Credit Scores - How to assess your financial credibility
- What is credit score?
- How does it affect me?
- Who calculates it?
- How can I find out my score?
Your credit score helps the lenders with an authentic assessment of your credit risk. It is basically a number used by the lenders to decide as to what are the chances of retrieving their credits back from you on time. The credit reporting agencies maintain credit reports. These reports give information based on which the credit bureau scores are assigned. Information from credit applications or bank files is also considered as a type of score.
With the changing times credit scores play a crucial role in processing your loan. Credit score determines whether your loan will be processed or not. A good credit score ensures a greater loan amount at comparatively low interest rate. (This error was not there initially).
Standardizing the scores is a bit tough, but certainly not impossible. It's hard to say what a good score is, beyond the context of a single lending decision. A credit score of 750 may qualify you for a platinum credit card, whereas a score of 675 may indicate you're a better match for a standard card.
If you are looking out for another fresh loan to get rid of your earlier debts we do not consider it a wise decision. It hampers your credit score. As an alternative, we recommend you to enroll for debt consolidation. We have given a new lease of life to many people under similar condition. Debt will not be a nightmare for you anymore. Our debt consolidation program will make you debt free within a few years.
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#1
06-13-2007, 06:23 PM
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Junior Member
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Sub:
Credit Scores - How to assess your financial credibility
Do these payday loans actually affect your credit score?
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#2
06-13-2007, 06:28 PM
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Sub:
the only way a payday loan can affect your credit score is if the lender reports to the three major credit bureaus (Equifax, Transunion, or Experian). So far, I haven't found one that does that - they usually report you to Teletrack (not telecheck), which is only used by payday lenders anyway.
The only way I can see a payday loan showing up on your credit report is if the lender sent it to a collection agency like Bass & Associates. __________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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#3
06-13-2007, 06:34 PM
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So what is Teletrack then? A collection company?
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#4
06-13-2007, 06:38 PM
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Sub:
no - Teletrack is a database used pretty much only by subprime lenders and payday loan companies. They report your payment performance to Teletrack, and if you try to get a payday loan with another payday lender, you may not be able to. Not that it's a bad thing - if you're here trying to get out of payday loans, you sure don't want another one!
Teletrack does not show up on your credit report, and it doesn't affect anything else - just payday loans. Telecheck, now, is a different matter - that's the database used by banks to report if you've had NSF checks unpaid on your account, or your account was closed with a negative balance, or you had fraudulent activity on your account. That will make it difficult to open a checking account at another bank. __________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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#5
06-13-2007, 06:52 PM
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Join Date: Oct 2006
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Who do you have the loans from? You need to be more careful if you are dealing with storefront lenders, because most of them are a licensed business. I won't be too much worried about the online lenders because most of them are doing illegal business in different states. Let us know what companies you are dealing with. We will suggest further.
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#6
06-13-2007, 06:56 PM
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Ok- I just needed to know if these were going to affect my credit rating. Believe me I don't care if I can never get another payday loan again. No way would I ever want to get into this hole again. It seems as there is no way out. I have just started dealing with this mess and it is horrible.
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#7
06-13-2007, 06:59 PM
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Posts: 42
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mute805-
I am dealing with cashcentral,cashnetusa, ameriloan, purpose loans, oneclickcash, and payday1 all of them are internet loans.
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#8
06-13-2007, 07:04 PM
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introuble - since all of these are internet loans, I don't think you need to worry about your credit report at all.
__________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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#9
06-13-2007, 07:05 PM
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Posts: 42
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Thankyou. So all of the threats are them just trying to scare you then!
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#10
06-13-2007, 08:08 PM
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Join Date: Oct 2006
Posts: 198
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Perhaps yes. But make sure that you pay their principal amount only if they are not licensed. You don't want to face any actions just because you avoided the original balance. Go through your file and find out the outstanding balance. Then call each company for some arrangements. You will be through
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