Personal Financial Management
Credit Season is focused on personal financial management. A key financial concept that is largely ignored and misunderstood. Our aim is to help people learn how to manage their finances better so that they can attain their financial and savings goals. Good personal financial management is what separates financial independence and financial stress. We aim to educate the client and readers through various financial resources and news to make the best financial decisions for themselves without taking on unnecessary risk.
Financial Resources and News
Credit Season also aims to provide the latest and most relevant news from the financial world to stay up to date with the latest happenings in the financial world and take their financial decisions based on market knowledge.
Some of the key personal financial management topics covered by Credit Season include
- Money management
- Retirement savings
- Personal health care
- Frugal living
These topics allow our clients to stay on top of the latest developments and updates in the market and the American economy. Our content is curated for the average American household, which is also our target market. Credit Season aims to educate the average American household about personal financial management, attain financial goals, and keep their credit rating good.
In addition to the services above, Credit Season is also a financial matchmaking site. We aim to connect our clients with personal credit providers based on the information provided to us by the clients.
Note: Credit Season does not lend money. We only act as a mediator and try to find the most relevant personal credit service provider for our clients, based on the data provided to us by the clients.
Credit Season works with a network of lending partners of high repute. Our clients’ data is used to match them with lending partners who match those requirements. Our lending partners provide many credit solutions that can help both individuals with good scores and those with bad scores looking to build up their credit.
Credit Season has a simple online application process, which can be completed in a few minutes. The application requires some basic data; once the data is submitted, it will be reviewed for matchmaking with appropriate and relevant lenders.
Applicants simply have to follow the steps mentioned below to complete the application and access the funds.
- Open the online application form and fill it in.
- Sign the terms and agreement of the contract.
- Withdraw your money from your bank account.
Data Privacy & Security
We take extra precautions that all personal information submitted on our website is secured with the latest encryption technology. We are also ROSCA (Restore Online Shoppers Confidence Act) compliant. We do not rent or sell your information, so you can be assured of not receiving spam email offers.
What is Credit?
Bad credit is a major issue faced by countless people in our society, but before we can understand what bad credit is, we must understand what credit is. Without having a grasp of what credit is, it will not be possible to truly understand the drawbacks of having bad credit.
The world today is based upon debt. It will not be wrong to state that debt has become the fabric of our society. If we look back at the last 100 years, we can see that the rate of development has been at a breakneck pace. This development has been fueled to a great extent by the easy availability of debt.
Be it countries, organizations, or individuals. Its resources limit each one of these entities. Countries have limited budgets, organizations have limited budgets, and their income level limits resources and individuals. Therefore, it becomes very difficult or impossible to carry out certain expenditures such as mega projects like the Eurostar, buying expensive equipment, or buying a house or car. This is where debt comes in.
Countries take out debt to fund mega projects, organizations take debt to fund their purchases and growth. Similarly, individuals take debt to purchase real estate and other assets. Therefore, Debt facilitates growth and allows us to make purchases that we would otherwise not be able to make.
Otherwise, how many working-class individuals can purchase the house of their dreams on cash? A mortgage makes this purchase possible, at the same time adding growth to the real estate sector. When you create a society based on debt, you need a control mechanism to make sure that society does not collapse upon itself. It certainly came very close to this collapse when the subprime mortgages in 2008 started defaulting.
What is Credit Worthiness?
Therefore, the concept of Creditworthiness was developed as a control measure to make sure that lenders can assess the risk they are taking on at the time of lending to any borrower. Therefore, your creditworthiness is, ,your ability to pay off the loans and other obligations that are due on your account.
Creditworthiness is assessed by looking at the credit report and the credit score of an individual. Credit reports in the U.S are maintained by the three main credit reporting bureaus, namely.
These credit reporting bureaus pull information from numerous institutions such as banks, utility companies, and credit unions. Their data collection allows them to create credit reports for every individual having a bank account, taking out a loan, or paying utility bills. Which includes everyone who is a functional member of society.
