The Basics of Credit Scores and Credit Approval

August 19, 2008

Credit scores are one of the most important factors that lenders consider when someone applies for a loan. An individual’s score is considered to be an indicator of his or her creditworthiness.

The higher your score, the easier it is to get approved for a loan or credit card. It is possible for individuals who don’t have great scores to obtain financing and credit cards, but they are considered to represent greater risk. The terms under which their accounts are approved are not as favorable as those of individuals who have higher credit ratings.

Factors Impacting Credit Score

Many different issues impact your score. It is possible for individuals who have little or no debt to have lower credit scores than those who carry significant amounts of debt. Factors that are used in calculating an individual’s score include: the amount of revolving credit currently available to the individual, the person’s history of making payments on current debt, and how much debt he or she is currently carrying.

Verify Credit Report Data

If you’re planning to apply for a loan or charge card account in the near future, it’s a good idea to pull a copy of your credit report to make sure that it is completely accurate. If you find errors on your credit report, you should contact both the reporting agency and the company reporting the information.

It is not uncommon for errors to show up on credit reports. However, a lender isn’t just going to trust you about reporting errors. In order to improve your score, you will have to get the errors fixed. It takes time to get erroneous information removed from your credit history, so it’s a good idea to check your credit report at least once each year.

For more eye opening reports on Debt Consolidation, Credit Card Debt etc, please visit Zulika’s site on www.globalproperty.co.za

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A debt consolidation loan is the most powerful means to regain control over your growing debt.

August 7, 2008

You see, debt levels are rising and consumer credit to households is estimated at R760bn with 14 million active credit consumers and 50 million open accounts. The average % of debt to income is 73%. At the same time there are 80,000 judgments for debt per month.

Credit card debt has seen a dramatic increase of 138 percent since 2004 while lease agreements rose by 123 percent in the same period. Is it any wonder that more and more people find themselves in a cash crunch at the end of the month?

With a debt consolidation loan you combine all your outstanding debt into one loan. Instead of having multiple creditors to pay you only have to deal with one. That alone can save you time and a lot of stress.

You arrange the repayment terms to fit your monthly budget. This means that you can now manage your debt and still have some money left over each month.

When you consolidate debt, you effectively roll all your outstanding debt and loans into one loan. You arrange repayment terms that fit your monthly budget – which means you can now manage your debt and still have some money left over each month for you and your family.

Have you ever sat down and figured out how much interest you are paying on your outstanding credit card debt??

That’s money that could have gone to paying down your debt, but instead it gets paid to the credit card companies month after month without making so much as a dent in your balances.

When you consolidate debt, you finally get rid of those credit card late fees and costly interest penalties. Starting fresh with your new loan, the money that would’ve gone to interest can now go towards reducing your debt!!

Zulika van Heerden provides more powerful articles and tips on her site:  www.globalproperty.co.za