Staying The Course With Your Good Credit History
Having a Good FICO® Score makes you pretty typical among American consumers. That’s certainly not a bad thing, but with some time and effort, you can increase your score into the Very Good range or even the Exceptional range . Moving in that direction will require understanding of the behaviors that help grow your score, and those that hinder growth:
Late and missed payments are among the most significant influences on your credit scoreand they aren’t good influences. Lenders want borrowers who pay their bills on time, and statisticians predict that people who have missed payments likelier to default on debt than those who pay promptly. If you have a history of making late payments , you’ll do your credit score a big solid by kicking that habit. More than one-third of your score is influenced by the presence of late or missed payments.
Utilization rate, or usage rate, is a technical way of describing how close you are to “maxing out” your credit card accounts. You can measure utilization on an account-by-account basis by dividing each outstanding balance by the card’s spending limit, and then multiplying by 100 to get a percentage. Find your total utilization rate by adding up all the balances and dividing by the sum of all the spending limits:
| Balance | |
|---|---|
| $20,000 | 26% |
42% Individuals with a 698 FICO® Score have credit portfolios that include auto loan and 29% have a mortgage loan.
The Biggest Credit Score Myths
Like any industry, credit and lending is always changing. As the economy fluctuates up and down and federal regulations change to provide new guidelines and protections for consumers, it’s no surprise that credit card issuers change the qualifications for their financial services and products. You’ve probably heard a lot of credit card myths from people who’ve been in the game for a long time. But the truth is you shouldn’t always listen to them.
Below, we outline some of the most persistent credit card myths and explain exactly what’s true for today’s credit card user.
- Myth 1: You should never close your oldest credit card
- Myth 2: You need a perfect credit score
- Myth 3: Carrying a balance helps your credit score
- Myth 4: Checking your credit score will lower it
Tips To Get A Personal Loan With 618 Credit Score
As mentioned, it can be harder to get approved for a personal loan when your credit score is around 618. On the bright side, there are some ways to increase your chances of being approved for a loan quicker without having to apply for dozens of loans through the process:
Personal Loan Requirements
Apart from ones credit score, there are several requirements that determine if one is eligible for a personal loan, such as the following :
- Age: 21 to 60 must show proof of birthday.
- Employment: Must show proof of employment must be with current employer for at least one year or have been self-employed for at least two years.
- Proof of Income: Provided by W-2 forms, tax returns, bank statements, or pay stubs.
- Identification: Proof can be provided by a drivers license or state ID, Social Security, and/or a passport.
- Verification of home address: Can be provided by utility bills or copy of lease.
Depending on the lender, there may be additional requirements or specific details asked apart from the above, such as certain information about your employer, your contact details, your previous address, your college/university name and major, and the like.
Alternative Option to a Personal Loan: A Credit Card
Improving Your Credit May Save You Money
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What Does A 618 Credit Score Mean And How It Affects Your Life
A credit score of 618 is considered poor, however, it will still get you an auto-loan, some types of credit cards, a home loan and even a personal loan, especially from online lenders. The score, however, will impact your finances negatively as your credit report will indicate to the lenders that you have a high risk of defaulting your debt. Therefore, creditors and lenders will often approve the above but with very high interest rates as compared to those with fair, good and excellent scores. Basically, a 618 FICO credit score is likely to cost you highly in the long run.
Improving your 618 credit score by 50 or 100 points
The journey towards achieving a positive rise in your credit score is usually a long one and may take quite some time to complete. It is therefore quite important that you brace yourself for a long way ahead and stay focused on this goal. However, this isnt to alarm you as youll soon be able to reap the fruits of it. As your 618 credit score rises, you will progressively be able to get your loan requests approved and even qualify for credits on much better terms. Any negative information on your credit report will also be cleared by your local credit bureau with time and youll then be able to get that job you wanted or get that mortgage or even get an auto loan at lower interest rates.
Negotiating With Your Creditors
Despite what many people believe, your creditors are not your adversaries and they are not working against you. Therefore, you should not treat them as such. Instead, your creditors are working with you in an attempt for both of you to gain a profit.
If you fail to do things, such as pay your bills on time, it negatively impacts the ability of your creditor to do business with you. While they should be understanding of any reasonable financial hardships that youhave undergone in the past few weeks or months, they can tell the difference between short term financial problems that were out of your control and blatant financial responsibilities on your part.
