Credit card debt consolidation

A credit rating represents a person’s creditworthiness or the likelihood that the person will repay the debts in a timely manner. Lending agencies like banks and credit card companies refer to the credit ratings of the individual to evaluate the potential risk posed by lending money to the customer and to avoid losses that they may incur due to bad debts in the future. They also use credit scores to determine who qualifies for the loans and at what rate of interest. Therefore, an individual with a bad credit rating will never secure a loan. Apart from banks and credit card companies, other organizations like mobile phone companies, insurance companies and government departments use the concept of credit rating to judge the individual’s creditworthiness. A few factors that decide the credit rating of an individual are discussed below.

1. The age of an individual plays an important role in the credit rating. Persons between the age of 24 and 64 years will earn a point. Those below 24 years or above 64 do not score on the credit scale. It is possible to lie about your age, but since it is falsifying facts, it may create complications in the future.

2. Unmarried persons are considered a higher risk, so being married will help to score a point for the credit rating. Similarly, if you have any dependent family members, it is considered a better risk as compared to someone with no dependents. The more the number of dependents, the better for your credit rating. The logic behind this theory is that a single, unattached person can skip town without repaying the credit.

3. Creditors also want to know about the individual’s background. They want to know where you live, whether it is a mortgaged house or rental accommodation, the vehicles you own and other personal details. Owning a large house, even if it is mortgaged, is a plus point. If you are a person who has moved often, it will score badly on your credit rating. The longer you have stayed at your current address, the more is the credit score, because you are a good risk.

4. Other factors affecting the credit rating include the kind of job you are in, the length of service, monthly income, previous credit history, present debt status and the health of your bank account.

The above factors play an important role in deciding your credit rating. With some conscious effort on the part of the individual, it is possible to improve the credit rating.

By: Abhishek Agarwal

Have you wondered how credit card eligibility is determined?

Curious whether you’re eligible for a credit card?

It all has to do with your credit rating and credit score. Here we go with a quick tutorial on what constitutes credit-worthiness and how you can make sure that you are eligible for a credit card when you want one.

Credit Reports and Credit Scores

When you buy something on credit or have a credit card, the credit card company or store makes periodic reports to one or more credit reporting agencies. Those agencies keep records of your credit history – how good you are at paying your bills on time.

Among the things that go into your credit history are:

1. How many credit cards you have

2. How much you owe on each one

3. How many loans you’ve taken out

4. How much you still owe on them

5. Any payments that you’ve made late

6. Any payments that you’ve missed

7. If you’ve ever defaulted on a loan

8. If you’ve ever filed for bankruptcy

9. If you own a house

10. If there has ever been a judgment against you for unpaid debts

Credit reporting agencies assign a ‘weight’ to each of those facts, and assign points to you based on each of those points. The total of those points is called your ‘credit score’. The higher your credit score is, the better your credit is.

Some of the things that you lose points on your credit score for are:

1. Having too many credit cards

2. Carrying too much debt on your credit cards

3. Carrying too many loans

4. Making late payments or missing payments

5. Defaulting on a loan

6. Applying for a lot of credit cards in a short time

The credit card and credit score give a ’snapshot’ of your credit history.

Getting a Credit Card

When you apply for a credit card, the company that issues the card checks with a credit reporting agency to get your credit report and find out your credit score. Since they’re basically lending you money whenever you use your credit card, they want to make sure that you’re the kind of person who pays your debts on time. They have an ideal ’snapshot’ that they compare your credit report and score with. The closer your credit score is to their ideal, the better your chances of getting a credit card with a great interest rate and good terms.

The lower your credit score is, the more a risk you are for the credit card company. Because they take a bigger risk when they lend you money, they charge you more by giving you a higher interest rate. If your credit score is too low, they won’t give you a credit card at all. If you have no credit history at all, they also may decide not to give you a credit card, depending on other factors in your credit history.

If you’re turned down for a credit card.

The credit card company has to tell you the reasons that you were turned down. They also have to tell you which credit reporting agency they got your credit history from. There are three major credit reporting agencies in the country – Equifax, Experian and Transunion. The report that the credit card company used to make their decision will be one of those.

You have the right to request a copy of the credit report that they used to make your decision. The company that provided the report to the credit agency has to give you a copy free. The credit reporting agency also has to give you a copy of your credit report once every 12 months if you request it. Get your credit report to find out what it says about you – and to see how you can improve your credit score so that you won’t be turned down next time.

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By: Joseph Kenny

What is Credit Card Factoring? If you have asked yourself this question then you are not alone. Today there are thousands and thousands of people situated in the United States, Japan, Australia, Singapore, New Zealand, China and other parts of the globe that have asked the very same question. To put it briefly, card factoring deals with obtaining cash advances based upon future or possible sales of products, goods or services by a company. The company may be small, medium or large scaled. You can avail of these cash advances by stating the possible sales and income of your business for the next 4 months up to 12 months time. You then need to submit a request or application for the cash advance together with the card factoring in order to get your money.

The key in credit card factoring is that you must have a Visa or MasterCard with you. These are the two largest credit cards being honored anywhere in the world as of today. You need to present your previous invoices from these two credit card companies, particularly your sales invoices. Once you present an adequate amount between $1000 up to $2500 a month then you can file for a cash advance application. Your funds will be delivered within 24 hours or less, depending upon the assessment of such application. No longer will you wait for 10 business days for you to receive your funds unlike in traditional business loans that only consume your time, effort and energy.

Another good thing with regard to credit card factoring is that you need not have any collateral. You can still file for cash advances as long as you have credit card sales invoices every month for the last four months. You can then apply for a cash advance worth it or even greater than the amount indicated in the said invoices, allowing you to obtain the financial backing that you need each and every time. Even if you have bad credit or your business has bad credit you can still file an application! Bad credit scores are not taken into account when getting your money with this modern day way of obtaining financial aid!

The repayment method when using credit card factoring in order to obtain cash advances is primarily based on the sales of your business. Even if your business is not doing well the only amount that will be required of you as payment is a portion of the said sales. Obtaining monetary support has never been this easy and lenient like never before! You can submit a fast online application that will take only 5 minutes for you to fill up! Just type in the necessary information like your full name, address, email address, credit card number and mobile number! You can also call the toll free hotlines if you prefer to talk to a loans expert or finance expert in processing your request. You can also visit the branch of the bank or lending firm offering such card factoring if you want to!

By: Rodney Moss