In December I had emergent surgery for a spinal cord aneurysm. I have debts to several medical entities: hospital, surgeon, labs, etc. The debt isn't something I can pay except in small increments until I get a better job. I have heard some things that I'm trying to clarify/confirm: as long as there is some payment each year on each bill, the medical entities cannot negatively impact my credit; don't use credit cards to pay as this removes the medical bill protections, etc.
What are the facts in Texas? Where can I find complete and authoritative information on this subject?
Thanks in advance.
What is the impact on credit rating of slowly paying medical bills?
It is an urban legend that as long as you pay a little bit, the creditor has to take it. If you don't pay the bills when due, you are in default. They don't have to accept any payment plan. If you send small payments, they can keep the payment and sue anyway. Your small payments just keep restarting the Statute of Limitations (SOL), the timeframe to bring lawsuit.
Have you worked out payment arrangements with the individual medical providers? Stick with those payment arrangements. Medical providers do not normally report to credit bureaus. They also do not carry accounts for long periods. Many send delinquent accounts to collection agencies in 90 days.
If your account is sent to a collection agency, they will report it to the credit bureaus and it will show as a derogatory account in collections.
Since you don't have insurance, you have a good chance of negotiating settlement for 75%, maybe less, with the original doctors, technicians, labs. Hospitals tend to be more stuborn about wanting full payment.
Reply:Obtain a free annual credit report
http://www.associatedcontent.com/article...
Reply:Well let's see... Are they reporting this to your credit file? Are you sure about this? Did you started paying your bills by making a deal with the hospital the very first week you got your bills? Or you waited months before you worked out a deal with the hospital?, why I ask these question?
Simply because some hospitals don't even report unless you DEFAULT a debt, UNLESS they sold your account to a collection agency. So your Impact on your credit rating is ZERO. You know know what I mean? If they report making minium payment it's always A LOT better than not paying nothing. You won't have a perfect score but it will A LOT better than others, but remember that's only how the whole thing was started.
Monday, August 3, 2009
I have a credit rating question - I am mystified on how it works?
...My credit rating has been going continually down, according to my credit monitoring service. It is now only rated as "fair".
I only make credit card purchases when I have enough money in my bank account to pay the bill in whole when the bill arrives, and that is exactly what I do.
I use my cards to buy things on the Internet (usually quite small in amount), and occasionally to make large purchases such as airline tickets (twice in last two years) - for several thousand dollars.
One of my friends told me that making large purchases and always paying the balance in whole is bad - I am supposed to only make the minimum payment every month to have a good credit rating. This makes no sense to me. I would think that paying the balance as quickly as possible would be an indication of responsible financial behaviour and therefore I would be a lower credit risk with improving credit ratings.
Are there any credit card or bank employees out there who can explain this? Thanks.
I have a credit rating question - I am mystified on how it works?
Your friend is correct. You shouldn't pay of the entire balance every month. By doing so, you are not building any credit. Yes, you have the cards, yes you are paying them off, but there isn't enough time for the purchase and payments to show up on your credit. In order for a credit rating to go up, it can take up to 6 months of on-time payments (depending on the creditor) You pay the full balance off, there is no ongoing payments to report.
It is better to use the credit card for smaller purchases ($300 or less) and make payments for at least 6 months. Do this several times and your credit will start to build up. You don't have to pay just the minimum, but don't pay it off.
Also, get a copy of your credit report and check everything! Even with you paying off the balance each month, your score should not be going down. It probably wouldn't rise, but it shouldn't be dropping either.
You can get a free copy once a year here... https://www.annualcreditreport.com/cra/i...
Hope that helps
Reply:You may have liked that answer, but it's totally inaccurate and against everything you will ever read about how to manage your credit. Of course, if you could be bothered to read you wouldn't be here asking.
Good luck with your credit... you're going to need it. Report Abuse
Reply:I totally agree with Studly, there probably is something going on with your reports.
It could be anything. From a collection being added, whether it is yours or someone elses, to incorrect payment info or even possibly a split file.
You can check with Myfico to see your scores, but I would also suggest ordering your reports from each credit bureau. If you want your free reports, go to www.annualcreditreport.com. That is the only free report site you should order from. It is the governments site, all other free report sites are scam sites.
I wouldn't suggest ordering a tri-merge report from other companys. While tri-merges can be handy, if you already have your true reports, they can be misleading because they are not always accurate.
Reply:Sir,
What you are doing is the best time to do.. what the credit card company care for is on-time payments .. and if it is more than the minimum ,, then it is even better.
If you pay the minimum only, you will never pay off your balance, because the minimum payment includes only the interest + small part of the real debt amount.
The second thing.. you need to investigate that.. it is does not sound right.. somebody is playing with your credit score.
I came to USA only 4 years ago with no credit history.. and I made more than minimum payments and exactly did what you are doing .. and my credit score is very good.. some fraud is going on.. somebody may be is using your SSN to get loans and opening credit cards..
go to www.mycreditreport.com, pay 19.99/month and they will pull for you your credit score through the 3 major credit bureaus.. you need to know what is happening,.
Reply:Make sure you pay the FULL balance and not the minimum. Also, it depends on how much you spend. It's an unwritten rule that you should never spend more than 1/3 of your limit. Like if the limit is 300, don't go over like 100 each month, because you look needy.
