Remove collections from Credit Report

To get collections removed from a credit report there is a process to follow. There is also a big misconception out there that you can get collections removed that you owe. Yes you can get collections removed but there is seasoning requirement in order to get them removed. In this article we will discuss what can and can’t be removed from your credit report.






Get a copy of your credit report with credit scores
If you want get collections removed you obviously need to know what is being reported on your free credit score report. You also need to make sure you pull a 3-1 credit report with all 3 of your credit scores. Once you have done this then you can determine what you need to start disputing. I see a common problem all the time, and that problem is people disputing information they owe. That does absolutely no good unless the original collection date has expired per the Fair Credit Reporting Act (FCRA). Here is list of when certain collections will expire and are to be removed from your credit report by law.

Derogatory expirations guidelines:
• Chapter 7 – 10yrs
• Chapter 13 – 7 yrs
• Tax Lien – Until paid off
• Child support – Until paid off
• Collections – 7yrs
• Chare Offs – 7 yrs
• Late payments – 7yrs
• Inquires – 24 months
• Foreclosure – 7 yrs
• Repossession – 7 yrs
• Judgments – 7yrs

*Expirations date starts ticking from the original collection date.


Dispute expired items on credit report
Once you have reviewed what derogatory information on your credit report is inaccurate, make sure you highlight those items on your report. Determine which collections, late payments, charge off, etc….. are set to expire or have already expired. Now you can start the on-line disputing process. I am personally a fan of disputing on-line for the simple fact that it is faster and easier. The credit bureaus will be able to verify the original collection date after you dispute. If the bureau finds you are correct they will remove the derogatory remark. This will start increasing your credit scores. If the collection has not expired don’t dispute it, you are wasting your time. The collection will not be removed unless the expiration date has expired. Folks it’s really that simple. There is no quick way to get bad credit removed. Just remember if you are late on a obligation you can expect your credit score to drop around 150 points, and the negative mark will be on your credit report for 7 yrs. So with all of this being said, make sure you pay all your bills on-time.


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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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’s in your FICO® Score.

FICO scores are calculated from different data within your credit report. This information is grouped into five categories. The Chart below will reflect this as well as the percentage of importance for each category.











These percentages of these categories are for the purpose of the general population. For example someone that is new to the credit scène these percentages may not apply.

Payment History

• Number of accounts paid as agreed
• Presence of negative Public Records(Judgments, bankruptcy, suits, liens, wage attachments, etc ( Collections, and/or delinquency(past due items)
• Severity of delinquency( how long past due)
• Amount past due on delinquent accounts or collection accounts
• How much you’re past due on accounts or collections.
• How many collections you have
• Account payment information on particular accounts (installment loans, credit cards, retail accounts, finance company accounts, car notes, mortgage, etc…)

Length of Credit History

• Time since account activity
• Time since accounts opened
• Time since account opended, by type of account

New Credit

• Time since account was open, by credit type
• Time since credit inquiry
• Number of recently opened accounts, and proportion of accounts recently opened by account type.
• Re-establishment of credit after recent credit problems
• Number of recent credit inquiries

Amounts Owed

• Proportion of installment loans still owed, proportion of balances to original loan amount on certain installment loans
• Number of accounts with balances
• Amounts owed on specific types of accounts
• Amount owed on accounts
• Lack of specific types of credit balances
• Proportion of credit lines used (proportion of balances to total credit limit on certain types of revolving accounts

Types of credit used

• Number of (prevalence, presence, and recent information on ( different account types such as credit cards, retail accounts, mortgage, installment loans, and consumer finance accounts.

*Please take note
Your FICO score takes into consideration of all these variables discussed.
No one piece of information or factor will determine your score alone.

The importance of any factor depends on your over all credit history.
It is really hard to single out any other factor over another, since all factors take part in the overall scoring process. What is important is the mix of information being reported within your credit report.

Your FICO score only looks at information within your credit report. However lenders look at other information outside this report to also make a credit decision.
Example:
• Work History
• Salary
• Rental History
• Kind of credit you are requesting

Your score considers both negative and positive information on your credit report. Late payments will lower your credit score, but establishing or re-establishing a good payment history will increase your FICO credit 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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

Items that don’t report to your Credit Report

There are certain items that report to your credit report, and there are certain items that don’t. In this article I will discuss what actually reports to the 3 credit bureaus which end up on your 3-1 credit report. I hear all kinds of rumors out there about what is not on someone’s credit report. Here are the facts.

