No, as long as you are a member your line of credit will be available for you.
We issue a $15,000 dollar line of credit to cover all future purchases if you wish to purchase more products and services on our website. Currently, additional purchases are limited, soon we will have many add ons that will be available to purchase using your line of credit.
Many people have heard of credit reports, but very few people actually know the answer to the question when you ask them. Simply put, a credit report is a statement that contains all the information related to your current credit situation and credit activity.
Most people have multiple credit reports compiled and created by major credit bureaus. These agencies collect and store financial data surrounding your activities that your creditors report to them. While creditors typically report to more than one credit reporting agency, they are not required to report to each credit bureau.
Lenders use your credit reports to help them determine the level of risk you pose if they decide to lend you money. Many times, your credit report gives them a clearer picture of whether to approve loans to you and the interest rate they should allot you based on your creditworthiness.
Your credit score is a three-digit number assigned to you, reflecting your likelihood to pay your bills on time. The credit score is assigned between 300 and 850. Your credit score is one of the main considerations lenders make when determining your creditworthiness.
Credit scores are assigned to individuals after calculating different information in their credit reports. Several aspects go into calculating your credit score, including the amount of outstanding debt you have, how long your credit history is, your payment history, and your recent credit-related activities.
There are several different credit scoring models, but there is a typical model that determines your creditworthiness defined below:
- Credit score between 300 and 579 is considered Poor
- Credit score between 580 and 669 is considered Fair
- Credit score between 670 and 739 is considered Good
- Credit score between 740 and 799 is considered Very Good
- Credit score between 800 and 850 is considered Excellent
Your credit score can vary depending on the scoring model used. Creditors and potential lenders use your credit score to determine whether they should approve loans and the interest rate they should assign you for loans. The higher your credit score, the less of a risk you are to creditors and potential lenders.
There is a common misconception among people that checking your credit reports from the three major credit bureaus also shows you your credit scores. However, the credit reports issued by Equifax, TransUnion, and Experian do not contain your credit score. Your credit score is calculated by companies like FICO using credit scoring models.
There are several ways to get access to your credit score, including:
- Credit Scoring Sites:There are several websites that offer free credit scores to users. Some websites also offer credit scores to credit monitoring customers who pay subscription fees.
- Buy Your Credit Score:You can always pay a fee to FICO or the three major credit reporting agencies to get your credit score.
- Check Your Statements:Several loan companies, banks, and credit card companies provide their customers with credit scores. It is possible for you to find your credit score through your loan statement, credit card statement, or bank statement.
Are you worried about some negative information on your credit report that keeps dragging your credit scores down? You might be looking forward to the day it finally comes off your credit report. Your credit report contains a ton of information that can be largely classified into either positive or negative categories.
The main concern people have regarding information staying on their credit report is for the information classified as negative info
Typically, most of the negative information remains on your credit report for seven years, or it stays for as long as the statute of limitations on the information runs out (whichever is longer). However, bankruptcy is a negative aspect that can remain on your credit report for up to ten years, depending on the specific type of bankruptcy you filed.
Many people assume that getting divorced can have a negative impact on their credit reports and credit score. However, your credit report does not have anything to do with your marital status. It means that being single, divorced, or married does not have an impact on your credit score or report — at least, not directly.
You may have had a joint account with your former spouse. How you handle the account you shared with them can impact credit reports for both of you. Banks report credit-related activities to the credit reporting agencies for each individual associated with accounts. Suppose that you are divorcing your spouse and you two have a few joint accounts. In that case, the two of you should deal with that account before you sign the divorce papers.
You have the option to outright close the account or move it into one or the other account holder’s name. Working together to close off any debts on existing joint accounts is the best way to ensure that both your credit scores remain unaffected due to the divorce.
People tend to make large credit purchases on joint accounts to hurt their former spouse’s credit score. Unfortunately, it ends up hurting their own credit scores as well. It is crucial to remain cordial throughout the divorce process and work together to close the accounts before finalizing the divorce.
Bankruptcy is one of the scariest things an individual might have to go through financially. Bankruptcy is a legal status for people unable to repay the money they owe to their creditors.
Many people are fearful of bankruptcy and consider it a permanent black mark on their financial records. Bankruptcy can negatively impact your life, but it is possible to restore your financial good name if you are willing to put in the time and effort.
You should know that filing for bankruptcy means that you will be logging on a seriously negative piece of information on your credit report. Bankruptcy can be reflected on your credit score for seven to ten years, based on the type of bankruptcy you file.
People struggling with maintaining healthy credit scores can try several strategies to improve their credit scores. Using balance transfers is one such strategy. A balance transfer essentially lets you move your debt from one credit account to another.
A balance transfer can be incredibly useful for you if you have a credit account with a higher interest rate and you want to take the interest rate down. Balance transfers work by applying for a new credit card with a lower introductory APR.
It could be the most valuable choice for you to pay off high-interest debt, but making it a regular habit can make life more difficult for you.
Are you worried that you have opened too many credit card accounts or do not have enough? If you think that the credit scoring formulas consider the number of credit cards in your name when determining your credit score, you should not worry about it. Credit scoring formulas never punish you for having too many credit accounts. However, it is possible for you to have too few.