Reply:The only thing I can see from your description that could be affecting your rating is the large purchases. One of the things considered is how close to the credit limit you get. Even if you pay it off, it's a ding to the rating if you get too close to maxing. That is viewed as a liklihood that some day you might max and NOT pay it back.
What you friend told you isn't right, sort of bordering on stupid. Credit card companies report payment history, high balance, etc., so paying off every month is a GOOD thing. Glad you saw through it.
Reply:what your friend said is partially correct. you never want to completely pay balances to 0 because in order to maintain a credit score you have to active accounts, however always keep your balances as low as possible the closer you get to your maximum spending limit the lower your score. also some vendors report to the reporting agencies at different times.not all report every month. your score could be very different from one day to the next depending on how the information is being updated.say for instance that you bought a airline ticket and paid the balance off does not mean that the reporting agencies has that information they might be showing a balance until there are notified otherwise. some credit card companies report once every 3 month so you can see the conflict this can cause.check your credit and make sure there no other erronious items that might alter your score and make sure all balances are correct with the reporting agencies.
Reply:I wonder what your total credit limit is. Having too much credit available can actually hurt your score. The theory is, if you get in trouble, you might max out everything and dig a hole you can never get out of.
To those who state your creditors don't have time to show a balance: the report includes the 'high balance' on each account. Most only update the account if there is activity that month. Therefore the fact the account status was reported is an indication of use.
Reply:The only thing I can think of is with you paying every thing off as soon as possible you arent letting the credit agencies see how you actually handle credit.
It is best to get a major credit card and spend some money on it and then make regular payments this way it shows you are repsonsible with your credit.
Reply:You need to take a close look at your credit report and be sure there is nothing in it that could effect your score. Maybe there is an overdue or collection account that was posted incorrectly to your history.
If you want to spend a little money, you can go to http://www.myfico.com and order a score from them. They also include a very detailed explanation of why your score is low, and what you can do to improve it.
I know the advice of only paying minimum payments is wrong. That will completely trash your debt/credit ratio.
I have seen recommendations of keeping a small balance on your account ($5-$10). Don't do this if you keep a high daily average, or if you have annual fees if you keep a balance.
Also consider using your card to pay bills you normally pay cash for (utilities, telephone, etc....). If you are diciplined on paying your bills as you claim, this is a great way to not only improve your credit, but you can get reward points on your card.
Personally, I'm betting something is up with your credit report, so be sure to look into that.
Reply:You use the credit card properly --- making payment on the mininum
would keep a 5,000 dollar debt going on for years.... I work for a retired teacher and she has always paid her credit debt off each month; she is 81 and I have worked for her over a period of 10 years.... her credit card rating is excellent and in fact she gets companies sending her credit cards and we shred them...because she only wants MasterCard and VISA.
Reply:How MANY cards do you have? having too many CC's can lower your rating. Has anyone been running credit checks on you? Each time one is ran, the rating goes down a little. Yes it sure does, crazy I know!!
Reply:Just a guess but I think this is the problem. ( personal experience) When you pay your credit cards in full each month, the credit companies never get the chance to report a balance. By never having a balance reported, it seems you have the available credit but never use it. Credit scoring is a formula that is based partially on how much you charge, and the ability to pay it down. I used a Fico Simulator some time ago, nothing raised my fico except increasing the balance on one of my credit accounts to over $1500. I had for many years paid them off each month. The increase in balance raised my score over 20pts on this simulator.
My guess for your falling credit score is no positive credit patterns, but new inquiries and new accounts being opened.
ginkgo
I only make credit card purchases when I have enough money in my bank account to pay the bill in whole when the bill arrives, and that is exactly what I do.
I use my cards to buy things on the Internet (usually quite small in amount), and occasionally to make large purchases such as airline tickets (twice in last two years) - for several thousand dollars.
One of my friends told me that making large purchases and always paying the balance in whole is bad - I am supposed to only make the minimum payment every month to have a good credit rating. This makes no sense to me. I would think that paying the balance as quickly as possible would be an indication of responsible financial behaviour and therefore I would be a lower credit risk with improving credit ratings.
Are there any credit card or bank employees out there who can explain this? Thanks.
I have a credit rating question - I am mystified on how it works?
Your friend is correct. You shouldn't pay of the entire balance every month. By doing so, you are not building any credit. Yes, you have the cards, yes you are paying them off, but there isn't enough time for the purchase and payments to show up on your credit. In order for a credit rating to go up, it can take up to 6 months of on-time payments (depending on the creditor) You pay the full balance off, there is no ongoing payments to report.
It is better to use the credit card for smaller purchases ($300 or less) and make payments for at least 6 months. Do this several times and your credit will start to build up. You don't have to pay just the minimum, but don't pay it off.
Also, get a copy of your credit report and check everything! Even with you paying off the balance each month, your score should not be going down. It probably wouldn't rise, but it shouldn't be dropping either.
You can get a free copy once a year here... https://www.annualcreditreport.com/cra/i...
Hope that helps
Reply:You may have liked that answer, but it's totally inaccurate and against everything you will ever read about how to manage your credit. Of course, if you could be bothered to read you wouldn't be here asking.
Good luck with your credit... you're going to need it. Report Abuse
Reply:I totally agree with Studly, there probably is something going on with your reports.
It could be anything. From a collection being added, whether it is yours or someone elses, to incorrect payment info or even possibly a split file.
