By Zulika van Heerden ©2007

Credit scores are one of the most important factors that lenders consider when someone applies for a loan. An individual’s score is considered to be an indicator of his or her creditworthiness.

The higher your score, the easier it is to get approved for a loan or credit card. It is possible for individuals who don’t have great scores to obtain financing and credit cards, but they are considered to represent greater risk. The terms under which their accounts are approved are not as favorable as those of individuals who have higher credit ratings.

Factors Impacting Credit Score

Many different issues impact your score. It is possible for individuals who have little or no debt to have lower credit scores than those who carry significant amounts of debt. Factors that are used in calculating an individual’s score include: the amount of revolving credit currently available to the individual, the person’s history of making payments on current debt, and how much debt he or she is currently carrying.

Verify Credit Report Data

If you’re planning to apply for a loan or charge card account in the near future, it’s a good idea to pull a copy of your credit report to make sure that it is completely accurate. If you find errors on your credit report, you should contact both the reporting agency and the company reporting the information.

It is not uncommon for errors to show up on credit reports. However, a lender isn’t just going to trust you about reporting errors. In order to improve your score, you will have to get the errors fixed. It takes time to get erroneous information removed from your credit history, so it’s a good idea to check your credit report at least once each year.

For more on debt consolidation see below (these articles should be links back to other articles on the site.)

-Credit Card Debt Secrets
-Steps to Eliminte Credit Card Debt
-Debt Free Living
-Lowering Your Debt For Life
-Are your debts keeping you awake at night?

To apply for a debt consolidation loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the debt consolidation loan is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

20 Second Application