Translate Page To German Tranlate Page To Spanish Translate Page To French Translate Page To Italian Translate Page To Japanese Translate Page To Korean Translate Page To Portuguese Translate Page To Chinese
  Number Times Read : 29    Word Count: 553  
Categories

Arts & Entertainment
Business
Career
Cars and Trucks
Celebrities
Communications
Computers
Culture and Society
Disease & Illness
Environment
Fashion
Finance
Food & Beverage
Health & Fitness
Hobbies
Home & Family
Inspirational
Internet Business
Legal
Online Shopping
Pets & Animals
Politics
Product Reviews
Recreation & Sports
Reference & Education
Religion
Self Improvement
Travel & Leisure
Vehicles
Womens Issues
Writing & Speaking
 


   

How Debt Affects Your Credit Score



[Valid RSS feed]  Category Rss Feed - http://articlespromoter.com/rss.php?rss=51
By : Bell Brandon    19 or more times read
Submitted 2018-08-13 14:28:40
Your credit score is affected by the amount of debt that you owe. This can also be referred to as credit utilization. Even if you pay your bills on time, you still have to know how to get out of debt whenever you are in that position. You must avoid the different types of debt that you may currently have. Below is a list of reasons as to how and why they affect your credit score.

Installment Debts

An installment debt is something that most people are familiar with. If you had a house loan that has you paying $1,500 every month for the next 25 years, then you’re paying off an installment debt. It’s much easier to keep track of an installment debt than the other ones which means that it can really affect your credit score due to its perception and how common it is.

With an installment debt, you’re looking at the possibility of having a hard time getting a vehicle leasing company to agree with you on a price later on in the future if you had a house loan that you’re currently paying off or missed a payment for. Though there’s no specific formula on how to calculate installment debts, it’s much easier since you will have a written schedule.

Your credit score can also be affected by just having an installment debt, with no other factors. Many credit rating agencies specify that having a house loan will affect your chances of getting another house loan even if you are actually going to use both properties. This is due to the higher total amount of loan that you will have.

Revolving Debts

With a revolving debt, you’re looking at a dynamic figure that you will have to pay. Since it will vary from month to month, your actual credit report will also vary from month to month. If you are someone that uses their credit card to shop for groceries and other supplies every other month, you will tend to see a pattern with how much you spend so it’s easier to get out of debt San Diego.

A revolving debt is more common for people who don’t use cash to purchase their basic needs. Although revolving debts are viewed by everyday people as just cashless transactions, they can still affect your credit score especially if you don’t pay a revolving debt from the previous month. You have to make sure that you make good with the agreement that you have to avoid this.

Open Debts

The most common type of debt is an open debt. When you see this on your credit report, you will usually have an estimate as to how much you’re going to pay, however, you will still have to wait until you get your bill before you can pay your balance in full. This is a lot more common for transactions made with telecommunication companies.

They can affect your credit score if you keep having open debts that go unpaid or if your balances are too high for what you actually make.
Author Resource:- If you want to get out of debt, our team at Sentry Servicing can help you! We can help you pay off your credit card debt, avoid bankruptcy and get out of debt San Diego.
Article From Articles Promoter Article Directory

HTML Ready Article. Click on the "Copy" button to copy into your clipboard.




Firefox users please select/copy/paste as usual
New Members
select
Sign up
select
learn more
Affiliate Sign in
Affiliate Sign In
 
Nav Menu
Home
Login
Submit Articles
Submission Guidelines
Top Articles
Link Directory
About Us
Contact Us
Privacy Policy
RSS Feeds

Actions
Print This Article
Add To Favorites

 

Free Article Submission

Website Security Test