Posted by admin on Mar 16, 2010 in
Credit Tips
Have you ever had your credit score crash? I thought so.
We’ve all been surprised by credit reports that weren’t as great as we wanted
them to be.
Here are ways to make sure your credit is headed for bad news (and the ways
to have good news):
1. Don’t Monitor Your Credit
If you know you’re going to be buying a car or home in the next couple of years, it is always good to monitor your credit so that you can know about any potential bad credit marks that might show up in advance of your big purchase.
Many purchasers of a home or car are surprised at the last minute that they don’t qualify for the best credit possible. This is because their loan officer pulls their credit report right before their purchase, with little time for credit repair.
Good news: Credit Bureau monitoring services like Equifax ScoreWatch, Experian’s Credit Manager and Transunion’s TrueCredit will help you monitor not just one but all three credit scores from the major credit bureaus. Monitoring your score in advance can save you thousands.
2. Close All Your Credit Cards (or better yet don’t apply for any)
If you have no credit cards because you closed them all (or because you never applied for them), you are actually penalized 30-50 points or more in your credit score. Credit scores are higher when the credit bureaus can see that you have been offered credit in the past. They see each credit card or line as a “vote” for your credit worthiness. It is usually good to have at least three credit cards or credit lines open. It doesn’t matter if you are using them or not. Read more...
Tags: Crash, Credit, Score, Watch, Ways
Posted by admin on Mar 13, 2010 in
Credit Tips
Everyone needs credit – whether you think so or not. These days you can’t do much without a credit card of some kind. It is nearly impossible to rent a car, book airfare or a hotel room, without a credit card of some kind. That is why it’s important to stay on top of your credit rating and do what you can to improve it. The reason most people do not is the rules that govern that little number are never actually revealed – most people only learn the hard way when they do things to push that number down. It would be nice if they actually taught you about how credit really works in school, but it just doesn’t work that way.
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The first thing everyone should be doing, at least every few months, is order a copy of your credit report. Order it directly from one of the 3 main credit bureaus – do not order it from a third party unless you know and trust that company. There are tons of scams out there, so you have to be careful. Once your data is leaked or stolen it’s a real pain in the you know what to undo any damage that might be done. And on top of this, the worries can go on forever, because the data on the internet lives on and is resold to other criminals. Once you have your copy, look at every item on it and make sure it is actually accurate. Meaning all open accounts you recognize and know, the reported balances are correct (mistakes do happen), and there is not stuff on there that should not be. Usually factual mistakes are easier to clean up (misspellings, wrong balances, closed accounts that are listed open etc). If you discover any of these, you will need to write a letter outlining the issues and mail it in. This is stuff you can easily do yourself, and repair your credit problems that are due to clerical issues. Read more...
Tags: Boost, Credit, Score
Posted by admin on Mar 7, 2010 in
Credit Tips
Why do I need to boost my credit score?
There are tons of answers to this question but the following two reasons alone will help you realize that a poor credit score will literally and figuratively lead you to nowhere:
1. With a low credit rating, you will not be able to buy a car, purchase or rent a home, get insurance or take out a loan of any kind because lenders are getting more conservative and more strict with their terms and conditions every day. They only lend to those who hold a concrete proof that they are capable of making payments. The ultimate evidence they consider is your credit score.
2. Employers are also more careful in hiring new workers. They now screen each job applicant’s credit report and may base their decision to employ on this factor at their discretion.
By now, you are certainly convinced that a good credit score is one of the things you should possess in order to see yourself living a brighter future.
I have a poor credit score. Will I be in deep financial trouble for life?
The answer is a big NO. No, you do not have to bear the cross of poor credit for the rest of your life. In fact, there are guaranteed ways to improve and most importantly, boost your credit score.
Experian, Equifax and Trans Union are three major credit bureaus that report your credit information to lenders when necessary. The decision whether to grant you a loan or not largely depends on the credit bureau report. Read more...
Tags: Boost, Credit, Fastest, Score
Posted by admin on Mar 4, 2010 in
Credit Tips
Got bad credit? Here are four tips on how you can clear up your credit score:
Tip # 1: Save early, save often
One of the best ways to ensure this your credit rating stays good is to save money each month. Whether you are able to save $25 a month or $200 or even more, saving and investing your savings will prepare you for credit emergencies, will get you out of overspending, and will allow you to build investments this may assist you in later years.
Tip # 2: Credit impacts mortgage rates which impacts your monthly payment
A few points on a credit score may mean the difference among a lender offering you a prime rate reserved for the best credit risks and the worse interest rate offered to less than prime customers. That may amount to only a few percentages in uncommon loan rates, however this may make a vast impact, especially on a large purchase. For example, a few percentage points on a long-term fixed-rate loan may mean the difference among tens of thousands of dollars saved – or tens of thousands of dollars overspent.
Tip # 3: Beware of expenses and credit you don’t use. It is simple today to apply for a store charge card this you forget all about in three years – however this account will remain on your credit report and affect your credit score as long as it is open. Having credit lines and credit cards you don’t need makes you seem like a worse credit risk considering you run the risk of “overextending” your credit.
Tip #4 Download free credit report Read more...
Tags: Credit, Repair, Score, Scores, Tips
Posted by admin on Feb 24, 2010 in
Credit Tips
Establishing a good credit history has never been as important as it is today.
It’s not just that you’ll need good credit to get decent rates when you’re ready to buy a home or a car. Your credit history can determine whether you get a good job, a decent apartment, a deal on your cell phone and reasonable rates on insurance. One seemingly minor misstep — a late payment, maxing out your credit cards — can haunt you for years.
If you’re just starting out, you have a once-in-a-lifetime opportunity to build a credit history the right way. Here’s what to do and what to avoid.
Check your credit report
You’ll first want to see what, if anything, lenders are saying about you. That kind of information is contained in your credit report at each of the three major bureaus: Equifax, Experian and Trans Union. You’re entitled to a free annual look at your reports from AnnualCreditReport.com.
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Credit reports are used to create your credit scores, the three-digit numbers that lenders typically use to gauge your creditworthiness. Lenders also may look at the reports themselves, as may the landlords, employers, insurers and utility companies who use credit to evaluate applicants.
Can you have a credit report if you’ve never had credit? Maybe.
Somebody else’s information could be mixed in with your report, either through a credit bureau mistake or because of identity theft; i.e. someone using your personal information to open bogus accounts.
If that’s happened to you, you’ll need to clean up your credit report before trying to apply for new accounts. The Federal Trade Commission’s identity-theft site has information that can help.
Establish checking and savings accounts Read more...
Tags: Building, Credit, From, Score, Scratch