MAKING NEWS

Sun, 20 July 2008
No Credit, Or Really Bad Credit - Understanding Credit Score
This article is intended to help explain the levels of credit and what makes the credit score what it is.Very few people have perfect credit but the good news is having made some mistakes in the past does not mean there are no offers for you.

To begin, no credit, means that the person has no information pertaining to their payment history. You essentially havent established a credit reputation yet. In this scenario there are other things that can be taken into consideration to show you have the ability and willingness to pay your debts. A history of rent payments can be used to establish your credit worthiness. You may also show a cell phone or telephone bill. Utility bills are another way to show a history of paying bills on time. Simply having no file does not bar a person from obtaining home financing. There is no such thing as having no credit history. A creative consumer should be able to provide some history of payment.

If you have a credit history and have paid your bills but there are some delinquent payments you could be considered as having slow credit. Late payments affect your credit based on the severity. Credit reporting agencies base there scoring on multiples of thirty days. A late payment to a credit card might incur a late fee with the card company but might not be recorded against your score. 30 day late payments will usually show as a negative mark against your score. This type of slow payment puts a red flag up to a lender. If that payment came in after 60 days, again after 90 and again after 120 days late there would be additional negative occurances. Once an account reaches 120 days late the card company will generally forward that account to collections. It is very important to realize that delinquencies on different types of accounts are considered more severe than others. A late payment on ones mortgage is considered much more severe than one on a credit card. Installment loans fall in between revolving debt and mortgage debt. Slow credit is simply a person that has made some late payments but has been able to get those accounts current and has had relatively few delinquencies. Slow payment is different than a bad payment history and provides more options for new loan applications.

Really bad credit is a track record of payments that contains severely delinquent accounts and information such as Bankruptcy; chapter 13, chapter 11 or chapter 7. This type of file could also contain items such as foreclosure, charged off accounts, tax liens, judgments, and a history of seriously account delinquency. This type of profile can be caused by many factors. In the case where these circumstances were caused by some unavoidable circumstances, a lender may be willing to extend a mortgage despite the history. There are hundreds of credit repair companies out there. Be careful when using their services as some of these services do not use legal avenues or are will not do all that is needed to set you back on the track towards repaired credit.

Credit scores can range between 450 and 850. There are three reporting bureaus: Trans union, Experian, and Equifax, and each use a different scoring system and have a different score range. Not all creditors report to all three bureaus. A score over 700 is generally considered perfect. A score between 620 and 699 is marginal and a score below is considered what is called sub-prime.

The good news is that there are products available for files in any range even the range considered really bad! There are even foreclosure saver plans available for those who are facing the loss of their home, you have options. Everyone makes mistakes and everyone has been in a situation where that person felt things could not get any worse. There are solutions for your situation, you can begin to pull yourself out of the credit whole and begin to rebuild. The good thing is that some lenders look at more than just the score. They look at job stability, extenuating circumstances, and the willingness to pay. Lets begin to rebuild your credit now.

Source:http://www.reallybadcreditoffers.com

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