Partial payment plans can affect your credit score

I look at credit reports too often and find a small problem people run into. The problem is individuals make partial payment arrangements with their creditors with the impression it will not affect their credit report. This is simply not true; the creditor will typically report that payment 30 days late to the credit bureaus. The reason is you are actually late on the remainder balance owed. I am not sure where the information gets crossed but most are under the impression that since they called in to the creditor to make a partial payment arrangement it will not affect their credit at all.

If you find yourself in some kind of financial obstacle you should call your creditors if you are having trouble paying them instead of not calling them at all. Just remember just because you set up a payment arrangement, that does not mean your credit will not be affected by it. When making these types of arrangements ask the creditor and get it in writing that they will not report any 30 day late payments to the credit bureaus. Obviously once you get back on your feet make sure you catch everything back up.

Typically if you are in a partial payment arrangement with a creditor they might report that arrangement to the bureaus. Your credit should not suffer too much as long as they don’t report any late payments. The partial payment arrangement could affect your chances of getting some loans, because it may look as though you are having financial problems. One late payment will drop your credit score around 150 points. Once that damage is done it may take years to recover.

Now it’s better to make a payment arrangement vs. allowing the debt to go to collection if the creditor is willing to work with you and put the agreement in writing.

I hope this information was helpful, and make it a little clearer that just because you have made a partial payment arrangement on a debt does not mean the creditor will not report late payments to the credit bureaus. Before any arrangement make sure you get everything in writing.

CreditScoreQuick.com

Credit Crisis Facts & Home Equity Loans

With credit card companies reducing credit lines on card holders, this might be the best time to tap into the equity of your home for emergency cash. This in my professional opinion only makes sense if you don’t have emergency cash. Ideally like I have discussed in earlier articles you should have at least 6 months worth of income in a liquid account drawing some kind of interest. Now with the economy the way it is, and credit lines being slashed getting a (HELOC) home equity line of credit might be ideal for your circumstances.

Some banks may not be giving this type of loan because of falling house values, but I assure you that someone will loan you the money as long as you have the equity needed to get a HELOC.

With this current lending crunch banks are failing, reducing credit lines and stopping lines of credit on homes. So if you don’t have emergency money for possible hard times down the road I would recommend getting with your local bank or credit union to get a loan in the works.

Also make sure your credit report is where it needs to be. Go to http://www.annualcreditreport.com/ to get a recent free credit report so you are aware of what is on your personal credit report. With this credit crunch the bar has been raised on credit requirements. So the need to be more aware of your creditworthiness is more important than years past, because your credit score requirements I guarantee have dramatically changes over the last 2 years. My point is just because you have good credit, or you think you have good credit does not necessarily mean you can get a loan in this current market. Regardless of your situation make sure you have that emergency money and you are aware of your credit score report.

If you have any questions feel free to e-mail me @ creditguru@creditscorequick.com

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

FHA loans below 580 credit score

If you have a credit score below a 580 it might be extremely hard to get a FHA loan in this current lending market. But there are other options when it comes to getting government loan. Even though FHA will insure loans below a 580 credit score the secondary market that buys and sells mortgage paper has set the stage as to what will be bought and sold in this market.

When loans are bought and sold in the secondary market, investors watch a particular borrower’s performance. If they notice a particular borrower is not performing well on the secondary market they pull the plug on financing that type of risky borrower. So it’s essentially like watching your own stock portfolios performance. If that particular portfolio of yours is not doing well you stop investing your money in that stock. Mortgage loans work the same way.

Over the last 6 to 7 years FHA loans were being written for all types of borrowers including borrowers below a 580 credit score. Until now there was never a credit score requirement for FHA loans. Most banks are requiring a middle credit score of 580. There are exceptions to this rule. Some banks will allow a FHA loan to go through with a credit score below a 580 if the bank or mortgage company gets an automated approval. An automated approval is a piece of software that banks use that either says “yes” or “no”. Let’s assume you have a credit score of 578 and your loan file is ran through this software and it says ‘yes”, as long as that particular lender will allow a credit score below a 578 with a automated approval you are good to go.

Some banks have internal rules for loans they will approve as well. So just because you have a credit score below a 580 does not mean all hope is lost for an approval.

If you have a credit score below a 580 here are some factors that could possibly help to get an automated approval.
• Savings in the bank
• 401k, usually $25,000 or more really helps
• Money for down payment
• Low income to debt ratios

These are some key factors that could possibly get you an automated approval with low credit scores.

If you have recently been denied for a mortgage loan, get a recent copy of your free credit report and start working on your credit. The higher your credit scores the better terms you will get anyways. Bad credit does not go away; it just lingers over your head like a dark cloud. What ever your situation is we can help you get in the right direction.

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

Borrow money from 401k to keep credit good.

Keeping your credit report in good standing these days might be tough for some. With people loosing their jobs all over the country due to the real estate sector and energy costs, you might find yourself tapping your savings to pay bills. Most of us are taught to save at least 6 months worth of savings incase of job loss or some sort of emergency.

Once you have used up your savings account now what? If you have saved money over the years in a 401k it might be better to borrow against it and pay yourself back with interest.

If you have found yourself in financial trouble, going to the bank to get a un-secured loan can be tough and costly. If you have got credit card debt, any financial advisor will tell you to pay off your credit card debt first. The best way to pay off debt or get out of trouble is to borrow it from your 401k and pay yourself back.

Ideally you should save up 6 months worth of income in your interest bearing checking account. This checking account could be a money market, or a high yield checking account. With the market not looking attractive currently, banks are offering decent interest rates to put you money in the bank with them.

Regardless of your situation we all need to save for a rainy day. If you have a 401k or a savings account, it usually better to borrow from yourself than a bank charging high interest.

When that rainy day comes you will have the money to keep your credit score in good standing.

“Remember your credit is your life”

Author: Mike Clover
CreditScoreQuick.com is your on-line resource 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

A Good Credit Score Could be Your Ticket to Riches

Now is the time to order your free credit report – the one that shows your FICO score at each of the 3 major credit bureaus. Get it, study it, and then get busy working to get it all the way to the top.

Why? Because if you’re at all interested in becoming a real estate investor, the coming months will present the opportunity of a lifetime.

After being in real estate sales for 19 years, I can tell you that any time a market has a large number of repossessed properties on the market, you’ll find bargains. To begin with, those REO Officers can’t afford to keep those properties on the books.

In fact, there’s some kind of regulation that requires them to do all in their power to get them sold within just a few months. So in a tough market, when homes are not selling quickly, those properties will continue to drop in price just about monthly.

But that’s not all. When faced with the competition of these lesser-priced repo homes, the others have to follow suit or they’ll sit there unsold. Thus, the entire inventory of homes begins to fall in price.

I saw this happen over and over again, and that was during “normal” times. Now, with one in every 171 homes going into foreclosure during the second quarter of this year, the impact has to be even greater.

You, as a would-be real estate tycoon, stand to profit if your FICO scores are high enough. You can purchase one to live in and that will carry the lowest interest rate. For the others you’ll have to admit that you’re buying rental properties, but with a stellar score, even those rates will be favorable.

Stay away from the luxury homes. Focus instead on homes that can easily be rented to mid-range tenants. If you’re daring, focus on homes for lower income tenants as well. If the homes can be brought up to government standards, you can take part in programs that guarantee your rent and will even pay for repairs if your tenants damage the house.

Of course you should look for homes that are structurally sound and just need new paint and other cosmetic touches. Look past the dirt and the abandoned belongings, and see the profit that can be yours with a bit of hard work and a bucket of sudsy water.

I suppose I shouldn’t assume that repo homes will be dirty – but I listed dozens of them and only 2 had been cleaned when the owners moved out. The others were filthy. I don’t think I’ll ever forget walking into a house and finding a loaf of green bread in the middle of the living room floor.

Learning what’s in your credit report is the first step. The second is to raise your credit score as high as possible, and the third is to keep your eyes wide open for opportunities.


Author: Marte Cliff
CreditScoreQuick.com is your on-line resource 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

Your new car and Your Credit Score

One very good reason to get a copy of your credit report and begin working to get your credit score as high as possible is the difference in interest rates you’ll pay if you need to buy a new car.

Research shows that a borrower with a score under 600 will pay over 18% for a car loan – while a borrower with a score over 720 will pay only 6 5/8%. As you might expect, the difference in the payments is staggering.

Rates for borrowers with scores between those ends pay less interest as their credit scores climb, but the rate doesn’t drop below 10% until you reach a FICO score of 660.

To add insult to injury, insurance companies also charge more if your credit score is low. While there doesn’t seem to be a correlation between credit scores and driving habits, there is a correlation with regard to paying the premiums regularly and on time. Insurance companies like to have their money, so they charge more at the outset, knowing they might not get the full premium.

Rather than use the FICO score in its pure form, insurance companies use a variation called an “insurance score.” This is recently coming under fire and several states are now regulating what information insurance companies can use.

Many states now prohibit insurance companies from using the following information in determining your score, and your rate:
• No credit history
• The number of credit inquiries
• Credit used for medical bills
• The addition of new loans
• The type of credit, debit or charge card used
• The amount of credit held
In other words, it looks like all they’ll really be able to use before long is your actual payment history. To find out the regulations where you live, go to your State’s Department of Insurance website.

Remember that in addition to your credit score, lenders consider the amount of your own money you are investing in a purchase. You’re obviously less of a risk if you’ve made a down payment of 20% than if you’ve gone in with zero down.

Who knows why it took lenders so long to figure out what the rest of us could plainly see – if you have nothing invested in a purchase you have nothing personal to lose, so you’re much more apt to simply walk away if the going gets tough.

So, if you can put together a substantial down payment before making a purchase, you should get much better treatment from the lender. Now might be a good time to take on that part-time job or become a week-end entrepreneur!

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.

Got high credit scores but can’t get a loan.

approved. The reason for this is because lending is altogether a different market now. If you are trying to get a house, you definitely better have good credit, but that’s not all. Lenders are going back to what was called the plain old vanilla loans. In other words there is not much creative financing anymore. Here are some examples.

Stated loans
Stated loans have been loans designed for individuals that are self employed and could not show much income. In a lot of cases self employed people write off as much as they can on there income tax returns. So this type of loan was invented for them. Well IRS is trying to get rid of these loans. I am sure you can imagine why.

No Doc Loans
This type of loan was for the excellent credit borrower. With this loan you did not document anything, no income or work history. You just got a loan based on your excellent credit history. This loan is no longer being provided.

Limited doc loans
These types of loans are loans where you state you income without proof, but you verify your assets. This loan is still around but is difficult to get done, due to there not being a market for the loan. You need at least a 720 plus score to get one of these.

Conventional Loans
Most banks are requiring a 680 credit score just to get in the door with this type of financing. IN the past a 650 was considered a good credit score, but you better have at least a 680 middle credit score to get this type of financing. Plus you will need a minimum of 5% down.

FHA mortgage loans
These types of loans are typically not credit score driving. Now you have to have at least a 580 credit score to get most banks to underwrite your loan. We are starting to see a pattern where the credit score requirement is being raised to 620.

So you can see you may of thought you had good credit scores, but due to the bar being raised by the market, you might have problems especially if you financing needs to be creative.


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.

The Housing Crisis Makes High Credit Scores Imperative

If your credit score is sagging, the sad truth is you probably won’t get a mortgage loan this year, or in the near future.

Lenders are running scared these days, facing huge losses as one in 171 households fell into foreclosure during the second quarter of this year. That’s up 121% from last year – a whopping 739,714 homes in all. And that’s just for the period from April through June of 2008.

And, while the President just signed a bill authorizing the Treasury department to rescue Fannie Mae and Freddie Mac, the original lenders will be taking a hit. The new legislation is aimed at refinancing loans that are in trouble, and giving Fannie Mae and Freddie Mac Federal insurance against future losses, but will require the original lenders to reduce the principal on those loans.

The outcome of this legislation remains to be seen, but taxpayers have a right to be outraged. This law retains the hybrid nature of the mortgage finance giants, which are private companies with publicly traded stock, but which now have an explicit guarantee of help from the government — an arrangement that critics say privatizes the profits but socializes the risk and any losses.

Many believe that the current crisis is the result of aggressive loan programs. When lenders qualified new homeowners based on deceptively low introductory rates, it was a recipe for failure. Some ethical mortgage lenders refused to take part, while others counted their commission checks and laughed all the way to the bank.

As those rates jumped from 1.99% - or even 0.99% - to 6 or 7or even 8 percent, payments doubled, or even tripled. Meanwhile, wages did not.

Add in the current fuel prices, and it’s no wonder that sub-prime borrowers are losing their homes – and no wonder that lenders have suddenly realized that giving credit to people who can’t pay isn’t such a good idea.

What all this means to you – aside from the fact that the national debt level has just been increased by $800 Billion – is that your credit score is more important than ever. If you plan to get a mortgage loan any time in the near future, your best plan is start working to raise that FICO score to the highest possible level.

Step one is to get your free credit report, right here at creditscorequick.com. Read it carefully so you know your starting point, and then get to work on making it as good as it can be.


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.

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.

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.

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.

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.

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

Companies that pull your credit reports

Credit Reports, Credit Reports, “the talk of the century.” I don’t think we can talk enough about credit education and how your credit will affect you with just about everything you do. I wanted to talk about who is looking at your credit score and credit reports. Just about everyone wants to know whether you will pay them back or not. If you have bad credit you can assure yourself that you will be paying more for everything. With the way the economy is currently I would try to figure out ways to save, not spend.

Companies that check your credit report.
• Cable companies
• Insurance companies
• Banks
• Land Lords
• Apartment complexes
• Employers
• Auto lenders
• Electric companies
• Cell Phone companies
• Phone Companies
• Internet Companies
• Hospitals

If you will notice all these of these companies cannot be avoided, they are just a part of our life. Since you cannot avoid your credit reports being exposed make sure you are on top of your credit report and credit scores. Get your free credit score report today.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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

Your credit score may just been lowered

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 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

Is your credit score report affected by today’s Economy?

If your free credit score report has been affected by today’s economy, joined the rest of America. You are not the only one having a reduced income which results in not being able to pay your bills. There are lots of people that get income based on commission or maybe some sort of sales structure. When there is a reduction in consumer spending your income gets reduced. I wanted to discuss some key points on how you can reduce your expenses and make it through this down turn. With all the changes in financing, it will be in your best interest to start working on increasing your credit score as high as you can. So when this economy comes back your creditworthiness is ready for the best rates and terms on any loan.

Here are some tips on reducing your spending in order to save more.

• Get a fuel efficient vehicle
• Cut coupons out of Sunday paper
• Don’t eat out
• Reduce insurance premiums on auto and home
• Use public transportation
• Work overtime if available
• See if refinancing your house is a option to reduce interest and monthly payment
• Refinance your current car to reduce payment
• Get rid of unnecessary spending, like cable, Satellite radio, yard guy, and those unnecessary subscriptions you might be paying for.


When matters are going well we have the tendency to not save for the rainy days. Well guess what the rainy days are here, and the question is how much did you save while the sun was shining? It’s easy to do. This is the type of thought process we all should have because there will come a time of hardship. When tough times come your credit report is affected by all of this. So the lesson is to save your money for rainy days.

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

Denied for a FHA loan because of Credit Score.

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 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

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

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.
If you don’t know what your credit scores are get your free credit score report today

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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

Low Credit Score mortgage loans.

