All about loans and insurance: Credit history – a determining factor of your financial trustworthiness for any bank or lender!

What is a credit history? What factors affect the credit history? Why credit history is of such great importance for your future credit career? Ways to improve your credit history tracking. Is there any chance to get bank financial “aid” with bad credit history or no credit history? The ways to start your credit history.

If your credit applications are refused by most lender it means that there are convincing reasons on this matter. In most cases the main reason for credit or loan application refusal is bad credit record or bad credit history. This review will help you to learn what credit history is, how the credit history affects your financial trustworthiness and your chances to get a loan and the ways to improve your credit history as well.

Credit history is a tracking of your financial reputation recording all your financial transactions in any kind of relations. This may be bank credit accounts and limits on credit cards, paying bills and many others. Credit history is run on every citizen be special agencies recording the information of your incomes, your debts, credits and loans, the periods needed to cover these loans and other factors from different sources. There are different notions applied to credit history term. This may be credit rating, credit record and many others, though being slightly different in their meanings. There are different scales to present your credit history. Many institutions use FICO score which is displayed in numbers and is easy to interpret. The lowest numbers perform the lowest financial worthiness when the highest pose you as a reliable and liable borrower. Credit history will help you to increase the loaned sums of money and decrease the interest rates applied to your loans.

Your credit history is affected by many factors but not only your relations with bank. You need a credit history check not only in case you are going to get a new loan or apply for a new credit card. Credit history is mostly checked when you are accepted to a new job. The employers interpret a credit history as a proof of your responsibility and financial stability. To check your credit history you can use numerous online services providing you a credit report on the request. These services can be free or toll. Every citizen though can require his or her credit record once a year absolutely free. You can do it in three available ways: either through a special website filling in the form of credit report request, or calling a toll free telephone service or via email.

Why it is important to keep tracking of your credit history?

Getting your annual free report of credit history you will be able to find out whether you have a bad credit history as early as possible and undertake some measures which will help to improve your bad credit history and increase your credit rating. Having a low credit score does not mean you will not be able to get a loan or other financial services from banks or other financial institutions.

Now credit for bad credit history is no more ban. You can apply to any financial organization catering to poor credit clients and get a necessary loan, however this loan or credit will be ruled by other terms. What is a difference of bad credit history loan and traditional loans for clients with perfect credit history? Bad credit history loans are usually provided at higher interest rates and give smaller amounts of cash for highly restricted periods of time. However these bad credit loans are a perfect way to improve credit history. Each time you will get a bad credit loan, pay it carefully and correctly on time and covering higher interest rates you will gradually improve your bad credit score.

If you suddenly learn that you credit score is rather low than there are several ways on how to improve credit history. Bad credit history is not a verdict. First you should do is think of what loans and credits you will be in need of in the nearest future. If you do not plan to get mortgages or apply for automobile loans then the chances are that you will be able to improve your credit history though slowly but efficiently.

Credit history is greatly affected by existing debts. If you have some indebtness then you should cover it as soon as possible. This will help to improve your history tracking and show your willingness to recover your financial state.

Then you should work out a new schedule of paying back your debts if you can not cover the entire amount at once. If you can not do this on your own consult a financial specialist or a creditor directly explaining your willingness to cover the debt and to recover. No financial institutions will take drastic measures against a debtor willing to cooperate and discharge the debts. Another way to cover the debt is refinancing the amount of debt in other financial institution. However you should understand that having a bad credit you may be applied a higher interest rates than this running your loan now!

Another important issue for those young people who just start their financial career with banks and financial organizations is how to make credit history. Taking a loan or getting a credit card is easy for clients with some credit rating. Having a zero credit history can pose a problem in getting a loan, mortgage or car credit. The first way to start your credit history is to start a depositing account with a small amount of cash on it and add some certain amount of cash on a monthly basis. Another way how to make credit history is to apply for a credit card. A credit card with no credit history can be of two types secured and unsecured. Unsecured credit card does not need any depositing or fee to start a card meanwhile a secured card needs a deposit each time you apply for a credit limit increase or just for another credit card. Secured credit cards are offered to people with bad credit record in most cases.

It may seem difficult to find a credit card for no credit history but there are banks which issue cards for no credit history customers. This card will be a start of your credit history. The credit limit on this card can be insufficient. However it may be increased if you thoroughly keep to the terms and commissions of the card using. Using your credit card correctly you can apply for a credit limit increase in a while. If the bank issued your credit cards refuses you to increase the credit limit on your card you can apply to another institution for another credit card. In this case your first card will help you start a credit history and the next card will not be credit card for no credit history. It is strongly recommended that you use your next credit card limit to cover the debt on your previous. Having even a small credit history record you can reckon upon lower interest rates and higher credit limits.

Applying for a credit card you should take into account another services added to your bank account. These may be cashing back of a percentage from the amount used for a certain period of time, some bonuses and points which you can use for paying for special services and many other benefits as additional protection or 24/7 customer support. The next thing to take into account is the annual percentage rates and annual fee for card using. Besides having interest rates on your credit limit on the credit card you will be charged with annual fees for credit card service.

No matter what goals you are hunting when starting your credit history you should realize that this financial evaluations is one of the most important characteristics you will be appreciated with. Credit history is checked when you are applying to banks and financial organizations, offered a range of services and is going to get a new job or start your business! Getting your annual report will help you to find out your rating and improve it in case of being poor. Having a zero credit history you can start it right away applying for a special type of credit card!