No Debt And Credit Score
Posted on September 25, 2009 at 4:03 am
If you have no debt, what does your credit score say?
Posted on September 25, 2009 at 4:45 am
I wonder why you are asking about credit scores if you don't have any debt...coz usually people ask about credit scores to see if they can get a loan..
Posted on September 25, 2009 at 4:47 am
Maybe the better question to ask is can having no debt improve the credit score?
Posted on September 25, 2009 at 4:52 am
If you have no debt and you don't have a credit history...you'd still be considered a high risk by the lenders. But these all depends on again, why are you asking that question? Are you planning on borrowing? For a house perhaps?
Posted on September 25, 2009 at 4:55 am
But if you have simply decided to pay off your debts, that's why you're saying that you have no debt, your credit score will reflect that decision -Your payment history constitutes 35% of your FICO credit score. And you FICO score is what lenders look at to determine how much they are going to lend you.
Posted on September 25, 2009 at 5:08 am
If you have high debt instead of no debt, you'd have low credit score -
Posted on September 25, 2009 at 5:12 am
Maybe the better question to ask is can having no debt improve the credit score?
If you have high debt instead of no debt, you'd have low credit score -So now the question to ask is how to minimize or eliminate debt to improve the credit score?
Posted on September 25, 2009 at 5:16 am
"how to minimize or eliminate debt to improve the credit score"
Depending on the type of debt, account status, and amount - the consumer can try negotiating the payment terms and even the amount. The consumer can also try the services of debt relief companies. Especially if it's unsecured debt.
The consumer can choose from credit counseling and debt settlement.
Posted on September 25, 2009 at 5:24 am
debt and the credit score: this is the breakdown of a consumer's FICO score. It is made up of 5 different components:
Payment History: 35%. - will increase if you make all of your monthly payments on time. will decrease if you miss a payment.
Debt to Income Ratio (Amounts Owed): 30%. will increase if you have little or
no debt and have a steady stream of income. will suffer if your debt amount outweighs your income.
Length of Credit: 15%. the longer your credit history is, the better.
New Credit: 10%. if you take in a new line of credit, it would increase.
Types of Credit: 10%. will increase if you have a variety of debt types: ex -two credit cards, a personal loan, a mortgage and a car note rather than just having just 5 different credit cards.
Posted on October 1, 2009 at 3:26 am
How long can I get my score back up if I have had a lot of debt
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