Contact Credit Bureau Agencies to Increase Your Score!

Whenever it is time for you apply for a loan of any type, your credit is generally pulled. Depending on your credit history, your score may vary from anywhere within the 500s or lower, which is considered very bad to the 700s or higher which is considered excellent. Although many people consider the credit system within the United States to be somewhat cumbersome, it has been in place for many years and does not show any signs of changing soon. If you are trying to contact credit bureau agencies, you might be surprised to find that there are more than one that actually score you and are often looked at by the lending institutions.

The three credit agencies which take care of scoring your credit and ultimately help to determine whether you qualify for a loan are Experian, Equifax and TransUnion. Each of these three credit agencies will provide its own unique number, based on the scoring system that it uses to determine your credit. Whenever it comes time to contact credit bureau agencies, you need to figure out which of these agencies needs to be contacted. For example, if there is some fraudulent or mistaken information that appears on your credit report, you need to find out which of these agencies and is responsible for that report and contact them directly.

It may also be necessary for you to contact credit bureau agencies in order to receive a copy of your credit. As individuals, each of us are entitled to receive a free copy of our credit report on an annual basis. Although you certainly would not want to pull it all of the time because that would lower your credit scores, keeping in touch with your credit and knowing where your numbers are at is very important for you to make sure that no problems are occurring. Regularly contacting credit bureau companies and receiving a copy of your credit report can help you to avoid identity theft and to recognize any mistakes that were made on the report before they damage you too much.

There are also some companies which will contact credit bureau agencies for you and pull all three of your credit reports. Although you may have to pay a fee in order for this to take place, it may be worth your while considering the time that is involved in contacting each of the individual agencies one at a time.

Comparing and Reviewing Advanta Business Credit Cards

Giving options to those with good credit that need business credit cards, Advanta has put forth a worthy lineup of business credit card choices. From the basic business needs card to a card with hefty rewards, the bases are covered indeed. One caveat, these business cards are not readily available to everyone, nor would they be the best solution for every possible entity. Let's take a look at the Advanta Business Credit Cards one by one.

The Advanta Platinum BusinessCard

For being the most basic offering in the Advanta business card lineup, the Advanta Platinum BusinessCard still gives a solid value to its cardholders. Pay no annual fee while still benefiting from 12 introductory months of 0% APR on both balance transfers and purchases. After that, the interest rate moves towards the mid to high range, but the first 12 months with zero interest make it worthwhile. Also pluses for business are the opportunity to have the company name printed on the card as well as a high maximum credit line. Good credit is of course required.

The Advanta Platinum Business Custom Card

Building on the basic card, the Advanta Platinum Business Custom Card really takes things to the next level all together. With 0% APR for the first 15 months and only a 7.99% fixed interest rate after that, the interest savings alone are hard to beat. Throw in the 5% cash back or travel rewards and this card is among the very best in the business. The only caveat is that excellent credit is required to achieve all of these benefits.

The Advanta Life-of-Balance Platinum Card

Different from just about every other credit card available, the Advanta Life-of-Balance Platinum Card is truly unique in the interest benefits it puts forth. Although the standard off the shelf interest rate associated with the card is very reasonable itself, a 2.99% APR offering is fixed for the life of balance transfers completed within the first 3 months of holding the card. Plus 6% travel or cash back rewards really do add up fast.

The Advanta Platinum BusinessCard with Rewards

Offering what might be the industry leading balance transfer interest free introductory period of 16 months, the Advanta Platinum BusinessCard is indeed ready for serious business. Even after the 16 months is passed, the standard fixed APR is remarkably low too. 5% rewards, either cash back or travel, are excellent for the territory. Additionally, the card can be personalized with your business name, just like all Advanta credit cards can.

The Consensus on Advanta Business Credit Cards

Simply put, the Advanta line of Business Credit Cards offers some of the best perks, both with interest rates and rewards, in the credit card industry. While some of the things they tout, such as $0 liability on fraud, are really only standard for any credit card, Advanta really does stand up to its promises. If there's one con, it's probably that the cards are only promoted to businesses with superior credit.

Tips For Keeping Your Credit Score Intact

Are you ready for a fresh financial start this year? Here are a few easy ways to "spring clean" your credit score, and begin today to pay down your debt.

Order a copy of your credit report. Consumers have access to one free copy per year from the three main reporting agencies: Equifax, Experian, and TransUnion. Go to http://www.annualcreditreport.com to request a copy of your credit report from all three agencies. Your credit report will give you a detailed list of all your financial history, and give you your FICO score, the three digit number that banks and lenders use when determining a loan, and your interest rate. Now that you know your FICO score, you can begin to work to raise that number.

Pay All Your Bills On Time. 30% of your score is based on how reliable you are with your payments. Set a goal today to pay all of your bills on time. It's a good policy anyway, and it will help to increase your credit score.

Don't Max Out Any Line of Credit. Another 30% of your score comes from the amount of available credit that you have. It is good to stay under 50% of your available credit-20-30% is ideal. Don't close out lines of credit either-even if you don't use them. Having credit available to you will help to boost that credit score even more.

Don't Apply for All Available Credit. 10% of your score is based on whether or not you are searching for new credit. Every department store card you apply for reflects as a negative to your FICO score. Think twice before filling out that next credit card application.

Maintain relationships with your credit card companies. 15% of your score is based on the length of time that you have had your line of credit. This is another reason that it pays to keep these lines of credit open-even if they are dormant.

Keep Your Balance. The remaining 10% of your score is based on the balance of your debt, such as the ratio of bank card debt to installment loans. This is tricky, and doesn't play a huge part in your credit score, so most experts advise skipping this.

Experts agree that raising your credit score is one important step in the journey toward debt elimination. Use these tips to help boost your score, and put you one step closer to your goal.

Credit Report and Credit Scores For Individuals

In this day and age it is vitally important to maintain a decent credit score, especially if you plan to make major purchases like a home or a car. If your credit score is 700 or above, your chances for being denied a loan are very slim; and while Triple A credit is a luxury people dream of, few actually achieve that goal due to poor financial choices. However, you can make the most of your score by understanding the credit rating system, and by maintaining awareness of your standing. Doing this before you begin to shop for a home or auto loan can save hundreds and thousands of dollars just on the interest rate. It could also mean the difference between being approved or denied.

What's In A Credit Report?

Your credit report houses information that ranges from fairly personal information to your income and borrowing habits. It lists things that creditors will want to know before they decide to lend you money; things like

o How you pay your bills

o Your present and past employment history

o If you have been arrested or sued

o If you have filed for bankruptcy

o Your current residence, and past addresses depending on the time you have been at your current address

Nationwide consumer reporting companies sell information within your reports to employers, creditors, and insurers who utilize all information to evaluate your applications for credit, renting or buying a home, and obtaining insurance.

Obtaining Your Credit Reports Online

It is a requirement of The Fair Credit Reporting Act that the three main consumer reporting companies, Trans Union, Equifax, and Experian, provide consumers with free copies of their credit report once every 12 months (upon request). These companies are also charged with promoting privacy and accuracy of consumer reporting.

You can obtain a free copy of your credit report by either requesting it in writing directly from each of the three major credit bureaus, or by using the online request system they have created. AnnualCreditReport.com is a site that is sponsored by TransUnion, Equifax, and Experian to make it fast and easy for consumers to get reports online as they fulfill their legal requirements. You may order all three credit reports from each consumer reporting agency or you may choose to order only one report at a time; either way by law you are permitted to obtain one free copy of your report per year from each of the reporting agencies.

The only information needed to obtain your free credit report is your date of birth, name, address, and social security number. Each consumer reporting agency will ask for different verifiable information only you know because each of your files have been obtained from different sources.

It is recommended that you check all three and not assume all of them to be correct if the first is, since all companies get their information from different resources; you could have an error on one and not another.

