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Be Ready With A One Time Credit Report

Steven Greenwald — Sun, 04 Jul 2010 08:57:23 +0000

If you are looking to apply for credit for an upcoming major purchase — such as a new home or an automobile — or even if you are looking to add a new credit card to your wallet — perhaps upgrading to a rewards card — then you are going to want to be as prepared as possible before you apply for this credit so there are not any surprises during the application process. The best way to get prepared is to order a one time credit report online and make sure your credit history is intact, that there are no errors and that your credit score is acceptable to the agencies and businesses who extend credit to consumers. The benefits of receiving a one time credit report are vast and can be quite comforting, especially if you find everything to be in order once you receive your report. Among these benefits is that you have the ability to see where you stand as a creditor views you, for instance, how often to make your scheduled payments on time? How much credit do you have and how much are you using? Do you have any derogatory information in your credit history or is everything the credit bureau says you have correct? You can also be able to tell if others have applied for credit in your name by viewing the section that shows you where credit has been applied for in the last 12 months. If you see businesses in that section that you have no idea about, chances are someone might have used your information in an effort to get credit, by knowing this, you can catch it before anything bad happens to your name and credit score. As you can see, everyone can benefit from ordering their one time credit report and because of a law that says you have the right to view what is in your report and dispute any items that are inaccurate, you are able to get at least one free credit report including your credit score every year. This is very important because it allows you to the opportunity to monitor your credit report every year and check for any significant changes that may have occurred. Article By Louis, CardKudos[dot]com

Why you Must Get your Credit Report Errors Fixed

Steven Greenwald — Fri, 02 Jul 2010 11:43:01 +0000

Probably everyone knows that there are three major credit bureaus in the US, which are Experian, Trans Union, and Equifax. People know these three credit bureaus gather information about you on a regular basis from all your accounts, paid and unpaid, and just about any financial obligation you have. But unfortunately, that is pretty much where the knowledge of the vast majority of consumers ends.

FICO Scoring Cards and Your Credit Score

Steven Greenwald — Thu, 17 Jun 2010 07:02:32 +0000

Surely, many consumers would want to have higher credit scores. This is because of the fact that it is actually necessary for any person who uses credit cards to have a stable financial situation. Remember that when you are to apply for a new loan, or when your credit account is evaluated, one of the primary information that will determine this is your credit score. In this case, having a low credit score actually may make your financial situation into a mess.

Therefore, it is necessary that you must know how you are actually scored by different credit bureaus that give credit scores to consumers. In fact, not all consumers right now are aware of the implications of how credit bureaus score their respective credit accounts. The sad fact is, most credit bureaus also make this information secret from most of the American consumers. That is why it is important for you to know about score cards, especially FICO score cards, and how these affect your respective credit scores.

Remember that your credit scores are actually largely determined by score cards. Score cards are a kind of a pee group, in which you are classified according to peers which has more or less the same financial record. In this case, the peer group where you are bracketed would serve as your score card. This would then determine what range of scores you are going to have, whether consistently high or consistently low credit scores.

However, these credit bureaus actually make secret the standards when they would change your credit score. In this case, having a better financial record would not ensure that you will move to a better score card. Plus, moving to a better score card would not also guarantee that you are going to have a better credit score, due to the fact that that you may actually face more difficult scoring standards.

Another scoring mechanism that credit bureaus use is the FICO scoring system. The FICO was named from the Fair and Isaacs Company, which uses a specific kind of credit scoring system. The FICO system also uses peer groups to determine score cards. Such peer groups are actually grouped according to the creditworthiness of a person. In this case, the degree of a creditworthiness of a person would determine its bracket, and likewise, its credit score.

The FICO scoring system actually utilizes 12 scoring cards to help them determine and measure how creditworthy a person is. However, the problem is, the FICO scoring system only divulges three score cards. The rest of the other score cards are still left secret by credit bureaus. The three score cards that they divulged are the following:

1. the presence bankruptcy

2. having thin credit files

3. the relative ageing of credit histories

It is important for you to take note of the fact that not all kinds of peer groupings have the same scoring range to determine the credit scores of consumers. The FICO uses the 350 to 850 scoring range; however, being in bankruptcy makes it impossible for you to reach 850.

