How To Improve Your Credit Score & The Secret To Filling Out Loan Applications Properly
Your Credit Score & It’s Implications
For the average consumer, your credit score is one of the most important factors in getting the best rates possible when filling out any kind of loan application, helping to save you money over the length of that loan.
A credit score is a number, ranging from 300 to 850, assigned to an individual consumer, which indicates to prospective lenders the customers ability to repay a loan. The higher their score, the more likely a person is to repay a loan on time and in full. However, when a person has a low credit score, they can find it very difficult to get credit extended to them, as prospective lenders will find them to be more risky and less likely to pay back that loan.
For those who have a low score and are looking for loans, there can be a sense of hopelessness that occurs when applying for credit, as most lenders will decline their applications because of the risk associated with their low numbered credit score. To further add to their problem, every time a consumer fills out a loan application, the prospective lender files a credit inquiry on the consumers report, which lowers the score.
So, if someone is desperate and continues to fill out loan applications because they are in need of a loan and they continually get denied because of bad credit, they actually end up harming themselves as each additional inquiry brings down their credit score and makes them look less desirable to future lenders.
How To Improve Your Credit Score
Good news is that if your credit score is low or inaccurate, there are ways to fix it and achieve a higher score. A recent report by the FTC (Federal Trade Commission) estimates that more than 20% of consumers have errors on their credit report (our opinion is that this number is actually far higher). In order to resolve these errors and raise your credit score, you need to go through the dispute process with the credit reporting agencies.
There are 3 credit report agencies (Transunion, Experian and Equifax) who list consumers credit scores and each agency has there own score, procedure, and submission process for disputes. Once a dispute is submitted to one of these agencies, an investigation process begins and the consumer is notified of the results within 30 days.
If you wish to maximize your likelihood of getting these disputes resolved properly and most favorably for you, there are certain steps that you should take, such as disputing through the mail and not online. If this all sounds too difficult or time consuming for you to do on your own, more great news for you is that there are plenty of businesses that specialize in credit repair who can take care of these processes for you.
How To Fill Out Any Loan Application Properly
Additionally, if you’ve ever filled out a loan application before, you know that there can be a lot of information presented, which may become very overwhelming.
Sadly, a large amount of people do not read the entire terms and conditions of their loan and instead look to simply find the lines where they need to sign. Because of this, people often enter into loan agreements which they do not understand or realize the full terms of, costing them large amounts of money.
The Secret that most consumers don’t realize is that you have the right to alter your loan agreement or disagree to certain terms and conditions which you do not find favorable.
In order to do this you need to first make sure to read the entire terms of your loan agreement yourself and not rely on any third party, especially one who is representing the company from which you are taking that loan. The secret is to know what to look for and and just how to change these agreements to give you the terms and conditions that you want and ones that the loan provider will accept.
If you’d like to learn more about these processes, click the articles listed below to learn about products and services which offer educational tools and/or experienced professionals to teach you more about how to raise and repair your credit score and learn how to make sure that you are filling out loan and credit applications correctly.
Click the links to get more information on each topic, make sure to read our other articles and stay up to date with all things about credit, loans and finance by signing up for our email list.