July 14th, 2008
Everyone’s goal I believe is to have financial freedom. We all are striving to retire someday. There are some steps in life we need to take to get there. In this article I wanted to discuss some very important measures needed to get the security in place for you. There all kinds of caveats like identity theft, your credit scores, interest rates, and terms on loans that could interfere with you saving for the golden years. Learn how to proper manage these items so you can save and avoid pitfalls.
With the internet revolution buying stuff on the internet is pretty simple and secure these days. The access to your personal information may not be secure. There are some steps we need to take during this era so we don’t have issues. Remember the goal is to feel secure with our nice little nest egg.
Step 1: manage your free credit reports
The government has stepped in and required the credit bureaus to provide you with a free credit report once a year. Is this good enough? No, you need to pull your credit report at least every 4 months. That way if someone is using your credit or credit cards, you will find out before it’s too late.
Step 2: Set up credit report monitoring
While you are pulling your credit report make sure you set up credit monitoring. With identity theft being the biggest crime ever, you cannot afford to wonder whether someone is using your credit. There are too many opportunities for identity thieves to get your information. Protect yourself today.
Step 3: Don’t open e-mails you don’t recognize
While you are saving as much as you can the last thing you want is someone to send you an e-mail posing as your bank. If someone sends you an e-mail asking for personal information, immediately delete it. I would recommend installing spam software so you don’t get junk and identity theft e-mails.
Step 4: Manage your creditworthiness
If you implement the steps mentioned, you should be able to get the best rates and terms on loans. This in return will save you money in the long run. Saving money in the long run will allow you to save more money for retirement.
So this proper credit management is really a way of life these days. We have to stay on top of our credit just to make sure that we are not getting ripped of by identity thieves, and to make sure we don’t get charged high interest rates on money borrowed. By implementing all of this you are one step closer to enjoying the golden years.
CreditScoreQuick.com
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July 13th, 2008
When a lender determines your credit risk, yes they pull your credit report along with your credit scores. This is the first step in the qualifying process. There is also other attributes lenders look at as well. In this article I wanted to discuss some other factors that are important in the decision making process with lenders.
Job history
Having good work history is considered stability. If you are someone that jumps from job to job, this could affect the decision process on getting a loan. In some instances good job history could be considered a compensating factor when other areas of your overall credit picture may not look too good. Underwriters also like to see at least 2 years work history to buy a house. If you have gone to college and graduated, and now have full time employment, the time you were in college can be counted as work history with some loan programs.
Rental or Mortgage history
Typically lenders like to see at least 12 month good rental history. This shows you may have the ability to handle a mortgage payment or any other obligation. Some creditors like to see that you also own vs. renting. All of this just shows your ability to handle debt.
Have a checking account or savings.
Creditors also like to see that you have a checking account. This way they can see what you are doing with your money. Lenders like to see that you have the ability to save money. Here are acceptable forms of savings.
· 401k
· Stocks
· Mutual Funds
· Annuity
· Money Markets
· Regular savings account
Savings in the eyes of lenders is a plus. This not only shows that you have the ability to save, but if something comes up you can continue to pay your obligations.
Full time employment
Lenders like to see that you are working full time. They want to see some consistency in the hours you are working. If you are part-time and don’t a history with this employer, they might deny the loan due to lack of work history.
How many dependents
Some government loans take in account how many dependents you have. This could cause you not to get approved depending on your number of dependents and income. This loan is called V.A loans.
How much debt you have
Your income to debt ratio is a big factor in the qualifying process. If you apply for a loan and are overwhelmed with debt, you may not qualify. You should keep your debt as low as possible.
CreditScoreQuick.com
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July 13th, 2008
Current reports show that bankruptcy filings are at an all time high. This is probably due to the fall of the real estate sector, which affects everything. The way the current bankruptcy law is, does it really protect you and is it necessary? I personally don’t think bankruptcy is necessary for individuals. Bankruptcy for one will destroy your credit report and credit scores. There are two types of bankruptcies for individuals, and they are Chapter 7 and Chapter 13. The most common now with the new law in place is Chapter 13. Chapter 13 forces you to pay back a porting of your debts usually over 5 years to a court appointed trustee. With all the creditors currently having records defaults, you would think that some kind of resolution is in order with the actual creditor on your own. This is actually true; you can call and negotiate with your creditors a lesser balance and a payment plan. Plus if you have retirement funds you don’t have to liquidate them. With bankruptcy you do.
