Reasons To Consolidate

Stop Collection Calls
Lower Monthly Bills
Free Credit Counselors
Repair Your Credit
Get Out of Debt For Good
Foreclosure Facts
Loan Modification
Debt Elimination
Debt Settlement
Debt Negotiation
Personal Debt Freedom
Debt Management Plans
Debt Consolidation Guide
5 Steps To Debt Relief
Types of Debt Relief
Tips To Reduce Debt
Understanding Tax Debt
Payday Loan Relief
Debt Negotiation Letter
Debt Verification Letter
Credit Card Help
Credit Card Rules Changes
Store Credit Cards
Fix Credit Card Debt
Debt Consolidation Loans
How Debt Consolidation Affects Credit
Free Bill Consolidation?
Reduce Your Debt
The Debt Snowball
Financial Planners
Medical Debt Guide
Seniors in Debt
How to Keep Your Job
What if You Don't Pay Bills
Wage Garnishment
Mortgage Hardship Letter
Get Out of Debt
Bad Credit Personal Loan
Life After Bankruptcy

Credit scores and credit reports

The credit reports are made on the basis of the payment history of debtors. Various other aspects are included in the same like the type of loan taken, number of loans, default payments and other similar details. The credit reports include all these details. But the credit scores are numbers which range from 300 to 850. These scores are computed on the basis of the credit reports and then calculated and processed through software. Good credit reports and scores are vital for financial gains and getting employment.

Six costly mistakes that hamper your credit scores

  1. Co-signing loans with friends and family

    Co-signing loans with friends and family members can help someone out but it reflects badly on your credit scores. The non payments or defaults of the loan partners will also show on your credit report. Since you have co-signed to loans you are also liable for these non payments and hence your credit scores are also affected.

  2. Closing older credit card accounts

    If your older accounts have good credit rating or standing then it is suggested not to close them. Closing the accounts with good revolving credits also results in a drop of the credit scores. The credit limit on these accounts helped to get good credit scores.

  3. Not checking your credit reports

    By not checking your credit scores and credit reports you are eliminating the chances of errors on your reports. These errors or misinformation on your credit reports can be the fault of the credit reporting agencies or creditors also. Checking these reports can help you to improve your credit scores.

  4. Credit cards with high balances

    All the high balance credit card accounts reflect poorly on your credit scores. As per the FICO suggestions the balance on the credit score should not be more than 30% of the total credit limit. The lower the balances on these accounts the higher are the scores.

  5. Frivolous spending habits

    If your spending habits are not controlled then the chances of your credit scores improving are impossible. Those with poor credit rating should avoid spending more but focus on saving so that debts can be cleared and credit scores improved.

  6. Refinancing debt consolidation loans

    Most debtors have to refinance their debt consolidation loans in the last stages of debt clearance. This results in higher interest loans and very poor credit scores due to non payment of multiple debts.

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