Do you need your Credit Scores with Credit Report?

I was real excited after I went to annualcreditreport and got my free credit report. But to my surprise there were no credit scores. I started asking myself since everyone looks at your credit score shouldn’t I know what my scores are? I would assume there is a reason for a credit score to begin with, and some very important purpose behind this magical number that everyone closely looks at these days. In this article I will discuss why you need to know your credit score and by not knowing it how it can affect your personal life.

Reasons for knowing your credit score:
When you apply for a loan, all lenders look at your credit score to determine what type of loan they will put you in. Your score will also determine the rate and terms as well. This magical number also will dictate how much money you need to put down on the purchase too. The lower your score the higher your risk, and the uglier your loan terms are. This is just one example of why you need to know this 3 digit number.

When applying for that higher paying job, guess what most companies are doing now. They pull your credit, and if your score is low I am sure they may consider hiring the applicant with the same credentials but higher score. You might ask yourself why, and the answer would be risk. Your score gives anyone that requests your report the type of risk you are. This employer may think you are an irresponsible person by having low scores. This could cause them to pass you up on the position.

Maybe you are trying to get insurance for a car, house, or a boat. All insurance agents pull your credit, and determine your premium based on your credit score. The software that spits out this number will even affect your insurance cost. This is amazing if you think about it. Even utility companies are pulling your credit report now, and if you have bad credit they will require larger deposits, just incase you skip out on the bill.

Since everyone is looking at your credit score to determine your credit risk, maybe its time to learn all three of your scores. With the current credit crunch that is taking place, matters will only get tough to get loans. There has never been a more important time to learn what is being reported about you. So the answer is yes, you need to know all three of your credit scores. It is recommended that you pull your credit report every 4 months, since anything can change within a 30 day window on your report. Below is a example of what is considered good scores according to my FICO.

* Excellent: over 750

* Very Good: 720 or more

* Acceptable: 660 to 720

* Uncertain: 620 to 660

* Risky: less than 620

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How long does Collections stay on Credit Report?

If you have collections on your credit report, you can count on most of them staying on there for minimum of 7 years from the original collection date. Sometimes you will have the collections sold to different collection companies. This could be a challenge trying to get the original collection date, but the creditor currently reporting the collection must report this information correctly. Typically the creditor reports the wrong original collection date, so you have to dispute it. They must comply with this request under the (FCRA) Fair Credit Reporting Act.

Here is how long items stay on your credit report from original collection date:
1. Medical collections – 7yrs
2. Charge Offs – 7yrs
3. Late payments – 7 yrs
4. Judgments – 7 yrs
5. Tax Liens – until you pay off
6. Repossessions – 7yrs
7. Chapter 7 Bankruptcies – 10 yrs
8. Chapter 13 Bankruptcies – 7yrs
9. Collections – 7 yrs
10. Inquiries – 2 yrs
11. Foreclosure – 7 yrs

I am sure you have heard you can get obligations that you owe removed from your credit report. I will tell you and so with the FTC that you cannot get obligations removed from your credit report even though you owe the debt. The only items you can get removed are items that are not correct, for instance.
 Debt that is not yours
 Maybe you and your father have the same name, and report is skewed
 Duplicate items
 Items over expiration date
 Inaccurate reporting, like slow pays.

Maybe you don’t know what is being reported on your credit report। Its time you find out, so if there is inaccurate information you will know. Current statistics show that 1 out of 4 credit reports have incorrect information on it that would cause a denial of some type of loan.





About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Fix Credit Report Errors: Learn How

This is a step by step guide that will give you the tools to fix inaccurate information on your Credit Reports. First you need to check when the information being reported is set to expire. Next use our customizable dispute letter, and sent it to the Credit Bureaus. It is really that simple.

Step 1: Look for incorrect information being reported about you:

Order a current copy of your credit report with scores from all 3 Bureaus online. Print your credit report and view it carefully. Make note of any information that is not correct. Determine when the information is set to expire. This guide will help you determine if and when the negative information on your credit report will expire.

Public Records:

a.Bankrupcties- Chapter 7 Bankruptcy will expire from your report after 10 years of file date. Chapter 13 will expire from your report after 7 years from file date.

b. Judgements- Court ordered decisions stay on your credit report for 7 years from file date. Example: child support, civil and small claims court.

c.Tax Liens- Tax liens stay on your credit report until you pay it off. Once you have paid the tax lien, it will stay on there 7 years from paid date. This applies to City, State, and Federal tax liens.

Charge –off – records- this record will show up on your credit after a creditor has wrote off the debt as a loss. This will remain on your file for 7 years.

Inquiries- Records of application for credit. These types of inquires usually stay on credit for a maximum of 2 years. Checking your credit online with credit sores does not damage your credit like these inquires do.

Closed Accounts- This information whether negative or good stays on your credit report for 7 years.

Collection Accounts- This record should expire after 7 years from the last 180 day late payment that led the account to collection to begin with. The expiration date is the same even if the collection is sold multiple times.

Foreclosure Records- Foreclosure and property deed-in-lieu records remain on credit for 7 years from foreclosure date.

Late Payments- Late payments stay on record for 7 years.

Repossession Records-Vehicle repossessions stay on you credit report for 7 years.

Use this expiration information to determine what should not be on your report. You should also check for information that is being report on there that is not yours. Also make sure there is no information that are cross records either.

Step 2: Write Dispute Letter

Once you have determined what is not correct on your report, it is time to write you disputes to the Bureaus. You will need to send the letter to each of the credit bureaus via certified mail.

Example dispute letter:

Date

Your NameMailing AddressCity, State, Zip

Re: Disputing Inaccuracies on My Credit Report

Name of Credit Reporting Bureau Mailing Address City, State, Zip

Dear Sir or Madam:

I am writing for two (2) reasons:

1. To dispute certain information in my credit file; and

2. To have you investigate/re-investigate and remove inaccurate information from my Credit Report and prevent its re-insertion. The item(s) I dispute are encircled on the attached copy of the credit report and further identified by (identify the items by name of source, such as creditor or tax court, etc. and identify type of item, such as credit account, judgment, etc.)This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or whatever specific change you are requesting) to correct the information.(If you are enclosing documents such as copies of cancelled checks, payment records, court documents, send copies only, you should always retain the originals -- and use the following sentence.)

Enclosed are copies of the following documents supporting my position?

1.

2.

3.

Please reinvestigate this (these) matter(s) and (delete or correct) the disputed items within the time frame required by the Fair Credit Reporting Act (FCRA) and inform me in writing of the outcome. Thank you for your time and consideration in this matter.

Sincerely,________________________

(Signature)Your name

Step 3: File your dispute

Submitting your dispute by mail is the suggested way, but only Equifax and Transunion allows this kind of dispute. Experians requires all disputes to be submitted online.

Here is the 3 Credit Bureaus information.

Equifax

P.O Box 740256

Alanta, GA 30374-0241

Dispute online

Experian

Dispute online

TransUnion

2 Baldwin PlaceP.O. Box 2000

Chester, PA 19022

Dispute online

Step 4: Manage Results

The 3 Credit Bureaus have 30 days to investigate your dispute and update your credit report if the dispute his valid. Once they have investigated your concern, they will send you a letter stating what was updated on your credit report. If you were not able to get a inaccuracy fixed you will need to resubmit your dispute with new documentation.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Does Credit Inquires hurt your Credit Score?

A credit inquiry is an item on your credit report that shows with permission a creditor requested your free credit score report.


Not all credit inquiries affect your credit score:
You may notice when you pull your credit report there are inquiries on there from a business you are not familiar with. The only inquiry that affects your credit score is the one where you are applying for credit. This is considered a hard pull on your report.