Your FICO Score

FICO is an acronym for Fair Isaac Company which was the company that originally created the system used to condense credit history into one distinct number; major credit agencies, businesses, and bank lenders have adopted this system as a means of evaluation for creditworthiness.

Ultimately, one's credit score is determined by major factors such as amount currently owed to lenders. The general break down of how your score is determined is as follows:

o Outstanding loans, credit cards, and mortgages, and the amount owed on each (as well as the type of debt-revolving, secured, etc.) makes up about 30% of your score.

o At least 35% of your FICO score is based on how successfully you've repaid past debts.

o 15% of your score is based upon how long you have been utilizing credit; a lengthy credit history is of major benefit to you. This is not based on age, either-you can be middle aged with no credit if you do not take loans or use credit accounts, or you can be young with a long history of borrowing and repayment.

o 10% of your credit score is based on the amount of inquiries listed-on how many entities you sought credit from and allowed access to your credit report. Lower numbers of inquiries are better as some lenders tend to view frequent applications of credit in a specific period of time to be negative, and from the standpoint of the credit reporting agencies numerous inquiries indicate that you need to shop many sources to obtain credit.

All of these factors determine the number that makes up your credit score. This one simple number is crucial in enabling you to obtain any type of credit. Scores of 657 to 700 are considered good, and with a score of 700 or above you're likely to be deemed creditworthy by many lenders. If you maintain a score of 600 or below, most likely you will have to invest some time and effort in order to rebuild your credit before applying for any type of loan. In addition, the higher the score the lower the cost of lending will be to you-higher scores net lower interest rates because they are considered less risky, while lower scores show some past trouble and increased risk for the lender, so when credit is offered it will be at a higher rate that allows lenders to recoup more on their loan earlier on.

Understanding credit scores can be difficult, but highly beneficial. When you know more about how banks and lenders evaluate you, and how you can confirm your good rating, you understand where you fall on the lending spectrum, and what options you have for improving your present and future financial situation.

Piggybacking Reappears in FICO Score Calculation

Piggybacking is a term used to describe how a person with bad credit or no credit history can get all the benefit of somebody else's good credit rating by becoming an authorized user on an already established, good credit account that belongs to that other person (the donor). For example, a young adult child with no credit history of his own could leap frog to a high credit score by becoming an authorized user on his father's or mother's American Express Card account. That assumes, of course, that the donor account had no dings.

Although perfectly legal, over the last several years this technique was sorely abused by credit repair companies who rented out authorized user status to anybody for a fee. The creditors and credit reporting bureaus were so alarmed by what they saw as an abuse of the system that they stopped including authorized user accounts altogether in the credit scoring calculation. The company itself estimates that there are 50 million legitimate authorized user accounts in the US so excluding them from the credit score calculation had a wide ranging affect.

Fair Isaac & Co., the firm which originated the popular FICO credit scores, now says it has found a way to include those accounts in credit scores when they are legitimate and still exclude the for-fee-only piggy-backers. The company did not reveal any of the details of how it intended to separate legitimate authorized users from the renters. Only Fair Isaac has made this announcement but it's safe to say that the highly competitive nature of the credit reporting industry will compel the others to quickly implement similar technology.

Fair Isaac spokesperson, Lisa Nelson, vice president of Global Scoring, says that the new FICO algorithm will allow the scores of spouses and other genuine authorized users to benefit from their shared credit experience. The change should go into effect in the FICO 08 credit scoring system.

The change will be transparent to most credit consumers, two-thirds of whom would not know a credit score from a golf score to begin with. People with bad credit shopping for easy credit repair, however, should be on the alert for the fly-by-night credit repair outfits that start offering piggy-back rentals again. If we can take Fair Isaac at its word on this, and there is no reason not to, then paying for a piggy-back rental to boost a FICO credit score is a waste of money.

Know Your Score - Part X

A recent client was hoping to buy a new home. He and his wife were renting a manufactured home in a park and wanted a place of their own to raise the two children. They called me after their bank manager suggested they call me to help them with their credit and possibly find a lender that would fund a mortgage for them. Needless to say they were very reluctant when they called me. 

The husband had been a long time lineman for a large telephone company. But unfortunately had been temporarily laid off about five years ago and was out of work for about 8 months. Due to this event and subsequently getting behind in their obligations they were forced into bankruptcy. After 8 months he was rehired and uninterrupted employment since. His wife is a stay at home mom with occasional part time income. 4 years after their BK they were still on a cash only basis, with no credit re-established. 

The solution for them was to re-establish credit and get their score as high as possible in the shortest amount of time. In this case we were in an escalating real estate market where literally every month the average price of a home was going up about $5,000 per month. So every month that went by only added to the ultimate price of their new home. 

The credit bureaus determine a credit score by considering only these five factors. 35% of a score is paying bill on time. 30% of the score is balances on revolving debt (credit cards, lines of credit) 15% of the score is credit history(length of time and account has been open) 10% of the score is credit mix (mortgage, auto and some revolving debt is their ideal) and 10% of score is inquiries (every time credit report is pulled is a negative) over the last six months.

Since they had virtually none of these factors in the last two years, only one bureau had a score (524) and the other two had N/A for a score.

To solve this problem he talked to his mother who had a VISA card that she had had for 8 years, no balance and always paid as agreed. She put him on this card as an authorized user. His objective was not to use the card. In fact he told her not to give him a card or even the account number. All he needed was the history. As soon as he was put on the VISA as an authorized user, his report showed all 8 years of great credit history. And he obtained a secured MasterCard with a $250 credit limit and a national dept store credit card with a $200 credit limit. All three of these reported to all three credit bureaus. 

The result one month later is a 664 average score from all three credit reports.
Also note here that your credit score is heavily weighted on the last two years. The bankruptcy 4 years ago was all but insignificant. The only thing it would factor into is whether a bank or lender guidelines had an issue with the bankruptcy, not the credit bureaus!

They were approved for a mortgage for a traditional built home with a yard for the kids. By the way their payments in this case were only a couple of hundred more than their rent for a manufactured home and after the tax deduction for interest and property taxes their net payment is a little less than their rent was! More about you and your credit coming in the next article.
Don Davis

What Are FICO Scores?

Any time you apply for a home loan, credit card, or car loan, lenders are concerned that you might be a risky venture. To help get a better idea of your credit history, they may look at your FICO scores. FICO scores are based on a system developed by Fair Isaac and Company, thus the acronym. Generally speaking, the higher your credit scores, the lower the possibility that you are a credit risk. Of course, it is important to note that many agencies have their own strategies and guidelines they use when determining whether to lend money or not. Research any lender you are intending to petition to see what their guidelines are.

FICO scores are arranged by 50 point segments beginning with 300 and going to more than 800. The scores are calculated according to your credit payment history, the current amount of debt owed, and the types of credit you have. People just beginning to use credit, such as a young adult, will have a lower credit score than a person with a more established credit history. Reports indicate that the majority (27 percent) of US citizens have credit within the 750-799 point range. Anything in this range is considered to be an excellent credit score. Less than 20 percent of the population has scores lower than 600. These people will have difficulty getting a loan at a reasonable rate.

FICO scores are available from three major credit reporting agencies. You will have one FICO score from Experian, one from TransUnion, and one from Equifax. In order to calculate your credit scores, you must have at least one line of credit open and one that has been updated within the past six months at each credit bureau. This ensures that the agencies have updated information on your credit history. Each credit reporting agency has its own name for FICO scores. With Equifax it is the BEACON Score, TransUnion offers the EMPIRICA, and Experian has the Experian/Fair Isaac Risk Model.