With all the drama in the lending industry, you can still get a mortgage with low credit scores. Yes, credit scores are a big determining factor in whether you will get approved for a mortgage, but your credit scores don’t have to be all that great. The mortgage loan I am talking about is a FHA loan. FHA loans are loans that are insured by the government. For years FHA did not have a credit score requirement, and until now they require a minimum of a 300 credit score. This may sound crazy but that is the lowest credit score they will finance with all the new mortgage insurance guidelines. Nether less, typically when you have credit scores that low you have too many recent issues to get a lender to approve you anyways.

There is a market on Wall Street called the secondary market which the buying of mortgage paper takes place. Typically this paper is sold in bulk called mortgage backed securities. The investors that buy this paper may have their own internal restrictions before buying loans. These restrictions might be far stricter than what FHA requires to insure a FHA mortgage loan.

Currently in today’s market there is a minimum credit score requirement of 580. There is also changes going on within banks where they are requiring a middle credit score of 620. The reason for this requirement is because people who have bought homes below that credit score threshold have a history of foreclosing on their homes. So the investors tighten up on what type of FHA mortgage paper they will buy.

Regardless of whether the credit score requirement is 580 or 620, those types of credit scores are still considered low and a high credit risk according the Fair Isaac’s scoring model. So yes you can still currently get a mortgage down to a middle credit score of 580. You will pay higher interest rates with that score, but you will get a 30 yr fixed mortgage.

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

The Most Important Thing they Didn’t Teach in School…

As new graduates embark into the world of independent living, most are ill prepared to deal with their own finances. It’s a shame that “Money Handling” isn’t a required course in all High Schools and Colleges, because starting off on the right foot can lead to a much more pleasant life than starting off wrong.

When you have a good credit score, lenders see you as a low-risk person. As a result, they’ll offer you lower interest rates, lower minimum payments, less paperwork, and more borrowing options. Poor scores have the opposite effect.

In fact, with a bad credit score you could be denied jobs, car loans, mortgage loans, insurance, or even rental housing. If you can get insurance, with a poor credit score you’re apt to pay rates that run more than twice as high as they would be if your score was good. And if you can get loans, you’ll pay 4 or 5 times as much interest as you would with a good score.

Creating a good financial reputation (credit score) isn’t difficult, but it does require a little discipline. And it does take time, so start early. The longer your record of responsible money management, the easier your life will be.

This means saying “no” to most of the credit card offers that come your way, and working hard never to use over 50% of the credit available to you. It also means paying each of those bills by the due date, and paying a bit more than the minimum payment. Strive to keep your non-mortgage debt down to 15% of your income, even when it means delaying the purchase of a new toy or a classy addition to your wardrobe.

One good way to make sure you pay your bills on time every time is to create a chart that shows each bill and the date it’s due. One caution: don’t assume that the due dates will be the same each month. Read each bill when it comes in and adjust the payment date accordingly.

Budget your payments and adjust your discretionary spending accordingly – so that you’re never in a position to make a late payment. Even if that means skipping Saturday night out.

Next, begin to build your net worth. Check in to automatic savings, deducted from your paycheck before you even see it. Small amounts add up, and they will raise your credit score. In fact, having both a checking and a savings account will earn you a score 4 times higher in that category than having a checking account alone.

If automatic savings aren’t available, discipline yourself to make that deposit from each and every check.

Lastly, be sure to check your credit score often – so if there’s a mistake you can get it corrected quickly!

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

Rental - lease collections Q & A

Q:
Hi Mike,
I have some questions about leases with apartment complexes. My husband and I are in a lease currently that is up in 5 months. We just ran across an opportunity on a house that we cannot let go. The apartment complex will not let us out of our lease; they said we would have to pay almost $7,000 in fees to break the lease. We have excellent credit and fill like this is absurd. I told them they could easily rent it out again. My question is if I let the lease go and not pay the money will it go on our credit report. I don’t want anything to affect our good credit history. My husband and I have credit scores in the 700’s according the lender that has approved us. Any suggesting would be greatly appreciated.

Tanya Riddle

A:
Hi Tanya,
I personally think apartment complexes can be a thorn in your side. But on the flip side they need some kind of commitment from people as well. I do though completely understand your situation. If your break your lease, two things will happen. First the rest of the lease plus fees will be reported on your credit report. Also when you start the loan process the underwriter will need to verify good rental history, usually for 12 months. The apartment complex will state that you are breaking a lease. So my advice would be either pay it off, or finish out your lease. Also in the long run you will pay for it, and so will your good credit scores.
CreditScoreQuick.com

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

How many credit cards do I really need Q & A

Q:
Hi Mike,
I have a dilemma; I am curious how many credit cards we actually need to keep our credit healthy. I have excellent credit currently, my credit scores are all above 720. I have read you need more than one card; I currently have 4 credit cards. I am having to pay fees on some of these cards and would like to stop those fees. I don’t even use those credit cards. What are your recommendations?

Thanks,
Roberta Johnson

A:
Hi Roberta,
Credit cards are one of those necessary evils. “DANG if you do and DANG if you don’t.” Sounds like you already have excellent credit and that is great to hear. You only need a couple of credit cards. If you are getting ready to make a purchase I would not close out the other credit cards that are charging you all the fees. You might call them and see if they will stop the fees. If you are not getting ready to make a purchase I would close them out, just remember you will see a drop in your credit score. Eventually your scores will go back up. If you can deal with the fees, then I would not close them out. Cloisng out credit card accounts is like getting rid of good credit. Since you have other credit cards, the drop in your credit score should be only temporary but your scores will drop. So its really depends on what you are trying to do currently.

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

I only have one Credit Score on my Credit Report Q & A

Q:
Hi mike,
I have a question about why I only have one credit scores. I recently pulled a copy of my free credit score report through you site, and only got one score back from Equifax. I thought you got three credit scores. I don’t have any credit cards and any outstanding loans currently. I do have past history but it has been years. I decided a while back to pay cash for everything. I thought you would have credit scores from past history.

Angela Pickerall


A:
Hi Angela,
We see this quite often. There could be several situations going on here. Without actually seeing your credit report I will gives some scenarios. The first problem I see is you don’t have any new or existing credit reporting. So the current credit scoring models don’t have anything to score you on. The current FICO scoring model likes to see the following to calculate your credit scores with each bureau.

• Payment History
• Amounts owed
• Length of credit history
• New credit
• Types of credit used

All of this goes into factoring your credit score with each credit bureau. Its looks like you are lacking all of this, and this is why you don’t have 3 credit scores. Yes one might be scoring you because a creditor is reporting to that bureau only. This is the second scenario. Some creditors only have contracts with certain credit bureaus. They may not have contracts to report information with all 3.

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

Free Credit Reports inquiry Q & A

Q:
Hi Mike,
I have been reading and hearing when you pull your free credit reports it counts against your credit scores. I was wondering if I pulled my free credit report if my credit score would drop. Its seems to me with all the stuff going on with identity theft and inaccuracies on a credit reports it only makes sense to pull my credit report as often as possible. Any information offered is much appreciated.

George Benson

A:
Hi George,
This is the million dollar question and I hope I win the prize. This is exactly what we are trying to educate consumers on. If you pull your own credit reports on the web, it does not count against you at all. This is considered a soft inquiry, which means it does not faze your credit score. Having someone else pull your credit report for a loan is what could affect your credit scores. This type of credit report is considered a hard pull. Pulling your consumer credit report is considered good credit management and is just a soft pull.

CreditScoreQuick.com

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

Secured Credit Cards: Your way out from between a rock and a hard place.

No credit can sometimes be just as damaging to you as “no-good” credit.

It sounds crazy, and many who have always responsibly paid cash for everything become more than a little angry when told they can’t get a mortgage loan because they have no credit. At least folks who have had bad credit know the reason why they’re having trouble.

The fact is, if you have no credit, lenders have no way to determine if you’re a responsible bill-payer. You have no reputation - no history to offer to show that you do indeed pay your accounts on time. That makes them nervous.

If you find yourself in the position of needing to either build or re-build credit, you’ve probably been told that you must first establish a record of paying debts on time – by getting a line of credit somewhere.

Where? Who is going to give you that line of credit? A company that offers a secured line of credit, that’s who.

In this instance, you offer some kind of collateral or deposit for the amount of credit desired. This gives the lender security in case of default. It could be a deposit into a savings account, a certificate of deposit, or a money market account.

Secured credit cards are a very effective way to build or re-build credit, but there are two things you must consider.

First, use the line of credit, but pay it off on time each month. Don’t use it to go further in debt. The goal here is to show a history of responsible money management. It might be tempting when money is tight to just let the lender take your security – but that will only serve to damage your credit score.

Second, look before you leap. Different lenders have different policies, so investigate each one you’re considering. Read the fine print and ask questions. Make sure you understand the interest rate that will be charged if you don’t pay the balance in full each month. Learn their grace periods, their penalties for late payments, and any other fees that may be associated with your account.

After 6 months to a year of responsible use, many lenders will increase your limit, which will further improve your credit score. When you continue to pay off the balance each month your credit repot will show that you have more credit available than you are using, and you will be seen as a responsible money manager.

Author: Marte Cliff

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

Can you repair your credit report with credit repair companies?

Lately credit repair companies around the country are getting hammered by the FTC and the Better Business Bureau. These companies are claiming that they can increase your credit score and remove collections from your credit report. The funny thing is they charge you up front before any services are rendered. The FTC states that credit repair companies are not suppose to collect money from you until the services have been rendered. This is not what is going on, along with the promises they make to remove stuff that you owe. So the question is what exactly does a credit repair company do? In this article I will discuss the facts and get through all the smoking mirrors that credit repair companies sell.

Can you remove collections?
The answer is you can only remove collections that are not yours by proof and collections that have been on your credit report for more than 7 years. No one can remove a collection on your credit report that you owe, unless it’s been over 7 years. Some collectins report longer, but the standard is 7 years.

Can credit repair companies increase your credit score?
Credit repair companies can help you increase your credit score by requesting you do get a secured credit card. Most credit repair companies will require you to do this if you don’t have any good credit reporting. It was not the credit repair company that increased your credit score; it was the new secured credit card that starting reporting on your credit.

Can credit repair companies remove bankruptcies, judgments, and tax liens?
Credit repair companies cannot remove any of this, unless the bankruptcy has expired. Depending on what type of bankruptcy it was, it could be on your credit report up to 10 years. Judgments will stay on your credit report for 7 years from date of entry. Tax liens can remain on your credit report until paid.

By disputing collections you owe, does it remove them?
If you dispute a collection you owe, you are wasting your time. You are to only dispute inaccuracies on your credit report, disputing items you owe does nothing for you.

So the question is what exactly does credit repair companies do? I believe most of them are in business to just take your money. Some of these companies do provide good credit repair education, but if they tell you they can remove stuff you owe, they are lying to you. I have yet to meet someone that has gone to a so called credit repair company and have had success in getting there credit repaired. If you have credit issues on your credit report, you can repair your credit for free. The how to repair your own credit involves money management and the establishment of new credit if you have none. How to do this for free is on the web. You can go to the FTC and also our site blog as well.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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

Credit Score affected by Foreclosure Q & A

Q:
Is there a difference with respect to a credit score between a house going into foreclosure and a house actually being foreclosed upon? The situation is this. House goes into default and is scheduled for foreclosure sale. Is one's credit going to be damaged worse if the foreclosure sale occurs? Will one's credit be better if they are able to pay off the entire loan without incurring additional debt prior to the bank redeeming the property at the foreclosure sale? I realize that there is a negative impact because of the late payments and the foreclosure process being commenced, is that as bad as it gets or does further negative impact result after the redemption? Stated another way, does paying the entire balance off prior to the foreclosure and redemption by the bank improve one's credit in any way, or at least prevent it from getting worse?

Thank you for your help.

Todd S. Rayan

A:
Hi Todd,
This is a great question. Once you start being late on a mortgage payment the damage is already done to your credit score. I have not seen a difference in credit scores whether you foreclose or if a possible sale takes place before an actual foreclosure. But your creditworthiness to get future mortgage loans is affected if the home actually forecloses. If your home forecloses it will be a minimum of 3 years from foreclosure date before you can buy again. If foreclosure proceedings have started, in the eyes of some lenders this is considered a foreclosure anyways. HUD also says that if foreclosure proceedings have started and you have 120 mortgage late payments on your credit report, it’s counted as a foreclosure. In my professional opinion its better to sell before you foreclose on your home. It just looks better. It does not really matter which happens as far as your credit score is concerned because the damage is already done due to all the late payments.

CreditScoreQuick.com

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

Errors could be killing your credit!

Do you know how easy it is to type a wrong letter or number? Do you know that people doing data entry at huge corporations aren’t as interested in working error-free as you might wish they were? The combination can be deadly to your credit.

That’s why, when you get your credit report, you must take the time to read and understand each entry. Your report could include accounts you’ve never had, accounts you’ve paid in full, and old information that should have been removed. All of these errors can and will affect your credit score.

Certain kinds of information should be removed after 7 years – this includes lawsuits, judgments, paid tax liens, accounts dispatched for collection, late payments, and even child support. And yet, even though this information should have automatically fallen from your record, it doesn’t always happen. You need to take responsibility for knowing what’s on your report, and getting it changed if it’s wrong.

Be sure to check your Social Security number, your name, address, phone number, and information concerning your occupation. Errors here could signal identity theft, or could just be errors. But the last thing you want on your credit report is someone else’s debt, just because their Social Security number is one digit different from your own (and incorrectly entered as yours) or because they share your name.

Correcting errors and removing outdated information can have an immediate and positive impact on your credit score. And since that can have a huge impact on the interest rates you pay, it’s well worth your time to get it corrected.

You simply fill out a request for reinvestigation, or write a letter to the credit reporting agency that listed the incorrect information. As carefully and accurately as possible, list every inaccurate piece of data and describe why it is incorrect. Do the same with each outdated item.

Don’t be rude or blame the credit reporting agency – they only report on information given to them by your creditors. So even while a data entry error may be theirs, you’ll gain faster, more cheerful cooperation when you’re simply factual. Once they receive your request, they’ll investigate the items you listed and contact you within 30 days to notify you of changes. If you’re in a hurry to qualify for a loan, the process can be expedited through a “Rapid Rescore.”

Credit scores are re-figured every 30 days, so be sure to check your reports each time they come in. Catching an error immediately could save you weeks of hassle and untold dollars if that error signals a case of identity theft!

Author: Marte Cliff
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

Your Credit Score = Your Financial Reputation

Everything you do in life adds to your reputation – and your finances are no exception. The difference is, instead of word of mouth among your peers and business contacts, your credit score is recorded in black and white for any potential creditor, landlord, employer, or insurer to access.

That’s why it’s important to protect it, and to keep it accurate.

Your credit score tells everyone how you’ve handled your finances for at least the past 7 years. The better you’ve done with paying bills on time, and the lower your debt level in relationship to your income, the better score you’ll have.

The better score you have, the better for you when you want to borrow money. Higher scores get you lower interest rates, longer pay-off periods, lower fees, and less paperwork when attempting to get a loan.

Low scoring applicants are often rejected completely, or offered high interest rates, high minimum payments, and more fees. Why? Because they’re considered a poor risk. Creditors get all they can up front because they know that a person with a low score is more apt to default on the loan.

What’s a good score? Scores range from a low of 300 to a high of 900. 650 or higher is a good score and will usually earn you the best terms when applying for a loan. 620-650 is still considered “pretty good” and indicates a few minor problems with your credit history. You’ll get a little higher interest, but not too bad. Scoring under 620 puts you into the risk category, and the lower it gets, the bigger the risk. You may still get a loan, but don’t count on it.

