Posted on: 18th Jul, 2011 01:35 am
Last year, when I applied for a loan, my lender told me that I have a poor credit score and won't get a loan. The score was bad because of credit card delinquencies. In order to improve my credit score, I paid off most of the credit card debts but had to consolidate two credit cards. I though my score would improve but then when I checked my credit score now, it is even lower!! Can anyone explain what's going on?
Hi Agatha,
Payment delinquencies will have a negative affect on your credit scores and it will take some time to increase your credit scores. As far as drop in the credit score is concerned, it is because of consolidation. At times, credit card debt consolidation may lead to drop in credit scores. Because of consolidation, the ratio of your balances to your available credit lines got increased which had a negative affect on your score.
Thanks,
Jerry
Payment delinquencies will have a negative affect on your credit scores and it will take some time to increase your credit scores. As far as drop in the credit score is concerned, it is because of consolidation. At times, credit card debt consolidation may lead to drop in credit scores. Because of consolidation, the ratio of your balances to your available credit lines got increased which had a negative affect on your score.
Thanks,
Jerry
A large percentage of a credit score is based on how much you owe in comparison to credit limits. It sounds like your ratio of debt to limit is higher than 30%, which is the benchmark you ought to be shooting for.
The best way to get your score back where you want it is to pay as much as possible on a monthly basis, to reduce your overall debt and then keep it that way.
The best way to get your score back where you want it is to pay as much as possible on a monthly basis, to reduce your overall debt and then keep it that way.
I have seen this news that tackles about credit score. In the news they have mentioned that a person's ability to get credit is determined by many factors. The majority of those factors are determined by an individual's financial habits. Besides relocating, a person has no say in how creditworthy the state they reside in is. A brand new study rates and ranks the credit reliability of each of the fifty states.Credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. I read this here: "personalmoneynetwork.com/moneyblog/2011/07/25/states-creditworthiness/"
I really don't understand the relevance of "how creditworthy the state they reside in is." For that matter, I don't understand the construction of that statement.
States in these United States all borrow money. Some of them are more creditworthy than others; i.e. they pay back their debts on a timely basis while some others might be late payers. That's got naught to do with the common consumer, however.
One makes his own bed and lies in it. One's credit is just that - one's own. My credit report is in no way, shape or form affected by whether the State of Connecticut is a good credit risk or not...and the same goes for everyone else - from Alabama to Wyoming, alphabetically.
States in these United States all borrow money. Some of them are more creditworthy than others; i.e. they pay back their debts on a timely basis while some others might be late payers. That's got naught to do with the common consumer, however.
One makes his own bed and lies in it. One's credit is just that - one's own. My credit report is in no way, shape or form affected by whether the State of Connecticut is a good credit risk or not...and the same goes for everyone else - from Alabama to Wyoming, alphabetically.