Archive for March, 2009
Credit Scores – Damaged Credit Score Quick Fixes
Posted by: admin in Free Credit Reports on March 30th, 2009
Improving your credit score takes time and effort. Damaging it, or ruining it altogether is easier than you might think. All it takes is a slip-up here, a late payment there, and then your credit score is damaged. It doesn’t take much to hurt your credit, either. And, if you’ve made more than your share of credit mistakes, you won’t have many options the next time you are in the market for a loan or a credit card. You’ll pay the price for your misadventures, in the form of high interest rates and exorbitant fees.
The easiest way to hurt your credit is to break any or all of the rules that are important to lenders and creditors, which we’ll go over in detail here.
- Being late with bill payments. One third of your FICO score is based on your bill-paying track record. It’s been said that a payment that’s 90 days late is just as bad as filing for bankruptcy, or a repossession. However, sometimes in life things go wrong and maybe you aren’t able to get that payment out on time.
Most lenders will work with you to a point, and they are usually willing to let an “oops” here and there go. Just try to bring the account current as soon as you can, and don’t skip payments. If you can only afford to pay the minimum, do that. It’s better than doing nothing at all!
If you know ahead of time that you won’t be able to pay on schedule, call your lender and explain your situation. Hopefully, they’ll be understanding and give you a little “wiggle room”. It doesn’t always work, but if you’ve had a history of on-time payments for years, it can go a long way.
» Finish reading this Quick Fixes for Damaged Credit Scores Article - Click Here
Additional Ways to Improve your Credit Score
Posted by: admin in Free Credit Reports on March 28th, 2009
We all know that we’re more than our credit score, but what’s inside doesn’t really matter to lenders, landlords, and even some employers. Many facets of our lives are controlled by that finicky three-digit number, and your score determines your chances of being approved for credit, and the interest rate at which you’ll receive it. Here, a basic breakdown of credit worth, by the numbers:
- 750 and above will get you primo interest rates on loans; you’ll essentially get approved anywhere and everywhere.
- 710 through 750 will get quite a few competitive offers sent your way, though you won’t get as many as a person with a score of 750+.
- 650 up to 710: You’ll get approved, but you won’t get the good rates that your friends with higher scores will get.
- 580-650: Prepare yourself for stricter terms and higher interest rates.
- 580 and below: Basically, if you don’t want to go through a loanshark, forget it!
» Finish reading this Additional Ways to Improve your Credit Score Article - Click Here
Boost your Credit, by Stretching the Truth
Posted by: admin in Free Credit Reports on March 27th, 2009
It’s been said that a white lie never really hurt anyone. We don’t know if that’s true or not, but they might be good for your credit score. Here are a few little lies that may help your FICO. It’s not really being dishonest (there’s enough of that going around lately), it’s more like embellishing your side of the story so financial providers will look more favorably upon you.
Most lenders don’t report every single transaction or late payment. That’s not necessarily something you want to bring to their attention. If you’ve slipped up a few times, and have ended up paying late more than once, and it doesn’t appear on your credit history, just thank the powers that be and make every effort to pay on schedule in the future. Conversely, if your payment history is immaculate, you may want to say something if there’s something lacking on your report. Missing information can make your credit history look not-so-appealing to potential lenders. If a good portion of your accounts are missing some information, a creditor may not have enough info to decide whether or not you’re creditworthy. To flesh out your credit report, call those lenders who aren’t so good at reporting transactions, and ask them to start communicating more about your credit history. Another thing to consider: The reports you’ll receive from each of the three main credit bureaus (Experian, Trans-Union, and Equifax) will most likely contain different information. Just because there’s a blemish on one report, doesn’t mean it will appear on the others.
» Finish reading this Boost your Credit, by Stretching the Truth Article - Click Here
The Perfect Credit Formula
Posted by: admin in Free Credit Reports on March 25th, 2009
Did you know that less than 1% of the United States population has “perfect credit?” The credit scale ranges from 300 to 850, and believe it or not, you too can reach that magical 850. All it takes is the mastery of a few key traits, and you’ll be a part of that 1% in no time:
- Keep the amount owed on all credit accounts less than 30% of your limit.
- Make sure you never have major discrepancies e.g. bankruptcy or foreclosure.
- Keep most of your accounts open for a long time, at least 10 years because you need at least 10 years of positive history to get anywhere close to 800 on your FICO score.
- A few “installments” in good standing e.g. auto loans or mortgage.
- Minimal late payments, overdraw charges, or any other account issues.
In addition to mastering these details, you really need to be checking your credit report at least once a year. This can help ensure that all your information is accurate and up to date. A quick tip, is that from each of the three major credit bureaus, Experian, Equifax, and TransUnion offer you one free peak at your report once a year.
