Is Your FICO Score Above Or Below the Average American?

According to research from the large credit repository Experian, as of November 2009 the average credit score in America was 692. Experian uses the Fair Isaac Risk Model or FICO which is a credit scoring model. The scale ranges from 300 to 850. Today, a 692 is considered a B+ score. You need over 720 to get an A and over 740 to get an A+. 697 is considered "very good" and can still get you a loan with a pretty good interest rate.

Once you reach a score of 720, you are in the "excellent" range and can definitely qualify for loans at the best interest rates available. This is why it is so extremely important to stay on top of your credit and to have a good understanding of how credit scores actually work. Knowing your current status and setting goals for your future status can help you to save literally thousands and thousands of dollars in interest depending on how much you end up borrowing.

When it comes to mortgages, if you have a credit score that exceeds 620 and you can provide proof of enough income to comfortably handle all your debt, you should be able to get an FHA mortgage. But FHA loans come with 2 types of insurance that need to be paid- mortgage insurance premiums (MIP) and private mortgage insurance (PMI). MIP is an amount that is typically financed into the loan. It runs 1.75% of the amount borrowed. PMI usually will run .5% of the loan annually.

If you happen have an average American credit score, you can either be content with that and accept the fact that you are paying a little more on your interest rates, or better, you can begin working on your score to bring it up to a level that will qualify you for lower rates.

There are many ways that you can improve your credit score.

First of all, the easiest way to establish better credit is to pay all your bills on time. The timeliness of your bill payments accounts for 35 percent of your total credit score.

You should also try try to keep your balances at less than 50% of your available credit. The lower, the better. This calculation, which is averaged over all your open accounts, represents 30% of your credit score.

The next item to look at is how long you have had accounts open. The longer the history of an account, the more it will help your credit (provided that the payments have been made on time.) While there's not much you can do to change the length of your credit history, one thing you should definitely NOT do is close any accounts that have always been in good standing. This certainly helps older people more than the young but suffice to say - if you have some good paying accounts, keep them! If you have teenagers, work with them to start building good credit early on in life.

Having many sources of credit is usually a positive, as long as they have been managed well, meaning the payments have all been made on time. This aspect can account for up to 10% of your score.

Avoid signing up for multiple credit cards in a short time period. This will generate inquiries on your credit report. An inquiry by itself is not bad but if you have many inquiries it can lower your score. Limit applications to what you really need and definitely do not sign up for a credit card just because you get an application in the mail. Remember, Pre Approved just means that you live in a neighborhood where some of your neighbors exhibit timely credit payments, that's all.

So what do you say? Are you better or worse off than the average American?

Unsecured Credit Cards - General Information

An unsecured credit card is similar to an unsecured personal loan, because all it requires is your signature, without any form of collateral, and there's no money down (no deposit). However, the interest charged by the credit card company is calculated differently and generally at a higher rate, which makes it less attractive than a personal loan from a bank.

Another type of "unsecured card", which really isn't a credit card, is called a merchant card or a catalog card. This card allows you to purchase products from a specific catalog, store, or vender only. If you need an unsecured line of credit only to buy gifts, this type of card can be useful. The danger with unsecured cards is that it can be easy to accrue too much interest debt if you don't pay off balances quickly. However, responsible use of an unsecured ones is one of the best ways to improve credit scores. If your future plans involve buying a home or car, an unsecured credit card can help you achieve loan approval.

Unsecured credit cards range from no perks to cash back bonuses. Which issuer will approve you will be determined after a review of your report. If you have bad credit or bankruptcy, it's not likely you'll get approved for an unsecured credit card. If you don't have perfect or near perfect credit, it's unlikely you'll get approved for a platinum unsecured card. There are other unsecured cards between these two ranges.

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Fair Isaac Credit Score Squeezed By Crunch

On April 29, news broke that Wall Street resulted a shocking 12 percent drop in the well known Fair Isaacs' credit scoring giant. FICO is feeling the affects of the credit crunch, with consumers cutting back on making big purchases, banks tightening on lending, and credit card companies tougher restrictions, are hurting the demands for the credit scores. At the same time FICO pricing is having heavy competition with other credit scoring firms.

Fair Isaac CEO Mark Greene's efforts to improve the automated scoring system, cutting the cost, and reconstructing the sales is not working and has announced that a plan to push out six money eating lines of business.

In early 2006, the companies share fell from $50 to $35 by November, when then CEO Thomas Grudnowski stepped out of his position. Now the shares are less then $25 making times harder for the business due to the exotic trends of the sub-prime lending.

Fair Isaac Corp., is introducing a new and improved product model called FICO 08 that will help address some of the past complaints and flaws in their product. FICO 08 will due better in predicting potential loan defaulting. Supposedly the new system will reduce default rates on consumer debt by 5 to 15 percent by changing:

Authorized Users- The new credit scoring system eliminates "piggybacking" which allows an individual with poor credit or no credit to be an authorized user on an account holder with strong credit to help build credit score.

Delinquency- FICO 08 will be more forgiving to consumers that have occasionally slipped on making payments on certain bills but are still current on the rest of their bills, while coming down harder on repeat offenders.

The scoring criteria will still remain in the range of 300 to 850. The factors that would take into account to determine the scoring will remain the same like payment history, credit history, amount of debt, and the ratio of debt.

Loss Mitigation Leads Loan Modification Secret Tip!

Internet Loss Mitigation Leads

Most loan modification leads are being generated online with banner ads and affiliate websites offering foreclosure prevention help. We have all seen these ads pop up all over the internet in response to the biggest increase of foreclosures in decades. The problem is that these ads are launched on a network of websites that sell the leads over and over decreasing your chance of closing a deal. Internet shoppers tend to be more competitive by nature and it doesn't help when you have 4 other brokers calling the same homeowner. Another problem is that the leads are not qualified and sometimes don't even remember filling out their information. These leads end up being just short of a cold call.

Telemarketed Loan Modification Leads

There is hope however. Call centers that do outbound telemarketing for mortgage companies are in a unique position to provide some of the most responsive telemarketed leads for loss mitigation and loan modification firms. While generating mortgage leads in a call center, thousands of calls must be made each day just to get a handful of qualified mortgage leads. The average conversion is 12,000 phone calls to generate 100 mortgage leads. The reason the ratio is so low is because so few Americans qualify for a traditional refinance these days. So what happens to the other 11,900 people that were contacted about their mortgage? Some of them already have the best rate possible, some were not responsive but the biggest reasons that the leads get disqualified are because their LTV was too high or their credit score was too low and a vast majority of these homeowners are either behind on their payments or currently facing foreclosure. With a few added qualifying questions an appointment can then be set or this new loss mitigation lead can be transferred directly to your office, where a loan modification specialist can take the call right away.

Loss Mitigation Leads

The program is good, not only for the loan modification company but for the call center as well. As the old saying goes, "one man's trash is another man's treasure". Due to the demographics making it easier to generate loss mitigation leads the price is a lot lower as well. Some call centers charge per hour for their telemarketers but since this campaign is not ran as a stand alone process the costs are a lot cheaper. The average exclusive mortgage lead can run up to $95 with filters like 640 and above fico scores and below 70% LTV (loan to value) and and a current interest rate above 7%. These are hard to come by even at $95. Most telemarketed loan modification leads range from $45 to $65 and come with guaranteed criteria filters as well as guaranteed exclusivity.

Why is My Credit Score So Important?

Why is my credit score so important and what does that mean to me? Well it could mean the difference between whether you can get a job, rent an apartment, buy a car or buy a house. If your credit score is poor, it can also mean you'll pay higher interest on everything. It's basically a number that says how effectively you deal with your finances and your life.