Disadvantages of bankruptcy
If you have wracked up a bunch of unsecured debt, you can assure yourself calls all day from creditors if you don’t pay them. Bankruptcy will stop the calls but it does not change the fact that the negative record will be on your credit report for 7 years if it is Chapter 13. If its chapter 7 it will stay on your credit report for 10 years. So depending on what your situation is, I think in most cases bankruptcy is not necessary. If you have found yourself in financial trouble you can call your creditors and negotiate an affordable payment plans on your own. In most cases you can reduce 40 – 60 percent of what you actually owe to credit card companies with a fixed interest rate and low payments. So do you research before you jump into a bankruptcy and pay a bunch of money to an attorney for no good reason.
Advantages of bankruptcy
If you file bankruptcy the phones calls with stop. It will also stop creditors from taking you to court. You have the option under the bankruptcy laws to file every 6 years. Most lawyers will tell you that the bankruptcy laws are in place not to protect you but the creditor. So keep this in mind. If you are able to file chapter 7 bankruptcy, this will liquidate all your debts with no obligation to pay anything back. This chapter bankruptcy is harder to file now due to the income restrictions. So don’t think bankruptcy is the easy way out now, because its not. I personally think the only advantage is it will stop the harassment from creditors.
Just remember you can negotiate with your creditors yourself, and it cost you nothing but your time. You can also get a payment plan in place you can afford. Creditors will typically work with you to determine a budget over a period of time. Remember you owe this debt; the creditor did not rack up the debt for you. The long term affect of bankruptcy is hard on your credit report vs setting up a payment plan with your creditors and getting them to stop the interest.
There are also other options like debt consolidation. This is could be a alternative as well. Look at your options before jumping into anything.
CreditScoreQuick.com
Posted in bankruptcy, debt consolidation, fix bad credit reports free, free credit score reports | 1 Comment »
July 13th, 2008
If you are new to the United States because you just arrived from another country, welcome. In this article I wanted to discuss how you can establish credit as a new citizen of the United States. People from all over the world come to the US to pursue the American dream. Some come here to study and then go back to their country. What every your situation is, as long as you have a social security number I can help you establish credit scores. When arriving to America the first thing you need to do is get your credit established. Here are tips to get this going.
Rental & Utilities
I would hope by now you have a job, so you can show someone that you are paying some sort of rent. Rental is part of the credit building process. Credit Card companies and banks want to see that you are paying rent to someone. This also allows you to get your utilities in your name. Paying your light bill, electric bill, and phone bills are part of the credit building process. Make sure you pay all these bills on-time.
Work History
Make sure you have work history. Obviously if you are applying for some type of credit the creditor wants to see that you are working to pay back any debt owed.
Open a checking account
Having a checking account is a standard question on loan applications. This shows the creditor you might be responsible with you money.
Open a savings account
Having a savings account shows that you have the ability to save incase a emergency should arrive. Most creditors like to see this in place.
Apply for a secured credit card
There is no quicker way to establish credit scores than with a secured credit card. These types of cards require a deposit by you in designated account by the card issuer. Typically the balanced required by you is anywhere between $250 and $350. Once you have secured a credit card, this begins the credit building process on your credit report. Typically I recommend 2 cards to get the credit score building process underway.
Student Credit Cards
If you are here studying you should apply for a student credit card also. This card is much easier to get if you are in college. This card does not require a deposit, but is considered a sub-prime card with higher interest rates. This card is a great way to get your credit established as well.
After six months of paying on a couple credit cards with no late payments you will be scored on your credit report. You might also consider getting a small car loan as well. The credit scoring process likes to see a mix of credit reporting on your credit report. This process mentioned will get your credit underway fairly quickly. Remember to be responsible with your new credit and never be late on anything.