Ideally, you should have a mixture of five to six different credit accounts, including different credit cards and loans. Very few credit accounts make it challenging for scoring models to determine a score that accurately reflects your creditworthiness.
Including your credit card debt in a mortgage refinance can be a double-edged sword. The biggest benefit that comes with doing this is that the interest you accumulate after refinancing will be considered part of your mortgage interest, making it a tax-deductible aspect you might not have to worry about. The interest on credit cards is not tax-deductible.
Another reason it could be a good idea is the fact that mortgage loans typically come with significantly lower interest rates than credit card interest rates.
Credit reporting agencies tend to update your credit score and credit reports once lenders give them new information regarding your credit activities. The process typically happens once each month but it can take up to 45 days. There are a few lenders who update credit reporting agencies on your credit-related activities more frequently. It is possible for your credit score to change whenever newer information is reported to your credit file at any of the three major credit bureaus. Fortunately, minor fluctuations in your credit report are not something you need to worry about.
It is possible for you to apply for credit cards and take out loans if your credit score is not the best. You can even get loans and credit cards if you have poor credit health. Unfortunately, you might not like all the options available to you if you have a bad credit score.
Lenders consider your creditworthiness to determine whether to approve loans or extend credit. Lenders and creditors willing to let you borrow will likely charge you higher interest rates. You might also need to provide a refundable security deposit on credit card accounts you open with poor credit.
While it is not common, it is possible for inaccurate information to appear on your credit report. If that happens to you, you have the opportunity to file a dispute with the three major credit reporting agencies. The process of filing a dispute and getting it resolved can differ based on the credit bureau you work with.
Are you curious about your creditworthiness? Having a good credit score is an important factor that lenders consider when determining whether they should approve a loan, and the interest rate they should offer if you qualify for a loan.
If you are planning to calculate your own credit score, you should know that it is impossible to calculate it personally. Credit scores are generated by agencies like FICO that use different scoring models. Getting your credit score requires requesting it from FICO or one of the three major credit bureaus.
Several aspects related to your financial activities can have an impact on your credit score. Your payment history accounts for the most significant portion when credit agencies calculate your credit score.
Your payment history paints a clear picture of how well you can manage your finances. It also shows if you have failed to make any timely payments or failed to make payments entirely. The length of your credit history is also another important factor impacting your credit score because it shows how long you have been managing your credit accounts.
The time it takes to fully repair your credit can vary drastically depending on your specific situation. If you have made several mistakes that need to be addressed, it can take longer for you to repair your credit score.
Someone with fewer issues might be able to get back to better credit health much sooner. In general, repairing your credit can take anywhere between six to nine months, provided you have the right help.
Working with a reputable credit repair company like Credit Builder can make the process smoother for you because they are adept at identifying and helping you address mistakes negatively impacting your credit score.
Experian, TransUnion, and Equifax are the three major credit reporting agencies. Each of the three bureaus has its own record of your credit report based on metrics the agencies have decided. While all three credit bureaus largely use the same information, the manner in which they report your creditworthiness is different, warranting three different credit reports.
It is ironic to consider the fact that you have to pay money to file for bankruptcy. After all, isn’t filing for bankruptcy something you do because you don’t have money in the first place?
Chapter 7 Bankruptcy is the most common type of bankruptcy people file for because it is a proven way to clear debt as someone who is bankrupt. However, the total charge for filing Chapter 7 Bankruptcy is $338. $245 of it is the filing fee, $78 is the administrative fee, and $15 is the trustee surcharge.
It might be possible for you to get a fee waiver that removes the filing fee when filing Chapter 7 Bankruptcy. Qualifying for the fee waiver comes with the prerequisite that your household income is less than 150% of the federal poverty level. Filing Form 103B and including it when filing bankruptcy is the ideal way to go if you want to qualify for a fee waiver.
Many people are afraid of checking their credit report because they have heard that it has a negative impact on their credit score. The fear comes from the fact that when someone else checks your credit report, it can damage your credit score. Fortunately, checking your own credit score does not lower your credit score.
Your credit score is one of the most significant things that lenders consider when determining your creditworthiness. However, it is not the only thing that they look at.
Lenders also tend to look at your credit report from one or all three of the major credit bureaus to make a more informed decision on whether extending a loan to you presents a risk to them. Lenders can also look at the outstanding debt you have, your yearly income, and your debt-to-income ratio.
Depending on who the lender is and the type of loan you require, you can also expect them to look for any records of reported delinquencies in your past, any hard inquiries that have been added to your credit file, how you use your credit cards, and your credit history’s health.
It is unfortunate if you find yourself in this situation because there is no easy way for you to get out of the situation. Assuming that you do not borrow any more money and start working towards increasing your income to reduce your debt-to-income ratio, you have a chance to make things better.
Increasing your income above the monthly amount you owe to pay down your debt can take a long time. Improving your creditworthiness through such a situation takes a considerable amount of time, effort, and discipline. You will definitely need to learn how to live frugally, it is possible that you will have to sell things as well. However, you can, in no way, shape, or form, take on any new debt.
Working with a reputable credit repair company like Credit Builder can provide you with a better opportunity to regain your credit health.