As your credit history changes, new credit scores based on your credit will also change. This makes it possible for your credit score to change from month to month. Improving your FICO scores will allow you to not only be able to get the loan you need, but also helps ensure that your interest rates are not outrageous. You can improve your credit scores by paying off credit cards at the end of each month and making sure you make payments on time.

Three Simple Steps For Credit Repair

Many sites offer advice on credit repair. Some even offer to undertake credit repair for a supposed professional fee. Many have tried to make sense of the intricacies of credit repair and from their own experiences the following suggestions are being shared to you for free.

1. When using a credit facility, such as a credit card, one needs to keep a ceiling as to the availment of the credit in the facility. A safe and sure bet is to keep the use of the credit facility to twenty five percent of the maximum credit limit. This provides for an adequate leeway for use of the card and credit records would indicate that you are fiscally responsible in managing debts.

2. Be loyal to the credit facilities one has. IF one is suddenly applying for credit lines rtight and left, and there is pattern to opening and closing the debt instruments, then this would alert financial institutions as to the management of one's debt. It means one does nt have the capacity to pay and instead the debtor is actually playing the market to keep the debts from falling due.

3. Keep your credit line to yourself, except when there are extensions to a spouse or family member. This ensures that you have full control over the debt instruments at your disposal and avoid the hassle of assuming debts whose benefits were never reaped by you. So it would be prudent fiscal management to allow only family members to use your credit line to avoid that the said facility would be abused or much worse plundered.

Is Self Credit Repair Possible?

Bad credit repair takes a little effort, but with our credit repair program, your credit score a/k/a your FICO score will greatly improve. We use a credit report dispute system to get your FICO score up. Please avoid a payday loan or debt consolidation when you say "fix my report".
Ready to say "Fix My Report"? Bad credit repair is basically a play by the numbers system, you just have to keep playing. First, obtain your credit report and your credit score (as we said previously, this is also known as your FICO score).

Once you have your FICO and credit report you begin the process of credit repair. Remember, payday loans and debt consolidation companies are a "no no". If you want to keep getting in debt and messing up your credit report, go ahead and start visiting these companies.

The secret to sound debt consolidation and a higher credit score is to find the bad credit repair items on your credit report and disputing them using our techniques. In this way, your FICO score will go up, short of you having to take out the dreaded payday loan. When you tell us "fix my report", we respond with the tools for solid bad credit repair!

There is nothing a credit repair agency will do that you cannot do yourself with some time and patience. There some credit repair tips and tricks for you.

One way to remove negative information from your credit file is to contact the credit bureau and dispute the information. Each item on your report must be proven or it must be deleted. If the credit bureau cannot verify the item when investigated, it cannot remain in the report - it must be deleted. The credit bureaus delete negative notations from credit reports every day. By law they are required to do so whenever a particular item reaches a certain age. If you dispute an item on your report, they must investigate and delete information that cannot be reverified.

There are more ways on credit repair at ebookslife.com/credit

Credit Report & Repair Scams

Newspapers, radio, TV and the Internet are filled with advertisements that offer for a fee to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. This section is designed to help you understand credit reports and credit repair scams.

Credit Reports

Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following:

* Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit."
* "Serious" errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer; Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:

* Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information; Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness.

Consolidate debt your debt now free -- quote now!

One of the first steps to credit repair, is understanding credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards. Good credit can open many doors.

If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront.

The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as "FICO" scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks.

FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau's data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau.

FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring!

FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer.

The 5 most important factors to determining your credit score are:

* Your payment history
* The amount of outstanding debt you have compared to your credit limit
* Your credit history
* The types of credit you use
* Negative information

Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history.

Credit Repair Scams

You've seen it in newspapers, maybe even heard it on the radio or television -- Erase accurate negative information in your credit file! -- The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio.

Credit Repair Scam #1 - File Segregation

If you filed bankruptcy, you may be the target of a credit repair scam called "file segregation." In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea but, file segregation is illegal. If you use it, you could face fines or even a prison sentence.

Credit Repair Scam #2 - New Credit Identity

If you have filed for bankruptcy, you may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet.

When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration.

After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references.

That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time.

Credit Repair Company's And False Claims

Credit Repair False Claim #1: You will not be able to get credit for 10 years.

Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. And, given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes.

Credit Repair False Claim #2: The company or "file segregation" program is affiliated with the federal government.

The federal government does not support or work with companies that offer such programs.

Credit Repair False Claim #3: The "file segregation" program is legal.

It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.

Your Rights Under The Credit Repair Organizations Act

This law prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights. Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge.

Finding Help for Credit Problems
It's a good idea to try to solve your debt problems with your creditors as soon as you foresee or realize that there is a financial problem. If you can't resolve your credit problems yourself or need additional help, contact debt-consolidation-Kimberly.com We are a full service debt consolidation organizations with clients nation wide that counsels and educates individuals and families on debt problems, budgeting and using credit wisely. We work directly with your creditors to help resolve your debt problems by negotiating a repayment schedule that is affordable for you and acceptable to the creditor.

How Can a Credit Consultant Help You

If you having a great deal of problems with you credit score and are suffering from poor credit rating and on top of that you are unable to deal with this problem for what ever reason then a credit repair consultant is what you need .after all we all need some help at times whether is because we are too busy or just do not have enough experience in this field.

To deal with credit repair you must be willing to get your credit report and find out if there are any mistakes on them.

If you do find mistakes on your credit report you can with the assistance of your consultant write a very firm but polite letter to the agencies with copies of your report pointing out all the errors. You also have to ensure you have included all the right documents ,if you not sure where to get them from your consultant should be able to help you with this.

The second role of a debt management consultant is to help you organize your finances and show you ways to reduce your debts.it could be you have to consolidate your loans if you can get a large enough loan with a reasonable interest rate or just keeping your debts and negotiating a regular monthly payment which is affordable for you
It might be far better not to apply for a new loan as this in it self can lower your credit score and this will probably be the last thing you want to do if you already have a low credit score.your consultant should be able to explain all this to you .

If you are having trouble making the payments on the loans and the credit cards that you have to with a help of a debt counselor start negotiating and repairing your credit score. you will need to be making all of your payments on time. You should also be aiming to reduce the balances on your credit cards. If your cards are maxed out all of the time or even if they are more than half way to the maximum then you should try and reduce them .this is something that you can work on to improve your credit score.

Believe it or not some people also have a low credit score due to not having any credit as the loan companies do not have any data on them and do not know basically who they are dealing with.

ultimately your consultant should be able to advice you on all the aspects of your finances from where to get the best loan rates to how to build a good credit score and repairing a bad credit rating and hopefully you should be set on the right track and should start to see some improvements in your finances.

How is a Credit Score Calculated?

Mortgage Planners work to help customers get the best rate possible when they borrow money. Often people are unaware of factors that can affect their ability to get the best rate. Having a less than perfect credit score can stand in the way of you obtaining the best mortgage rates.

It may not occur to you how much your current credit situation can interfere with your life. Having credit cards with high balances, missing occasional payments and having too many credit cards can all affect your FICO credit score.

A FICO score ranges from 300 to 900. It is a way for borrowers to assess how much of risk you would be if they were to lend you money. It is determined primarily by five factors, with some weighing more heavily than others.

What is your past payment history? This percentage accounts for approximately 35% of your credit score. Late payments, collections, bankruptcies and foreclosures, can be detrimental to your score. More importantly, is that the most recent blemishes on your credit as well as larger debts take precedence over past problems and smaller debts.

What is your current level of indebtedness? This accounts for approximately 30% of the score. This factor determines whether you are able to keep your debt under control.

Having too many credit cards or being near your credit limit can indicate to others that you may not be responsible managing credit. It can also indicate that you may have problems paying any debt you owe.

How long is your credit history? This accounts for about 15%. A long history of credit in good standing exemplifies a lower risk factor.

