Are you ready for a reset on 2020? You aren’t alone. If this year wasn’t the kindest to your credit, there are plenty of steps you can take to get it back on the right track. Check out a few tips to improve your credit you might want to tackle in 2021. Stay in tune with your credit report and credit score The first step you can take to begin proactively managing your credit? Regularly checking your credit reports and credit scores. A quick refresher: There are three primary credit reporting agencies (CRAs) — Experian, TransUnion, and Equifax. Each CRA collects information from lenders and creditors — otherwise known as data furnishers — to add to your credit report. DataRead More →
How Many Points Will My Credit Score Drop If…
Sometimes managing credit and monitoring your credit score can feel like a game of chess. But while the credit impact of certain financial moves may feel like a mystery, there are some general guidelines surrounding what may happen to your credit score in different circumstances. So let’s take a look at what may happen to your credit score if… You receive a hard credit inquiry Size of Credit Score Drop: 5 points or less, according to FICO A hard credit inquiry generally occurs when you voluntarily apply for a new form of credit and the lender or creditor pulls your credit report to determine your credit health. This may cause your credit score to drop five points or less, atRead More →
Why Do Payday Loans Get a Bad Rap?
With big, bright signs offering quick cash, storefronts for payday loans are hard to miss. But while they may offer plenty of promises for easy financial help, there’s more to them than meets the eye. Before you go down the financial rabbit hole payday loans can create, there are some things you may want to know. How Do Payday Loans Work? Payday loans are usually small, short-term loans with few approval requirements and high costs. Let’s take a deeper look at the factors that set payday loans apart from other types of loans. Amount According to the Consumer Financial Protection Bureau (CFPB), the loan size is generally around $500, although limits may be higher or lower, depending on state laws.Read More →
Credit Invisible: What to Do If You Have No Credit
Being “credit invisible” might sound like a superpower, however, in the world of finances it’s anything but. Your credit report and credit score — two factors that are generally considered important for getting a mortgage, credit card, and more — are based in large part on your history of managing credit. If you are considered “credit invisible,” you don’t have a history for the credit system to pull from. So then what happens? The good news is, it’s not the end of the world. We’ve compiled some helpful information and tips for establishing your credit and potentially accessing the financial products you are looking for. What Does it Mean to Be Credit Invisible? There are three primary credit reporting agenciesRead More →
Can a Rapid Rescore Give Your Credit Score a Boost?
Small changes in your credit scores can make a big difference in the mortgage interest rate you end up paying. That’s why some lenders offer something called a “rapid rescore.” Find out how a rapid rescore works and what it could potentially do for you. Let’s Start with the Basics Before we dive into rapid rescoring, there are a few facts about credit that may be helpful to know. There are three primary Credit Reporting Agencies (CRAs) –– TransUnion, Equifax, and Experian. The CRAs receive information from lenders and creditors (also known as “data furnishers”) which they use to compile a credit report. Data furnishers are not required to report to all (or any) CRA, so the information they eachRead More →
Disaster Reporting Codes: How They Might Protect Your Credit
Sometimes unforeseen disasters can spell doom for your credit, but there may be a way to give context to a credit score drop — the use of disaster reporting codes. Find out how they work and if they could potentially lessen the COVID-19 impact on your credit. A Little Background Before we take a dive into disaster reporting codes, there are some basic facts to know about credit scores and credit scoring models. First things first: there are three primary credit reporting agencies (CRAs) — Equifax, Experian, and TransUnion. Lenders and creditors may report account information to one, two, or all three of them (or potentially none of them). This means you have a separate credit report from each CRARead More →