Things that affect your credit score are:
• Your payment history
• Debt to income ratio
• Debt relative to credit card limits
• A long history of revolving debt
• Credit inquiries

That last one is something you can and should control immediately. If you’re shopping for a new car, for instance, do not let every car dealer run your credit. Refuse to discuss the financing and do not hand over your Social Security number until you’ve chosen the car you want and come to an agreement on the price. Ditto for furniture stores, appliance stores, etc.

Additionally, don’t respond to every credit card offer that comes in the mail. It might be fun to have a wallet full of cards you’ve never even used – just in case. But they will come back to bite you. Multiple inquires indicate that you are about to start spending way over your head – and that’s a red flag that can and will lower your score.

Author: Marte Cliff
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

5 Sure signs you’re living beyond your means

According the US Bureau of Economic analysis, the savings rate of common households have not been this low since the “great depression.” This is a sure sign many Americans are living beyond there means. If a emergency comes up like a loss of job or illness they will be a financial blow to them due to a lack of savings.

If you are worried about your financial situation there is no better time than now to start evaluating your situation. In this article we are going to discuss some telltale signs of living beyond your means.

Sign 1: Your credit score is below 600.
The credit bureaus keep track of your payment history to your creditors. This information is used to generate your credit score also know as fico scores. Credit scores typically range between 300 and 850. The higher your credit score the better terms on loans you get. Typically when your credit score is below 600 you are living beyond your means.

Sign 2: Your credit card balances are increasing
If you are only paying the minimum payment on your credit card balances then you are more than likely living beyond your means. You really should not charge more on a credit card than you can afford to pay off that same month. If you are charging more on a card than you can pay off soon, then you are living beyond your means.

Sign 3: You are saving less than 5% of you earnings
If you are saving less than 5 % you are in danger of having financial problems if someone in you family has a medical emergency. According to the Bureau of Economic Analysis the saving rate starting in 2005 until now has not been the low since 1933. This was during the great depression.

Sign 4: Your bills are getting out of control
Buying stuff on credit has become America’s favorite pastime. Once you rack up a bunch of credit card because you bought a new TV, furniture, stereos, etc….., you may find yourself in trouble. All of this debt adds up quick and bankruptcy could be on the horizon.

Sign 5: More than 32% of your income goes to your house payment
Most lenders like to see your payment to income around this percentage. Some like to see it around 28%, but this percentage is real conservative.

Bottom-line is tour country is in trouble with debt. If you see a problem the best thing to do is recognize there is a problem first. The second step is to stop spending and pay off your debt. If you charge on credit pay it off that month. Stay on top of your credit health and don’t live beyond your means.

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

Is Freddie Mac and Fannie Mae going under?

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

Understanding your spending habits can be rewarding

During this day and time credit cards can have two affects on your credit score reports. If you don’t have credit cards it can affect your credit score in a negative way. If you have credit cards and charge over 30% of the allowed credit limit this will affect your credit score in a negative way as well. Credit cards are part of the credit scoring process. You have to have them in order to have good scores. Part of the FICO score model looks at your mix of credit. Part of the mix factor is having credit cards revolving on your credit report. Credit cards are part of the credit building process. You have to have them, but need to be responsible with them. Here are some advantages of some credit cards.

0% offers
Some department stores will offer you 0% or low interest to buy there products. If you pay off the debt owed in during the allotted time to maintain that interest, this is like borrowing money for free.

Cash Back
This is a interesting offer with the credit card companies. Some card companies will give you back 1% on all purchases. So if you spend $100.00 they will give you back $1.00. Some credit card companies will give you discounts on items purchased. So the idea is for you to spend money, but if you manage your money correctly it can be rewarding for you.

These are some tips on how credit cards can be rewarding, just make sure you pay off the card so you don’t get high interest rate charges.

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

Closing credit cards Q & A

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.

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

Why all free credit reports are not the same.

I am sure you have heard you can get your free credit report once a year. Yes, you can get your credit report once a year for free but you don’t get your credit scores with each credit bureau for free. Some websites offer a credit report but they don’t give you everything you really need in a 3-1 credit report. In this article I am going to explain some of the different offers out there and what critical information they are missing.

Free Credit Reports offers
There is only one website that offers free credit reports once a year. www.annualcreditreport.com is that site. You get this credit report from each credit bureau once a year for free. You don’t get your credit scores though from each bureau. There are other sites that will provide you with a 3-1 credit report with credit score from each credit bureau on a trial basis. Typically the trial credit reports are between 7 to 14 days.

Credit reports with one credit score
Some website will offer a free trial credit report with only one credit score. This is another situation where you are only getting part of what you need. I suggest you get a credit score from each credit bureau since that is what creditors look at. Each credit bureau calculates its own credit score. When a creditor pulls your credit report they will pull it from each credit bureau with scores as well.

Credit Reports with credit monitoring
This credit report offer usually comes with a credit report from each credit bureau, but again with no credit scores. You will get credit monitoring with the service, but still this credit report offer is missing critical information as well.

Credit Reports with FICO score
Equifax offers a credit report offer where you will get your real FICO score and that is it. You don’t get your FICO score from the other two credit bureaus. So the positive thing is you get your actually FICO score the banks use, but you don’t get it from the other two credit bureaus.

3-1 Credit Report with all 3 credit scores
This credit report offer is my credit report of choice. The reason is you get a idea of where your credit scores and credit information stands with all 3 major Bureaus. When lenders assess your risk they look at a credit report similar to a 3-1 credit report with a score from each credit bureau. Do you research before you get a credit report, yiou might be getting what you don’t need.

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

Make your credit report look low risk to creditors

In this current market and probably for future lending markets lenders will be looking at your credit score report a lot harder. I figured I would have 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.

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

Avoid a low Credit Score.

With your Credit Score being the doorway to financial health I thought I would give some tips on what to avoid so your credit score is not affected. If your credit score is currently low I guarantee that you are paying too much to your creditors. Any business that is in business for profit is looking for a reason to make money. If a creditor knows your credit scores are low they will charge you for it. The reason is because they can. Here is what to avoid so your creditworthiness is not affected.

Late Payments
This is one credit dink I see all the time. If you are late on a obligation that reports to the credit bureaus I assure you that your score will drop around 75 to 100 points. Timely payments account for 35% of your overall FICO score. This particular factor in your credit score is the biggest factor of all.

Amounted Owed
If you have credit card debt, and the balanced owed vs. the allowed credit limit is more than 30%, your score is affected. The amount owed accounts for 30% of your overall FICO score. You should keep your credit debt well below 30% of the allowed credit limit.

Length of Credit History
Once you are granted some credit the FICO score model looks at how long you have been in good standing with your credit. If you have a good history with your creditors, you can count on it helping your overall credit health. The length of your credit history accounts for 15% of your score.

Mix of Credit
Mix of credit accounts for 10% of your FICO score according to Fair Isaac. So you need credit cards, installment loans, auto loans, department store credit, etc…… The rule of thumb is to have at least 3 to 4 lines of different types of credit to get the best overall score.

New Credit
New credit accounts for 10% of your FICO score. The FICO score model does not like to see you applying for too much credit. Too many hard credit inquiries will affect your credit score. The rule of thumb is around 3 to 4 different types of credit.

Identity Theft & Credit Monitoring
Make sure you are pulling a copy of your free credit report regularly. With the identity theft problem it is recommended to set up some type of credit monitoring with immediate alerts. So if something happens you will know about it quickly.

Co-Signing
Co-signing is a big problem as well. We don’t recommend co-signing for anyone. If a family member or friend does not have the credit to buy, the best thing they can do to get credit established is to get a couple of secured credit cards. This is the fastest way to improved credit health. With a little history, usually 12 months of good payment history the creditors will open the doors of credit.

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

Paying off Collections Q & A

Q:
Hello Mike,
I have some questions about collections. I have not pulled my free credit report yet, but I know that I have collections on there. I have had some financial problems in the past due to medical issues. I have read that you should not pay off your collections; it will drop your credit score. The collections I have are about 2 years old. Do you recommend I pay them off, or leave them be? I plan on buying a home within the next year or so.

Leslie Lerner
Denver, Colorado

A:
Hi Leslie,
This is a great question. Collections can be tricky; usually credit repair companies will tell you not to pay off collections. The reason for this is they are obviously in sales, would be my opinion. I have helped people get there credit scores up for years so I could finance them, by having them pay off the most recent collections. When you pay off collections on a credit report it could go two ways. Your credit scores could temporally drop, but most of the time your credit scores will increase. For long term credit repair I recommend always to pay off collections. It is important to ask the collection agency to give you a letter to delete from all 3 credit bureaus. This will remove the collection from your credit record as if it were never there. Some collection agencies will only give you a letter showing paid or settled. It does not hurt to ask though, because sometimes they will give you a letter to delete the history from the credit bureaus.

Mike Clover
CreditScoreQuick.com

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

When should you check your credit score report?

There is a lot of debate out there on when you should check your free credit score report. I am sure you have read that you can get your credit report for FREE at www.annualcreditreport.com. Yes you can, but you get it once a year for free with no credit scores. It is worth paying around $29.95 to get your credit scores along with your credit report. The reason is when lenders make there decision process your scores are part of that process. In the current credit report market you can get your free credit reports with scores on a trial period. So if you are getting ready to make a purchase or have been turned down for some reason, you should pull a recent copy of your credit report with credit scores from each credit bureau. Here is a list of triggers to pull a recent copy of your free credit reports with scores.

• Been recently denied for a credit
• Suspect someone is using your identity
• Suspect a creditor may have reported some late payments incorrectly
• Need to fix your credit report
• About to make a big purchase
• Want to know your credit scores

Even if you don’t have any of the triggers mentioned above you should pull your credit report every 3 to 4 months for good credit management. You never know if someone is messing up your good name. With the new digital age and access to personal information your social security number is floating around everywhere. Typically someone that gets your social security number is an insider at a company that has personal information on file. With the amount of foreign nationals coming to this country your social security number is a hot item on the black market. It is also a hot item with Illegal Aliens. Identity Theft recently has became officially the biggest crime waive in American History. With all of this being said staying on top of your free credit score report is a must. Once something negative has happened to your credit it could irreversible for 7 years. The only thing you can do to fix the problem is get it removed if it’s not your fault. My point being once your scores drop it takes time to regain what the mistake caused.






If you are confused on what type of credit report to get, you might consider a site that offers multiple credit report offers. When you pull your credit report you definitely want a 3-1 credit report with scores from each credit bureau. Some websites offers only give you a 3-1 credit report with one score. You really need all 3 scores. Some sites offer a credit report with no scores. So my point is you need the right credit report if you are going to pay for 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

Medical Collections Q & A

Q:
Hi I have some medical collections on my credit report and was wondering if this will affect me getting a car loan. I have not pulled my credit report yet so I am not sure what my scores are, but know the debt I owe is around $2500 for a surgery I had. What type of credit scores are auto lenders looking for? What is considered a good credit score for auto loans?

James





A:
Hi James,
I am not sure if your medical collection was the result of the hospital not coding something correctly so your insurance would pay. I do know that this is a common problem if you have insurance. The insurance claim was coded wrong; therefore the insurance company would not pay. If this is not the case, yes any collection hurts your credit report. This negative mark on your credit report reports every 30 days. My suggestion would be to settle on it, so the balanced owed goes away. Typically car dealerships are able to get low credit scores financed, but you will pay for it. To get the best rates you typically need a credit score of 660 or above.


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

Landlord and Renters Credit Reports

Being a landlord is a full time job, and you definitely don’t need any added stress for a renter that does not pay their rent. With the influx of renters, every landlord needs a way to check a renter’s credit report. Also if you are a renter and want to show up to a landlords office with a recent copy of your credit report, its very simple to get your 3-1 credit report with scores currently with the internet revolution. With the economy and families loosing their homes, more and more families will be renting over the next 4 to 5 years. With the banks making lending guidelines extremely tough, you can rest assure if you are a landlord getting a renter will not be too hard in this current market. You obviously need to protect your self by looking into a renter’s credit history.

What to look out for on a renters credit report

Just like a bank that lends money, a landlord needs to be able to look at a consumer credit report and determine their risk. Typically a bank will look at the entire credit history to examine the risk of someone that is borrowing money from them. If a credit report shows a history of bad credit management that individual is less likely to get a loan. The same principal should apply to a renter. If you pull a credit report of a potential renter and it looks as if that person has a total disregard for obligations you might reconsider renting to them. The bottom line is a credit report will protect you the Landlord. If you are a renter and are unsure of your credit history, you definitely need to pull a copy of your credit report so you can rent. If there is something on your credit report you will be able to fix it before a landlord tells you NO.

What is considered a risky renter?
If a renter has more than a 24 month history of not paying back their obligations, then how are they going to pay you? Typically a lender will look at the last 24 months with most of their decision making on the current past 12 months credit history. If a renter just does not pay anybody back you might look for a better candidate for renting your properties. Once you get renter in there it can be tough to get them out.

What is considered a good credit score?
FICO’s credit scores range from 300 to 850. The lower someone’s credit score, the higher risk they are. Now you also have to look at their entire credit history as well. With the Sub-prime ARM adjustments that are causing families to loose there homes, these might be good candidates for renting too. It’s not like they had any choice but to walk away from a home that the payment increased on dramatically. But as far as a good credit score you might be looking for credit scores in the 600’s before considering renting to someone, unless their circumstance were beyond their control.

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.

How a Co-signer can affect your Credit Report

Do you want your credit score to plummet, go ahead and co-sign for someone. I personally believe this is a huge problem. With your credit score and credit report being the roadmap to financial health, the question is can you really afford to co-sign for friends and family. Over the years I have seen more problems with this issue. Here is how a co-signer can affect your personal credit.

Late Payments
If you co-sign for a family member your credit report could be at risk. If for some reason the family member is late on an obligation you co-signed for your credit score just dropped about 100 points. Most people don’t thing about this, but it happens all the time. Anytime someone is late on a obligation that reports to all 3 credit bureaus, that bad mark will be on there for 7 years. It’s not worth it. If you have to co-sign for someone make sure you are not getting ready to make a big purchase, because it could affect your purchasing power as well. Some banks like to see a payment history in good standing usually around 12 months on co-signed obligations. They also typically like to see proof that the payment is coming out of the person’s bank account you co-signed for. So co-signing opens up all kinds of worms in the world of finance.

Income to Debt Ratio
Once you have co-signed on a loan for a friend or family member it could affect your ability to get a loan for something else. That added debt that is showing up on your credit report is technically your responsibility as well. Let’s assume you have this car note you co-signed for and the payment is $500.00 a month. You have now added this debt to your portfolio of debts in a underwriters eyes. In order to buy something else an underwriter may require a good 12 month payment history by the other party to disallow a debt from your portfolio of obligations. So with this being said think real hard before you co-sign on anything. I don’t recommend it. There are ways for someone to get there credit established so they can get loans in there own name. The internet is a great resource. There is anything you can imagine on the web to help you achieve just about anything, including getting your own credit established so you don’t need a co-signer.

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.

Closed credit card accounts Q & A

Q:
Hi Mike,
I have closed 2 credit cards that I have not used in years. I have 3 other credit cards that I use with lower interest rates and fees. That is the reason I closed them. I was reading through some of your articles and noticed you recommended not closing out credit cards. How much do you think this will affect my credit score? I currently have excellent credit and hope I did not mess up my credit score.

