insurance44me asked:
www.newlifefinancial.org
SPRAGUE
March 31, 2009
March 30, 2009
Where to start when you want to rebuild or fix your credit
renttoownhomesco asked:
Lori Jake with www.torebuildcredit.com . You can download your free Ebook on how to pull your credit from all 3 credit bureaus. You need to know what your credit report says before you can start improving. It is the first step to understanding credit and building good credit. … “bad credit” “better credit score” “clean credit up” “credit help” “credit help score” “hurt credit” “how to fix credit” “repair credit report” www.torebuildcredit.com
SANTANA
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March 27, 2009
Cathy Taylor asked:
Why do some people get offers for pre-approved credit cards and others don’t? What do car dealers know about your financial health that you don’t know? The answer is your credit score.
Your credit score is a number generated by a mathematical formula to estimate how likely you are to pay your bills. Based on the information in your credit reports from the three credit bureaus, Equifax, Experian, and TransUnion, your credit score has been a factor in your ability to qualify for loans and good interest rates for more than twenty years. Lenders compare your credit report with millions of others to determine your score.
While there are a variety of credit scoring methods available to lenders, the most widely used is the FICO score. Based on a scoring system developed by Fair, Isaac & Co., FICO scores range from approximately 300 to 800 points and are provided to lenders by the three credit bureaus. You also have access to your FICO scores but will be charged a fee by each credit agency providing your report.
According to Fair Isaac, the credit scores of the American public are divided as follows:
• 499 and below 1 percent
• 500-549 5 percent
• 550-599 7 percent
• 600-649 11 percent
• 650-699 16 percent
• 700-749 20 percent
• 749-799 29 percent
• 800 and above 11 percent
A score of 720 or higher will probably get you the best interest rates on a home mortgage. Your credit card company looks at your credit score to decide whether or not to raise your credit limit or charge you a higher interest rate. The higher your credit score, the better you look to lenders and the lower your interest rates.
Several factors affect your credit score including your payment history, the length of your credit history, any outstanding debt, how long and how often you’ve had derogatory credit information, such as bankruptcies, charge-offs, or collections, and the amount of credit you are using compared to the amount of credit available to you.
So how do you raise your credit score? Well, the first thing to do is to order a copy of your credit report with the score included from each of the three credit bureaus. Review your reports and note any discrepancies. Correcting blatant errors is the first step to repairing your credit, and changes can take up to three months to be recorded.
Next, remember to pay your bills on time. It may seem like a small thing at the time you’re writing that monthly check, but an accumulation of timely payments says a lot to a potential lender looking for a reliable client. Prompt payments in the last few months can actually make a big difference in your credit score.
While collections, bankruptcies, and late payments have the greatest negative effect on your credit score, your debt is a factor as well. Keeping your account balances between 25% and 50% of your available credit signals a responsible borrower. For example, if you have a credit card with a $2000 limit, keep your debt below $1000. For this reason, consolidating your credit card debt can actually lower your credit score, as it raises the ratio of your debt to your available credit. The best solution is to simply pay off your existing cards as quickly as possible.
Excessive inquiries over a short period of time also damage your score. When lenders, banks, or credit card companies check your credit report, the inquiries are recorded. Several of these “hard inquiries” in the same time period may signal to other lenders that you are opening multiple accounts due to financial difficulty.
If you discover that you have accounts on your report that you didn’t open, or your public records such as tax liens or judgments that are not yours, you may be a victim of identity fraud. It is up to you to deal with the damage that can happen to your credit score because of this criminal activity. Being aware is your first step, but when the items end up on your report, you have no alternative but to clean it up.
Overall, give yourself time to build a good credit score and even more time to correct serious problems. The length of your credit history is another determining factor in a good score. Lenders want to know that you are able to maintain prompt payments and good standing for a period of time. So check your reports yearly, do your due diligence, and your score can improve.
RUTHERFORD
Why do some people get offers for pre-approved credit cards and others don’t? What do car dealers know about your financial health that you don’t know? The answer is your credit score.
