Archive for the ‘free credit score reports’ Category
Saturday, July 19th, 2008
 As new graduates embark into the world of independent living, most are ill prepared to deal with their own finances. It’s a shame that “Money Handling” isn’t a required course in all High Schools and Colleges, because starting off on the right foot can lead to a much more pleasant life than starting off wrong.
When you have a good credit score, lenders see you as a low-risk person. As a result, they’ll offer you lower interest rates, lower minimum payments, less paperwork, and more borrowing options. Poor scores have the opposite effect.
In fact, with a bad credit score you could be denied jobs, car loans, mortgage loans, insurance, or even rental housing. If you can get insurance, with a poor credit score you’re apt to pay rates that run more than twice as high as they would be if your score was good. And if you can get loans, you’ll pay 4 or 5 times as much interest as you would with a good score.
Creating a good financial reputation (credit score) isn’t difficult, but it does require a little discipline. And it does take time, so start early. The longer your record of responsible money management, the easier your life will be.
This means saying “no” to most of the credit card offers that come your way, and working hard never to use over 50% of the credit available to you. It also means paying each of those bills by the due date, and paying a bit more than the minimum payment. Strive to keep your non-mortgage debt down to 15% of your income, even when it means delaying the purchase of a new toy or a classy addition to your wardrobe.
One good way to make sure you pay your bills on time every time is to create a chart that shows each bill and the date it’s due. One caution: don’t assume that the due dates will be the same each month. Read each bill when it comes in and adjust the payment date accordingly.
Budget your payments and adjust your discretionary spending accordingly – so that you’re never in a position to make a late payment. Even if that means skipping Saturday night out.
Next, begin to build your net worth. Check in to automatic savings, deducted from your paycheck before you even see it. Small amounts add up, and they will raise your credit score. In fact, having both a checking and a savings account will earn you a score 4 times higher in that category than having a checking account alone.
If automatic savings aren’t available, discipline yourself to make that deposit from each and every check.
Lastly, be sure to check your credit score often – so if there’s a mistake you can get it corrected quickly!
Posted in credit cards, free credit score reports | 1 Comment »
Saturday, July 19th, 2008
Q:
Hi Mike,
I have some questions about leases with apartment complexes. My husband and I are in a lease currently that is up in 5 months. We just ran across an opportunity on a house that we cannot let go. The apartment complex will not let us out of our lease; they said we would have to pay almost $7,000 in fees to break the lease. We have excellent credit and fill like this is absurd. I told them they could easily rent it out again. My question is if I let the lease go and not pay the money will it go on our credit report. I don’t want anything to affect our good credit history. My husband and I have credit scores in the 700’s according the lender that has approved us. Any suggesting would be greatly appreciated.
Tanya Riddle
A:
Hi Tanya,
I personally think apartment complexes can be a thorn in your side. But on the flip side they need some kind of commitment from people as well. I do though completely understand your situation. If your break your lease, two things will happen. First the rest of the lease plus fees will be reported on your credit report. Also when you start the loan process the underwriter will need to verify good rental history, usually for 12 months. The apartment complex will state that you are breaking a lease. So my advice would be either pay it off, or finish out your lease. Also in the long run you will pay for it, and so will your good credit scores.
CreditScoreQuick.com
CreditScoreQuick.com
Posted in credit report, free credit score reports | Comments Off
Saturday, July 19th, 2008
Q:
Hi mike,
I have a question about why I only have one credit score. I recently pulled a copy of my free credit score report through your site, and only got one score back from Equifax. I thought you got three credit scores. I don’t have any credit cards and any outstanding loans currently. I do have past history but it has been years. I decided a while back to pay cash for everything. I thought you would have credit scores from past history.
Angela Pickerall
A:
Hi Angela,
We see this quite often. There could be several situations going on here. Without actually seeing your credit report I will gives some scenarios. The first problem I see is you don’t have any new or existing credit reporting. So the current credit scoring models don’t have anything to score you on. The current FICO scoring model likes to see the following to calculate your credit scores with each bureau.
