Business and Finance - All solutions about your business: June 2014

You know that too many inquiries can hurt your credit score. So choose what you apply for carefully and really think about whether or not this new credit card or loan is worth dropping your credit score by a few points.

By know, you know that too many inquiries can hurt your credit score. If you are trying to get a credit card with a really good rate, you may have been shopping around for a while so that you can get the best possible deal. Chances are, you may have found a few different cards that you like, but there were a couple of things that you did not like about each one. Sometimes, you will find one that you like but you have to pay an annual fee. Other times, you will find one with no annual fee but there will be really high late charges or other miscellaneous fees.

However, you should not be applying for all of these cards. Looking through all of the terms for each one of them is one thing, but applying for all of them is another. Were you aware that making a number of inquiries could actually hurt your credit score? Well, it can and could actually end up doing quite a bit more damage than you would think.

The truth of the matter is, every single time that you apply for a credit card or inquire about any type of a loan or store credit, the information will show up on your credit report. This is called a "hard inquiry". A hard inquiry can actually drop your credit score by several points. Many times, people will apply for different kinds of credit while they are completely unaware that the inquiries are going against their credit score. It is actually too bad that this information is not given to these individuals up front so that better choices may be made.

Another common misunderstanding is that requesting a copy of your credit report can actually hurt you. However, this type of an inquiry is called a "soft inquiry" and should never count against your credit score. If this kind of error ever shows up on your credit report and it is showing against you, it is very important that you go through the steps to resolve the error immediately. Mortgage InquiriesThe credit reporting agencies have made one exception knowing that today there are so many mortgage companies you can go to for a home loan. They have made it that multiple mortgage inquiries made within 14 days are treated as one inquiry. You should try to do all your "rate shopping" within a 30 day period. These inquires are generally not counted against your score. Many creditors will look to see the exact amounts of credit inquiries that you do have on your credit report. Depending on the guidelines of each creditor, four or more inquiries within a certain time frame of six to nine months can be considered to be quite an excessive amount. If they do deem this amount of credit inquiries as excessive

, they could end up denying your credit request. This request and denial will then show up on your credit report along with any others that you may have. All of these inquiries will hurt your credit score. So choose what you apply for carefully and really think about whether or not this new credit card or loan is worth dropping your credit score by a few points.

Source: http://www.articlesfactory.com/articles/finance/do-you-know-the-difference-between-a-hard-inquiry-or-soft-inquiry-on-your-credit-report.html

How To Safe Guard Yourself Against Financial Trouble

If you suffer from bad credit, it is most likely that you've had or you still have unpaid debts in your account. When was the last time you checked your credit report? Are you 100% sure that your credit report is accurate and that there are no unauthorized charges in it?

Your Credit Report and Bad Credit

Why should you take an interest in what your credit report says about you? Most people do not realize that their low credit score is actually a result of inaccurate information on their account. By obtaining a copy of your credit report, you can examine and file a dispute with the three big credit bureaus and the creditors themselves. This is a very important to do BEFORE you apply for any new credit cards or loans.

What if all the charges in your credit report are correct? Then examining your report will help you see exactly how much you owe each of your creditors. You can also review all the payments you already submitted as well as your existing balances and unpaid dues. Being aware of these details will help you create your repayment plan more effectively.

Working on Your Repayment Plan

If your present repayment terms are too difficult for you, it's best to talk with your creditors and try to negotiate with them for a lower interest payment or a settlement amount. Don't be afraid to explain your present financial situation so your creditor can see why you're having difficulty in repaying your debts. Ask for a new repayment plan that will better suit your current financial capacity.

If you're having a hard time creating a budget, consulting a legitimate credit counseling agency is advisable. A government accredited credit counseling organization should be able to help you create a budget plan and a repayment plan that works.

Guaranteed Approval Credit Cards and Loans

What about guaranteed approval credit cards and loans? Should you apply for them? If you're in need of a credit card or loan now, and can not wait to improve your credit, then there are still options available for you. A bad credit credit card can be a tool to help you rebuild your credit. The key is to find a credit card with a reasonable interest rate. Find one that reports to the three major credit bureaus so that your credit report can be updated as you submit your payments.

Finally, be vigilant in keeping up with your payments , avoid charging more than you can afford

, and always pay on time.

Source: http://www.articlesfactory.com/articles/finance/how-to-safe-guard-yourself-against-financial-trouble.html