What is a credit myth? Even though credit is considered a large part of a consumer’s life, do you know about the special way the system works to create that all important credit score? The score seems to follow you wherever you go. But wouldn’t it be nice to get some cash without having to worry about a credit score? If you know that your credit history is not that great, check out whether a payday loan can help you with your current financial needs. Many residents of Florida have made that choice. Join them and the others who have taken advantage of the easy, convenient, and secure process. What more can you ask for than to have cash direct deposited into your checking account by the next business day?
Most consumers are familiar with the FICO scoring model, also known as “Fair Isaac”. This is the scoring model that ranks consumer credit history from 300 to 850. Actually, there are other credit score models available to consumers and lenders, but pulling one or the other might not guarantee that a consumer will see the same score as a lender does. This is why it is probably a better idea to pay attention to the information on your credit history and how your credit history is ranked between poor to excellent. Because credit scores can vary from one credit bureau to another, you want to make sure that you know what risk level has been assigned to your credit information.
Credit bureaus can view what your payment history and balance on your monthly credit card bills are but they do not know if you are paying interest or not. That means if you are customarily paying only the minimum every month, it is not going to help your credit score any especially if you are carrying a high annual percentage rate. So, in other words, carrying a balance does not help to build credit.
Have you thought about cutting up and destroying the credit cards you don’t use? Closing credit cards can actually hurt your credit score. Experts say that if you do that, you are at risk of lowering your credit utilization ratio. So instead of cutting up unused cards, just consider making a couple of small payments a year to keep your credit utilization ratio intact and your payment history in good shape.
Some consumers believe that the more their income is, the better their credit score will be. That is not completely true. Although it might be true that the more you earn, the more you are apt to be able to pay your bills on time, it is also true that a credit bureau is not privy to that information. But, on the other hand, lenders frequently compare the income you listed on a loan application to the debts on your credit report in order to determine whether you can make monthly payments on time.
The most important thing to know when it comes to building credit history is that consumers have to use credit in order to build credit. So using cash does not improve or help your credit score. A lender is actually looking to see if you have an established payment history. One of the most effective ways to establish that you are credit worthy is to have paid off some kind of debt before. It is far better to demonstrate a responsible use of credit than to use cash all the time, especially for big ticket items.
One thing that consumers should know is that paying off a debt will not necessarily change your credit history or score overnight. Negative information only gets removed over time, for example, delinquent credit will remain on a credit report for 7 years, and bankruptcy information will remain on your credit history for 10 years. Many experts have said that you have a better chance of obtaining a mortgage loan, for example, if you do not have any delinquencies within the past 2 years. Of course, that is not the only criteria used to be approved for a bank loan. And bear in mind, that nowadays banks have become more diligent in determining who should qualify for a mortgage loan. Not everyone is lucky enough to have survived the economic turmoil over the past few years. Give yourself a break. Try considering an online payday loan to help with expenses you did not count on. A payday advance will give you back your confidence. And without a credit check.
If you have had bad luck, struggled to make ends meet during these tough economic times, were faced with an unexpected emergency, and forced to live paycheck to paycheck in spite of having a budget, you can consider the advantages of applying for a Florida payday loan. You can use a payday loan to pay down credit card debt. Many experts say that paying down credit card debt by 50% can increase your credit score and make for a more stellar credit history. Get started getting back on track.