Archive for July, 2008
Saturday, July 12th, 2008
 Everyone is getting concerned about our banking system. I believe it is with good reason. If you are watching the news lately, banks are going out of business all over the map. This is due to the stocks of some of these banks are causing a reduction in the amount of assets they have to fund loans. If you have noticed lately Freddie and Fannie have both lost billions in liquid cash since last December. Most of this liquidity problem is because investors are dumping their stocks with these particular funds.
Freddie and Fannie both are backed by our government. I assure you that the government will not allow these investment bankers to go under. The government if need be will bail them out. Obviously more intense credit score restrictions are around the corner.
The Bush administration recently said that a government take over is not needed. Law makers aim to pass a bill that will keep these companies afloat. So stay tuned to this.
Fannie Mae and Freddie Mac both own or guarantee about half of the $12 Trillion mortgage loans in the United States. If the government steps in the obvious is around the corner. Higher interest rates to curb the appetite of inflation.
It’s apparent that the mortgage industry will be tightening up even more. I personally believe the largest insurer of loans will be the savior during this epic credit crunch. Like I have said before, the Federal Housing Authority (FHA) is and will be the savior for banks that are still willing to provide mortgage paper. FHA was the savior right after the “Great Depression” and will be the savior for the liquidity problem we are currently having. I would not be surprised if our government came out with some new loan products that are aggressive enough to stimulate home ownership. We shall see.
On a positive note, if you are in the market to buy right now, there are some incredible deals on homes all over the U.S.
Just remember to manage your free credit score reports. This is one of those times where you might take a peek at your credit to make sure matters are up to snuff. If you are in the market to buy lenders are tougher on those fico scores. So stay on top of it.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
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Thursday, July 10th, 2008
 There is no doubt the Mortgage Industry has been suffering for the last 2 years. There has been a ton of banks go out of business and people all over the United States loose their jobs. With all the foreclosures and the downturn in the quality of buyers it has been extremely tough to get some home buyers financed. Luckily FHA is our current market, and allows people all over the U.S. to get financed even though their credit scores may be low.
According to, Bernard Markstein the Senior Economist for the “National Home Builders Association the “First Time Home Buyers” market will be taken off in 2009. He is claiming that the increase in homes sales for this market should increase around 700,000 units. This is great news, because the first time home buyers market drives the real estate market. When first time buyers are active this allows people who need bigger homes to upgrade. In return the new home industry starts building again. This is exactly what our economy needs, because this will create more jobs.
So the hope is the First Time Home Buyers will shrink the overwhelming market of homes for sale currently around the U.S. This will allow other families to move on with the purchase of there new homes.
Yes, getting a loan will be a little tougher but with good credit education it’s really not that hard to get a mortgage loan. During the past years it was just too easy to get a loan, but now the lending market is where it needs to be. We definitely don’t want to go through this process of banks going out of business.
My best advice if you are getting ready to make a purchase soon, is to get a copy of your free credit score report and see where you stand. Your credit score is now more important than ever. In order to get good interest rates most banks want to see at least a 620 plus fico score. Once you pull your credit and find you need some credit repair, you can repair you credit for free. Use the web; it can save you time and money.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
Posted in fico score, free credit score reports | 1 Comment »
Wednesday, July 9th, 2008
Q:
Hi Mike,
I was wondering what the big deal is about closing credit cards. I have 6 credit cards currently. I only use a couple of the cards. The other 4 credit cards I don’t use charge yearly fees to have there credit cards active. So I would like to close them but I don’t want my credit score getting lowered. I currently have excellent credit and don’t want to jeopardize that. What do you guys recommend?
Tina
A:
Hi Tina,
This is kind of tricky one. Everyone in the credit worlds recommends not closing good credit, especially if you are about to make a purchase. This question could have two answers to it. If you are getting ready to make a purchase, then the answer would be no. Wait until after the purchase and then close the credit cards. Yes, your credit score will drop temporarily but with a couple of credit cards reporting on your credit report your scores will be fine over a couple of months. The credit score drop would only be temporary. If you are not about to make a purchase on credit, then I would close them or ask them to stop there yearly fees first.
CreditScoreQuick.com
Posted in free credit check, free credit score reports | Comments Off
Wednesday, July 9th, 2008
Q:
Hello Mike,
I have a son that is 18, and I would like to help him get some credit established. I have read that authorized user accounts don’t help your credit score anymore. Is this true, if so what do you suggest I do to help my son get some credit established? He will be attending college this fall as well, so I know he might be in need of some credit cards for emergencies.