• Payment History
• Amounts owed
• Length of credit history
• New credit
• Types of credit used
All of this goes into factoring your credit score with each credit bureau. Its looks like you are lacking all of this, and this is why you don’t have 3 credit scores. Yes one might be scoring you because a creditor is reporting to that bureau only. This is the second scenario. Some creditors only have contracts with certain credit bureaus. They may not have contracts to report information with all 3.
CreditScoreQuick.com
Posted in fico score, free credit score reports | Comments Off
Saturday, July 19th, 2008
You paid for your credit report on-line with your credit scores. You print it out, and the question is now what? Do you even know how to read or decipher what is on there? You might be asking yourself what is a good credit score, and do you have good enough credit to get the best terms and rates on any loan.
Every lender has its own criteria for lending someone money. Every insurance company, employer, credit card companies, and bank sets its own credit report and credit score standard. So what is a considered a good credit score by most standards.
Fair Isaac’s credit score model is like a standard amongst other credit score models. What does this mean? This means that there are other credit score models used to determine your risk, but most of them designed there credit scoring model after the FICO score model. FICO scores range between 300 (very bad) to 850 (very good).
About three years ago all the credit bureaus got together and came up with a credit scoring model called “Vantage Score.” These credit scores range between 501 to 990. But when it comes to credit scores the most widely used is the FICO score model.
As you can see there is a wide range of credit scores. You might be asking yourself what is considered good still. Well a good rule of thumb is to have at least a 680 credit score. There are 3 credit bureaus and each report there own credit score. Equifax, TransUnion and Experian are the three bureaus. Lets assume your Equifax credit score is 720, Experian is 660 and TransUnion is 680, your middle credit score is what most banks use. So you credit score used is 680. Usually with this type of credit score you can get approved for just about any loan. That does not mean you will get the best rates and terms though. If you are looking to get the best rate and terms you will need at least a 720 plus middle FICO score.
All loans are based on risk, and the credit scoring process is a mathematical solution to determine whether you will pay back the creditor or not. The lower your middle credit score the higher risk you are to all creditors concerned.
Remember some creditors have there own internal credit scoring process. So your credit score will not be the same with everyone. My advice would be to always pay your bills on time and keep your debt low. These are the two biggest factors in the credit scoring process.
CreditScoreQuick.com
Posted in creditworthiness, fico score, free credit score reports | Comments Off
Friday, July 18th, 2008
With all the hustle and bustle, what else could we possibly worry about now? Life is hectic enough without having to worry about someone accessing your credit information and stealing your identity. I remember during the 80’ you did not hear about all of this. The only worry we had was Russia sending over a nuclear bomb. With the evolution of how information travels, and a paradigm shift in theft, we have to stay on top of our credit reports. Thank goodness technology allows us to access our personal information fairly quickly.
Until recently if you wanted a copy of your credit report, it took an act of congress to get one. Plus the credit report you got was almost impossible to read. Luckily with the new Fair Credit Reporting Act (FRCA) you are entitled to a free credit report once a year. This opened the gates of other credit report offers which will provide you with your credit scores. The free credit report you get once a year gives you a 3-1 credit report with no credit scores.
With the internet presence and the ease to access personal information you cannot afford to check your credit report only once a year. Did you know that identity theft could be happening to you right now? If you waited a year to access your free credit score report 12 months from now your good name would be ruined. So yes with the internet technology two things have happened, it opened up avenues for identity thieves. The internet also opened the ability to access your personal information securely and fast over the web.
The internet is safe as long as the site you are visiting is secure. Believe it or not most identity theft does not take place over the web. It takes place in places like your trash and at companies that have your personal information on file.
So identity theft has added extra stress to our lives, but if you stay on top of your credit report it’s definitely a piece of mind.
CreditScoreQuick.com
Posted in free credit score reports | 2 Comments »
Friday, July 18th, 2008
 Wrong information can be just as damaging as no information, and there’s a whole host of it surrounding the lending industry. Much of it involves credit scores.
