Your credit utilization ratio is one of the most important factors you must understand when it comes to your credit. In short, your credit utilization ratio is the debt that you owe to the total credit limit of every revolving account on your report. When it comes to your credit report, your credit utilization ratio can have a major impact. In fact, many aren’t aware that their credit utilization ratio makes up a whopping 30% of their credit score. In essence, if you have a high credit utilization ratio overall, it can drag your credit report down in the…
When it comes to negative information on your credit report, it is worth noting that it can only stay on your report for 10 years max in the case of a Chapter 7 Bankruptcy. In any other case, it can only stay on your credit report for every seven years. That sounds right, right? The credit bureaus are mandated by the Fair Credit Reporting Act, which forces them to remove negative information on a consumer credit report within the span of seven to ten years. The amount of time that certain information takes to disappear completely depends on that information.…
When it comes to the risk obtained by lenders and consumers, secured credit and unsecured credit are two very different things. Come with us as we explore these two different types of credit and how they can have an impact on your credit score. What Is Secured Credit? Any form of credit that is backed by a physical asset for collateral is what we call secured credit. If you borrow with secured credit and default on your loan, the lender can strip you of your asset to recover the loss they endured. Whenever you take an auto loan out, for…
Your credit score is what tells banks and lenders whether or not they can count on you to make payments. A good credit score is an indicator that you have been financially responsible over time. Unfortunately, credit scores can be quite complex and there is a ton of misinformation out there that leads people to make bad financial decisions in order to boost their scores. Today, we want to take you through five common credit score myths that you should avoid getting sucked into at all costs. You Can Boost Your Credit By Making Tons of Small Payments All…
When people come to us here at Boost Credit 101, they are often looking for ways to improve their credit scores with tradelines. Of course, credit scores are complex. You need to understand just what it is that you are trying to improve before spending money, right? At least, that would be the smart thing to do. Essentially, improving your credit score means understanding the components found within it. What Is A Credit Score? At its most basic definition, a credit score is a three-digit number that lenders use to determine whether a person is creditworthy or not. Not…
When people come to us here at Boost Credit 101, they are often looking for ways to improve their credit scores with tradelines. Of course, credit scores are complex. You need to understand just what it is that you are trying to improve before spending money, right? At least, that would be the smart thing to do. Essentially, improving your credit score means understanding the components found within it. What Is A Credit Score? At its most basic definition, a credit score is a three-digit number that lenders use to determine whether a person is creditworthy or not. Not…
Over the past ten years, there has been another alternative that has come out of the weeds for credit providers and lenders to check the creditworthiness of consumers. That alternative is known as VantageScore. VantageScore was born thanks to three major credit bureaus who decided they wanted to create their own proprietary model as an alternative to the popular FICO score. While a number of credit users are starting to see the VantageScore pop up, not all people know how it differs from the FICO score. To make sure you have an understanding of these two scores, we’re here to…
The magic word in that question is “expect.” When it comes to getting your credit into better shape, what expectations do you have? For a lot of folks, it’s hard to say, because credit is a nebulous, nasty business run by shady corporations who take our data without our consent and basically create a financial report card for lending institutions to pay for. The banks pay through...the...nose to the three credit bureaus: Experian, TransUnion, and Equifax. Experian alone reported revenue in 2018 of 4.6 billion dollars. WHAT!? Not to be cliche, but that’s billion, with a “b.” When was…
When was the last time you told anyone your credit score? Go ahead, think about it… ...have you thought about it? If you thought about it, I bet it wasn’t too recent, unless you were bragging to your friends over a drink still tradeline and that somehow strangely came up. Or you are in the dating game, and you are smart, and you asked what your date’s score was. Hold that question till around dessert if the date is going that well. Hopefully it stays going well. Credit just isn’t something we share too often. If it’s low you…
Meet Jimbo, he’s seventeen, a highschool senior, runs track, likes Netflix and video games and girls, a typical young man about to enter adulthood. Fall semester he applied to several colleges, some in state, some out. He wants to study anthropology. HOW TO NOT WASTE ANYONE’S TIME WITH TRADELINES On his eighteenth birthday, his dad, who has an average credit of 700, adds Jimbo to his Cabela’s Capital One as an Authorised User, in essence offering a piggybacking credit card to help his son jumpstart his credit, saying “Jimbo, my good son, credit is important in this world. Protect…