When you go to apply for a loan, the first thing a creditor will do is pull a copy of your personal credit report with all 3 credit bureaus. The reason for this is they want to make sure you are credit worthy. If the creditor approves you for the loan, typically 60 days later they will report the money you borrowed to the bureaus they have a contract with. Normally the contract is with TransUnion, Equifax, and Experian. This is the type of information that reports to your credit report.

What reports to the credit bureaus

 Installment loans
 car loans
 credit cards
 student loans
 health fitness facilities
 Department store credit cards
 Gas credit cards
 Mortgage loans
 Line of credit with bank
 Collections
 Charge Offs
 Public records
 Judgments
 Late payments
 Inquiries
 Bankruptcies
 Your social security number
 Your address
 Date of birth
 Your legal name

What does not report to credit bureaus

 Phone bill
 Electric bill
 savings
 Your age
 Your salary
 Race
 Martial status
 College degrees
* Note- Some of these items will report to credit report if not paid.

Hopefully this will sum up some of the questions in regards to what reports to your personal credit score report. Typically the money you borrow is what reports to your credit report. If you don’t pay a bill it will also end up on your report as well. The main point though is debt you owe will be reported. So you want to make sure you are in good standing with all bills because anything not paid could end up on your credit report which will affect your credit 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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

FTC Credit Score FACTS

Need Credit or Insurance? Your Credit Score Helps Determine What You’ll Pay







Ever wonder how a lender decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, many more types of businesses — including insurance companies and phone companies — are using credit scores to decide whether to approve you for a loan or service and on what terms. Auto and homeowners insurance companies are among the businesses that are using credit scores to help decide if you’d be a good risk for insurance. A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance — or pay less for it.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how credit scoring works.

What is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit. It also may be used to help decide the terms you are offered or the rate you will pay for the loan.
Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the date they’re due, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report. Using a statistical program, creditors compare this information to the loan repayment history of consumers with similar profiles. For example, a credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — a credit score — helps predict how creditworthy you are — how likely it is that you will repay a loan and make the payments when they’re due.
Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider these factors when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit-based insurance scores.”

Credit scores and credit reports
Your credit report is a key part of many credit scoring systems. That’s why it is critical to make sure your credit report is accurate. Federal law gives you the right to get a free copy of your credit reports from each of the three national consumer reporting companies once every 12 months.
The Fair Credit Reporting Act (FCRA) also gives you the right to get your credit score from the national consumer reporting companies. They are allowed to charge a reasonable fee, generally around $8, for the score. When you buy your score, often you get information on how you can improve it.
To order your free annual report from one or all the national consumer reporting companies, and to purchase your credit score, visit www.creditscorequick.com, call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281. For more information, see Your Access to Free Credit Reports.

How is a credit scoring system developed?
To develop a credit scoring system or model, a creditor or insurance company selects a random sample of its customers, or a sample of similar customers, and analyzes it statistically to identify characteristics that relate to risk. Each of the characteristics then is assigned a weight based on how strong a predictor it is of who would be a good risk. Each company may use its own scoring model, different scoring models for different types of credit or insurance, or a generic model developed by a scoring company.
Under the Equal Credit Opportunity Act (ECOA), a creditor’s scoring system may not use certain characteristics — for example, race, sex, marital status, national origin, or religion — as factors. The law allows creditors to use age in properly designed scoring systems. But any credit scoring system that includes age must give equal treatment to elderly applicants.

What can I do to improve my score?
Credit scoring systems are complex and vary among creditors or insurance companies and for different types of credit or insurance. If one factor changes, your score may change — but improvement generally depends on how that factor relates to others the system considers. Only the business using the scoring knows what might improve your score under the particular model they use to evaluate your application.
Nevertheless, scoring models usually consider the following types of information in your credit report to help compute your credit score:
• Have you paid your bills on time? You can count on payment history to be a significant factor. If your credit report indicates that you have paid bills late, had an account referred to collections, or declared bankruptcy, it is likely to affect your score negatively.
• Are you maxed out? Many scoring systems evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, it’s likely to have a negative effect on your score.
• How long have you had credit? Generally, scoring systems consider the length of your credit track record. An insufficient credit history may affect your score negatively, but factors like timely payments and low balances can offset that.
• Have you applied for new credit lately? Many scoring systems consider whether you have applied for credit recently by looking at “inquiries” on your credit report. If you have applied for too many new accounts recently, it could have a negative effect on your score. Every inquiry isn’t counted: for example, inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not considered liabilities.
• How many credit accounts do you have and what kinds of accounts are they? Although it is generally considered a plus to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many scoring systems consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may have a negative effect on your credit score.

