What is a Thin Credit File?
Picture this: You pay your bills on time, you don’t have any credit card debt, and overall, you consider yourself fairly responsible when it comes to spending. You’re ready to apply for a credit card or loan to help you get your future business off the ground, and all of a sudden, you hit a road block. Your request […]
How Do I Establish & Build Business Credit?
Figuring out how to access business financing and credit is a common quest for both new and existing small business owners. From start-up costs to new expansion strategies, establishing a strong business credit profile with diverse accounts can help you achieve your immediate and future business plans. Strong business credit scores can help you secure better interest rates on loans, […]
Fixing a Thin Credit File
The best way to address a thin credit file is to actively develop credit. The easiest way to build your credit is to use credit cards. However, without a credit score, you will likely have a hard time getting approved for a typical credit card. In that case, a secured credit card can help you establish credit […]
How Do Credit Inquiries Affect Credit Scores?
Whenever a company or individual accesses your personal credit reports or scores, the credit reporting agency that fulfilled that request must, by law, record that “inquiry” on your credit report. Because certain inquiries have been found to be associated with greater credit risk, they may affect your credit scores. In other words, recent inquiries on […]
What If I Pay in Full?
Paying your balance off in full doesn’t necessarily guarantee a low debt usage ratio, because in many cases your balance will be reported before, not after, you make a payment. In the case of credit cards, for example, many issuers will report your balance at the end of the billing cycle, when they generate the […]
How Does Debt Usage/Utilization Affect Credit Scores?
After payment history, your overall debt is the second most important factor in your credit reports. When thinking about your debt in relation to your credit score, you might focus on the total amount of debt you owe. But credit scoring models often work somewhat differently. While the amount you owe is important, even more […]
How Does Payment History Affect Credit Scores?
Your payment history outlines whether you pay bills on time and is the single most important factor in your personal credit score. On personal credit reports, payment activity is measured in 30-day increments, with payment penalties categorized as 30, 60, 90, or 120 days late. This means most lenders will not report a late payment […]
The Five Main Credit Scoring Factors
Your credit score is an important part of your loan application. But it takes more than on-time payments to build a good credit score. Five factors help explain how credit agencies evaluate the information in your credit reports when calculating your personal credit score. The better your score on each of these factors, the higher […]