Your credit score is a number generated by a mathematical formula to estimate how likely you are to pay your bills. Based on the information in your credit reports from the three credit bureaus, Equifax, Experian, and TransUnion, your credit score has been a factor in your ability to qualify for loans and good interest rates for more than twenty years. Lenders compare your credit report with millions of others to determine your score.
While there are a variety of credit scoring methods available to lenders, the most widely used is the FICO score. Based on a scoring system developed by Fair, Isaac & Co., FICO scores range from approximately 300 to 800 points and are provided to lenders by the three credit bureaus. You also have access to your FICO scores but will be charged a fee by each credit agency providing your report.
According to Fair Isaac, the credit scores of the American public are divided as follows:
• 499 and below 1 percent
• 500-549 5 percent
• 550-599 7 percent
• 600-649 11 percent
• 650-699 16 percent
• 700-749 20 percent
• 749-799 29 percent
• 800 and above 11 percent
A score of 720 or higher will probably get you the best interest rates on a home mortgage. Your credit card company looks at your credit score to decide whether or not to raise your credit limit or charge you a higher interest rate. The higher your credit score, the better you look to lenders and the lower your interest rates.
Several factors affect your credit score including your payment history, the length of your credit history, any outstanding debt, how long and how often you’ve had derogatory credit information, such as bankruptcies, charge-offs, or collections, and the amount of credit you are using compared to the amount of credit available to you.
So how do you raise your credit score? Well, the first thing to do is to order a copy of your credit report with the score included from each of the three credit bureaus. Review your reports and note any discrepancies. Correcting blatant errors is the first step to repairing your credit, and changes can take up to three months to be recorded.
Next, remember to pay your bills on time. It may seem like a small thing at the time you’re writing that monthly check, but an accumulation of timely payments says a lot to a potential lender looking for a reliable client. Prompt payments in the last few months can actually make a big difference in your credit score.
While collections, bankruptcies, and late payments have the greatest negative effect on your credit score, your debt is a factor as well. Keeping your account balances between 25% and 50% of your available credit signals a responsible borrower. For example, if you have a credit card with a $2000 limit, keep your debt below $1000. For this reason, consolidating your credit card debt can actually lower your credit score, as it raises the ratio of your debt to your available credit. The best solution is to simply pay off your existing cards as quickly as possible.
Excessive inquiries over a short period of time also damage your score. When lenders, banks, or credit card companies check your credit report, the inquiries are recorded. Several of these “hard inquiries” in the same time period may signal to other lenders that you are opening multiple accounts due to financial difficulty.
If you discover that you have accounts on your report that you didn’t open, or your public records such as tax liens or judgments that are not yours, you may be a victim of identity fraud. It is up to you to deal with the damage that can happen to your credit score because of this criminal activity. Being aware is your first step, but when the items end up on your report, you have no alternative but to clean it up.
Overall, give yourself time to build a good credit score and even more time to correct serious problems. The length of your credit history is another determining factor in a good score. Lenders want to know that you are able to maintain prompt payments and good standing for a period of time. So check your reports yearly, do your due diligence, and your score can improve.
RUTHERFORD
Comments Off
March 25, 2009
How many credit cards is too much to affect your credit score?
ronnin72 asked:
I am going to ask another question regarding which CC should I add to my credit card profile to add to my rewards. I have excellent credit, pay my balance in full each month, and I use my CC to pay for everything I can to rack up points/miles etc.
I am going to ask another question regarding which CC should I add to my credit card profile to add to my rewards. I have excellent credit, pay my balance in full each month, and I use my CC to pay for everything I can to rack up points/miles etc.
I am at a point where I want to increase my points and miles so there are some options. The question is, what is too much. I basically share a VISA with my wife, and have an older VISA that i keep. I realize that you should keep older credit cards for history. I want to add at least one AM/EX either the Starwood points, or the Delta Miles. I also might switch our Cap1 card to the signature to get 2 points for every $1 spent, instead of 1.25 for $1. That is a new card, not a switch. And recently, I have received letters for UNITED miles (20,000 bonus) and AA Miles (21,000 Bonus). I would love to use those just to add to my miles on those flights. Could I add 3-4 cards without hurting my excellent credit? I will not rack up debt.