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
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July 12th, 2008
 Everyone is getting concerned about our banking system. I believe it is with good reason. If you are watching the news lately, banks are going out of business all over the map. This is due to the stocks of some of these banks are causing a reduction in the amount of assets they have to fund loans. If you have noticed lately Freddie and Fannie have both lost billions in liquid cash since last December. Most of this liquidity problem is because investors are dumping their stocks with these particular funds.
Freddie and Fannie both are backed by our government. I assure you that the government will not allow these investment bankers to go under. The government if need be will bail them out. Obviously more intense credit score restrictions are around the corner.
The Bush administration recently said that a government take over is not needed. Law makers aim to pass a bill that will keep these companies afloat. So stay tuned to this.
Fannie Mae and Freddie Mac both own or guarantee about half of the $12 Trillion mortgage loans in the United States. If the government steps in the obvious is around the corner. Higher interest rates to curb the appetite of inflation.
It’s apparent that the mortgage industry will be tightening up even more. I personally believe the largest insurer of loans will be the savior during this epic credit crunch. Like I have said before, the Federal Housing Authority (FHA) is and will be the savior for banks that are still willing to provide mortgage paper. FHA was the savior right after the “Great Depression” and will be the savior for the liquidity problem we are currently having. I would not be surprised if our government came out with some new loan products that are aggressive enough to stimulate home ownership. We shall see.
On a positive note, if you are in the market to buy right now, there are some incredible deals on homes all over the U.S.
Just remember to manage your free credit score reports. This is one of those times where you might take a peek at your credit to make sure matters are up to snuff. If you are in the market to buy lenders are tougher on those fico scores. So stay on top of it.
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
Posted in free credit score reports | Comments Off
July 10th, 2008
 There is no doubt the Mortgage Industry has been suffering for the last 2 years. There has been a ton of banks go out of business and people all over the United States loose their jobs. With all the foreclosures and the downturn in the quality of buyers it has been extremely tough to get some home buyers financed. Luckily FHA is our current market, and allows people all over the U.S. to get financed even though their credit scores may be low.
According to, Bernard Markstein the Senior Economist for the “National Home Builders Association the “First Time Home Buyers” market will be taken off in 2009. He is claiming that the increase in homes sales for this market should increase around 700,000 units. This is great news, because the first time home buyers market drives the real estate market. When first time buyers are active this allows people who need bigger homes to upgrade. In return the new home industry starts building again. This is exactly what our economy needs, because this will create more jobs.
So the hope is the First Time Home Buyers will shrink the overwhelming market of homes for sale currently around the U.S. This will allow other families to move on with the purchase of there new homes.
Yes, getting a loan will be a little tougher but with good credit education it’s really not that hard to get a mortgage loan. During the past years it was just too easy to get a loan, but now the lending market is where it needs to be. We definitely don’t want to go through this process of banks going out of business.
My best advice if you are getting ready to make a purchase soon, is to get a copy of your free credit score report and see where you stand. Your credit score is now more important than ever. In order to get good interest rates most banks want to see at least a 620 plus fico score. Once you pull your credit and find you need some credit repair, you can repair you credit for free. Use the web; it can save you time and money.
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
Posted in fico score, free credit score reports | 1 Comment »
July 9th, 2008
Q:
Hi Mike,
I was wondering what the big deal is about closing credit cards. I have 6 credit cards currently. I only use a couple of the cards. The other 4 credit cards I don’t use charge yearly fees to have there credit cards active. So I would like to close them but I don’t want my credit score getting lowered. I currently have excellent credit and don’t want to jeopardize that. What do you guys recommend?
Tina
A:
Hi Tina,
This is kind of tricky one. Everyone in the credit worlds recommends not closing good credit, especially if you are about to make a purchase. This question could have two answers to it. If you are getting ready to make a purchase, then the answer would be no. Wait until after the purchase and then close the credit cards. Yes, your credit score will drop temporarily but with a couple of credit cards reporting on your credit report your scores will be fine over a couple of months. The credit score drop would only be temporary. If you are not about to make a purchase on credit, then I would close them or ask them to stop there yearly fees first.