Scoring models may be based on more than the information in your credit report. When you are applying for a mortgage loan, for example, the system may consider the amount of your down payment, your total debt, and your income, among other things.

Improving your score significantly is likely to take some time, but it can be done. To improve your credit score under most systems, focus on paying your bills in a timely way, paying down any outstanding balances, and staying away from new debt.

Are credit scoring systems reliable?
Credit scoring systems enable creditors or insurance companies to evaluate millions of applicants consistently on many different characteristics. To be statistically valid, these systems must be based on a big enough sample. They generally vary among businesses that use them.
Properly designed, credit scoring systems generally enable faster, more accurate, and more impartial decisions than individual people can make. And some creditors design their systems so that some applicants — those with scores not high enough to pass easily or low enough to fail absolutely — are referred to a credit manager who decides whether the company or lender will extend credit. Referrals can result in discussion and negotiation between the credit manager and the would-be borrower.

What if I am denied credit or insurance, or don’t get the terms I want?
If you are denied credit, the ECOA requires that the creditor give you a notice with the specific reasons your application was rejected or the news that you have the right to learn the reasons if you ask within 60 days. Ask the creditor to be specific: Indefinite and vague reasons for denial are illegal. Acceptable reasons might be “your income was low” or “you haven’t been employed long enough.” Unacceptable reasons include “you didn’t meet our minimum standards” or “you didn’t receive enough points on our credit scoring system.”

Sometimes you can be denied credit or insurance — or initially be charged a higher premium — because of information in your credit report. In that case, the FCRA requires the creditor or insurance company to give you the name, address, and phone number of the consumer reporting company that supplied the information. Contact the company to find out what your report said. This information is free if you ask for it within 60 days of being turned down for credit or insurance. The consumer reporting company can tell you what’s in your report; only the creditor or insurance company can tell you why your application was denied.

If a creditor or insurance company says you were denied credit or insurance because you are too near your credit limits on your credit cards, you may want to reapply after paying down your balances. Because credit scores are based on credit report information, a score often changes when the information in the credit report changes.

If you’ve been denied credit or insurance or didn’t get the rate or terms you want, ask questions:
• Ask the creditor or insurance company if a credit scoring system was used. If it was, ask what characteristics or factors were used in the system, and how you can improve your application.
• If you get the credit or insurance, ask the creditor or insurance company whether you are getting the best rate and terms available. If you’re not, ask why.
• If you are denied credit or not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information with the consumer reporting company. To learn more about this right, see How to Dispute Credit Report Errors.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 Rating improved in 30 days

Did you know you can improve your credit rating in 30 days? Most people don’t know what to do to get their rating up quickly. There are some tricks you can do to your personal credit report to increase your credit score with ease. In this article I am going to discuss how you can do this within 30 days. Keep in mind while you are doing this process I am about to discuss make sure you are not charging up your credit cards, and make sure you are not late on any of your obligations that report to all 3 credit bureaus.

Paying down credit card debt
Since amount owed on debt that reports to credit bureaus accounts for 30% of your overall credit score, this is what we will attack first. This is the quickest way to increase your credit rating if you are about to make a purchase and need that credit score higher. If you have some money in savings, take that money and pay down any credit cards that are above 30% of your allowed credit limit. If you can pay them off, your credit rating will sky rocket. Let’s assume you can’t pay them off, make sure you pay down the credit cards that have the highest balance owed.

Increase your credit card limits
This is a little trick that I have done for myself. I have increased credit limits at times when I did not have the money to pay down my debt at the time. The trick is to get your credit card balances below the 30% allowed credit limit threshold. Typically when you do this you will see about a 20 to 30 point increase in your overall credit rating. I know it sounds crazy to increase your credit limit on credit cards to get your score up, but it will do the job.



Get a letter to delete collections from creditor
If you have not done a credit check lately go ahead and do so. Once you have got a copy of your credit report with all 3 credit scores, look at it and determine if you have anything that has gone to collection. Always start with the most recent collections and small balances owed first. Typically medical and apartment collections are the easiest to get removed from a credit report. The reason is the collection companies usually are more willing to give you a letter once paid or settled to remove any record from TranUnion, Equifax and Experian. Once you have paid in full or settled on debt, make sure the collection company gets you a letter to delete. After you receive this letter you send a copy of the letter to all three credit bureaus to remove any record of the collection. This process will increase your credit rating around 10 to 15 points, depending on how many collections you get a letter for.

Once you have gone through this entire process make sure you do a credit check to see where you stand after 60 days. The results will surprise you because you will have an increase in your overall credit rating.

