Credit Report- Rating /Score

Bad credit is a poor credit rating. People with a bad credit rating have a history of late payments. What is credit scoring? This is a statistical method to analyze the applicant’s characteristics.

Credit rating or credit scores are provided to lenders by credit bureaus. Points are awarded for each factor • whether you are likely to repay the debt • whether you are likely to make payments on time (payment of credit card bills. Student loans etc. are checked.) • Ration of the income to debt is another important factor. • The length of time one has had credit is also important as it shows how the applicant has handled credit over a longer period of time. Make sure your report is accurate.

Fix Bad Credit Report if it is inaccurate. Obtaining Credit a check on the credit of the loan applicant is done by potential lenders before granting mortgages. The three agencies that are primarily used are Trans Union. If you do not have a steady job and a good salary you cannot pay back easily. Also if you are making payments for other loans you may not be able to attain another if you do not have the capacity to pay back.

Capital is the total assets you have in stocks. A sale of any of these assets could help you repay the loan in case you are unable to work or your savings dwindles. Character is determined by the promises you have kept. This is an important factor as all lenders look to receiving their payments at the right time. An important consideration is the applicants • Income to debt ratio also determines whether you get the loan. The worst case this can be is 60:40. • Credit history of bill-payments • Has the applicant filed for personal bankruptcy at any point of time? • Credit rating score should be in the mean values.