You can check with Myfico to see your scores, but I would also suggest ordering your reports from each credit bureau. If you want your free reports, go to www.annualcreditreport.com. That is the only free report site you should order from. It is the governments site, all other free report sites are scam sites.
I wouldn't suggest ordering a tri-merge report from other companys. While tri-merges can be handy, if you already have your true reports, they can be misleading because they are not always accurate.
Reply:Sir,
What you are doing is the best time to do.. what the credit card company care for is on-time payments .. and if it is more than the minimum ,, then it is even better.
If you pay the minimum only, you will never pay off your balance, because the minimum payment includes only the interest + small part of the real debt amount.
The second thing.. you need to investigate that.. it is does not sound right.. somebody is playing with your credit score.
I came to USA only 4 years ago with no credit history.. and I made more than minimum payments and exactly did what you are doing .. and my credit score is very good.. some fraud is going on.. somebody may be is using your SSN to get loans and opening credit cards..
go to www.mycreditreport.com, pay 19.99/month and they will pull for you your credit score through the 3 major credit bureaus.. you need to know what is happening,.
Reply:Make sure you pay the FULL balance and not the minimum. Also, it depends on how much you spend. It's an unwritten rule that you should never spend more than 1/3 of your limit. Like if the limit is 300, don't go over like 100 each month, because you look needy.
Reply:The only thing I can see from your description that could be affecting your rating is the large purchases. One of the things considered is how close to the credit limit you get. Even if you pay it off, it's a ding to the rating if you get too close to maxing. That is viewed as a liklihood that some day you might max and NOT pay it back.
What you friend told you isn't right, sort of bordering on stupid. Credit card companies report payment history, high balance, etc., so paying off every month is a GOOD thing. Glad you saw through it.
Reply:what your friend said is partially correct. you never want to completely pay balances to 0 because in order to maintain a credit score you have to active accounts, however always keep your balances as low as possible the closer you get to your maximum spending limit the lower your score. also some vendors report to the reporting agencies at different times.not all report every month. your score could be very different from one day to the next depending on how the information is being updated.say for instance that you bought a airline ticket and paid the balance off does not mean that the reporting agencies has that information they might be showing a balance until there are notified otherwise. some credit card companies report once every 3 month so you can see the conflict this can cause.check your credit and make sure there no other erronious items that might alter your score and make sure all balances are correct with the reporting agencies.
Reply:I wonder what your total credit limit is. Having too much credit available can actually hurt your score. The theory is, if you get in trouble, you might max out everything and dig a hole you can never get out of.
To those who state your creditors don't have time to show a balance: the report includes the 'high balance' on each account. Most only update the account if there is activity that month. Therefore the fact the account status was reported is an indication of use.
Reply:The only thing I can think of is with you paying every thing off as soon as possible you arent letting the credit agencies see how you actually handle credit.
It is best to get a major credit card and spend some money on it and then make regular payments this way it shows you are repsonsible with your credit.
Reply:You need to take a close look at your credit report and be sure there is nothing in it that could effect your score. Maybe there is an overdue or collection account that was posted incorrectly to your history.
If you want to spend a little money, you can go to http://www.myfico.com and order a score from them. They also include a very detailed explanation of why your score is low, and what you can do to improve it.
I know the advice of only paying minimum payments is wrong. That will completely trash your debt/credit ratio.
I have seen recommendations of keeping a small balance on your account ($5-$10). Don't do this if you keep a high daily average, or if you have annual fees if you keep a balance.
Also consider using your card to pay bills you normally pay cash for (utilities, telephone, etc....). If you are diciplined on paying your bills as you claim, this is a great way to not only improve your credit, but you can get reward points on your card.
Personally, I'm betting something is up with your credit report, so be sure to look into that.
Reply:You use the credit card properly --- making payment on the mininum
would keep a 5,000 dollar debt going on for years.... I work for a retired teacher and she has always paid her credit debt off each month; she is 81 and I have worked for her over a period of 10 years.... her credit card rating is excellent and in fact she gets companies sending her credit cards and we shred them...because she only wants MasterCard and VISA.
Reply:How MANY cards do you have? having too many CC's can lower your rating. Has anyone been running credit checks on you? Each time one is ran, the rating goes down a little. Yes it sure does, crazy I know!!
Reply:Just a guess but I think this is the problem. ( personal experience) When you pay your credit cards in full each month, the credit companies never get the chance to report a balance. By never having a balance reported, it seems you have the available credit but never use it. Credit scoring is a formula that is based partially on how much you charge, and the ability to pay it down. I used a Fico Simulator some time ago, nothing raised my fico except increasing the balance on one of my credit accounts to over $1500. I had for many years paid them off each month. The increase in balance raised my score over 20pts on this simulator.
My guess for your falling credit score is no positive credit patterns, but new inquiries and new accounts being opened.
ginkgo
What credit cards in CANADA will I be approved for with a 529 credit rating?
I have paid almost everything off except for OSAP (of course it seems like eternity til that happens!)
I would like a credit card for emergencies and to re-establish my credit. Please help me find a credit card that is available in Canada!
What credit cards in CANADA will I be approved for with a 529 credit rating?
The other answers are right, with that credit score you're not likely going to get approved for any conventional cards, and you're likely stuck with a "secured" card to rebuild your credit.
