Archive for the ‘free credit score reports’ Category

Your credit score may just been lowered

Thursday, July 24th, 2008

If your credit score was just lowered, how would you find out? There are so many avenues now to get your credit report it’s actually pretty easy. But what if it actually was lowered to the point that it would really cost you on loans? This is where the constant stream of information is flowing about how important your credit score is these days. A credit score is so powerful these days that it has become the driving force of the lending industry. When it comes right down to it, all of this is the result of money. If someone loans you money and your credit score states you are low risk, then there is a pretty good chance that the bank will not need to worry about you defaulting. But in this article I wanted to discuss some matters that would affect your credit score.

Applying for credit
If you are going out applying for a bunch of credit, this will lower your credit score. The reason is the credit score risk models look at this type of activity in a negative way. The reason is it looks like you are applying for too much new credit which could be a risk to a creditor. The reason it look negative at this is because you could be acquiring too much debt too soon

Late payments
If you were just late on a payment that is with a creditor, you credit score was just destroyed. Late payments will affect your credit rating about 100 points.

High credit card balances
If you just went out and charged up your credit cards above 30% of allowed credit limit, you score just dropped. If you charged over the credit limit your credit score just dropped as well.

Closing credit card accounts
If you just closed one of your credit card accounts you just lowered your credit score. You really should not close out good credit unless there is a really good reason. This type of activity will lower your fico score.

Not enough credit
Maybe your credit score is not increasing because you don’t have a mix of credit on your credit report. You should have a couple credit cards and maybe a auto loan. You credit score is calculated by your mix of credit and your activity with this credit.

These are some quick tips on what could lower your credit score. What out for stuff like this, it will cost you.

About the Author: Mike Clover is the owner of 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

Comparing Bankruptcy to Collections

Thursday, July 24th, 2008

No one wants to run out on a valid debt, but sometimes things happen that make it impossible to make payments. In the best of all worlds, you could go to creditors, explain the situation, and they would let you put off making payments until you got back on your feet.

But while some creditors might be willing to cooperate, given the promise of full payment at a later date, some will not. That leaves you with some tough choices:

• Filing Chapter 7 Bankruptcy
• Filing Chapter 13 Bankruptcy
• Letting your debts go to collection

Prior to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, almost anyone could file Chapter 7 and wipe the slate clean. The bankruptcy put a blot on their credit report and lowered their FICO credit score, but they no longer owed the debt.

Now it’s a bit tougher. If your income is greater than the state median income, your motion to file Chapter 7 will be dismissed and you will have to file Chapter 13. That means you’ll have to repay the debts over time.

A Chapter 7 bankruptcy dissolves all debts that legally qualify for the process – meaning that almost all liabilities are erased. You can’t erase a debt to the IRS – so don’t count on this system to get rid of overdue income taxes.

Chapter 7 filings remain on your credit report for 10 years, so this move is not one to take without due consideration.

Under Chapter 13, you must pay off at least a portion of your debts over time. For 5 years you’ll pay money to a court appointed Trustee, who will disperse the funds to your creditors. This option is usually for people who have a steady income.

Be aware that certain restrictions will apply to your life. You won’t be able to go out and buy a new car, that’s for sure! This stays on your credit report for 7 years.

The third option might be the best in some cases: Letting your debts go to collection.

When your original creditor decides that collecting from you is a lost cause, it will sell your debt to a collection agency for pennies on the dollar. The collection agency will, of course, attempt to get the full balance from you, but you can negotiate a lesser balance agreement. Even when you pay far less than the original debt, the collection agency makes money because they paid so little for the debt.

The future will see fewer people filing Chapter 7, if for no other reason than the income limitations. It should see fewer people overall filing, because of the life restrictions imposed under Chapter 13.

Always pay your debts if you can, but if you can’t, consider letting them go to collection as an alternative to bankruptcy.

Free Credit Reports Without Credit Scores are Only Worth What You Paid

Thursday, July 24th, 2008

You’ll see plenty of companies on line, in the newspapers, on the radio, and on TV who are shouting out offers for their Free Credit Reports. And they are telling the truth – they’ll give you a credit report.

The trouble is, it won’t be worth the paper it’s printed on, because it won’t contain the number you need most to see: your credit score.

The folks who think they need to know all about your financial life will definitely look at the history portrayed in your credit report, but they also want your score. They don’t have the time or the expertise to weigh each segment of your financial history, so they count on the 3 major credit bureaus to tell them about your credit worthiness.

