Understanding Your Credit Score

Your credit score is a number that most lenders use in order to determine your credit worthiness. If you are considering applying for a home loan, an auto loan, a credit card or personal loan, your credit score can play a massive role in the interest rates you are offered, the loan terms available and even whether or not you are approved. Additionally, your credit score can have an effect on other aspects of your life as well. Most landlords check your credit score when you apply for a lease or rental agreement, and many insurance companies and employers review your credit score these days when you apply with them as well. Because of the impact that your credit score has on a variety of life situations, it is critical that you understand how your credit score is determined, and the factors that can affect it.

Understanding your Credit Score

Understanding your credit score is an important step in being able to maintain a good credit rating. While your credit score is determined by your credit history, there are numerous factors that are combined to make up your credit score.

• Your Total Debt and Debt to Income Ratios

• Types of Credit Accounts

• The Number of Late Payments

• The Number of Past Due Accounts

• The Age of Credit Accounts

• Collections and Public Records

• Recent Credit Inquiries

It is important to remember that not all factors will affect your credit score equally. A high number of recent inquiries, for instance, is not nearly as devastating as an equally large number of late payments or accounts in collections.

Improving your Credit Score

If you have less than perfect credit, there are a number of things that you can do to improve your credit score. While understanding your credit score is extremely important, knowing what to do with that information can be critical in the wellbeing of your credit report.

It is important to check your credit report and score regularly, and make a note of any changes or discrepancies. If you notice incorrect information on your credit report, contact the credit reporting agency as soon as possible for information about filing a dispute.

Pay off high credit card balances as soon as you can. Although making timely payments on accounts like mortgages and car loans can have a big impact on your credit score, paying down credit card balances demonstrates your ability to manage your available credit, and can have a much bigger impact on your score.

Make all of your payments on time. Keep in mind that payments that are received more than 30 days past their due date can be detrimental to your credit score. Payment history makes up approximately 35% of your credit score.

Apply for additional credit in moderation. Too many inquiries on your credit report can set off alarms for lenders, and can be a sign that you are in a financial bind.

Pay off collections accounts as soon as you are able. Accounts that have been sent to collection demonstrate your inability or unwillingness to repay your debt, and are a red flag for lenders.

Try not to overextend yourself when it comes to your finances. The amount of debt you incur in relation to your income can not only have a big impact on your credit score, but too much debt can be a sign of poor credit management and automatically place you in a higher risk bracket.

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Northcash is an economic arm of the Fort Belknap Indian Community, a federally-recognized Indian tribe located in Hays, Montana. The Tribe and its businesses have governmental sovereign immunity and have not and are not waiving that immunity for any purpose associated with the consumer lending business of Northcash and therefore Northcash is not subject to suit by you or any third-party for any reason. CAUTION: IF YOU ARE NOT COMFORTABLE DOING BUSINESS WITH A SOVEREIGN INDIAN TRIBE THAT IS NOT SUBJECT TO SUIT, YOU SHOULD IMMEDIATELY DISCONTINUE USING AND ACCESSING THIS SITE. We may from time to time in our sole discretion and without notice to you modify the terms of this Agreement and/or change the rules that govern your use of our Site.

Who is providing this notice?

North Star Finance, LLC d/b/a Northcash, an economic arm of the Fort Belknap Indian Community.

This is an expensive form of borrowing, and it is not intended to be a long-term financial solution. Northcash loans are designed to assist you in meeting your emergency borrowing needs. The Annual Percentage Rate (APR) applied to your loan will vary depending on the pay period with the maximum APR on any Northcash loan being 795%. This is a term installment loan with approximate equal payments, but you have the right to prepay at any time. Any instances of late or non-payment may be subject to additional fees, such as NSF and late fees, as well as collection activities Before borrowing, we ask that you assess your ability to repay the amount you borrow.

You acknowledge that by submitting and completing the loan application that you are applying for a loan. We verify loan applicant information through credit reporting agencies such as Clarity, Factor Trust, and DataX. We may obtain your credit information in order to determine your eligibility and ability to repay.

Northcash does not lend to residents of Arkansas, California, Georgia, Maryland, Minnesota, Montana, New York, Pennsylvania, Virginia and West Virginia, or to members of the military or their dependents.

The availability of online installment loans are subject to change at any time at the sole discretion of Northcash.


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