Capital one is likely your best bet. Other secured cards require 100% of your credit limit as security (ie. $500 deposit for a $500 limit), Capital One varies and some qualify for a $750 limit with a $75 deposit (10%). Capital One will also convert your card to a normal credit card after 6, 9 or 12 months of good payment history (increasing your credit limit etc).
http://www.capitalone.ca
Next after Capital One I would recommend "Citizens Bank of Canada" for their secured Visa (this WILL require a 100% deposit), but as with the Capital One card they will convert it to a normal credit card (refunding your deposit) after 12 months of solid history.
https://www.citizensbank.ca/Personal/Pro...
(Note, the secured card is not listed on their website, you have to call 1.888.708.7800 and tell them you are interested in their "Secured Visa").
Also out there are Horizon Plus and HomeTrust, both these cards require a 100% deposit and neither of them will ever convert to a "normal" credit card. They will only increase your limit if you increase your security deposit and the only way to get your security deposit refunded is to cancel the credit card (which is less than optimal when trying to rebuild your credit history).
http://www.horizonplus.ca/index.html
http://www.hometrust.ca/securedvisa/
Hope this is a some help. Good luck!
Reply:Capital One Guaranteed Secured MasterCard®
http://capitalone.ca/canada/cards/guaran...
Reply:Home Trust has a secured visa
I would like a credit card for emergencies and to re-establish my credit. Please help me find a credit card that is available in Canada!
What credit cards in CANADA will I be approved for with a 529 credit rating?
The other answers are right, with that credit score you're not likely going to get approved for any conventional cards, and you're likely stuck with a "secured" card to rebuild your credit.
Capital one is likely your best bet. Other secured cards require 100% of your credit limit as security (ie. $500 deposit for a $500 limit), Capital One varies and some qualify for a $750 limit with a $75 deposit (10%). Capital One will also convert your card to a normal credit card after 6, 9 or 12 months of good payment history (increasing your credit limit etc).
http://www.capitalone.ca
Next after Capital One I would recommend "Citizens Bank of Canada" for their secured Visa (this WILL require a 100% deposit), but as with the Capital One card they will convert it to a normal credit card (refunding your deposit) after 12 months of solid history.
https://www.citizensbank.ca/Personal/Pro...
(Note, the secured card is not listed on their website, you have to call 1.888.708.7800 and tell them you are interested in their "Secured Visa").
Also out there are Horizon Plus and HomeTrust, both these cards require a 100% deposit and neither of them will ever convert to a "normal" credit card. They will only increase your limit if you increase your security deposit and the only way to get your security deposit refunded is to cancel the credit card (which is less than optimal when trying to rebuild your credit history).
http://www.horizonplus.ca/index.html
http://www.hometrust.ca/securedvisa/
Hope this is a some help. Good luck!
Reply:Capital One Guaranteed Secured MasterCard®
http://capitalone.ca/canada/cards/guaran...
Reply:Home Trust has a secured visa
How the credit rating helps in mibor or libor rates and is there any interest rate benefits for good rating?
is good credit rating helps the industry to get finance frm market and on low interest rate, and is there any source frm where someone got the information abt it
How the credit rating helps in mibor or libor rates and is there any interest rate benefits for good rating?
Mibor and Libor are inter bank rates and credit rating has nothing to do with Mibor and Libor. The spread over these benchmark rates ( % over benchmark) is the credit spread and this depends on teh credit rating of the borrower. Higher the credit rating, lower the spread. AAA rated customer may be able to get a loan with a spread of 50 basis points (0.50%) over the benchmark while a AA rated borrower may have to pay 1.25% over while for a A rated borrower, the quote may be in the region of 2.25% over the benchmark. MIBOR rates one can get on NSE WDM site while LIBOR rates for different tenors on FEDAI or RBI site.
How the credit rating helps in mibor or libor rates and is there any interest rate benefits for good rating?
Mibor and Libor are inter bank rates and credit rating has nothing to do with Mibor and Libor. The spread over these benchmark rates ( % over benchmark) is the credit spread and this depends on teh credit rating of the borrower. Higher the credit rating, lower the spread. AAA rated customer may be able to get a loan with a spread of 50 basis points (0.50%) over the benchmark while a AA rated borrower may have to pay 1.25% over while for a A rated borrower, the quote may be in the region of 2.25% over the benchmark. MIBOR rates one can get on NSE WDM site while LIBOR rates for different tenors on FEDAI or RBI site.
Credit rating - how is it linked to the individual?
A friend and myself were discussing this the other day, basically because my credit rating sucks as I rinsed overdrafts and credit cards whilst at Uni.
I'm moving house soon, and we don't see why I can't apply for a loan with a decent rate of interest (normally reserved for people with "good" credit history) to pay off my debts, simply by saying I've lived at that address for, say, the past 5 years, maybe even change some small details, such as date of birth, middle name etc to further remove that history from my records.
Does anyone here actually know exactly how your credit history is linked to you? We thought it might be National Insurance number, but that's not asked for when applying for credit cards / loans.
Cheers.
Credit rating - how is it linked to the individual?
Be very cautious! What you are suggesting is a criminal offence and not a good idea. Your best option is to go for a loan with a high interest rate as that's probably all that's open to you, but make sure you pay it off religiously and never miss a payment. This will improve your credit rating. There are other ways to do this too:
Your credit rating tells credit providers the level of risk they are taking by lending to you, and what the chances are of you paying them back, plus how easily they will be able to find you if you run off without paying.
