Fair Isaac’s FICO score 08 will restore Authorized user accounts.

This is great news, due to the fraud in the credit repair industry; credit repair companies were buying authorized user accounts to boost their client’s fico scores during the credit repair process. Fair Isaac found out and put an end to allowing authorized user accounts improve your over all credit score. The problem with this move was there are over 50 million legitimate authorized credit card users. With the new FICO 08 this could potentially bring the fico scores down for those legitimate account holders.

Scientists with FICO released news today that they have discovered a way to restore authorized user accounts to the calculation of FICO 08 credit scores while materially reducing the impact to the credit score tampering.

This technology breakthrough resolves an industry problem that has perplexed lenders and concerned banks. Fair Isaac states that they have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit history.

This new technology rollout should be done within a couple of weeks. Fair Isaac stated they are working with the credit bureaus closely to bring FICO score 08 to the public soon.

This is good news; because the way it was would affect a lot of people. Potentially with the older FICO 08, you would be penalized for being an authorized user on a credit card. With this new roll out, it will help those that legitimately are authorized users.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Who looks at your credit score?

Everyone knows that mortgage lenders and car dealerships / lenders look at your credit score. It’s their way of deciding if they should lend you money, and if so, at what rate and terms.

The better your score, the lower the interest rate and the longer the repayment period.

But who else is looking?

Telephone companies and satellite Television providers are two of them. And why? Because they’re providing a monthly service and want to know if they can count on you to pay that monthly bill. I know - they can simply discontinue service if you don’t pay up, but the paperwork costs them money and they’d rather not deal with it. In addition, some of these companies invest in free equipment at the outset of your service, counting on your monthly payments to return that investment.

If you simply stop paying after just a few months, they’re out the cost of that equipment as well as the cost of processing paperwork.

Insurance companies are next. Using statistics gathered over the years, insurance companies have come to believe that customers with high credit scores are not only more likely to pay their insurance premiums in a timely manner, they’re less likely to file claims.

Is this because those people with high credit scores are more responsible in all facets of their daily lives? Or could they be fostering a belief that people with poor credit scores are more apt to file bogus claims? I don’t know the answer to that, but since so many people do file insurance claims that have no bearing on the truth, it could be that they have some statistical information to indicate that they are.

Finally, there are your future employers. With the high cost of training employees, employers want to hire correctly and avoid turnover. So they’re looking at things they never did before.

For instance, you’ve probably read stories about prospective employers Googling applicants’ names to learn more personal information about them. Many’s the foolhardy person who has lost out on a position of responsibility because a prospective employer either saw a foolish video on U-tube or read blog posts indicating that the person they were considering is a bad choice. In other cases, past employers have refused to give referrals because of “bad-mouthing” they received on an employee’s blog.

It’s no wonder that they check your credit scores to determine your levels of personal responsibility. Managing your money well really is a sign of responsible behavior – and that’s a trait that every employer wants to see in every employee.

Order your free credit score today – and find out what everyone else knows about you!


Author:Mike CloverCreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

A Free Credit Report Could be Worth Thousands

How can a free credit report be worth thousands to you? By giving you a heads-up about how the world views your financial reputation, and giving you time to make needed changes before you need credit.

Your credit scores dictate the kind of terms you’ll get when purchasing a home – or even when purchasing a car, appliances, or furniture. So taking steps to ensure that score is high well before you need to apply for credit will save you thousands of dollars in interest over the years.

You may be thinking that you pay your bills on time and don’t owe an excessive amount, so of course your score will be just fine. And you might be right – but not necessarily.

Your credit report could contain errors – and if it does, it takes a few weeks to a few months to correct them. Remember that old saying about computers: “garbage in, garbage out?” Well, when it comes to data entry, it’s very easy to put “garbage in.” Most data entry personnel are minimum wage workers who don’t really care about accuracy. They just care about putting in their time and getting a paycheck.

If they enter one digit wrong on a social security number or a credit card account, so what? So plenty if you’re the person whose credit report now shows an unpaid account that doesn’t even belong to you! And that’s just one example of the errors that can occur.

The second, even more terrifying reason why your credit report could be inaccurate is identity theft. “You” could be thousands of miles away, opening new accounts and running up balances with businesses you’ve never even heard of.

Reading your free credit report will either give you peace of mind or spur you to action:
• If there are accidental mistakes, you’ll have to prove that they really are mistakes.
• If some other person is using your identity you’ll have to get started on all the red tape of stopping them, and then getting their transactions removed from your credit report.

Both of those situations require time, so get started watching your credit scores long before you need them.

Even if you don’t need new credit today, or even this year, keeping an eye on your credit scores right now will save you from frustration, delays, and disappointment when you do need it.

Request your free credit report today – you won’t be sorry!

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

FHA down payment assistance gone now.