After all, when Bill Fair and Earl Isaac created the FICO scoring system, they’d been studying the statistics for years – figuring out what financial traits marked the difference between a good credit risk and a poor one. No system can predict the future with 100% accuracy, but their system predicts it well enough to cause almost everyone to rely on credit scores generated from it.

Who wants to know about your money management history? Seems like almost everyone:
• Mortgage companies
• Banks
• Car loan companies
• Credit Card Companies
• Credit Unions
• Department stores
• Potential employers
• Potential landlords
• Insurance Companies
• Cell phone companies
• Satellite Television providers
• And even your soon-to-be spouse!

Our finances used to be a private matter, and now almost everyone knows your business!

When you get your free “scoreless” credit report you’ll be able to see what has been reported about you, and you’ll be able to check for mistakes and signs of identity theft, but you still won’t know how a potential creditor views you. And you won’t know if you need to begin taking steps to rebuild poor credit.

But there’s a second reason why you need to know your own score. Sad to say, some potential creditors will ask if you know your score – and use that lack of knowledge against you if you don’t.

If you have a good score and don’t know it, those creditors can fool you into thinking your score is poor, giving them a reason to charge you higher interest. They make millions every year from people who simply don’t realize that they qualify for lower rates.

The good news is, when you request your free credit score reports from Credit Score, you’ll get all you need – including the scores you need to know.

Medical Billing Errors Can Ruin Your Credit

Thursday, July 24th, 2008

You pay plenty for medical insurance and you count on it to pay your medical bills so you don’t have to worry about them should you get hurt or become ill. Once you’ve covered the co-pay you should be home free.

And you should. But unfortunately that’s not the way it works.

All it takes is for a data entry person to code your claim incorrectly, and your insurer will disallow the claim. In other words, the bills won’t be paid.

Unfortunately, the people doing data entry are generally minimum wage workers who are only “putting in their time” and don’t really care if they make errors, as long as they can get through the day and go home. It really doesn’t concern them if your insurer disallows the claim – or if the doctor or hospital ever gets paid.

So, what happens? There you are, doing your best to recover from illness or injury, and these bills keep arriving. The medical field is notorious for sending garbled bills that require some kind of degree to decipher – and they send them in little spurts, so it’s difficult to see if they’re all different, or duplicates. It’s even hard to figure out if you actually got the treatments they’ve itemized, because they have strange names and codes.

So you set them aside, assuming that eventually all the bills will find their way to your insurance company and will be paid.

Then, after several months or even a couple of years, you begin getting collection letters – and you realize that your credit score is in the basement because of bills you assumed had been paid.

Here’s what to do:
• Get the medical claim number from the collection company
• Call your insurance provider and discuss what the problem was
• Get something in writing from the collections company to delete collection from all 3 credit bureaus after you’ve verified there was a code entered incorrectly.
• Once you receive this letter, mail it via certified mail, along with a dispute letter, to each of the credit reporting agencies listed below. Then be patient, because it takes about 30 days to delete misinformation.
• After 60 days, pull your credit report to make sure all 3 credit reporting agencies have removed the collections.

It’s true that certain lenders disregard medical collections – just as some disregard collections from health clubs because of their unethical practices. However, some creditors will look only at the overall score – and those medical collections will definitely lower your FICO score.

The three major credit reporting agencies:
P.O. Box 740256
Atlanta, GA 30374

P.O. Box 9595
Allen, TX 75013

Trans Union
P.O. Box 2000
Chester, PA 19022-2000

Good Credit Saves You Money in More Ways than One

Wednesday, July 23rd, 2008

When you think of needing a good credit score, the first thing that comes to mind is buying a home. Next is buying a car, and third is probably the ability to get a credit card.

It’s true, a good score will help you in all those areas. Not only will it make you eligible for a home, a car, or a new credit card, it will mean that you will be granted a lower interest rate than someone with poor credit. Your buying power will be larger, because less of your money will be drained off to pay interest.

Just think, if you borrow $30,000 for a new car and pay just 1% more interest than your neighbor, you’ll spend an extra $300 per year – $25 per month that you could be using for other things – just on interest. If you pay 2% more, that’s an extra $50 per month. Of course, the lender will probably let you stretch your payments over more years, so your payment might be the same as your neighbors, but you’ll pay it for an extra one, two, or three years.

That doesn’t sound like fun at all, does it?

