Credit Score Answers - 6 Questions and Answers About Increasing Your Credit Score
Improving your financial picture is not a hard thing to do. Many people feel that there is no way to increase their three digit number once it has been damaged. However, there are multiple ways to increase your score. In this article, I will disclose the six most common question and answers posed to me about the three digit number. 1. Does a Loan affect my three-digit number?
Loans affect your score more than any other item on your credit report. The type of loan, the amount you owe, and your payment history can destroy or improve your credit.
2. Does refinancing my home loan or car loan affect my score?
Refinancing can help and hurt your three - digit number. It can help because you will be able to reduce your monthly payment and get a lower interest rate since your three digit number has improved. It can hurt your score because of new inquires that hit your report, and opening and closing accounts.
3. Will a bad credit lender help my three - digit number?
My first advice is to stay away from these types of lenders, but if you are in a bind and you need to repair your credit by showing the banks that you can make payments on time, then getting a loan from a bad credit lender may be the thing you need to do. When you get these loans be aware that the interest rate will be four or five times higher than the normal loan interest rate, but you can always refinance the loan once your three digit number has improved. Lastly, make sure the lender reports to all three credit bureaus for score improvement.
4. While on vacation or in the hospital what should I do about my bills?
During a vacation or a long stay in the hospital, you have to make arrangements to have your bills paid. You can pay your bills in advance or designate one of your friends or families to do it for you to avoid your three - digit number from being damaged.
5. If I'm a College student where can I go for help with my score?
Most students who attend college tend to build up debt before they graduate, but this can be stopped with a little education. Students on their way to debt and a bad credit score need to see their Financial Aid office for help. This office has information on credit counseling, scholarships, budgeting, books on money, personal finance workshops, and tax filing information.