Over the years FHA has allowed Charity programs such as Home Down Payment Gift Foundation and others provide gifts from the seller. FHA requires that the buyer make a 3% investment in the purchase of the home. So if the buyer is buying a house around $150,000 they would be required to have an investment of $4500 dollars. With the 3 rd party charitable companies this allowed the seller to gift this requirement in a couple of faucets. The buyer could roll the cost into the note, or the seller could just pay it. When it came down to it, this program was just a red tape way of the buyer getting out of the FHA 3% investment requirement. HUD was claiming that homes that were foreclosing 20% were FHA loans that participated in Down Payment Assistance.

The problem with this program was if the home the buyer was purchasing had any equity it was absorbed up in the down payment assistance cost. Typically the buyer had to roll the cost into the note in order for the seller to participate. Essentially this program caused equity problems down the road.

The great situation about this program was it allowed low income families into to homes with little or now money out of pocket. You could get into a home with typically $500 out of pocket. This program helped thousands of families realize the dream of home ownership.

With the new bill that was passed today, the FHA buyer is now required to have 3.5% of there own money to buy a home.

Along with all the tightening up on credit scores and credit reports, now you will required to save to get a mortgage. This is the way it was prior to the late 90’s.

So my advice like always is to save your money and pay all your bills on-time to keep your credit scores high.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

My Credit Scores have dropped due to new credit cards-Why?

The venture to build a good credit score report is sometimes aggravating and exhausting. If you have never had credit or let all your credit go to collection, the first step on building your credit scores is building or rebuilding your credit report. Anyone that understands this process will tell you your first step is to get some secured credit cards. There are some matters you need to know that will drop your credit score though. Here is what you need to know.

Secured Credit Cards
This type of credit card is a great way to establish credit regardless of your situation. Reason behind the success of this card is because it reports to the credit bureaus as good revolving credit. This card does require a deposit of your own money into the banks account, typically around $300. The good news is with a little payment history you are on your way to save because you have higher credit scores now. It’s a small investment to save lots of money down the road.

Too much credit too quick
If you apply for too many credit cards to quick, your credit score will drop. The credit scoring models look at this as high risk. I would just apply for two credit cards only, that is all your really need.

Credit History
When your credit scores are calculated the length of credit history is a factor as well. If you just applied for credit cards your credit scores could drop, but they will eventually go up. There are all kinds of factors in the credit scoring process, and if its new credit it will take some time to see improvement in your credit scores. But remember this is the quickest way to increase your score though.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Clearing the Confusion about Inquiries and Your Credit Score

If you’ve ever applied for a mortgage loan, and if your loan officer was on the ball, you were told not to go shopping for a car or furniture for that new house. You were told that looking is fine, but do not give a sales person your Social Security number for any reason.

You were warned that inquiries on your credit report would lower your score, and could even prevent you from getting your mortgage loan.

This is true – and borrowers who are barely squeaking by with a credit score at the lower levels of acceptable can cause themselves to lose out on the mortgage.

At the same time, you should have been told not to withdraw funds from your checking or savings accounts to make a large purchase in cash, because your mortgage lender will check your balances to make sure that you have the required balance in the bank to pay your down payment and have a few months’ payments left over.

These warnings have led many to believe that any and all inquiries will lower your credit score, and that is not true. “Soft” inquiries will not harm you, because they don’t indicate that you’re trying to obtain credit.

These would be inquiries you make yourself, inquiries from potential employers, and inquiries from companies who routinely check credit as a preliminary step before sending out letters soliciting your business. Likewise, an inquiry from a creditor with whom you’re already doing business will not affect you.

These may or may not show up on your report, but don’t worry about them.

Checking your own score periodically is a very good idea – in fact, Fair Isaac, the inventor of the FICO score, recommends that you do so. Checking will allow you to catch errors early on, and will alert you to signs of identity theft – one of which is inquiries from creditors you don’t recognize in cities where you don’t live.

If you live in the Midwest and you see an inquiry from a car dealer in Seattle, it’s time to find out why. “You” may now live in Seattle and not even know it.

When you see such an inquiry, or see something strange – such as an incorrect address for you or your spouse – don’t dismiss it as a mistake. Contact the credit bureau immediately and find out more. Let them know that you may be a victim of identity theft and need the information.

Why not get a copy of your credit report today – right here at CreditScoreQuick.com.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Should you Consider Debt Consolidation – and Will it Hurt Your Credit Score?

Lenders often encourage people to consolidate credit card debt by taking a second mortgage on their homes – thus spreading payments out over more years, generally at a much lower interest rate.

Sometimes the same company that issued your credit card will encourage you to switch to a home equity loan. They love it because this is a secured loan – unlike credit cards, which are unsecured. They also love spreading your payments out over a longer period of time, because then a larger percentage of each payment is interest (otherwise known as profit to the lender.)

