credit report http://fimendurance.com/ Tue, 08 Mar 2022 04:36:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://fimendurance.com/wp-content/uploads/2021/10/icon-5-120x120.png credit report http://fimendurance.com/ 32 32 Scammers can affect your credit report https://fimendurance.com/scammers-can-affect-your-credit-report/ Sat, 19 Feb 2022 04:09:23 +0000 https://fimendurance.com/scammers-can-affect-your-credit-report/ The world can’t help but talk about the so-called Tinder Swindler, the soft-spoken con artist who used dating apps to meet lots of women. READ ALSO: Money saving tips He then accumulated huge lines of credit and loans in their name, leaving them with massive debts. And if you think it couldn’t happen to you, […]]]>

The world can’t help but talk about the so-called Tinder Swindler, the soft-spoken con artist who used dating apps to meet lots of women.

READ ALSO: Money saving tips

He then accumulated huge lines of credit and loans in their name, leaving them with massive debts.

And if you think it couldn’t happen to you, think again.

Every day people take out loans for other people or sign a guarantor for someone else’s loans. If for any reason there are any breaches of the agreement, you could put your credit report at serious risk and it could take several years to recover.

“What few people realize is that it’s not just late payments or missed payments that hurt your credit score or make lenders suspicious,” said Davina Myburgh, director of Consumer Interactive at TransUnion. Africa.

“Taking too much credit in a short time can hurt your credit rating and your ability to get credit in the future.

“And if you take out these loans for someone else, for whatever reason, the risks to your financial health increase exponentially,” Myburgh said.

Myburgh said there was no problem opening a new credit card or taking out a revolving credit facility.

“But if you suddenly open two or three new credit facilities in a short period of time, what you’re telling lenders is that you might be in financial trouble.

“At the very least, you will attract attention the next time you apply for credit from your bank.
someone else’s debt

“When you sign bail on a loan for a child or parent (or someone you met on Tinder), that debt can get you in trouble if they don’t keep their payments.

“You will be held accountable, and it will reflect on your credit report and negatively affect your credit score.”

He said that when you apply for new credit yourself, lenders will consider your guarantor as part of your indebtedness.

Many “difficult” credit applications
“Every time you apply for credit, the lender will do a credit report on you, what is known in the trade as a ‘hard’ inquiry.

“Many people don’t realize that too many tough requests to check your credit can negatively impact your credit score, as it can be seen as a sign of financial stress.

“Be aware that difficult searches can often come from unexpected sources, such as a request to open a new cell phone account or a request for a credit limit increase.

“A lender should tell you this and ask your permission before doing this type of research, so make sure you only apply for credit when necessary to avoid lowering your score.

“To make sure you stay on top of your credit score and keep your finances healthy, make it a habit to check your credit report regularly.”

You get a free credit report every 12 months from providers like TransUnion.

Also follow us on:

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Personal loan rates fall: 3-year fixed rates hit record low for 2022 https://fimendurance.com/personal-loan-rates-fall-3-year-fixed-rates-hit-record-low-for-2022/ Thu, 10 Feb 2022 17:09:55 +0000 https://fimendurance.com/personal-loan-rates-fall-3-year-fixed-rates-hit-record-low-for-2022/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with good credit seeking personal loans in the past seven days were prequalified for lower average rates for 3-year fixed rate loans and 5-year fixed rate loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between February 3 and February 9:

  • Rates on 3-year fixed-rate loans averaged 10.22%, down from 10.81% the previous seven days and 11.11% a year ago.
  • Rates on 5-year fixed-rate loans averaged 13%, down from 13.32% the previous seven days and 14.33% a year ago.

Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses such as medical bills, pay for a major purchase, or fund home improvement projects.

3-year and 5-year fixed personal loan rates have fallen further in the past seven days. Three-year personal loan rates fell 0.59% to their lowest average in 2022 so far. Meanwhile, 5-year yields fell 0.32%. Rates for both quarters are also lower than at the same time last year. Borrowers can enjoy significant interest savings with a 3- or 5-year personal loan now. Their fixed interest rates mean your rate won’t change for the life of your loan.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to shop around on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated weekly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of January 2022:

  • 3-year personal loan rates averaged 11.09%, down from 11.29% in December.
  • 5-year personal loan rates averaged 13.40%, down from 14.12% in December.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

In January, the average prequalified rate retained by borrowers was:

  • 8.89% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.32% for borrowers with credit scores below 600 choosing a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short period of time could lower your credit score.

Choose a shorter loan term

Repayment terms for personal loans can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, finding a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you want to borrow and you can compare multiple lenders to choose the best one for you.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace offers an unparalleled customer experience, as evidenced by over 4,500 positive reviews on Trustpilot and a TrustScore of 4.7/5.