SALAS
March 23, 2009
Ryan J Bell asked:
The factors on your credit report that are used to determine your credit score are broken down into 5 categories, each with it’s own weight on the equation.
1. payment history (35%)
2. amounts owed (30%)
3. length of credit history (15%)
4. new credit (10%)
5. types of credit used (10%)
Payment History
One of the primary reasons that the credit scoring system was developed and why lenders still use it is to determine the likelihood that they will be repaid the money you borrow. Therefore, it makes sense that your payment history would be a mjor factor in your credit score. This aspect is affected negatively by late payments, accounts sent to collections, and bankruptcies. The more recently any of these have occured, the larger the effect on your score.
Amounts Owed
Outstanding debt is the next most important measure of your ability to pay back your obligations. Having credit cards, owning a home or car, or going to college means you probably have some debt on your record, which is okay. However, this part of your score can be affected by maxing out credit cards, or leaving them open with no activity. To quickly raise your credit score, pay off credit cards with the highest interest rate or where you have late payments first. It is good practice to keep credit cards at 25% of less of their balance.
Length of Credit History
The length of your credit history is based on the oldest account in your credit file. For many people this is their first credit card, a student loan, or possibly a car loan or mortgage. The shorter your credit history, the bigger the risk you represent to lenders. You should also be aware, however, that as your credit history gets longer and you have more accounts opening and closing, you are also at a greater risk for having misinformation added to your report.
New Credit
10 percent of the score is based on new credit. Typically your score will go down for awhile after you have opened up a new line of credit. The major factor of this percentage comes from inquiries. There are two types of inquiries; soft and hard. A soft inquiry does not affect the credit score and usually involves a quick glance at your score. A hard inquiry does lower your credit score and typically is a result of actions initiated by you in an effort to obtain credit. If you open 2 new credit card accounts, take out a private bank loan, and attempt to buy a new car, your score will go down…the good thing is that your score will rebound from these inquiries.
New Credit
Hard inquiries do affect your score, and lower it by a number of points for each inquiry. Hard inquiries are generally the result of you pursuing new credit opportunities. This is mostly a defense against you obtaining a good credit score and opening 100 new credit accounts all at once. After 10 inquires or so your score would be significantly lowered to the point where lenders would begin to reconsider your credit. The good news is that hard inquiries do not affect your credit for very long, and your score will return to normal after they expire.
Types of Credit Used
The final part of your score is based on the types of credit accounts you have. These include:
1. Revolving (credit cards, lines of credit, HELOC)
2. Loans
3. Public Records (bankruptcy, liens)
4. Collections
Some types of accounts can really help you score as long as you are paying them on time such as a student loan, car loan, mortgage, and credit cards. If you have ever had a public records such as a bankruptcy, tax lien, or a collection, your credit score is going to be negatively affected. Beware of companies that claim that they can remove a bankruptcy or a collection off your credit report. These items will eventually not be detrimental to your credit score so time often is the best answer for dealing with these actions in your credit history.
Some of the account types can contribute positively to your credit score as long as they are paid on time. For instance, student loans, home mortgages, or credit cards, if paid on time, can create very healthy credit. However, accounts like tax liens, collections, or bankruptcy will affect your credit negatively. If you have any of this second type of account on your record and you know it is inaccurate or fraudulent it is a good idea to contact a credit repair specialist to have it removed.
The bottom line in understanding your score is that lenders want to loan to people who know how use credit responsibly. After all, lenders only make money when people use credit, and when they pay it back. Therefore, if your credit history reflects that you make proper use of credit and pay back your obligations, your score will reflect this to lenders.
POWERS
The factors on your credit report that are used to determine your credit score are broken down into 5 categories, each with it’s own weight on the equation.