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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

Debt Consolidation vs. Bankruptcy

Maybe you are in a pinch currently and either debt consolidation or bankruptcy is lurking at your back door. You and the rest of America are having trouble currently with the down turn in our economy. Whether anyone wants to realize it or not, matters financially for most Americans could be a lot better currently. With the rise in energy costs, this trickles down into everything we buy. The result of all of this is causing a loss of jobs, people going into debt, families loosing their homes, and even bankruptcy is on the rise. The entire real estate sector has been extremely traumatized and has sent a ripple all across our country. So the point is times are tough and we understand at CreditScoreQuick. In this article we wanted to discuss the bankruptcy and debt consolidation options for individuals and families that may be having issues as a result of our current economy in the United States.





Debt Consolidation
Debt consolidation is where you get help from a third party to put all your debt into one loan typically with a low interest rate. The advantage of this is you get a payment that you can afford as opposed to letting your creditors go to collection. Obviously this is better on your credit report than just not paying it at all. As this may not be for everyone there are alternate options as well. You can also use the debt settlement method that will reduce your obligations. There are companies that will negotiate a lesser balance on credit card debt that you owe. So you might look at your options to see which makes sense for you.

Bankruptcy
Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far reaching. People who follow the bankruptcy rules receive a discharge — a court order that says they don’t have to repay certain debts. However, bankruptcy information (both the date of your filing and the later date of discharge) stay on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, bankruptcy is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and can’t satisfy their debts.
There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7. Attorney fees are additional and can vary.
Effective October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows people with a steady income to keep property, like a mortgaged house or a car, that they might otherwise lose through the bankruptcy process. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.
Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official — a trustee — or turned over to your creditors. The new bankruptcy laws have changed the time period during which you can receive a discharge through Chapter 7. You now must wait 8 years after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.
Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary by state. Note that personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. And, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or security lien on it.Another major change to the bankruptcy laws involves certain hurdles that a consumer must clear before even filing for bankruptcy, no matter what the chapter. You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a “means test.” This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program at www.usdoj.gov/ust.

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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

Save Money becasue of Good Credit Scores.

Good Credit Scores obviously is to pathway to saving money. You are probably asking why, well the answer is on money borrowed. The average American has to borrow money occasionally for different reason. Let’s assume you need to buy a car, and you think your credit score is low. You are considered a high risk and the banks will charge you higher interest on the money borrowed. Maybe you need to get an installment loan from the bank for personal reasons, you may get denied because your credit score is too low. What every your situation is your credit score will determine how much money you have in the bank at retirement. If you think about this it is pretty scary.

Examples of Money lost to High Interest:
Car loan with low credit score:
Loan Amount: $25,000
Interest rate: 12%
Term: 6 years
Payment: $488 per month

Car loan with high credit score:
Loan Amount: $25,000
Interest rate: 6%
Term: 6 years
Payment: $414 per month
*This calculation is a true current market rate calculation for car loans currently.

The difference in payment is $74.00 per month. If you have good credit you would have saved $5,328 dollars. This money could be in a interest bearing account making you some interest as opposed to going to the bank due to your high credit risk. I don’t think most people see how bad credit can affect your long term goals. Maybe you have kids and you are trying to save for college, this is quite bit of money you could have saved for one of your kid’s tuition. This principle applies to credit cards as well. The worse your credit the worse your terms will be and the more money you throw out the window. Once you see this on paper it is quite scary, but there is help. The road to recovery typically takes about a year, and the first step is to get a free credit check with credit scores. Go ahead and make the plunge and see where your credit report currently stands. I think most people avoid knowing what is on their credit report. No one likes to hear or see bad news. Unfortunately this does not get the problem at hand resolved.

Life is too short and we need to live well so we can enjoy our short stay on this wonderful planet. You might as well make the best of it, and start saving on interest and terms today by being an educated consumer of your personal finances. If you have been avoiding it for a while, go ahead and make that change starting right now. There is nothing like the feeling of going to the bank and not worrying about whether you will get approved or not. With good credit all you have to worry about is what bank will give you the best terms. Remember 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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 you need to know all 3 Credit Scores

Your credit scores are pulled with all 3 credit bureaus when a lenders looks at your credit report. Have you ever wondered why? I constantly hear of people going to annualcreditreport.com to get their credit report, but fail to realize they don’t get their credit scores at that site. Yes it is good to get a 3-1 credit report for FREE once a year but you need to know where your scores currently stand as well. Your credit scores determine your risk as a borrower, and all three bureaus use the same risk model. That risk model is the FICO score model. Here is how your risk is broke down to spit out that life altering 3 digit number.