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What is a credit limit and does it matter? https://fimendurance.com/what-is-a-credit-limit-and-does-it-matter/ Tue, 08 Feb 2022 06:33:27 +0000 https://fimendurance.com/what-is-a-credit-limit-and-does-it-matter/ If you apply for or use a credit card, you may be wondering how much you are able to spend when using that card. This is called a credit limit. We take a look at what a credit limit is and what it means. Definition of credit limit: what is it and where is the […]]]>


If you apply for or use a credit card, you may be wondering how much you are able to spend when using that card. This is called a credit limit. We take a look at what a credit limit is and what it means.




Definition of credit limit: what is it and where is the term used?




A “credit limit” is the maximum amount that a lender will lend to you through one of its credit products. The term is widely used in the financial products market and can apply to all types of loans, such as home, auto, personal or margin loans and credit cards.




What is a credit limit on credit cards?




When you take out a credit card, you are taking out a loan from a financial institution. You also agree to repay this loan under certain conditions. Usually, credit cards are set up so that you continually borrow a portion of the loaned amount and repay it on a schedule, and you are charged interest based on that repayment schedule.




The credit limit is the amount of credit (money lent) that you and the lender have agreed to use on this card. But it is important to know that this does not automatically mean that the card will stop working when its credit limit is reached. It depends on the loan agreement you have with the financial institution. (Read more about that, below.)








How does a credit card credit limit work?




A financial institution may offer credit card products with different credit limits, such as a $10,000, $20,000, or $50,000 credit limit. Let’s say someone chose a card with a credit limit of $10,000. This means that the total amount of money a person can borrow with this credit card would be $10,000 in total. That person would apply for the credit card, and the financial institution would assess their application and decide whether or not to issue the card and credit limit to the applicant, taking into account factors such as their credit rating. If the application was successful, that person would receive the credit card (or a virtual version of it) and could use it to borrow up to $10,000 for purchases.




A hypothetical example to explain how this might work is below:




Cover image source: Nattakorn_Maneerat/Shutterstock.com.

Joe is approved for a credit card with a credit limit of $10,000. He can track his spending on this card through his bank’s mobile app. He will use the card to purchase items for his home office renovation.

Before Joe starts using the credit card, he checks his banking app. The credit card balance summary on its app shows:

  • Balance: $0
  • Available: $10,000

On Monday, he buys a computer worth $3,000 using the card. The credit card balance summary on its app shows:

  • Balance: – $3,000
  • Available: $7,000

On Tuesday, he buys a $1,000 desk and a $4,000 couch. Balance summary:

  • Balance: -$8,000
  • Available: $2,000

On Wednesday, he pays $2,000 to his credit card because he knows he needs extra funds on the card to buy more items. Balance summary:

  • Balance: – $6,000
  • Available: $4,000

On Thursday, he buys a podcast production system worth $4,000. Balance summary:

  • Balance: – $10,000
  • Available: $0

Fees and charges would also apply, depending on the terms and conditions of the credit card, and would gradually be reflected in the statement.

With $0 available on his credit card, whether or not Joe could continue making other transactions — and go over his credit limit — would depend on the particular policy he took out with a lender and the terms. general rules that apply to his credit agreement. .








Can you go over your credit card credit limit?




Whether or not you can spend more than your credit limit on your credit card depends on the credit agreement you have with your financial institution. It’s a good idea to find out what the financial institution’s rules are regarding “over-limit” spending before you sign up for a credit card.




Some agreements automatically prevent transactions from being completed once the credit limit is reached. In this case, purchases may be declined once a user has spent up to the authorized limit. Some financial institutions allow credit card holders to request that they not be allowed to exceed their credit limit, to help them control their level of debt. Other financial institutions will only allow certain eligible cardholders to exceed their limit, such as those with strong credit histories.




If you spend over your credit card credit limit, you may be charged additional fees or interest, but it depends on the policy you have with a financial institution. Not all banks charge an “over limit” fee (also known as an over limit fee). However, any purchase made using a credit card is added to the card balance, which means you still have to pay it back within a certain time frame, usually with interest. Even if you don’t plan to spend more than your credit card limit, fees and charges could cause your account to be overdrawn. Your personal credit rating can be negatively affected if you don’t make regular payments to your credit card.








Credit limits: why are they important?




Credit limits on credit cards are important for several reasons, including:




1. Determine how much you can spend




Since the credit limit on a credit card is the maximum amount you can borrow on that card, credit limits determine how much money you will have available for purchases. Compared to other types of loans, credit cards are generally more flexible in terms of when you can spend the funds and what you can spend them on. For example, credit cards usually allow you to borrow a succession of small or larger sums and use them to buy whatever you need (as long as the seller accepts the type of credit card you have) . Whereas if you take out a car loan, for example, you must use the loan for a car. Keep in mind, however, that money borrowed from a credit card must be repaid under strict terms and generally attracts a higher rate of interest on outstanding balances than some other forms of credit.