Lina Carter
A:
Hi Linda,
This is a good question. Because of the changes due to fraud in the credit repair industry, the authorized user account credit score process affects those that are really trying to help out a family member. I personally don’t agree with the change, but because someone else was breaking the law, it messed it for those that were not. The quickest way for your son to establish good credit score report is to apply for some secured credit cards. If he is going to be a student he can apply for student credit cards as well. I would recommend getting a couple of these cards, in the works as soon as possible. The secured credit cards depending on his credit will require between $200 and $300 in a bank with the credit card company. Once you son has showed around 6 months activity with the credit bureaus, he should get some credit scores at that time.
Mike Clover
CreditScoreQuick.com
Posted in credit, free credit report, free credit score reports | Comments Off
Wednesday, July 9th, 2008
In this current market and probably for future lending markets lenders will be looking at your credit report very closely . I figured I would provide some quick tips to make no only your credit report and credit scores look better, but you’re over all risk to a lender. In this current market even if you have good credit you could get denied for a loan.
Keeping your debt low
In the past you could have really high income to debt ratio’s and still get approved for loans. All of us in the lending market thought this was crazy, but it was getting done. In a nutshell this amounted to families getting homes that they could not really afford. In this market you better have low credit card debt or debt period. Because the underwritten engines and requirements for general debt is quite a bit lower than it was in years past. So the bottom line is to keep your debt ratios 41% or less. Here is how you calculate this.
Take your gross income and divide it by your total monthly obligations. The total monthly obligations would be only debt that reports to the credit bureaus. For example:
• Credit cards
• Auto loans
• Mortgage loans
• Installment loans
• Student loans
Lenders don’t look at your utility payments or any other obligations that does not report to the 3 credit bureaus typically. So make sure you only count your obligations of credit only.
Save your money
When getting a loan in this current market, lenders like to see that you have the ability to save. When you have savings it makes your risk lower to the bank. A good goal would be to save a minimum of 6 months mortgage payment in the bank. Lenders also like to see stocks and 401k. This is also considered saving as well. The great thing about having savings is if an emergency comes up you have the money to pay your bills so it does not affect your credit report.
Have a mix of credit on credit report
When a creditor looks at your credit report they like to see some type of activity along with a mix of credit. Examples of a mix of credit would be a couple credit cards, installment loans, auto loans, etc…….. The Fair Isaac Score model takes into account the mix of credit yiou have to determine your credit score. So if you are a cash only buyer, charge a little on your credit and pay it off at the end of the month. Creditors have to see what you are doing, and that is why they pull your credit report. So don’t be afraid of credit, at the same time be responsible with it.
CreditScoreQuick.com
Posted in credit, free credit report, free credit score reports | 1 Comment »
Wednesday, July 9th, 2008
Q:
Hello Mike,
I have a question about bankruptcies. I have a bankruptcy on my credit reports, it is a Chapter 13. I have been told different things about how long it will be on my credit report. I have been told it will be on there for 7 years and I have been told it will be on there for 11 years. Which is it?
Lorena Ochoa
A:
Hi Lorena,
A chapter 13 bankruptcy stays on your credit report for 7 years from file date. There are two common bankruptcies filed currently. The two are Chapter 7 and Chapter 13.Chapter 7 bankruptcy will be on your credit report for 10 years from file date. You will need to watch your credit report closely, because its common that the bureaus don’t remove bankruptcies like they should once the expired date has hit.
Mike Clover
CreditScoreQuick.com
Posted in bankruptcy, free credit score reports | Comments Off
Tuesday, July 8th, 2008
Q:
Hi Mike,
I have some questions and concerns about identity theft. This problem seems to be the biggest crime in America. I was curious what you might recommend in hopefully preventing this from happening to me and my family. Thanks for any advice.
Susie Landry
A:
Hello Susie,
Thanks for the question. Identity Theft is getting out of control in our country. It’s affecting 50 million Americans a year. That’s amazing when there is only 302 million in the United States currently. This problem is on epidemic proportions. There are some great preventative measures. The first step is to check your free credit report as often as you can. You should also set up credit monitoring to get alerted of any critical changes. At our site we provide two of the best two services for identity theft protection, under out identity theft tab.