Marcus

A:
Hi Marcus,
Yes I am against closing out good credit reporting on your credit report. This does affect your credit scores, because you just got rid of good credit. Typically you will see around a 10 to 15 point drop in your credit scores. Since you have other credit cards this should be temporary. Just make sure you keep your credit card balances below 30% of credit limit. My FICO recommends a mix of credit as well. For instance credit cards, car loans, installment loans, etc…….Good luck to you.

Mike Clover

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.

Free credit score and credit monitoring with TransUnion

TransUnion now has their class action lawsuit website finally running. If you are interested in getting your credit score report and credit monitoring go to ListClassAction.com. You can sign up for 6- 9 months of this service for free.

Anyone who has opened up new credit or a loan in the last 21 years is entitled to this free service. You must register before September to qualify. You need to know that you only get one credit score and you don’t actually get your true FICO score that most banks use to determine your creditworthiness. So is this service beneficial, well its like having part of the recipe, you will get your activity with one bureau, and you don’t actually get your real credit score. You will get TransUnions TransRisk credit score. If you want to get your FICO score go here.

So if you are getting ready to make a purchase like a car, house, or a credit card this service could be beneficial due to the fact that you get your credit report with TransUnion. If you are interested in getting a 3-1 credit report with all 3 credit scores you will have to pay for it. Our recommendation is to get this type of credit report because that is what lenders look at. Regardless it will not hurt to get this free service temporally with TransUnion.

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.

FHA implements Credit Score based MIP

With all the changes in the lending industry, you would think that no one can get a loan anymore. Conventional loans have gotten so tough most are going with FHA loans now. FHA has been the savior in a lot of crazy lending markets. With the current credit crunch and record foreclosures, FHA is now implementing risk based mortgage insurance premiums (MIP). This fee insures the loan with HUD. So just like anything else, if your credit score is low you will pay for it. In the past your credit score did not matter, but now it does. The way MIP worked in the past was everyone paid a 1.5% of the total loan amount in insurance. This upfront fee was financed in the note. The new mortgage insurance premium will range between (1.25% - 2.25%). So for borrowers with low credit scores you will now pay .75% more in premium. For borrowers with good credit they will save .25% in premium.

Examples:

Good Credit
• Sales Price: $100,000
• Down payment: $2,250
• Loan amount with MIP @ 1.25%: $98,971

Bad Credit
• Sales Price: $100,000
• Down payment: $2,250
• Loan amount with MIP @ 2.25%: $99,949



Depending on what your FICO score is, will determine how much you pay. You can see if your credit score is low, you will be financing more which will increase your payment as well. I believe this is just a tip of the ice berg with the changes in all sectors of lending. If you are getting ready to buy a home, you might consider pulling a recent copy of your credit report with scores to see where you stand. If you don’t want to pay more and feel that your have low credit scores, go ahead and take the plunge. Get your credit report and start working on any issues you may have. If you don’t fix your credit it will cost you unnecessary money long term. FHA is still the strongest loan in our current market, but with credit issues you will pay more for it. I have never seen such tightening up in the lending market like we currently are experiencing. I can’t say I don’t blame the banks, because everyone want there money back they have loaned out. I guess you would have to put yourself in their shoes, how would you feel if you loaned someone $100,000 and they did not pay it back to you?



Multiple FHA borrowers
With this new FHA change that was implemented on July 11, 2008 here is how this affects multiple borrowers. If two borrowers are involved on a FHA loan, the MIP will be based on the borrower with the lower credit score. So you could have one borrower with excellent credit, but have a borrower with low credit score that would cause a higher mortgage insurance premium for the entire loan.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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.

Tax Lien Q & A

Q:

I have a tax lien on my credit report from 1998. This tax lien was due to taxes on a 1099 job I had for 2 years. I did not pay the amount owed for the year of 1997. The IRS filed a tax lien for $12,000. My attorney said it should drop off after seven years. Well 7 years was a while back. What am I missing here? I have been told this tax lien will affect my credit score as well. I want to resolve this matter as quick as possible. I am getting ready to sell my home and purchase another home.

Jim

A:
Determining when collections are going to come off your credit report might seem simple, but there are some types of credit report activity that does not apply to the 7 year rule. Tax liens are one of those debts owed that will not go away until you pay it. The Fair Credit Reporting ACT has different rules for this type of debt owed. Here are the facts.




• Unpaid Tax Liens- there is not a set expiration date for unpaid tax liens according to the FCRA. So tax liens will stay on your credit report until you pay it. Some credit bureaus cap how long they report records like tax liens for up to 15 years. So if a tax lien has been reporting for over 15 years, you might consider disputing to see if the bureaus will remove.

• Paid Tax Liens – Once a tax lien is paid off, the tax lien will report on your credit report for 7 years from paid date. Tax liens are the only record where the expiration date is tied to repayment.

Jim you do have a chance of getting this record off by disputing it. There is no guarantee it will com off though. You will more than likely have to pay the debt off. You can use our how to dispute process here.

Mike Clover

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.

Increase credit score Q & A

Q:
Hello,
I need some advice on increasing my credit score. I currently have a 640 credit score. My goal is to get my score around a 720 or above. I currently have a credit card with Bank of America, and a credit card with American Express. I also have a car note around 350 a month.
Credit Card Balances and limits

• Bank of America limit is $10,000
• Bank of America balance is $7,500
• American Express limit is $15,000
• American Express balance is $9,852

I just recently bought my car 6 months ago. I paid $17,000 for the car. What do you recommend I do to get my scores around 720 or above. I dont have any collections or slow pays.

Robyn Leather

A:
Hi Robyn,
Credit card debt is one of the quickest ways to lower your credit scores. Amounts owed on credit is 30% of your credit score. The rule of thumb is to keep your credit card balances well below 30% of your allowed credit limit. It looks like your Bank of America credit card is well above 30% of the allowed credit limit. I would pay this card down as quick as possible. You should not have more than $3000 on this card at any given time. This is one reason why your credit score is low. Your American Express card has the same issue going on. You should not charge more than $4500 on this card as well. Both your credit card balances are bringing down your credit score. If you were to get both these cards below 30% of the allowed credit limit your credit scores should increase to around 720 or so.

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.

Credit Q & A

Q:
Hello Mike,
I have searched all over the web for credit reports with credit scores for free. One thing I have noticed is some sites sell credit reports with one score, and some with no scores at all. Where can I get a credit report with credit scores for free. I would prefer to get a score from each credit bureau. I am getting ready to buy a house and would like to know where I stand. Will this affect my credit score by pulling my report ?

Margarita Jiminez

A:
Hi Margarita,
Great questions you are asking. There is only one site where you get your credit report for FREE, which is http://www.annualcreditreport.com/. At this site you don't get your credit scores. If you want your credit scores you have to pay for a score with each bureau. If you are getting ready to make a purcahse you need to get all three of your credit scores to see where you stand. You can get your credit scores at our site with all 3 credit bureaus on a trial period. Most of our offers will give you all three credit scores. Pulling your consumer credit report does not affect your score at all. This type of credit pull is considered a soft pull according to my fico. If you have any questions dont hestiate to e-mail us.

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 Judgement Q & A

Q:
Hi Mike I was wondering if it is possible to get a judgement removed that is 6 years old ? I believe this judgement is dragging down my credit score. Even though the courts say I have to pay, I dont agree with this debt.
Laura Tylor

A:
Hi Laura,
Its looks like you are real close to the 7 year rule on judgements. Judements stay on your credit report 7 years from file date. So if you wait one more year, it should be removed from each credit bureaus. If it does not get removed, you can use our free dispute process under our resource tab on our site.

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.

Credit Card Q & A

Q:
Hello,
I had some questions in regards to credit cards. My wife and I had filed bankruptcy a while back. The bankruptcy was a Chapter 7. We got ourselves in trouble with credit card debt, but I am aware credit cards are necessary for good credit. How many credit cards should I apply for, and what type of credit card should I apply for with challenged credit. I pulled a credit report at your site, and our scores are in the low 600’s. Thanks for your help.
Tim

A:
Hi Tim,
This is a common question we get. Your overall credit score has many parts to it. Type of credit is 10% of your overall credit score. We always recommend a couple of credit cards to get the ball rolling. Most lenders like to see around 3 lines of credit reporting on your credit report for about 12 months or more. With good payment history your scores will go up. As far as what type of credit card, I would recommend trying to get a couple of our sub-prime cards. Below are some links to some good sub prime credit cards to get you in the right direction.

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.

Common Credit Report mistakes

Your credit report is not something to be taken lightly these days. It is almost as important as your social security card. There will come a time where your credit report will be required for credit purposes. We see credit reports on a daily basis, and there typically are issues with that individual’s credit report that was not known. This is all too common due to a lack of staying on top of your personal credit report. Here are some common issues we see that cause loans to get denied.

Credit Report Issues:
• Credit Cards charged beyond credit limit
• Credit Cards charged above 30% of allowed credit limit
• Late payments
• Co-signed for loans
• No Credit
• Credit Score too low
• Your dads credit shows up on your report because you are a junior
• Medical Collections
• Stolen Identity
• Credit card fraud

The majority of the time most people have no idea that the previous information discussed affects your credit report. All it takes is one of these mistakes to have issues getting credit extended to you.

If you are getting ready to make a purchase you can definitely save on interest rates and terms by pulling a copy of your credit report with credit scores. This is a preventive measure so you don’t get blind sided with a credit problem. There is a 1 n 4 chances your credit report has incorrect information on it.

Suggestions to avoid common credit report mistakes
• Pull your credit report every 3 months
• Don’t be late on obligations
• Don’t co-sign for anyone
• Don’t charge more on a credit card than you can pay off that month
• Establish credit if you don’t have any with Secured Credit Cards
• Pay your medical bills
• Shred all document that come in the mail to avoid id theft

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.

Get alerts when your Credit Scores are inaccurate.

When you're quoted a higher interest rate than you deserve because of information in your credit file, wouldn't you appreciate it if someone red-flagged it for you?

That's an especially pertinent question in today's mortgage market, as lenders ratchet up their credit score minimums and use electronic "risk-based pricing" to set rates and other loan terms. If you really deserve a 720 FICO credit score but you have been pulled into the low 600s because of incorrect or missing information in your national credit-bureau files, you ought to know so you have the opportunity to fix the problems.

To help with this, two federal agencies have proposed risk-based-pricing alerts that would cover all lending situations, including home mortgages, credit cards and auto loans. As part of credit legislation enacted at the end of 2003, Congress directed the Federal Reserve and the Federal Trade Commission to devise a system that would require lenders to notify consumers whenever the contents of their credit files contribute to a less favorable credit offer than the borrower might otherwise receive.



It took four years, but the two agencies published their proposal for a risk-based-pricing alert in mid-May. After a three-month comment period open to the public and affected industry groups, the FTC and the Fed could adopt the plan later this year.

Here's how it might work for home mortgage applicants: The bank pulls your credit files and prepares a rate quote. If your score comes in too low to qualify for the lender's best deals, the loan officer would be required to use one of several methods to notify you.

Using one method, the bank could provide you the credit score that governed your rate quote, along with a graphic representation of how your score compares with those of other mortgage applicants, plus the key factors in your file that depressed your score. The notice would also include information on how to contact the credit bureau that provided the score and how to obtain your full credit report.

Because you wouldn't yet be contractually committed on the mortgage, you would be free to call a timeout and check what's in your credit files. If derogatory information is erroneous, or if some of your creditors had failed to report your on-time accounts to the national bureaus, you would be able to correct the files before proceeding.

Not all applicants would be issued risk-based-pricing notices under the proposal -- only those whose mortgage terms and rate quotes are "materially less favorable than the most favorable terms available to a substantial portion of consumers [obtaining credit] from or through" that lender.

The FTC and the Fed offered two methods for lenders to determine which applicants fit that description. Using one approach, lenders would set a credit-score cutoff at which about 60 percent of customers have lower scores and about 40 percent have higher scores. Only loan applicants with scores below the cutoff would have to receive the alerts.

Under a second alternative, lenders would create a tiered pricing structure, with notices required only for applicants whose scores are in the lowest tiers. For example, if a lender used five pricing gradations, only applicants who fell into the lowest three tiers would receive an alert.

In a key decision that could provoke debate, the FTC and the Fed would not require most mortgage brokers to issue notices, as long as they do not function as lender during a transaction but are solely intermediaries. If the agencies' proposal is adopted, that means that when brokers shop loan applications to multiple lenders and receive quotes, they will not need to provide multiple risk-based-pricing notices.

In another limitation, the two agencies conceded that some consumers might not receive notices even though negative information in their files depressed their scores. That's because mortgage brokers might send applications with seemingly subprime credit exclusively to lenders who specialize in subprime loans. In that event, an applicant's high rate quote may be typical for that lender, not "materially less favorable" than what the bulk of the lender's clients receive.

Whatever the shape of the final plan for a risk-based-pricing alert, it almost certainly will heighten consumer awareness of the importance of credit data in determining mortgage rates and terms. In the meantime, remember this: Always check at least one of your national credit bureau reports -- on file with Equifax, Experian and TransUnion -- months before applying for a mortgage.

That allows you the time to fix problems if necessary and qualify for the rate you deserve.
By Kenneth R. Harney

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.

Free Credit Repair

To repair bad credit might be a mystery to most, but the process is actually quite simple. With all the bad credit out there, you would think there must be something in the water. I know there are different circumstances that cause people to get into trouble, but the mystery to get out of trouble just baffles everyone. Since I have been in the mortgage industry, I have learned how easy it is to fix your credit report. With the power of the internet you can fix your credit for free. I remember when I was young I messed up my credit report due to just being irresponsible. After about 6 months the phone started ringing This is a miserable feeling especially when you have guests over and your phone is ringing every 30 minutes from someone that wants there money. Nether less it happens and there is a solution as well. Here are the following steps to repair your credit report for FREE.

1. Don’t be late on anything anymore
2. Don’t allow anything to go to collection
3. Pay all your bills on-time
4. Pull a copy of your credit report with scores to see where you stand.
5. Make sure there are no inaccuracies on your credit report
6. Review your credit report and determine what you can start paying off.
7. If all your good credit went to collection, then you must re-establish new credit.
8. To re-establish new credit apply for a couple of secured credit cards.
9. Try not to pay off any collections over 5 years old.
10. Settle on collections for pennies on the dollar
11. Make sure once collections are paid you get the letters from the collection company showing paid or settled.
12. Beg and plead with the creditor to give you a letter to delete collection from the credit bureaus.
13. After 90 days of paying off collections pull your credit to see if the creditors updated the credit bureaus correctly.
14. Typically after a year of paying off collections, and establishing new credit your credit scores will increase dramatically

Just like anything else, there is not magical potion to repairing bad credit reports. It’s really simple; just start paying off your collections starting with your recent collections. I am sure you have heard companies advertising they can remove collections you owe because of a technicality. This is actually not true. A collection will stay on your credit report for 7 years from collection date. The best credit repair is to repair you credit yourself. Because after doing it, you will make sure you don’t allow anything to go to collection again.

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.

Why FHA- with your Credit Score ?

Did you know FHA loans have been around since 1935? That is pretty amazing if you think about it, this type of loan has been around since right after the “Great Depression.” Also a added benefit of FHA is that it does not have credit score requirements. With the current lending market and tighten up on credit scores it makes perfect since to look at a FHA loan. Depending on where you are going to buy will determine the max loan amount you can get with FHA. Yes, FHA loans have loan limits. Here is a link where you can look up loan limits by state and city.