2. Consider how much you owe




The credit limit is the amount of money you can borrow from the financial institution. If you have a high credit limit, you can borrow up to that amount and repay it in installments, with interest if certain conditions are not met. If you want to try to minimize your level of debt, having a high credit limit could be an unwelcome temptation to spend more and therefore increase your level of debt. However, if you opt for a lower credit limit, it can help you control your spending. Keep in mind that fees and charges, including interest, generally apply when using a credit card, and they can add up over time. Developing a budget and learning how to manage expenses effectively can be helpful in minimizing overall debt, and you might even consider saving and creating an emergency fund, instead of relying on credit.








3. Can impact your credit rating




The amount you have borrowed – or asked to borrow – will be shown on your credit report, which financial institutions and other parties can verify. This includes credit card information and the total credit limits of those cards. The total credit limit, regardless of how much credit you have used, will be taken into account when calculating your credit score. For example, you might have multiple credit cards from different banks. Your debt level will be calculated by adding the credit limits of all your credit cards. Your repayment history is also taken into account. Why is this important? Banks will check your credit score every time you apply to borrow money, and your credit score may affect other applications, such as rental properties. You can check your credit score for free with Canstar.








If you are considering a credit card, it is important to read the policy documents, such as Target Market Determination and Key Information Sheet that apply, to support your decision making.









Thank you for visiting Canstar, Australia’s largest financial comparison site*




































































































































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5-year fixed personal loan rates fall again by more than half a percent https://fimendurance.com/5-year-fixed-personal-loan-rates-fall-again-by-more-than-half-a-percent/ Tue, 18 Jan 2022 08:00:00 +0000 https://fimendurance.com/5-year-fixed-personal-loan-rates-fall-again-by-more-than-half-a-percent/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with good credit seeking personal loans in the past seven days have prequalified for lower rates for 5-year fixed-rate loans and higher rates for 3-year fixed-rate loans compared to the previous seven days .

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between January 10 and January 16:

  • Rates on 3-year fixed-rate loans averaged 11.45%, down from 11.07% the previous seven days and from 10.92% a year ago.
  • Rates on 5-year fixed-rate loans averaged 12.98%, down from 13.65% the previous seven days and 14.38% a year ago.

Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses such as medical bills, pay for a major purchase, or fund home improvement projects.

Rates on a 5-year loan fell by more than half a percentage point, the second time in January that they fell so significantly. Overall, personal loan rates have continued their downward trend since the start of 2022, despite daily fluctuations. Borrowers can enjoy significant interest savings over the term of their loan with a 3 or 5 year fixed rate personal loan now.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to shop around on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated weekly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of December 2021:

  • 3-year personal loan rates averaged 11.29%, down from 11.32% in November.
  • 5-year personal loan rates averaged 14.12%, down from 14.25% in November.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.

In December, the average prequalified rate retained by borrowers was:

  • 8.92% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.04% for borrowers with a credit score below 600 who choose a 5-year loan

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Repayment terms for personal loans can vary from one to several years. Generally, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best interest rates on personal loans, finding a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you want to borrow and you can compare several lenders to choose the best one for you.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace offers an unparalleled customer experience, as evidenced by over 4,500 positive reviews on Trustpilot and a TrustScore of 4.7/5.

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Personal Loan Interest Rates Rise, But 5-Year Fixed Rate Still Lower Than Same Time Last Year https://fimendurance.com/personal-loan-interest-rates-rise-but-5-year-fixed-rate-still-lower-than-same-time-last-year/ Mon, 20 Dec 2021 08:00:00 +0000 https://fimendurance.com/personal-loan-interest-rates-rise-but-5-year-fixed-rate-still-lower-than-same-time-last-year/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest personal loan interest rate trends […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with good credit seeking personal loans in the past seven days have prequalified for higher rates on 3-year fixed rate loans and 5-year fixed rate loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between December 13 and December 19:

  • Rates on 3-year fixed rate loans averaged 11.30%, down from 11.05% the previous seven days and from 11.29% a year ago.
  • Rates on 5-year fixed rate loans averaged 14.38%, down from 14.23% the previous seven days and from 15.14% a year ago.

Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses such as medical bills, pay for a major purchase, or fund home improvement projects.

Personal loan interest rates can be volatile from day to day, with 1% moves not uncommon. The increases over the past seven days have been gradual, however, and borrowers can still get a good deal on a personal loan. Current interest rates on personal loans can be particularly attractive to borrowers looking to consolidate their credit card debt. The average credit card interest rate is around 17% (according to Federal Reserve data), and those with average or below-average credit can have much higher interest rates.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to shop around on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated weekly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of November 2021:

  • 3-year personal loan rates averaged 11.32%, down from 11.33% in October.
  • 5-year personal loan rates averaged 14.25%, down from 13.85% in October.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.