The lender will point out that home equity loans are tax-deductible, so you’ll be saving money. Be careful with that one, as the rules have changed and you may have to prove that the home equity loan was used to make improvements on your home.

So… Should you do it?

The first question you must ask yourself is this: “Do I have the discipline not to turn right around and run up my credit card debt again?” If the answer is no, then no – you should not do it.

What will this new loan do to my credit score? That depends on question #1 – along with the amount of the new credit line you actually use.

For instance, if you have $50,000 equity in your home and are granted a second “revolving credit” line of $35,000, you have just acquired a higher amount of available credit – which is good for your FICO score.

However, if you use every bit of it, that’s not so good. FICO scoring is a bit of a mystery, but the overall consensus is that you should never use over 30% of available credit on any one account.

Can you eliminate those high credit card payments by using 30% of the credit available from your revolving home equity loan? Then it’s a good idea. From that point on, use your credit cards, but pay them off each month when the bills come in. And of course, never charge more in any one month than 30% of their available balances.

Get your free credit report right here at CreditScoreQuick.com and read it carefully. Add up the balances you owe, and consider how large your home equity loan would be. If it all makes sense, then check with several Second Mortgage lenders to compare interest rates and programs before you make a decision.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit Cards-Why you need them.

Maybe your credit score and credit report was affected by credit cards in the past. Credit cards can hurt lots of people if you don’t manage them properly. Contrary to popular belief credit cards are necessary for good credit scores and emergencies. In this article I am going to discuss why you need credit cards and how to manage them.

Building good credit
Credit cards are part of the credit scoring process. Fair Isaacs’s fico score model likes to see a good mix of credit reporting on your credit report. This mix of credit includes credit cards. Typically anyone that is educated on the credit score building process will recommend getting a couple of credit cards to establish good credit. So with this being said you need a couple of credit cards to get good credit.

Emergencies
Let’s assume it’s during the middle of August, and you are a home owner. You are in a state where it gets really hot, and this really applies to everyone with Global warming. All the sudden your A/C goes out. You get someone out to estimate the repair cost. They tell you it will cost $4000 to fix it. The last time you checked you only had $1000 in savings. Hmmmmm….. If you had a low interest rate credit card you could charge the rest of the cost, and pay it of over the next year. The list can go on with situations that may arrive and you find yourself not having the money to fix the problem at hand. So with this being said credit cards can be used in emergencies like what was mentioned.

Airline Miles
Maybe you are a frequent flier for business and would like to get those miles applied to your personal credit card. You can charge all business trips on your own credit card and those airline miles can get applied towards you own personal vacation. I personally know people that fly first class for free by applying this process.

Credit Card Management
Managing your spending habits is very important. This is critical to keeping your fico scores healthy. If you charge on a credit card for leisure purposes, you need to make sure you pay it off that month. If you find yourself racking up a bunch of credit card debt STOP and don’t charge anything else until you have paid off your current debt. You should not have more than 30% of the allowed credit limit charged up. If you find yourself with more than 30% of your allowed credit limit charged up, your credit scores will suffer a result.

Hotel and car rentals
If you are getting ready to take a trip and need to reserve a Hotel or a rental car good luck without a credit card. Having a credit card is just a part of life these days.


If you don’t have any credit cards apply for one today here.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

FICO credit score Q & A

Q:
Hi Mike,
I noticed that there are different kinds of credit scores on the web. I was looking to get my actually FICO credit score. Not sure if it really matters, but do you guys provide a FICO score at your site? If you do could you pleas send me to the correct area.

Thanks,
Latisha Williams.

A:
Hello Latisha,
This is a great question. If you are in the market to buy something, getting your FICO score report is a good idea. The other credit score offers will not hurt anything either. Most of the Banks use the FICO credit score model to determine your creditworthiness. If you are looking for your FICO score you can go here.

Mike Clover
CreditScoreQuick.com

Raise Your Credit Score Through Smart Spending

We’ve already discussed raising your credit score by paying down your debt – and we talked about ways to bring in more income.

The other “best practice” is to simply quit spending so much. You may think you’re already spending as little as possible – that there’s simply no place to make another cut. There’s a slim possibility that you’re right – but it’s very slim. Most of us spend on things we don’t really need.

Adopt a new habit – when considering any purchase that requires use of your credit card, set it aside for a day, or at least for a few hours. A good way to force yourself to do this is to hide your credit cards in a block of ice, so there’s no temptation to just grab the card and go.

Then take a conscious vacation from spending. Set a time frame of say, 30 days, during which you won’t buy anything but groceries and the absolute essentials – like toothpaste.