First you should know how your FICO score is computed. Your FICO score is comprised of 5 different areas. Your payment history accounts for 35%, amounts currently owed on all your bills accounts for 30%, and the rest is divided up by length of credit history, new types and used.

On the other hand, some things are not included in your credit score Things such as your race, your salary, where you live and your age. So don't feel singled out about these issues as none of them are taken into consideration.

Credit bureaus use a range of 300 to 850 to classify your score so the obvious applies. A score of 300 means it is literally impossible for you to obtain credit If you have a score of 700 to 850 you're considered a good risk so when you obtain credit it will come with a lower interest rate. The average American is thought to be somewhere in the middle.

How can you change your poor score? First you should get rid of your credit cards. Call the customer service number on the back of the card and tell the agent you want this card "closed by consumer." Also request that they send you a letter documenting your conversation. Each time you do this your score will improve. Too many credit cards equal a poor score. Always make your payments on time. As we progress through this country's financial crisis, making a late payment on anything could increase your interest rate to 29.9%. That means your payments will sky rocket. The rules have stiffened so you must take paying your bills on time seriously.

If, for some reason you find your identity has been stolen, report it to all 3 credit bureaus without delay as this will definitely affect your credit score Ask them to flag your account so you won't be responsible for some thief who is recklessly spending all your money. Also, report it to the police immediately and get a police report. That will be important down the line.

Your score good or bad will have an effect on your life. It's important that you know what your credit score means and why you're score is so important. So take it upon yourself to find out exactly what your score is and move forward from there. Take the time to work on improving your score and your life will be that much easier. You also won't have to deal with rejection.

Review Cheap Credit Cards Promotions Before Signing Up

Most folks regularly look for a zero percent transfer credit card because they realize that they can save plenty of cash on interests for their personal loans. On the other hand, there are plenty of "not so streetwise" people that do not make full use of this positive aspect of 0% interest credit cards. It is when they read through their bank statements with someone else that they finally understood what they were losing out. Another slipup these folks commonly make is to quickly terminate all their existing cards and get another 0 percent transfer credit card without comparing the terms or/and charges. In order to prevent falling into such monetary snares, it is best to fully consider all related factors carefully before deciding on the ideal low APR card deals.

If you have never attempted finding out the cheapest rates from different purportedly 0% transfer cards, you will never know that there is a great range in the debt interest rate of credit cards. Some will be approximately 5% while others are exceeding 30%. If you think that 0 APR transfer cards are only available for those of you with above 675 FICO credit history, you are rather wrong. Most credit card issuers formulated low % transfer cards to increase businesses and the introductory offer may decrease to 1%. These deals are generally meant only for a temporary time and you should do it now to qualify for these benefits.

Do not forget to take note of the new finalized debt interest charges after this sales window has ended. Credit card firms cannot upkeep the reduced interest rate at 1% for very long since they are profit-based companies. The overall debt interest charges may lead to more interest charges than what you have been paying previously. Therefore, do not be scammed whenever you get an offer for a 0% transfer credit card. Do not forget to spend a little time to review the terms/conditions and calculate the attainable savings from these low % credit cards.

A point to be careful about is when comparing the debt interest rates from various credit card companies. It is acknowledged that different companies compute their APR figures inconsistently. Check that you add into consideration all such variations to get a fair judgment. Another problem is the wide fluctuations in the surcharges added on late debt payments, which makes comparing credit card offers complicated.

5 Little Known Tips on How Having No Debt Affects Your Credit Score

Can Having No Debt Improve Your Credit Score?

If you have no debt, you should be considered a financially responsible person and a prime candidate for loan acceptance, if you should decide to borrow money for any reason, right?

That depends. If you don't have any debt simply because you have never borrowed any money from a commercial lender, then you also don't have any credit history. And if you don't have any credit history, most lenders will consider you a high-risk prospect because they have no way of knowing how responsibly you handle financial obligations.

FICO Score Effects

But if you have a credit history, and have simply decided to pay off all your debts, your decision will be reflected in your credit score. Your payment history--which for most people is a record of month after month of payments on various accounts--constitutes 35% of your FICO credit score. And you FICO credit score is a major factor in determining how much money you will be able to borrow in the future.

But what if you pay off all your debts, so that your record of monthly payments is suddenly halted in its tracks? What will that do for your FICO score?

Strangely, it will not do much to improve it in the long run.

Why Is Recent Information More Important to a FICO Score?

Your FICO score places much more emphasis on your recent financial transactions than it does on what you may have done in years past. Lenders love to know what you have been up to lately, and if you decide to close out all your loans, they won't have much information at all to help them. You'll still, almost certainly, be paying utility bills, and insurance, but neither of those is considered a long term debt, and in turn not affect your FICO score.

So how can you minimize your debt without minimizing your credit score? Keep a few low-interest, no-annual-fee credit cards open; maintain tiny balances on them; and pay them off each month. Most credit cards have grace periods during which no interest is charged, and if you pay off your purchase each month within those grace periods, you will boost your credit score without building your debt.

Watch Out When Dealing With Old Defaults

You may also be surprised to learn that if you once defaulted on a debt, and now have the financial means and desire,to pay it, doing so can actually hurt your credit score. How? Any time you take action which involves your credit, it shows up as a recent transaction.

Deciding to pay off an old default in your quest for no debt, may make it appear to be a new one, and new problems weigh more heavily against your credit score than old ones. If the default you want to correct is over seven years old, it's more than likely been dropped from your credit report and is no longer used in determining your score. If it's more recent than that, see if the collection agency which was managing it would be willing to agree in writing to remove it from your report before you decide whether or not to pay.

It may not seem sensible that having no debt, or wanting to pay off old ones, can hurt your credit score. But credit is all about what you have done for your creditors lately, so a little or no debt, responsibly managed, will actually look better than none at all.

The Secrets To Understanding Credit Score Meaning

When you begin to delve into the many websites looking for ways to improve your loan for a new car, home, or personal, you may be interested to know what your credit score. Understanding the meaning of your credit score is critical to figure out how it affects the amount of money a bank will lend you.

Many people want to find out their credit score meaning in order to improve it by paying off more of their current debts like credit cards and other loans. Other people just like to keep track of their credit score to ensure their personal financial security.

The credit score meaning allows you to be more in control of your finances and once you understand how much banks look for to give you a certain amount of money you need, you can then work proactively make your dreams a reality.

Many people go through life without ever really knowing what their credit score is or does and they do not realize that there are many websites and financial institutions that will tell you what it is.

Your credit score is no government secret - you have ever right to know your credit score meaning [http://www.averagecreditscore.net/credit-score-meaning.htm]. If you are one of those people baffled by what a credit score is, then here is a brief look into the credit score meaning.

A credit score is a number usually between 300 and 850 and it is based on how much money a certain individual makes and how money they owe to other companies.

This number will be used by credit card companies and banks to determine whether a person can handle paying back another loan, or how much is feasible for them to pay back successfully.

All companies want to avoid bad debt and by assessing people's credit scores, they can also assist with different interest rates and by applying credit limits onto cards. This will prevent you from spending more than you can pay back.

Credit score meaning is basically how much you can afford to pay someone back each month after your other expenses and debts have been deducted from your salary.

The credit score meaning of an individual can change depending on which credit reporting company that you get the credit score from. There are three major companies called Equifax, Experian, and TransUnion.

They all use different methods to come up with your credit score by analyzing different statistics and the information used along with other determining factors.

So, if you want to find out your credit score meaning and what you credit score is, you can find many websites offering it for free, so that you can have 24 hour access.