In November, the average prequalified rate retained by borrowers was:

  • 8.92% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.04% for borrowers with a credit score below 600 who choose a 5-year loan

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Repayment terms for personal loans can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best interest rates on personal loans, finding a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you want to borrow and you can compare multiple lenders to choose the best one for you.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace offers an unparalleled customer experience, as evidenced by over 4,500 positive reviews on Trustpilot and a TrustScore of 4.7/5.

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5-year fixed personal loan interest rates plunge as 3-year fixed rates continue to climb https://fimendurance.com/5-year-fixed-personal-loan-interest-rates-plunge-as-3-year-fixed-rates-continue-to-climb/ Thu, 18 Nov 2021 08:00:00 +0000 https://fimendurance.com/5-year-fixed-personal-loan-interest-rates-plunge-as-3-year-fixed-rates-continue-to-climb/ The latest interest rate trends for Credible Market personal loans, updated weekly. (iStock) Borrowers with good credit seeking personal loans in the past seven days have prequalified for slightly lower 5-year rates and slightly higher 3-year rates than fixed-rate loans in the previous seven days. For borrowers with credit scores of 720 or higher who […]]]>

The latest interest rate trends for Credible Market personal loans, updated weekly. (iStock)

Borrowers with good credit seeking personal loans in the past seven days have prequalified for slightly lower 5-year rates and slightly higher 3-year rates than fixed-rate loans in the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between November 11, 2021 and November 18, 2021:

  • Rates on 3-year fixed-rate loans averaged 11.16%, down from 11.08% the previous seven days and from 11.47% a year ago. Over the past year, 3-year personal loan rates bottomed out the week of September 20, 2021, when they averaged 10.70%.
  • Rates on 5-year fixed-rate loans averaged 13.85%, down from 14.18% the previous seven days and 14.89% a year ago. 5-year personal loan rates hit a 12-month low at 12.62% during the week of May 3, 2021.

Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses such as medical bills, pay for a major purchase, or fund home improvement projects.

Rates on 5-year fixed personal loans have fallen 0.33% since last week — the second week in a row that they have fallen. Meanwhile, 3-year rates rose slightly – by just 0.08% – continuing their upward trend from the previous week. However, 3-year rates are not far from their 12-month low at 10.70%. Borrowers can enjoy interest savings on a personal loan with either term right now.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing multiple lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to shop around on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of October 2021:

  • 3-year personal loan rates averaged 11.33%, down from 11.27% in September and 11.16% a year ago.
  • 5-year personal loan rates averaged 13.85%, down from 14.84% in September and 13.72% a year ago.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.

In October, the average prequalified rate retained by borrowers was:

  • 8.92% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.04% for borrowers with a credit score below 600 who choose a 5-year loan

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Repayment terms for personal loans can vary from one to several years. Generally, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender: by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best interest rates on personal loans, finding a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you want to borrow and you can compare several lenders to choose the best one for you.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

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How to request a credit limit increase for your Apple card https://fimendurance.com/how-to-request-a-credit-limit-increase-for-your-apple-card/ Wed, 17 Nov 2021 19:15:10 +0000 https://fimendurance.com/how-to-request-a-credit-limit-increase-for-your-apple-card/ If Apple Card is your choice, sometimes you may need a higher credit limit. Fortunately, the credit card company made it quick and easy to apply for an increase in the credit limit for the Apple card. Here, we’ll walk you through the easy-to-follow steps. How to request additional credit on your Apple Card When […]]]>

If Apple Card is your choice, sometimes you may need a higher credit limit. Fortunately, the credit card company made it quick and easy to apply for an increase in the credit limit for the Apple card. Here, we’ll walk you through the easy-to-follow steps.

How to request additional credit on your Apple Card

When the 2021 JD Power U.S. Credit Card Satisfaction Survey was released, Goldman Sachs ranked much better than other midsize credit card issuers. The Apple Card is the only card issued by Goldman Sachs, and based on their JD Power rating, the company prides itself on customer satisfaction. Perhaps this is one of the reasons they made it so easy to ask for a credit limit increase. Here are three options.

