Many consumers that are new to consumer credit find that it is hard to open new accounts when they have a limited credit history. Lenders really want to see that you have an established credit history as proof that you can be trusted to maintain a new credit account in good standing. Continue reading →

Finance companies provide higher cost loans to those left out of mainstream banking. It serves an important role in extending credit to consumers who may not be eligible for traditional bank or credit union loans.

You may think that you are building your credit history by taking out a loan with a finance company. If you have no credit, then that may be one way to show activity. The problem with this approach is credit bureaus may actually punish you for taking out loans through finance companies. This may be true even with a perfect repayment history. Continue reading →

You might think that you have been managing your credit well by juggling balances on several credit card accounts. Given the complexities of keeping up with so many accounts, you may have indeed managed them well.

The problem with carrying balances on so many accounts is that FICO credit scoring formulas deduct points from your scores as a penalty. It may seem counterintuitive to punish you for managing so many accounts without fault. Continue reading →

Sometimes credit may be withheld when an applicant has too many bank or national revolving accounts. To clarify, the accounts must be open in order to contribute to this reason for credit denial.

If you have received this reason code on a credit report, or have been told that this is an issue by a mortgage representative, you can relax. This just might be the easiest credit issue to fix. Continue reading →

You may have seen “level of delinquency on accounts” as a reason for denial of credit. The very best loans and credit offers will not be available if you have signs of previous delinquencies on credit accounts.

When you are late on a credit account, that missed payment can be reported to the credit bureaus by the lender. There is no legal requirement that they do so. Creditors often choose to voluntarily report such information to credit bureaus in order to motivate you to catch up your payments. Continue reading →

If you have ever been denied credit because you have “too few bank revolving accounts,” my response is “Congratulations!” You have so far avoided the head first plunge into credit card debt.

That being said, you may be unable to obtain certain lines of credit. Some types of revolving credit accounts may require that you demonstrate your creditworthiness through proper use of other revolving debt. Continue reading →

This is one of many reasons why you have less than a perfect credit score. If your credit report lists this reason, then you may need to address one of the biggest impacts on your credit scores. Continue reading →