How do lenders decide make their decisions

No one has a given the right to credit. Before giving credit lenders check whether to them you are an acceptable risk and they all have different ideas of what is acceptable. One of the decision factors is your credit rating.

There is no such thing as the fabled “blacklist” and agencies do not give an opinion about whether or not you should be given credit. The lender decides this once they have looked at the information they have gathered. Some lenders use a credit scoring system which gives points to pieces of data such as age, job, home ownership, and of course your credit record. Once these points are totalled it gives a Credit Score which helps the lender make their decision..If you have been shopping around for credit then there will be a number of searches recorded on your credit reference file. In some cases this may be sufficient reason for lenders to refuse you any credit even though you may have no intention of taking up all the offers. The best way to avoid this is to compare companies by rates and quotations without actually going through a full application with each one.

Lenders do not have to tell you why they refused you but should give an idea such as - your credit record. If you think this decision is wrong you should ask the lender how to get the decision reviewed. This could be by providing additional information such as showing that the debts shown as unpaid have now been paid.

You are able toput a statement onto your credit file explaining the situation and about your current and/or previous circumstances. This entry will be included with your file in the future and will be seen by lenders searching your file.

How do I obtain a copy of my credit reference file?

It is very important that the information held about you is correct and you have the right to request a copy of your file under section 7 of the data Protection Act 1998 to check this.

The easiest way to order your file is online (Equifax and Experian) or by telephone (Experian), as long as you have either a credit card or debit card in your own name. Alternatively you can write enclosing a cheque for

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Over 30 million people in the U.S.A. have credit scores low enough (less than 620) to make shopping for low mortgage loan rates very difficult at best. The major credit reporting agencies use a slightly different system to arrive at a credit score. The best known is called the FICO score, developed by Fair Isaac and Company (FICO). A FICO credit score can range from 300 to 800. Most borrowers fall into the 600-800 credit score range.

A high FICO score is your reward for paying bills on time. This is one of the most important factors that determine your California home mortgage loan rate

If you’ve had a few credit “bumps in the road” recently, and you’re asking yourself, “How can I improve my FICO credit score”? Here are 5 ways to boost your FICO credit score.

1. Paying your bills on time is the first step in improving your FICO credit score. Late payments can have a big negative impact on your FICO score, 30 days or more late on one account can lower your FICO score 50 points or more.

If you don’t like writing checks, go online and automate your bill paying.

2. Don’t max out your credit cards. The smaller balance gives you a wider difference between your balance and your credit limit.

Also, if you are planning to purchase a new car or other major item, wait until you get that low mortgage loan rate.

3. If you are sincerely interested in improving your FICO credit score, bankruptcy MUST be avoided! Bankruptcy is more negative than late payments or collection accounts.

4. Get credit counseling if you have too much debt and begin to fall behind, or can’t see a way out.

5. Keep old paid off accounts in an open status. If you close an account, it won’t help your FICO score but it could lower your credit score.

If you close an old account it could make you look like a “rookie” in the credit world. A factor in obtaining credit is how long you’ve had credit.

If your FICO credit scores are over 620, but you want to raise it, obtain a copy of your credit report and request that the credit bureau remove any errors.

About www.GoldMedalMortgage.com

GoldMedalMortgage.com provides a variety of mortgage solutions including first time home buyer home improvement loans, home equity loans, and debt consolidation loans through their partners.

For more information about California home mortgage loan rates or to improve FICO credit score please call 866 398 4664 or go to ==>http://www.goldmedalmortgage.com

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Most people know that credit scores determine what and how much you can borrow from lenders, but very few are actually knowledgeable about how credit scores are calculated.
When you attempt to borrow money from a financial institution or to obtain a credit card, the financial companies retrieve a copy of your credit report, which contains a score that qualifies (or disqualifies) you for the loan or line of credit.

Credit scores range from 340 to 850, and are used to determine the risk lenders take on when they give you money or credit. An individual with a credit score of 480 will pose a much larger risk to the lender than an individual with a credit score of 700. If you don’t know your credit score, it might be a good idea to find out.

The three credit bureaus - Equifax, Transunion and Experian - use a special type of software that uses the information in your credit report to generate a numerical score. Credit scores are sometimes called “FICO scores” because the first credit score software was produced and distributed by Fair Isaac CorporationFICO.

Credit scores are calculated using the following information:

35% Payment History

30% Amount Owed

15% Length of Credit History
10% Types of Credit Utilized
10% New Credit Obtained

Payment History

Your payment history encompasses all of your past credit accounts - including loans, mortgages, financing and lines of credit. It will include the accounts that you have “paid as agreed”; negative accounts and collections; and delinquent accounts. Delinquent accounts will show how many accounts are past due, the amount of time that the account has been past due and how much time has elapsed since you’ve had a past due payment.

Amount Owed

The part that includes the amounts you owe will include how frequently you pay down your credit, how much of your revolving credit lines you’ve used, and the total number of zero-balance accounts. This is used to determine how frequently you pay off your debts and how much you continue to accrue as time goes on.

Length of Credit History

Your credit score will also reflect how long your credit report has been tracked and how long it has been since you’ve last opened an account. The longer your credit report is tracked, the higher your credit score will be as along as you continue to make payments and to avoid collections.

Types of Credit Utilized

There are many more types of credit than just credit cards. Your credit history encompasses mortgages, auto loans, business loans and all types of financing. When you’ve used several different types of credit - rather than just revolving credit, such as a credit card - your credit score will be higher.

New Credit Obtained

New credit refers to accounts that you have opened or paid off within the last six months. New credit doesn’t hold as much weight as older accounts because you’ve had less time to pay (or not pay).

Credit scores are generated by all three credit bureaus, and you might have three very different credit scores. The three bureaus use different ways of calculating credit scores, and one bureau might have more information than another. It is up to your lenders to report positive or negative credit, and if they report it to only one company, then it will not show up elsewhere.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com .

Ed Vegliante runs the website http://www.Credit-Card-Surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. Find links to secure online Credit Card Applications.

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