Sadly, because many Mortgage lenders and bank representatives never take the time to actually learn about credit scoring, much of the bad information comes directly from sources you should be able to trust.
For instance, some will tell you that you should close open accounts. No! You should not. You definitely shouldn’t open any new accounts or even apply for new accounts when you’re trying to build your credit score, but if you close accounts you now have, you could actually lower your score.
This is because your debt load is measured against the credit you have available to you. When you close an account, that credit is not available, so your debt ratio goes up, making your account balances seem higher.
For instance, if you have 4 credit cards, each with a limit of $5,000, and you have balances of $3,000 and $4,500 on 2 of the cards, and zero balance on the other two, you are using only $7,500 of $20,000 available, or 37.5%. If you close the two unused accounts, you’re now using $7,500 of $10,000 – or 75% of your available credit.
The truth: If you can pay down your debt, definitely do it. But once the accounts are paid, leave them open.
You’ve also heard that inquiries on your credit lower your score. This is true if the inquiries come from specific retailers, but not if you check your own score. Mass pre-approval inquiries are also ignored when your credit is calculated. Retailer inquiries lower your score by only about 5 points, so don’t be careless, but don’t panic if there’s been an inquiry.
A good rule of thumb when you’re working on getting a Mortgage loan is to not shop for cars, furniture, appliances, etc. until your loan closes. The credit inquiries could damage your score just enough to hurt you – and even paying cash isn’t a good idea. Keep your bank balances as high as possible until there’s no chance that the lender will make a last minute check.
Next is the use of credit counseling. At one time this did affect your score, but a study conducted 3 years ago showed that people using credit counseling did not default on their debts any more than other people. The most current FICO formula ignores credit counseling all together.
BUT – credit counseling can still be risky. Sometimes counseling agencies make payments late or pay lesser amounts – and these mistakes will affect your score.
CreditScoreQuick.com
Posted in fico score, free credit score reports | Comments Off
Friday, July 18th, 2008
 No credit can sometimes be just as damaging to you as “no-good” credit.
It sounds crazy, and many who have always responsibly paid cash for everything become more than a little angry when told they can’t get a mortgage loan because they have no credit. At least folks who have had bad credit know the reason why they’re having trouble.
The fact is, if you have no credit, lenders have no way to determine if you’re a responsible bill-payer. You have no reputation – no history to offer to show that you do indeed pay your accounts on time. That makes them nervous.
If you find yourself in the position of needing to either build or re-build credit, you’ve probably been told that you must first establish a record of paying debts on time – by getting a line of credit somewhere.
Where? Who is going to give you that line of credit? A company that offers a secured line of credit, that’s who.
In this instance, you offer some kind of collateral or deposit for the amount of credit desired. This gives the lender security in case of default. It could be a deposit into a savings account, a certificate of deposit, or a money market account.
Secured credit cards are a very effective way to build or re-build credit, but there are two things you must consider.
First, use the line of credit, but pay it off on time each month. Don’t use it to go further in debt. The goal here is to show a history of responsible money management. It might be tempting when money is tight to just let the lender take your security – but that will only serve to damage your credit score.
Second, look before you leap. Different lenders have different policies, so investigate each one you’re considering. Read the fine print and ask questions. Make sure you understand the interest rate that will be charged if you don’t pay the balance in full each month. Learn their grace periods, their penalties for late payments, and any other fees that may be associated with your account.
After 6 months to a year of responsible use, many lenders will increase your limit, which will further improve your credit score. When you continue to pay off the balance each month your credit repot will show that you have more credit available than you are using, and you will be seen as a responsible money manager.
Author: Marte Cliff
CreditScoreQuick.com
Posted in free credit score reports | Comments Off
Thursday, July 17th, 2008
 Lately credit repair companies around the country are getting hammered by the FTC and the Better Business Bureau. These companies are claiming that they can increase your credit score and remove collections from your credit report. The funny thing is they charge you up front before any services are rendered. The FTC states that credit repair companies are not suppose to collect money from you until the services have been rendered. This is not what is going on, along with the promises they make to remove stuff that you owe. So the question is what exactly does a credit repair company do? In this article I will discuss the facts and get through all the smoking mirrors that credit repair companies sell.