Ultimately, its your responsibility to communicate effectively with your creditor so that you can both benefit equally from your business agreement.
For an example, if you are forced to skip on a payment or to default on an entire loan the very first thing you need to do is to contact your creditor and talk about the Issue in detail with them. This action alone will tell them that what has happened is out of your control and that you are trying to correct the Issue in contrast to them believing that you are just behaving irresponsibly. In addition, this will also strengthen your business relationship.
Examples of how your creditor may be willing to help you after you have discussed your problems with them include the following:
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Can You Get A Personal Loan With A 600 Credit Score
Yes, you can get a personal loan with a 600 credit score there are even lenders that specialize in offering fair credit personal loans.
However, keep in mind that if you have a credit score between 580 and 669, youll generally be considered a subprime borrower meaning lenders might see you as a more risky investment.
Because of this, youll likely pay a higher interest rate than borrowers with good to excellent credit.
Tip:
Even if you dont need a cosigner to qualify, having one might get you a lower interest rate than youd get on your own.
Here are Credibles partner lenders that offer cosigned personal loans:
If you decide to take out a personal loan, remember to consider as many lenders as possible to find a loan that fits your needs. Credible makes this easy you can compare your prequalified rates from multiple lenders in two minutes.
Ready to find your personal loan?
You can use Credible to compare rates from multiple lenders in 2 minutes. Just keep in mind, you wont be able to get a personal loan with a cosigner through Credible.
- Free to use, no hidden fees
- One simple form, easy to fill out and your info is protected
- More options, pick the loan option that best fits your personal needs
- Here for you. Our team is here to help you reach your financial goals
Learn More: How to Get a $5,000 Personal Loan
How Do I Find Out My Credit Score
ooba Home Loans South Africas leading home loan comparison service, makes this easy with their free, online prequalification tool, the Bond Indicator. You can use this to find out your credit score, as part of the process of determining what you can afford on a home loan.
Alternatively, you can contact ooba Home Loans and get your credit score and affordability verified by one of their home loan consultants.
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Below 700 Be Prepared To Explain
If your score is below about 700, prepare for questions about negative items on your credit record and be able to document your answers, says Mike Bradley, internet sales manager at Selman Chevrolet in Orange, California. Matt Jones of the automotive shopping site Edmunds.com says the number may be closer to 680.
Both men say theyve seen people get financing sometimes even top-tier financing with scores that are much lower.
Although its possible to get a loan with a low score, anything under 500 is a flashing red light, says Dave Cavano, who manages the car-buying service for Auto Club of Southern California.
That means you wont qualify for an attractive interest rate, but it doesnt mean you cant get a car.
» MORE: What Credit Score Do You Need to Lease a Car?
What Does Not Count Towards Your 618 Credit Score
There are many things that people assume go into their 618 credit scores but that actually dont. Examples include how much money you earn, your age, your marital status, your child support payments , how much money you have donated to charity, where you work or live, or your employment history.
None of these things or anything like them do anything at all to your credit score, so instead, focus on the five primary factors that we outlined and discussed above.
Now that you know what counts towards your overall credit score and what does not, you should know exactly what you need to pinpoint in order to enhance your score. For example, maybe one reason your credit score is low is because youve opened several new accounts of credit.
Regardless, its important at this stage for you to positively identify what it exactly is that is lowering your credit rating. Once you have identified what that is, you can start to formulate a plan.
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Why Your Credit Score Matters
There are real benefits to staying on top of your credit score.
Thats because a strong credit score can translate into real perks, like access to a wider range of products and services including loans, credit cards and mortgages. You could also enjoy better interest rates and more generous credit limits. Meanwhile, if your credit score isnt quite where you want it to be, knowing the score is the first step to improving it.
Either way, it pays to know your credit score. Its your financial footprint the way companies decide how financially reliable you are. A higher credit score means lenders see you as lower risk.
The Three Credit Reporting Agencies And Different Types Of Credit Scores
Equifax, Experian, and TransUnion are three major credit reporting bureaus. Each credit agency provides you with a credit score, and these three scores combine to create both your 618 FICO Credit Score and your VantageScore. Your score will differ slightly among each agency for many reasons, including their unique scoring models and how often they access your financial data. Monitoring of all five of these credit scores on a regular basis is the best way to ensure that your credit score is an accurate reflection of your financial situation.