Secondary Market Credit Score Requirements
With all the foreclosures going on, banking has made changes as to what type of loans they will buy. FHA does not have a credit score requirement to insure a FHA loan, but the banks that buy the loans do. For example, most lenders underwrite their loans, and then sell them on what is called the secondary market. This is a market where banks buy and sell mortgage loans. The current credit score requirement with this market is a 580 credit score. So if you have this type of credit score, you might qualify for FHA mortgage.
This type of score is not considered the best of scores, but could get you in a 30 year fixed mortgage. Your interest rate will be higher because of you credit score, but it’s better than renting. Typically credit scores above a 680 is considered good credit, so if you were wondering, that is the where you should be.
Here is a credit score breakdown per “My FICO.”

* Excellent: over 750
* Very Good: 720 or more
* Acceptable: 660 to 720
* Uncertain: 620 to 660
* Risky: less than 620

Advantages of FHA
Obviously FHA’s biggest advantage is you can get financed with fairly low credit scores. You don’t need great credit history that is required with Conventional loans. Here are some highlights to secure a FHA loan
• 3 lines of credit reporting on your credit report in good standing for the last 12 months
• If you don’t have any credit, FHA requires 2 months mortgage payment in bank after closing
• Good 12 month rental history
• 2 years work history.
• You can count college as work history, underwriters like to see that you graduated, and are working in profession studied.
• Only 3% down payment, you can use Down Payment Assistance in place of this.
• No credit score requirements
• 30 year fixed mortgage
• Competitive rates

FHA is not only for individuals with bad credit. This loan is for people with good credit as well. If you have a 720 credit score, and don’t want to put down a bunch of money, it makes perfect since to go FHA, as long as you are trying to buy within the FHA loan limits.

If you are in the market to buy, and you are not sure where your credit score stands, find out. Pull a copy of your credit report with credit scores. A educated consumers saves on interest rates and terms.

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.

TransUnions free credit score lawsuit drawback

TransUnion one of the three major credit bureaus just announced they will be offering free credit score and credit monitoring for 9 months due to a class action law suit. The law suit claims TransUnion was selling consumer information to third parties for targeted marketing efforts. Here are the benefits and drawbacks of this lawsuit.

Here are you two options as a result of the law suit.
In order to benefit from this lawsuit, you will need to register at: settlement site.

• Six months of Transunion credit monitoring, which includes unlimited daily access to the consumer's credit report and TransUnion-calculated credit score, plus e-mail notification of major changes to information in the report. The service retails for $59.75.
• Nine months of credit monitoring, one's insurance score (used by some insurers to set their rates), plus a tool that shows how a consumer's credit score affects mortgage rates. This option is valued at $115.50, and selecting it means releasing TransUnion from any future claims.


Benefits
You get a free credit report and credit score. You also get free credit monitoring depending on which service you go with.

Drawbacks
You don’t get your credit scores from the other credit bureaus. So you get part of what you really need.



This lawsuit has its advantages, you get a credit report, but it is missing some key ingredients. For instance your credit scores from Equifax, and Experian. If you are getting ready to make a purchase, or you just have concerns about your credit, you need to know all 3 credit scores. With the offer TransUnion is giving, you get one credit score from TransUnion. One credit score is like playing Russion Roulette, you spin the wheel and hope your other two scores are ok. Each credit bureau reports different credit scores and sometimes different information all together.

When creditors pull your personal credit report, do you think they just look at one credit score? Absolutely not, they pull all 3 credit scores to determine a credit decision. So my point is you will still need to pull your credit report with all 3 credit scores for a fee.

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.

Get Credit Report information and credit questions on-line.

Your credit report is accessible 24/7 on the internet in a few clicks. Equifax just released how the internet is a great resource fore accessing anything about your credit. The internet is amazing in regards to how you can get the information you need to fix just about anything. You can get recipes, commons household items, cars, credit cards, insurance, mortgages, or any common question answered. The internet is so powerful that you could actually stay home and never leave using the internet to buy what you need.


The internet being the best channel for credit reports, credit scores and getting free credit repair help, you can rest assure you will have access to what you need securely in a few clicks. If you want to access your credit report, and did it the old fashion way, you would have to wait for your report to come in the mail. I don’t know about you, but I know the mail is not safe anymore. You definitely don’t want anything with your social in the snail mail if you can avoid it. With the security that has been implement on the internet to get your credit report and credit scores safe and securely.




Most people don’t know how convenient the internet is. The internet has revolutionized the way we all do business and function in society currently. Let’s assume you have credit issues, and you don’t know what to do. Most people will search for credit repair sites. You will find that most credit repair sites charge horrendous fees for something you can do yourself for free. If you were to take the time to do some research, you will find that with a little credit education and implementation of what you learn your credit will improve on its own. The internet is just like your local library, it has all the information you could imagine.

How easy is it to get credit report on-line?
Let’s assume you are getting ready to buy something, or just would like to know what your credit scores are. Getting your credit report is so easy that a caveman could do it. Typically when get your credit report you will need to know your credit scores. Your credit scores will typically cost you around $30.00 to have that piece of mind. But it’s worth having believe me. In a matter of a few seconds with validating who you are, you will receive your full 3-1 credit report. Pulling your consumer credit report does not affect your credit scores by the way.

Credit Repair on the web
Let’s assume you have credit issues, and you would like to start repairing them right away. You can find all kinds of articles about what the first step would be in the credit repair process. With your credit being the single most important part of your financial health, you can rest assure the answer is on the web. In a few keystrokes you can be reading an article that will pertain to your situation. This is the power and resourcefulness of the web today. Got questions about credit? Just Google 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.

Credit Report affected by un-paid utility bills

Your credit score report can be affect by more than your available credit history. We talk about how credit cards, mortgages, car loans, and any type of loan that reports to all 3 credit bureaus will affect your credit score. We don’t always talk about utility companies and how they can have a negative impact on your credit report. Here are utility companies I like to consider non-creditors. In other words these companies don’t give you a line of credit, they just provide a service.



Utility companies
• Phone companies
• Electric companies
• Security companies
• Cell phone companies
• Water companies
• Gas companies
• Cable companies
• Internet Companies

Let’s assume you are having a tough time currently, and you stop paying your cable bill. The cable company will give you a little time to pay off the debt for service rendered, but will eventually turn that debt over to a collection company. The collection company in return will report that obligation to the 3 credit bureaus wanting their money. This is how it works with any of the companies mention. Once this collection reports to the credit bureaus your credit rating just dropped about 100 points. Utility companies on the other hand don’t help your credit when you are in good standing, but will also hurt your credit score if you don’t pay. Once the collection hits your credit report, and you finally decide to pay off the collection, the collection will be on your credit report for 7 years. 7 years of negative information will be on your credit report. If you don’t pay the collection, the collection company can sell the collection repeatedly to different collection companies which will ultimately drive down your credit score even more.





Pay your bills on-time
If you get behind, call your creditors immediately and work out a payment arrangement with them. They will typically work with you, especially during tough economic times. A creditor or utility company would rather get some form of payment versus nothing. If you don’t pay your bills including utility bills it will affect your credit score report. With lending getting extremely tough currently, your credit scores are more important than ever. If you have credit issues, the banks may look at your credit history as too big of a risk for there portfolio.

Don’t assume if you don’t pay utility it will not affect your credit. Because it will affect your credit, and will not go away until you pay it off. If you are unsure what is on your credit report, get a copy of your free credit score report today.



About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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.

Reduce debt with Debt Consolidation Q & A

Debt consolidation is becoming the wave of the future currently. We are starting to get more and more questions about how to get out of debt. We have partnered with a company that provides a unique approach called debt elimination. This company is based here in Texas with us. CreditSolutions is the name and they have received a very powerful award by JD Power & Associates for customer service.






Q:
Hi Mike,
I am self employed and have accumulated $75,000 in consumer debt, mainly because of this downturn in the economy. I own a company where I was providing handy man work for realtors in the California area. With the current market in California, my cash flow has almost come to a stop. What would you suggest I do? I have run through my savings, and cannot pay this debt currently.
Johnny Carbelo


A:
Hi Johnny,
We have definitely seen the issues in California, and how it’s affecting people in that state. If you don’t have income coming in to pay the debt, you definitely need to look at your options. I work with a company that provides debt consolidation of a different kind. In other words they provide a service they like to call debt elimination. This would be my first step in trying to resolve your debt issues. These guys can get you out of debt within 36 months. Go to our link on the front of our website and select the get out of debt link.

CreditScoreQuick.com


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.

Credit Report after a Bankruptcy

Your credit report after a bankruptcy will look like a bomb was dropped on it. Your credit score report will be littered with all kinds of derogatory information. Depending on what type of bankruptcy you filed will determine how long it will take to re-establish your credit. The two most common bankruptcies are Chapter 7 and Chapter 13. With the new bankruptcy law, more people will be forced to file Chapter 13. Here are the differences.

Chapter 7 bankruptcy- is considered liquidation of your non-exempt assets. This bankruptcy is considered the quickest and simplest of all bankruptcies. A court appointed trustee sells off all your assets in an attempt to pay back some of your creditors. During most Chapter 7 bankruptcies the client will not have any assets to liquidate.

Chapter 13 – This bankruptcy is considered a wage earner plan. This plan allows individuals whom have income to develop a plan to pay back there creditors over a 3 to 5 year period. Under this bankruptcy you are assigned a court appointed trustee that you make the agreed upon payments to, which they in return pay your creditors.

Bankruptcy is all too common these days with the economy the way it is. The mortgage crisis and the price of gas have caused many people financial troubles all over the United States. Luckily there is hope after a bankruptcy. It’s kind of like polishing up your shoes after you have got some scuff marks on them. Your credit is the same way, you can re-establish credit after a bankruptcy, and that is the first step once you are done with your bankruptcy.

How to establish credit afterwards
The first step is to get two secured credit cards. No bank is going to allow you to get an un-secured credit card after a bankruptcy. All of your past credit will be on your credit report for 7 years. If you filed chapter 7, it will be on your credit report for 10yrs from file date. But most of your past negative credit will be on your report for 7 yrs. The main objective is to get new credit on your report as soon as possible. The only way to do that is with secured credit cards, and Orchard bank is a great one. FICO likes to see a mix of credit, so make sure you get a couple of secured credit cards. This process will take you at least 12 to 24 months to get your credit scores where they are somewhat decent. After a little time with no slow pays, your creditors will start extending credit to you again.

Don’t be a repeat offender
FICO will forgive you for past bad credit mistakes, but if you are a repeat offender it will be tough to recover. The new FICO scoring process does not want to see you continually having problems. So learn from past mistakes, save your money for hard times and emergencies. Also remember to always stay ontop of your free credit score 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.

How to get your free credit report

Under the new 2003 Fair and Accurate Credit Transaction Act, all Americans have the right to a free credit report every year from all three major credit bureaus, Equifax, TransUnion, and Experian.

How to get credit report
You must request your credit report on of these three ways. The reports are not automatically sent to you.


• Go to http://www.annualcreditreport.com/, which is the only source for consumers on-line to get their free credit report every 12 months.
• Call the toll free number 1-877-322-8228
• Complete the form on the back of the “Annual Credit Report Request” brochure, available at the FTC, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Alanta, GA 30348-5281

You will have the ability to order all three credit reports at one time, or you may order at different times throughout the year. It is up to you. Be sure to order from the centralized agency. If you go directly to the credit bureaus you will be charged unless you fit other criteria for the credit report. Also beware of ordering your free credit reports from fraudulent, deceptive and misspelled domains that will charge for the same service you can get fro free.

This new ruling does not stop other ways to receive a free credit report. You are still entitled a free credit report if you have been: denied for a loan, insurance policy or job based on your free credit report; you are applying for unemployment or receive public assistance; or you currently reside in a state that already offers one or more annual free credit reports.

A credit report contains personal information such as your history of loan payments, including mortgages, credit cards, and auto loans. A credit report is used by lenders to determine whether they will grant you credit, and at what rate. A credit report is not the same as a credit score, which takes all the credit history and spits our a three digit number for each of the major credit bureaus. Credit Scores are not included in your free credit report with annual credit report, they must be purchased. If you are interested in buying your credit scores, you can go to http://www.creditscorequick.com/, and get your real free fico scores and credit score reports today.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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.

I did not get Credit Scores with my Credit Report

Getting your credit report is a must these days. When you get your credit report make sure you get your credit scores. Annualcreditreport.com does not give you your credit scores for free; you have to pay for them. Also make sure you get all 3 of your credit scores. One credit score from each Bureau.

Q: Hello I found your site and saw that you had lots of different credit reports to offer.My husand and I went to annualcreidtreport.com and pulled a copy of each of our credit reports. To our surprise, we did not get our scores. I noticed that most sites charge for this. On your site you get a free trial, do you have to pay for scores, or am I missing something?

Gertie Fuger
Las Vegas, Arkansas

A: Hi Gertie, this is the $100 question. Under the Fair Credit Reporting Act(FCRA) in 2003 they required the three credit bureaus TransUnion, Experian, and Equifax to give you a copy of your credit report free once every 12 months. Unfortunately you don’t get your credit score for free. This is like grandmothers homemade chocolate cake missing part of its recipe. Since every creditor and there dog looks at your credit scores, you need to know where your credit scores stand. At our site you get a FREE trial for 7 days, and you can cancel during that free trial and not be charged anything. With this free trial you do get a credit score from each bureau.

CreditScoreQuick.com




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.

Data Recovery

Credit Cards – How many should you have?

Credit cards are a must for good credit scores these days. But how many should you have? Also how many is too much? Some experts claim it is not how many you have, but how are you spending habits. Some experts say all you need is a couple of credit cards to keep your credit report and credit scores healthy.

Credit utilization is another key point about credit cards. If you have a bunch of credit cards, and you are using up your credit limit, it could hurt your credit score. The FICO score model looks at you utilization of your existing credit. Some experts say to keep your credit card balances below 50%. I believe most experts will tell you to keep your balances below 30%. I personally believe you should not keep a balance on your credit cards. I know that good credit management is only charging on your credit cards what you can pay off that month. If you are charging credit on stuff you cannot pay off that month, you are living beyond your financial means.

Department store credit cards are a credit card I would stay away from. These cards usually have higher interest rate than bank cards. The old sales pitch they give, if you get a credit card today, it will save you 10% on your purchase. If you rack up debt on those cards you did not save anything. The interest rates on department credit cards are usually around 20%. That is outrageous.





Remember you only need a couple of low interest rate credit cards. You should only use your credit card occasionally to keep it active, especially if you get reward miles for spending. As long as you pay off that card each month, before you know it, you are flying first class with your miles to Hawaii for free.

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.

Divorced Credit Report Q & A

Your Credit Report can be affected in a negative way during divorce. I see this all the time, credit report littered with slow pays, collections, and charge offs due to a separation. Don’t let your credit report suffer because of a divorce; it will take a while to clear it up if you do.





Q:
Hello I am going through a divorce currently, and we have accumulated debt together while we were married. I have excellent credit I believe, and I want to make sure it stays that way. My concern is some of the accounts we are joint users on is being awarded to my husband. He is not that responsible, I have always taken care of the bills. The attorney is working on the divorce decree that states certain obligations are his responsibility including the house. My question is will this debt still show up on my credit report even though the decree states those debts are now his responsibility?

Carly Simon
San Francisco, California

A:
Carly this is a great question and a “BIG” problem out there today. Divorce is one of the biggest ways to discover credit report problem after the fact. Most think that the divorce decree will erase debts with creditors. This is simply not true. If the account is joint, even though the decree says the other party is responsible for that debt, if the other party has a slow pay your credit score report is affected. This is simply because your social security number is still attached to the obligation. So yes, if your husband is late on any of the obligations that you are on as well, your good credit report with suffer greatly as a result. My advice would be to have the attorney draw up the divorce decree correctly by stating your husband has so many days to refinance the house out of you name, and get any obligations like credit cards, car notes, etc….. out of your name. This way your credit is not affected down the road.