But that’s not all. Your credit score could mean the difference between having and not having a cell phone, or satellite TV service. It could also mean the difference between an affordable insurance rate and one that makes you want to sell your home and your car just to avoid the premiums.

Not buying a house? Prospective landlords also check credit before deciding if they’ll rent to you. After all, if you’ve got good credit you’re more apt to pay your rent on time. When your credit report shows late payments or defaults, they’ll form the opinion that you don’t care much about paying your bills. So naturally they’ll choose a tenant with good credit over a tenant with bad or even marginal credit.

But that’s still not all. Professional employers check credit before hiring employees. When your credit is good it indicates trustworthiness and responsibility. When it’s poor, the prospective employer suspects that you’re disorganized, irresponsible with money, and just might not be conscientious in caring for the company’s best interests.

This practice is especially prevalent in employment fields tied to financial practices – banks, accounting firms, and treasuries.

The first step you need to take is to learn about your current score. Get a free credit report from an online provider, read it carefully to make sure it has no errors, and then begin working to make it as good as you possibly can.

About the Author: Mike Clover is the owner of 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

Denied for a FHA loan because of Credit Score.

Wednesday, July 23rd, 2008

Getting denied for a mortgage can be humiliating but there is life afterwards. If your credit score is too low because of the current restrictions in the lending industry, I can tell you what you need to do. In this article I will give some tips in regards to better preparing yourself for a mortgage when you credit report may not look too good. With FHA being the most attractive loan in this market, here are some key points lenders are looking for.

• 580 middle credit score
• 12 months clean credit report history
• No foreclosures during the last 3 years
• No Chapter 7 bankruptcies during the last 2 years.
• Must have 2 year work history
• Must have provable income with either two years w2’s or two years tax returns with provable income on Schedule C of tax return.
• Must meet max FHA loan limits in your area. Go here.
• Underwriters look at 24 month credit report history with most infuses on the last 12 months. So make sure your credit report does not look like you have had total disregard for your obligations.
• Good 12 month rental history
• 3 lines of good credit reporting on your credit report for the last 12 months. Alternate lines of credit will work. Example: Letter stating you have been on time with any of your utility bills, car insurance, internet bill, etc…….. for the last 12 months as well.
• Save at least 3% of the amount of house you are buying.

These are some key points to getting a FHA mortgage loan in today’s market. If you credit scores are low, here are some key tips to increase your credit score.

• Make sure you have at least 3 lines of credit reporting on your credit report. These lines of credit should be at least 2 credit cards, and maybe a car note.
• Keep your credit balances below 30% of allowed credit limit
• Don’t be late on anything
• Remove any information that has expired, or is inaccurate.

If you follow this simple process you will be buying a house before you know it. If you don’t know what is on your free credit score report find out today !

About the Author: Mike Clover is the owner of 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

Should you worry about your child’s credit report?

Wednesday, July 23rd, 2008

With identity theft becoming the biggest crime ever, identity thieves have figured who that the young and elderly are easy targets. These two types are easy victims because they typically are not checking there credit and they are not buying anything credit. With this going on it only makes sense to check your child or elderly family members credit reports often.

You have to remember the identity thieves are getting smarter and smarter with whom to go after. After all this is their profession. Current statistics show that less than 33% of the US population checks their credit report, and when they do there may be some unexpected surprises.

With all the banks going out of business banking will never be the same. No one wants to repeat what is currently taking place. So with your credit worthiness being very important, the last thing you want is love one dealing with is bad credit because of identity theft. I would allocate at least 30.00 per quarter to check you child’s or parents credit reports. You can also check their credit report once a year at, just be advised you don’t get your fico scores there. You will need to pay for them. So if you want to know there credit scores with each credit bureaus, you may consider a website that offers a 3-1 credit report with all 3 credit scores.

Having this piece of mind is really worth it. There are lots of skeptical people out there about his whole matter. They don’t do anything until it’s too late. If you are still not convinced check the FTC website. They discuss it everywhere since this problem is on epidemic proportions.

