Financial Handbooks For Success: Credit Fundamentals

The following pages are interesting, and hopefully useful excerpts from my EBook “Credit Fundamentals”.

 This is the first installment of the upcoming series “Financial Handbooks for Success”. Click the external link to purchase the full version.

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From the Section:

LITTLE KNOWN CREDIT TIPS & SECRETS

……like a lot of our dreams in life, we’ll enthusiastically set out on a project; but if it turns out in a negative way, we tend to give up and never try again. But there is wisdom in the saying that if you get knocked down once, then you should get up and give it another shot. This is not only true with life but also with credit.  As evidence of this, here are some facts that most consumers didn’t know was possible in the credit world – I hope it serves to let you know that anything is possible; especially in the world of finance:

·       It’s easier to finance a car if you’ve just had a BK7 discharged than if you only had a recent 30 day late – yes, it’s true! As lenders we would rather lend to someone who has no debts (BK7) and can’t file BK (especially if you just discharged one) instead of someone who appears to be having current credit issues. In fact, many “special financing” departments at New / Used car dealerships target recent BK discharges as ways to get new business.

·       A simple way to boost your credit score if you have been denied for a credit card or other credit is to have a trusted friend or relative allow you to be added to their account as an “authorized user”. On credit bureaus this helps add activity periods, credit availability, and good standing to help…………

 From the Section:

GETTING POSITIVE CREDIT / IMPROVING SCORES

…………..now, a few details about paying back old negative debt on your bureau and how it affects your credit scores. Many people have experienced the drama of having a collector call and having nervously agreed to a monthly payment plan to take care of a delinquent debt. This may sound like a great idea – for the collector. However, in your case you most likely have helped to contribute to lowering your credit score even further.

 The problem with making monthly payment arrangements for collections accounts is that when the collection agency records your payment on your bureau AND the account is not resolved, the account will be treated as a recently occurring negative event and your score will drop accordingly. To avoid having your score drop while doing the right thing for your credit you will want to……….

From the Section:

SCENARIOS THAT LOWER YOUR FICO SCORES

……..there are many otherwise knowledgeable people out there that believe that if you just make your payment when your bill comes(yes! important), or worst case if you pay your bills before being 30 days late then you’ll have good credit. This is absolutely not true! No, you won’t have an open 30 day late on your account, but your bureau scores will be affected by more than if you’re delinquent on your bill.

For example, one of the most important areas has to do with the amount of your available credit that is used. It is estimated that up to 30% of your credit score is influenced by your available credit, or put another way, the lack of it. I’ll give you an example - you have a credit card with a $100 credit line. If you only use $20 dollars of that credit then that is only 20%, and you still have considerable room, percentage wise, to use that credit line. But if you end up using $80 or 80 percent of your available credit, then your purchasing power then becomes much less. This is also how the credit agencies look at it; your ability to…………

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Ok, that's great stuff right?!! But to get the easy to read, simple to follow credit information that you can use now, as well as tops / historical facts then click the external link to purchase "Credit Fundamentals".