Many people don't know that
everyone's credit history is summarized by a single number,
or credit score. Most other lenders consider this score as
an important part of their decision of what terms to offer
you, or even whether or not to offer you a loan at all. Generally,
the credit score takes into consideration your recent credit
activity, and penalizes you with a lower score if
you…
- Have any late payments on current credit
(more or later payments are worse),
- Have any public liens, defaults or bankruptcies,
- Have applied for credit a number of times lately.
Your credit score can go up (improve) if you...
- Close any unused credit accounts (check your credit report
- you may not remember them all!)
- Apply only for the loan you really want.
Make your payments as soon as you realistically can…a
month late is better than two months late, and any late
payment is better than no payment at all!
Clear up any disagreements you may have with a lender. (often,
lenders will allow you to negotiate a different payment
plan - one that better fits your budget - even if it means
making smaller, regular payments over a longer period of
time, or accepting less than the original debt amount.)
These tips can help you keep your credit score at its best,
and give you more choices when it comes to credit!
A home equity loan is ideal for accomplishing many of these
goals, since you can a) close out some high-interest credit
cards after paying them off with the loan, b) reduce the
monthly bills, allowing you to meet the commitments you've
made easier, and c) regain control over your finances with
a new start.
To get a copy of your current credit report, you can call
Equifax at (800) 997-2493 (Equifax.com),
Experian at (888) 397-3742 (Experian.com),
or Trans Union at (800) 888-4213 (Transunion.com).
It is always a good idea to keep this record clean of incorrect
or out-of-date entries. You are the best guardian of your
credit record!
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