What is your track record in pursuing new credit? This factor accounts for 10% of the score. When you open several credit accounts in short span of time, this is deemed as a potential risk. Numerous credit inquiries for personal requests can also have a negative effect on your credit score. Although FICO scores usually differentiate between the inquiry being related to a loan rate comparison and an attempt to open a new credit card account.

What are the types of credit available? This accounts for 10% of your credit score. This takes into account how many different debts you have. It also takes into account whether you have many of the same types of debt, such as credit cards, or a mixture of different debts or loans. Having a combination of different types of credit and loans is seen as being more positive than just having debt on different credit cards.

People with 750 or higher credit scores have stellar credit scores and generally get the best deals on loans and low interest credit cards. This is because these score shows that they have managed to make payments on time. They are also not seen as a potential risk for the lender and are very responsible with debt.

Some tips to keep in mind when understanding your credit score is to look at your score as a whole, not just in parts. You can't determine your credit score based on one aspect, you have to take into account all of these factors.

Depending on what your past credit history is will determine the importance of certain factors that influence your credit score. One aspect of a person's credit score may not seem as important to another person with a different credit history. As time passes, so will your credit score. The importance is within the mixture of information within the credit report.

With the assistance of a seasoned mortgage lender you will have peace of mind knowing that someone is there to offer assistance and answer questions you may have in regards to your credit. They can help you achieve a better understanding of what you can do to improve your credit score. They can give you guidance to make sure you are headed in the right direction to repairing your credit.

Eliminating Credit Card Debt - Some Do's and Don'ts to Help Your Situation

Eliminating credit card debt might be a little difficult, but surely isn't impossible. To know more, read on. A little effort on your part today is sure go a long way towards a healthy financial future!

With plastic money being easily available to people, credit card debt issues have become a very common situation faced by many. But the good news is; you can put an end to it sooner than you previously thought, provided you work towards it. Most of us get a second chance to rectify our mistakes and so do you. Stop brooding over what has already happened, work towards rectifying your previous mistakes today and welcome a brighter debt free future with open arms.

In order to eliminate your credit card debt, you need to follow a few Dos and Don'ts, and you will be surprised to see how these can improve your financial state significantly.

Dos:

Analyze your financial state realistically and figure out a plan how you will deal with your debts.

Make a realistic personal budget and strictly follow it.

Start saving your hard earned money. Saving will not only give you the confidence to fight your situation with a positive spirit but also help you improve your financial state.

Once you have decent savings in your bank account, it's time to attack your debts. Pick the one with highest rate of interest first and start paying them off one by one.

Don'ts:

In case you are in the habit of making minimum payments, then it's high time you stopped it. Minimum payments do not help you much in paying off your debts; instead it may take you 30 years to get debt free that too by paying three times the amount you had initially borrowed.

Do not neglect your loans. It is a very dangerous thing to do. Neglecting you loans may leave you in a bigger mess. This will not only contribute towards increased debt amount but also towards a bad credit report.

Keep a proper track of your spending. The moment you start using your credit cards carelessly, you put yourself in credit debt.

I strictly recommend my reader to follow these simple dos and don'ts and believe you me it'll be a big leap towards a debt free future. But in case you are in a bad debt trap then just following these dos and don'ts might not be enough. In that case, I suggest going for debt settlement plans. The two popular settlement plans are:

Debt negotiation: it is a process of reducing your debt amount to a figure that you can afford to pay, by talking it out with your creditors.

Debt Consolidation: this is another kind of debt settlement, where you consolidate multiple debts into one single loan with a minimized monthly payment.

In any case, I think taking professional help is the best thing to do as a professional will help you settle on the best plan with your creditor which in turn will help you improve your financial state.

So, now that you have gone through this article, you have a fair idea on how to go about eliminating your credit card debts. So go ahead and take suitable measures and head on towards a debt free future. Good Luck!

Piggybacking and Credit Repair

The practice of piggybacking has been around for years, and many consumers have used it to boost their credit scores. In order for a consumer with bad credit to boost their score, a person with good credit would authorize the bad-credit individual on one or more of their credit lines which artificially boosted the lower credit score and making it appear that the person actually had several positive credit accounts.

Good Intentions of Piggybacking Credit

It may sound a little shady, but the intentions of piggybacking are often good such as a parent helping one of their children to begin establishing good credit or a spouse helping to boost their partner's score. However, a few years ago, several credit repair companies started taking advantage of this practice. For a fee, they would match people with bad credit up with people that had good credit and authorize them on one or more good accounts. The company charged a fee for this credit boosting service, with a percentage going to the party with the good credit and the firm pocketing the rest.

Does FICO Bar Piggybacking?

These abuses of the piggybacking method upset the Fair Isaac's Credit Organization (FICO) and lenders as well. After all, with artificially inflated credit scores, how could they accurately determine a person's credit worthiness and protect themselves from unnecessary financial risks?

As a result of these widespread abuses, FICO decided to bar the use of piggybacking when it revamped its credit scoring model for FICO 08, alleging that these practices basically amounted to fraud. Ultimately, this controversy resulted in a congressional hearing.

Making it Harder to 'Game' the Credit System

As a result of decisions made in a congressional hearing on piggybacking and credit repair, FICO and the other credit bureaus have developed a solution that still allowed for piggybacking, but with new considerations. "We worked very hard with the credit bureaus and lenders to find how important it was to how many people," says Mike Campbell, Chief Operations Officer for FICO. "Fortunately, we were able to come up with technology that makes it much harder to game the system."

Can Piggybacking Still be Used to Repair My Credit?

The simple answer is 'Yes', piggybacking can still be used as a method for credit repair. As a result of the FICO 08 revamp, it may be more difficult to exploit the system using piggybacking, but for now, it is still a valid and useful tool for improving your credit score.

Tips to Help You Handle Bad Credit Repair

Bad credit repair takes time. It normally takes just as long to dig out of debt as it took to tailspin into it. If you've suffered a foreclosure, a bankruptcy or had multiple accounts slide into collections, then you will need at least 1-2 years to right your wrongs. This process will involve paying off your debts, as well as re-establishing good credit and a positive payment history. If you're looking for an overnight fix, forget about it!

What a bad credit repair services offers you can do yourself with some time, patience and guts. First, you'll order your free annual credit report from the three major credit bureaus, namely Equifax, Experian and TransUnion from "Annual Credit Report". You'll look over the information on these credit files and be sure they all match and that they're all up to date and accurate. Check dates and the status of all your financial records. If anything is amiss, then you can mail copies of your records to show proof of the inaccuracy or simply correct repairs online using the credit bureau's website tools to file a dispute.

Here are some do-it-yourself tips for repairing bad credit. If you feel up to the challenge, then you can use your sales and negotiating skills to get items deleted or amended on your credit report. First, never make arrangements over the phone. It's always best to craft a well-written letter instead and be sure you write this letter before you give the creditor any money or you'll have lost your power to negotiate!

If you have a "charge-off" listed on your account, then you can sometimes offer to adhere to a monthly payment plan and get creditors to replace them with "paid as agreed and on time." If you can't get that, then try for "account closed, account paid or account settled," all of which are more desirable than a charge-off.

The best case scenario you could ever hope for is a creditor to completely remove their account from your credit report, although it's certainly a rare best case scenario. Often with medical bills, the creditor will remove the bad credit debt if you agree to pay immediately, in full, with an additional fee or two, which will improve credit scores overnight.

If you're attempting bad credit repair on your own, then understand that there are no guarantees. However, it will only take a few moments of your time to shoot out a letter to your creditors, requesting an agreement that will take your credit report into consideration. If you have a "charge-off" from a closed account, then this could be extremely hard to get removed from your report. If the creditor is still actively trying to collect, you will have a 1 in 3 chance of getting a complete removal from your credit report.