Inquiries that affect your credit score:
There is only one type of inquiry that affects your credit score. This type of inquiry is applications for a mortgage, auto loan and other credit, by you authorizing these creditors to access your credit report. This type of inquiry prompted by your own actions ends up on your personal credit report and affects your score.

An inquiry that does not affect your credit score:
Checking your own personal credit report or any business that offers goods and services that requests your report. A business that you already have a account with that requests a check. A potential employer that does credit checks. Some of these types of inquiries might show up on your report but do not affect your credit score.

Checking your credit report does not affect your Credit Score:
Checking your credit report on a regular basis to ensure it is accurate and error free is recommended by Fair Isaac the inventor of the FICO Score. Maintaining a error free credit report is part of credit management which will improve your credit rating over time. Ordering your credit report at CreditScoreQuick.com does not hurt your credit score.

How credit inquiries are factored in your Credit Score:
There are five types of information used to calculate your credit score. Each category accounts towards a percentage of your score.

Payment History – 35%
Amounts Owed – 30%
Length of Credit History – 15%
Types of Credit in use – 10%
New Credit – 10%


Don’t let inquires scare you. There is nothing wrong with shopping for a better rate, or better terms on a loan. As you can see in the about chart, payment history is the biggest factor in calculation process of your credit score. The second biggest factor is how much of your approved credit limits are charged up. But of course you don’t want to go out and start applying for every credit offer out there either. Be responsible and have a good mix of credit, but stay away from too much credit as well You really on need 3 lines of credit reporting on your credit report.
Example:
1. credit card
2. car note
3. installment loan

This type of credit mix accounts for 10% of your score.







About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Even Celebrities like Liz Mikel needs Identity Theft Protection

Did you think Identity Theft Protection is unnecessary? Well you might want to think again. Dallas based actress Liz Mikel just found out the hard way that someone had stolen her identity and been having a field day. She stars in the NBC show “Friday Night Lights”, found out that identity thieves had went on-line and opened accounts in her name.
Mikel said that she went to the mail and to her surprise there was a notice from Capital One that there was a problem with an account she did not have. After a phone call to the company she had learned that someone had been opening accounts in her name since early March.

What you need to know
Identity theft affects 9 million people every year, and is currently growing in epidemic proportions according to the FTC. Identity theft starts with the theft of your social security number, your credit cards, and financial information. For Identity thieves this information is like gold.

Here is a variety of methods identity thieves may get a hold of your personal information:
1. Pretexting- The use of false pretenses to obtain your personal information from financial institutions, telephone companies, and other resources with your information.
2. Phising – They pretend to be financial institutions by send you e-mail or pop ups hoping you will reveal your personal information.
3. Old-Fashion Stealing- They steal wallets, credit cards, mail credit card offers, purses, financial statements, and new checks that come in the mail. They steal personal records and bribe employees who have access to your records.
4. Changing your address – They divert your mail by putting a change of address request in to the post office.
5. Skimming – They steal credit card and debit numbers by using a special storage device when swiping your cards.
6. Dumpster Diving – They go through dumpsters looking for mail that was not shredded with your personal information.

Examples of what identity thieves do once they have your information.

Bank / Finance Fraud

• They create counterfeit checks using your name and account number
• Open bank accounts in your name and write bad check
• They may clone your credit or ATM card and electronically drain all your accounts.

Credit Card Fraud
• They may open credit cards in your name. When they will charge these cards up, and not pay the bill. As a result it appears on your credit report.
• They may change the address on your credit cards so that you no longer receive the bill, and run up charges on your credit cards. It may be sometime before you realize there is a problem.

Government Document Fraud
• They may file fraudulent tax returns in you name
• They may use your name and social security number to get government benefits
• They may get a drivers license or id picture with your name but with their picture.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Free Credit Reports with Secure Website

Get your Free Credit Score Report with a secure website. Have you surfed the web lately and found that the website you are going too is not secure? You would think that a website that is providing credit reports and credit monitoring services would have a secure site. Believe it or not there are websites all over the web that are not secure, and so when you put in your personal information you are vulnerable to internet thieves.

What to look for:

When you are about to make a purchase for credit reports, credit cards, identity theft software or any internet site product, there should be two important icons to look out for.

Example: web browser url logos to look out for with security lock:

 Internet Explorer lock logo

 Mozilla lock logo

Another logo to look out for is usually at the bottom of the site. There are different service providers that provide website encryption.
Some of the names are:
1. Hacker Safe Logo with McAfee
2. Verisign Secure logo
3. Starfield Secure Website

These are some of the leading providers of ssl certificates that protect your information. You want to see these logos and url information provided on any website after you click the purchase button. While you are out trying to make a decision on where to buy your product make sure it’s secure. Hopefully this information has better educated you on where to buy your on-line products.



About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Warren Buffets Credit Score is not above Average

The Credit Score of Warren Buffet was recently reported to be a 718 by Fortune Magazine. You are probably wondering how in the world is this possible. He is supposed to be the richest man in the world.

When it comes to your credit scores it does not matter how rich you are, your credit score has nothing to do with how much money you have in the bank. No matter how much you have in assets, your credit score will always be determined by your credit history. The reason for Warren not having a credit score above a 720 could be for any number of reasons.
Example:
 Late payments
 High balances on credit cards
 Inaccurate information being reported on credit report

We know that wealthy people can have applications for loans turned down just like anyone else. That is why your credit scores are very important. You never know when you might need a loan, don’t let your credit scores get you denied. This goes to tell you that your credit scores speak louder than dollars.

How to beat a millionaire.
Here are some tips to increase your score; you never know a bad credit score could cost you that job that pays millions.

1. Never, never be late on your bills. The quickest way to lower a credit score between 100 and 150 points is to have a 30 day late on credit report. Set up on-line bill pay, that way you don’t have to worry about whether you are on time or not with obligations to your creditors. Unless you are rich, you will probably need a loan one day, and you don’t want a creditor to so no because of your score.
2. Limit yourself on how much credit you have. Don’t apply for ever credit card offer that comes. Typically you don’t need more than a couple of low interest rate credit cards.
3. Don’t charge up your credit cards like you are a Warren Buffett. To go out and max out your cards will cause a disaster for your future FICO score.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Identity Theft Prevention Tips

Identity theft is something that can be compared to burglary. Can you stop burglary? Yes and NO. You can put in a security system, window bars, locks, and security cameras, but there is no guarantee. Identity theft is the same way these days. There are preventive measures and solutions that you can implement to help out. Here is what you can do.

VIDEO about Identity Theft from the FTC.


1. Don’t carry around unnecessary information in your wallet. Such as social security card, more than one credit card, birth certificate and passport. Make a copy of everything in your wallet incase someone steals your wallet. Do this so you will know what to report stolen.

2. Don’t click on any e-mails from financial institutions even though you feel 100% confident it’s from your bank. Go to your web browser instead and type in the bank web address. Example (www.wellsfargo.com). Some of e-mails being sent out currently are fake and are called “phishing” e-mails.

3. Install virus and spyware detections software and keep them updated.

4. Take credit card receipts with you; never throw them in a public trash can.

5. Install lockable mail box at your residence in order to prevent mail theft.

6. Make sure you computer is set to automatically setup to download the latest updates and patches. Any computer software will have security holes in it.

7. Limit the number of credit cards you have.

8. Don’t have the bank send your checks in the mail, let them know you will pick up at the bank.

9. Destroy all checks if you close a checking account. Destroy or keep in a secure place any courtesy checks they send you.

10. Reconcile your checking account and credit card statements in a timely manner, and challenge any charges that are not yours

11. Memorize your usernames and passwords, don’t write them down. Be aware of your surroundings make sure no one is watching you enter in your pin number at an ATM.