Why Is It Important To Understand Your Credit Score?

Trying to fix your credit score is an excellent idea but understanding the score can be a problem for some people. You too may find it difficult and confusing when it comes to understanding your credit score. The excess of numbers and literature that doesn't make sense can definitely aid in your lack of understanding your credit rating.

The first thing to know when understanding your credit score is simply what is it? Well most simply put it is a mathematical system with different numbers that are calculated and compared to find your credit risk. Usually the system that is used is called a FICO score. When it comes to understanding your credit rating you need to know that the score itself is used to evaluate how worthy you are to receive credit. Points are given to you based on the exact content of your credit report. The basics of understanding your credit mark know that the range is from eight hundred and fifty, which is the highest, to three hundred, which is the lowest. You should always aim for at least six hundred and fifty if not higher.

Of course the first thing you need to know in understanding your credit score knows what yours is to start with. Those with seven hundred and above have excellent credit and are doing well. Those with these types of scores can easily get accepted for new credit or loans and will most likely receive offers with low interest rates. Setting your goal to be at seven hundred or above is a good one to try to obtain.
Before you can begin understanding your credit mark you will need to know how to get a copy of it. Ordering it from any credit-reporting agency can easily do this. There are of course three of these and each has different information based on different things. But do not order them randomly as this can cost you money in the end.

Of course while you are in the process of understanding your credit score you may find it is lower than you would like and you would like to get some help to improve this. There does plenty of help in not only understand your credit mark but in making it better as well. This advice can be found online for free or even from book and tapes as well. Another option is credit card counseling services too.

If you find that you are having an easy time understanding your credit score than you should try to check it once a year. This will also help you keep it in good standing by finding any mistakes early on and being able to fix them as fast as possible.

As you can see understanding your credit rating can be done with a little patience and time. Understanding your credit rating can also help you in many ways from improving it to making sure there are no mistakes and if there are being able to fix them as soon as possible. So if you do take the time in understanding your credit mark you will find it is well worth it.

How to Get a Free FICO Score Credit Report Online

Your credit score, commonly referred to as a FICO score, is a numerical representation of your current and past financial tendencies. Essentially this score is used to show potential lenders exactly how likely you are to make your payments on time. The higher your score, the more trustworthy you will appear to anyone who is considering whether or not to give you a loan.

How is My FICO Score Calculated?

Your numerical score is the direct result of your past and present financial activities being passed through a complexed mathematical formula. This process takes all of your previous credit cards, mortgages, utilities, car payments, and many other debts. into account. The more consistently you have made all of these payments on time, the higher your FICO score will be.

It is very important to frequently look over a copy of your credit report, as errors, fraud, and out of date information are very commonly overlooked and can have a drastically negative effect on your rating. It has never been easier, more affordable, and more important to check your report. The internet provides an excellent opportunity to obtain a free copy of your FICO score.

What is the Average US Credit Score?

FICO scores generally fall into a range between 300 to 850, with 300 being the lowest (bad credit), and 850 being the highest (excellent credit). The average score for borrowers in the USA is approximately 720. Lenders will usually tend to give clients with a score of 700 or above a more favorable interest rate and terms on their loans. While those with a 600 or less will generally receive a higher interest rate and tighter restrictions.

Bad Credit Card - What is It and How Do You Clear It?

What exactly are bad credit cards? What exactly makes one "bad" In the first place? A bad credit card is in fact a negative credit card rating. What is a credit rating may you ask? A credit rating is a form of "credit score", in which uses a form of mathematical algorithmic calculations to calculate a person's "credit-worthiness". This method of scoring is usually conducted by consumer reporting agencies or credit bureaus. Money lenders usually rely on these ratings to ensure one is eligible to be given a loan.

The credit rating of a person will show whether a person is capable of paying back a loan or other credit obligations. The higher the score usually means a person is more capable of paying back. It's pretty simple, take for example; a person with a credit rating of 750 is highly likely to pay back his or her loan as compared to someone with a credit rating of 300.

So how does one acquire a credit rating so low it's labeled a "bad credit rating", also known as adverse credit history? For one, inability to pay back your credit transactions and delaying the payback of any form of credit obligation can cause your credit rating to decrease because the creditor will report these instances. One's credit rating can be calculated by referring to the amount of outstanding credit against the amount owed, your credit and payment history, types of credit, how long you've had credit and so on. Repeated offences can also lower the rating.

The next question should be, "So how do you clear bad credit?" Although there never really is one simple step to completely banish bad credit, there are steps you can follow to eliminate it slowly. First thing you should be completely aware of is this: To err is human, and that even creditors can make mistakes. So do request for a copy of your credit report from a consumer reporting agency or a credit bureau and to review it to make sure there aren't any errors. If an error is found, you may either contact the bureau directly or to contact your creditor first as they will contact the bureau on your behalf. The next step is to take note of your debts and to pay them back! If you find your debts to be too much to handle, contact a credit-counseling organization in your area, as many of these organizations are in fact non-profit, get them to set up a debt-consolidation plan just for you. They can even contact your debtors on your behalf to reduce or eliminate finance charges, and this is a tremendously important step in helping you lower your credit score.

The next best thing to do is to close your credit accounts! So cancel your accounts and cut up those plastic cards. Try to clear your debts as soon as possible, whether you'd have to sell of some your valuables or liquidate your assets, DO IT! Stick to buying what you need instead of what you want in order to save enough to pay back. Just remember this: Once your debt has been paid, a great burden will be lifted from you. Remember to pay your bills and mortgage promptly every month and try not to build-up debt as that is what put you in that bad situation in the first place, in order to acquire a cleaner credit history once more.

A credit card rating may seem like something to put us down but it is actually an aid to ensure credit is calculated without any prejudice and is calculated fairly. Just remember to always clear what you've purchased as soon as possible and to not spend out of your means.

A Quick Guide to Credit Score Analysis

There seems to be a lot of confusion about credit scores. There are three main bureaus that calculate your credit score. They do not reveal the exact formulas that they use to come up with a score. What you do need to know is the range of the scores and how good your credit is considered in those ranges. Here I will show you how to do a credit score analysis on your own.

The Top Scores

• An 850 is the highest credit score you can have. Very few people get to this top number. The generally accepted range for excellent credit is between 750 and 850. If your score is within these numbers you should have absolutely no problems getting a loan and a great interest rate. From 700 to 750 is still considered very good credit. Loans should still be very easy to come by at very competitive interest rates.

The Middle Scores

• Between 600 and 700 is mediocre. The closer you get to 600 the more difficult it will be. You will be paying considerably more in interest and you may be turned down at times. You may also need a cosigner in some cases. If you've done a credit score analysis and found yourself in this range look at it this way, you're not too far from where you need to be.

The Bottom Scores

• Anything under 600 and all the way down 300 is considered bad. The 500s seemed to be where many people struggle. At this range you are not completely out but it will take some time to turn things around. If you get approved for a loan it will likely be at very high interest rates. I would consider working towards raising my credit score first. Anything below 500 is terrible. I've rarely seen scores in the 300 and 400 range. This is usually a sign of multiple repossessions, foreclosures, accounts in collections, and other various negative items.

Keep in mind that no matter how bad your credit is you can work towards improving it. This is not an overnight process and depending on how low your score is it could take months or even years. If you have done a credit score analysis and found that you are not where you need to be, do something about it. There's nothing worse than being in the exact same position that you are now years down the road.

Mortgage Loan - Understanding FICO Scores

Apply for a mortgage loan and you'll soon become familiar with FICO scores. Here's a primer on the infamous FICO scoring process.