Mike Clover
CreditScoreQuick.com
Posted in free credit report, free credit score reports | Comments Off
Monday, July 7th, 2008
Q:
Hello,
I have some questions about which credit report to get. I have been looking all over the web, and noticed you offer a variety of credit reports. I need advice on which one to get. I would prefer to have all 3 of my credit scores. I would also like to make sure it’s a 3-1 credit report as well with monitoring.
Juan Sanchez
A:
Hi Juan,
I would recommend the Privacy Matters credit report on the front of the website. This offer comes with all a credit report from each credit bureau along with all 3 credit scores as well. You can also sign up for credit report monitoring with this service. This is a very popular credit report on the web.
Mike Clover
CreditScorequick.com
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
Posted in free credit reports, free credit score reports | Comments Off
Monday, July 7th, 2008
Q:
Hi Mike,
I have recently decided to divorce my husband. We have lots of debt together on our credit report. I have read some of you great articles about your credit during a divorce. I want to make sure that my credit scores don’t suffer because of this divorce. We currently have about 3 credit cards that are joint accounts. We also have a house we both or on the note as well. I am really concerned that he might stop paying on some of the obligations which will affect my good credit rating. What do you recommend?
Jenni Braco
A:
Hi Jenni,
I am sorry to hear about the divorce. The first thing you need to do is make sure the divorce attorney forces the husband to get all debts he is reasonable for out of your name. If he is late on an obligation I can assure you it will affect your good credit score report. This is only applies to joint accounts that he is responsible for. Even though the divorce decree might state he is responsible for the debt, if he is late on an account that has your social attached to it, your good credit will suffer. This is a common problem out there; also I would recommend selling the house if it’s awarded to him, or suggest that he refinance the house. Bottom line you don’t want any obligations in your name that he is responsible for. If you were responsible for paying the bills and feel he might be late on something, I would foot the payments until everything is out of your name that he is responsible for.
Mike Clover
CreditScoreQuick.com
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
Posted in credit report, divorce, free credit check, free credit reports | 1 Comment »
Saturday, July 5th, 2008
 The hard way always seems to be the better way. I have been told there are two ways to do things in life, “The hard way and the easy way.” I think most want to do things the hard way. When it comes to buying a house for the first time, there is process to follow so your buying experience is not done the hard way. The easy way may not seem the best way in the eyes of a buyer, but I assure you it’s the correct process. I have seen more problems with mortgage loans following apart because someone led the cart before the horse. Here is the easy way to buy a home.
Get approved first
The first step in the home buying process is to get your finances in order first. Get your credit reports pulled and your income verified to see where you stand. If you don’t do this first I guarantee that you will have problems. Most want to go and look at homes first and then apply for a mortgage. This is why all the nightmares you hear about happen in the lending industry.
Meet with reputable lender
After you have been approved for a mortgage meet with the lender to review what type of loan they have approved you for. You need to understand the loan and your estimated payments with your credit. It is important that you understand all aspects of your loan and monthly payments. Mortgage payment can be an issue as well, because you thought you payment might be lower. Some of the on-line calculators don’t estimate your entire payment, which causes confusion in lending. The calculators on-line usually estimate your principal and interest payment only, which does not include your taxes, MIP, and homes owners insurance with the payment. So make sure your review all of this with a reputable lender.
Meet with a seasoned Realtor
After you have met with a lender and have been approved, the next step is to get a Realtor to find homes in your price range. I would recommend that you find a full-time Realtor, not one that is part time. The reason is if there is a problem during the day, you will have issues getting a hold of this Realtor because they are at work. There are a lot of part-time realtors out there, and as far as I am concerned should not be allowed to have their license. Real Estate is a full time career and requires someone that has experience. If you are working with a Realtor that does not have experience you could have issues as well.
If this process is followed and the people you are working with are experienced, then your home buying process should be a good one. Buying a home is a big step in life and needs to be handled by experienced real estate professionals.
CreditScoreQuick.com
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Disclaimer: This information has been compiled and provided by CreditScoreQuick.com as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.
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Everyone is getting concerned about our banking system. I believe it is with good reason. If you are watching the news lately, banks are going out of business all over the map. This is due to the stocks of some of these banks are causing a reduction in the amount of assets they have to fund loans. If you have noticed lately Freddie and Fannie have both lost billions in liquid cash since last December. Most of this liquidity problem is because investors are dumping their stocks with these particular funds.