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What Is Your Credit Score
One smart thing to do before you begin the car loan process is to check your own credit score. Be sure you’re looking at a FICO® Score, as that’s what the lender you apply to are most likely to use.
Many credit card issuers give customers a free FICO® Score as a perk of membership, but it can be a smart idea to pay for a score-monitoring service. I use myFICO.com, as it’s run by the creators of the FICO® Score. Not only does this get you access to FICO® Scores from all three major credit bureaus, but there are many other useful tools as well .
Getting A Personal Loan With 618 Credit Score In 2021
Being in the poor credit tier already seems bad enough. On top of that, it can be harder to get a loan when one needs such. While its true that personal loan lenders prefer borrowers to have good or excellent credit, even those with poor credit are capable of getting approved for a personal loan although there wont be as many options at hand.
- Minimum credit score*: All credit types accepted
- Loan terms: 90 days to 72 months
- Turnaround time: As early as 1 business day
- Must have a monthly income of $1,000+ after taxes and valid checking account.
- Bad credit is OK
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What Credit Score Do You Need To Buy A House In 2021
Credit scores can be a confusing topic for even the most financially savvy consumers. Most people understand that a good credit score boosts your chances of qualifying for a mortgage because it shows the lender youre likely to repay your loan on time.
But do you know the minimum credit score you need to qualify for a mortgage and buy a house? And did you know that this minimum will vary depending on what type of mortgage you are seeking?
The Importance Of FICO®: One of the most common scores used by mortgage lenders to determine credit worthiness is the FICO® Score . FICO® Scores help lenders calculate the interest rates and fees youll pay to get your mortgage.
While your FICO® Score plays a big role in the mortgage process, lenders do look at several factors, including your income, property type, assets and debt levels, to determine whether to approve you for a loan. Because of this, there isnt an exact credit score you need to qualify.
However, the following guidelines can help determine if youre on the right track.
Improving Your Credit Score Range
So now you know where your three-digit number falls in the credit score ranges. If you already have excellent credit ranging from 780 to 850 congratulations.
Your only job now will be to keep doing what youre doing to maintain stellar creditworthiness.
If you have very good credit, you may want to figure out how to optimize your score even more to achieve an even-better three-digit number. Keep reading to learn ways to fine-tune your credit life.
For everyone else, you probably have a little work to do to get into a better credit score range.
Like I said above, dont worry if your credit score has parked itself at the lower end of the spectrum. Ill show you exactly where to start working to achieve the best credit possible.
You can improve your credit score in no time if you dedicate some time to learning about how credit repair works.
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How To Get An 818 Credit Score
If youre not yet a member of the 800+ credit score club, you can learn how to join by checking your free personalized credit analysis on WalletHub. Well tell you exactly what you need to change and exactly how to do it. Paying your bills on time every month and keeping your below 15% are the keys to success in most cases. But you cant beat a customized credit improvement plan.
But good advice can be priceless when it comes to your credit, so we asked a selection of WalletHub users with 800+ credit scores to share the secrets of their success. You can check out their tips below.
Chief Factors That Affect Your Credit Score
The following factors may make or break your credit score:
- Payment history: learn from this history, repeat it. Timely payments go a long way. Payments are considered late when theyre 30-60 days past the due date. Timely payments go a long way. This might just be the best thing you can do for your credit score.
- the runner-up to payment history. This is the second most important factor to keeping an envious credit score. This is basically the amount of credit available that is being used by you. Financial advisors commend that each card you own should have a balance of below 30% according to your credit limit. Say if your limit $7000, the balance should be under or equal to $2100.
- Length of credit history: patience is a virtue and time is money. Both these things are the MVPs when it comes to building a rock-hard credit score. The longer the mean age of our account, the better.
- The type of credit in use: An assortment of different credit account types donates to a healthy credit score. A blend of debt and credit cards with a pinch of installment debt i.e. loans on automobiles or mortgages keep the credit score running in a smooth way.
- New credit: new credits or loans you apply for. This may simple but isnt so. Each new credit will help in eventually racketing up a good score, but the duration of our credit length is key here. The longer the length of our credit history, the less the new credit applications will harm our score.
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