CreditScoreQuick.com
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July 9th, 2008
Q:
Hello Mike,
I have a son that is 18, and I would like to help him get some credit established. I have read that authorized user accounts don’t help your credit score anymore. Is this true, if so what do you suggest I do to help my son get some credit established? He will be attending college this fall as well, so I know he might be in need of some credit cards for emergencies.
Lina Carter
A:
Hi Linda,
This is a good question. Because of the changes due to fraud in the credit repair industry, the authorized user account credit score process affects those that are really trying to help out a family member. I personally don’t agree with the change, but because someone else was breaking the law, it messed it for those that were not. The quickest way for your son to establish good credit score report is to apply for some secured credit cards. If he is going to be a student he can apply for student credit cards as well. I would recommend getting a couple of these cards, in the works as soon as possible. The secured credit cards depending on his credit will require between $200 and $300 in a bank with the credit card company. Once you son has showed around 6 months activity with the credit bureaus, he should get some credit scores at that time.
Mike Clover
CreditScoreQuick.com
Posted in credit, free credit report, free credit score reports | Comments Off
July 9th, 2008
In this current market and probably for future lending markets lenders will be looking at your credit report very closely . I figured I would provide some quick tips to make no only your credit report and credit scores look better, but you’re over all risk to a lender. In this current market even if you have good credit you could get denied for a loan.
Keeping your debt low
In the past you could have really high income to debt ratio’s and still get approved for loans. All of us in the lending market thought this was crazy, but it was getting done. In a nutshell this amounted to families getting homes that they could not really afford. In this market you better have low credit card debt or debt period. Because the underwritten engines and requirements for general debt is quite a bit lower than it was in years past. So the bottom line is to keep your debt ratios 41% or less. Here is how you calculate this.
Take your gross income and divide it by your total monthly obligations. The total monthly obligations would be only debt that reports to the credit bureaus. For example:
• Credit cards
• Auto loans
• Mortgage loans
• Installment loans
• Student loans
Lenders don’t look at your utility payments or any other obligations that does not report to the 3 credit bureaus typically. So make sure you only count your obligations of credit only.
Save your money
When getting a loan in this current market, lenders like to see that you have the ability to save. When you have savings it makes your risk lower to the bank. A good goal would be to save a minimum of 6 months mortgage payment in the bank. Lenders also like to see stocks and 401k. This is also considered saving as well. The great thing about having savings is if an emergency comes up you have the money to pay your bills so it does not affect your credit report.
Have a mix of credit on credit report
When a creditor looks at your credit report they like to see some type of activity along with a mix of credit. Examples of a mix of credit would be a couple credit cards, installment loans, auto loans, etc…….. The Fair Isaac Score model takes into account the mix of credit yiou have to determine your credit score. So if you are a cash only buyer, charge a little on your credit and pay it off at the end of the month. Creditors have to see what you are doing, and that is why they pull your credit report. So don’t be afraid of credit, at the same time be responsible with it.
CreditScoreQuick.com
Posted in credit, free credit report, free credit score reports | 1 Comment »
July 9th, 2008
Q:
Hello Mike,
I have a question about bankruptcies. I have a bankruptcy on my credit reports, it is a Chapter 13. I have been told different things about how long it will be on my credit report. I have been told it will be on there for 7 years and I have been told it will be on there for 11 years. Which is it?
Lorena Ochoa
A:
Hi Lorena,
A chapter 13 bankruptcy stays on your credit report for 7 years from file date. There are two common bankruptcies filed currently. The two are Chapter 7 and Chapter 13.Chapter 7 bankruptcy will be on your credit report for 10 years from file date. You will need to watch your credit report closely, because its common that the bureaus don’t remove bankruptcies like they should once the expired date has hit.
Mike Clover
CreditScoreQuick.com
Posted in bankruptcy, free credit score reports | Comments Off
Disclaimer: This information has been compiled and provided by CreditScoreQuick.com 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.
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