Thus whenever you pay your utility bills on or after time, make repayments on your bank loan or mortgage on or after the due date. Whenever you take out any new type of loan or payback any old debt or get declared as delinquent, bankrupt, or receive a court order, the credit reporting bureaus get notified and add that event or transaction into your credit report.
Importance of Credit Report
The credit report, therefore, contains your entire credit history. Whether you make your payments on time or not, how much credit limit do you normally use on your card, and how many loans you have outstanding at any given moment. Everything related to your credit transactions is recorded in the credit report.
This makes your credit report a very important document for lenders. Banks and other lenders use the credit report to ascertain the creditworthiness of an individual before deciding whether to give out a loan or not.
What is a credit score?
The credit score can be considered as a condensed form of the credit report. The credit report is a very detailed document. In contrast, the credit score is simply a quantified version of the credit report, which can be used to assess an individual’s creditworthiness at a glance.
Credit scores can be calculated from the credit report using several different criteria. Most of the credit scores use the following elements from the credit report to calculate an individual’s score.
● Credit utilization rate
● Number of outstanding loans
● Payment history for loans, utility bills, and cards
● Inquiries or credit checks on the report
● Credit mix
Credit utilization rate refers to the usage of available credit. For instance, if a person has a $10,000 limit on their credit card and uses $2000 monthly, their credit utilization rate would be 20%, which is a very good and optimum rate. Anywhere above 30% would harm the credit score.
The number of outstanding loans simply refers to active outstanding loans at any given time. The higher the number of loans, the lower one’s creditworthiness would be. This is also used to calculate the debt to income ratio, a key ratio used by mortgage lenders.
The payment history for loans indicates whether the person has the habit of repaying the debt and bills on time or not. Timely payments contribute to a higher score, whereas missing payments would negatively impact the credit score.
Every time any lender does a hard check to look at the credit report for inquiry, the credit report is negatively impacted. This is why it is not a good idea to apply for too many loans at once, as the hard checks may collectively significantly impact the score.
The credit mix refers to the different types of debts taken out by an individual. Having diverse types of debts is a good sign and has a positive impact on the report. For instance, a person may have a secured and unsecured loan. Having the same type of debt can have a bit of a negative impact.
All of these elements come together to form the credit score, which is then used to summarise an individual’s creditworthiness at a glance.
What is Bad Credit?
Bad credit refers to a very poor credit report or low credit score. The credit score ranges from 300 to 850. It can be divided into tiers for easy understanding.
- 300-400: This refers to poor or bad credit.
- 400-600: While this is not exactly good but still better than being on the bottom like
- 600-700: This is the good credit range; anything below will create difficulties in getting access to financial services and products.
- 700-850: This is an excellent credit range. In this range, individuals get access to lower interest rates and more leverage in negotiations with lenders.
Sliding down from having excellent or good credit to bad credit takes time and does not happen overnight. Usually, a series of bad decisions result in the gradual decline of the credit score till it becomes bad.
Personal Financial Management
The number one reason for people ending up with bad credit is the lack of financial planning. Personal financial planning is a very important concept that is vital for financial goal attainment. Not following good financial habits will result in bad personal financial management and the credit score’s eventual decline.
What are some of the bad financial habits?
- Not making monthly budgets.
- You are not using a grocery list.
- Not keeping track of expenses.
- Not saving for the future.
- Spending without any second thoughts
- Not maintaining an emergency fund.
- Too many purchases on the credit card
- Taking out too much debt and not being able to pay on time
- And the list goes on and on.
Bad financial habits can result in an individual getting close to being bankrupt. However, there is no need to despair because there are still many options for individuals with bad credit scores who have not yet gone bankrupt. All that is needed is a careful analysis of the lending market to find lenders willing to lend at good rates with flexible terms and a helping attitude to help the clients come out of a sticky situation.
Here at Credit Season, we can help you get bad credit loans in no time. It uses the latest encryption technology. This way, your data will always be well protected.
Furthermore, the company doesn’t sell or trade your confidential information but shares them only with the network’s best lenders. You don’t have to pay any fee or even sign up on the website to use our tools. We operate on a commission-based model with our lenders, which means that the clients simply do not have to worry about any sort of fee, charge, or payment while using our services.