FICO scores are merely a mathematical representation of your credit record. Credit records are simply a recording of your debts and assets. Credit card balances, for instance, are a debt that appears on your credit record, as do late payments, bounced checks and so on. Credit, of course, is a huge consideration in the mortgage loan process.

A "credit score" is a figure that represents an overall valuation of how you handle credit and the risk level associated with giving you more credit, to wit, a mortgage loan. The loan underwriter will review your credit report for items such as payment history on debts, debt balances and types of credit you already have. A summary of this information is represented by a figure known as you "FICO score."

FICO

You may be surprised to learn that "FICO" doesn't stand for any credit-related terms. Instead, it stands for Fair, Isaac and Company. This company developed the mathematical formula that produces the much loved or hated FICO scores. The FICO score assigned to you determines whether you love or hate the formula.

FICO scores come in a range of three digit numbers. The lowest FICO score you can get is 350. The highest FICO score is 850, a score for which bankers will bow at your feet. The higher your score, the better your credit situation and the more likely a bank is to provide you with a mortgage loan.

Most people do not have perfect credit. To this end, we find most people have FICO scores ranging from the low 600s to the high 700s. Mortgage applications typically are not rejected because of a few late payments.

If you're considering purchasing a house, you should always try to pre-qualify for a mortgage loan. Getting a reading of your FICO score should be one of the first steps.

How Do I Check My FICO Score Online?

Your credit score is usually referred to as FICO score and is basically a simple numerical calculation of your financial activities, both at present and in the past. This score is essentially a sort of indication that financial institutions use to determine whether you are a potential bad risk or a potential good risk to the business of the institution. This score also helps them determine if you would make your payments on time.

The higher your score in on your credit report, the more and better options you can choose from while applying for a loan. Through your credit reports and FICO score, institutions can not only measure your efficiency, but also determine if you are trustworthy.

Calculating Your FICO Score

Calculation of your percentage score is done on the basis of the financial activities that you have been involved in, both in the past and the present. This calculation is done by using a complex math formula. While calculating your score there are several other things that are taken into account. These include public records, wage attachments, law suits, liens, the credit cards that you have had before, car payments, home mortgages and several other debts and utilities. If you have made your payments in time, you will have a higher FICO score; where as bad records would mean a lower FICO score.

However, it is imperative that you go through a copy of your credit report on a regular basis; so that you can check for any sort of frauds, errors or wrong information. These things are very important and can cause a negative rating when these are overlooked. With the change in times, the whole system has become more transparent and this information is readily made available to us. You could also obtain a free copy of your FICO score on the internet.

The Average FICO Score in the USA

Usually FICO scores are within the range of 300 and 850. Here in, 300 is the lowest score that you can have and signifies a bad credit. Where as, 850 is the highest credit score that you can have, and it would mean that you have an excellent credit history. For an average American borrower the score is just about 720. This means that lenders would render better business to the people and people with high scores would thus, respond in a favorable manner. However, those with lower score have to either deal with restriction penalties or a higher rate of interest.

What's a Credit Score?

Are you as perplexed as most people when it comes to understanding what your credit score means? Simply put, your credit score is a measure of your past ability to make payments on time and manage your credit. It's designed to help lenders determine how likely you are to pay back your loan.

The number is calculated using a formula created by Fair Isaac Corporation, which is why it's also referred to as your FICO score. Consumers may feel like they are back in school again, doing everything possible for a few more points to increase their credit score. Today's economy and the aggressive marketing of three-digit credit scores has practically turned a high score into a status figure - but it's so much more!

The nation's three largest credit reporting agencies -- Equifax, TransUnion and Experian -- use FICO software to calculate scores. The information used in determining your FICO score comes from a variety of places including major credit bureaus, credit card companies that issued you a credit card, banks and other financial institutions where you have loans, and other databases containing consumer data that may influence your score. The reporting agencies then sell the scores to lenders that underwrite car loans, cards, mortgages, and other types of credit.

Unlike the score you received from the science or math quiz you took in school, this score can have a direct and severe impact on your everyday life! Credit scores now affect everything from car loans and mortgages to credit cards and auto insurance, and even employment!

The numbers are added up and your score is one determining factor in whether you qualify for low cost credit, higher risk credit, or no credit at all. The way the scoring range works, the higher your credit score, the better your credit is. This translates into lower interest rates on loans or other type of credit you may be attempting to obtain. On the flip side, if you have a low credit score you will pay higher interest rates, or possibly be turned down completely.

Lenders, such as bank and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Using credit scores, lenders determine who qualifies for a loan, at what interest rate, and at what credit limits. The most widely known score in the United States is FICO (the most widely used in the mortgage industry), but there are many others, such as NextGen, VantageScore, and the CE Score.

Credit scores have been used by lenders for over 35 years. Because a score does not consider race, sex or ethnicity, it is generally considered to be the most fair and objective underwriting tool available to lenders.

As you can see, your score has a major impact on your everyday life, so it is imperative that you monitor your report and score to maintain the highest score possible.

Do it Yourself Credit Repair - Is That Feasible to Improve Your Credit History Yourself?

Where there is a will there is a way, if you want you can repair the credit score on your own. The thumb rule is to be alert and avoid any laid back attitude.

No would be like to be penalized with a high APR on credit card, or keep paying the credit card debt for 20-30 years or find abnormally high transaction done on their credit card due to identity theft or data loss. If you are planning to apply for a new credit card or make one of the important purchases like buying a home or auto or get an educational fund, make sure your credit score is neat and tidy.

To start with, get an annual copy of your credit report from one of the three consumer reporting companies -

• Equifax,
• Experian, and
• TransUnion

This report gives you an elaborate detail of the transactions made. You can clearly see the late payments made if any, exceeding usage of credit limit, number of credit accounts and their type. These are clear pointers to alert you on a judicious use of credit card. If you have failed to make payments on time or have repeatedly maxed out the credit limit, or have default payments under collection notice, it is a potential threat to your score. Credit score is nothing but a number of three digits, something equal or greater than 700 is considered good, a range of 700-500 as average and below that is poor. So a bad score can indeed be a hindrance in applying for future loans. Revise your spending and payment habits to keep your credit numbers up to date.

Regardless of a good history if you find your report has suspicious elements, do not hesitate to raise a dispute with the credit bureau. Some of the likely reasons can be an incorrect report sent from credit card companies to the credit bureau or an identity theft on your credit card with malicious usage. Send a mail to the consumer reporting agency clearly stating the items you think are incorrect, the related source and the reasons if possible. Keep a copy of the report and notify the respective source (creditors) as well about the misleading information. Normally it takes 30 days to investigate the dispute raised. The consumer bureau agency verifies the incorrect items with the source - credit card companies, retail outlet or any purchase store. Once verified, it is corrected in your credit report and you can resume your activity as planned, you can reapply for loan or make a transaction etc.

5 Things Your Credit Repair Service's Contract Must Specify

Hiring a credit repair service is certainly the route you want to take to get back on the right track. There are certain things you can take care of on your own, but something as serious as your credit needs to be left for the professionals. To make sure you hire a safe and reliable company, here are five things your contract must specify.

1. Payment terms

Unfortunately, you are going to have to pay the service for their work. Prior to agreeing to anything, make sure the contract you sign specifies exactly what the payment terms for the services is. You want to know exactly how much you are going to pay for all of the services that are done.

2. Description of services

Having a detailed description in the contract of the services that will be performed eliminates any risk of you being scammed. You want to know specifically what the company is going to do for you to repair your credit. The more information that is detailed, the better off you are in the long run.