If you have an open account, like an installment or revolving loan, then there is a marginal rate of success if you offer to pay the full balance. Open/active accounts reported as "late payment" have a very high success rate of complete removal, particularly if the account is in collections. Creditors may say they cannot remove an account, but they absolutely have the power to do so. It's just that many of them are trained not to do that.

The High Cost of a Bad Check

Writing a bad check can really be a tough predicament. It can happen to anyone, even those who that make an effort of taking care of their money. Poor budgeting and impulsive thinking are the most common root of this financial problem. If you happen to blunder into this situation, acting quickly to resolve this problem is critical because this mistake can be costly.

While a single bad check may not be too much of a problem, a number of them can cause havoc on your budget. You have to pay a bank fee which can range from twenty to thirty dollars or more. You may also have to pay the same price to the person or store for the inconvenience you have caused.

If your bad checks pile up, your bank account will quickly go into negative numbers and your bank may ultimately decide that you are a huge risk and close your account completely. Opening a new account will not be possible unless you repay the balance of your previous account and your bouncing check will recorded on ChexSystems alerting other banks of your infractions

Your problems can also worsen if establishments resort to legal action to retrieve their money. You may receive a call from companies that specialize in recovering bad checks, reminding you to resolve the problems with their clients as soon as possible. Bad checks will not affect only your finical situation; your reputation can also be destroyed as well. Banks will be reluctant to do any business with you and it will also diminish of job opportunities that will be available to you.

Try to avoid writing bad checks as much as you can. The problems that plague you after writing one can plague you for a long time. If an accident does happen, try to work out the problem as quickly as you can. Your future and reputation are at stake so always keep an eye out to keep your financial situation healthy.

Credit Repair Done by Yourself is Better Says the Federal Trade Commission (FTC)

These days, credit score repair and raising credit scores has become a hot topic around the water cooler. Knowing how much money can be saved by having a higher credit score and with the need in todays economy for keeping your credit score higher than average, many consumers are looking for a way to improve upon the score that they already have.

The Federal Trade Commission FTC, has recently reported that fixing your credit score by yourself may be the best option out there for most Americans. When Googling the word " credit repair" on any given day, you are bound to be overwhelmed at the number of advertisements that are displayed. Each of these " credit repair companies" has a different fee, process and technique for fixing your credit But they all seem to have one important thing in common: a high fee.

Due to all of the advertising and hype that is thrown in the consumers face, the average person does not realize that the credit laws were written to protect and help the consumer, not the credit bureaus. Even the Federal Trade Commission has stated that anything a credit repair company can do for a person, they can do by themselves. And think, you probably won't be charging yourself a fee. The credit repair companies seem to be preying upon the fact that the average person is not aware of how credit scoring or credit reports work. The credit repair agencies then make crazy promises and guarantees to help after charging your credit card of course. And how many people who are looking to fix their credit have an $1,000-$2,000 to throw out to hopefully fix their credit?

The average credit repair book or program for fix-it-yourself credit costs an average of $50-100. Thats a lot less than the thousands of dollars that the credit repair companies are trying to charge you with. It simply takes an education to repair your credit remove negative items and raise your credit score in a matter of only months.

It seems that only a few consumers out there, and of course the FTC, who wrote the laws on credit scoring, are the only ones who know how easy it is. It is too bad that credit scoring and credit reporting is not taught in schools or offered in colleges. With a little know how, an in-expensive book and the right letters, tools and techniques, anyone can raise their own credit score, and usually in a matter of only a few months. Get that better interest rate, obtain the home loan you need or get that small business loan you have been looking for. It is as easy as a simple as educating yourself and not letting the credit repair companies take advantage of you.

Bad Credit Unsecured Loans - How To Ascertain The Approval

A new loan becomes difficult to avail, if you have a record of making payment faults. Such people tend to look for bad credit unsecured loans. However, they should opt for these loans in a wise manner for ensuring the approval and for escaping another debt.

These loans do not require people to pledge any property, as collateral. However, the absence of collateral simply means that the borrowers have to prove their capability to repay. They must chalk out a convincing repayment plan, which should include monthly earnings and savings for repaying the loan installments.

Secondly, your credit report matters the most for the lenders. They will go through the report in order to assess you for risks and to see your FICO score. Hence, make sure that the report has no errors and your timely payments of the past have found correct mention in it.

In case, FICO score has fallen too low, then pay off some debts and wait for few months. Then, apply for the loan with an improved score, which will indicate your intention of making the loan repayments.

Bad credit unsecured loans imply that all those people, who have arrears, late payments, defaults or CCJs, can borrow money without placing collateral. These are smaller loans, with a range of up to £25000. you can use the loan for paying off debts, car purchasing, wedding, holiday tour and so on. Be prepared to make high interest payments. The rate of interest goes higher on these loans. Make sure that you borrow only smaller amount so that you repay it early, without having to pay the interest for long.

Another way to find a suitable deal is to make comparison of as many bad credit unsecured loans offer that you see on internet. Each such lender has a different set of interest rate and additional fee charges. Hence, apply for rate quotes and compare them. Timely repayment of the loan will help in improving your rating.

What is a Good FICO Score and What Does it Mean?

You might ask yourself these questions. The general rule is the higher the FICO score the better and if it is high you could wind up saving lots of money. When lenders decide to give you a loan, your FICO score is used as an indication of risk. The lesser risk you are, the lower the interest rate you will have to pay. The lower the interest rate, the more money you will save over the life of a loan.

The FICO Score range is 300 to 850 and it is broken down as:

o 300 - 499 bad credit,

o 500 - 619 low credit,

o 620 - 679 average credit,

o 680 - 699 good credit,

o 700 - 850 excellent credit.

An example of how this will save you money is to look at a 30 year mortgage. With Person A having an excellent FICO score and Person B having an average score. When Person A applies for a $200,000 30 year mortgage they get a very nice interest rate around 6 % and a monthly payment around $1200. When Person B applies for the same loan, they get an interest rate around 7.5% and a monthly payment of $1400. The difference is $200 per month. This does seem like much, but it really is. Over the life of the loan, 360 months at $200 per month, it equals $72,000. That is a huge savings by Person A.

Furthermore, if Person B had any lower of a FICO score, they more than likely would not even get a loan. 620 is often used as a cut off point by lenders. This means if you are below that most institutions won't touch you and you will have to borrow from a sub prime lender. The interest rates provided by this group of lenders is often much higher than even the average FICO score rate. You could pay in the double digits for interest, making the consequences of having a bad FICO score really costly.

You should always be looking to protect and increase your FICO score. From the example above, the $200 a month could really make a difference in a person's life. This is especially true if the money is invested. The person saving that $200 a month also has fewer worries. They have the flexibility to deal with changes in the economy and inflation.

Free FICO Score - It Only Takes 33 Seconds

You can save a lot of money if you are able to learn your FICO scores and also are able to check whether the information in your file is accurate or not. You probably must be aware of the fact that when you apply for loans with banks, they check your scores. Also, when you apply for a cell phone or for a cable, utility companies check you credit and even the landlords check your credit score when you apply for rental with them. However, very few people are aware of the fact that the amount of interest that you are to pay also depends on your FICO score.

What is the Average FICO Score?

Usually scores ranges between 300 and 850. If your credit score is higher, then it simply means that there are low chances of you to default in making payment of the lease. Therefore, it increases the chances of the lender to promote and encourage your business as he gets confident that you will not default because of your high FICO score. Even a small error in your scoring can impact you adversely. It will not only affect your chances of staying in a business or job for long but also will decide the amount of payments that you will have to make monthly on purchasing any of your asset on lease. It is considered wise to be enlightened and conscious about your scores.

Improve Your Credit - Check Your FICO Score!

