New answers tagged credit-score
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Generally any loan that you make payments for on time and in full will positively affect your credit score. Banks tend not to care what you buy or how much it costs, they will likely also not have any insight into whether or not something was a good purchase.
Banks care about you paying back money that you owe.
Even if you get a loan to go gambling at the ...
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they said that I can apply to a 2.74% loan
The thing is, anyone can apply for a loan, no matter how good or bad your credit score is.
Some loan agents (or your contact at the bank) may get a % bonus for all applications so the agent is inclined to encourage you to apply. However, that doesn't mean that you're one of those who will qualify for it. The agent/...
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I find the possible answers to your specific question fascinating:
If it is true, why do insurance companies do that?
In the US there have been studies that show a correlation between higher credit scores and lower risk to the insurance company (and vice versa). Here are some examples:
Texas Business Review, 2003
Federal Trade Commission, 2007 with the ...
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Ok So I worked some time in the insurance industry, in Germany, so here is what´s relevant for you:
Car insurance is mainly priced by 4 factors:
Your track-record "Schadenfreiheitsklasse" - you can take that with you whenever you change the insurance company. It will be lower the more years you drive and go up if you have an accident. The old company is ...
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Banks use a number of factors to determine creditworthiness. Although underwriting decisions are lender-specific, there are some general guidelines they all typically use.
Specifically, for larger loans (i.e. a car loan or mortgage), banks like to see a "trade line" history in addition to a generally good credit report. That is, they like to see that you've ...
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Is it true?
Yes, in the US, as indicated in the articles you have found. Many auto insurers use credit score in their underwriting process as part of the function that determines the cost of your policy. They are allowed to do this because there is substantial evidence that people with lower credit scores present a higher risk of loss and a risk of not ...
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Its company dependent and might change in the future. Insurance companies use whatever means necessary to rate their customers accurately. To me, the correlation that people with bad credit scores are poor property and casualty insurance risks, is not overreaching.
The "bad" part is important. How hard is it to keep your credit score above some minimal ...
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Because there is a correlation between credit scores and accident rates. Meaning that people with bad credit scores tend to get into more accidents. There's not necessarily a causation, and it may not apply to you, but it is one factor that insurance companies use to set rates more equitably.
Also, I wouldn't expect it to be a huge factor. Your driving ...
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By the sounds of it your credit history is mainly revolving credit ( credit cards or credit with no set paid installments ). What this potentially means is that the bank you are trying to get a loan from may not think your credit history is diversified enough, as in you don't have any installment loans or any other long term loans to "prove your credit ...
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The reason I was given was the following: "Insufficient recent satisfactory credit history or no credit file."
You're focusing on "no credit file" but ignoring the just-as-important "Insufficient recent satisfactory credit history".
Now, you might think that your your credit history is satisfactory enough to get a (quite low) 2.74% auto loan, but obviously ...
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I would start with a look at your actual credit report. Normally, you can get this for free at annualcreditreport.com, which is the official site for this. However, you're an immigrant, and this site definitely needs a SSN. Experian's site also has a free credit report lookup, which might work better.
What's most likely is that your credit card hasn't been ...
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Read what they're saying. They're not saying they'll issue you a credit card without a hard pull. They are saying you can see if you qualify without a hard pull. What actually happens is
You apply, and they ask you questions -- to collect all the data needed to give you the card.
They do a "soft pull" to verify some of your answers.
They offer you the ...
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Companies that want to offer credit to new or existing customers, do a soft pull to get the basic information they need to put you in the "maybe" category. If you are an existing customer they have even more information and can use the info in the soft pull to put you in the "almost certain" category.
The fine print in the advertising tells you that you ...
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What I know about the credit score in the US I only know via this site.
But what I claim to know is: the average age of the accounts play a big role in this game.
So in the long run, you should have accounts with high longevity.
If you take a personal loan, you borrow a certain amount (as you say: about $2000), pay it off in some months and the account is ...
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When doing anything sensitive with financial information, or just in general, it's always best to go "straight to the source" when possible. Instead of following links or calling arbitrary numbers, I always try to look up contact information directly. The dispute process for Equifax is available directly on their website.
In terms of building your credit, ...
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