Now look for “leaks” in your expenses – ways that you spend money without giving it much thought. For instance:
• Lunch. If you work in an office and routinely go out for lunch, you’re wasting as much as $250 per month. Begin “brown-bagging” it and get the double benefit of eating healthier foods while saving money.
• Snacks – if you stop for a soft drink and candy bar or chips on the way home – stop it! They’re bad for your body and your finances both.
• Espresso – do you really need a $5 cup of coffee on your way to work?? If so, get a machine and make it at home before you leave.
• Services you don’t really need: Like 400 channels on your cable TV when you really only watch about 3 of them. See if you can get your plan changed – or just drop it entirely and begin using the library to borrow books or movies.
• More airtime on your cell phone plan than you actually use.
• Gasoline. This is such a huge expense now that eliminating a few trips will save you big money. If it’s possible, carpool or take public transport to work. If not, always bundle your errands to do before or after work so you don’t make a special trip out for them.
• Magazines you don’t read. Next time you get a renewal notice, take the money you would have sent for the magazine and send it to your credit card account instead.

If you try, you’ll find even more places where you can cut $1 here, $5 there, and even $100 somewhere else. Stop those financial leaks and you’ll be well on your way to a beautiful credit report.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Pay Your Debts to Raise Your Credit Score

Sounds simplistic, doesn’t it? Just pay down your debts, your credit score will raise, and all will be fine. But if you’re in debt, there’s probably a reason – such as spending in excess of your income.

If you want to build a good financial reputation – otherwise known as a good FICO score – you’ll have to make the effort to bring your spending in line with your income.

You have two simple choices, and they should be used in combination with each other:
• Earn more and use the extra to pay down debt – or stop going further in debt
• Spend less

Start with earning more. How many extra dollars per week or per month would it take for you to begin paying off credit cards? $10, $50, $100, or maybe $500?

Remember, even an extra $10 per month paid on a credit card account will make a difference over time. This is a simple example, because it doesn’t take into account that the money will be paid in a little at a time and will begin reducing the amount of interest you pay from the first “extra” payment onward. Your savings will actually be more than the following example.

But look at it this way: If you’re paying 18% interest, and you pay an extra $10 monthly for one year, that’s $120 less that you’ll pay interest on the next year – That’s $9.60 per month, or $115.20 per year that won’t slide out of your checking account into the hands of a credit card company.

So how can you earn that extra money? Here are a few suggestions:
• Take a part-time job in addition to your regular job. Here are a few that could easily bring in an extra $10 or $20 per week without taking up much time:
o Put up and take down signs for a real estate agent
o If you’re good with a camera, take property photos for that agent
o Walk dogs for a neighbor who works long hours
o Pet sit for people on vacation
o Clean offices at night or on the week-end
o Hire on to shop or do yard/garden work for an elderly neighbor
o Do on-line blogging for pay
o Do on-line surveys for cash
• Begin doing extra tasks at work – take on more responsibility – work a little harder and longer than anyone else – and then ask for a raise.
• Begin looking for a new job that pays more
• Go through the attic and start clearing your clutter – through eBay
• If you can write, sign up on a site like Helilum.com and enter the writing contests
• Put some Google Adwords links on your own web pages
• Teach a class about something you do very well

The most important thing is to immediately set aside all funds generated from these extra activities – and use them to pay down debt. It won’t help you if you increase your spending to match the additional income.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Free Credit Reports – No Scams

There are free credit report offers all over the web. It might be confusing about which one to get. There are also websites stating that some free credit report websites are just scams. They are not scams, they are just vague on how you go about getting your free credit score reports. You have to remember that most websites that offer credit reports do so for a living. Here are the FACTS:

There is only one website where you can get an actual free credit report once a year with no strings attached. This website is http://www.annualcreditreport.com/. This website offers a free credit report once a year only, and the credit report does not provide you with your credit scores. If you want your credit scores, you will need to pay for them with each credit bureau.

Since identity theft is the biggest crime waive since the drug trade, do you think pulling your credit report only once a year is sufficient? Identity theft happens every 60 seconds to someone. So if you feel that getting your credit report once a year is good enough, you might want to reconsider.

The credit report websites that offer a credit report with your credit scores are our recommendation. Typically if they say free credit report, it’s free on a trial basis. The website hopes you will sign up for credit report monitoring. All the major credit bureaus offer the same type of credit report as well. So if you are looking to get your free credit report remember its only free for a trial period. Make sure you read the fine print and understand what the credit report website is selling.

Credit monitoring is a good service to get notified instantly if any strange activity that is taking place on your credit report. So if you are working on what I like to call good credit management and are in the process of pulling a copy of your credit report I would suggest getting a credit reporting monitoring service. This is just good credit management.

You know as well as I do that nothing is for FREE. All these websites are offering a free credit report usually as long as you signup for credit monitoring and other sales offers as well. You can get a copy of your free credit score report, but will need to call back and cancel any services they automatically signed you up for. This also applies to the credit bureau offers too.

Protect you and your family get your free credit reports today.