So, if you are listed on the electoral roll, you've lived in one place for quite a few years, you have a landline at that address, you have worked at the same job for a few years etc. All these things show them you are permanently resident and less likely to disappear with their money. If you can say yes to all of those you gain good credit scores. The other aspect of your rating is your past credit history - how much you've borrowed, from how many lenders, how long ago, and crucially, how you paid it back. Did you pay just the mimimum payment each month (low score), did you always pay off the balance in full (high score)? Did you miss payments (very low score), did your account go to a collections agency or bailiff (very low score)? Did you have CCJs against you, or go bankrupt (extremely low score)?
So the credit reference agencies, such as Experian, have records of all these scores, whether pluses or minuses against you, and using this information future lenders can decide whether or not to accept you for credit. They do not see your individual file, but the credit reference agency will tell them your credit score.
Your credit rating used to be linked in to your address, but they changed this a few years ago, as many people with a good credit history were being linked in to previous occupants' bad debts.
The main personal data your credit history is linked to is your full name and date of birth. If you change these to try and fool the system, or change details on the form, for example, you pretend that you have lived at your house for 5 years instead of 1, you are then making a fraudulent application, which is a serious criminal offence carrying heavy sentences. So don't go there!
Contact Experian, the credit reference agency, and ask for a copy of your file. This costs about £2. You can check it for inaccuracies or out of date information, for example, perhaps you have now paid off one particular credit card, that is still showing as unpaid. They can update the file for you if you can provide proof.
The next step is to try to improve your rating. Get on the electoral roll (contact your local council). Apply for a credit card with a small credit limit, such as Vanquis card, a card specifically designed for customers with a bad credit history. The interest rates are very high, but you can improve your rating by using it "by the book". With a credit limit of just £200, for example, spend only £50 per month but always pay off the balance in full each month. This will improve your credit rating eventually, so start as you mean to go on! Previous bad debts will eventually be wiped off your rating after seven years.
http://www.vanquis.co.uk/home/Home.aspx
Reply:I think it will follow you
Reply:Your credit score is linked to every loan / phone and bill you have ever had, every address you have lived in and every credit/store card you have had. Changing information simply makes you unrecodnisable on the system and the system would reject any application if it doesnt recodnise you. Your best bet is to get a full credit report and tidy up any previous damage.
Reply:You can't falsify your name. They require your Social Security number and that must match the name you give them.
Even if one were to check "a falsified name" there would be no credit history at all.
No loan would be issued.
Reply:Hey...
I thought I would share with you an excellent web site based solely on credit, how it works, credit cards and other financial articles. It's an excellent learning resource. Some of the articles are what have made me base some of my decisions up to today.
At one point I had applied for one of there credit cards after reviewing them through the credit card list link... many to choose from. I hope my source helps you
Reply:It is name and address as well as Date of Birth this is so that someone will the same name living at the same address is not wrongly black marked.
If you try to fool the credit people they will find out and you will have to pay the loan back in full and be sent to prison for fraud.
They check with people like experion who have details of all credit cards, bank and catalogue shopping on it with points for paying on time, paying the full amount/minimum amount and generally how you manage your debts.
Reply:Primarily by your name and address. A family name and postcode are sufficient to positively identify nearly 95% of the popluation. When you add in the exact address, date of birth, and a first name initial you are uniquely identified in the credit reporting system.
Changing the details when you apply for credit isn't going to help you as there won't be any history of your name at that address or for that period of time.
You can't get prime rates simply because you've trashed your credit through your own actions.
Providing false details on a credit application form with the intent to defraud the creditor is a crimminal offense. At the very least you'll be found out and your application will be refused. And your credit record will probably be annotated to reflect the fraudulent attempt, further worsening your situation. In the worst case you could find yourself in front of a magistrate. Better you than me when it comes to that!
Reply:If you didn't know your credit is linked to you by the things you buy or lease. For example if you have a credit card and you max it out the credit card company keeps files on that. People keep files on everything. So when they run your credit it all comes up. And it doesn't erase until about 7 years later.
Reply:Read some credit tips on this site to help you with it
Reply:Usually, it is a combination of your name, your address, your date of birth, other credit you've had, etc. If you delete some of these bits of information, chances are they will not find you when they do a credit search and they'll most likely refuse you on that basis.
Reply:Heraclitus - There is but one constant and that is change.
The more things change the more they stay the same - "Sidere mens eadem mutato".
Why? The circumstances have changed but it looks like you have'nt! Data and information changes with time. Knowledge and more so wisdom, transcends time.
You can't run away from yourself!
Reply:Yes, I can help you understand this.
Your credit is based on your National insurance number. At birth you were given a number, that co-insides with your birth-date and year. You can not change these date's on applications, or it will come back as not valid.
You need to use the exact dates and numbers for it to come out correctly.
credit is based on your history. This will take time and time is patience. It sounds like you are just getting started, so you will need letters from friends that can say you have good credit with them. This should help.
I wish you great luck with this.
I'm moving house soon, and we don't see why I can't apply for a loan with a decent rate of interest (normally reserved for people with "good" credit history) to pay off my debts, simply by saying I've lived at that address for, say, the past 5 years, maybe even change some small details, such as date of birth, middle name etc to further remove that history from my records.