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.

Top Credit Score - FICO score Myths

Your credit score or FICO score is the most important element in your financial life these days. Landlords, employers, banks, utility companies and insurance companies all scrutinize your credit score. This credit score is what sums up everything within your credit report. Your credit scores range between 300 to 850.


Yet according to a survey recently revealed, nearly half of Americans have no idea what is on there credit report until it’s too late. According to recent studies people are mis-lead into thinking certain situations determine how high or low a credit score is. Despite all the news media and internet information the fact is the lower your credit score the more you pay. Also in some instances you get that ugly word you were told when you were young, NO. No one likes to be told no, it makes you feel like a child again, even though you are a grown up. If you are applying for mortgage and your credit score is a 610, you could get denied or pay $400.00 dollars a month more because of the risk based pricing now in the banking industry.

While all of this is sinking in, make sure you are not falling for these credit score myths:

Myth 1: Credit Card offers are hurting your credit score. Credit Card offers do not affect your credit score. Now if you respond to the offer the inquiry could lower your credit score. Fair Isaac says that too much credit does not affect your score either, but high credit card balances will lower it.

Myth 2: The higher your salary the higher your credit scores. Paying down credit card debt will lower your credit score. However the amount of money you make, or how much you have in the bank has nothing to do with your FICO score. So in other words your net worth or the amount of money you have coming in is not factored in the credit scoring process according to Fair Isaac the creator of the FICO score.

Myth 3: When you get married your credit scores get merged. When you get married this is simply not true. The only thing that gets merged are accounts you acquire jointly. If you both apply for the same card, then that card and its history shows up on both credit reports.

Myth 4: Shopping around for a loan hurts your score. When you apply for a mortgage, they will pull a recent copy of your credit report which will give a inquiry on your credit report. FICO allows you to shop for a mortgage with multiple lenders with out it hurting your fico score during a 30 window. So during this 30 day window multiple inquiries for a mortgage will only count as one inquiry according to Fair Isaac, MyFICO.

Myth 5: You only have one Credit Score. You have a credit score with each credit bureau. Your credit score could vary as much as 50 points, which is why you need to check your credit score with all 3 credit bureaus.

Myth 6: Checking your own credit report will lower your credit score. This is a question I get all the time. When you are pulling your own credit report it is considered a soft inquiry, which is not factored in the credit scoring process according to MyFICO.

Myth 7: Your age, sex, income are factored in your credit score. According to MyFICO none of this has a factor in your credit scoring process. What the FICO score model is looking for is your credit history with creditors which you owe a debt.

Myth 8: Disputing a item on your credit report will get it removed. This is a common misconception that if you dispute a item it will get it removed. If you dispute a item and you actually owe it, and its reporting within the 7 years required by law, it will not be removed. Now getting inaccuracies removed from you credit report will increases your credit score. Remember collections and chare offs report on your credit report for 7 years from collection date. If you dispute that item during that period, you are wasting your time.




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , 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.

Credit Score-Beacon Score-Fico Score-Explained

Sometimes when you are getting ready to make a purchase you will find everyone calling credit scores different names. You will hear FICO Score, credit scores, and Beacon score are the typical terms for credit scores. One of the problems is when you don’t have a good standardization in a industry, you get different versions of a product or service. That is currently the problem with our credit scoring models being used. You have more than a couple issues. In this article I wanted to discuss this because it can be confusing out there for the average consumer. If you are getting ready to make a purchase, this is a must read.

Credit Score
A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. This is the most standardized term for what a credit score is. Most people relate to the term credit score. This is the most widely used term out of the 3 terms used in this article.

FICO Score
FICO is an acronym for Fair Isaac Corporation the creator of the FICO Score. This terminology is becoming widely used in the mainstream public. The reason for this is FICO scores are what 80% of the banks use to determine your risk. FICO scores range between 300 and 850. The higher your FICO score the more favorable your rates and terms are on a loan. FICO scores are somewhat the standard that the 3 credit bureaus use to determine your scores as well. Even though Equifax is the only bureaus that using the FICO scoring system, the other two credit bureaus TransUnion and Experian have their own version designed based on the FICO score model which was created by Fair Isaac.

Beacon Score
Beacon is a version of FICO created by Equifax. Typically when you hear someone ask you about your beacon, that would be your credit score with Equifax. This software was called “Beacon.” Now currently the FICO score model created by Fair Isaac has became more of a standard than the scoring models created by the other credit bureaus.

When buying your credit scores with all three credit bureaus, each bureau will have their own version of your credit score. The scoring model standard is suppose to be based on Fair Isaac’ scoring model FICO. So who knows, it’s a little confusing, but that’s what banks, car dealerships, and credit card companies pull to determine your risk.

If you are getting ready to make a purchase, make sure you get all 3 credit scores, because that is what the lenders are looking at.

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.

TransUnion Credit Report Guide

When you are looking at your credit report there are weird codes on your credit report only a credit report expert could understand. We found this transunion credit report guide for codes on your credit report and what they represent. This guide was created in 2003 for mortgage brokers. I believe a credit geeks would appreciate trying to decipher credit report code.

Type of Account
O Automated
R Revolving or Option
I Installment
M Mortgage
C Check Credit (line of credit)


Date Indicators
A Automated
C Closed
D Declined
F Repossessed / Written / Off / Collection
I Indirect
M Manually Frozen
N No Record
P Paid Out
R Reported
S Slow Answering
T Temporarily Frozen
V Verified
X No Reply

(KOB) Kind of Business Classifications
A Automotive
B Banks and S&L
C Clothing
D Department, Variety and other Retail
E Employment
F Finance, Personal
G Groceries
H Home Furnishings
I Insurance
J Jewelry, Cameras and Computers
K Contractors
L Lumber, Building Material, Hardware
M Medical and related Health
N Credit Card and Travel/Entertainment Companies
O Oil Companies
P Personal Services Other Than Medical
Q Finance Companies, Other than Personal Finance Companies
R Real Estate and Public Accommodations
S Sporting Goods
T Farm and Garden Supplies
U Utilities and Fuel
V Goverment
W Wholesale
X Advertising
Y Collection
Z Miscellaneous

Here is a link to this document that list special codes and triggers that may be on a TransUnion 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.

Does Annualcreditreport.com get you what you really need ?

Annualcreditport.com is a government mandated site to provide a free credit report to consumers once a year. You get a 3-1 credit report with NO credit scores. But you get a FREE credit report. At CreditScorequick.com our job is to educate you about what you really need. When you go to the bank do you think the banks just pulls a credit report with no credit scores? If you thought the answer was no you were correct. The only advantage of this government mandated site is you do get a 3-1 credit report from all 3 credit bureaus, once a year. Lets assume you have already pulled your free credit report and now have decided to make a purchase 4 months later. It is suggested you pull a copy of your credit report if you are about to make a big purchase or apply for credit. So you cannot get a credit report for another year, so what do you do? You can go to http://www.creditscorequick.com/ and get your FREE trial credit report with all 3 credit scores.


Why you need to know your credit scores
Your credit scores is how any lender, bank, credit card company, auto lender, and insurance company determines your likelihood of paying back a obligation. A credit score is your risk and any given point in time. Most lenders now use FICO scores to determine this. So the question is if all of these companies look at your credit scores, shouldn’t you know your credit scores as well? The answer to that is yes.

Why pulling your credit report once a year is not good enough.
Even though annualcreditreport.com gives you your 3-1 credit report once a year, anything can happen to your credit report within a 30 day window. So if you just pulled your credit report, and someone steals your identity afterwards, you would not know about it until creditors start to call you wanting their money.

At CreditScoreQuick.com you get what you’re really need, get your free credit score report:

Here is what you get:

• 3-1 credit report
• 3 credit scores
• From all 3 credit bureaus
• Credit monitoring & Alerts
• Delivered to you instantly on-line

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.

Credit Score lowered by Closing Credit Cards

Most educated consumers know about there FICO scores. That magical three digit number that lenders use to determine your credit risk. CreditScoreQuick has published here, an article about what determines your credit score. Many still wonder if closing credit cards or applying for a new credit card will affect their credit score.




Most consumers typically don’t know about the affects of doing what was mentioned, until it’s too late or by trial and error. In this article we want to make sure you know the affects of canceling good credit and opening too much credit too soon.

Canceling good credit cards
This is a mistake a lot of people make, and that is closing good credit card accounts. There is a misconception out there that when you close a credit card you loose your credit history with that card. This simply is not true. That history will be on your credit report for 7 years. Now there will not be any new credit history, and you also closed down a perfectly good line of credit which could lower your credit score. Fico likes to see a mix of credit, so if this was your only credit card, it more than likely hurt your scores as well.

Opening too much credit
Having too much credit does not hurt your credit score. Applying for a bunch of credit does hurt your fico scores. So for example, if you apply for a car, furniture loan, mortgage, and new credit cards all at once, you score will be lowered as a result. The fico score model sees too much credit too soon as a risk to the creditors. That is why your scores get dinged for it. Now if you are applying for a mortgage, the fico score model allows you to shop for a mortgage within a 30 day window, so fair Isaac’s scoring method allows you to shop your mortgage rate. This shopping within a 30 day window according to FICO counts as one inquiry.


So if you are getting ready to make a purchase and think you may have lowered your credit scores because of too many credit applications, go ahead and get a copy of your free credit score report to see where you stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, 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.

Credit Scores on MSNBC- How the changes will affect you.

Here is yet another interview on tv about the importance of your credit scores. Its amazing how 6 to 7 years ago a 620 credit score was a score you coud get low rates with. Not anymore.
With the lending industry tightening up becasue of all the foreclosures, you can't afford not to mangage your credit health.




Do you know your credit scores ?

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , 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.


SEO Services

Credit Score improved by using credit cards

The credit score is key to your financial health. With all the different avenues to get your score these days, there is no reason to not be educated about your credit report. I get lots of question about closing credit cards, and if that is a good option, especially if you are not using them. Here are some question from some of our readers about closing credit cards, and if it will affect your credit score.





Q: John Miller, asked:
I have 5 credit cards and only use one of the cards regularly. I keep the other 4 cards in my safe. I was wondering since I don’t use them should I go ahead and cancel those cards? One of the cards has a annual fee of $35.00 even though I don’t use it.

A: CreditScoreQuick.com
Hi John, you don’t ever want to cancel a credit card, that is like getting rid of good credit. What you should do is use each card about every 5 to 6 months. If you have good credit cards just setting in your safe more than 6 months without any use, the creditor might expire the card. So you want to make sure you use the cards and pay them off each month.

According to Fair Isaac, the creator of FICO scores, you should have a couple of credit cards. FICO scores are calculated by a mix of credit. So if you cancel a credit card, there goes two things, good credit that was reporting on your credit report along with a mix of credit as well.





Here is another question we had about credit cards and credit scores.

Q: Alex asked:
I have two credit cards, and would like to increase my credit score; I currently have a credit score of 675. I want to increase my score if possible; I am getting ready to buy a car, and would like the best rates on a car loan. One credit card has a balance of $6500 and another card with a balance of $3300. The first card limit is $15000 and the second is $10,000. What should I do to get my score increase as quick as possible?

A: CreditScoreQuick.com
FICO recommends that you keep your balances below 30% of the allowed credit limit. It looks like your credit card balance on the card with a $15000 dollar limit is high. This is more than likely dragging down your score. I would pay down that card, and it should increase your credit score.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , 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.

Credit Score and Credit Report Q&A

Q:
Hi Mike,
I have a question about my credit score. In today’s market what is really considered a good credit score to get the best interest rates and terms on any thing I borrow? I have always paid my bills on-time, and don’t have any collections. I was just curious what that benchmark might be. Also how often should I pull my credit report? Is once a year good enough?

Sandy Morton
New York, New York







A:
Hi Sandy,
These are some great questions. In today’s market a credit score about a 720 is considered good credit for the best rate and terms. Some lenders have their own bench mark for better rates. They might require a 740 or above to get a quarter better or so. With the current FICO score model, a credit score 720 or above is considered excellent credit. If you score is around that benchmark, I would not sweat it.

How often should you pull your credit is a question I get quite often, here is something to chew on. The current revolving credit you have, re-reports every 30 days. That means anything can happened to your credit scores and credit report within a 30 period. So since your credit score is so important these days, I would recommend pulling your credit report at least once a quarter. Pulling your credit report is just good management of your credit health, and a good way to watch out for identity theft. Remember pulling your own credit report does not affect your credit score; this is considered a consumer credit report which is a soft pull on your score.If you want your credit scores you will have to pay for them, which I recommend since they are part of the decision making process in lending.








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 and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Your Credit Score- The New Vital Sign

There is a new trend going on in Health Care, what’s your credit score? Hospitals are starting to check credit reports to see whether a patient will pay their medical bills and which ones just need to be written off. There are concerns about whether a patient will get the quality of healthcare they need if their credit report has bumps and bruises on it. Is there such a thing as credit score discrimination?

Some advocates are concerned that this process could lead to some patient not getting the health care they need. Hospitals are denying this. But we have to remember Hospitals are a business too. Advocates are also concerned this might force some patients to get high interest rate credit lines to pay for medical services. This currently goes on in the Dentistry industry. In order to finance a crown, you pay high interest on the money borrowed. Nether less it looks like everybody’s credit score will be pulled if services will be rendered.

Currently some of the big players trying to sell services such as health care risk models. Equifax is one of the key players that has a score that will predict the likelihood that a patient will pay back medical obligations. With the new digital age, and the instant response of the internet, Healthcare organizations can get your risk in a matter of seconds.

Currently the hospital chains such as Tenet and Fair Isaacs the developer of the FICO credit score are some of the top supporters of healthcare analytics, a company that is putting together bill-collection data from hospitals for predicting patient payment habits.

This is just another example of how the wonderful credit score is so important these days, this 3 digit number is creeping into our healthcare sector currently.

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 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.

Top reasons to get free credit score report monitoring

With the recent Sallie Mae mess up which caused 1 millions students to have their credit scores lowered dramatically, you cannot afford to go through life without credit report monitoring set up. Have you ever wondered what credit report monitoring is? It’s a service you buy when you get your free credit score report that monitors any critical changes to your report. Credit Monitoring is a great preventative measure to watch out for changes that would affect you. Here are some examples of what credit report monitoring will alert you about.
1. If someone pulls your credit report
2. e-mail notifications for the following:
a. new inquiries
b. fraudulent activity
c. late payments

Staying on top of your credit report health is like getting a check up with the dentist. It’s just a preventive measure to avoid problems that a lot of Americans are having currently. With the recent Sallie Mae incident, you can rest assure that there is a good chance you have inaccuracies on your credit report. There is also a chance that someone is stealing your identity as you are reading this article. We live in a society where people are looking to make a quick buck, and use your credit and hard earned money to do so. I personally believe credit monitoring is a must these days, and typically when you least expect something like identity theft to happen to you, it happens and you have no way of knowing until its too late.

Creditor mistakes
Like the mistake with Sallie Mae, there is a possibility one of your other creditors has already made a mistake on your credit report. We pull credit reports all the time and I can honestly say that 1 out of 4 credit reports have incorrect information on them that could cause a denial. I recently pulled a credit report for a potential client and this client had a mortgage reporting that was not his. So with all of this being said, get your free credit score report with monitoring today. Its worth the peace of mind as well.