So let’s imagine you were late on a payment, your credit payment history is 35% of your over all credit score. So you can see what a late payment will do to your fico score. With this being said, your credit score is the risk factor based on the model above that all lenders use to determine whether they will loan you money. In recent articles I have talked about how important your credit report is, but your credit scores are just as important. Did you know your credit scores could change every 30 days? The creditors that you have obligations with report any changes to your balances or history to all 3 credit bureaus every month. So this is why it is important to get a copy of your credit report with credit scores every 60 to 90 days. What if someone steals your identity, which by the way is the fastest crime currently, and most people are not prepared or think it will not happen to them. Guess what it may of just happened, since your personal information is stored all over the place, insurance companies, hospitals, employers, banks, and even the IRS has your personal information being stores somewhere that could be accessible to a thief. With this being said, it is worth getting monitoring set up along with a recent copy of your free credit score report.

So your scores are looked at by lenders, car dealerships, employers, and even insurance companies. With your scores being the benchmark for rates and terms you need to be an educated consumer about your scores. This is why you need to know all 3 credit scores. Each credit bureau will have its own credit score and lenders will use the middle credit score to base their decision on. Be an educated consumer today with a copy of your 3-1 credit report with credit scores.

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, free credit check, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

Lenders are raising the bar on Credit Scores

Your credit scores have never been more important than now. Recent turmoil in the mortgage industry has caused lenders to raise the bar on credit score requirements for different loans. The cause of this is the significant tightening up in the mortgage insurance industry. Mortgage insurance varies from state to state, but is required if you don’t put down a considerable amount of money on a loan. During the mortgage meltdown that has taken place over the last couple of years, mortgage insurance companies starting seeing enormous amounts of claims on certain loan types. These particular loans have had their bar raised on credit scores in order to even get financed since the banks cannot get certain types of borrowers and loans insured now.

Credit Score requirement for Conventional loans.

 95% Conventional loans-Minimum 620 + Credit Score.
 100% Conventional loans-now requires a 20% second lien – 720+ Credit Score
 95% Conventional stated loans-requires a 720 + Credit Score

*Some credit score requirements may vary from lender to lender, but this is a good bar to go by.

Credit Score requirements for FHA loans.
Believe it or not this is a very controversial move on the lenders, because FHA does not have a credit score requirement. I know for a FACT that HUD is very concerned about this since they do not have a credit score requirement to insure their loans. The lenders that are providing the financing do, due to the high foreclosure rate for credit scores below a 580. With this being said most lenders now require a minimum of a 580 credit score to finance you FHA. This is just an example of how the credit score is so important to get financing these days. If you are in the market to buy a home, we suggest that you see where you stand. Pulling a copy of your consumer credit report with credit scores does not affect your credit score what so ever.

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, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

Fico Scores dropped by Authorized user accounts

The FICO credit score model is being changed and implemented during the first of this year. Your FICO score will no longer be determined by being an authorized user on someone else’s credit card account. So in other words piggybacking someone else’s credit no longer helps you.

So if you are an authorized user on somebody else’s credit, you will more than likely see a change in your credit scores.

Adding a friend or family member to their credit card has been longed used by a lot of people to help someone they know establish credit. Many parents over the years have added a child to one of their credit cards to help them establish credit. Unfortunately this is not a good practice to follow anymore.

Credit repair companies were using this system as a way to sell authorized user accounts and piggy somebody else’s good credit to improve their credit score. This credit loophole is the motivation for Fair Isaac to shut down this process in the FICO score risk model.






How this will affect you:
1. Those of you that are new to the country or just starting out with credit will have to establish your credit with secured credit cards.
2. If you are getting married and you were thinking of closing your accounts and being added to your spouse’s accounts, you might re-think this again.
3. Once this change takes affect, their will be no value towards you being a authorized user on anyone’s credit card account.
4. It is possible your credit scores could go down significantly because of this change.
5. If you have been paid to rent out your credit card account you could be committing fraud. It would be advised to stop immediately.
6. If you have been paid to have your name added to someone else’s credit card as a authorized user it is possible you are defrauding lenders. It would be in your best interest to have your name removed as soon as possible because doing business with these companies is a violation of state and federal laws.
7. If you are getting married and you don’t have any credit cards where you are primary or joint account holder you might want to open a couple of credit cards in your name.
8. Women are more likely impacted by this than men because more times than not women are authorized users on their husband’s cards.


Hopefully this has shed some light as to how the changes to the new FICO score model will affect you in the near future. If you are new to the wonderful world of credit, now may be the time to apply for a secured credit card to get matters underway of establishing a good credit rating. Or maybe you are new to this country the same process applies.