Call

If you have an Apple Card and are a dedicated user of Apple products, chances are you are pretty tech savvy. However, if you don’t like requesting an increase in your Apple card through iPhone or iPad, call the folks at Goldman Sachs. Customer service can be reached by calling (877) 255-5923.

iPhone

Applying for an Apple card credit limit increase isn’t much easier than reaching for your iPhone. This is how it works:

  • Open the Wallet app
  • Tap Apple Card
  • Tap the Plus button (the button with three horizontal dots)
  • Tap the Message button (it’s the one that looks a bit like a cartoon thought bubble)
  • Type a message requesting a credit increase
  • Press the Send button (the arrow pointing up)

iPad

You can also apply for a credit limit increase using your iPad. Here’s how:

  • Open the Settings app
  • Scroll down and tap on Wallet and Apple Pay
  • Tap Apple Card
  • Tap the Info tab
  • Press the Message button
  • Type a message requesting an upper limit
  • Press the send button

And after?

Goldman Sachs will take a fresh look at your credit history (which may include a credit check). This time, he’ll pay close attention to your Apple Card customer history. According to the Goldman Sachs website, you will need at least six months of payment history from your Apple Card as agreed.

While Goldman Sachs doesn’t explicitly say what it’s looking for when reviewing your application, a quick glance at the eligibility requirements for opening an Apple Card account offers some insight. In short, meeting these criteria will improve your chances of increasing your credit limit:

  • You have been using the Apple Card for at least six months.
  • You paid for your Apple Card on time each month and kept your overall credit usage rate low. “Credit Usage Rate” refers to the percentage of your available credit that you are using. Let’s say you have three credit cards, each with a credit limit of $ 5,000. When a company (like Goldman Sachs) checks your creditworthiness, it gets a little nervous if your cards are charged at maximum.
  • You are not in the habit of asking for an increase in your credit card limit.
  • Nothing of note has happened to your credit score since you filed your initial Apple Card application. If a quick check indicates that your credit score has plunged, Goldman Sachs may have reason to worry that an increase in the Apple card limit will make it difficult to manage your finances.

Focus on your credit score

The past two years have been difficult for everyone, and some people who once had a lot of money in their bank account have started to wonder where they would find the daily money to pay their bills. If Goldman Sachs denies your request to increase your credit limit, it may be due to a drop in your credit score.

Building a great credit score can take years and is always a long-term goal. In the short term, however, these steps should help you see improvement.

Go over your credit report with a fine tooth comb

You have the right to request a free copy of your credit report from the Big Three Credit Reporting Agencies once a year. Once you have a copy from each agency, comb through it. Looking for mistakes. For example, if you see a debt that has never been yours, it is a mistake and it could lower your credit score. If you’ve paid off a debt in full and your credit report still shows a balance, that’s another mistake that could lower your credit score.

Litigation errors

It is much easier to dispute errors on your credit report than before. It’s as easy as going to the credit reporting agency’s website and using their online portal to let them know that your report contains an error. According to the Fair Credit Reporting Act, the agency has 30 to 45 days to investigate your claim and an additional five days to notify you of the results of its investigation.

Refund balances

The credit utilization rate (also known as “Amounts Due”) represents 30% of your total credit score. The higher your balances, the higher your utilization rate. Reduce your debt, starting with credit card debt. The goal is to only use a small percentage of your available credit.

Considering that the average credit card limit in the United States in 2019 (for all cards held by a single person) was $ 31,015, it’s easy to see how keeping balances low can increase l use of credit.

Keep old credit cards open

As tempting as it may be to cut and cancel credit cards that made you spend more than you should, don’t. If you can get by without using the credit available on these cards, it lowers your credit utilization rate. As far as the credit card issuer can see, you have all of this credit but choose to use a small percentage of it. If you’re worried that you might be tempted to remove the cards and use them, give them to a friend or family member to keep them safe.

Make all payments on time

No matter what happens, strive to receive payments on time. It is a habit that slowly but steadily builds your credit score.

Maintain a mixture

Your “credit mix” is worth 10% of your credit score. A good credit mix means there is more than one thing in your credit portfolio. That is, if the only credit you had were four car payments or four credit cards, a creditor would wonder if you are able to handle different types of credit. Show them you are by mixing up your debts.

Of course, your credit score may already be in great shape. If so, good job! Now all you have to do is wait for Goldman Sachs to return and continue your good credit habits. And the next time you apply for a credit card, you’ll be in great shape to apply for the high credit limit card you’re looking for.


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NewDay Launches New Digital Account Giving Customers Up To £ 5,000 Credit Limit https://fimendurance.com/newday-launches-new-digital-account-giving-customers-up-to-5000-credit-limit/ Wed, 17 Nov 2021 14:47:50 +0000 https://fimendurance.com/newday-launches-new-digital-account-giving-customers-up-to-5000-credit-limit/ NewDay, one of the UK’s largest consumer credit providers, launched Newpay, an instant access digital credit account designed to help people spread the cost of larger carts and online purchases . Newpay offers customers a digital credit limit of up to £ 5,000, which can be used by a range of online retailers, allowing them […]]]>

NewDay, one of the UK’s largest consumer credit providers, launched Newpay, an instant access digital credit account designed to help people spread the cost of larger carts and online purchases .

