Your credit score plays a very important role in spending power. It helps to set the dollar amount approved by a lender or creditor. It is used to determine the interest rates on a loan or line of credit. For those who lack in credit worthiness, they lean on alternative money options like short-term online payday lender loans or other collateral based loans.
If you don’t want to have to settle for higher priced money help, it is important to understand your credit worthiness. There are two primary factors that are examined by banks and creditors – your credit score and personal income. Know what matters and how you can help control what these creditors and lenders will see. Your money management skills are scrutinized in many different ways. For those who need to work at their score, there are the alternative options like no credit bureau check online payday loans to cover emergencies that cannot be ignored. Increase you credit score in order to have access to traditional money options.
*Credit utilization rate – This percentage compares how much debt you have with how much you could potentially have. Low percentages will help to raise a credit score.
* On-time payments – The credit bureaus will keep your credit history for up to seven years. A history of on-time payments looks good to someone looking to approve your application.
*Age of credit history – If you don’t have debt, you can’t show anyone how you manage it. It’s important to start building credit right way to help increase your credit worthiness. Both opened and closed accounts matter.
*Number of accounts – This refers to how many different types of credit look good on your report. Your credit report should show more than just credit card history. Other possibilities are mortgages, auto loans, student loans and personal loans.
*Number of hard inquiries – Every time you apply for credit, the company will check your credit history and leave their mark, almost like signing in with a visitor’s book. Too many visitors will reflect a hardship on your part. Some people refer to online payday lender applications for small money matters. Since these direct lenders do not do a credit check, there is no record of your application.
*Negative management remarks – Late payments hurt your status. Severe reports like bankruptcy, collections, tax liens or civil judgments will tremendously impact your chances of obtaining an approval.
How many of these do you have control over? All of them! The more you know about credit scores the more changes you can make for the better.
You personal income makes a big difference in how much credit you will be authorized to use. If you already have debt, this total will be compared to your income in a debt to income ratio to see how much room you may have for more.
A payday lender online will not be able to see the total debt that you already owe. What they will want to see is your current bank statement that shows income and will review how you manage your debt throughout the last month. Where credit scores measure the last seven years of debt, the direct lenders want to see what you are doing now.
Don’t ever assume that just because your creditor approved you for a certain limit that it is written in stone. If your credit score is healthy you may see your limit raised. If your credit score dropped you may also see your limit drop and your interest rate increase.
It’s so easy to charge items and pay very little on the debt every month. Lon-term debt can both help and hurt you depending on how you manage it. Keep your current money matters in order and use an online payday loan lender if your debt to income ratio or credit utilization rate continues to prevent you from getting money the traditional way.