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, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 it’s a “Good Time to Buy a Home.”

You cannot turn on the TV or listen to the radio without hearing about the housing market. The main reason the housing market is getting so much publicity is because the Sub-Prime loans affected Wall Street. Obviously if this happens it affects banks that are holding this particular paper in their portfolio. Despite all the bad publicity due to bad loans being underwritten over the years, it’s still a great time to buy a home. There are loans out there that will allow credit challenged families to buy a house with good terms and decent interest rates. This particular loan is FHA. We are currently in a FHA market nation wide. This loan has been around since the 1930’s and is the most aggressive loan in the banking industry. So if this loan will allow challenged credit to obtain financing with good terms, why would you not try to buy? Here are the advantages of the current housing market.

• Lots of homes to choose from.
• Value of homes falling, which means better deals.
• Interest rates are still low.
• FHA allows down payment assistance.
• Motivated sellers.
• Lots of short sales available.
• Lots of Builder reductions.
• Challenged Credit Loans available.






Quite contrary to popular belief you currently don’t need perfect credit to buy a home. If you know of a good FHA Broker, then get with that broker to see if you can get FHA financing. Banks typically are a lot more strict than Brokers whom sale their loans to small wholesale lenders. If you are in the market to buy, there are tons of good deals out there, a home that cost $750,000 3 years ago, might be $550,000 today. There is this that much difference in homes sales around the country currently. Yes currently loan underwriting guidelines have changed; you need more than a pulse to buy a home. Your credit report history is being looked more closely. Here is an article on FHA basics. FHA still has the same guidelines it had 5 years ago, but the lender requirements have changed. For example FHA has no credit score requirement, but the lenders buying the loans require a minimum of a 580 credit score in order to underwrite a FHA loan. Regardless, if you are still able to get a loan with a 580 credit score, I would have to say that is pretty aggressive in today’s 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, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

FHA loan Basics

FHA loans are loans that are insured by (HUD) Housing Urban and Development. FHA loans have been around since the 1930’s right after the “Great Depression." This was when 4 out of 10 households owned a home. (FHA) Federal Housing Administration is the savior for our current market just like it was back during the roaring 30’s.With FHA loans especially during a credit crunch like we are currently are in, you can rest assure banks are willing to be more lenient to approve credit challenged borrowers with FHA financing. The reason is FHA loans are insured by HUD, and if the borrower looses the home HUD will pay a claim to lender for the loss. FHA is the largest single insurer of loans in the world.

FHA Advantages.

• Lower interest rates, typically interest rates are lower on FHA loans with the banks since they are government insured loans
• Only requires minimum investment from borrower of 3% down payment, which can be eliminated by Down Payment Assistance. So essential you can get a 100% financing with FHA loans. Note: Requires Seller participation
• If you have less than perfect credit you can typically can get a loan with FHA, they usually like to see 12 to 24 months clean credit report history. You can even get a loan while in chapter 13 bankruptcy.
• No Credit Score Requirement
• Recent loan limits increased-varies from state to state; go here to find out. For example you can buy a home in the state of Texas with FHA up to $271,050. Depending on if your state is a high cost area; obviously this loan limit would be higher.
• Will allow alternate lines of credit if not good history is on credit report.
Example:
1. Letter from any utility company stating you have been on-time with your payment history for that last 12 months.
2. 12 month payment history from car insurance company, cell phone company and even daycare will work.

If you are currently in the market to buy or maybe you feel like you need credit repair, what ever your direction is, getting a FHA loan is not as hard as you think. FHA gets people approved that may not get approved with other loan types. The first step is to examine where you are at with a lender and get the ball rolling. IN this current market some lenders are requiring you to either have a 580 credit score or higher. They will also allow no credit score but your interest rate is higher than current market rates. This is going on even though FHA has no credit score requirement; this is due to bad performance of loans below the credit score benchmark of 580.

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, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 worthines

Identity Theft

IDENTITY THEFT

Identity theft occurs when someone appropriates your personal
information to commit fraud or theft. Personal Information
can include your name, date of birth, social security
number, and drivers license number.