» Finish reading this The Perfect Credit Formula Article - Click Here
Benefits of Checking your Free Credit Score & Report
Posted by: admin in Credit Quick Tips on March 24th, 2009
If you’ve been hearing about free credit report and free credit score offers, you’re probably wondering what the big deal is. Unless you don’t have a problem with paying high interest rates and fees to lenders, you should consider getting some background information about your credit. Consider this, the range of your credit score can affect how much you will pay for your monthly mortgage payment, for example:
If you have a good credit score:
Mortgage Loan Amount: $250,000
Interest Rate: 6.75%
30 Yr Fixed Rate Payment: $1,621
Total After Finance Charges: $333,734
» Finish reading this Benefits of Checking your Credit Report Quick Tip - Click Here
Ten Things That Damage Your Credit Score
Posted by: admin in Free Credit Reports on March 21st, 2009
Your credit score is very important. That three-digit number could decide whether or not you get a house, a car, or sometimes even a job. It’s how potential lenders decide whether or not you’d be credit-worthy. Here, you’ll find out a few things that will negatively influence your score, and what you can do to prevent them.
Always, always try to pay your bills on time. 35% of your FICO score is your bill payment history, and consistently being late with payments will bring your score down. The only thing that’s worse than paying late, is not paying at all. Not paying on time will also result in late fees and other assessments by your credit card company. Paying on time, month after month, will not only keep your score from declining, but may improve it. Not paying for months on end will probably result in your account being charged off, and possibly sent to a collection agency.
Having an account sent to collections is very damaging to your credit score, and also to your future chances of getting credit, because it shows lenders and credit card companies that you don’t fulfill your end of the contract. Paying your bills on time will save a lot of money and stress in the future.
» Finish reading this Ten Things That Damage Your Credit Score Article - Click Here
How to Maintain a High Credit Score
Posted by: admin in Free Credit Reports on March 20th, 2009
A lot of people aren’t exactly sure what their credit score is, or even what it means. Here, we’ll shed a little light on that elusive number.
An individual’s credit score is their FICO number. FICO stands for the Fair-Isaac Corporation, which is the company that first created the formula for attaining the best credit score. Nearly every purchase or bill payment is used to come up with this number. A FICO score is broken down like this: 35% for paying bills on-time, 30% for the ratio of debt to credit limit, 15% for the length of the credit history, 10% for new loan requests, and 10% for existing credit cards and loans. The highest credit score possible is 850, with anything above 700 being considered “good credit”. Having a FICO score of 700 or above is vital to ensure being able to get the best rates on loans and mortgages.
» Finish reading this How to Maintain a High Credit Score Article - Click Here
How to Correct a Credit Report Error
Posted by: admin in Credit Quick Tips on March 18th, 2009
Correcting an error on your credit report may not be as simple as it sounds. You can’t just call someone, report the inaccuracy, and expect it to be erased promptly. Not that it is an exceptionally long process, but, there are a set of crucial details you need to be familiar with in order to present your case.
First thing to consider, is thoroughly reading through your credit report in detail and be sure that any inaccuracies you find are in fact, inaccuracies. Next you need to contact the credit bureau with your concerns, and then they will connect you to the company you need to speak to.
» Finish reading this How to Correct a Credit Report Error Quick Tip - Click Here
The Value of a Sparkling Credit Report
Posted by: admin in Free Credit Reports on March 14th, 2009
Prior to meeting with a lender to request a loan, sign up for a new cell phone service, purchase a car/home, or interview for a job, you should definitely check your credit history. The information on your credit report may influence whether or not you get the loan, cell phone, car/home, or job.
- What Information Shows Up On Your Credit Report?
Your credit report contains information regarding your financial behavior and past/present credit balances. It provides information like when a credit account was opened, the limit or loan amount, monthly payment amounts, and current balance. It will also show whether or not you’ve made payments on time. The report also contains information about bankruptcy, child support, and taxes. This type of information can remain on your credit report for seven years or more.
- What to Do if You Find Errors
If you find that your credit report is inaccurate, investigate immediately. The problem could be a simple error or something very serious like identity theft. The faster you correct the issue, the better. To correct credit errors, first notify the agency you have a dispute with and present them with the information you have to support your finding. Then you wait to see what happens and do what they tell you to do.
» Finish reading this Value of a Sparkling Credit Report Article - Click Here
Do You Have Healthy Credit?
Posted by: admin in Free Credit Reports on March 12th, 2009
In case you didn’t know, the only way to be 100% sure that your credit score is healthy and accurate, is to check your credit report. Your credit report is considered your identity to potential lenders, employers, and anyone looking to invest in you. Here are some great tips to fine tune your credit and boost your likeliness to get a loan.
1) Correct Errors
Once you take the plunge to check your credit report, you may be surprised to find that there are quite a few errors. Relax; this is common for people who don’t stay on top of their financial history. Anyway, correcting the errors will take some time contacting various bureaus and companies, but the time is well spent. With a clean slate, you can start over rebuilding and maintaining your credit.
» Finish reading this Healthy Credit Score Article - Click Here