subject: Credit Building Tips That Can Help You Enahnce A Credit Score [print this page] A credit report contains a wealth of information negative and positive information, including basics like your name, address, social security number, and employment history. Make sure and check that all your personal information is correct. A credit report will list your credit history, with information on the types of accounts you have got open, how long they have been established, what their balances are, and if they are current or derogatory. Any recent credit inquires will also report on your credit report so that any potential creditors can determine if you have been shopping around for new credit. While all this information can be very helpful to both consumers and lenders, the most important information to all parties seems to be the credit score.
A credit score is simply a three-digit number between 300-850 most credit reporting agencies use the Fico scoring technology to grade your credit. Generally, a credit report will contain three credit scores, one for each of the main credit bureaus. These credit scores are based on your potential risk to a lender, all the information found in your credit report can affect you from getting a loan. These credit scores are simply a numerical representation of your credit risk, based on all that information. So if you have got a lot of good information on your credit report, your associated credit scores should be high to reflect that. The opposite is also true.
Understanding what the credit card companies, and how they make money should be what you look at before taking a loan. Being responsible and understanding all the fine print before committing your self, is how you can improve your credit score.
Here is a list of common fees charged by credit card companies:
Late payment fee
Over-the-limit fee
Pay-by-phone fee
Balance transfer fee
Annual fee
Return payment fee
Return check fee
Cash advance fee
Foreign transaction fee
Finance charges
It's not just that you'll need good credit to get decent interest rates when you're ready to buy a home or a car. Your credit history can determine whether you get a good job, a decent apartment, a deal on your cell phone and reasonable rates on insurance. Some negative items that can hold you back are late payment, maxing out your credit cards charge offs, repos can haunt you for years.
The fastest way to establish a credit history can be to "borrow" another's record, either by being added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.
Having a co-signer can allow you to qualify for loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit score around 60 points. IF you are late or default on a loan, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well. So be really responsible and ready before taking on a loan.
Being added as a joint account holder also has its risks, for you as well as the person giving you access to the card.
If your father adds you to his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. You become responsible for any debt on the card, and it's difficult to get your name removed. Any late payments or other problems could make it harder for you to get future credit than if you'd established your history without help. So make sure the person you choose to add you has a good report with the lender so it can effect you positively.
