Is your Credit Score Too High ?

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Is your Credit Score Too High ?

Apparently there is a way to increase your credit score and it is probably not what you think it is. When asked this question randomly at a college, most students reported that the way to increase you credit score was to pay off your bills every month and on time. Some home owners said that the way to do so was to pay your mortgage on time and try to remove bad references from your credit records. Still yet others mentioned tricks such as constantly querying the credit beaurea and challenging them to respond to you within a period of time mandated by law. Truthfully, enough people mentioned the latter, that it appears that this somewhat underhand method has some validity in some jurisdictions.

Invariably however, what appears to be missing from nearly all the responses was an understanding of not of how credit works because most of us can figure that one out, but the understanding of the thinking/reasoning behind higher credit scores and what loan institutions are really looking for. So, myth number 1. Loan institutions love people who pay off their bills on time every month. Really? If this were the case, how would a loan institution make any money? ha ha Loan institutions love people who maintain a balance that they can get charged interest on. And thats the truth.

Ok, Question number 2. Big borrowers who are simply big borrowers are simply loved by the banks. C'mon is this true ? If this were the case, people who couldn't repay loans would get huge amounts of credit and constantly end up in repayment problems. Anyway, if I am wrong on this one, I would be the second in the line chasing you to the nearest bank for a mega loan. I have had my eye on some New York Prime Property for a while now. But this isn't true is it? So perhaps this is not the answer either. Perhaps the answer lies somewhere in between. Loan institutions love clients who pay something on their bills each month ( preferably just the interest and a little more ) and whom appear to have the ongoing ability to manage/to pay down on the debt load. I.e. Fifty thousand in available personal credit, 22,000 used already. The key phrase here being "ongoing ability " and "debt ratio". Ongoing ability is why some older retired persons with otherwise good credit may sometimes have difficulty refinancing longer term loans. They are viewed as being possible risks because of the "ongoing income" requirement.

So from what we have seen here, the best Candidate is not just someone who has no defaults on their credit rating, such a person may get to 650 on the credit score but may not be able to get a credit score of 800 or more. It is expected that most people who have been working on improving their credit scores will have few defaults though not many. So the key issue for those looking to increase their credit scores from 600 to 800 leans more towards something else.

The absolute best candidate is someone with a favorable credit to debt ratio, meaning they have room to increase their debt, and has shown the long term ability to handle an ongoing balance. Note that balance does not mean not necessarily paying it off every month. Watch the video and learn not only what the bank wants to see, but how you can in the next few days influence positively your credit score. Once you understand the math, you are golden.

Article Source: Credit Card Bad Credit People

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Going for a loan, Mtg or Lease. Increase your credit score first and get a better loan rate from your lender.

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Apparently there is a way to increase your credit score and it is probably not what you think it is. When asked this question randomly at a college, most students reported that the way to increase you credit score was to pay off your bills every month and on time. Some home owners said that the way to do so was to pay your mortgage on time and try to remove bad references from your credit records. Still yet others mentioned tricks such as constantly querying the credit beaurea and challenging them to respond to you within a period of time mandated by law. Truthfully, enough people mentioned the latter, that it appears that this somewhat underhand method has some validity in some jurisdictions. 
Invariably however, what appears to be missing from nearly all the responses was an understanding of not of how credit works because most of us can figure that one out, but the understanding of the thinking/reasoning behind higher credit scores and what loan institutions are really looking for. So, myth number 1. Loan institutions love people who pay off their bills on time every month. Really? If this were the case, how would a loan institution make any money? ha ha Loan institutions love people who maintain a balance that they can get charged interest on. And thats the truth. 
Ok, Question number 2. Big borrowers who are simply big borrowers are simply loved by the banks. C'mon is this true ? If this were the case, people who couldn't repay loans would get huge amounts of credit and constantly end up in repayment problems. Anyway, if I am wrong on this one, I would be the second in the line chasing you to the nearest bank for a mega loan. I have had my eye on some New York Prime Property for a while now. But this isn't true is it? So perhaps this is not the answer either. Perhaps the answer lies somewhere in between. Loan institutions love clients who pay something on their bills each month ( preferably just the interest and a little more ) and whom appear to have the ongoing ability to manage/to pay down on the debt load. I.e. Fifty thousand in available personal credit, 22,000 used already. The key phrase here being "ongoing ability " and "debt ratio". Ongoing ability is why some older retired persons with otherwise good credit may sometimes have difficulty refinancing longer term loans. They are viewed as being possible risks because of the "ongoing income" requirement. 
So from what we have seen here, the best Candidate is not just someone who has no defaults on their credit rating, such a person may get to 650 on the credit score but may not be able to get a credit score of 800 or more. It is expected that most people who have been working on improving their credit scores will have few defaults though not many. So the key issue for those looking to increase their credit scores from 600 to 800 leans more towards something else. 
The absolute best candidate is someone with a favorable credit to debt ratio, meaning they have room to increase their debt, and has shown the long term ability to handle an ongoing balance. Note that balance does not mean not necessarily paying it off every month. Watch the video and learn not only what the bank wants to see, but how you can in the next few days influence positively your credit score. Once you understand the math, you are golden. Article Source: <a href="http://www.allbestarticles.com" target="_blank">Credit Card Bad Credit People</a> About the Author: Going for a <a href="http://trevorweir.com/credit/is-there-a-way-to-increase-your-credit-score/">loan</a>, Mtg or Lease. Increase your <a href="http://trevorweir.com/credit/is-there-a-way-to-increase-your-credit-score/">credit score</a> first and get a better loan rate from your lender.