Basically your credit score is based on certain criteria and that criteria, such as car/mortgage loans or credit cards, is either good or bad. Credit cards, loans, etc. are not weighed equally when determining your credit score. For example, if you have perfect payments for your car loan or have even payed it off, that will help to improve your score. However, if you have very high balance or over limit credit cards that reflects negatively on your score, and it has more weight than a car loan and therefore will cause a larger negative effect on your score. There is no exact formula for calculating it on your own (i dont think). Also when you apply for payday loans online from companies like Elc Loans there is usually no credit check performed.
There are some sure fire ways to build up your credit though.
- Do not close any existing credit cards, paid off or not. This is because these cards give you credit history. Having a longer credit history reflects POSITIVELY on your score. Of course, you will want to pay down your balances but you shouldn’t close the account if you’ve paid it off.
- Pay your bills on time every month. This is so obvious but it is so key when determining your risk level, which is really what the credit score serves to show anyway. Consistentl, on-time payments reflect POSITIVELY on your score.
- If you have NO CREDIT history, and you dont own a home, it would be wise to obtain a credit card and simply use it for gas or something menial like groceries and pay it off each month. This is simply an easy way to establish some sort of credit history.
- Owning a home is a huge influence on your credit. Maybe even more so than credit cards, you will want to pay on-time every month. Forclosure or short sales will absolutely kill your credit.
I hope this helps to understand. It’s good to monitor your credit by using those Free Credit sites because they show you what your credit history looks like so far and then you know what you need to fix.
Most rental car companies will NOT accept prepaid cards….been there done that.
It was Advantage Auto Rental. Be cautious with these companies and read the contract. Most of the time they are local car rental companies and you can’t take the car from the state. But they do serve a purpose of renting without a credit card if you are in a bind. I read any and every contract which I might sign and did research on the company. I took the car out of state, too. It worked out very well.
I have to agree, my car insurance is 50% more than it should be because of my credit score i’m 34 years old, perfect driving record, no accidents ever, not even a fender bender. Even the insurance guy couldnt figure it out till he saw my credit score. I pay $150 a month car insurance on a Hyundai Accent. That price is almost have my car note! My grandmother who I live with and who has great credit, pays around $150 a YEAR!!! She’s had accidents but then she also has a longer driving record too.