3. How long will it take?

Any credit repair service can get you back on the right track, but how long is it going to take them? Even you can begin to repair your own credit over a year or two. However, most people do not have this long to get things turned around. This is precisely why you want to hire a service because they are professionals. Although it may not be possible to give a specific date, there should be a ballpark estimate of how long it is going to take.

4. Guarantees

Are there any guarantees the company is willing to make? A legitimate credit repair service will offer a money back guarantee if they cannot repair your credit by a certain amount of time. This shows they are confident about what they can accomplish.

5. Contact information

The last thing you want your contract to specify is the company's name and contact information. This should include an email address, phone number, and physical address. You want to make sure you can get a hold of someone to have all of your questions answered. After all, you are trusting a company to take care of your finances and credit problems.

The more information your contract includes, the better off you are. You do not want to assume a company will perform certain services and not have it in ink. These are just a few of the many things you want your credit repair service's contract to specify.

What is a Good FICO Score

FICO scores are calculated to determine one's creditworthiness. A good FICO score would ascertain one's capacity to pay for credits or loans for a particular period and would establish one's creditworthiness. Good FICO scores range from 660 to 850; the higher one's FICO score is, the more creditworthy s/he is.

When one has a good FICO score, the best perk that one can get out of it is that s/he can get loans or credits faster. Due to the power of the internet, good FICO scores may be delivered at high speeds directly to finance institutions to enable these firms to speed up their decisions on loan approvals. Good FICO scores are also invaluable in fair credit decisions which focus on the information related to credit risks rather than personal factors. Although credit reporting agencies strongly attest that credit scores are not affected by factors such as gender, race, marital status or religion, there are a number of people who disagree which is why good FICO scores are highly regarded, since having a good standing may obliterate the effects of personal factors. Further, good FICO scores would ensure more available credit to consumers since these ratings provide precise information which finance firms may use to approve loans and credit. Good FICO scores are also predictive in nature since they can be used to predict the person's ability to manage his/her credits in the near future. Since good FICO scores may obtain additional credit and loans, an individual having a good FICO score decreases credit costs for borrowers. Lower costs and increased efficiency in the credit granting process amassed by finance firms have been passed onto creditors which makes credit costs lower.

Good FICO scores are possible despite having poor credit performance in the past. Poor FICO scores only provide a limited picture of the risks which the individual had in the past which s/he was able to overcome to come up with a good FICO score and will not haunt him/her forever.

Fix Bad Credit - 3 Amazing Insider Secrets That the Credit Bureaus Don't Want You to See!

The Credit Bureaus exist for one reason, and one reason only...to make money! Each and every one of the bureaus is a publicly traded company. They make most of their revenue by selling information to lending institutions, insurance companies, utility companies, credit card issuing banks, and employers.

They DO NOT make money by researching your disputes...in fact, it costs them time, money, and resources to investigate them. Is it any wonder then who the bureaus ultimately serve?

Bureau Secret #1 Credit Bureau Reports - Your 92 Scores

Reports and scores are created "on the fly" whenever they are requested by you, a creditor, or a lender. In fact, you can have up to 92 different scores...23 different scores for each Bureau: Trans Union, Experian, Equifax and don't forget the little known "other" bureau named Innovis.

Remember your credit scores can vary drastically depending on who pulls the report and the particular profile applied to you. This Bureau process is especially problematic if you are thinking of getting a home loan or mortgage. The score you see if you request it from a major reporting bureau or an on-line service WILL be different - and probably much higher than the score you receive from a Mortgage Broker.

Why?

One reason is that when you pull a report from an online service 18 elements of identification have to match exactly. For example, all of the letters of your last name need to match. That means you are more likely to get accurate information.

When the bureaus pull reports for lenders, usually only 9 elements have to match, for example only 2 letters in your last name. So, more errors and erroneous information will appear on your score - lowering it. Why do the Bureaus provide different - and LOWER - scores to lenders?

Because they've decided that by reporting lower - more conservative scores to lenders, they would be less likely to be sued by lenders if the borrower defaults on the loan.

Do you think the major reporting bureaus care about showing lenders your true credit worthiness? I am here to tell you that they don't! Matter of fact, if you would like to find out more information about how the bureaus are royally screwing over the American Consumer, I have created a newsletter that details shocking news about the 3 Major Bureaus

Bureau Secret #2 Credit Bureau Reports - Your Scores are NOT Accurate

Did you know that your score is probably inaccurate? According to a recent Public Interest Group Research study, more than 70% of Reports contain errors. Oh sure, the Bureaus say to the public that only 20% of reports contain errors, but that's a bunch of Bureau bologna, because when they are in court under oath they admit that more than 50% of reports contain errors.

What kind of errors are probably on your report - and making you pay more for your home, auto loan, insurance, credit cards and student loans? The study found that 29% of reports contain serious errors that don't belong including; false delinquencies that can kill your score.

41% of reports contain personal demographic information that was incorrect, outdated, or misspelled.
20% of credit reports - 1 in 5!!!! were missing major loan mortgage or other information to demonstrate the worthiness of the consumer.
26% of reports contained accounts that were in incorrectly listed as open (or) "closed by credit grantor." When your account is "closed by grantor" it looks like you did something wrong and that's bad for your scores.

Bureau Secret #3 What Is Your Real, Accurate, and True FICO Score?

Did you know that over 90% of the financial institutions in the world will use scores from one organization only? The name of that company is Fair Isaac Corporation or as they are more commonly known FICO.

The location where I recommend that you purchase your credit scores from is from the Fair Isaac Corporation at their main website. Now, I recommend going to a certain section of their website where you will get a true picture of why your scores are behaving the way they are

This website will not only give you the most current status of your reports, but it will also show you your FICO Scores from all 3 bureaus.

This is the only place you should ever get your scores, because your FICO scores are the ones from where most lenders will base their acceptance of your credit application.

I find it interesting that the major bureaus also have their own version of scores that they try to sell to you and I. However none of the people you are trying to get to extend you a loan will even look at those scores! It is just another example of the greedy bureaus trying to squeeze more and more money from us.

Let's Wrap This Up...

So as you can see, there are many myths disguised as truths when it comes to credit and credit repair. There are also hidden secrets that the credit bureaus don't want you to know. I hope that since you are now armed with this knowledge, you won't fall victim to false information that exists out there.

Your Credit Score Insider, Mark J. Garcia

Ways You Can Overcome Bad Credit

Bad credit is something that can haunt you for years and years. Once you've gotten a low credit score, it can take years to rebuild it back up to par. In fact, it can take only a day to drag down your credit score and up to 10 years to repair the damage. Individuals who find themselves dealing with bad credit on a daily basis may feel like there is no hope when it comes to pulling themselves free from the debt. Although everyone feels this way one time or another, it is good to keep in mind that bad credit is something which can be repaired over time. The key to doing so is to come up with a plan to rid oneself of the troublesome debt and then stick to that plan until the bad credit has been repaired. When trying to overcome bad credit, there are a few tips which one might find come in handy along the way.

Consider Consolidation Alternatives

Debt consolidation is a technique which individuals with both good credit and bad credit use from time to time. It is a way for debtors to bundle all of the debt which they have into one nice, neat loan. One will find a number of advantages to doing so. First, the borrower will only have one interest rate to deal with as opposed to many. Secondly, those who consolidate all of their past debt will find that it is easier to take care of paying off the debt as they are better able to keep track of it. Lastly, the total amount of the monthly payment should be lower with consolidated debt than it is with individuals who do not consolidate and simply pay money on their individual loans each month.