1. payment history (35%)
2. amounts owed (30%)
3. length of credit history (15%)
4. new credit (10%)
5. types of credit used (10%)
Payment History
One of the primary reasons that the credit scoring system was developed and why lenders still use it is to determine the likelihood that they will be repaid the money you borrow. Therefore, it makes sense that your payment history would be a mjor factor in your credit score. This aspect is affected negatively by late payments, accounts sent to collections, and bankruptcies. The more recently any of these have occured, the larger the effect on your score.
Amounts Owed
Outstanding debt is the next most important measure of your ability to pay back your obligations. Having credit cards, owning a home or car, or going to college means you probably have some debt on your record, which is okay. However, this part of your score can be affected by maxing out credit cards, or leaving them open with no activity. To quickly raise your credit score, pay off credit cards with the highest interest rate or where you have late payments first. It is good practice to keep credit cards at 25% of less of their balance.
Length of Credit History
The length of your credit history is based on the oldest account in your credit file. For many people this is their first credit card, a student loan, or possibly a car loan or mortgage. The shorter your credit history, the bigger the risk you represent to lenders. You should also be aware, however, that as your credit history gets longer and you have more accounts opening and closing, you are also at a greater risk for having misinformation added to your report.
New Credit
10 percent of the score is based on new credit. Typically your score will go down for awhile after you have opened up a new line of credit. The major factor of this percentage comes from inquiries. There are two types of inquiries; soft and hard. A soft inquiry does not affect the credit score and usually involves a quick glance at your score. A hard inquiry does lower your credit score and typically is a result of actions initiated by you in an effort to obtain credit. If you open 2 new credit card accounts, take out a private bank loan, and attempt to buy a new car, your score will go down…the good thing is that your score will rebound from these inquiries.
New Credit
Hard inquiries do affect your score, and lower it by a number of points for each inquiry. Hard inquiries are generally the result of you pursuing new credit opportunities. This is mostly a defense against you obtaining a good credit score and opening 100 new credit accounts all at once. After 10 inquires or so your score would be significantly lowered to the point where lenders would begin to reconsider your credit. The good news is that hard inquiries do not affect your credit for very long, and your score will return to normal after they expire.
Types of Credit Used
The final part of your score is based on the types of credit accounts you have. These include:
1. Revolving (credit cards, lines of credit, HELOC)
2. Loans
3. Public Records (bankruptcy, liens)
4. Collections
Some types of accounts can really help you score as long as you are paying them on time such as a student loan, car loan, mortgage, and credit cards. If you have ever had a public records such as a bankruptcy, tax lien, or a collection, your credit score is going to be negatively affected. Beware of companies that claim that they can remove a bankruptcy or a collection off your credit report. These items will eventually not be detrimental to your credit score so time often is the best answer for dealing with these actions in your credit history.
Some of the account types can contribute positively to your credit score as long as they are paid on time. For instance, student loans, home mortgages, or credit cards, if paid on time, can create very healthy credit. However, accounts like tax liens, collections, or bankruptcy will affect your credit negatively. If you have any of this second type of account on your record and you know it is inaccurate or fraudulent it is a good idea to contact a credit repair specialist to have it removed.
The bottom line in understanding your score is that lenders want to loan to people who know how use credit responsibly. After all, lenders only make money when people use credit, and when they pay it back. Therefore, if your credit history reflects that you make proper use of credit and pay back your obligations, your score will reflect this to lenders.
POWERS
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I need help understanding credit card terms?
SKYWARN Certified storm spotter asked:
I need help understanding what APR and the other terms of the credit cards mean.
I need help understanding what APR and the other terms of the credit cards mean.
