Credit Worthiness

Credit Worthiness is an important business and personal asset each person has to manage. I mean this is an asset which could make or break business relationships and interestingly in some cases personal relationships. This is a complex abstract thing that is evaluated in many ways by different entities. What factors contribute to the credit worthiness is really dependent on the case for which this is evaluated. Mostly for small debts or purchases the credit worthiness is just a credit card reference, but for larger one it starts with that but really ends with a personal visit by evaluators. The typical purchases where your credit worthiness dictates your payment terms are credit cards, real estate purchases, business credit, and any type of loans. This is also used to judge the qualification of foster parents, just to mention a diverse application of the concept. Given that the number of factors that contribute to this worthiness, it is worth noting the few important ones. And try to make sure your credit worthiness is in the positive side.

The first and foremost thing that companies and entities use to evaluate credit worthiness is the credit history. This can give your entire buying pattern till the current amount owed to others. The main factor that people are looking for is your payment pattern. They are interested in knowing if you missed any payments, got some cancelled due to non payments. These comments are added to the credit history. To make sure you are not penalized erroneously you got to be on a constant lookout for your credit history report. There are many companies which offer the alerting service when there are remarks added to your credit history. If you are planning on big purchases then you would like to make sure you subscribe to one of these services. The more accounts you have managed to acquire and positively closed, the more you are credit worthy. There is one more mechanism that companies use known as credit circles where they share the payment history of the clients and customers. It is very important that you make the regular minimum without fail and please do subscribe to the auto-pay for the minimum payments.

The other important things employed are bank references, and when appropriate trade references. The one more important thing to understand is that you may provide any number of references but the companies typically just give weight to 50% of the references only. They know that people don't give references to transactions where even a bit of negative energy. They give out positive references only, so the companies actively go out to fetch references. Once you make sure you have a good credit worthiness it is important to make a comparison shop when applying for any type of loan, mortgage etc. There are some good websites that take the pain out of completing 20 different forms and maintaining contact with so many folks. It has become a lot easier to get the best terms for your credit application.

Here is one great resource for Information on low interest rates and fees on mortgage loans and credit card loans. The other good resource for comparison shopping on renter's insurance, home owners insurance and auto insurance.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Credit Information:

Related Articles

How to Repair a Bad Credit Rating
If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that.
Online Credit Report and Online Credit Reports
Online credit reports are easily accessible to those interested in viewing them. If you have wondered about what kind of credit score you have, you can go on the Internet and look at your online credit report.
Credit Repair Scam - How To Avoid Being A Statistic?
A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job.
Credit Cards: What is the Universal Default Clause?
Most people who carry major credit cards are well aware that the interest rates associated with them tend to be higher than for other types of lending, such as home or auto loans. Anyone who has paid their credit card bill late more than once or twice is also aware that doing so may cause the interest rate on their card to go up - sometimes by quite a lot.
What Are the Most Common Ways to Commit Identity Theft or Fraud?
It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves information from your daily life, from shopping, bill-paying, and even applying for a job.
Credit Cards or Store Cards - Which Is Better?
Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances.
Credit Counseling -- Why It Doesnt Work For Most Debtors
"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"When you see ads like this, they are often from Credit Counseling firms.
Why Is It important!
Your credit is the most important thing you have other than your breathe. There are three types of people in this world.
Practical Suggestions for Protecting Yourself From Identity Theft
It's no surprise that thousands of Americans are victimized by identity theft each year. Last year more than 9,000,000 people were victims of identity theft amounting to some $45 billion dollars.
Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure
Let's face it, if you are facing the possibilities of losing your home due to a foreclosure and you think that you may never be able to purchase another home anytime soon. Keep reading.
What is on Your Credit Report?
Your credit report is a very important piece of the puzzle in your financial picture. It contains a historical record of your personal and financial information including a listing of your current and past debts and the timeliness of your payments.
UPS Delivers the Goods, Your Identity
Well now we add CitiGroup and UPS to the Identity Theft corporations who have allowed Americans identity to be lost. Each time we have another identity theft case, we find larger and large numbers being lost.
How To Choose A Credit Card
Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or a car loan.
Special Credit Information for Married Couples
If you are married, establish separate credit accounts.Try to finance real estate in just one partner's name to increase your investment financing potential.
How to Save Money on Your Credit Cards
Credit card companies make their money on the 85% of us who fail to pay the outstanding balance each month. Even if you are not in a position to pay the balance each month you can still save some money if use your card wisely.
Identity Theft - Who Would Want Mine?
With all my bills who would possibly want my credit? Let them steal my identity and pay my bills! Unfortunately, that's not the way it works. Many of us mistakenly believe that identity thieves hit only the wealthy.
Beware of Bogus Credit Repair Companies!
So-called "credit repair" companies claim they can remove negative information from credit reports. Advertising as "Credit Advisors," "Credit Rating Correction Services" or "Credit Consultants," they trumpet variations on this message: "Turned down because of bad credit? We can help!" Many of these companies charge hundreds if not thousands of dollars for the promise to "clean up" bad credit reports.
How You Can Help Prevent Identity Theft
How can I prevent Identity theft from happening to me? Never leave your receipt or slip in the ATM or gas pump. Pay attention to your habits, lock up or organize and file your bills, and bank statements.
What is Credit Card and Debit Card Blocking?
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card "blocking."What is Blocking?When you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total.
Bad Credit Loans For Those Who Seek Alternatives for New or Old Car
You can still save money on a Bad Credit Loan by comparing rates, checking out multiple policies, and negotiating with lenders.Getting a Bad Credit Loan doesn't have to be like basic training.