Does anyone here actually know exactly how your credit history is linked to you? We thought it might be National Insurance number, but that's not asked for when applying for credit cards / loans.
Cheers.
Credit rating - how is it linked to the individual?
Be very cautious! What you are suggesting is a criminal offence and not a good idea. Your best option is to go for a loan with a high interest rate as that's probably all that's open to you, but make sure you pay it off religiously and never miss a payment. This will improve your credit rating. There are other ways to do this too:
Your credit rating tells credit providers the level of risk they are taking by lending to you, and what the chances are of you paying them back, plus how easily they will be able to find you if you run off without paying.
So, if you are listed on the electoral roll, you've lived in one place for quite a few years, you have a landline at that address, you have worked at the same job for a few years etc. All these things show them you are permanently resident and less likely to disappear with their money. If you can say yes to all of those you gain good credit scores. The other aspect of your rating is your past credit history - how much you've borrowed, from how many lenders, how long ago, and crucially, how you paid it back. Did you pay just the mimimum payment each month (low score), did you always pay off the balance in full (high score)? Did you miss payments (very low score), did your account go to a collections agency or bailiff (very low score)? Did you have CCJs against you, or go bankrupt (extremely low score)?
So the credit reference agencies, such as Experian, have records of all these scores, whether pluses or minuses against you, and using this information future lenders can decide whether or not to accept you for credit. They do not see your individual file, but the credit reference agency will tell them your credit score.
Your credit rating used to be linked in to your address, but they changed this a few years ago, as many people with a good credit history were being linked in to previous occupants' bad debts.
The main personal data your credit history is linked to is your full name and date of birth. If you change these to try and fool the system, or change details on the form, for example, you pretend that you have lived at your house for 5 years instead of 1, you are then making a fraudulent application, which is a serious criminal offence carrying heavy sentences. So don't go there!
Contact Experian, the credit reference agency, and ask for a copy of your file. This costs about £2. You can check it for inaccuracies or out of date information, for example, perhaps you have now paid off one particular credit card, that is still showing as unpaid. They can update the file for you if you can provide proof.
The next step is to try to improve your rating. Get on the electoral roll (contact your local council). Apply for a credit card with a small credit limit, such as Vanquis card, a card specifically designed for customers with a bad credit history. The interest rates are very high, but you can improve your rating by using it "by the book". With a credit limit of just £200, for example, spend only £50 per month but always pay off the balance in full each month. This will improve your credit rating eventually, so start as you mean to go on! Previous bad debts will eventually be wiped off your rating after seven years.
http://www.vanquis.co.uk/home/Home.aspx
Reply:I think it will follow you
Reply:Your credit score is linked to every loan / phone and bill you have ever had, every address you have lived in and every credit/store card you have had. Changing information simply makes you unrecodnisable on the system and the system would reject any application if it doesnt recodnise you. Your best bet is to get a full credit report and tidy up any previous damage.
Reply:You can't falsify your name. They require your Social Security number and that must match the name you give them.
Even if one were to check "a falsified name" there would be no credit history at all.
No loan would be issued.
Reply:Hey...
I thought I would share with you an excellent web site based solely on credit, how it works, credit cards and other financial articles. It's an excellent learning resource. Some of the articles are what have made me base some of my decisions up to today.
At one point I had applied for one of there credit cards after reviewing them through the credit card list link... many to choose from. I hope my source helps you
Reply:It is name and address as well as Date of Birth this is so that someone will the same name living at the same address is not wrongly black marked.
If you try to fool the credit people they will find out and you will have to pay the loan back in full and be sent to prison for fraud.
They check with people like experion who have details of all credit cards, bank and catalogue shopping on it with points for paying on time, paying the full amount/minimum amount and generally how you manage your debts.
Reply:Primarily by your name and address. A family name and postcode are sufficient to positively identify nearly 95% of the popluation. When you add in the exact address, date of birth, and a first name initial you are uniquely identified in the credit reporting system.
Changing the details when you apply for credit isn't going to help you as there won't be any history of your name at that address or for that period of time.
You can't get prime rates simply because you've trashed your credit through your own actions.
Providing false details on a credit application form with the intent to defraud the creditor is a crimminal offense. At the very least you'll be found out and your application will be refused. And your credit record will probably be annotated to reflect the fraudulent attempt, further worsening your situation. In the worst case you could find yourself in front of a magistrate. Better you than me when it comes to that!
Reply:If you didn't know your credit is linked to you by the things you buy or lease. For example if you have a credit card and you max it out the credit card company keeps files on that. People keep files on everything. So when they run your credit it all comes up. And it doesn't erase until about 7 years later.
Reply:Read some credit tips on this site to help you with it
Reply:Usually, it is a combination of your name, your address, your date of birth, other credit you've had, etc. If you delete some of these bits of information, chances are they will not find you when they do a credit search and they'll most likely refuse you on that basis.
Reply:Heraclitus - There is but one constant and that is change.
The more things change the more they stay the same - "Sidere mens eadem mutato".
Why? The circumstances have changed but it looks like you have'nt! Data and information changes with time. Knowledge and more so wisdom, transcends time.
You can't run away from yourself!
Reply:Yes, I can help you understand this.
Your credit is based on your National insurance number. At birth you were given a number, that co-insides with your birth-date and year. You can not change these date's on applications, or it will come back as not valid.