Here’s the credit card info: http://www.firstusa.com/cgi-bin/webcgi/webserve.cgi?partner_dir_name=cac_aspca&page=index
BOUDREAUX
Scrubs – End Credit Score (Credits Theme)
seaned1916 asked:
The short theme played at the end of each episode of Scrubs (composed by Jan Stevens); along with random pictures I found, enjoy! =)
STAMPER
March 20, 2009
Credit Restoration, Repair Credit Score, Rebuild Credit
AttractiveCredit asked:
www.AttractiveCredit.com or call 800-605-9085 for FREE consultation. Please rate, subscribe and comment. Thanks! Credit Restoration, Repair Credit Score, Rebuild Credit, credit repair, improve credit, improve credit score, increase credit score, fixing credit, rebuilding credit, fast…
HAWES
March 18, 2009
Credit Monster asked:
The first thing you need to do in order to improve your credit score is to find out what information the credit companies have in your account. Once you have all the information you can devise a plan on what to do to increase your score. There is no better place to find out the information from the credit companies than www.creditscoremonster.com.
There is no sure fire way to increase your score quickly but there are things that you can start doing immediately that will help in the long run. One of the main things that you need to do to increase your score is to start paying your bills on time, every time. Remember that some companies have grace periods but they vary and they may report a late payment even though it was only a day late. This is why it is critical to get your payments there on time.
Keeping your account balances low will also help increase your score. One trick that you can do is to move your balances around and spread the debit among all your credit cards. It does not help to have one card almost maxed out and several cards with no balance at all. Evening out your usage is beneficial when calculating your credit score. You are not spending less just spreading the debit out.
There are some common sense ways to improve your credit score. One for instance is to pay down your debt. This does not mean closing out accounts. You do not want to close your accounts, just pay them down. When the score is calculated it looks at how much available credit do you have compared to how much credit you are carrying. If you close accounts it reduces the amount of available credit to you so the same amount of debt effects the calculations differently.
Fix the errors you have found on your credit reports. Look for accounts that aren’t yours, late payments that are not late and debts that you have paid off that were not removed from your account. Some companies are quick to report deficiencies to the credit companies but take their time removing bad marks from your record. It is up to you to watch this and ensure that your information is kept up to date and clean. You do not need to hire a company to help remove bad items from your accounts. Credit Score Monster has links available to start the process of contesting items on your reports.
Remember the first thing you have to do in order to clean up your credit reports is to get that information in your hand. Without know what your scores are there really is no sense in trying to clean up your records. Purchase your three credit reports from Credit Score Monster to get you on your way of increasing your credit scores and ultimately saving you thousands of dollars on your next major purchase.
HARMS
The first thing you need to do in order to improve your credit score is to find out what information the credit companies have in your account. Once you have all the information you can devise a plan on what to do to increase your score. There is no better place to find out the information from the credit companies than www.creditscoremonster.com.
There is no sure fire way to increase your score quickly but there are things that you can start doing immediately that will help in the long run. One of the main things that you need to do to increase your score is to start paying your bills on time, every time. Remember that some companies have grace periods but they vary and they may report a late payment even though it was only a day late. This is why it is critical to get your payments there on time.
Keeping your account balances low will also help increase your score. One trick that you can do is to move your balances around and spread the debit among all your credit cards. It does not help to have one card almost maxed out and several cards with no balance at all. Evening out your usage is beneficial when calculating your credit score. You are not spending less just spreading the debit out.
There are some common sense ways to improve your credit score. One for instance is to pay down your debt. This does not mean closing out accounts. You do not want to close your accounts, just pay them down. When the score is calculated it looks at how much available credit do you have compared to how much credit you are carrying. If you close accounts it reduces the amount of available credit to you so the same amount of debt effects the calculations differently.
Fix the errors you have found on your credit reports. Look for accounts that aren’t yours, late payments that are not late and debts that you have paid off that were not removed from your account. Some companies are quick to report deficiencies to the credit companies but take their time removing bad marks from your record. It is up to you to watch this and ensure that your information is kept up to date and clean. You do not need to hire a company to help remove bad items from your accounts. Credit Score Monster has links available to start the process of contesting items on your reports.
Remember the first thing you have to do in order to clean up your credit reports is to get that information in your hand. Without know what your scores are there really is no sense in trying to clean up your records. Purchase your three credit reports from Credit Score Monster to get you on your way of increasing your credit scores and ultimately saving you thousands of dollars on your next major purchase.
HARMS
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