Limit Credit Card Purchases and Loans

Another way to overcome bad credit is to pay for items with cash whenever it is possible to do so. It can often be very tempting to hand over that credit card to the cashier whenever purchases are being made. Many individuals pay for items via credit cards so that they have their available cash should it be necessary to use it down the road. This is an understandable feeling yet one which can get debtors into a bit of trouble in the long run. Every time one uses their credit card they are adding onto not only the principal debt of their credit card balance but the interest portion of the debt as well. This is what can really rack up the dollars and make the total credit card balance high.

As for loans, these too should be avoided unless extremely necessary with regard to individuals who have bad debt and are looking to overcome it. Loans will often carry high interest rates with them which can put an individual further into the debt abyss. If a loan is absolutely necessary, try to choose one with a favorable interest rate and reasonable loan terms. Just be sure to shop around for the best loan in the end and acquire loans sparingly.

New Car or Truck Loans and Your Credit Score

If you're in the market for a new car or truck, you are probably excited to choose the model, the paint job, and all of the accessories that come with the vehicle. However, your ability to finance the vehicle is just as important - if not more important - than all of the cool details and add-ons.

Most people opt to purchase a new car or truck through financing, which is the process of paying for a vehicle with loan installments. Financially, this is a much more manageable method of vehicle ownership than paying for a vehicle in one giant, multi-thousand dollar lump sum.

You can obtain a car or truck loan directly through your dealership of choice; through a bank, or through a private individual. Each method of payment comes with inherent risks and rewards (for example, loan rates through banks can be higher - but you might not have legal recourse, should there be an issue with a private or family loan). Before deciding upon a loan type, these risks and rewards should be weighed carefully.

For many Americans, though, the biggest risk factor when purchasing a new vehicle is whether or not they will actually be eligible for the loan in the first place. An individual's credit score determines his or her credit-worthiness - this number will tell the lending institution whether or not that person will reliably make car or truck payments. The lower your credit score, the lower your chances are of securing a loan at an affordable rate. In fact, some people with especially bad credit scores might find that they are having trouble securing a loan in the first place.

What is a credit score, and how does it affect your ability to secure a new car or truck loan?

Kenneth Elliot wrote in the Mar. 21, 2008 edition of the American Chronicle, "...[T]he FICO score remains a primary tool for lenders. It may not determine the final decision, but it definitely influences the 'first cut' when presented with a stack of applications to approve or disapprove."

FICO stands for the name of the consulting firm that developed standards for credit score calculation, the Fair Isaac Corporation. The FICO scoring rubric is the method most commonly used to determine an individual's credit-worthiness. In the United States, credit bureaus or credit reporters analyze an individual's financial past - debts, loans, utility bill payments, previous car loans or mortgages, and more - to determine whether he or she is a good lending risk. A FICO score ranges from 300 to 850. 850 is the highest credit score possible; individuals with high scores have little or no trouble securing loans. Conversely, credit scores near the lowest end of the FICO score range indicate individuals who are high-risk borrowers; these people usually have extreme difficulty managing their debts.

CNN Money reports that the average American carries over 9 thousand dollars in credit card debt. Late or missed credit card payments are one of the biggest factors that lower individual credit scores. Many people spend more money than they actually make, and become attracted to the allure of credit-based purchases -- which seem like easy money at first. Those individuals with high debt-to-income ratios might not be able to afford monthly credit card payments. After a few months of missed or late payments, an individual might find that his or her credit score is surprisingly low.

The FICO credit score is determined by a sum of factors. Each factor of a person's credit history is given a different weight in the final evaluation of his or her financial situation. When determining a credit score, the greatest weight is given to the individual's debt and bill payment histories (Is he or she timely or perpetually late?) and the total amount of debt he or she carries. Less important - but still contributing to the final credit score - are an individual's credit history length; the types of debts he or she carries, and how often he or she has applied for new credit. Individuals who make timely bill payments, who have established long credit histories, and who have demonstrated convincing abilities to manage debt often have the best credit scores.

Before you are eligible for a car or truck loan, you will be asked to supply your lending institution of choice - be it the car dealership, the bank, or a private individual - with some information about yourself. Information required might include complete contact information; a social security number; details about your mortgage or apartment lease, and employment records. The lending institution will turn your information over to one of three credit reporting agencies - Equifax, Experian, or TransUnion. The credit reporting agency uses the FICO algorithm to determine your credit score.

If your credit score is less than stellar, don't despair. You might still be able to finance a new vehicle. Remember: You always have two options when it comes to pitting a bad credit score against stringent car or truck loan terms. You can work to improve that score, or you can shop around for lenders who are willing to work with you. However, if your credit score is good, then you are a preferred borrower, and you will probably be able to get loans with attractive (meaning low) interest rates. Go out there and get that new car or truck loan!

Credit Clean Up - Time to Take Out the Garbage

The time has come to work on some credit clean up. First of all you need to find some ways that you can save money that you can put towards your debt to help when it comes to fixing the credit that is giving you so much grief.

You have to sit back take a deep hard breathe and a long hard look in the mirror and decide if you are willing to make the tough decisions or not.

Once you have decided you have to understand there is no turning back unless you want to look at yourself as a failure. Don't you think things are already bad enough without having to always return to the day you failed.

Are you a smoker? Well guess what its time to quit. in many places smokes are up around 10 bucks a pack. If you are a pack a day smoker that is $300 dollars a month you are absolutely throwing away. Not to mention all the future health care costs when the dumb habit catches up to you and all you have to look forward to is dyeing.

So you enjoy taking the wife out to supper. Well by the looks of things this has been happening way too often. The average nice meal costs about $100 dollars. I know you are saying that you only take her out once a week or so. guess what that's another $400 dollars a month towards your debt.

All you need to understand is that you can cook her a nice meal at home and end up with much better results.

Just in this small article I have showed you how you can save at least $700 dollars a month. if your wife is a smoker she needs to quit as well and now you are up to $1000 dollars a month savings. Can you imagine what $12000 can do towards paying down your debt.

This was so simple. There are a lot of other things that can be cut down on as well and I will get to that at a later date. At this point I really am trying not to send your body into shock but remember you looked in the mirror and made the commitment to work on credit clean up.

These things may seem tough now but once you start seeing the end results you will be looking for other ways to make things better as well.

When it comes to credit clean up it is all about the decisions you make.

Understanding Credit Report Score

Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.

Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.

You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don't want the lender to find a mistake that you aren't aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.

You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a "soft inquiry" and doesn't harm your credit score at all. Only "hard inquiries" from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.

Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.

The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.

The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.

Don't be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.

If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.

Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.

Equifax Credit

P.O. Box 740241

Atlanta, GA 30374

Equifax 800-685-1111

http://www.equifax.com

TransUnion

P.O. Box 1000

Chester, PA 19022

Trans Union 800-888-4213

http://www.transunion.com

Experian

P.O. Box 2002

Allen, TX 75013

Experian 800-682-7654

http://www.experian.com

You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.

If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.

Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.

Copyright © 2005 Credit Repair Facts.com All Rights Reserved.

What Is A Good Credit Score?

What is a good credit score is a question anyone who is shopping for a loan will most certainly ask themselves. Knowing what is a good credit score and actually shooting to obtain one can result in some serious financial savings over the lifetime of a loan, so it's a good idea to understand scores and how they impact finances. Not knowing can hurt you.

What is a good credit score will depend a lot on the type of loan involved. In general, however, the determination of what is a good credit score falls in line with the FICO rating. This rating is a number assigned to individuals in regard to their credit. What is a good credit score is often answered by nothing more than the FICO, which stands for Fair Isaac Company, rating. What is a good credit score is determined by this organization that conducts statistical research to measure the probabilities that people will actually repay their loans.