12. Safeguard all statements from creditors, once paid shred them .You can always access your statement if on line.

13. Don’t throw away any credit card offers, shred them all. Go here to stop all credit card offers permanently.

14. If you don’t receive your billing statements notify the company immediately.

15. Pull your credit report regularly to check for any fraudulent activity.

16. Set up credit monitoring with one of the Bureaus.

17. Don’t allow your financial institutions to print your social security number on your checks

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Will the current mortgage crisis affect you?

What is the current Crisis
Over the last 10 years our country went through a real estate boom. There were three categories of loans being provided. The first was Prime, the second was Alt a, and the third was Sub-Prime loans. Typically any loan less than Prime had higher rates because of the risk of the borrower. The Sub prime loan was a creative loan that was provided and is currently the reason for around 46% of foreclosures in the U.S. This is astonishing if you think about it, and is the cause for a downturn in our economy. When you have this type of debt being wrote off, someone is affected. That is why our banking industry has had a liquidity problem. There were more loans being bought back than there was cash in the bank.

Insight on reason for foreclosures
Most of the mortgages given during this real estate boom that were Sub-Prime were adjustable rate mortgages (ARM). This type of loan looked very attractive with its initial “low teaser rates”, which typically expired after 2 years. Most of these loans were set to reset between 2 to 5 years which would cause the payment to increase dramatically. The selling point on these loans over the years was, if you keep your credit rating good you can refinance your ARM loan into a 30yr fixed mortgage once the ARM reset. Unfortunately with the declining property values and the tightening up on underwriting guideline it has made it impossible to refinance these types of loans. The result is the mortgage payment will increase dramatically and a foreclosure to follow afterwards. Since all of this has taken place we are seeing global implications on foreign investors that might have put there stock in Mortgage backed securities. IN other words investors global wide are pulling there interest out of these types of loans. Since the book is still being written on this crisis we anticipate the overall economy to feel the strain of this unfortunate crisis and for ARM loans to be less common in the future.

What can I do about my current ARM loan?
Here are the steps in regards to determining whether you can refinance your current loan.

* Determine if you have the current credit to refinance into a FHA Secure loan
* Determine if you have the equity to refinance your current mortgage
* Call your loan officer to determine if they can help you

If you feel you are not going to be able to afford your mortgage payment, call your lender before you are late on payments. Make arrangements with them rather than not notify them at all. If you find that your lender will not work with you there are counselors that you can talk to.
Here is a list:

Hope Now
An alliance between counselors (HUD approved), servicers and investors that strives to keep homeowners in their homes by helping them renegotiate their loans.http://www.hopenow.com/

Homeownership Preservation Foundation
A nonprofit that creates partnerships with local governments, nonprofit organizations, borrowers and lenders to help families overcome obstacles that could result in the loss of their homes.http://www.995hope.org/

Counseling Agencies Approved by HUD Developments
The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages.http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

NeighborWorks Center for Foreclosure Solutions
Works to preserve homeownership in the face of rising foreclosure rates.http://www.nw.org/

Financial Education/Assistance
My Money Management
A collaborative effort by the financial services industry to provide consumers with access to financial education to help inform their personal finance decision process.http://www.mymoneymanagement.net/

FHASecure plan
A refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.http://portal.hud.gov/

Here are some helpful tips for avoiding foreclosure from U.S. Housing and Urban Development.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Check your Credit Report before an Employer Does.

Did you think checking your free credit score report was not necessary? I would think again, recent studies show most employers are checking your credit as part of the decision process. They are looking into your personal history is to see if you are responsible enough to hold a job. Companies don’t want to hire someone that is financially tapped out; someone that is in this situation might be desperate and attempt to steal.

Jobs that involve money handling
A position that involves an employee handling money will typically require a credit report check. These companies do a background check as well. If a company is hiring you to handle there money, they want to make sure you are very responsible. There are accounts where potential employee applied for a position with a company as was denied employment due to bad credit. If you think your credit report is littered with collections, charge offs and late payments you might want to work on cleaning those types of issues up. This type of activity whether it’s a professional job or a cashier job could cost you a potential opportunity.

Government Jobs
When the government looks into hiring an individual they pull your credit report. They want to make sure you are not a security risk. They also pull your credit after you have been hired. Judy Langley was hired at by the “City of Dallas” for a clerical position. The requirement was once she was hired she had to improve her credit. The city hiring manager knew she had some credit issues, and required that she improve her credit over a 12 month period. In other words if you have past credit issues, your new employer could require you to clean it up.

Your Rights under the Fair Credit Reporting Act (FCRA)
The FCRA requires written consent on your behalf before an employer can pull your personal credit score report and/ or background check. Nether less if you suspect you have credit issues, and you are in the market to find that dream job you might want to pull a recent copy of your report with scores. Everyone looks at your credit scores as well. When an employer uses your credit report as part of the hiring process, they are suppose to inform you of this. If they deny you employment due to your credit, they are supposed to do two things:

* The employer is supposed to give you a copy of your credit report and give you your rights under the FCRA.

*The employer is also to disclose which company gave the information so they can dispute any information that might be inaccurate.

Rather than go through all of this they will simply say you were denied for other reasons.


Find out what’s on your record
This is why it’s so important to pull your free credit score report regularly, so if you have to get a new job or your current employer is doing credit checks, you don’t want to have issues due to bad credit decisions.






About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Student and College Credit Card advantages

Student and College credit cards are a great way to establish good credit while you are in school. When you are away from home starting your college days you might encounter some expenses that need to be charged. With a student credit card, which by the way credit card companies are anxious to offer with good rates you can easily be on your way to establishing a great credit score. Credit Card companies know that you are less likely not to pay you bill since you are in college. Typically college students have the drive and understanding that your credit report and credit scores are very important. They also know you are more responsible especially since you are taking the big step of continuing your education. Since credit cards are a necessary in showing your ability to pay back a obligations, on the flip side you want to be very careful and responsible when charging on them. You don’t want to get over your head with unnecessary charges. When you charge on a college credit card, you don’t what to charge more than you could pay off that month.

What to avoid with Student and College Credit Cards.
1. Keep your credit card charges below 30% of credit limit
2. Don’t be late on your credit card payments
3. Don’t get cash in advance, the fees are unnecessary.
4. Don’t charge more than you can pay off that month.
5. Keep your college credit card in a safe place while in dorm
6. Don’t let you friends charge on it.


Advantages of Student and College Credit Cards.
1. Build good credit.
2. Increase your credit scores.
3. With good payment history you will be able to get other loans.
4. You have emergency money.
5. You will get other low interest credit card offers.
6. Be able to get good rates and terms on other loans


Remember when you get your student credit card; make sure you are responsible, because when you get done with your degree, most employers check your credit report to see how responsible you are. If you have a good credit history plus a degree, you are more likely to get that job, as opposed to the individual that has the degree but credit is bad. You should have at least 3 lines of credit reporting on your credit report. Examples would be a couple of credit cards and maybe a car loan. The credit bureaus like to see a mix of credit when determining your credit risk. Your credit has never been more important that it is now. Get your student credit card today, and be well on your way to establishing a good credit history. It would not hurt to get a recent copy of your free credit score report as well to see where your credit currently stands.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Your Credit Score – Why it’s so important

Credit Score, Credit Score, Credit Score, what is all the fuss about lately with credit reports and scores? We all know anything you do these days is a risk, getting out of your house to go to work you are risking your life. Walking down the street to walk your dog, you are taking a risk. Risk, Risk, Risk, we live in a society now where everyone wants to assess your risk. With the turmoil currently in the lending industry, I don’t personally think banking will ever be the same again. During the housing boom, the standards that assessed your risk was so laid back that it finally caught up with Wall Street. This is why your credit score is so important now. If you ever want to get a loan, you probably want to pay more close attention to your score.