Author:Mike Clover

CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Two credit scores only Q & A

Q:
Hi Mike,
I have some questions for you about my credit scores. I recently pulled my credit report and noticed I only had two credit scores. One of the credit bureaus said n/a. I currently don’t have any credit cards or any outstanding loans. Most of everything I had went to collections years ago. I am just curious why the other two credit bureaus have credit scores and Equifax does not. Thanks for your help

Susie Jules

A:
Hi Susie,
There are several reasons why you may not have a credit score with Equifax. Based on what you told me it appears that you don’t have any current credit revolving on your credit report. You are stilled getting scored with the other two credit bureaus because of old credit. Some of the creditors may have stopped reporting to Equifax due to no activity. If you want credit scores with all three credit agencies I would recommend opening some new credit cards. Once you have a bout 6 months of good payment history you should have credit scores with each credit bureau. To have better credit scores it would not hurt to have a mix of credit, like auto loans, mortgage loans, and credit cards. All of this is part of the credit scoring process.

Mike Clover
CreditScoreQuick.com

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Your Credit Score Can Show High Debt to Limit Even if Paid In Full Each Month

Many people, especially those who routinely travel on business, use credit cards as an accounting tool. They’re a great way to have all the records of gas purchases, hotels, airline tickets, etc. in one place.

And if your employer is reimbursing you for travel, it’s easy to pay those bills in full each time they arrive, so the balances don’t build from one month to the next. That should show up as no debt at all, right? Wrong.

Companies report on the statement balances, so the only way to avoid having those charges figured into your credit score would be to pay them off each month before the statement was generated.

If you have a credit card with a moderately low limit, and your travel expenses each month bring you near the limit, you could be doing more damage to your credit score than you realize.

One way to avoid this is to ask your employer to furnish you with a card for those expenses he or she reimburses. Then the expenses won’t show up on your credit report at all.

But what if you pay your own expenses? You may be a sole proprietor traveling or entertaining for your own company. In that case, call your credit card company and ask to have your limit increased, so the debt to limit ratio is lowered. Sometimes you can go on line and fill out a quick form to have this arranged – provided you have a good payment history with the card issuer.

But be careful - they may pull a “hard credit report” before granting the increase. As you probably know, the number of inquiries on your account also plays a big role in determining your FICO score. So if you’re about to apply for a loan for a home or a car, you might not want to do this. Call customer service first and ask the procedure.

If you believe they’ll generate an inquiry on your credit, you can instead spread your purchases over several cards, keeping the ratios low on each of them.

Quick credit tip: If you’re going to need credit within the next few months, a quick way to raise your FICO score is to stop using this convenient bookkeeping method. Write a check, or use your debit card for these expenses and let your credit cards go unused for a while.

After you have your new loan, get busy on raising those limits so you can go back to the convenience of using the card.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Piggybacking no Longer Good for Your Credit Score

Piggybacking to raise your credit score is just one more good thing ruined by greed.

Until recently, you could help your kids, siblings, or a friend establish a good credit rating by allowing them to become an authorized user on your credit card. This is, of course, assuming that you carried a low balance and always paid on time, so your own credit was excellent. You were, in effect, sharing your good credit standing with someone you cared for.

The other person didn’t need to use the card at all, but its entire history would be included in their credit report, lending them financial credibility through a positive account.

This was a great tactic to use for kids just beginning their financial lives and without any credit history of their own to fall back on.

But, like so many other good things, someone saw a way to profit from it, and ruined it for everyone else.

Credit repair companies began brokering the rental of authorized user slots on credit cards – for a fee in the range of $600. Before long, the credit bureaus got wind of the practice, deemed it fraudulent, and decided to stop counting authorized user accounts in their reporting.

What can you do instead?

If you’d like to help your child establish credit and you have a few dollars to spare, you can help him or her get a secured credit card. In this instance you deposit a set amount into a savings account in their name, and they use that savings account as security for a credit limit in the same amount.

By carefully using just a fraction of that amount each month, and paying it back promptly, your child (or other loved one) will establish credit in his or her own name. Once they’ve established themselves, the card will be moved to an unsecured status and the security will be released – and can be returned to you with interest.

Note that this is not a pre-paid credit card, and that a pre-paid card offers no benefit. The issuers don’t report to the major credit bureaus, so you could pay on time forever without a boost to your credit score.

Another good option is an unsecured sub prime card. These come with extremely high interest rates, so again, should be used sparingly and paid in full each month.

The two most important things to remember are first, to keep your balances low in relation to the credit you’ve been given – 10% is best, but under 30% is imperative. Second, pay on time, every time.