Newpay offers customers a digital credit limit of up to £ 5,000, which can be used by a range of online retailers, allowing them to break down the cost of internet shopping into manageable monthly payments, with a single amount at pay monthly – even if a person has multiple payment plans.

There is only one account for all purchases, allowing customers to view their Newpay purchases in one place, either online through the Newpay website or in the Newpay app.

A credit product regulated by the Financial Conduct Authority (FCA), Newpay uses the same affordability verification standard as NewDay’s other consumer credit products, with an individual’s repayment capacity taken into account at the stage. demand.

NewDay branded credit cards

  • Aqua credit card
  • Ball credit card
  • Opus credit card
  • Fluid credit card

NewDay’s co-branded credit cards

  • Amazon credit card
  • Tui Credit Card
  • Debenhams Credit Card
  • House of Fraser Credit Card
  • Laura Ashley Credit Card
  • Burton Menswear Credit Card
  • Dorothy Perkins Credit Card
  • Evans Credit Card
  • Miss Selfridge Credit Card
  • Credit card holding
  • Topman Credit Card
  • Topshop Credit Card
  • Wallis credit card

The Newpay eligibility check does not impact anyone’s credit report as a quick “risk-free” check is performed.

If a customer passes the eligibility check and decides to apply for a Newpay account, a more detailed check, which will appear on their credit report, will be performed.

As a credit account, Newpay can help customers build their credit score over time as long as they stay within their credit limit and make their monthly payments on time.

This is a key differentiator for customers, unlike some unregulated Buy Now Pay Later products on the market.

Newpay customers only need to be approved once and receive a credit limit that will apply to all current and future purchases made through their Newpay account, rather than having each transaction approved individually.

Customers can use their Newpay account for multiple purchases, as long as the balance of all purchases remains within their credit limit.

Latest personal finance stories

Newpay allows a range of payment plans, including:

  • Monthly installments with fixed payments over periods of six to 24 months for purchases over £ 100 at the customer’s standard interest rate
  • Monthly payments with fixed payments of six to 24 months at 0% interest with selected retailers
  • Revolving credit

Customers simply choose which of these payment plans they want when making their purchase. The Newpay app allows customers to easily track and manage payments.



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Ian Corfield, Commercial Director of NewDay, said: “We believe Newpay can help meet customer needs in the evolving e-commerce space. Many unregulated Buy Now, Pay Later providers offer products that require customers to make multiple payments on these plans each month.

“With Newpay, we wanted to offer customers the ability to choose the payment plans and timeframes that suit them, with customers only paying one amount per month, even if they have multiple payment plans in place for their purchases. .

“As a consumer credit company, we believe that our regulated offering and our expertise in understanding and assessing an individual’s credit profile positions us to provide customers with meaningful products. Newpay helps people get ahead with credit as long as they stick to their credit limit and make their monthly payments on time.

Get the latest news on savings and benefits straight to your inbox. Sign up for our weekly Money newsletter here.



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How to increase your Capital One credit limit https://fimendurance.com/how-to-increase-your-capital-one-credit-limit/ https://fimendurance.com/how-to-increase-your-capital-one-credit-limit/#respond Mon, 01 Nov 2021 20:10:34 +0000 https://fimendurance.com/how-to-increase-your-capital-one-credit-limit/ There is a fairly wide selection of Capital One credit cards, and the issuer’s card lineup covers various categories and income levels. Over time, a customer could switch from a basic Capital One credit card to the issuer’s premium products with their perks and bonuses. A popular alternative is to get a higher credit limit, […]]]>

There is a fairly wide selection of Capital One credit cards, and the issuer’s card lineup covers various categories and income levels. Over time, a customer could switch from a basic Capital One credit card to the issuer’s premium products with their perks and bonuses.

A popular alternative is to get a higher credit limit, which takes time, diligence, and planning. Luckily, we’re here to help. Here is our guide to getting a Capital One credit increase.

Are you eligible for a Capital One credit increase?

To be eligible for a credit limit increase, a Capital One credit card account must meet the following criteria:

  1. Has not had an increase or decrease in credit limit in the past six months.
  2. Have more than three months (and possibly longer; anecdotal evidence suggests that Capital One often turns down requests for accounts less than six months old)
  3. Not be a secured credit card

Assuming you’ve cleared these hurdles, Capital One uses these factors to decide if you can get your credit limit increased:

  1. Whether or not you pay your credit card bills on time. (This includes all of your cards, not just Capital One products.)
  2. You consistently pay more than the minimum payment, which helps to continually reduce outstanding debt.
  3. Your personal information is up to date. This includes personal and family details, as well as income sources and amounts. Capital One recommends updating it at least once a year.