Break down of good to bad credit scores

Since the lenders are now getting extremely tough on lending guidelines there has never been a more important time than now to know your score. Everybody that takes on some kind of risk, whether it’s a employer, landlord, insurance company, bank, mortgage company, credit card company, or a car lot, they all base there decision on your credit score. You keep hearing me say assess your risk in this article and might be wondering how that is done I will discuss this shortly.

Who calculates your credit score?
Your credit score is calculated by software created by Fair Isaac. Fair Isaac is the leading producer and creator of the FICO scores. Most Bureaus use this risk model to determine your score. This software that determines your score is software that was created by the founders of Fair Isaac in 1981. This risk based software has become the standard for determining that 3 digit number. Anything that is attached to your social security number and is reported to the 3 credit bureaus will have a part in determining this score. With all of this being said, shouldn’t you know your score? We are in a risked based society, and in order for someone to take a risk on you they will want to know your credit score. I would not waste anymore time, get a copy of your free credit score report today. It’s just a matter of time before you might need a loan, credit card, rental, etc…….. So get a jump start and learn what they will find out.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

What is a Credit Score?

A Credit Score is a number that reflects your creditworthiness at any given time. Typically the higher your score the better your credit. Individuals with higher credit scores typically can obtain mortgages, credit cards, loans and insurance with better terms. The lower your score the worse your terms are on any offer. The Credit Score is based on the information stored with in your credit report.

Each Bureau has its own score
Each Bureau has its own name for the FICO® Score.

Equifax – Beacon
TransUnion – FICO Classic
Experian – FICO Risk Model

The general scoring ranges between 300 – 850. Fair Isaac divides the scores into five categories.

780 – 850 – Low Risk
740 – 780 – Medium – Low Risk
689 – 740 Medium Risk
620 – 690 – Medium High Risk
620 – and Below – High Risk or “sub-prime.”

A credit score can change quickly for several reasons, including late payment or big increases in credit card balances. Each credit bureau may not have identical information about you, in large part because some creditors only report to one or two bureaus instead of all 3. This results in different credit scores amongst the credit bureaus. Some insurers and creditors use there own formula to calculate score in conjunction with the FICO score model. For example one lender might emphasize more on payment history within the credit report, where another lender might focus on something totally different within your report. A credit score itself might be the determining factor of better rates and terms with other creditors. But in the insurance context, the “credit-based insurance score, “typically is on of the many factors determining whether a policy is underwritten or at what premium. Most lenders and insurance companies scan your credit report for derogatory terms like bankruptcy, judgments, foreclosures, and collections.

How is a credit score calculated?

Factor 1: Payment History (35%)
Factor 2: Amount Owed – Extent of Indebtedness (30%)
Factor 3: Length of Credit History – The Longer, The Better (15%)
Factor 4: How Much New Credit? (10%)
Factor 5: Type of Credit (10%)

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Revive Credit Report after Foreclosure

Foreclosure is a common subject these days, but there is life after having one. If you have recently had a foreclosure on your credit report, you will be able to recover from this bad experience. Fair Isaac with its new FICO 08 with due time will forgive you for a foreclosure as long as you are not a repeat offender. This new calculated risk software understands that unfortunate situations come up in ones life, but don’t make the same mistake again. Definitely don’t make it a habit of having credit problems is the point.

How long will it take before you can buy again?
Your credit report might recover quickly as long as you have other good standing credit reporting on your credit report. But that does not mean you can buy a home right a way. Most people that have foreclosures usually take time to recover from such a bad experience. HUD knows this, and that is why you cannot get a FHA loan for a minimum of three years from foreclosure date. It’s almost impossible to get a Conventional loan, because conventional loans are automated approvals. Typically with a foreclosure, collections or low scores this automated software will deny you. FHA is a different type loan all together, since it’s a government insured loan you can get what they call a manual underwrite for this type of loan. What this means is if the automated process through Freddie Mac or Fannie Mae says no, you can get an underwriter to manually approve the loan. So you can expect to wait at least a minimum of 3 years after foreclosure date before you can begin to think about financing a home again.

Pay everything on-time
When a bank lends you money, it’s a big risk. Banks don’t want to lend money to someone that has total disregard for their credit. If you have had a recent foreclosure the last thing you want to do is have late payments, collections or any other negative information hit your credit report. Let’s face it, the whole reason banks, mortgage companies, car dealers, landlords, and employers pull your credit repot is to see if you pay your debts. I personally would not lend to someone that did not pay their bills back, would you? With the recent tightening up in the lending arena you might want really work on increasing your credit score. Also make sure you have at least 3 lines of credit reporting on your report. If you had to let everything go, you might consider getting a secured credit card. This type of card will help you re-establish your free credit score report.

Save Money
Saving money is very important when it comes to getting a loan. Lenders like to see you saving money because it shows stability. Let’s assume you loose your job, well if you have 6 months payments in the bank you are less likely to let your house go. If a emergency comes up you have some money in the bank to assist in some way. Saving money also shows you are responsible as well. Let’s say two people go to the bank to get a loan and they both have bad credit. The main difference between the two bad credit borrowers is one has $5000.00 in the bank. Who do you think the bank is more likely to approve? These are some key point I wanted to touch on to revive your credit after a foreclosure. There is life after so make sure you manage your credit report and credit scores so you can begin home ownership soon.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Why Credit Bureaus have different Credit Scores

Have you pulled your credit report and found that there are 3 different credit scores? You will never get the same credit score with each of the credit bureaus. In this article I will discuss some of the crucial reason why you will have different results with the Bureaus.


Credit Bureaus use different scoring models
Since the 3 bureaus use different software to determine your credit score, no wonder your scores are different. Since Fair Isaac pioneered the FICO® Score model and Equifax currently uses that model, the other two bureaus TransUnion and Experian developed there risk software based on the FICO® Score model as well. The risk models are not exact and this is one reason why the scores are different with all 3 credit reporting agencies (CRAs).

Risk Model Software Used
Equifax – Beacon
TransUnion – Empirica
Experian – Fair Isaac Risk Model or Plus

Since the software differs with each bureau, you will get different results. There are obviously issues with the process in obtaining your credit score. Hopefully this process will be standardized some day, so your score will be the same with each bureau.

Credit Bureaus have different credit report data
The credit bureaus collect data independently of each other and do not share their information. When a data provider or creditor only reports to 1 or 2 bureaus, then you will have one bureau that does not even know the obligation exists. With this type of activity on your free credit score report you will have mixed results. Since you have some data being reported to all 3 credit reporting agencies and some that is not your score will always differ. Plus remember they all use different software to determine your score. Hopefully someday this process of determining your credit score will be more standardized. This is obviously one of the many problems that the Bureaus have when it comes to collecting data.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

New Home Builders – Big Reason for Foreclosures

This is a subject that most are not talking about, because I don’t believe anyone realizes “The Big Problem” with new home builders. Currently everyone is talking about the credit crunch and liquidity problems in the banking industry. I personally know that a big part of the problems we are having with foreclosures are the result of home builder’s nation wide. I guarantee you if you did a foreclosure search nationwide, you would find that the highly populated foreclosure areas are primarily new home builders. Hmmmmmm, you might be wondering…….. what is going on ? Here is what happens when you buy a home with a builder. You get told that if you don’t use their mortgage company, there Title Company, you will not get all these incentives. Typically these incentives range from $10,000 to $20,000 in upgrades, and having your title policy paid by seller.

