problems with their credit in the past are now able to apply for loans. Mathematical models allow lenders to study the behavior of borrowers to decide whom they should lend money to. Banks and credit cards companies have taken advantage of this data by making offers to people who have different credit issues.

Those who have problems with their credit can usually apply for loans, but they can expect to have much higher interest rates. The FICO score ranges from about 300 to 850. The closer you are to 850, the better your score is. Statistics show that the average American has a credit score that is about 677. To qualify for loans that have the best interest rates and features, you will need to have a score that is at least 720. If you want to know your credit score, there are a number of services that will charge you a fee for it.

A number of factors go into calculating your score. The most important factor is your payment history. How you make your payments will determine about 35% of your score, which is almost half. Failing to make payments on time is one of the leading causes of getting bad credit. Your payment history includes payments on credit cards, loans, and other bills. Filing for bankruptcy can greatly lower your score.

The amount of money you owe will determine you score as well. People who have too many loans and credit cards will have a score that is lower. If you have a long credit history that is good, this will increase your score. Lenders are much more likely to give good loans to people who have established credit. It is important to understand the different things that affect your credit score, because this could allow you to maintain a high score.

If your credit score is low, this means that you need to start making payments on time. If you have a large number of loans and credit cards, get rid of some of them. Being responsible with how you manage your credit will allow you to keep a high credit score. Lenders will be much more likely to give you the best rates and features on loans. Even if one lender rejects you, this doesn’t mean that all lenders will reject you. Understanding credit and how to manage it will allow you to remain financially successful.

Joseph Kenny writes for the UK Loan Store, visit them here, Personal Loans Store and more information on bad credit loans available on site.
Visit Today: http://www.ukpersonalloanstore.co.uk/

Share This