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Axis Capital Group Business Funding Jakarta Review, What is A Credit Score? - 4 views
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More than three quarters of Americans live in credit. Your credit score can mean the difference between being denied or approved for credit, and a low or high interest rate. But many nationalities and migrants are not that aware of it. Here is how Axis Capital Business Funding, a credit source offering small companies loans for their business in over 10 states in America explains what credit score really is.
What It Is
Your credit score is a three- digit number generated by a mathematical algorithm using information in your credit report. It's designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.
FICO
There are a multitude of credit-scoring models in existence, but there's one that dominates the market: the FICO credit score. According to myFICO.com, the consumer website for the FICO score developer, "90 percent of all financial institutions in the U.S. use FICO scores in their decision-making process."
FICO scores range from 300 to 850, where a higher number indicates lower risk. There are also other existing online systems but mostly, if you encounter a site which asks you to pay, it may be a scam.
Cities like Singapore and Jakarta, Indonesia is now currently developing a new system similar to FICO to trace local credit scores and information. However, patronage remains to be a big problem as these cities are rarely using their credits.
Elements
Payment history: (35 percent) -- Your account payment information, including any delinquencies and public records.
Amounts owed: (30 percent) -- How much you owe on your accounts. The amount of available credit you're using on revolving accounts is heavily weighted.
Length of credit history: (15 percent) -- How long ago you opened accounts and time since account activity.
Types of credit used: (10 percent) -- The mix of accounts you have, such as revolving and installment.
New credit: (10 percent) -- Your pursuit of new credit, including credit inquiries and number of recently opened accounts.
Personal or demographic information such as age, race, address, marital status, income and employment don't affect the score.
Different score impact for same missteps
How much does a specific change affect a credit score? The answer is usually "it depends," and for good reason. Credit score developers don't reveal the exact point deductions. The weight of any given activity can also vary for different credit histories. You might want to review all your spending and the way you handle your credit card to get a high credit scoring.
Business Funding Axis Capital Group Jakarta Review about 7 Things You Do When Contribut... - 1 views
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Here are some tips you'll want to follow when enrolling in a 401(k) or other employer-sponsored retirement plan. 1. Contribute. The first thing you need to do is contribute, period - especially if your company offers a match. If you don't, you're literally turning down free money. The most common employer-sponsored plan is a 401(k), in which pre-tax money is deducted from each paycheck based on a percentage you choose, with an annual max of $17,500. 2. Be sure to contribute enough. Contributing a default percentage (on average 3%) simply isn't enough. A bump in your contribution percentage could mean thousands of dollars in retirement income down the road. 3. Roll over your plan from your previous job. With all the excitement of getting a new job, it's easy to forget (or dread) rolling over your old retirement plan into a new one. But failing to do so could cost you. 4. Increase your contribution over time. Early in your career, it's common for your initial contributions to start off low. 5. Be mindful of your portfolio. Stocks and bonds fluctuate, a lot. "Setting it and forgetting it" isn't a viable savings strategy. 6. Wait until retirement to cash out. While this seems like an obvious piece of advice, a lot of people look at their 401(k) as a reserve fund. 7. Resist the temptation to borrow from your plan. Borrowing against your account is far better than cashing out early, but you still face numerous risks.
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Your credit score is a three-digit numerical representation of your credit-worthiness, or how likely you are to reliably pay back money you borrow. It may seem simple enough, but credit scores aren't always intuitive. Even when you think you're doing the right thing financially, you may be actually hurting your credit score.
When you are dealing with your credit scores and reports, make sure you bring an extra memory bank and understanding. Be cautious before bursting out any complaints. The things involved in it may be complicated. Also, try not to believe other people say about credit scores. Make sure you verify the information first.
Well, for a starter, here are some common fictions created about credit scores Axis Capital Business Funding, a direct source of credit loans for your business based in America and has now expanded to Jakarta, Indonesia, has prepared.
Fiction: The more money you make, the better your credit score will be.
Fact: Your income has nothing to do with your credit score. It's not reported to the credit bureaus or listed on your credit report.
Fiction: Once you've paid a past-due debt, it will drop off of your credit report.
Fact: Late payments and other negative information remain on your credit report for seven years from the date of the initial late payment. Bankruptcies typically stick around for 10 years from the bankruptcy filing date. While that black mark may continue to soil your credit report, however, its effect on your credit score will lessen over time.
Fiction: Credit bureaus never make mistakes.
Fact: Now, this is one of the common misconceptions. Since credit reports generated by the three major credit-rating agencies are from a good system, many people do not review their credit report regularly. In truth, nearly 8 in 10 credit contain serious error or some sort of mistake, according to a survey by the U.S. Public Interest Research Groups. Because many errors can negatively impact your credit score, it's important to check your credit report regularly and dispute any inaccuracies you find.
Fiction: Practicing a cash-only policy will help your credit score.
Fact: Having good credit is a function of having credit available to you and using it responsibly. If you don't have or use credit, you may have no credit history at all and if you do, your credit score won't be as good as someone who consistently demonstrates responsible use of credit over time.
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