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

How a foreclosure affects your credit report & credit scores

Your credit report and credit score can be affected by a lot of things, a foreclosure is just like any other bad mark on your credit report, it will lower your credit scores. Foreclosures are not like unsecured debt, where they can take you to court, or put it in collection. Depending on the loan type you had, the mortgage loans are insured. So if you foreclose on the home, and the bank can recover the losses the bank can put a claim on the Private Mortgage Insurance that the home carries.

Private Mortgage Insurance
Lenders mortgage insurance (LMI), also known as Private mortgage insurance (PMI)in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.

The damage after a foreclosure
After you have had a foreclosure, you can count on your credit being ruined for about 3 years. One of the reason is the late payment will go on for about 120 days. Like I have discussed in other articles late payment is one of the problems here, it will lower your scores in the low 400’s. Once the bank quits reporting late payments and the home forecloses, at that point you can begin the credit report building process. It does no good to try to fix a credit report if you are still having late payments. If and when you are back on your feet as a result of a foreclosure, it will take a minimum of three years before you can purchase a home again. Freddie, Fannie, and HUD have a 3 year requirement before you can purchase a home again. That seasoning date starts from the foreclosure date. In other words you will not be able to buy a home for 3 years from foreclosure date.

What should you do after a foreclosure?
The best way to approach this is to put the whole ordeal behind you, and make sure it does not happen again. Go ahead a pull a copy of your free credit score report to see where you are at. Once you have done that you will have a better idea of where your credit scores stand. If for some reason you had to let other credit go, make sure your re-establish good credit. The best way to do that is with secured credit cards to start the re-building process of your credit scores.

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

Top ways to lower your credit score.

I think we focus so much on how to increase credit scores, we forget about what will lower your credit scores. In this article I will discuss what could lower your credit score and how to avoid it.

Late Payments
This type of activity on your credit report will destroy a good credit score. Typically when you are late on a obligation, you credit score will drop 100 to 150 points. Remember this only applies to obligations that report to the credit bureaus, not electric bills, car insurance, cable bill, or any utility bill. That does not mean stop paying them, because if you do that they will put the account in collection which ultimately will have the same results on your credit score. So don’t be late on anything.

Credit Cards Maxed out
If you have credit cards that have reached their credit limit, you score just dropped. According to FICO your credit card balances should stay well below 30% of allowed credit limit. You really should only charge on your credit card what you can pay off that month. IF you are not careful, you could find yourself needing debt consolidation because you cannot afford all your credit card debt. Make sure you keep your credit card balances low, and only use your credit cards for small purchases that you can pay off that month.

Co-Signing for someone
This is a huge problem, we all love to help out family and friends, but this is a big NO NO. Don’t ever co-sign for someone, because if they are late on a payment, guess who’s credit scores will suffer? That’s right; your credit score will suffer, because of their mistake. I see credit reports with this type of activity all the time, and it could also keep you from qualifying for a home, because that debt is really your responsibility even though you co-signed. So don’t make this costly mistake, if someone does not have the credit to buy, tell them to go to CreditScoreQuick.com to get advice on what to do.

Credit After a divorce
This is another huge problem, people getting divorces and even though the divorce decree clearly states the other spouse is responsible for the debt, it stills shows on your credit report. So if the other spouse runs into problems and is late on the payment it will affect your credit score report as well. Make sure when you file the divorce before its final the other party gets all obligations refinanced and out of your name or it could affect you in the loan run.

As always we recommend you get a recent copy of your free credit score report to make sure none of this is going on. Remember your credit is your life.

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

Sallie Mae causes credit score error.

Some borrowers that have sallie mae student loans were shocked last week when they checked their credit report with Equifax, only to find that their credit scores have dropped. Some of the borrowers were delinquent, and some were not.

Here is what happened
Last Thursday May the 8th Sallie Mae made a error in the way some student loans were reported to the credit bureau. They reported graduated or extended repayment plan as arrangements for partial payment. This caused Equifax the biggest and oldest credit bureau to code the accounts as delinquent, even if they were current.

An extended payment plan allows the borrower to pay the loan out over 12 to 30 years. The standard plan usually is in repayment over 10 years. A graduated payment plan starts out as a low payment, and gradually increases every two years over a term of 12 to 30yrs.

“ There are some repayment plans that on our system are considered a partial payment. They are still in current status, but they are essentially for an extended or graduated repayment plan, and with our understanding of these industry guidelines on how to code that is where we made an error,” Says Martha Holler, spokeswoman for Sallie Mae. “

Borrowers with extended or graduated repayment plans who applied for credit or pulled their credit scores in the last three business days may have had “one or more of their accounts show up late, and had a negative impact on their credit scores,” Says Tom Joyce, spokesman for Sallie Mae

Some students that had these types of loans complained in the FICO forums that their FICO scores had dropped a total of 100 points because of this mistake.

Joyce says ” less than 10 percent” of their 10 million borrowers, or less than 1 million borrowers were affected by this mistake.

Action being taken
Sallie Mae plans on working with Equifax to fix this problem with borrowers who’s credit reports were affected. These errors will be deleted from the Equifax, and the borrower’s credit score should return to the scores they were.

Meanwhile Sallie Mae said they would provide letters to those that need them. Sallie Mae urges borrowers concerned about this mistake to call (888) 272-5543

This is a great reason to pull your credit report; you never know when a creditor is going to make a mistake. Current statistics show that 80% of credit reports have errors on them.

Get your free credit score report today !

This article was wrote: by www.bankrate.com

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 and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

How a Bad Credit Score can destroy your Marriage

Marrying someone with bad credit scores could cause you to get a divorce. You might be asking why? In this article I will give another illustration in regards to how bad credit can affect your personal life. Folks this is not a joking matter, bad credit can destroy marriages and relationships.

Julie and Ralph Bachensky just got married, and of course Julie did not look into the status of Ralph’s personal credit history. They were just happily married, and look forward to a healthy relationship together. After living in a apartment for a while, they both decided to purchase a house. Like most Americans they need to get a loan to buy house. So they were referred to a local mortgage broker by a realtor they know. To Julies surprise Ralph’s credit history was so bad that they could not get financed for a new home. The mortgage broker told them that with Ralph credit they would be about a year or so from being able to purchase a home. Julie was embarrassed and outraged at the fact that they had to continue to rent a apartment. They are currently throwing away $1700 a month on a renting this apartment. This type of scenario is all to often, due to credit issues amongst marriages. With credit problems there are lots of things you will not be able to do. Here are some examples.

1. Will not be able to buy a home.
2. Will not be able to get low car insurance premiums
3. Could be denied cell phones without big deposit
4. Could be denied a rental
5. could be denied a good job
6. Could be denied a car loan




At CreditScoreQuick.com we understand the need to stay on top of your credit. If you are out there and you know you have some credit issues, attack the problem by getting a recent copy of your credit report with scores. The longer you wait, the worse it will get. Once you have pulled a recent copy of your free credit score report at CreditScoreQuick.com, you can start using our Free credit repair resource under out blog. Be proactive and get your credit in order so you don’t have unnecessary problems. Remember “Your Credit is Your Life.”

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

Home Buying Process and Mortgage Loans done correctly.

The home buying process can become the biggest nightmare if not done correctly. I am sure you have heard of all the stories out there about somebody’s loan not going smooth and what a humiliating experience that can be. Since buying a home is the single biggest purchase you will ever make, you need to make sure the process you are giving is the correct one. Since most of us are emotional buyers, and would like to go look at homes before getting a loan in place, this might seem like to best process to follow. I will be the first to tell you, that if you go look at homes before you get a mortgage loan in place, you very well could be part of the nightmare mentioned. Take our advice and remember this.

Get approved for a mortgage loan
Most people like to lead the cart before the horse, only because it seems easier. Unfortunately that is not the process when buying a home. The first step is to get a mortgage loan secured. The reason for this is anything can go wrong when buying a house if you don’t dot your I’s and cross your T’s. It probably sounds like more fun to run out and look at a bunch of homes, before getting you’re financing in place. With all the current tightening up in the mortgage industry, and your credit score needing to be higher these days, you cannot afford to assume you will be able to get financing. The lending requirements are a lot stricter these days. Let’s assume you go out and find the home of your dreams, but you have not idea what you qualify for. Nor do you have any idea what your payment would be on the homes you are looking at. Here is a list of situations that could happen if you don’t get pre-approved before looking at homes. Also if you know you have good credit, you still may get denied, so don’t assume anything.

1. Find a home only to get let down because you don’t qualify for it.
2. Thought the payment would be lower.
3. Need money for down payment you don’t have.
4. Got something on your credit report you knew nothing about.
5. Your credit scores are too low for your type of loan scenario.
6. Someone has stolen your identity and you just found out.

7. You don’t have enough credit to get a mortgage loan

This is just some key problems that could take place if you don’t get your pre-approval first. If you go out and write a contract up on a home, and find out later you cannot secure financing you have wasted your time and everyone involved. Plus it could cost you your earnest money which could be between $500 and $1000 dollars.




Get a seasoned realtor to help with your search
After you are pre-approved for a mortgage loan, you need a highly qualified realtor. You don’t want to work with a realtor that runs you out to look at homes before you meet with a lender. If a realtor does this, you are going to have problems. I promise. Most seasoned realtors will not allow you in their car until you are approved with a reputable mortgage lender. This may not sound like the process you want to follow, but it the only way to get matters rolling and it’s the correct way.

Whether you have thought about buying, or maybe you were just denied for a mortgage, what every your situation is, most people are pulling a copy of their free credit score report to get an idea where they stand with their credit. Don’t take the easy way out, because it will make matters hard for you.

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

Establishing Credit Scores, how long it takes.

Establishing a credit score is closer than you think. Whether you are new to the country, or young trying to establish credit, I will discuss in this article exactly how long it takes. I will also discuss what it takes to establish credit scores. What has worked in the past no longer works with the new Credit Scoring process. The reason for this is it was changed this year with Fair Isaac whom is the originator of the FICO score model. This FICO score model is what 80% of the largest banks currently use to determine your creditworthiness. Here is the first step in establishing a healthy credit score.

Secured Credit Cards
In the past your parents could have put you on their credit card account as a authorized user. Once they did this the credit card would start reporting to all 3 credit bureaus on your behalf. This would immediately start the credit score building process for you. According to Fair Isaac this is no longer the case. Due to fraudulent activity in the credit repairing industry they stop the positive credit building with this process in their FICO score model. So with this being said, you have to take other measures when you don’t have any credit. This measure is secured credit cards. A secured credit card is where you secure the line of credit with a bank, usually a cost to you around $200 to $300 dollars. This money is put into an account with the secured credit card bank. Once you put money into the account designated by the card company, you instantly start the credit score building process. There is not a quicker way to build credit in today’s credit world, unless you are college student. Then you can apply for a student credit card. These cards are usually easy to get for individuals that are currently in college.

Credit Scoring Time Frame
The time frame to establish credit scores with the 3 credit bureaus is usually around 6 months. Once you have secured a couple of secured credit cards, you can expect to get a credit score as long as you are not late on monthly payments in 6 months. It is very important to make sure you are never late on any obligations that reports to all 3 credit bureaus. If you are late, you can expect a 100 to 150 point drop in your credit scores. So you definitely don’t want to have any late payments period.




Car loans
Auto loans are a great way to establish credit as well. Maybe once you have got a secured credit card or two going, I would recommend getting a car loan as well. This will give you a mix of credit for long term credit score growth. Getting a car loan is not as easy as getting a secured credit card, but you should be able to get a car loan after you have established some secured credit with some payment history.

With credit tightening up all over the board, the best advice I can give is to make sure you pay everything on-time and don’t over extend yourself. This is a common problem, and it can sneak up on you very quickly. Be responsible and live your life well.


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

Does paying off Collection accounts help my Credit Score?

We all know credit scores are pretty much the ticket to a lot of things these days. This is a question that has two sides to it. Over the years most credit repair companies will tell you not to pay off collection accounts because it gives an updated collection to the credit bureaus. I will be the first to tell you, that if it’s a new collection you are better off settling on the collection and asking for a letter to delete from all 3 credit bureaus. There is also a trick of the lender community, where we ask you to pay off a collection and get a a letter from the creditor reporting the collection, Once you provide the letter we go to our credit reporting company and do what is called a rapid rescore. What this entails is we get the credit bureaus to update the status of a collection from balance being owed to “paid in full” or “settled” depending on what was negotiated. You can do what we do for FREE at our site. Here are detailed instructions on how to dispute via mail and online.


Once a collection is updated here is what typically happens.
1. Your score will increase depending on how many accounts you paid off
2. The status of the account will change
3. Balance being owed will be $0

So the answer is yes typically when you pay off collection accounts your credit score will increase. We have been doing this for years, and it works. The reason is you are changing the status of the account from balanced owed to either settled or paid in full. This is the secret that most don’t know. Why do credit repair companies tell you not to pay off collections, I personally believe it’s because they don’t have access to do rapid rescore process like mortgage companies do.

In some cases when you pay off collections your credit score could drop, but will eventually go up. There is no miracle when it comes to repairing your credit report, it is always better to pay off your debts you owe though. Typically when you pay off a collection your credit scores will increase. Just remember as you are working on paying off old bad debt make sure you are not late on anything. If you are late on a obligation that reports to your credit report, you are defeating the entire purpose of increasing your credit scores. Late payments will drop your credit score between 100 to 150 points.

If you are uncertain what is on your credit report go ahead and get a copy of your free credit score report Today.

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

Free Credit Report

Your free credit scores are available at CreditScoreQuick.com. This is one of the few places where you have many choices of the top credit score reports the web has to offer. Maybe you have been surfing the web look for the right credit report for you. At CreditScoreQuck.com you get your 3-1 credit report with credit scores from all 3 credit bureaus. This is the type of credit report and credit scores the creditors look at when they make a decision in regards to a loan for you. There are lots of offers on the web where you get your credit report but no credit scores. To be an educated consumer you need to know what the bureaus are saying about your credit scores. When credit card companies, mortgage companies, and banks look at your credit report they base there decision process on your credit scores as well. The “question is” shouldn’t you know your fico credit score?

The internet is so amazing that you can get your free credit score in a matter of seconds securely on-line at CreditScoreQuick.com.

Here is one of our top offer:

FREE 3-in-1 Credit Report
With your Free Credit Diagnosis Trial

You will Receive:
• TransUnion, Equifax & Experian
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• 3 free credit reports
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Free Credit Report and Score


Your Free Credit Report
Your free credit report is a file that contains a complete record of your credit history up to the present. It contains a number grade - known as a credit score - which sums up what kind of credit risk you are. Generally, you'll have one report at each of the 3 credit reporting bureaus -TransUnion, Equifax and Experian. Every time you apply for credit, your prospective lender requests your credit report to decide whether or not to approve your credit application.

Who views your credit report? Banks and mortgage lenders, car dealers, insurance companies, employers, landlords, retail stores, credit card issuers, even utility and phone companies. These creditors pay the credit reporting bureaus a fee to look at your credit report in order to evaluate how responsible you are.

Your free credit reports are just that - free. By law you're entitled to check your report from each bureau once a year for free. It's a great idea as a high percentage of reports (up to 79%) have errors which can impact your credit score.