You need to use the exact dates and numbers for it to come out correctly.
credit is based on your history. This will take time and time is patience. It sounds like you are just getting started, so you will need letters from friends that can say you have good credit with them. This should help.
I wish you great luck with this.
How to improve credit rating?
I have minimal debt on my credit rreport (less than $2000) but there is some that went to collection and is still outstanding, any suggestions on how to repair and rebuild my credit rating? Should I go to credit councelling? or is that also a negative on your credit report??
How to improve credit rating?
First, it would help to know what makes up your score. Here's a breakdown.
Payment history 35%
Amount of debt that's owed 30%
Length of time that credit's been established 15%
Types of credit 10%
Inquiries and New accounts 10%
Now, the biggest killer of a credit score is paying late and having a lot of debt. What you may need to do is to get a copy of your credit report and http://www.annualcreditreport.com... to see what and how much you owe.
Once you get your reports look and see how much you owe. The easiest way would be to find the smallest amounts and the ones that are the most recent first. Contact the collectors and negotiate a "payoff for deletion". That's a payoff amount that will clear the debt off your credit report. If you're able to get them to agree to this, it is necessary to get something in writing on their company letterhead before you send them a dime.
You really don't need to go to credit counseling, as that would reflect negatively on your report.
After you've cleared all of your delinquent debt, then review your report to make sure that there isn't any inaccurate information. If it is, then you should immediately dispute that with the bureaus.
If you have a close friend or family member with excellent credit, ask them if they can add you as an authorized user on their credit cards. You do NOT need a card as this would only be for reporting purposes only. Their payment history would be included on your credit report if you're able to be added.
Another thing would be to open ONE credit card. The easiest one to get would be a secured credit card. You would have to put a deposit upfront to secure the same amount in a line of credit, but at least this way you wouldn't be declined and depending on how much you put in the security deposit, YOU control the credit line, instead of the credit card company telling you how much THEY think you should have. The key is simple: make small purchases that can be paid off in full, on time every month. And you may want to increase your credit line by adding to the security deposit every 2 months or so. That way after a year of perfect payment history, you'll get the deposit back with possible interest, and the card will convert into an unsecured one, not to mention with a credit line that you will be happy with.
I have another option that also helps but it takes time. If you're able to get a secured credit card and get up to at least a $1000 credit line, then you're in good shape to do the next option which is open up a certificate of deposit and then take out a collateral loan against it for the same amount. I'll give you an example: Let's say that I opened up a secured card got the deposit up to $2500 before it went unsecured. Well, I'm going to get that deposit back becuase I don't need in anymore. From there, I would open up a certificate of deposit where I do my banking and then take out a signature loan using the certificate of deposit as collateral, kind of the same way that I did with the credit card. Now I would take the proceeds from the loan and put THAT into a savings account to get interest off of that. Then I would pay the monthly payment every month for at least 9 months for it to show on my credit then I would pay it off. Not only have I boosted my score by showing positive payment history on a loan, but I'm still saving money in the process with the Certificate of deposit!
Finally, another thing you can do is to report montly payments like rent, utlilites, insurance, wireless phone, and other bills that don't show up on your credit reports to a reporting agency called PRBC. It helps people build credit by reporting payments to monthly bills that don't show up on credit reports, to give a more accurate picture of your payment history. Current and previous history up to 3 years back can be reported and scored in a report that can be used with your traditional credit reports.
Hopefully, with these steps you can be well on your way to getting your credit back on the right track!
Good luck
Reply:pay bills , get your credit cards under %30 used on credit available
Reply:Pay all your bills, on time, every time.
Reply:first off...paid collection is WAY better the non paid collection..first pay off the collections(as fun as that may sound) second your credit score is based off how much credit to debit you have...how much you make to how much you pay. Credit cards are good but you need to make sure there always paid off. Lets say you have a 1000$ card...if you have 900 charged up on it the credit companys dont like that...they like to see that its paid down and you have a good avilable balance. just pay off thoses collections thats what will help you out
azalea tree
How to improve credit rating?
First, it would help to know what makes up your score. Here's a breakdown.
Payment history 35%
Amount of debt that's owed 30%
Length of time that credit's been established 15%
Types of credit 10%
Inquiries and New accounts 10%
Now, the biggest killer of a credit score is paying late and having a lot of debt. What you may need to do is to get a copy of your credit report and http://www.annualcreditreport.com... to see what and how much you owe.
Once you get your reports look and see how much you owe. The easiest way would be to find the smallest amounts and the ones that are the most recent first. Contact the collectors and negotiate a "payoff for deletion". That's a payoff amount that will clear the debt off your credit report. If you're able to get them to agree to this, it is necessary to get something in writing on their company letterhead before you send them a dime.
You really don't need to go to credit counseling, as that would reflect negatively on your report.
After you've cleared all of your delinquent debt, then review your report to make sure that there isn't any inaccurate information. If it is, then you should immediately dispute that with the bureaus.
If you have a close friend or family member with excellent credit, ask them if they can add you as an authorized user on their credit cards. You do NOT need a card as this would only be for reporting purposes only. Their payment history would be included on your credit report if you're able to be added.