It absolutely depends on you to go through your free credit report and check for any inaccurate or flawed entry. However, with growing fraudulent cases, it is recommended to review your credit reports at least once in a year for any kind of outdated or fallacious information. If errors are found in the report, they can be removed by taking help and consulting the responsible agency. Pay your credit card bills and payments on time, and you will soon observe improvement in your scoring.

With advancement in technology, you can now obtain your report for free, online. This method of using internet for obtaining reports is getting popular these days as is quite an easy to obtain reports via internet.

Why FHA- With Your Credit Score

Did you know FHA loans has been around since 1935? That is pretty amazing if you think about it, this type of loan has been around since right after the "Great Depression." Also a added benefit of FHA is that it does not have credit score requirements. With the current lending market and tighten up on credit scores it makes perfect since to look at a FHA loan. Depending on where you are going to buy will determine the max loan amount you can get with FHA. Yes, FHA loans have loan limits. Here is a link where you can look up loan limits by state and city.

Secondary Market Credit Score Requirements

With all the foreclosures going on, banking has made changes as to what type of loans they will buy. FHA does not have a credit score requirement to insure a FHA loan, but the banks that buy the loans do. For example, most lenders underwrite their loans, and then sell them on what is called the secondary market. This is a market where banks buy and sell mortgage loans. The current credit score requirement with this market is a 580 credit score. So if you have this type of credit score, you might qualify for FHA mortgage.

This type of score is not considered the best of scores, but could get you in a 30 year fixed mortgage. Your interest rate will be higher because of you credit score, but it's better than renting. Typically credit scores above a 680 is considered good credit, so if you were wondering, that is the where you should be.

Here is a credit score breakdown per "My FICO."

* Excellent: over 750

* Very Good: 720 or more

* Acceptable: 660 to 720

* Uncertain: 620 to 660

* Risky: less than 620

Advantages of FHA

Obviously FHA's biggest advantage is you can get financed with fairly low credit scores. You don't need great credit history that is required with Conventional loans. Here are some highlights to secure a FHA loan.

- 3 lines of credit reporting on your credit report in good standing for the last 12 months

- If you don't have any credit, FHA requires 2 months mortgage payment in bank after closing

- Good 12 month rental history

- 2 years work history.

- You can count college as work history, underwriters like to see that you graduated, and are working in profession studied.

- Only 3% down payment, you can use Down Payment Assistance in place of this.

- No credit score requirements

- 30 year fixed mortgage

- Competitive rates

FHA is not only for individuals with bad credit. This loan is for people with good credit as well. If you have a 720 credit score, and don't want to put down a bunch of money, it makes perfect since to go FHA, as long as you are trying to buy within the FHA loan limits.

If you are in the market to buy, and you are not sure where your credit score stands, find out. Pull a copy of your credit report with credit scores. A educated consumers saves on interest rates and terms.

The Credit Rating Method - How it Works

The credit rating method used by 90% of lenders is the Fair Isaac Corporation method, commonly referred to as the FICO method. Credit scores using this method range from 300 to 850, with the higher scores being the better scores. FICO reports that the median credit score in America is 723.

FICO scores are determined based on five categories of information contained in your credit reports.

Your Payment Record - 35%

The most important factor in the credit rating method is your payment record. A full 35% of your credit score is based on how well and how timely you make your payments. Included in this category are late pays, collections, charge offs, and bankruptcies. The more current any derogatory information in your file is, the worse lenders view it. Even the worst things that affect your credit get better with age.

Outstanding Debt - 30%

The next biggest factor in the credit rating method, is how much debt you are carrying. Credit card debt is particularly scrutinized because cards are the easiest to get in trouble with. If you have one or two cards that are "maxed out", your credit scores will probably be much lower. Better to spread your balances over a few cards than to max any of them out. If possible, keep balances on all your cards at 30% of the high limit or less.

Length of Credit History - 15%

The longer you have had credit established, the more favorably you are viewed by lenders. A long credit history gives a lender more information in which to gauge your future actions.

Inquires - 10%

Inquires account for 10% of the credit rating method, and is probably the least understood. Each time you apply for credit, insurance, a rental, or employment, there is a good chance a credit report will be pulled. This is called a hard inquiry, and is recorded in your credit report. Lenders look hard at these inquires, especially if they have occurred in the last six months.

Lenders won't get too concerned if you have no more than 10 hard inquiries in your credit report, spread out over several months. But if you suddenly have 8 to 10 inquires in a short period of time, they tend to get nervous. The exception to this is when several inquires show up that indicate you are shopping for a particular type of loan, such as an auto loan or a mortgage. It should be obvious that you are only looking for one such loan. Inquires can stay on your credit report for 2 to 3 years.

Lenders often times pull a mini version of your credit report for a promotional offer. These are called a soft inquiry and are not reported. Likewise, when you request a copy of your own credit report, that also is called an inquiry but it does not show on your credit report either.

Different Types of Credit You Have - 10%

A credit file containing a mortgage, auto loan, bank loan, and two or three credit cards tells lenders that you have the capability of managing different kinds of debt. This variety of debt will add to your credit score. If your credit history only shows a few credit cards, even though your payment history was perfect on them, your scores will be less.

Understanding how the credit rating method works should help you manage your credit scores better. With proper management, you could easily be at the median credit score of 723 or better.

Know Your Score - Part VI

Advice is cheep. Bad advice is expensive!

One of the biggest myths about credit scores is if you pay off a credit card, close the account. I've had my bankers tell me this. In most cases this could hurt your credit scores more than having a couple of late payments. Here is the reason why.

Today a lot of people play the credit card game. They get an offer for 0% interest for 6 to 12 months on balance transfers from other credit cards. Now this may seem like a good idea, and can be. However, if you apply for receive and transfer the balances from your older established cards to a new one with a large balance to high credit ratio and close the three accounts that you paid off, you could substantially reduce your score. Not to mention making a late payment on that one card could be disastrous!

Here is why;

If 15% of your credit score is credit history, by closing older established accounts will decrease your score.

If 30% of your score is your balance vs your high credit limit then your score will decrease.

Let's take a closer look:

Credit bureau score 712*

If you have four credit cards with balances under 30% of the credit limit or less, then you have a fairly balanced credit report.  The score would be even higher if the balances were below 10% of available credit.  The key here is there is activity on the cards, they have been established for a number of years  and they have all been paid on time.  Ideally these cards could be paid off at any time.

While the above is a "snapshot" of a credit report, it represents what can define a good score from a great score and often the difference from getting a good loan rate and an outstanding loan rate!

If you were to pay off the three of those cards and transfer those balances to a new card, Visa for example you could help increase your score if the credit limit on the new card is substantially more that the balances you transfer . But if you close the older three accounts your score will go down. A lot.

Let's look

Credit score 623

  This is how many people destroy their credit score without missing payments and being a responsible borrower.  By paying off and closing three out of four credit cards, the bureau now will only read the one existing, open tradeline.  By moving the balances off of established credit cards and closing them to a new cards with no history and maxing it out you will have adversely affected your credit score.  Now instead of four revolving trade lines, accounts, you now only have one. And that one card is over 70% of available credit. If credit history is 15% and credit balances are 30% of your score respectfully, then you've affected a whopping 45% of your score. In this example this could reduce this score even into the 500 range within a matter of weeks. And would take YEARS to get this score back up into the upper 600 to low 700 ranges.

Understanding your credit scores and how to manage them is critical to always being able to obtain the best rates and terms for any loan you apply for. It is always a good idea to check to see what affect a new card or closing old ones will have on your score before you make that kind of change. Always check with a credit score expert before you make any drastic changes to your credit profile. More about your credit score in the following articles.