Here is the SCAM, they don’t tell you.
You don’t actually get any kind of incentive; you just pay more for the house. If you have a seasoned realtor that is ethical and can look past the realtor bonus they get from these builders, they will negotiate a better deal on your behalf. If you can see through the smoking mirrors that these on-site greedy sales people pitch, you will soon realize they are ripping everyone off. Lets face it folks, they are not giving you anything, they are just increasing the cost of the home for the consumer by inflating the sale price. I am sure someone has experienced what I am about to say. You bought your house, for a certain sales price. A year later that builder is building that same house for $20,000 to $30,000 less than what you paid for your house. Interesting huh? Well it’s going on all over the U.S. The real problem is there is not enough regulation for builders because they are lining the pockets of government officials to veto any bill that would hinder there profits.

New Home Property Tax issues
Here is the big reason why builder’s communities have a high density of foreclosures. When you buy a new home with a builder, the taxes that the seller gives you a credit for is bases on unimproved property taxes. This is what causes escrow shortage all around the U.S. and causes families to loose there home. Example:

1. New Home Sales Price: $200,000
2. Value of Land: $25,000
3. Purchase month: August
4. Tax Credit from seller up to Purchase date: $500.00
5. Tax Credit should be from seller: $4000
6. Tax Shortage: $3500.00
Taxes are based on 3% of Sales price

This is an example of how escrow shortages take place and cause buyers to foreclose on their properties. The fix, would be to have the mortgage company collect on improved property taxes, and have the builder give a tax credit on closing settlement statement based on tax rates for area. This would fix the problem with escrow shortages within builder communities. This currently does not take place everywhere like it should; through all the smoking mirrors and sales bull the buyer gets screwed. They end up getting the short end of the stick, be sold on a mortgage payment that does not include the correct tax figure, when it’s actually going to go up because there taxes are wrong. Buyers beware when you buy with a new home builder. Don’t get caught up in the sales pitch, and end up loosing your home because they were just interested in making a sale. There sales tactics could cause a foreclosure which will ruin your credit report and credit scores. Don’t buy a new home without doing lots of research. Also don’t believe the incentive tactic, because is just a sale gimmick.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Is Free Credit Reports a SCAM?

There are lots of Free Credit Reports on the web. I am sure you are asking which one to get. Well there is only one source on the web where you can get your free credit report with all 3 credit bureaus. Annualcreditreport.com is the only place to get your free credit report. As September 1, 2005 everyone is entitled a free credit report once a year. Here are the advantages of this service and disadvantages in case you were wondering.

Disadvantages:
1. You don’t get your free credit scores
2. You only get it free once a year.


Advantages:
1. Its free once a year
2. You get a credit report with all 3 credit bureaus


Free Credit Reports bad Press
The advertisement you see on the web and T.V. can be a little confusing, here are FACTS. The companies that advertise free credit reports with scores are FREE during the trial period. There are different offers, with different companies, but most of them are services through the credit bureaus. Yes, these companies want you to sign up for the monitoring services, especially since identity theft is the fastest growing crime in America. Here is what most of the websites that are giving negative press don’t tell you. Annualcreditreport.com does not give you your credit scores.” Well if all creditors look at your credit scores, should you know your scores as well? That would be a “yes.” So if there is a fee to look at your scores, and everyone including your employer wants to know your scores, I would not have a problem paying that fee. To get your credit report with scores usually costs around $14.95 a month. If you don’t call back and cancel these services they will automatically bill you. We all know there is nothing for free, but you do a get a free trial for most of the credit reports services.

How often should you check your Credit Report?

Since annual only allows you to get your credit report once a year, you need other good resources to check your credit. Anything can happen to your credit report during a 12 month period. Your creditors can report negative information by mistake and cause havoc with your credit scores. Someone can steal your identity in a matter of a few minutes. So how many minutes are there in a year? There are 525 948.766 minutes, that is plenty of time for some identity thief to really do a number on your good name. I would recommend checking your credit every 60 to 90 days, just to make sure your there is nothing weird going on with your personal credit report. Don’t listen to all the negative press, until you have heard the facts. And of course you just got them in this article.





About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Score Requirements for 2008 Mortgages

Your credit score in 2008 is very important when it comes to buying a house. Heck your credit score is important when it comes to getting a loan period these days. Since the sub-prime mortgage meltdown, Wall Street has tightened up on what kinds of mortgage paper they will buy. Most loans are run through automated underwriting engines. The underwriting engine will either say yes or no, but here is the funny thing. Even though the engine says yes, the investor may have its own internal guidelines that would overrule an automated approval. This is not normal in the loan business. During the past years when you got an automated approval with either Freddie Mac or Fannie Mae underwriting engines you were golden.

Mortgage Insurance Companies
Since all the tightening up in the lending industry, the companies that insure these loans have tightened up as well. The reason for this is all the claims that are being filed as a result of defaults on mortgage loans. I have discussed in other articles how everything basically is based on risk, well so is insurance. If the insurance company sees a pattern with certain credit scores and loan types they will tighten up on the underwriting guidelines for those specific borrowers. Currently you cannot get a 100% Conventional prime loan unless you have a 680 credit score. Previously it was below 600 credit scores, but you had a higher interest rate. Currently they will just deny you of the loan, because they cannot get the loan insured. This mortgage crisis will affect everyone, including people with good credit. They will be able to get loans, but the loan guidelines will be more stringent.

FHA loans
FHA loans have been around since 1935. This government entity is the single largest insurer of loans in the world. FHA has baled the housing industry out of the tar pit right after the great depression. It looks like the same savior will be at it again in 2008. FHA loans have not tightened up, but again the investors that buy this paper have. Its common for banks to sell there loans to other banks. This is just a common practice these days. The only problem is the big banks buying paper from the small banks have really tightened up on what type of loans they will buy. With this being said, the entire process is getting tough all around.

Credit Scores
Your credit scores will either make you or break you when it comes to getting credit extended to you. With the disaster in the housing market, you can count on it getting even tougher with credit score requirements. So if you are in the market to get a home, I would recommend getting a copy of your free credit score report and see where your scores stand. Your score will be extremely important in this current lending market.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

New FICO Score 08

The new FICO Score 08 is being rolled out this spring. Maybe you have heard about it, maybe not. Fair Isaac Corporation the creator of the FICO score software is rolling out its new risked based software. This software is what 90% of the largest banks in the world use to determine the likelihood of you paying back your debt. So if you go to the bank, and they run your credit the bank will pull your credit report which includes these credit scores.

The new software’s aim is to forgive small hiccups on your credit report, but will punish repeat offenders. If you are one of those individuals that has a pattern of not paying back your bills, you will have a hard time getting loan under this new software. Fair Isaac claims this software will do a better job of determining your likelihood of paying back obligations. They also claim it will save creditors on defaults between 5% and 15%.

Fair Isaac also says that the new software will stop the piggybacking of authorized user accounts. For years credit repair companies used this loop hole to uses someone else’s good credit to boost there clients credit score. According to Fair Isaac the new software will not take into account authorized user accounts. On the other hand this will hurt legitimate authorized users like parents adding a child to help generate some good revolving credit.

Fair Isaacs’s reason for developing this new software was because of the pressure from banks wanting to make better calculated risks when it comes to loaning money. Another big factor in the demand for this risk based software is the recent sub-prime meltdown. With this new software and the improved calculated risk process, your score is likely to go up if you are keeping your credit in good standing. It’s really looking for repeat offenders. The borrowers that have a pattern or total disregard for credit with be affected the most.

The calculated risk software maker also mentioned you should check your credit report periodically for inaccurate information. As they are not responsible for inaccurate information, this type of activity would affect your overall score. The creditor reporting this information to the credit bureaus would be responsible for correcting any errors on your report. So with this being said, stay on top of your free credit score report. It’s very common for creditors to report incorrect information about you.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

What is a Credit Bureau?

