Steps to Check Your Credit Rating

Creditors will measure your credit rating based on the following three main things.

Capacity: Creditors will check to see if your income exceeds your expenses so that you ca comfortably pay the debt. A creditor will then want to know: about your income - from all sources, the fixed expenses and other debts The amount remaining from your total net income, is your capacity.

Secured Credit, Is an almost guaranteed way to rebuild your credit. Other credit considerations are either ignored or carry comparatively little weight in the credit decision. The difference is your equity or net worth in the asset. This is what you have available to secure a loan. The point is that collateral gives you a borrowing power approximately equal to your equity in your assets.

Creditors next consider your character. How important this is depends upon the type of credit, who your creditors are. They are less concerned with your character than are unsecured creditors who can only rely on your prior reliability for honoring your obligations. When creditors check your character, they basically look at how you satisfied your past obligations. How many credit defaults have you had? What was the reason for the defaults? How recent are they? Do you own your own home? If you rent. For how long have you rented the same apartment or house? Do you have a checking account? Do you have a savings account with regular deposits? Do you have a payroll savings plan at work? Do you have a telephone in your own name? Do you have a criminal record? Have you filed bankruptcy?

Positive answers to these nine questions will often offset an otherwise negative credit report. If your past credit character is good.