Archive for the ‘Credit Quick Tips’ Category

Benefits of Checking your Free Credit Score & Report

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

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How to Correct a Credit Report Error

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.

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The Truth Behind Minimum Payments

Don’t be fooled by this month’s surprisingly low minimum payment on your credit card statement. In an attempt to increase their number of minimum payments reached, credit card companies are requiring something around 2% of the total balance, which is quite lower than many companies previously required.

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Avoid Becoming an Identity Theft Victim

A shocking 20,000 people fall victim to identity theft every single day, it certainly makes you think twice about whether or not you may be one of them. The reasoning behind this aw-inspiring statistic is that the majority of people have no clue what is going on with their credit, and seem to not even care.

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Reasons to Check Your Credit Report

There are two main reasons you should check your credit report. First, to detect and protect against identity fraud before you become a victim. And second, to be an educated customer about credit services.

No one thinks that identity theft will never happen to them, so when it does, they are often entirely unaware. Checking your credit report often can help you detect fraud and resolve the issue before it is too late. Furthermore, being educated about credit services can help ensure your financial security, as well as promote an environment for good credit as opposed to fair or decent credit.

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What Is Considered “Good” Credit?

Although the confusion of good or bad credit seems impossible to figure out, it is actually quite simple. For example, to get a loan of any kind, a credit card, or anything of the sort, you would need to have a score of approximately 650 or better. This score is not ideal in the eyes of a lender, but it shows that overall you’re worth the investment. The score lenders are really looking for is anything above 700, which isn’t as hard to attain as you may think.

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Basic Credit Report Score Information

What is a credit score?

Your credit score is a three-digit number, based upon your full credit report. Your credit report includes a history of your debt, bill-paying tendencies and loans, as well as other stats about who you’ve borrowed from, when they received your payment, if you paid early, late and so forth.

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