Have you ever wondered what the Credit Bureau is? A credit bureau (US) or credit reference agency (UK) is a company that stores consumer credit information on individual borrowers. These bureaus help lenders assess the creditworthiness of a potential borrower.

Credit Bureaus collect personal financial data on individuals and businesses from data furnishers which the bureaus have a relationship with. These data furnishers could be utility companies, debt collection agencies, public institutions, banks, courts that a consumer or business had a relationship or experience with. These data furnishers report the experience with the business or consumer to the Bureaus. The information that is collected by the furnisher and the bureaus is collected and stored in a repository by the credit bureaus. When a creditor pulls your personal credit report from all three bureaus this information if any will be reflected on your credit report. There are 3 Bureaus primarily used by creditors when assessing your credit risk.
1. Experian
2. Equifax

3. TransUnion

These three repositories have the job of collecting your data, and presenting that data on a credit report attached typically to your social security number. Typically when you pull your free credit score report you will get this information in a 3-1 report. Have you wondered what in the world 3-1 report means, well it means 3 bureaus on one report. Sometimes it is called tri-merge report as well.

In the Unites States the legal term for credit bureau under the Fair Credit Reporting Act (FCRA) is consumer reporting agency (CRA). IN the US there are rules in place that govern these bureaus and data provider to protect the consumer or business. These rules are Federal Fair Credit Reporting Act (FCRA) and Fair and Accurate Transactions Act (FACTA), Fair Credit Billing Act (FCBA), and regulation B. There are two entities that share the responsibility of oversight and accuracy of both the bureaus and data furnisher’s data. Federal Trade Commission (FTC) has oversight for consumer credit bureaus. The office of comptroller currency oversees all national banks in regards to credit bureau reporting.

Data collection is a big business; everyone wants to know the risk they are taking with you, whether it’s a loan, checking account, apartment or new job. It’s so important to know what the consumer credit agencies are reporting about you. There could be inaccurate information on there that would affect the outcome of a potential loan. Get your free credit score report today and see what they are reporting about you.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Increase your Credit Score Quick

Increasing your credit score is not that hard believe it or not. I am going to teach you how to increase your score depending on your situation. As a lender I have helped tons of people increase there credit scores so I could get them a loan. I have learned all kinds of tricks of my trade since I am involved with people’s credit through out my career.


Pay Down Debt
Folks this is the quickest way to increase your credit score. If you have credit card debt, and more than 30% of credit limit is charged your scores will drop. I guarantee you if you follow the example provided your score will rocket.
Example:
Credit Card Limit: $10,000
Balance: $5,000

Pay balance down to $1000.00 and your credit score will increase around 50 points. The reason for this, is according to Fair Isaacs FICO® system the ­­­­------- Extent of Indebtedness is (30%) of your credit score. That is a major part of your score. So if you have credit cards that are above 30% of credit limit, pay down the cards with the highest balance. You will see good results within 30 days.

Late Payments
I have discussed the effects of late payments in other articles I have wrote. But I don’t think I can ever talk too much about the effect of this mistake. You can kiss 100 to 150 points away for late payments whether its 30 days late or 60 days. Also it’s very common for creditors to report late payments when there actually was no late payment at all. This mistake on a creditor’s part is very costly. I would pull a current copy of your free credit score report to see what inaccuracies are on it. Once you have determined you are the victim of this type of mistake, call the creditor get a letter to remove late payment from the Bureaus. This process will increase your credit score 30 to 40 points, depending on how many late payments are removed. The one creditor that reports late payments as a mistake is Sallie Mae. For some reason when student loans are put in deferment with these guys, they report the payments late. This is just an example of how to increase your credit score by removing late payments.

Increase credit card limit
This is a neat trick, I have actually done this. Let’s say you have 3 credit cards, one card is above the 30% of credit limit. The other two cards are close. What you can do is request a limit increase on the card that is above the 30% credit limit. The credit card company will actually ask you for how much, your response should be for the max you will allow. Since extent of indebtedness accounts for 30% of your credit score you can see how this will increase your score.

Conclusion
These tricks of the trade if followed correctly will help you over all credit health. Obviously the first step is to get a current copy of your free credit score report to see where you stand. Once you have determined what makes sense for you, make it happen. Your credit is your life.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Re-establish Credit Report after bankruptcy-learn how

Bankruptcy is in place to help those that are in trouble financially. God knows that if you filed bankruptcy is was not your intent originally. Luckily when it comes to your credit, you can always recover after something like this has taken place. When your credit score is determined there is life after a bankruptcy. Time will relieve you of your credit scar. The FICO next Gen software that determines your credit score will forgive past mistakes in due time. There are some processes you need to go through to re-establish your credit afterwards. Here are the steps.

Secured Credit Cards
Secured credit cards are the quickest way to re-establish credit. The reason for this is you give the credit card company typically $300.00 to deposit in to an account of there choice. Once you have done this the credit card company will start reporting the credit to all three credit bureaus. The reporting of good credit is the trick. You now have a good trade line of credit reporting in your favor. It would not hurt for you to apply for two more secured credit cards. That way you get a couple of good lines of credit reporting to the credit reporting agencies. Once twelve months have passed, at this point you are close to getting your credit healthy.

Saving Money
Saving your hard earned cash is probably one of the toughest things to do. As a lender I see what people are doing, and believe me they are not saving. The quickest way to financial freedom is to save your money in an interest bearing account with diversification. If you don’t save, then you will be forced to work all of your life. Life is too short, save for the “Golden Years.” Saving money is a way to re-establish credit because lenders like to see you save. This is a sure sign of stability after filing bankruptcy. The reason is if you run into some problems you will have the money to rebound. Lenders like to see at least 6 months worth of reserves in an account.

Rental History
Rental history is an important part of rebuilding your credit. Rental history does not report to the credit bureaus, but it show you can pay an obligation back. When buying a home, underwriters typically want to see two years residence history with 12 months verified. When paying your rent, make sure you pay it on-time. Rent shows responsibility and that is what creditors are looking for. They don’t want to lend to someone that has total disregard for their bills.

Conclusion
When rebuilding your credit after a Bankruptcy you will need at least 3 lines of good credit reporting for 12 months. Secured credit cards are the quickest way to get that credit going on your free credit score report. Along with saving around 6months worth of savings, and good rental history you should be well on your way to rebuilding your personal credit report.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Secured Credit Card Advantages

Secured Credit Cards have many advantages for someone who does not have any credit, or someone with challenged credit. It is hard to do a lot of things without credit cards. In this article I will discuss why you need credit, and if you don’t have credit or your credit is challenged, how secured credit cards will benefit you.

Establish good credit
One of the hardest challenges is to get a creditor to extend credit to someone that has no credit. There was a trick used for years, and that trick was having a family member ad you to there credit card as an authorized user. Recently the FICO® score model was changed because of the fraudulent use of selling authorized user accounts by credit repair companies. This motivated Fair Isaac to change there FICO® score model. So if you are added to a credit account as an authorized user, this can hurt your credit score. This loophole has been closed. The best way to get started in the credit building process or the credit rebuilding process is too get a secure credit card. Secure credit cards require a deposit into a designated account by the credit card company. This is the quickset way to start establishing good credit.


How much credit do you need?
Once you start building your credit, most creditors like to see at least 3 lines of credit reporting on your credit report for 12 months. The standard is getting 3 secured credit cards or at least two will suffice. Once the lines of credit have been reporting to all 3 credit bureaus for 12 months your credit score will start to appear or get better depending on your circumstances. Remember secure credit cards are just a way to get the ball rolling. After you have been paying on your credit cards with no late payments other credit card companies will start offering you credit cards with small credit limits. Typically they will extend around $1000 line of credit to you. With good history they will increase that limit over time. Your credit card balance should never be charged over 30% of allowed credit limit. Fair Isaac talks about this in their score model. Be careful with credit cards, they can consume you if you are not careful. You should never charge more on a credit card than you can pay off that month.