Author:Mike CloverCreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit and Divorce

Billy Bob and Sue got a divorce. The decree stated that Billy was responsible for certain joint credit card obligations. So Sue went on with her life not worrying about the credit card debt that was awarded to Billy Bob. Six months later Sue gets a call from the creditors wanting their money for the credit cards she forgot about. Sue told the credit card companies that those debts were awarded to her husband in a divorce decree. The creditor stated that they were not involved in the decree and she was still legally obligated to pay the joint accounts. Sue later found out that late payments appeared on her once spotless credit report.

If you are going through a divorce or contemplating on going through one-you might want to take the time to understand credit and the issues that can arrive as a result of a divorce. Most attorneys don’t explain what could happen if the other party does not pay a bill on a account attached to your social security number.

There are two types of credit accounts.
• Joint Accounts
• Individual

If you are getting ready to apply for credit whether it’s a credit card or a mortgage loan you will be asked to state whether the account is joint or individual.


Joint Credit Accounts Your income, financial assets, and credit history - and your spouse's - are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their ex-partner's credit histories on jointly-held accounts.

Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any "authorized" user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.

Advantages/Disadvantages: If you're not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse's income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

With divorce being a common problem these days make sure you get joint accounts that your spouse is responsible for out of your name. If you don’t it could affect you down the road if they decide not to pay the bill.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit Management-I wish someone had told me.

Being a lender I see bad credit management all the time. The amount of credit reports I pull; you would be amazed how many people don’t know how to manage their money. I have come to the conclusion that most Americans don’t know the value of a dollar. I am 35 and know for a fact that my generation has been spoiled to the point of no return. My generation is called the generation X.

The newer generations are even worse. They have never gone with out. There parents just like mine always bought what there kids asked for. This is part of the problem. Our country is extremely rich and we have no idea what it is like to go with out. We have not had rough times since the “Great Depression.” If we want someone these days we just go out and charge it on our credit cards. You cannot turn on TV without someone enticing you with “no payment for 3 years.” Its kind of the “buy now pay later philosophy.”

I honestly think our kids and parents need to get back to the basics. Just because you have the money does not mean your kids need it. Buying your kids everything they want is a bad choice. All this teaches them is they can have just about anything they want.

The problem is once your kids get out on there own they will not know how to manage their money. This is because parents have bought there kids what ever they want most of there young lives.

Once your kids are gone off to college, they will have a rude awaking. Instead of saying no they will buy and get into debt to get what they want.

Most of this education starts at home by saying NO, you don’t need that Xbox. No you don’t need that etc……….

The next step is to have mandatory credit education classes in school and college. These classes should teach young people how to manage there credit, credit cards, money and overall credit report education. They also need to teach the affects of bad credit management and how it will affect your life for 7 years.

If this starts taking place I personally believe that there would be less bankruptcy, less credit card debt, because in the end its just stuff.

Author:Mike Clover

CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Beware of Illegal Credit Repair Scams

When you want to buy a home or a car and your credit score causes would-be creditors to shake their heads and escort you to the door, it’s tempting to respond to those high-volume hucksters on TV who promise to repair your credit.
They all make the same claims:
• “Credit problems? No problem!”
• “We can erase your bad credit — 100% guaranteed.”
• “Create a new credit identity — legally.”
• “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
The truth is, they can do none of that. They can’t erase bankruptcy, judgments, or overdue bills. The only thing they can do is help you get errors removed. Unless everything negative on your report is in error (such as when you’ve been a victim of identity theft), only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

While there are free and low-cost services available to help you, you won’t see them advertising. The only reason a credit repair company spends the money to advertise is to get you as a customer – and to enrich their own bank accounts at your expense – sometimes by many thousands of dollars.

By using them, you’ll only make your financial situation worse by paying them to do something you can easily do yourself. But even worse than losing money is the fact that you could be subject to prosecution if you follow some bad advice. (See items 4 & 5 below.)

If you think you need help removing errors and do decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
1. Companies that want you to pay for credit repair services before they provide any services. (This is a violation of the Credit Repair Organizations Act.)
2. Companies that do not tell you your legal rights and what you can do for yourself for free.
3. Companies that recommend that you not contact a credit reporting company directly.
4. Companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
5. Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
If anything a credit repair company suggests doesn’t feel right to you – just don’t do it.

Mike Clover:
CreditScoreQuick.comYour Resource for free credit score reports, fico scores, loans, credit cards, insurance and identity theft protection and credit repair advice.

Parents! You Must Home School Your Children

No, I don’t mean you need to teach them grammar, math and geography. You can leave those subjects up to the school system and hopefully they’ll learn what they need to know with just a little help from you at homework time.

I’m talking about a subject that will have far more impact on their lives than knowing the capital of Montana, or the proper conjugation of a verb. I’m talking about money management. This is a subject schools should, but don’t address.

Start when your kids are old enough to start asking for a quarter to put in a candy machine. Show them how to budget and save for special toys, and teach them that we all have to make choices, because you can’t spend the same dollar twice.