Another thing would be to open ONE credit card. The easiest one to get would be a secured credit card. You would have to put a deposit upfront to secure the same amount in a line of credit, but at least this way you wouldn't be declined and depending on how much you put in the security deposit, YOU control the credit line, instead of the credit card company telling you how much THEY think you should have. The key is simple: make small purchases that can be paid off in full, on time every month. And you may want to increase your credit line by adding to the security deposit every 2 months or so. That way after a year of perfect payment history, you'll get the deposit back with possible interest, and the card will convert into an unsecured one, not to mention with a credit line that you will be happy with.
I have another option that also helps but it takes time. If you're able to get a secured credit card and get up to at least a $1000 credit line, then you're in good shape to do the next option which is open up a certificate of deposit and then take out a collateral loan against it for the same amount. I'll give you an example: Let's say that I opened up a secured card got the deposit up to $2500 before it went unsecured. Well, I'm going to get that deposit back becuase I don't need in anymore. From there, I would open up a certificate of deposit where I do my banking and then take out a signature loan using the certificate of deposit as collateral, kind of the same way that I did with the credit card. Now I would take the proceeds from the loan and put THAT into a savings account to get interest off of that. Then I would pay the monthly payment every month for at least 9 months for it to show on my credit then I would pay it off. Not only have I boosted my score by showing positive payment history on a loan, but I'm still saving money in the process with the Certificate of deposit!
Finally, another thing you can do is to report montly payments like rent, utlilites, insurance, wireless phone, and other bills that don't show up on your credit reports to a reporting agency called PRBC. It helps people build credit by reporting payments to monthly bills that don't show up on credit reports, to give a more accurate picture of your payment history. Current and previous history up to 3 years back can be reported and scored in a report that can be used with your traditional credit reports.
Hopefully, with these steps you can be well on your way to getting your credit back on the right track!
Good luck
Reply:pay bills , get your credit cards under %30 used on credit available
Reply:Pay all your bills, on time, every time.
Reply:first off...paid collection is WAY better the non paid collection..first pay off the collections(as fun as that may sound) second your credit score is based off how much credit to debit you have...how much you make to how much you pay. Credit cards are good but you need to make sure there always paid off. Lets say you have a 1000$ card...if you have 900 charged up on it the credit companys dont like that...they like to see that its paid down and you have a good avilable balance. just pay off thoses collections thats what will help you out
azalea tree
What can one do to improve credit rating after having low credit score?
Its very difficult obtaining a good fair credit card with high amounts on them. I currently only have a 300 limit. Will a secure credit card help to increase the credit score? Any advice. I'm also not sure if I should pay off the credit cards that expire within the next couple of years from the credit report.
What can one do to improve credit rating after having low credit score?
I'm not knocking the 2 posters before me, but they really didn't answer your question. And to answer your question, yes, a secured credit card would DEFINITELY help your situation. You can use the secured card for 2 things. to establish new credit, and also start up an emergency fund from the deposit that you can use later on to lighten the burden on your credit cards. The best way to manage the card is to make small purchases ($20/max) that you can easily pay off every month. This way, you show activity that's building credit WITHOUT going into debt. Only spend what you can afford to pay, simple as that.
As far as the credit cards that are going to expire from your report, I'll take it that it's close to 7½ years, then they'll fall off. In this case, I wouldn't bother, unless you're wanting to really spend the money. And even then if you plan on doing that, I would negotiate a "pay to delete", which is a payment in exchange for removing it from the report. Since the accounts are a lot older and will stop reporting soon, you have a good chance to pay much less in exchange for removing them. I posted some links that explain this more in detail if you really want to pursue clearing them up sooner, if not just wait it out and let it take its course.
Reply:The only way to build a high credit score is to borrow money and make payments on time. The only way to keep a high score is to keep borrowing money and keep making payments on time. All you get is debt. All a high score is good for is getting into debt.
Go to http://www.daveramsey.com and listen to his radio show. He has lots of great advice on money and debt. It doesn't cost a dime to listen.
Reply:You don't really need credit cards...daveramsey.com has all of the information you will need.
What can one do to improve credit rating after having low credit score?
I'm not knocking the 2 posters before me, but they really didn't answer your question. And to answer your question, yes, a secured credit card would DEFINITELY help your situation. You can use the secured card for 2 things. to establish new credit, and also start up an emergency fund from the deposit that you can use later on to lighten the burden on your credit cards. The best way to manage the card is to make small purchases ($20/max) that you can easily pay off every month. This way, you show activity that's building credit WITHOUT going into debt. Only spend what you can afford to pay, simple as that.
As far as the credit cards that are going to expire from your report, I'll take it that it's close to 7½ years, then they'll fall off. In this case, I wouldn't bother, unless you're wanting to really spend the money. And even then if you plan on doing that, I would negotiate a "pay to delete", which is a payment in exchange for removing it from the report. Since the accounts are a lot older and will stop reporting soon, you have a good chance to pay much less in exchange for removing them. I posted some links that explain this more in detail if you really want to pursue clearing them up sooner, if not just wait it out and let it take its course.
Reply:The only way to build a high credit score is to borrow money and make payments on time. The only way to keep a high score is to keep borrowing money and keep making payments on time. All you get is debt. All a high score is good for is getting into debt.
Go to http://www.daveramsey.com and listen to his radio show. He has lots of great advice on money and debt. It doesn't cost a dime to listen.
Reply:You don't really need credit cards...daveramsey.com has all of the information you will need.
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