Payment History
If you have one late payment on your credit card, you just defeated the entire purpose of this article and the credit building process. One late payment will slaughter your credit scores. Typically your credit score will drop 100 to 150 points. So if you had a 720 credit score, you now have a 570 score. A 570 credit score will get you denied for all types of credit. So make sure your payment history is in good health. Never be late on anything. Make sure you get a copy of your free credit score report to see where you currently stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Check my Credit Report – How often should I?

Checking your free credit score report is probably one of the hottest topics these days. With the average American not being rich, and at times in need of a loan, they need to keep there credit score healthy. There will be situations where someone will need to pull your credit report. If you have bad credit, it may not be a good experience for you. There is lots of talk about annualcreditreport, but there is not much talk about not getting your credit score there. Annualcreditreport does provide you with a free credit report from all 3 credit bureaus, but you don’t get your scores. You can get this report once a year for free. A lot can happen to your credit report during a year’s time. Here are some examples.

Inaccurate credit report

Studies show that inaccuracies are common in credit reports and can harm your ability to get loans. Inaccurate information on your credit will cause harm to your credit rating. When your credit rating is jeopardized, so is the ability to get loans, good interest rates, or even that new “Dream Job.” Often there is human error involved in the reporting process. Creditors pay someone to report information about you. At times this information may have been keyed in incorrectly, and as a result your credit score drops.

Identity Theft Protection

Someone’s identity is stolen every 3 seconds. If you think about that, someone could be stealing your identity as you read this article. That is pretty scary. If an identity thief has got your information currently and is out using your credit, how would you ever find out without pulling your credit report? Maybe someone is out opening credit in your name, and charging up stuff. What ever the thief is doing, you are probably not going to find out about it until it’s too late. If you get credit report monitoring services set up, you would get e-mail alerts when critical changes take place to your credit report. Critical changes like someone opening credit in your name and out having a field day with your credit.


Conclusion:
Checking your credit report should not be a scary thing, it should be a positive thing. If you are managing your credit properly, then you will pull your credit in confidence. You will be able to go to creditors and get good interest rate loans with ease. Since a lot can happen to your credit in such a short time, you should get a copy of your free credit score report every 60 to 90 days. Checking your credit report once a year is asking for a disaster, and is total disregard for what is really going on out there Protect yourself by staying on top of your report. I would not wait for it to happen to you, check your free credit score report today.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

What Not To Do During Home Buying Process.

The home buying process can be tricky at times. There are definitely some things you need to avoid during this process. I have seen all kinds of nightmares because someone did not listen to their loan officer. I will give some you exactly what not do in this articles so your loan and credit score is not affected.

Late payments
During the home buying process make absolute sure you are not late on anything. If you have a late payment on anything that reports to your credit report your credit score will be affected. In return an underwriter will see this and your loan could be dead as a result. Late payments on any obligations that reports to your credit report will drop your score between 100 to 150 points. “Don’t be late on anything.”

Don’t buy anything on Credit
While you are going through the home buying process you don’t want to take on anymore debt, this could affect your loan. That means don’t go out and put furniture on credit for your new home until you have closed and funded on the loan. Don’t put anything on credit period.

Don’t co-sign on a loan for anyone
While you are in the process of getting a loan, don’t co-sign on any note. This could cause your loan to get denied. When you co-sign on a loan, then you are equally responsible for the new obligation. This could lower your credit score, and also cause income to debt ratio problems as well.

Don’t quit your JOB
Ok, you might think this is a joke, but we have actually had borrowers quit their job thinking we would not find out. Well, guess what we will. Don’t quit your job during the home buying process; underwriters do last minute job verifications before loan documents go out to the title company for a closing.


I hope this has been advice you got prior to doing any of the above. You could definitely have some major problems. Maybe you have not even started the loan process, and this will be good advice for you. What ever your situation is, make sure you are on top of your credit report and scores. Your credit scores could be affected by any of the topics discussed in the article.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Learn the “Correct” way to buy a home so it’s not a disaster.

Buying a home is the single biggest purchase you will ever make. Surely you want to make sure it s a smooth process. We are a society that likes to touch and feel. Kind of like trying to buy a car, you want to take it for a test spin before you buy. Unfortunately that is not the way it works in the real estate arena. You will find that most “seasoned real estate” professionals will not jump in there car to show you a home until you have secured financing with at reputable lender. With the current credit crunch and liquidity problems with banks, you better make darn sure you can secure financing. Even individuals with good credit are having issues getting financing secured. Here are the steps to follow:

Get Pre-Approved not Pre-qualified.
Getting pre-approved means you have a lender verify all documents to support the loan approval. Most lenders will run you loan through a automated engine. Once everything is verified and ran through either Fannie Mae or Freddie Mac engine you should be approved at that time.Pre-qualfied means that someone has taken your information over the phone and has not verified anything other than your credit report. This type of approval does not mean jack hill of beans.



Meet with your lender whom has approved you.
This is an important part of the process, so there is no misunderstanding on loan terms. Make sure you understand your payment interest rate etc………..


Find a reputable and seasoned realtor.
Finding a seasoned reputable realtor is so important; the reason is they need to understand the current market, and what to look out for on your behalf. A realtor’s job is to look out for your best interest. Once you have been pre-approved, then the realtor will have a better understand as too what type of negotiation process to start on a home.



This process is the best way to assure your home buying process is as smooth as possible. I am sure you hear of the nightmares out there, typically this is because the proper process in not followed. The end result is not good one. Lenders are looking at your credit scores very close now. Make sure before you start the process you pull a current copy of your free credit score report. That way you already have a idea where you stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Why annualcreditreport with no Credit Scores is not good enough.

Annualcreditreport gives you a credit report free once a year, but they don’t give your credit score. I have been a lender for 7 years, and believe me when it comes to getting your loan done everyone looks at credit scores. Your credit score is a bench mark for banks to sell your loan on the secondary market. Typically investors use your middle credit score to determine your creditworthiness. Here is what myFICO® says in regards to how important it is to know your credit score.

How credit scoring helps you

Credit Score gives lenders a faster snapshot of your credit risk. Most lenders are now using FICO® to determine your score. Before the scoring process was implemented there was a biased opinion of your credit. Now there is less none bias opinion of your creditworthiness with credit score automation process with all 3 credit bureaus. When pulling your credit report with all 3 Credit Bureaus you typically get a score. Since annual does not provide this, you have to get your report through other service providers.

Here are some advantages of credit scores.

• You get loans faster
Your credit scores can be delivered with a few key strokes with today’s technology. With the speedy process this helps lenders speed up the decisions making process. Even mortgage applications can be made within ours, instead of weeks.

• Credit Decisions are fairer
Credit decisions can be made of facts instead of emotions. Factors like your gender, religion, race, marital status and nationality are not considered by credit scoring.

• More Credit is Available

Lenders can approve more loans because the credit scoring process gives them the information on which to base there decision on. It allows lenders to identity individuals that are likely to perform well in the future even though they have had issues in the past. Each lender has its own credit score guidelines, so if one denies you, you may get approved elsewhere. The use of credit scores gives lender the confidence to offer more credit to people since they better understand the risk they are taking.

• Credit mistakes count for less

If you have credit problems in the past, credit scoring does not let that haunt you forever. Past credit problems fad as time passes as long as new good credit patterns show up. Credit scoring weighs all credit in a file, as opposed to focusing primarily on past issues.

• Credit Rates are lower

The cost of loans decreases when more credit is available. The process of automation in the credit process is less because of the efficiency of the process, which is passed on to the consumer. Buy using the scoring process there are less defaults, and in returns saves the consumer in the long run. Credit Scores have revolutionized the lending arena, and has driven down cost for everyone.


