Archive for the ‘building credit’ Category

5 Important Reasons Why You Should Monitor Your Credit Report and Scores Regularly

Monday, September 29th, 2014

When it comes to credit scores, many consumers try to keep their head in the sand. They’re afraid to know the truth, or they think it really doesn’t matter.

But it does matter. In this case, what you don’t know can hurt you, and knowledge can become power.

Your credit score or scores play a central role in your financial life, and can even affect your personal life. That’s why you should monitor your credit report and scores regularly, and why you should develop good credit habits to keep those scores as high as possible. A bonus to receiving your credit report is the good advice you’ll get regarding ways to raise those scores.

1. Your Scores Will Determine Your Access to credit.

Lenders look at those scores to determine their risk in lending to you. Thus, when your scores are high you’ll have an easier time obtaining credit. When they’re low, you may not be able to obtain credit at any price, especially if you need money for a business start-up.

If you know you’re going to want credit in the future, get busy raising those scores!

2. Your Credit Scores Will Determine the Interest Rate You’ll Pay

With high credit scores, you’ll be offered credit at lower interest rates than those with poor scores. When your scores are low, lenders are taking an increased risk that you’ll default. They want to be well compensated for taking that risk.

Think about credit cards, whose interest rates can vary from under 5′% to 25%. In fact, I’ve seen offers made to people with poor credit with rates over 70% – combined with an annual fee reaching upwards of $200. Borrowers with high credit scores generally pay no annual fee.

Then think about home mortgage loans, where a difference of 1% on each $100,000 owed amounts to almost $60 per month.

If you want to pay the least possible interest on your next purchase, start raising those scores!

3. High Credit Scores Make You Attractive to Landlords

Low scores make you a high risk and your rental application is apt to be flatly turned down. No landlord wants the risk of tenants who fail to pay rent – or who move out in the middle of the night.

Thus, even if you treat your housing well and have always paid your rent on time, low scores could prevent you from living in the location you prefer.

If you want to live in a prime location, get your credit scores as high as you can!

4. Poor Credit Scores Lead to Utility Deposits

Utilities such as electricity, water, gas, phone, and cable TV can’t repossess what they’ve sold you if you fail to pay at the end of the month. Thus, when your credit scores indicate that you’re a high risk, they’ll demand a deposit up front before providing you with service.

If you want utility companies to trust you, raise your credit scores!

5. Last but definitely not least – Monitoring your credit report and scores will help you avoid the huge headache of identity theft.

Identity theft is always painful, but it is MORE painful when it’s been allowed to continue for months on end.

Running regular checks on your credit scores will alert you to a sudden drop, which might indicate fraudulent activity. And when you actually read your credit report, you’ll know instantly if someone has obtained new credit, rented a house, signed up for utilities, or even gotten a new job in your name.

Reporting such theft instantly will minimize the damage and the pain.

Request your free credit report and scores from today.

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No Credit? Here’s a New Way to Build It

Wednesday, March 25th, 2009

Consumers with no credit history – and those who are trying to rebuild credit after experiencing financial difficulties – often find it nearly impossible to get that first loan or credit card to begin building a good credit score.

Unless you have a credit record to show that you’re a responsible debt payer, no one wants to give you credit. It gets even worse if you’ve got a past record of non-payment. And if you need to show responsible use of credit in order to get credit, it feels like you’re stuck between a rock and a hard place.

If you find yourself in this situation, you may feel very alone, but you’re not. It turns out that over 50 million Americans have little or no credit history. And millions more have a credit history that needs to be repaired.

The good news for you is that a company called Pay Rent Build Credit, Inc. (PRBC) is offering a solution. Called America’s Alternative Credit Bureau, they’ll help you build credit for bills you’ve already paid, even though those bills are typically not reported to traditional credit bureaus.

These are monthly expenses such as rent, telephone bills, insurance bills, cable and satellite TV bills, power bills, and even day care expenses. Typically, these are only reported to credit bureaus if your payments are late or in default.

For a small fee, PRBC, using information you supply, will verify your past payment of these accounts. Then, if you sign up through them for on-line bill pay, they’ll keep an ongoing record of payments.

Creditors with whom you’d like to do business can then request copies of your PRBC credit report - just the same way they request a credit report through any of the “Big 3″ Credit Bureaus. The difference is that you must first give permission.

Once you’ve shown a good record of payment of rent and 3 other bills for 12 months or more, a PRBC credit report can even help you qualify for a mortgage loan. In the meantime, it can help you get a credit card – or a better rate on a credit card, and can prove to a potential landlord or employer that you are a responsible consumer.

Often, consumers who have made a life-long habit of paying cash for every purchase are shocked and angered to find that they don’t qualify for a mortgage loan. They feel that they’re being penalized for responsible behavior – and they are. Mortgage companies, along with other credit issuers, want to see a track record of monthly payments. PRBC is helping those consumers prove that they are indeed credit worthy citizens.

Because the size of this market offers vast opportunities for profit, several other companies – including Fair Isssac – are either implementing or working on plans to implement some version of an alternative credit reporting service.

Author:Marte Cliff your resource for free credit reports, credit cards, loans, and ground breaking credit news

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.