The FICO numbers answer the question of what is a good credit score in the form of a range that falls in between 300 and 800 generally. The higher the number, the better, generally. For example, someone with a score of 750 can readily answer the question of what is a good credit score by looking at the types of loan rate offers they obtain. Typically, these people will get very good offers due to their rating.

What is a good credit score is a very important question to ask prior to seeking a big loan. If you find out that the definition of what is a good credit score and your actual score differ greatly, it might be time to repair credit before moving forward.

The reason it's important to ask and understand what is a good credit score is vital to ensure you obtain the best possible interest rates on loans. If a score is too low, you will find yourself paying more, sometimes a lot more, over the lifetime of a loan. What is a good credit score will greatly impact the rates offered.

If you find a big disparity between your score and the technical answer to what is a good credit score, you can do some things to help fix the problem. Try to find out what your score is and check out your report. If you find things that are on the report that need to be paid off and fixed, do so.

What is a good credit score can greatly impact your financial future. Knowing what is a good credit score and shooting for one is something anyone who wants to buy a car, a house or even get a credit card should ask and explore.

Low Interest Auto Loans - Tips To Get Lowest Auto Loan Interest Rates

Unless you're paying cash, it is no wonder that you are searching for low interest auto loans. Getting the best auto loan rates just makes good financial sense.

However it takes a little work to find the lowest interest, simple work that most people are unwilling to do. Here are some tips to get the lowest auto loan interest rates.

1. Low Online Auto Loan Quotes

There are many banks and auto loan companies online that offer competing auto loan quotes. Because of this almost global competition online lenders are more likely to offer you the lowest interest auto loan quote in order to get your business.

Safe, secure and fast you can apply for a auto loan and get approval in minutes. Then you can compare and choose the one with the lowest interest rate. This allow you to shop for a car like a cash buyer, saving you even more.

2. Get Your Credit In Order

Your credit history will ultimately determine how low the interest rate will be on your auto loan. You should know where you stand, credit wise, before you apply for a loan not after. Get your credit report, it's easy, and by law you are entitled to one free credit report a year or every 12 months, get it. The three main credit reporting agencies are Equifax, Experian, and TransUnion.

3. Know Your FICO Score

This plays a big part in whether you will be approved and the interest rate of your auto loan. Your FICO scores are the credit calculations or scores many lenders use to determine your credit worthiness.

The FICO credit score range is widely accepted to be between 300 and 850, the higher the better. Raising low FICO scores not only can help you get the lowest interest auto loan but will also save you thousands on the total cost of the car.

4. Dealing With Bad Credit

It is not impossible to get a low interest auto loan with bad credit. In a perfect world you will have your bad credit erased, but as you know this can take time. Time which you may not have before you need a car.

In the case of a bad credit history a low interest car loan does not mean best low interest rate available, but lowest interest auto loan for people with bad credit.

You definitely want to have options in this case. Taking the time to research and compare auto loan quotes will pay off handsomely with a low rate auto loan with bad credit that will allow you to be able to afford that car.

In many cases low interest car loans are just a click away. If you can get your credit and FICO score high or high enough then it is just a matter of shopping for the best interest rate for a auto loan wisely. That is right, shop just like you will for a car, even if you have bad credit. Then compare a minimum of 3-4 auto loan quotes online or locally, this will enable you to find and secure the best low interest auto loans that you can afford.

Bad Credit Florida Mortgage Loans

Mortgage loans are the loans taken while purchasing a house or property. There are various kinds of mortgage loans namely, FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans.

Mortgage loan rates in Florida have seen a decreasing trend lately. The real estate market is booming with lower interest rates and presence of a wide range of loans offered competitively by several mortgage loan companies. Even people with bad credit records are being offered mortgage loans, albeit at a slightly higher interest rate. These kinds of loans are known as bad credit mortgage loans. They are also known as sub prime mortgages. Florida bad credit mortgage loans are for Florida citizens who have an unfavorable credit record. There are mortgage loan companies in Florida that specially offer mortgage loans for such kind of customers. They can help customers who have been denied loans from other companies as well. Now, even this has become a competitive market with several bad credit mortgage loan companies vying with each other for customers. Hence, even bad credit mortgage loans are also being offered at competitive rates. Even bad credit loans, if repaid on time, would help to improve the credit rating and clear the way for future loans at good rates. Moreover, bad credit loans can be secured or unsecured.

Bad credit mortgage loans also come with several options. The loans can be customized to suit the individual customer's preferences. Companies are also offering mortgage loans in the form of packages. A bad credit mortgage loan company also offers assistance in repairing the past credit history by providing refinance loans or consolidation loans for previous mortgages in order to improve the credit rating. Bad credit loans are also offered to clients who have declared bankruptcy, repossession, foreclosure or divorce.

There are some basic guidelines considered while approving a candidate for a bad credit mortgage loan. They are: a FICO score of 620 or lower, two (or more) 30 day delinquencies in the past 12 months, one 60 day delinquency in the past 24 months, a foreclosure or charge-off in the past 24 months, any bankruptcy in the last 60 months, qualifying debt-to-income ratios of 50% or higher and limited ability to cover family living expenses each month.

There are several bad credit mortgage loan companies in Florida. Information about these companies can be found through websites on the Internet. Since there are so many companies, look for the company's past history and its specialization and compare it with those of the other companies. Provide good documentation relating to past credit and income statement. A letter from the employer ensuring good conduct and job security would also be useful. Other things considered are the collateral (loan amount relative to the home value), other debts and cash reserves.

3 in 1 Credit Reports With FICO Score - Facts About Your FICO Score From Your 3 in 1 Credit Report

Your 3 in 1 credit reports with FICO score is a summary of your credit background  from the three main credit-reporting agencies; namely: Experian, Equifax and TransUnion. They serve as measures to evaluate your credit worthiness and your capacity to meet financial obligations on time.

This report highlights your paying behavior by summarizing your credit history, years of credit background, number of loans applied, number of loans approved or rejected, and your outstanding balances among others. This document greatly helps financial institutions in evaluating your current and future loan applications with regards to approval or rejection of your application; this will further help them decide on the best terms well suited to your financial behavior.

Your credit report with FICO score contains the most commonly used scoring system developed by First Isaac Corporation which uses mathematical formula in deriving your credit evaluation. Although, the three main reporting agencies use other formulas like the Emperica and the Beacon-score; the FICO score is the one most popularly used.

What you should know about your 3 in 1 credit report with FICO score is that it uses numerous variables to come up with your real score such as the ratio of your present debt versus your available remaining balances, your current debt, length of credit-record, punctuality of payment, and still much more depending on the evaluating company's standards of evaluation.

Your First Isaac Corporation score usually ranges from 300 to 850; and a 720 mark is already considered as good risk; while high-risk loan applicants are those whose grade is below 600. In some instances when your mark is below 600, other companies may still reconsider your loan applications but it should be accompanied with co-makers to further lower their risk.

It is very important to regularly get your credit-report every year because sometimes the information contained in your personal credit document may contain some errors which could greatly affect your mark; thus affecting any other aspects of your life where the credit report is based on. By identifying errors early on, you will be able to prevent damage to your financial reputation which is very crucial in today's life.

Hence, remember to always subscribe to your annual 3 in 1 credit report with FICO score because this will greatly help you track your credit performance; and improve your grade for whatever purposes it may serve you.