Conclusion:

Now you know why you need to know your scores and how important it is. Recent studies show that 1 out of 4 credit reports have incorrect information on them. Plus identity theft is the fastest growing crime in America. You need to check your free credit report with scores every 90 days just to be safe in today’s times. Since your scores are the core in determining whether they will lend you money, shouldn't you know what they are ? The answer to that is yes.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Medical Collection

Question: ?
I'm recently pull my credit report and now is bad than last year. I see the changes, appeared a new medical collections. In 2003 I had a car accident and after that I been receiving the medical bills, and the insurance company never responded for this bills. Now I have a different medical bills and the insurance company close the doors. So, I have a big problem with this collections companies because they duplicate the bills for example: Commercial Trade CTBPH96333957178 $640 on 11/06 and then other collection CTB PH96333957196 COLLECTION $640 on 11/06, the big question here is how can to clear one of this collections? Because is affecting my credit report twice. I want to make a agreement to pay but I'm understanding this duplication is affecting more my credit score. Please, give a good news. I will appreciate your advise.

Answer:
Hi Carlos,
It looks like to me without looking at your credit report that the collection in question is getting sold to different collections companies. Therefore it re-reports as a new collection. Every time it reports as a new collection it will drive down your credit score. My recommendation would be to settle on the debt. Offer them $250.00 dollars; I am sure they have added all kinds of fees to the original balance. Not sure why you would have two different collections for the same balance reporting with different account numbers. Sometimes the Credit Bureaus will report a collection on one line with two Bureaus, and put other Bureau for the same collection on the line below. Once you have settled on the debt, make sure you get a letter stating debt is settled as agreed, and send letter to all 3 bureaus via certified mail. Here is the process on doing that. Go here: This should resolve your problem of duplication. The link I gave you will allow you to dispute online with a few key strokes as well.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Get your real free fico score today !

Free FICO Score report is what 90% of banks use today to determine your credit risk. You have 3 fico scores with the 3 bureaus, TransUnion, Experian and Equifax. The FICO scoring process was pioneered in by Fair Isaac in the 1960’s which sparked a revolution for automated credit risk. This revolution allowed companies to improve there business performance through this calculated risk model. Your FICO score will determine what type of loan, rate and terms at any given time with lenders. The higher your score, the better your terms are. In order for the 3 credit bureaus to calculate your score, there must be at least one account that has been open for at least 6 months.

Other names for FICO scores:

Fico scores have different names at each of the 3 credit bureaus. All of these scores were developed using the same methods by Fair Isaac, and have been rigourasly tested to ensure they provide the most accurate picture of credit risk with all 3 reporting agencies.


Credit Report Agency / FICO Score
TransUnion / EMPIRICA®
Experian / Experian - Fair Isaac Risk Model
Equifax / BEACON® Score


Why the 3 Bureaus have different Credit Scores:

In general, when people talk about your credit score they are referring to your FICO score. However there is more than one credit score used to make a credit decision about you. The FICO score calculated from each bureau could be different than the other bureaus because each bureau collects its own information. Definition of credit bureaus is as follows: Credit Bureau is a repository that provides credit information on a borrower. This is how you get different credit scores when you pull a copy of your free credit score report. Equifax currently provides your true FICO® score. So if you are in the market to make a purchase you might want to get that score. It is fairly reasonable; you get a 30 day free trial with the credit report.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Fair Isaac Corporation aka MyFICO – Picks on Small Company

I am sorry folks but I had to let everyone know what happened to my other website, http://www.my720fico.com/. A couple of weeks ago I got a cease and desist order from Fair Isaac Corp because fico was in my domain name. I believe this is primarily my fault, but I thought it was worth writing about. I will mention this though; I switched everything from http://www.my720fico.com/ to http://www.creditscorequick.com/ which I think is a much easier domain name to remember. I started my720fico about 7 months ago to provide a resource on the internet for consumers to get the correct credit advice. I am a mortgage lender in the state of Texas. I worked very hard to get articles and lots of career experience advice all over the web. I sacrificed a lot of family time, which by the way I have 3 kids. All the sudden I started getting some traffic and exposure in the search engines. I believe this has a lot to do with the fact that my articles are based on true results, not some sales pitch. Yes I do sale free credit score reports, but I also have a passion for helping people with credit problems and educating them on how to stay out of trouble with creditors. I begin to get credit questions from people all over the United States. What is strange about this cease and desist order from there attorneys is, I was an approved reseller with there company. They reviewed my website and approved it 7 months ago. Anyways, I received this order from the massive company 3 weeks ago and I consulted an attorney. The attorney said that I was indeed violating the trademark fico. I could not believe that such a huge company was worried about little oh me. So I came to the conclusion that I was obviously a threat to them with the exposure I started getting around the world. I will say this, in order to get to the top of the search engines require good quality content, and lots of hard work. These search engine optimization companies are correct, my hats of too them. So I took down my720fico and started up CreditScoreQuick.com.

CreditScoreQuick.com services provided:

Free Credit Score Reports
bad credit advise
secure credit cards
identity theft protection
loans
debt consolidation

I must have a good thing going to have such a huge company like Fair Isaac Corporation demand I take a website down. The funny thing is it’s actually a blessing because CreditSCoreQuick.com is actually getting better results that my720fico.I guess there is a "Big Bad Giant in everyones life " There is a reason for everything though.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Bad Credit Report affects your Children – Learn Why.

Bad Credit Reports will affect your children in many ways. First let’s start out with the fact that most Americans are blue collar workers. You are working for the system, which is greedy Corporate America. Corporate America does not allow financial freedom. So you are subject to the 3% salary increase every year if you are lucky. In other words you don’t have the money to pay cash for everything that you might want to buy. In this article I wanted to discuss with you in another light, about the fact that your credit report not only affects you, but your children as well. For instance, one of your kids, really need braces. I am not sure if you have checked lately, but braces are very expensive. Current insurance with greedy corporate America does not cover all your cost involved with getting braces these days. So your only choice is to finance part of the cost. The doctor says lets run your credit to see if we can finance the braces for little Johnny. Deep down inside you know you have credit issues, and you just have that feeling they are going to say that bad word NO. The doctor comes back and does exactly what you thought, we cannot find anyone that is willing to finance little Johnny’s braces. But here is a number to call so you can find out why. You know why, your credit report is in bad shape because of past mistakes and maybe some recent ones as well. You knew this all along, and did nothing about it. I will tell you this; bad credit does not go away. It will stay on your credit report for 7 years. Bad Credit destroys lives, and opportunity for people to move forward. Maybe little Johnny needs a car, and you don’t have the cash to buy a car, so you have to finance it for him, maybe little Johnny would love a backyard of his own to play in. Now you decide to buy a home, but to your surprise you can’t because your credit will not allow anyone to take the risk with your past credit history. I can keep going on and on and on. I could write a book of reasons how you’re “bad credit report could affect your children “, but let’s talk about how to fix a problem like this. Your first step is to admit you don’t have the credit to get a loan anywhere. I would not go around hoping there is a miracle that someone will lend you money, until you have pulled a current copy of your free credit score report. This will take the guessing game out of the equation, and will give you a peace of mind where you stand with your credit. Once you have determines your credit score, and what is on your report, the next step is to start fixing what is on it. Here is a link with how to fix bad credit reports, go here: Once you have gone through this process, you will soon have good credit, and will be able to finance what every little Johnny needs. Your credit is important, especially if you are not independently wealthy. Most American have to borrow money to get some of the items to live in today’s society. My recommendation would be don’t let your bad credit report affect little Johnny.

http://www.blogcatalog.com/directory/finance

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.