When they’re a little older, teach them about bank accounts. Get them a savings account and let them make the deposits and watch the balance grow. And while you’re at it, explain to them how that nest egg will benefit them later. But don’t stop there – teach them about checking accounts and the necessity to keep careful accounting.

Show them how money melts away as a result of an overdraft. Once, while working in a grocery store, I met a young woman who hadn’t learned this lesson. At that time, the bank was charging about $20 for each overdraft, and this girl wrote three NSF (non-sufficient funds) checks at our store in just two days. The sad part was, none of those checks was for over $10. So while she thought she was spending about $25, she created an $85 obligation at the bank.

By high school kids should be learning about credit reports and credit scores. Hopefully yours looks good and you won’t be ashamed to show it to them. But if it’s bad you can use the opportunity to show them how that is affecting your life in negative ways.

The first step is to get your free credit report. Then make sure you understand how to read it before you start explaining it to the kids. Show them how every loan and every credit card shows up there as a part of your financial history – and how all those things are combined to give you a credit score. Let them know that while your finances used to be a private matter, now your credit score can be accessed by almost anyone.

Above all, remember to make this education an ongoing process. Help them make sound money management a part of their daily lives so that when they get out on their own, all doors of opportunity will be open to them.

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 , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,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 to Do If You’re a Victim of Identity Theft… Part I

Right after you stop reeling from the shock, it’s time to take action.

You may have learned of the identity theft by examining your credit report and finding inquiries from unfamiliar companies (a sign that someone has applied for credit in your name) or by finding debts or new credit accounts that you don’t recognize.

If instead you learned of it only when debt collectors began to call, get a copy of your report immediately. You’ll need it when you take the next step: Contacting law enforcement.

You must file a formal report, because you’ll need a copy of the report when you contact the credit bureaus and respond to debt collectors. Your police report should include all the fraudulent accounts you identify when examining your credit report.

Contact:
• Your Local Police Department
• FTC.gov/bcp/coline/pubs/credit/affidavit.pdf
• FTC 800-438-4338 or 800-ID THEFT

As you begin this process, keep a detailed log of everything you do, everyone you speak with, and what is said by both parties. Keep track of every expense you incur, as well. Put all receipts in one safe place for easy access later. In your log, make note of the emotional stress and how it is affecting your work and your personal relationships. Depending upon circumstances, your actual expenses and your time loss could be tax-deductible.

Now contact the credit bureaus. Notify one of the credit bureau fraud units that you are a victim of Identity Theft. That Bureau will take responsibility for telling the other two bureaus. (Call Equifax: 800-525-6285; Experian: 888-397-3742; or Trans Union: 800-680-7289) Next:

• Tell the Bureaus to flag your credit report with a fraud alert
• Send a dispute letter, accompanied by the police report and the FTC fraud affidavit specifying which accounts are fraudulent.
• Subscribe to the bureau’s monitoring services
• Consider signing up for Trusted ID services – which will block your credit report so only you can use it.
• Ask the Bureaus to contact the creditors and let them know that fraudulent activities have taken place.

You’ll probably have to deal with debt collectors. Here’s how to handle them:
• Get the collector’s name, company name, address, and phone number – noted in your detailed log. Inform the caller that you are recording this information, along with the date and time.
• Inform the collection agency you ar a victim of Identity Theft
• Provide the FTC uniform fraud affidavit
• Ask for the name and number of the credit issuer they’re representing
• Send the debt collector a letter, stating that you do not owe this debt and that the account is closed.
• Request in writing that the account be flagged as fraudulent and ask that it be removed from your 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, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,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 to Do If You’re a Victim of Identity Theft… Part II

By now you’ve contacted your local law enforcement and the FTC and have the proper documentation in hand to show that you’ve been a victim of identity theft. You’ve notified one of the major credit bureaus, who has in turn notified the other two.

You’ve been diligent about logging every conversation, along with its date and time, and you’ve kept a careful record of every expense associated with reclaiming your own identity.

You’re daydreaming about what you’d like to do to the person who caused you all this grief, but that won’t help. You need to keep a clear head and keep working on putting everything back to rights.

One of the first things you did when you discovered the identity theft was pull your credit report. Now do it again, because more information may have come in since the last report.

Examine it again for new entries, and if you find some, contact the credit bureau again and let them know of the new fraudulent accounts or charges.

If either the first or second report showed new accounts opened in your name, the next step is to contact each of those creditors and do the following:
• Notify each creditor of the identity theft and get the address where you need to send the fraud affidavit.
• Ask the creditor to send you any application that has been made in your name
• Ask to have the account closed and flagged with a fraud alert

If the thief has been using your credit cards, you need to notify the credit card issuers immediately and have those cards cancelled. They’ll issue new cards, with new numbers. Check to make sure that the address and e-mail address in their database is correct, so they don’t just send your new cards to the thief! Of course let them know which charges on your account are fraudulent, and of course note all of these conversations in detail in your log.