Understanding And Improving Your Credit Score

Kelly is a middle class blue collar Californian, who has made a conscious effort to keep a positive credit standing with all his creditors, ranging from his mortgage lender to his credit card company.He has prided himself in making prompt payments to all his creditors and not incurred a single late payment in his entire life. However, much to his horror he got turned down for a $300 limit Sears store card, the reason being a mere 589 Fico Score.

Credit scores also known as Fico Scores range between 300 and 850, with scores over 700 being considered respectable scores, score below 660 would find it difficult to get approved for even small credit cards , similar to the one Kelly applied for. Keep in mind that 58% of Americans have a Fico Score exceeding 700, 27% fall between 600 and 700, with the remaining 15% scoring below 600 *.

Now what caused Kelly to have a mediocre credit score despite having a flawless credit history?In order to answer this question we will look into how Fico Scores are calculated. Below are five factors that are used to derive your Fico Score:

Payment History - 35% Credit Card Capacity (Amount You Owe, compared to credit limit) - 30% Length of Credit History - 15% Types of Credit - 10% New Credit - 10%

Since 30% of your credit score is calculated by factoring in the percentage of your available credit being utilized, it is possible to have a poor credit rating despite having a good payment history by keeping your credit card balances close to maximum limits, which is what happened in Kelly's case.

Now let's study these five categories closely and figure out what you need to do to optimize your credit score.

Payment History-35%

This is the most self-explanatory category, simply pay your bills on time and do not be more than 30 days late on any bill, as creditors start reporting late payments on your credit at that time.

If you do foreseeing yourself being late on a bill , you are better off notifying the creditor in advance as some installment loans might allow a special 30 day forbearance without any adverse affect on your credit.

A recent late payment affects your credit more adversely than an older one, so do not be surprised to see a drop of 60 odd points on a new late you incur if you currently have a flawless credit history.

Credit Card Capacity-30%

It is not how much money you owe, but what percentage of your available credit limit you are using up. You are going to affect your score more adversely if your combined credit card limits are $500 and you are using $400 of it, as compared to using up $50,000 of $100,000 available credit.

Therefore you should carry balances on not more than a couple of credit cards and preferably keep their balances at 10% utilization of the credit limits of those accounts. Doing so can result in an increase of over 60 points.

Length of Credit History-15%

The older your credit history is the higher your credit gets propelled by this factor. You can expect someone with a 20 year old credit profile to have a relatively higher Fico Score than compared to someone that has had a credit profile for 10 years, considering all other factors are similar.

Types of Credit - 10%

This factor pertains to the assortment of the credit accounts found on your credit profile. In order to satisfy this category, one is expected to have open and active at lease one of each of the different credit accounts: a) Mortgage Account b) Installment Account c) Revolving/credit card account.

Of the three different types of accounts above, not having an open credit card account will affect your credit the most. So for those who do not have an open credit card, simply by acquiring one will result in a Fico Score boost of up to 30 points.

New Credit - 10%

Your score is also calculated by factoring in the average length of time accounts have been open on your credit report. Opening a new account contributes negatively to this factor, also it is not wise to close old accounts as they will lower this average. Therefore you will notice as accounts become more seasoned your credit score will propel provided no new accounts have been opened.

Also factored into this category are recent requests for your credit reports made by prospective lenders and the number of recently opened accounts you have. It is advisable to keep both at a bare minimum.

Now that you are able to better comprehend the computation of your credit score, let's do a recap of what steps you can take to ensure the optimal Fico Score.

Ensure credit bureau data is accurate and dispute legitimate errors.
Pay down the credit cards first that are near their limits (assuming interest rates are close to the same).
Pay down total revolving balances, but do not close these accounts. (i.e. keep balances low and limits high).
Move revolving balances to installment debt; but again, do not close the revolving accounts.
Minimize new accounts, do not open any credit accounts unless necessary or if you are looking to diversify your mix of credit accounts.
If you are transferring balances due to an offer from a new credit card company, a better strategy than getting a new credit card is to ask your current credit card lenders if they have any existing offers, rather than opening a new credit card.
If you have closed some revolving accounts recently, a better strategy than opening up new accounts would be to call the lenders where he or she closed the account and see if they can re-open the same accounts and are able to keep the original open date.

Clear Credit History - How to Raise Your Credit Score With More Than 150 Points

Do you want to clear credit history? Are you about to make a major house or luxury car purchase but fear being turned down by creditors? Do you worry that thousands of dollars in interest hinge on 10, 5 and even 1 point in your credit score? Are you being harassed by non-stop collection agency calls? No matter what your case is, a clear credit history will lift a heavy load off you shoulders and will open many doors in front of you. There is no bad debt fairy dust that will solve your credit problems overnight. However, there are a lot of things you can do that will boost your credit in no time.

1 Your most powerful weapon-credit knowledge.

Credit consolidation agencies will charge you an arm and a leg for things you can do yourself if you had the CREDIT KNOWLEDGE. How is your FICO score calculated?What's the difference between installment credit and revolving credit? Which matters more to creditors? Is credit time sensitive? Why does paying off an old collection can actually hurt your credit score? How to make your credit history longer? How to delete collections, late payments, liens and judgments from your report? What is the perfect balance/limit ratio on your credit cards? How to piggyback someone else's credit?The more you know about the inner workings of the credit system, the better your chances to raise you score fast.

2 Learn to think outside the box.

According to the mainstream credit advisers fixing credit takes time, determination, financial effort, careful budget planning and patience. This formula has proven to increase credit score over time. However, most of us want that fantastic house, brand new car, personal or business loan NOW. Time is a luxury we can't afford. And this is where credit tricks and little known secrets come into play. Why try to rebuild your credit gradually when you can focus on the negative items in your report that have the biggest impact om your score? Why pay everything in full when you can negotiate settlement for a fraction of the debt? Why getting delinquent accounts "deleted" from your report is much more beneficial that simply paying them off? Learn more about the loopholes in the system and find the shortcuts to a better credit score

3 Leverage

You do have leverage with your creditors, collection agencies and credit bureaus. For example you can dispute items on your credit report and the credit bureaus are required by law to conduct investigation in a timely manner. You can negotiate "settlement" with collection agencies that are just a fraction of the amount you owe. You can also ask creditors to delete a one time late payment due to unusual circumstances. Keep in mind that you do have leverage and make the most of it.

There are many ways to clear credit history. Just like with everything else in life there is the hard way and the smart way to do it. Once you start thinking outside the box, fixing credit should be fairly easy.

Ways to Get Approved For Credit When You Have a Low FICO Score

If you are someone who has bad credit, it wont' inevitably stop you from obtaining approval, but it can cause it and other, large purchases to become much more difficult than it would be if you had good credit. Here are some ways to get approved despite your bad financial history.

Apply for credit cards at retail and discount chain stores. Many times, stores like these are more willing to give you a chance. If the store approves your application, make small purchases that you can pay off and make at least the minimum payment each month and make the payments on time or early if you can. (If you are able to pay more than the minimum payment or even the entire balance at once, you won't have as much in interest charges and it will improve your credit score.)

Apply for a line at your bank, savings institution or credit union. If they already know you as a reliable customer, they may be more willing to give credit.

You can try for a secured card if nothing else works. You will have to open and keep a savings account as security for the line of credit they give you. Part of the line they give you will be a percentage of the deposit you make to the card.

If you are responsible and are certain you can afford to pay a credit card balance at this time, you can ask a friend or family member to co-sign with you. Remember that the other person's financial history is considered in the application as well, so choose someone who has good credit. Having a co-signer with bad financial history will do you no good. If you can't pay back the balance you charge on the card, this co-signer will legally have to, and it will show up as a mark against their credit rating and it could also damage your relationship with them. Consider that before choosing this option.