TIPS FOR YOU TO REMEMBER

¨ Minimize the amount of items with personal information in your wallet, purse or vehicle.
¨ Check your mail everyday.
¨ Shred any documents with your personal information including pre approved credit card applications.
¨ Be aware of telephone, Internet, or door to door solicitations which claim to be legitimate entities in order to gain your confidence then manipulate you to obtain your personal information.
¨ If you receive checks in the mail from any unknown party and you are required to wire transfer money in return ( foreign lotteries, sweepstakes winner, mystery shopper, or through popular websites you have utilized) then you are likely to be a victim of financial fraud.
¨ Lock up your financial documents, credit cards, and blank checkbooks in your residence.
¨ Pay attention to billing cycles for statements that do not arrive in the mail.
¨ Use a secure Internet connection online when entering and transmitting personal information.
¨ Be reluctant to register with websites that request your personal information.
¨ If you have been a victim of identity theft consider getting a fraud alert (1-800-680-7289) or security freeze (888-909-8872).
¨ Check your credit report periodically from the 3 major credit bureaus.
http://www.equifax.com/
http://www.transunion.com/
http://www.experian.com/
Free Credit Report with credit scores from all 3 Credit Bureaus- www.creditscorequick.com/free

The Federal Trade Commission (FTC) serves as a clearinghouse for complaints by victims of identity theft. www.ftc.gov/idtheft
1-877-ID THEFT (438-4338)
Non Profit organizations to assist victims http://www.idtheftcenter.org/ http://www.idtheftne.org/ and http://www.financialprivacynow.org/
To Opt out of pre-approved credit card applications 1-888-567-8688
Free Antivirus Software for your computer http://www.avast.com/
Microsoft has free spy ware at their website http://www.microsoft.com/
Or Spybot free spyware program http://www.safer-networking.org/

http://www.fakechecks.org/ This website has reenactments of popular scams

Your computer should have the firewall active and be set to receive automatic updates from Microsoft. If you have wireless network make sure to set passwords and encrypt the network access.


http://www.msnbc.msn.com-/ Dateline “ To Catch an Identity Thief”

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, identity theft protection, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 worthines

Fico Score

Fico score is what 90% of the largest banks currently use to determine your credit risk. Fair Isaac & Corporation invented the fico scoring model in the late 1950’s. Fico score has been widely accepted as the standard for measure of ones likelihood of paying back a obligation. Fair Isaac does not reveal its recipe for computing that 3 digit number, but they give a nice pie chart to explain it somewhat.










Credit Scores are calculated by using mathematical tables and scoring models which best predict your future credit performance. When you go to a mortgage company or bank they pull your fico score. This is what they use to deny or approve you. If you are about to make a purchase it would not hurt to pull your fico score with Equifax to see where your score stands up currently.

Have you wondered what a good fico score is? Here is a model to show you the national average.









What is the range of FICO scores ?
FICO (aka Classic or BEACON) scores can range from 300 to 850, but the majority of scores usually fall within the 600s and 700s.



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, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 to establish Credit Scores.

Establishing credit scores or more attainable than you think. If you are new to the credit scene I am sure you have heard how important it is to establish high credit scores for better rates and terms on loans. Heck even employers are pulling your credit to determine how responsible you are based on your credit history. In this article I will give step by step instructions on how to establish credit quickly.

Secured Credit Cards
Secured credit cards are one of the quickest ways to get a credit score. A secured credit card is a card where you deposit money into a account that the bank designates for you. Once the money is deposited into the account at that point they issue a credit card that will report to all 3 credit bureaus. The deposit that is required is typically around $250.00 dollars of your own money. With good payment history you will start getting all kinds of credit card offers. You want to make sure you are never late on a payment; if you are your credit score will drop around 150 points. After a late payment has taken place you just defeated this entire process. Also make sure you keep the balanced owed less than 30% of your credit limit. Typically if you charge up your card below 30% of balanced owed your credit score will increase. You also want to make sure you have at least 2 secured credit cards. Orchard Bank Card is a good secured credit card with low fees.

Checking Account
Make sure you are main stream and you deposit your money into a checking account somewhere. When getting a loan all banks want to see what you are doing with your money. It would not hurt to have a savings account at the same bank as well. When you attempt to get a mortgage, one of the needs items a loan officer will ask for is a history of your checking account and any savings you might have. Checking accounts are a sign that you are taking responsibility of your money.

Rental History
Make sure you are renting a house or apartment. This is a great way to establish credit. Lenders look at this as well. They want to make sure you can pay rent on-time as well. It looks better to be renting as opposed to just living with someone rent free. Most lenders like to see at least 24 months residence history with 12 months rental verified.

Utilities
Your utilities need to be in your name. Make sure you don’t put them in someone else’s name.

Student Credit Cards
If you are a student, part time or full time, student credit cards a great way to get credit established. You don’t even have to be at a major university, it can be your local community college.

