Credit lending is serious business – nothing else legal in this world has let people spend quite as much money as credit has. If you are a responsible consumer, your credit is something that needs to be maintained and taken care of… kind of like a lawn. If it’s too high, people won’t trust you. If it’s too low, nobody will respect you. Bad puns aside, because the credit lending business is serious, the credit score-checking business also is. Continue reading
Credit
Too Few Accounts With Recent Payment Information
Older unused credit accounts fade in influence, leaving your active credit accounts as the primary indicator of your creditworthiness. As such, it is important to make sure that you maintain multiple active credit accounts if you want to be rewarded with higher credit scores. Continue reading
What is an account reage?
Re-aging is the process of rolling back your credit card. If something comes up and you happen to miss a few payments, you can ask your creditor to re-age your account. If they agree, it will be just like it was before you missed the payments – no more late fees or missed payments. You will still owe them just as much as you did before you re-aged it – the missed payments aren’t just wiped out – but their effect on your delinquency is. Continue reading
Time Since Most Recent Account Opening is Too Short
If you just opened a new credit account, you probably should think twice before applying for any new credit. Lenders consider consumer credit as a privilege and a responsibility that must be taken seriously. Continue reading
No Recent Bankcard Balances
Maybe you thought your credit was pretty good. You followed the rules by paying off your balances and even kept those cards open so that they would continue to age. Yet, if you have not used your major credit cards, they tend to provide less of a benefit. This is likely the case if your credit report is flagged with the “no recent bankcard balances” risk code. Continue reading
Number of Established Accounts
FICO credit scoring models reserve 15% of their formulas for factors that indicate duration of credit history. While having an account open for many years definitely helps increase your average account age, most lenders want to see that you have established a number of accounts with a lengthy credit history in order to classify you as a lower credit risk. Of course, those accounts must be in good standing to actually help you. Continue reading
Number of Revolving Accounts
The credit bureau risk score reason “number of revolving accounts” is probably the most misunderstood risk factor that may affect your credit decisions. There is probably more wrong advice associated with this risk factor than any other. Continue reading
No Recent Revolving Balances
Welcome to the most misunderstood aspect of credit scoring! This code is the source of more misinformation and poor advice than any other. Even some bankers and real estate reps will tell you that having no recent revolving balances can be corrected by carrying debt of around 30% of your credit limits. This advice is dead wrong. Continue reading
What is the credit limit?
A Credit Limit, as defined by investorwords.com, is “the maximum amount of credit that a bank or other lender will extend to a customer, or the maximum that a credit card company will allow a card holder to borrow on a single card”1. Continue reading
Number of Bank or National Revolving Accounts with Balances
If you have ever been told that you have too many bank or national revolving accounts with balances, then you might be predisposed to future delinquencies. While your current lenders may not like the higher risk, you can bank on new lenders to deny your credit application. Continue reading
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