Don Davis

*Examples only and do not necessarily reflect anyone's actual credit report

How Can I Improve My Credit Score - Three Tips to That Can Improve Your Credit Score in 30-60 Days

When it comes to your credit score obviously the higher the better. But what if your scores are a little low, then you have probably wondered how can I improve my credit score? You probably want it increased fast as well! Below are three tips that can help you and the best part is they can be done almost for free and they work fast!

Free Tricks To Improve Your Credit Score

Get Higher Account Limits- The easiest and fastest way to improve your credit score is to decrease the balance to account limit percentage on your accounts. This is done by phoning the creditor and asking them for a credit line increase. What this does is effectively reduces the percentage of your accounts limit that you have used. The end result should be a healthy credit score improvement in about 30 days. Unfortunately this trick may not work for everyone especially those with very bad fico scores.

Add Accounts To Your Credit Report- This is an old trick and even though the credit bureaus have caught on it still can give you a small score increase.

What it involves is being added as an authorized user on a consumer account that has a good payment history and a low balance when compared to the limit. This positive account will reflect on your credit report and bump your scores up a little.

There is a major drawback to this method and that is if the person whose account you are added to decides to start paying late or defaults on their account it will drag you down with them!

There are two ways to go about this method,one is the paid service and the other is using a friend or relatives accounts.

The paid services cost alot of money and you are putting your trust in a complete stranger. Your friend or relative however is someone that you know and more then likely trust and most times they will do it for free.

Do Self Credit Repair- Self credit repair is very easy and involves disputing old, negative and inaccurate information that is dragging your scores down. As long as you have a copy of your credit report you can dispute these accounts right online.

Once you dispute them the creditors have to prove the accounts are legitimately yours, if they cannot they have to be removed. This method takes about sixty days for the full cycle to complete but is a very powerful method to put to work for you.

So if you are wondering how can i improve my credit score give the above methods a chance and watch your credit score increase quickly.

The Home Buying Process - 6 Ways to Prepare

1. Determine Your Budget

When buying a home, you'll need to set a realistic budget for yourself. This will determine the price range you're capable of paying for a home. First, take a look at your current income and debt. How much do you have left over each month after paying all of your other bills? This will give you a good idea of how much mortgage you can afford.

You should also use a web-based mortgage calculator to divide sale prices into monthly mortgage payments. This is a great way to determine your price range, based on your budget and your ability to pay the mortgage each month.

2. Review Your Credit

Credit makes the financial world go around, and this is especially true when buying a home. Your mortgage lender will obtain copies of your credit report and credit score (yes, they are two separate things) to determine how much they're willing to loan you. So it makes sense to conduct your own credit review, long before you submit your first mortgage application.

Visit AnnualCreditReport.com to request your credit report from all three reporting agencies at once. Check your credit report for errors, and work to get them corrected as soon as possible. The credit reporting agencies (Experian, Equifax and TransUnion) are required to correct any errors on the reports they generate.

You should also get a copy of your credit score from a website like MyFICO.com. Compare your credit score to the national average, which is around 720. Is your score lower or higher than average? If it's lower, how much lower? If it's significantly lower than the national average, you should strive to improve it by paying down your debt, paying bills on time, etc.

3. Start Saving Your Cash

Mortgage lenders will usually check to see how much money you have in the bank. They know that you'll be paying certain fees during the closing process, as well as other unforeseen expenses. The more money you can put away prior to applying for a mortgage, the better off you'll be in terms of qualification and approval.

4. Learn the Process and Lingo

When buying a home, it helps to have a basic understanding of the process you'll undergo and the lingo you'll encounter. Visit a few home-buying websites and read up on the start-to-finish process of buying a home, and peruse a glossary of home buying and mortgage terms. That way, when you run into phrases like ARM, FICO, title insurance, and escrow, you'll know exactly what is being discussed and how it affects you.

5. Find a Real Estate Agent

For most people, buying a home represents the largest financial transaction of their lives. So it makes sense to have professional help, especially if you're a first-time home buyer. A competent real estate agent can help you with many aspects of the home-buying process -- finding a home, validating the asking price, making an offer, negotiating with sellers, etc. You'll have a lot on your plate when buying a new home, so it helps to have someone in your corner to help carry the load!

6. Make a "Need vs. Want" List

When you get into the house hunting process, you'll want to know if each home offers those features that are most important to you. But before you can do this, you have to know what, exactly, those features are. Get out a piece of paper and divide it in half lengthwise. Label one side as "Want" and the other side as "Need."

Now write down the things you definitely need from a house, as opposed to the things that would be nice to have. Make photocopies of your list, and use it as a checklist when visiting a home for sale. Be sure to write the home's address at the top so you can refer back to it later.

Conclusion

Home buying is a major financial undertaking. For most people, it's the largest financial transaction they'll ever go through. So it only makes sense to prepare for such a major, life-changing experience. With a little homework and preparation, your home buying process will be much smoother, safer and more satisfying in the end.

Grasping the FICO Credit Score Scale

Applying for loans has been a pretty simple process for much of the last 10 years. The current financial meltdown, of course, is changing things significantly. In many ways, we are returning to the fundamentals of lending and borrowing. Your credit score is one element of this.

It goes without saying that you want as good a credit score as you can get. The better your score, the better a bank will view your loan application. Why? Your credit score tells the story of your financial life including where you did things well and where you made mistakes.

Most lenders look at your credit report through a filter known as the FICO analysis. The FICO score is the creation of the Fair Isaacs Company who came up with the method for reducing a credit report to a financial figure. This is known as your FICO score and is a three figure number.

The lowest FICO score is not zero, a common misconception. Instead, it starts at 300 and rises to 850 as your credit improves. There are a number of designations as this rise occurs. Anyone with a FICO score of 619 or lower is considered to have poor credit. Borrowers with scores from 620 to 749 are considered from below average to above average as the borrower moves through the scoring range. 750 and up is considered excellent credit and banks are likely to grant any loan application so long as there is no other issue that arises such as insufficient income.

In the current financial market, banks are very risk adverse. This means anyone with a lower credit score is going to find borrowing money fairly difficult. What can you do? The first step is to figure out the problem areas of your credit report and deal with them. Even small changes can raise your credit score significantly. Still, you will not be able to deal with everything, so another step is needed.

Remember, your credit score is used by banks to evaluate risk. If you have a lower score, you are considered a bigger risk. One way to deal with this problem is to give the bank a reason to consider you less of a risk. The sure fire method is to put down a bigger down payment than is required. A larger down payment tells the bank you are serious about making the loan work out because you are highly unlikely to walk away from your own money if you put a significant amount down. Put 25 percent down or more and a bank will pretty much write whatever loan you need.

At the end of the day, your FICO score is very important when it comes to borrowing money. That being said, it is not the end all when a lender makes a decision on your application.

Unsecured Bad Credit Loan: Accepting Bad Credit Without Financial Security

You are in need of loans without collateral and you think it is easy. You go through your credit report and find what? Bad credit! Yes bad credit. You go through questions like how, when where. Well, settle down - you have bad credit. You can't rub it off. All you can do is play along until you abandon it for good credit. You still have a very feasible option called unsecured loan for bad credit.

Since you have a special condition, you need to make special efforts. I say 'special' because bad credit does not literally mean 'bad' in credit lending terms. An unsecured bad credit loan provider will understand this. Everybody thinks bad credit would not happen to them. But the fact is bad credit happens to normal people. In fact bad credit can happen to anyone. Understanding this will make finding unsecured bad credit loan easier.

Now since you are looking for unsecured loan for bad credit this would mean you cannot offer any security for the loan amount you intend to borrow. Unsecured loans are very optimal for those who are looking for loans without guarantee. Usually home is accepted as collateral. So tenants who do not own a home have a realistic option as unsecured bad credit loan. But that does not mean bad credit homeowners are not acceptable as borrowers for unsecured loan. Sometimes, homeowners who do not wish to put their home on risk can apply for unsecured bad credit loan.