Auto Loans
Auto loans are a great way to establish credit scores. Usually auto loans are easier to get than most loans. This type of loan will report to all 3 credit bureaus as well.


Everything that was mentioned in this article is what it takes to get credit scores established so you begin your journey with credit. Remember to make sure you are never late on anything. Good luck.

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, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 Reports with Credit Scores

Are you currently thinking of pulling your credit report, and want to know your credit scores? Did you know if you go www.annualcreditreport.com you can get a copy of your free credit report once a year, but you don’t get your credit scores? This is a common misconception out there, that www.annualcreditreport.com is really what you need as a consumer when wanting to get a copy of your tri-merge credit report. Let me ask you this, when a creditor pulls your credit report, do they pull a report with no credit scores?
The answer is absolutely NO; they look closely at your scores to determine your credit risk. This is the whole reason for pulling your report to begin with. I see people out there all the time saying go to annul to get a FREE copy of your credit report, when in reality they are not properly educated on what creditors really look at. They just assume they know. So if you are in the market to make a big purchase, or it’s been 60 days since you last looked at your report, you need to get a copy of your credit report with all 3 credit scores. I have explained in other articles who looks at your credit scores and why. It’s pretty obvious these days that you need to stay on top of this matter so you don’t pay higher rates and terms. Maybe you have had some bumps and bruises on your credit and you want to know what is on there so you can start fixing your credit. What ever you situation is, don’t get mislead by the FREE annual credit report, what they provide is not good enough. You need to check your credit report every 60 days, along with getting a credit score with each credit bureau.





Free Trial Credit Reports
Currently the only offers that are available to get your credit scores are free trial offers that automatically sign you up for credit monitoring. These services are not going to hurt you; I repeat these services are not going to hurt you. If would make perfect sense to get a monitoring services especially with all the identity theft going on these days. These monitoring services will also monitor credit scores and notify you if it drops or any major changes to your credit report. There are different free trial offers and they usually range from 14.95 a month to 17.95.This is not that much money when it comes to protecting your good name. Once you have used this service you can always call and cancel all services it signs you up for. The great thing is you got a copy of your credit report with credit scores, which is critical when it comes to your personal purchasing power. Go to creditors with confidence, and ammunition. This will keep you from getting ripped off by paying high interest rates and terms. Get your free credit score report now.

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, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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 Debt after a Divorce will affect your Credit Score

We all know how important it is to have as high a Credit Score these days. Especially since your credit score is no longer a secret anymore. Divorce is all too common in today’s society, and when Divorce Decrees are drawn up, the attorney forgets to make sure debts that are joint accounts are only in the person’s name that is awarded that debt per the decree. Typically what the divorce decree will say is whom is awarded what debt. Here is how this is a problem.

How debts after divorce will affect you:
Let’s assume while you were married you and your significant other had accumulated some debt that are joint accounts. This means that both of your social security numbers are attached to the obligations and its being reported to all 3 credit bureaus. So once day you both decide to get a divorce and the attorney works up a Divorce Decree like they normally do, which of course is the wrong way. Both of you go on your marry way, and the other party decided to be late on a obligation that is reporting in your name still. Guess what happens to your credit score. Your score just dropped 150 points. This is a common problem, and of course now it’s your problem even though you have a debt that was awarded to the other party per decree. Let’s assume it’s a house, and your ex decides to let the house go to foreclosure. Now you cannot buy a home for 3 years because you have a foreclosure on your credit report. So basically a divorce decree is a agreement between divorcing couples, it does not separate liabilities.

What you need to do so you’re Credit Score is not affected:
Divorcing couples should never rely on the other spouse to pay bills that were awarded to them per Decree. This is a disaster waiting to happen. These type of issues need to be tackled up front so there is no issues once the divorce is final. If you have already made this huge mistake, my suggestion would be to go back to court and get these debts out of your name. If there is a house involved, I would recommend getting the house refinanced out your name or sold depending on the situation. Obviously if the spouse is behind on the mortgage they would not be able to refinance due to the credit situation. In a situation where the ex spouse is behind on the mortgage and its affecting your credit report, I would recommend going back to court and taking over the mortgage payment along with having the house awarded back to you. The solution to all of this is simple; make sure you don’t have debts in your name that gets awarded to ex spouse. Don’t let your ex spouse ruin your credit. If you have already made the mistake, I would recommend pulling a recent copy of your credit report with credit scores to make sure there is no damage done.

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, secured credit cards, student credit cards , mortgage loans, auto loans, insurance 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

6 Tips to protect against ID Theft.

9 million people a year are victims of id theft, learn some tips on how to prevent this from happening to you.