Improving Your Credit Score – Tips for Success

Steven Greenwald — Sun, 13 Jun 2010 19:25:41 +0000

Bill Fair and Eric Isaac. Have you heard of them before? They are the F (Fair) and I (Isaac) of FICO. Founded in 1956 these two gentlemen created a particular system of measuring risk that is the most widely used score for industry professionals. Everyone is entitled to know their FICO credit score and there are scores (pun intended) of websites available to help you get yours. Having a good credit score, which is now considered to be in the ballpark of at least 700 points, is the determining factor that decides how much interest you are going to pay on major purchases such as a mortgage, car loans, equity lines, credit cards, and other sources of credit and loan. This three digit number will also decide how much of a credit limit you have been awarded. So what goes into making this vital score that determines the course of our finances? Let me do a simple and basic breakdown. 10% – Recent research into obtaining new credit (i.e. Have you recently been applying for new credit cards?) 10% – The types of credit that you use (Installment loans, revolving, etc.) 15% – Accounts for the length of credit history you have (The longer, the better) 30% – Expresses the amount of debt you have in ratio to the amount of credit you have available. 35% – Getting your payments in on time. Late fees are not the only thing you will be paying for. As you can see, so much of keeping our credit score in good standings is paying our bills on time. Lenders love to know that if they are going to loan you a certain amount of money, they can count on you to be reliable in paying them back. There are other things that affect your credit. Settling on your credit cards and closing the accounts will negatively impact your credit. Letting your account expire because of inactivity will close your account as well. If you call your creditors and ask to be put on a program to pay off the balance of your credit line, they will likely close your account without you knowing it, unless they state otherwise. Tax liens, court rulings, and the number of recent credit checks can also weigh down your credit score. People have figured out ways to increase their credit score in simple ways such as opening new lines of credit with the purpose of increasing their credit debt to available credit ratio. They will do that by opening several department store cards and making sure they do not spend the credit that was given. If you decide to do this to add a few more points to your score beware of fees that the bureau may penalize you for opening so many accounts at once. Other people have gathered together simple facts and procedures to making your credit score improve significantly. If you are interested in learning more about improving your credit score, please see the recommendations tab on my website at http://www.dianathecreditcounselor.com/index.php?p=1_5_Recommendations for more information. May you have happy credit days ahead! Sincerely, Credit Counselor, Diana E. Jones

A Credit Score Indicates To Lenders How Likely You Are To Repay or Default On A Loan

Steven Greenwald — Fri, 11 Jun 2010 04:56:43 +0000

What is your credit score? A credit score or number indicates to lenders how likey you are to repay or default on a loan. The program used to generate this number is very complex. The bureaus use secret calculating techniques to reach these numbers. There are various formulas used. Basically put, your information is entered into a computer. The program calculates the data information stored by the 3 bureaus , it then produces a number, Your FICO score or Credit score. One of the biggest problems with the information used is that over 79% of all credit reports contain inaccurate information. This will then effect the actual FICO number. It is imperative that you keep track of the information found on the credit reports and correct any information that is not correct. You may be suffering just because of inaccurate information. To get the best interest rates your goal should be to have a rating of 720 or higher. By having this rating you can do things like refinance your mortgage at a lower rate, car loans can be obtained at a lower interest rate. You can literally save thousands of dollars monthly, lower down payments for utility deposits, and even have a better opportunity for obtaining certain jobs, (Government Jobs for example). The FICO range is 300-850Excellent – over 750Very good – 720-750Good / ok 660-720Could be risky 620-660RISKY below 620 There are several calculations used for obtaining the FICO number. 35% is calculated based on payment history. Lenders want to know what type of risk you may be. They want to make sure that you can pay your bills on time, based on your past history. 30% is calculated by the amount that you owe. Debt to Credit Ratio (DTCR) is determined by the total available credit divided by the total debt. It is important to try to keep your credit limit to about 30% of the maximum credit allowed.Total credit avail =$2000.00 / total debt $500.00 = 25 %. 15% is calculated by the by the length of time that you have had the credit. The longer the credit history the better. This factor determines how you have spent over a period of time and how well you paid the debt back. 10% is calculated by the number of new account or nquiries that you have. Inquiries can be looked at as if you wanted all the new debt. That you may be setting yourself up to failure to pay your debt. Also, new accounts do not show enough history, there is no proven payment history to make a determination if you are worthy of good payment. 10% is calculated by the “mix” of credit that you have. The “mix shows that you can handle and manage multiple accounts responsibly. Other things that are added to the equation of a FICO score:

