Category Archives: Credit Score

Credit inquiries- how they influence your credit score

Whenever you apply for any credit, your lender or credit institute investigates your credit file or report. Whatever you have requested for either it is a credit card, auto loan, home loan or for any other purpose, your credit score is checked thoroughly. They have right to ask you list of questions as they have to clear their doubts regarding if there are pending, late payments or any bad records. Well, this can easily be analyzed by having a look at your credit file. Credit inquires are basically divided into two types, one is soft inquiry and other is hard inquiry. There is a big difference among both of these inquiries and this greatly affects your FICO credit score.

Soft inquiries:

This kind of inquiry just involves your background check process. Soft inquiries are never included in your credit score. So you don’t have to stress upon about these soft pull inquiries causing any negative impact to your Fico credit rating. Soft inquires can occur without your permission and these lenders can per-approve your loan or give instant loan for your purpose.

Hard inquiries:

Hard inquiries greatly count towards your credit score. This should be minimal if you want your credit rating does not go down. If you are applying for loans like car loans, student loans, mortgages, then lenders or financial institutions might make multiple hard inquiries. However if your hard inquires are more then it may lower your credit score for couple of years.

To score good credit ratings you must pay off your left balances, avoid making late installments; don’t collect too many credit cards and many more. If you are able to maintain your credit score and reports in a desired way then you may not receive any surprises especially when you are planning for large purchases or loans. Still if you unable to maintain your credit ratings and have higher credit inquiries, you don’t have to panic. Get in touch with 700 Fico Club; we specialize in providing credit inquiry removal services. Our financial advisers will not only help you remove bad inquiries but they also boost your credit score. Call us and make an appointment with our experts or email us in case of any queries. We at 700 Fico Club assures you to provide right solutions for your needs.

How can you improve your Credit Score

The calculation based upon the analysis of one’s credit files to rectify the credit worthiness symbolizes Credit Score. If you are dreaming of having your own home or car which is the basic essential elements that you can’t think to live without then your credit score needs to be high. Your credit score determines the amount of interest you will pay for your car or home loan. Maintaining a good Credit Score needs a lots of time and efforts.

Some of the ways to improve Credit Score are:

Pay your Bill on time:

Paying your bills late will result in poor credit score. If you are bad about paying your bills, definitely it is going to hit your credit score. So getting all your past due bills clear will make a way to improve your credit score.

Don’t apply for any more Credit Cards:

Own that number of credit cards that are sufficient for your needs. If you apply for numerous credit cards, then you are giving an indication to credit agencies that you are encountered in some financial difficulty. This makes your overall score negative.

Update your records:

It is essential to check through your Credit reports. Make sure your payments are reflected in your reports timely. Carrying a payment that you have paid but still not updated can make a negative impact on your credit score.

Minimize your credit balance:

You won’t really improve your credit score until you pay off your debts. Try to minimize your credit balance by clearing your all pending payments. One missed payment can contribute a lot to lower your score.

Examine your reports:

One of the obvious and frequent blunders that you perform is not managing your Credit reports. Double check the errors in your documents. If any sort of inaccurate or false information is observed, you should correct them immediately and must add the relevant up-to-date information to records of credit agencies.

These are just few tips that can help you in maintaining and improving your credit score for long term. Once you maintain your habit of paying the bills timely, keeping your minimum balance, you will see a great change in your credit score. Keep up discipline in handling your credit. With higher credit score you will be able to gain access to credit more easily.

Although it takes a lot of time and efforts but it is possible to improve your credit score in relatively short interval of time. If you have had credit problems in past, you can fix those issues by consulting 700 Fico Club financial experts. Our credit experts tell you the best ways to improve your credit score and finds which area you need to focus. 700 Fico Club specializes in providing financial services, cuts-off Bad Credit and ensures to boost your credit score within 30-45 days time interval. Call us and make an appointment or leave a message if you have any queries. Our credit support team aims to enhance your credit score with honest and legal procedures.

How a bad credit can affect you?

Credit bureau keeps a record of your credit relating behaviors. It is like a historical snapshot of your commitment to repay your debt in a timely manner. There is a complete history of your loan amount, credit cards and repayment. However, banks and lenders access this information to assess the degree of risk associated with offering you a loan.

Therefore, any past late payments and defaults negatively impact your chances to obtain finance in the near future. Bad credit history signifies your inability to handle your finances.

So, therefore, it is important to pay your bills on time and ensure your spending is under control.

How did you get a default on your credit file?

Overdue account is reported as a payment default in your report. It arises as soon as you have an outstanding account of least $100 overdue for more than 60 days. Late payments of credit card debts, mobile phone or delay in loan repayment are common examples of it. The payment default is recorded on your file after 60 days.

However, if you fail to respond to the request of the lender for settling the outstanding amount, you will be considered as an unaccountable debtor, where in your payment default is classified as a clear out.

You will be listed default on your file even if 60 days duration has not been elapsed. In some of the cases, the lender may start a legal proceeding against you. Such events also get recorded on the file.

However, if you pay your overdue account, the bank will update the file as soon as the payment is made. But the payment default remains on the report for a specific time. The rules are strict and there is no way the default can be removed from the report before the particular time has elapsed.

How long does the default will stay on your report?

The length of time depends on the default. However, a payment default remains for 5 years, even the overdue amount is paid in full.

If you fail to respond to the creditor and gets clear out, the information will remain for 7 years on the file. The court judgment remains on it for 5years while a bankruptcy list for 7 years, even after it has been discharged.

700 FICO Club offer credit restoration services. Seek our help to manage your finances well. We can also help you enhance your credit score. Call us for additional details or email us your queries.

The reasons your credit score fluctuates

Applying for a new credit

All credit cards have limits depending on how you use it. A new card may have a lower score. However, when you cancel all the past cards, it affects your score negatively. So, therefore, when applying for a new card, keep the limits in mind.

Payment history

You must repay your loans on time. Missed payments are recorded on your file for around seven years. So, therefore, make sure you never miss the date of repayment of your debt. Set monthly reminders for them so that you do not forget to pay the installment.

Bankruptcy

It can cause a detrimental impact on your file. So, therefore, it is advisable to seek help of an experienced attorney to make an informed decision as the bankruptcy can range from 7 to 10 years.

Credit card balances

Your credit card balance also influences your score. However, the balances on your card vary on a monthly basis depending on your utility. The less variable available balance is on the card, the greater is the credit utilization.

However, many individuals have several cards. Closing them without balances decreases your utilization. So, therefore, it is recommended to close down even if it holds zero balance.

Theft

Certain times despite of making payments on time, your score remains low. If such is the case, analyze the report. It may help you spot something unusual that may be causing a drastic change in your score. This can also be a simple mistake that can be corrected easily.

Length of credit history

The length of time a specific account is opened; including the time frame between the oldest to the newest account also affects it. If you are not using an account for a long time, it can drive your score low.

Time

If you are not using a credit card, get it closed as the companies might change some policies and cause a slight fluctuation in the score.

These are the reasons that may cause fluctuation in your credit score. For more information on credit score and ways to improve it, get in touch with 700FICO Score. Call us for details or email us your queries.