When to request a credit limit increase

Just because you can ask for an increase in your credit limit doesn’t mean you should. Before you apply, check if any of these situations apply to you, then make the best choice for you.

Reasons not to get a credit limit increase

Here are a few reasons why you may not want to request this increase just yet:

  1. Your credit rating is low. If your credit is poor to excellent, you may not want to apply for an increase in your credit limit just yet. The requests usually put a heavy strain on your credit report, which can further lower your score. Serious inquiries stay on your credit report for two years, but they only affect your credit score for one year. If you are in this situation, you could start by improving your credit and requesting an increase afterwards.
  2. You earn less money or are in between jobs. Your line of credit is partly based on your income. If you report lower income, the card issuer may deny your upper limit request.

Reasons you might want to increase your credit limit

If you qualify for a raise and regularly pay your credit card bills on time, increasing the credit limit could give you the peace of mind that you can handle an emergency expense even if you don’t. don’t have the savings to cover it.

Another important benefit of increasing your credit limit is that your credit score can increase. This is because a large part of your score is based on your credit usage rate or how much you have over your limit. Say you have a credit card, the limit is $ 1,000 and your balance is $ 500. Your credit utilization rate is 50%. If you get approval to increase your credit limit and your limit goes up to $ 2,000, your usage drops to 25% (assuming you don’t add to your existing balance). Credit scores tend to increase as usage decreases, so don’t be surprised to see a significant improvement in credit scores in a situation like this. Usage is calculated for each card, and for all cards combined. So don’t max out one card even if you have others.

A great tool for digging deeper into the details of your credit score – and, most importantly, how to improve it – is Capital One’s CreditWise. CreditWise is an online tool that provides free credit scores not only to Capital One cardholders, but anyone who wants to monitor their score. You will get information about the factors that affect your score and the steps you can take to increase your credit score.

Automatic increase in credit limit

An ideal situation as a credit card holder would be to receive a credit limit increase without doing anything. And it happens sometimes.

Some new Capital One cardholders have been pleasantly surprised to receive a credit boost within the first six months of owning their card. It appears that the issuer automatically raises the credit limit for some cards after the owner makes their first five payments on time, at least for some account holders. (Automatic increases are never guaranteed.)

In addition, some credit card issuers review their accounts every few months. They can grant automatic credit limit increases to cardholders who regularly pay off their statement balances on time and, ideally, in full.

That said, don’t rely exclusively on Capital One’s generosity to improve your credit limit. Work on paying your credit card bills on time (and in full if possible). These constant payments, combined with borrowing what you can afford, can help you qualify for an increase in your credit limit.

Request a credit limit increase

As with most credit cards, there are several ways to request a credit limit increase on your Capital One card. The easiest way is probably to call the sender directly or to apply online through your account’s web portal.

Either way, Capital One will ask you for some information, including:

  1. Employment status
  2. Total annual income
  3. Monthly mortgage or rent payment

This data meets federal requirements for the information needed in a request for a credit limit increase.

Best practices when requesting a credit limit increase

Each card issuer has slightly different criteria when evaluating a request to increase a cardholder’s credit limit. But it’s a safe bet that your issuer will prioritize the same classic data points, weighing heavily on things like income, credit usage, and payment history.

Ultimately, credit is about trust and faith. Your creditor should sleep at night comfortable with the fact that you will pay back the money you borrowed. Here are some tips to keep in mind when applying for a credit limit increase:

  1. Emphasize the consistency with which you paid on time.
  2. Indicate how often you pay your balance in full.
  3. If your income has increased, let the representative know.
  4. If your expenses have gone down (especially housing costs), be sure to write it down.
  5. Make your request reasonable – a general rule of thumb is to request a maximum lift of around 25% (although Capital One itself will determine the new limit if approved).


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How to request a credit limit increase and get approved https://fimendurance.com/how-to-request-a-credit-limit-increase-and-get-approved/ https://fimendurance.com/how-to-request-a-credit-limit-increase-and-get-approved/#respond Thu, 14 Oct 2021 07:00:00 +0000 https://fimendurance.com/how-to-request-a-credit-limit-increase-and-get-approved/ Advertiser Disclosure: At Slickdeals, we work hard to find the best deals. Some products in our items are from partners who may offer compensation to us, but that does not change our opinions. When you open a credit card, it comes with a maximum amount that you are allowed to borrow at any time. This […]]]>

Advertiser Disclosure: At Slickdeals, we work hard to find the best deals. Some products in our items are from partners who may offer compensation to us, but that does not change our opinions.

When you open a credit card, it comes with a maximum amount that you are allowed to borrow at any time. This number is known as your credit limit. While you usually can’t spend more than the credit limit on your account, this number can adjust over time.

Sometimes your card issuer will increase your credit limit on its own. Other times, you might get a higher limit just by applying.