If the identity thief has written checks in your name…

• Call your local police and file another report
• Call your bank and close the account
• Get the proper address to send a copy of the police report
• Ask for a refund of monies fraudulently withdrawn
• And of course, carefully record each of these steps in your log

Identity theft costs millions each year, both in money and time loss. It’s a rude and devastating intrusion into your life. But if you take the steps we’ve outlined, you’ll get through it with the least amount of stress.

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 , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,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

Protect Your Credit Score – Avoid These Common Errors

Two of the most common credit mistakes appear at first to be smart moves:

• Closing Credit Card accounts you aren’t using
• Avoiding having any credit cards at all

It doesn’t seem sensible, but it’s true. In order to have a high score, you need to have plenty of credit available – credit that you aren’t using!

The Fair Isaac Corporation’s credit scoring system says that having low credit balances compared to the amount of credit you could be using makes you a good credit risk. This is based on percentages, so if you had $20,000 available and only used $5,000 it would show that you used only 25% of your available credit – but if you closed some accounts and now had only $10,000 available, it would show that you are using 50% of your available credit – and thus lower your FICO score.

Similarly, having no credit cards not only means that you have no ready credit available, but offers no verifiable record of your payment history. Never mind that you’re so careful with money that you either pay cash or go without. That kind of responsibility doesn’t count in the world of credit scoring.

Creditors want to know that you pay your bills on time, so having a couple of credit cards that are in good standing shows your financial reliability.

High Credit Card Balances are the next mistake. According to Fair Isaac, your balance should never be more than 30% of the credit limit on any one card. So avoid the temptation to move all your high interest balances over to a low interest credit card – unless you can do it and still stay under the 30% mark on the low interest card.

Perhaps the most dangerous mistake of all is Co-signing for loans. You do it to help a friend or family member, but that act of kindness can come back to bite you – hard. Not only do you add debt to your credit report, the fact that the person couldn’t get credit without a co-signor means that there’s a good possibility that they aren’t responsible with money – and that before long, late payments will begin to show up on your credit report.

Late payments will drop your score a full 100 points – and that could mean the difference between you being able to qualify for a loan or not. At the very least, it will mean that when you need personal credit, you’ll pay higher interest rates.

Unless you’re co-signing for a child who is living with you and you can not only monitor bill paying, but pay the account yourself if your child doesn’t – just don’t do it. Letting a friend or relative ruin your credit is not a good way to maintain a good relationship.

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 , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,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

Remove collections from credit report Q & A

Q:
Hi Mike,
I disputed my credit report through your site. I had some collections on my credit report that are over 7 years old. My question is how long does it normally take to remove the collection that is incorrect? This collection on my credit report is 9 years old, and is still reporting with Equifax credit bureau. This is very aggravating to me and I feel like the credit bureaus don’t stay on top of this stuff like they should. I just want it removed; I believe it is dragging down my credit score.

Shawn Matters

A:
Hi Shawn,
This is a common issue with the credit bureaus. Yes, if there is a collection reporting on your credit report it is dragging down your credit score. Typically after you dispute the inaccuracy, the credit bureaus will remove it in about 30 days. Make sure you only dispute it once, because if you dispute it twice the credit bureaus will put you back in the 30 day window again from the date of dispute. So in essence it could take 60 days to resolve by disputing it twice.

Mike Clover
CreditScoreQuick.com
Your Resource for free credit score reports, fico scores, loans, credit cards, insurance and identity theft protection and credit repair advice.

Credit Score affected by transferring credit card balances.

You probably never thought that transferring credit card balances from one credit card to another credit card would affect your credit score. It may sound like a good idea to transfer high credit card balances to lower interest rate credit cards banks. In some cases this is a good idea, but it really depends on some circumstances. When your credit score is determined, one of the factors in the credit scoring process is the amount of debt owed. This accounts for 30% of your credit score. I am going to discuss two scenarios, one that will not affect your credit score and one scenario that will.

Scenario One
Let’s assume you have a credit card with a balance of $6,000 on it. The interest rate on this card is killing you and you have found a better deal to pay off the card quicker. The new card has approved you for $7500 credit limit and 0% interest on balance transfers for 18 months. This sounds like a good idea. So you transfer the balance to the new card for the low interest rate.

Here is the problem:
When you owe more than 30% of the allowed credit limit on a credit card, this will drop your credit score. With this scenario you have almost used up all the credit they gave you. This is not wise at all. The balance you owe compared to the approved credit limit it way too high. You have 80% of the card limit already used up. This will affect your credit core

Scenario Two
Let’s assume you have a credit card with a balance of $6000 on it. Plus you just got approved for a credit card with a credit limit of $25,000. They are offe