FICO Demystified

Tuesday, July 22nd, 2008

Your lender rattles off the term as if everyone knew exactly what FICO meant. But most of us don’t even know what the letters stand for.
The first part is simple: The Fair Isaac Corporation. Sounds mysterious, doesn’t it? What the heck is a Fair Isaac? Nothing. It just happens to be the names of the men who started the company.
In 1956, engineer Bill fair and Mathematician Earl Isaac joined forces to create what was originally a consulting and decision management service. Then in 1981 they devised a system for scoring the amount of risk associated with making certain loans and investments, and the FICO score was born.
The score is generated by statistically analyzing an individual’s credit history. Among other things, this scoring system takes into account:
· Bill paying history
· Debt to income ratio
· Debt to available credit ratio
· Length of time a person has had and used credit
· Existence of bank accounts
· Number of recent credit inquiries
Each factor in your financial makeup is given a “weight” toward your final score, which is a calculated risk factor, based on the past performance of others whose financial history is similar to yours. Through this score, lenders are shown the statistical likelihood that you will pay your debts. Then they determine under what conditions and at what rate of interest they will lend to you.
If your score is 720 or higher, you’ll have an easy time getting a loan. If your score is under 600, you’ll be considered a poor risk and if you can get a loan, it will be at a higher rate of interest.
FICO has become a giant in the American world of finance. In addition to providing credit scoring, FICO provides consulting and management services to over 200 international retailers, 99 of the top 100 U.S. banks, and over 100 international telecommunications companies.
Headquartered in Minneapolis, Minnesota, FICO has offices on 5 continents, employs over 3,500 people, and turns a revenue of over $800 Million every year. FICO is not associated with the government, but like Equifax, Experian, and TransUnion, is a publicly traded company.
You should always be aware of your credit score, so that you can make adjustments and take steps to keep it high. You can buy the report directly from FICO, or you can take advantage of a credit report offer from one of many online providers.

Does it matter if my Credit Score is 720 or a 740?

Monday, July 21st, 2008

Credit scores are the talk of town now. Obviously the higher your credit score the better. As rule of thumb a credit score around 720 or above is considered excellent credit. Some lenders have there own internal credit score requirements for certain loan types. Some lenders have a minimum credit score requirement to even get approved.

In most cases a 720 middle credit score will get you just about any type of loan. This score will also get you the best rates and terms normally. Some banks might give a little better rate if you credit score is 740 and above. But if your have a 720 fico score I would not sweat it. That type of score is considered low risk to most creditors.

I hear people all the time thinking that if there credit score is in the 800’s they will get a better deal. This is simply not true. Typically if your credit score 720 and above regardless of your score you will get the same rate and terms as someone with a 720 credit score.

I am not saying that having a credit score above a 720 is a bad thing, but just don’t sweat it if your credit score around a 720 or so.

How old should you be before getting credit cards?

Sunday, July 20th, 2008

Surely our credit card companies have learned from extending credit to people in general. Extending credit to adults vs. extending credit to kids is there any difference? I would assume with the way credit reports look these days, there is not much difference. Adults are failing to pay back credit card debt just like our youngsters. Is it because of a lack of education, have we failed in this area? Once you get a credit card whether you are a young adult or older should you charge a vacation on it? Is it ok to buy a TV, stereo, and furniture if they are offering 12 months no payments and no interest on credit? These are some questions being asked everywhere. I think the banking industry missed something by offering got ahead and get now and pay later. If you are young and have not been taught about credit cards you can get in trouble with all these sales pitches real quick.

If you are on your way to college, and get offered student credit cards should you accept them? I personally believe that you need to start building your credit once you hit 17. That does not mean you get full access to your credit cards. Parents need to teach there kids about proper credit card management. If you go out and charge something on your credit cards you need to be prepared to pay it off that month, no exceptions. If you charge something on your credit cards and can’t pay it off that month you are living beyond your means.

With all the changes in how Fair Isaac calculates credit scores now, if you are young and just starting out there are two ways to establish credit.
· Secured Credit Cards
· Student Credit Cards

If you decide to go to college it will be pretty easy to get a student credit card. This is a great way to start the credit building process on your own. If you are not going to college, then secured credit cards is the other option. Secured Credit Cards do require a deposit from you, but it will get the credit building process going for you. Once you have a good 12 month payment history you will start getting all kinds of pre-approved credit card offers. Remember this and don’t forget, “Don’t charge more on your credit card than you can afford to pay off that same month.” If you spend carelessly on your credit cards you will find yourself in debt real quick and debt is like a dark cloud hanging over your head.

I personally believe there needs to be a credit education course in our schools now, to better educate everyone about the consequences of mismanagement of money. Id you don’t learn how to manage your money properly you will find your self either filing bankruptcy or debt consolidation at a early age. These types of situations will ruin your credit reports and credit scores.

Having credit is a fact of life and everyone needs to be aware of the affects of credit card debt.

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.