Ask yourself why you want a higher credit limit

Before we get into the tips for asking for a credit limit increase, it’s important to take a break. Ask yourself why you want the ability to charge more on your credit card.

  • Would you like to add an authorized user to your account and need a larger credit limit to keep up with the increased spending?

  • How would you like to be able to make bigger purchases and earn more rewards?

  • Have you heard that a higher credit limit could increase your credit scores?

If any of the above motivates you to want to increase your credit limit, asking for one might help (provided you manage your credit card well). But if you want a higher credit limit because you’ve depleted your account or rolled over a high month-to-month balance, a higher credit limit will only prepare you for more credit and financial problems down the road. ‘to come up.

How to request a credit limit increase

Once you’ve thought about it and think that a higher credit limit could be good for you, here are some tips for applying for one.

1. Prepare your credit in advance
2. Determine the amount of credit to request
3. What to say when requesting an increase

Prepare your credit in advance

Chances are, your card issuer will check your credit when you request a credit limit increase. Since you know that at least one of your credit reports will likely be checked, you should review them yourself ahead of time.

You have the right to access a free credit report from the three credit bureaus (Equifax, TransUnion and Experian) once every 12 months. Visit Annual Credit Report to request. There are also several places online where you can access your reports for free.

Likewise, the free Credit Karma and Experian services help you boost your credit score and easily monitor your three credit reports from apps on your phone. In fact, Experian lets you add monthly Netflix subscription payments to your credit history (also for free).

After downloading the reports, go through them one by one. Look for errors or mistakes. (They happen.) If you find negative and inaccurate items on your credit reports, they could be damaging your credit scores. Fortunately, the Fair Credit Reporting Act allows you to dispute any questionable credit information you discover. Check out this guide from the Consumer Financial Protection Bureau for tips.

It is also a good idea to reduce your credit card balances to $ 0 and give them the option to update themselves with the credit bureaus. This can help your credit scores by lowering your credit utilization rate (largely responsible for 30% of your FICO score). Being less in debt can also improve your debt-to-income ratio – another factor your card issuer may consider when considering your request for a limit increase.

Determine the amount of credit to request

Before you contact your credit card issuer, you should have an idea of ​​what you want your new credit limit to be. A good rule of thumb is to stick with an increase of around 10-25% when you apply.

For example, if your current credit limit is $ 4,000, you might consider requesting a new limit of up to $ 5,000. If you ask for a limit that makes your card issuer uncomfortable, they may offer to increase your limit (but not as much as requested) or they may deny your request altogether.

Request an increase in the credit limit

Once you’re ready to apply, you probably have a few options. Many card issuers will allow you to apply for a higher credit limit online or over the phone. A phone call will usually be your best bet. Talking to a human gives you a chance to get your point across.

Be prepared to let your credit card issuer know of any information that might work in your favor. Has your household income increased since you completed your initial credit card application? If so, tell the customer service representative when you make your request.

a mother and her son are looking at a tablet

Credit: Twenty20

How asking for a higher credit limit affects your credit scores

When considering asking your credit card issuer for a higher credit limit, you should be aware of how the request might affect your credit scores. Often the result of a higher credit limit is positive. If your application is approved, the upper limit may reduce your rate of use of your credit. As mentioned, lower usage could give your credit scores a boost.

Of course, it is possible that your request for a credit limit increase will be refused. If this happens, your credit scores could take a hit.

The denial itself will not impact your credit. But, when your card issuer reviews your application, they will most likely check your credit report. This is called a hard inquiry or a hard pull on your credit report. Serious surveys influence 10% of your FICO score (and not in a good way). Therefore, a new credit check could slightly reduce your credit score.

Manage your new credit limit

Approving a higher credit limit has the potential to improve credit scores. However, the impact of an increase in the credit limit on your scores depends on how you manage your accounts.

Whether your credit card limit is $ 300 or $ 30,000, you should always pay your statement balance in full each month. Payments on time are also essential. Follow these rules and you will be off to a good start.

More credit card rewards

Credit cards have a reputation for driving people into debt. Yet the idea that opening credit cards is a bad financial choice is neither fair nor accurate. You decide how you will use your credit cards, just as you decide how you will use the money in your bank account.

Our Card Raids help people maximize their credit card reward earnings for their daily planned spending. Here are a few to get you started:

If you are confident that you can manage your credit cards responsibly (paying on time and in full every month), your accounts can be an asset rather than a burden. A well-managed credit card can help you build better credit scores over time and can help you reap valuable rewards.

Related Articles

Although we work hard on our research, we don’t always provide a complete list of all available offers from credit card companies and banks. And because offers may change, we cannot guarantee that our information will always be up to date, so we encourage you to check all the terms and conditions of any financial product before applying.


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