What's In Your Free Credit Report?
There are 4 sections in your free credit report. Each contains one piece of your total credit picture. Carefully check each report for common errors such as misspellings, name confusions, and incorrect information.
1. Personal info (this section lists legal name, alias names, addresses, current and previous employers, date of birth)
2. Account summary (current and past credit status, number of open and closed accounts, balances of accounts, historic high balances, payment history, if accounts are current or delinquent)
3. Public records (bankruptcy records, government court records, liens, judgments and child support records)
4. Credit Inquires (a list of everyone who has requested your report in the last 2 years)


Your Credit Report Score
Even more than your credit report, lenders want a look at your credit score. It's the simplest, fastest way to determine if you're a good risk and what kind of interest rate to offer. Credit scores sum up all the information in your credit report and represent your credit "rating." Your credit score is on a scale from 300 - 850:

720 - 850 - Best credit

650-720 - Good credit

600-650 - Fair credit

Below 600 - Poor credit

One important reason to check your free credit report online is to learn your credit score. Keep in mind that you will usually have to pay to see your score (the bureaus are not required to provide those free!) If you want to see your credit scores for free, you can find various offers online that provide them as part of a package.

Why should you care what your credit score is? A good credit score saves you money because you receive lower interest rates. It's easier to negotiate for the best loan terms. You may receive preferential rates on other services such as insurance premiums. It is essential to your future financial health that you begin building better credit scores.

Credit scores are calculated by using a mathematic formula that rates your credit report. Each credit bureau uses its own proprietary program, but they all come from the FICO scoring model. These systems analyze and weight various factors in your credit report, and then assign a number that may predict the likelihood that you'll repay a debt on time.

The higher the credit score, the better the risk you are believed to be. It's not unusual to have 3 different credit scores, because each credit reporting agency computes data slightly differently. It's a common practice for lenders to order all your credit scores, and then use the middle one as a guide.

Free Credit Reports Online
The Internet makes it easy and safe to get your free credit reports and free credit scores. Until late 2005 you were not entitled to see your reports for free. Now that you can, you may visit the official bureau site or use a service that provides upgraded, 3-in-1 reports with free credit scores. In either case, you must validate your identity, usually by knowing your account numbers.

Once your identity is confirmed, your free credit report and score arrives in seconds through secure online channels. Check all your credit reports carefully for errors and make sure your personal information is correct. Viewing your free credit report is considered the first and best defense against identity theft and fraud. Put it on your calendar and do it every year.

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 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

When should you check your Credit Report?

We all know to get a check up with the doctor once a year, and dental twice a year, but how often should you check your credit report health? Just like getting a physical at the doctor to get steps to improve your physical health, you need to do a financial check up to improve your overall credit report health. With the way matters are these days you cannot afford to not stay on top of your financial health. If you want to retire someday you definitely don’t want to be paying higher interest rates on money borrowed because you are not up to date on your credit report history or because you have mismanaged your credit health.

There is lots of advice on the internet to check your credit report once a year, but is this the correct information? This might be a good rule of thumb for someone who does not have any credit out there, or never makes any purchases. Unfortunately most people are doing all the above quite often. Here are triggers for checking your credit report with credit scores.

You have been denied for a credit card, loan, mortgage, or other credit based services.
If your credit was used in the decision process for a loan and you were denied, you are entitled to a free copy of your credit report. Most lenders will send you a letter in the mail listing some of the reason as to why you were denied credit.

Once you get a copy of your credit report and credit scores, review it and make sure you were not denied because of inaccurate information being reported.





You suspect your identity has been stolen
Unfortunately, identity theft is becoming a problem of epidemic proportions. Identity theft can go unnoticed for months, even years. If you discover your identity has been stolen report it to the credit bureaus immediately.

Your are preparing to make a major purchase like a home, car, credit card, or any other credit-based service
Your credit report history and credit scores are the primary factors in the loan approval process. You would be surprised as to what credit report entries would get you denied for a loan. In some cases even a $16.00 medical collection can keep you from getting your dream home.

You are planning to repair your credit or get out of debt or both
Since a credit report contains most if not all of your financial accounts, it’s the best place to start when you are focused on getting financially healthy. You can also easily use the information on your credit report to get your plan started. If you are looking to get out of debt or fix your bad credit report, there is no better place to start than your free credit score 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 and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

What’s in your FICO® Score.

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











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

Payment History

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

Length of Credit History

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

New Credit

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

Amounts Owed

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

Types of credit used

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

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

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

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

Your score considers both negative and positive information on your credit report. Late payments will lower your credit score, but establishing or re-establishing a good payment history will increase your FICO credit score.

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

Items that don’t report to your Credit Report

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

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

What reports to the credit bureaus

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

What does not report to credit bureaus

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

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

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

FTC Credit Score FACTS

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







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

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

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

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

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

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

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

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

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

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

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

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

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

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

Save Money becasue of Good Credit Scores.

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

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

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

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

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

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

Why you need to know all 3 Credit Scores

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










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

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

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

Why it’s a “Good Time to Buy a Home.”

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

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






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




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

With my Credit Score can I get a mortgage?

Are you wondering if you can get a mortgage with your current Credit Score? I am sure everyone is sick of hearing about the current credit crunch. It is a never ending cycle in the lending industry. The banks loosing up and everything starts to foreclose. The banks tighten up and less people are buying homes because they don’t have the credit to buy with all the new restrictions. Either way the “American Dream” of home ownership is always on our minds. It’s that one common thread of personal accomplishment that all Americans strive to achieve. I know that most people want a piece of the American pie.
I am going to discuss the current plain old vanilla loans that are available to you, and what it will take to get into one of these loans.

FHA loans
FHA loans have been around since the mid 1930’s, and is the biggest insurer of loans in the world. (FHA), Federal Housing Authority is a government insured loan that is more attractive to bankers because there is less risk. Basically this type of loan is the strongest loan in the current market. The reason for this is the guidelines to get this type of loan are still the same as they were 5 years ago. There is less requirements to get into a FHA loan, and has a minimum down payment requirement. Here are some key points as to why FHA loans are so attractive today and will continue to be one of the top loans out there.
• Low down payment of 3%
• Will Allow Down Payment Assistance, which eliminates you needing 3% down payment
• Low interest rates
• No Credit Score Requirement
• Allows hardship loans, for individuals that have had past credit issues.
• Allows you to get a loan while in a Chapter 13 Bankruptcy, conditions apply.
• Allows you to get a loan with no credit, typically the underwriter will ask for alternate lines of credit.
Examples:
1. 12 month payment history in good standing from three sources.
a. Electric provider
b. Car Insurance provider
c. Day Care
d. Cell Phone Company

This is just some examples of how someone who does not have credit reporting on their credit report can use alternate sources of payment history to show creditworthiness. You cannot do this with Conventional loans that are backed by Freddie Mac and Fannie Mae.

Conventional Loans
Conventional loans are loans that are not insured by the Federal Government. They are loans that are secured by government sponsored entities, such as Freddie Mac and Fannie Mae. These types of loans are stricter in the approval process, and are typically run through an automated software process. This process either says “yes” or “no.” With all the current tightening up in lending, this particular loan is less attractive for borrowers with credit issues and low credit scores. With all the current foreclosures and the tightening up with Mortgage Insurance companies, there is a credit score requirement of 620 or above with conventional loans currently.

Since we are going through obvious changes in lending currently, it is very important you know where you currently stand with your credit score. There are some changes going on in FHA as well, even though FHA does not have a credit score requirement the bank that buys these loans may. So if you have low credit scores, you might need to increase that score even to get a FHA loan in this current market. Get a current copy of your free credit score report, and if you have issues there has never been a better time than now to work on your credit so you can buy in the near future.

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

Fast Free Credit Report Repair

Credit Report Repair is a huge business currently. There are credit repair companies opening up all over the U.S. With all of the credit issues our country faces as a result of foreclosures, high credit card debt, loss of jobs and an economy going into a recession, credit repairs companies are having a field day. According the FTC most credit repair companies prey on the desperate in hopes of a miracle. The FTC claims that self help is best.

Check your Credit Report
Don’t worry checking your free credit score report does not affect your credit score. The first step after you have had some issues in the past is to pull a copy of your credit report with all 3 credit scores. This type of report will show you what is on there. That way you can start the negotiating process. Contrary to popular belief, you cannot get collections; charge offs, judgments, foreclosures, or slow pays removed from your report. Alls of these types of derogatory matters stay on your report between 7 to 10 yrs.

How to negotiate
Once you have pulled a copy of your credit report with scores, now you can determine which collections to pay off. Always start with the small collections. If you have a collection that says you owe $450.00 to OSI, which is a medical collection company, offer them $150.00. Make sure if you offer them a amount you can afford you follow through with the agreement. After you have come to an agreement, ask for a letter to delete from the Bureaus. If you are able to get a letter to delete from the bureaus, then you can send this letter to all 3 credit bureaus to delete the collection. This is top priority. If you cannot get the collection company to give you a letter to delete, then make sure you get the letter they provide. Sometimes these collection companies will not update the bureaus like they are required by law. Typically what they will provide depending on the agreed upon negotiations, is a letter that says either paid in full or settled.

Check for inaccurate information
Along with paying off debt you owe, you also need to check for information that is not correct. Like collections or obligations that are not yours. This is very common on credit reports. If there is information on your credit report that is incorrect, disputes it on line. Here is a good place to do this. www.creditscorequick.com/sitemap. Some professionals recommend disputing via certified mail, but we have got the same results via on-line dispute, plus it’s faster. Now if you need to send in a letter to the credit bureaus, then you have to send the letter along with the dispute via certified mail. The disputing process depends on the situation of the collections. For example: if you filed a Chapter 7 Bankruptcy, and it’s been on your credit report for more than 10 yrs, you can dispute this on line. This is because Chapter 7 Bankruptcies are only suppose to be on your report for 10 years from original file date. You don’t need letter to dispute this because the credit bureau can call and verify original file date.

Revisit your Credit Report
Once you have knocked out a bunch of collections and charge offs re-pull your report. Don’t pull it until at least 90 days after you have paid a bunch of collections. The reason for doing this is you want to make sure these companies are updating the credit bureaus. If is very common for collections companies not update information like they are required to do. You also want to give the collection companies time to update as well. Usually they will take 30 to 60 days to send in the necessary information to update your credit report. Give it some time, and with a little hard work you will be able to revive your bad credit.

Re-establish credit
While you are taking care of old debts, you need to be establishing new ones. Yes, you heard me correct, in order for your credit scores to increase you need some good credit reporting as well. The quickest way to get this going is to get a secured credit card. Orchard Bank has one of the best credit cards, which will allow you to establish credit, even after a bankruptcy. The reason this is so important is because you began the process of good credit reporting to all 3 credit bureaus. It will not hurt to get a couple of secured credit cards. Once you have some good payment history on these cards you will get offers from other credit card companies. The one thing you want to remember is don’t make the same mistake twice. Use your credit cards with care, and make sure you are never late on them. If you are late then you defeat this entire process.

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

Survive the Current Credit Crunch

It’s not hard to see that our country is in turmoil currently. You can’t turn on TV without hearing about people loosing there jobs, gas prices being high, recession, foreclosures, and banks going out of business. I figured with this article I would give some tips to protect you and your family’s credit score report. This is probably one of most important times in our history of credit, to make sure you are saving and your credit score is secure.

Personal Finance
A economic downturn could affect your personal savings, investments, and even your job. There are precautionary measures you can take to survive such events.
• Cut back on expenses that are unnecessary, such as cable TV, eating out, frivolous spending, etc……..
• Save 6 months worth of salary in savings account.
• Reduce your Home owner’s insurance policy, shop around for better premiums.
• Reduce insurance costs on your cars.
• Bargain shop for food, clothes, etc….

These are some savings tips that will help you financially with our current economic downturn that we are going through.

Refinance your 15 yr Mortgage
Over the years a 15 yr mortgage might of made since, but of course you could of paid off your mortgage just as quick on a 30 yr mortgage without the pressure of a 15 yr amortized payment.

Equity in your Home
If you currently live in a home and you have equity you might consider tapping into some of the equity for cash on hand. It would be much harder to get a home equity loan if you lost your job.

Rebuilding your credit
If you have had some bumps and bruises, such as a bankruptcy, foreclosure, late payments or collections you don’t have to suffer for the next 7 to 10 yrs. Immediately after such credit issues start rebuilding your credit with secured credit cards. Make sure you have good rental history and save as much money as possible. You really need at least 3 lines of credit reporting, so if yiou can get 3 secured credit cards I would recommend applying for them.

Tax Refund
If you are receiving a tax refund this year make sure you put that towards a debt with high interest charges or into a interest bearing emergency account.

Housing
If you are having issues making your mortgage payment or concerned about a foreclosing on your home here are some number to contact that may be able to assist you. Also make sure you communicate with your current lender as well.
• Home Ownership Preservation – 888-995-HOPE
• Housing and Urban and Development – (888) 569-4287

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

I have no credit scores – How do I establish credit scores?

If you have no credit scores due to being new to the credit arena or you have just been a cash person all your life there is hope for you. There is one sure way to get the credit score calculated in about 4 to 5 months. In this article I will talk about how to establish good credit scores for a healthy credit report.

Secured Credit Cards
A lot of people don’t know this but secured credit cards are the quickest way to establish credit. The reason for this is you give the bank money to secure credit that reports to all 3 credit bureaus. Typically you need about two cards to get the ball rolling. After 4 to 5 months of reporting “bam” you have credit scores. Typically creditors like to see 3 lines of credit reporting for a minimum of 12 months with good payment history. With this type of activity on your credit report, reporting to Experian, TransUnions and Equifax is one of the recipes for success. You will not achieve credit scores if you can not get someone to extend credit to you. That is the secret behind applying for a secured credit card to start the road to establishing this wonderful three digit life altering number.

Here is an example of a mix of credit that Fair Isaacs scoring model uses to determine your risk which ultimately determines your scores.











Buy a house
Once you have about 12 months of rental history, with paying your utilities, and your secured credit cards on-time you will be able to buy a house. Of course you need to qualify for a loan with your current income. Getting a house is not as hard as one might think. If you have a two year work history and have 3 lines of credit like I mentioned earlier you can buy a home. Typically the type of loan you will qualify for is FHA. This is a great first time buyers program. Buying a house will help you get a mix of credit reporting on your credit report. This is around 10% of your overall score. When creditors extend credit to you they like to see that you own a home as opposed to renting.

Keep Credit Card Balances low.
Once you have got secured credit cards reporting on your credit report make sure you keep the balances below 30% of a your secure credit amount.
Example:
Secured Amount: $300.00
Balance at 30%: $90.00

This will keep your scores where they need to be once you establish them. After about 6 to 12 months you can request a limit increase. This is another sure way to increase your credit scores.

Get a car loan.
Getting a car is actually easier than getting just about any other credit. There are all types of lenders out there willing to loan you money on a car loan. You might try getting a loan for a car to establish credit as well. Most car lenders report the note to all 3 credit bureaus. This is another way to get your scores rolling as well. Make sure it’s not some small tote the note establishment that does not report to the bureaus. Make sure the loan is reported to all 3 credit bureaus.

Conclusion: If you follow this advice you will be well in your way to establishing your credit scores. If you are unsure if you have scores get a copy of your free credit score report today.

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

Do you need your Credit Scores with Credit Report?

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

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

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

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

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

* Excellent: over 750

* Very Good: 720 or more

* Acceptable: 660 to 720

* Uncertain: 620 to 660

* Risky: less than 620

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

Does Credit Inquires hurt your Credit Score?

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


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

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

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

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

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

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


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

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







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

Warren Buffets Credit Score is not above Average

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

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

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

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

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

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

Check your Credit Report before an Employer Does.

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

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

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

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

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

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

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


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






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