They looks for things like stability in your living situation, moving frequently may lower your score.Owning a home may increase you score. Paying your mortgage on time is the most important thing. Do not max out your credit cards. Keep them at least below 50% of the maximum balance allowed, preferably 30%. Limit the amount of cards that you have open. 2-3 is a safe point. More than that may lower you score. Pay your monthly payments on time. What can happen if you have negative items on your credit report.Companies can charge you higher interest rates. The higher you are as a risk the more money they can charge,and the more they make. Having a low credit score can also prevent you from getting hired for a job. Remember “the credit bureau is not your friend”. They work hand in hand with mortgage companies, car loan companies, insurance companies etc. The more interest you pay the more money these companies make. Bottom line. If you have experienced poor credit there are ways to remedy this. You could hire a credit restoration company. However, just remember to do your homework. There are a lot of companies out there that make claims about doing credit repair and only do what you can do yourself for free. See www.FTC.com. Like sending dispute letters etc. You should find a company that has ties with a law firm or attorneys in their organization. They should have some type of money back guarantee to protect thier clients investment. They should be available to answer your questions. They should be legal, moral, and ethical. If you find yourself in credit hell give us a call 888-476-1220 or visit our website www.USACreditCure.com for more information. “Helping America one client at a time”

Top 10 Reasons to Have your Free Credit Score Report

Steven Greenwald — Mon, 24 May 2010 23:07:58 +0000

Your Free Credit Score Report is absolutely the most important piece of mind you need to have these days. How are you ever going to know what is being reported about you if you don’t have a current copy of your Free Credit Score Report. Maybe you are applying for some type of loan and find out to your surprise that you don’t have the credit score you really should have to get the best interest rates. I am going to give the top reasons why you should get a copy every 60 to 90 days. It is to most peoples surprise when they are told NO in regards to the following, or maybe someone stole your identity and you never knew about it. Here are the top reasons.

How To Get Rid Of Bad Information On Your Credit Report By Writing Letters

Steven Greenwald — Sun, 23 May 2010 16:37:13 +0000

Assuming you already have a copy of your annual credit report you may have already found some errors that should be removed. Errors should always be a big concern because they can and probably have affected your credit score, also called a FICO. You can repair your credit with a little bit of help.

Credit Scoring: What is it and How Does it Affect Me?

Steven Greenwald — Fri, 21 May 2010 10:21:54 +0000

In recent years, a credit score has become an invaluable tool in the decision-making process of granting or declining an application for finance. As responsible lenders, banks and financial institutions take into account your personal circumstances in order to try to establish the appropriate level of credit to give to an applicant, and to help them do this, most lenders will calculate a credit score to help assess an application.

Credit Report Service – are Free Credit Report Services Legitimate?

Steven Greenwald — Fri, 21 May 2010 08:15:43 +0000

Can you trust online credit report services? That is the question that consumers are asking today, especially with the hundreds of offers that flood your e-mail in-box promising accurate credit reporting scores with just the click of a mouse.

Watch Out For Certain Credit Repair Services

Steven Greenwald — Tue, 18 May 2010 05:27:33 +0000

Credit repair services claim to erase your bad credit and even create a new legit credit identity for you. While many companies do help to improve your credit rating with a financial strategy, there are many others waiting to take your money out of your pocket.