There are a number of factors that can give you a bad credit rating and make getting financing of any kind difficult, or at the least, more expensive. The lower your credit score, the more likely a bank or other finance company is to charge you higher rates of interest if they are willing to lend you money at all. This can make getting a new car, house, or other big purchase very expensive indeed.
Good or bad credit rating all revolves around one simple number that lenders refer to as FICO (short for Fair Isaac and Company which is the original company that came up with the scoring system used today). This number ranges between 300 and 850 with 300 being the very worst credit rating, and 850 being the very epitome of good credit. This score is based on the following percentages:
35 Percent of this score is based on you past payment history. This number indicates such factors as if you make your payments on time, or if you make them a few days, a few weeks, or a few months late, or if you do not make them at all.
For practically the last decade we’ve seen the credit card change from something only the rich use to something practically every person in the UK owns. I think the average number of credit cards per person in the uk is 2 or 3 and I know it’s commonplace for people to have 5 credit cards in their wallet or purse!
In my opinion the internet is responsible for most of the change in attitude, not only to credit cards, but finance in general, accross the UK. Something like 57 per cent of UK homes have broadband access today and this is obviously only set to increase over time.
So, how has this affected credit card and finance industry over the last 10 years? Firstly, there has been an increase in new internet only banks and credit card companies springing up. The traditional high street banks and building societies also created their online brands and products. Many financial products on offer via the internet have additional benefits or lower interest rates becuase the banks have less overheads and administrational work to do if customers are applying and managing their accounts online.
If you love to travel and you love charging it to plastic even more, airline credit cards are definitely worth considering. Vacations, business trips, out of state, out of country, even off the continent flights will earn you airmiles.
Airlines credit cards work by giving the cardholder a point for every dollar they spend or a certain amount of points for certain purchases. These points add up to airmiles, and these airmiles can then be used for flights to a destination of your choice. If you rack up enough airline miles by using your credit card, you can fly anywhere in the world completely free!
Pay Your Balance Fully
A credit card bin is a bank identification number (BIN). This credit card bin number is usually embedded in the credit card and provides information about the financial institution that has issued that particular credit card. Today, it is not just banks that issue credit cards. A credit card bin has become a very important piece of information in so far as proper identification of a credit card goes. Both BIN (bank identification number) and IIN (issuer identification number) refer to the same thing – credit card number.
No two credit cards can have the same numbers
There are six digits that form the first part of a credit card number. These numbers make up the credit card bin number. The remaining credit card numbers are then used for identifying the account that relates to that particular credit card. Both the first six numbers of a credit card bin and the remaining numbers are unique to a credit card and this ensures that no two credit cards can have the same set of numbers. The last digit is referred to as a check digit which helps in verifying and securing the credit card.
It is possible for you to gain credit card debt forgiveness in the present financial system. Debt forgiveness is a much more viable option to declaring bankruptcy. A lot of people with over $10000 in card debt have been able to get off up to 60% of their debts. If you are seeking debt relief, debt settlement and consolidation are the most popular options open to you. Read on to learn more on how you can get rid of credit card debt.
There is a proposed program in place in the financial industry that gives credit card companies the ability to write off debts for certain categories of customers. As the government grant the institutions relief, consumers should also benefit from debt forgiveness. You might qualify if you are enrolled with a debt management plan. Up to 40% of debts can be forgiven. Banks and the credit card companies don’t want pardon programs to be known to customers.
The credit card company can also wipe off what you owe if it falls under bad debt. Writing off bad credit card debt helps companies clear up their books. This makes them financially healthier. According the Nilson Report, financial institutions are expected to write off over 390 billion dollars over the next five years.