
How to build back your credit after a divorce
Here’s what to look for, how to repair damage and start building credit in your own name.
Credit rating is a money term you need to understand. Here’s what it means.
A credit rating is a measurement of a person or business entity’s ability to repay a financial obligation based on income and past repayment histories. Usually expressed as a credit score, banks and lenders use a credit rating as one of the factors to determine whether to lend money. Individuals receive credit ratings from one of the three major credit reporting agencies in the U.S.: TransUnion, Experian and Equifax.
Credit ratings can determine whether you qualify for financing. Your credit rating is a measurement of your past repayment history on debts including credit cards and personal loans, which gives lenders insight into the likelihood of you paying them back if they approve you for a loan.
If you maintain a high credit rating, the likelihood of banks and lenders approving you for financing are high. A poor credit rating may represent an inability to repay debt and limit your financing options.
Credit ratings and credit scores often work interchangeably. For example, most businesses receive credit ratings expressed as letter grades (such as triple-A, double-A or A) from agencies such as Standard & Poor’s, while you receive a rating expressed as a score, known as a FICO score.
The most common factors that affect your credit score are the length of your credit history, past repayment history and your credit utilization. The three credit reporting agencies take that information and build your credit profile, which will determine your overall credit rating and score.
Want to know the difference between a credit report and a credit score? Find out today.
Your credit rating or score is never a static number, and it can change based on new information that financial institutions send to the reporting agencies. If you miss a payment or apply for a new line of credit, that information is forwarded to the credit reporting agencies. If you have a high credit rating, one missed payment can lower your credit score.
Do you want the best rates possible on your next loan? Learn more about FICO scores.
Here’s what to look for, how to repair damage and start building credit in your own name.
Earning and maintaining healthy credit can help you qualify for loans and competitive interest rates.
Your credit score has a huge impact on your financial life. The good news is that building credit isn’t hard. Here’s how to start improving your credit today.
Late payments can cause significant damage to your credit score, and they stay on your credit report for seven years.
Tally consolidates your credit cards into one low-interest line of credit so that you only have to make a single payment.
Getting a boost to your credit line can be helpful for your credit score and wallet, but you should make some decisions before calling your issuer.
Your credit report is a detailed record of your credit history and the accuracy of those details is important. Here’s what to look for when reviewing your credit report.
Thinking you only have one credit score is like believing pigs can fly. Here’s the real deal.
Follow these steps to improve your credit score over time.