For an unsecured loan lender, there is no security for the amount he is offering. This will be reflected in the interest rates. Since you have bad credit also, this will further add to the already increased interest rates. The relative interest rates for unsecured bad credit loan is high. The lender has no claim on any of your asset, unlike secured loans where lender holds the title to your home. But that does not mean lender can't claim the money he lends as unsecured bad credit loan. He will resort to other legal cures to claim his money.

'Typical' interest rate for unsecured bad credit loan depends on your particular situation. A borrower must understand that the interest rate offered to them will not be the same as offered to someone else. Your loan amount, income, credit score, financial condition - all will play a role in determining interest rates. Ask for free quotes, most of the sites are offering free quotes. Quotes will give you the approximate idea about much you are going to pay for bad credit personal loan.

Because you have bad credit, it is important that you know you credit score. Credit score is a three digit number. It is easy to find your credit score. Fico score ranges from 300-850. Credit score above 720 is considered good credit score while below 600 will be labeled as bad credit. Grades are given in approximation to your credit score. The grades range form A to E. since you have bad credit you will have C, D and E credit grades.

For an unsecured borrower, knowing your credit score gives you power to get correct rates for your score. If you don't know your score then you may be charged more for bad credit score.

The amount that you can borrow for unsecured loan can vary with lender. The unsecured bad credit loan lender will provide as low as £500 to as high as £25,000. Unsecured loans are useful for low amounts. For very low amounts you will have to check whether unsecured bad credit loan are appropriate. Sometimes, alternative forms will prove to be better. This will require research and will help you to settle on best deal possible.

Unsecured loans for bad credit are appropriate for every purpose. Bad credit unsecured loans are equally appropriate for home improvement, education, debt consolidation, vacation, automobile purchase or wedding.

Unsecured bad credit loans are providing you with financial security without warranty. You of course have a very potential instrument in your hand. If you are able to employ it in the right way - you will be of course flogging off financial impediments in the most favourable way ever.

FICO 08 Is Coming - Changes Won't Increase Most Peoples Scores, Just Their Interest Rates

New FICO 08 is coming - I suspect that based upon current conditions the increase won't be peoples scores but, their interest rates.

Starting this May, Fair Isaac, the company that provides FICO scores to 90% of the largest 100 banking institutions (according to them) will institute a new and as they claim "improved" model. This model, they predict, will help lenders reduce default rates on their consumer credit files by 5 to 15%.

Scores will still range from 300 to 850 points. A consumer with a higher score will have a better chance of getting a loan at a lower interest rate and the consumer with a lower score will have a more difficult time getting credit and will expect to pay a higher interest rate on that loan or line of credit.

Factors that are taken into consideration when calculating these scores will still be the same: the level of indebtedness and payment history (this is the one to watch and I will explain more below) length of credit history, the number of inquiries and the recent establishment of credit, and the "type" of credit used (department store cards, gas cards, authorized user (this is going to change too), mortgage or auto loan, etc.)

In theory, 2 people that used to have the same scores could now see one score rise and the other score fall. FICO 08 will presumably give more points to consumers who maintain a variety of credit types, a mix of auto, mortgage and credit card debts. This is not unusual as it has always been taken into consideration and valued the different types of credit a person has established. A person with a department store credit card that has always made their payments or even paid the card off every month will usually not score as high as someone who has a mortgage payment that has made their payments on time each month. That would be expected. However, with the "new and improved" model - FICO will penalize an individual who carries a high percentage of their available credit. This means that if you have a good mix of credit, have been making all of your payments on time but carry some high balances on your credit cards - your score will go down. Those that have low credit balances and have maintained good payment histories will see their scores go up.

Those of you that have added "authorized users" to help build up that persons credit profile (you added a spouse or your son/daughter to help them establish credit) will also see a change. This practice, referred to as "piggybacking", won't impact the person's credit score that you were trying to help anymore. It seems that in the past, there have been some companies that provided this service to people with "less than desirable" credit profiles to help improve their client's scores. They would use people with good scores and lines of credit and add people with poor credit as authorized users, in order to boost their scores.

I have read that Fair Isaac claims that with the new scoring system that overall, more consumers will see their FICO scores go up slightly vs. those people that will see their scores drop. Remember, a drop in your score can not only mean that with any new credit that you are seeking you could pay a higher interest rate or even be denied but, your creditors could immediately lower your lines of available credit (triggering a maxed out credit line which could also hurt your score again) and raise your current interest rates based upon your new "risk" factor and invoking a "universal default provision".

Now, let's look at some current credit card trends and see what you think will happen. Do you think most consumers will benefit financially from this or more banks/lenders will benefit financially from this? After all, if more people see a positive raise in their FICO scores, they should be able to get lower interest rates, refinance their sub-prime loans and capitalize on all those 0% credit card balance transfer offers that are flooding the market place right now.

1. Americans are approaching 1 Trillion dollars in credit card debt.

2. Consumers charged $68 Billion worth of purchases last year alone. A 7.8% increase and the largest increase in 7 years.

3. 60% of all consumers carry a balance on their credit cards.

4. According to the Department of Labor - for every $1,000 of disposable income, the average American spent $1,005.

5. In 2007, credit card debt hit an all time high of $943.5 Billion and has grown 22 percent in the past 5 years and more than doubled since 1996 - according to the Federal Reserve Board.

6. In the 1980's the American consumer saved between 10 and 11% of their disposable income. Since 2005, according to the US Department of Commerce, Americans have saved less than 1%.

7. In 2006, credit card companies made $17 billion, just in penalty fees, according to U.S. PIRG (The Federation of State Public Interest Groups).

8. In 2006, consumers received nearly 8 billion direct mail credit card solicitations.

9. Some credit card contracts say in the fine print that the company may change terms, including interest rates, "at any time for any reason, including no reason". This is a practice called a "universal default provision". This means that if you are late on a payment, if you apply and are denied credit, even if you have made all of your payments on time but are carrying a high balance that triggers a lower FICO score showing that you are more of a credit risk... you could see a rate increase across most of your credit cards. For an example: If you had 5 credit cards. You made payments on time to 4 of them but were late on the 5th card, all 5 credit card companies could invoke (if they had this provision, most do) the universal default provision.

10. The average credit card rate of interest when enforcing this "universal default provision" is as high as 36%.

11. According to CardTrack.com - the percentage of people that are delinquent on their credit card payments is the highest it's been in three years.

With the new FICO 08 model - anyone carrying a balance of over 50% of available credit (meaning if you have a credit card with a $5,000 credit line and you owe $2,501 or more) you will be penalized for it.

Credit score of material than ever before!

Over the years, we have helped our clients and friends to learn about their credit score. Now more than ever, your credit report is very important, the most favorable price and financing of any received today. This applies to everything you want to rely on the automobile, truck, car, motorcycle loans to loans, all-terrain vehicle description, not to mention lines of credit, credit cards, installment loans, auto and home insurance costs, and may even employment opportunities, not to mention mortgage.

Given the current and projectedThe credit environment, we strongly recommend that you monitor your credit report. About 75% of credit reports contain erroneous information. This can only hurt your results. Let alone have not been resolved, and a significant impact on the current achievements of the past. No one, its score should not be in the 700 + range, and will stay there, if you know all the factors, your guests, they will be able to manage these factors to obtain high scores.

AsThe current environment, we recommend that you check your credit report, or increase your high score is now, and then maintain the high score. Under normal circumstances, there are some very simple things you can do your income has increased significantly. This figure is a credit or line of credit, repayment period of the project, at least below 50% of the disposal.

We recommend that you do so, rather than wait until soon you want to create some kind to buy or re-financing, only to findYour results may be the cause, you have to pay higher interest rates or even decline the loan.