Can you remove collections?
The answer is you can only remove collections that are not yours by proof and collections that have been on your credit report for more than 7 years. No one can remove a collection on your credit report that you owe, unless it’s been over 7 years. Some collections report longer, but the standard is 7 years.
Can credit repair companies increase your credit score?
Credit repair companies can help you increase your credit score by requesting you do get a secured credit card. Most credit repair companies will require you to do this if you don’t have any good credit reporting. It was not the credit repair company that increased your credit score; it was the new secured credit card that starting reporting on your credit.
Can credit repair companies remove bankruptcies, judgments, and tax liens?
Credit repair companies cannot remove any of this, unless the bankruptcy has expired. Depending on what type of bankruptcy it was, it could be on your credit report up to 10 years. Judgments will stay on your credit report for 7 years from date of entry. Tax liens can remain on your credit report until paid.
By disputing collections you owe, does it remove them?
If you dispute a collection you owe, you are wasting your time. You are to only dispute inaccuracies on your credit report, disputing items you owe does nothing for you.
So the question is what exactly does credit repair companies do? I believe most of them are in business to just take your money. Some of these companies do provide good credit repair education, but if they tell you they can remove stuff you owe, they are lying to you. I have yet to meet someone that has gone to a so called credit repair company and have had success in getting there credit repaired. If you have credit issues on your credit report, you can repair your credit for free. The how to repair your own credit involves money management and the establishment of new credit if you have none. How to do this for free is on the web. You can go to the FTC and also our site blog as well.
CreditScoreQuick.com
Posted in credit education, credit repair agency, free credit score reports | 1 Comment »
Thursday, July 17th, 2008
Q:
Is there a difference with respect to a credit score between a house going into foreclosure and a house actually being foreclosed upon? The situation is this. House goes into default and is scheduled for foreclosure sale. Is one’s credit going to be damaged worse if the foreclosure sale occurs? Will one’s credit be better if they are able to pay off the entire loan without incurring additional debt prior to the bank redeeming the property at the foreclosure sale? I realize that there is a negative impact because of the late payments and the foreclosure process being commenced, is that as bad as it gets or does further negative impact result after the redemption? Stated another way, does paying the entire balance off prior to the foreclosure and redemption by the bank improve one’s credit in any way, or at least prevent it from getting worse?
Thank you for your help.
Todd S. Rayan
A:
Hi Todd,
This is a great question. Once you start being late on a mortgage payment the damage is already done to your credit score. I have not seen a difference in credit scores whether you foreclose or if a possible sale takes place before an actual foreclosure. But your creditworthiness to get future mortgage loans is affected if the home actually forecloses. If your home forecloses it will be a minimum of 3 years from foreclosure date before you can buy again. If foreclosure proceedings have started, in the eyes of some lenders this is considered a foreclosure anyways. HUD also says that if foreclosure proceedings have started and you have 120 mortgage late payments on your credit report, it’s counted as a foreclosure. In my professional opinion its better to sell before you foreclose on your home. It just looks better. It does not really matter which happens as far as your credit score is concerned because the damage is already done due to all the late payments.
CreditScoreQuick.com
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Wednesday, July 16th, 2008
Do you know how easy it is to type a wrong letter or number? Do you know that people doing data entry at huge corporations aren’t as interested in working error-free as you might wish they were? The combination can be deadly to your credit.
That’s why, when you get your credit report, you must take the time to read and understand each entry. Your report could include accounts you’ve never had, accounts you’ve paid in full, and old information that should have been removed. All of these errors can and will affect your credit score.
Certain kinds of information should be removed after 7 years – this includes lawsuits, judgments, paid tax liens, accounts dispatched for collection, late payments, and even child support. And yet, even though this information should have automatically fallen from your record, it doesn’t always happen. You need to take responsibility for knowing what’s on your report, and getting it changed if it’s wrong.
Be sure to check your Social Security number, your name, address, phone number, and information concerning your occupation. Errors here could signal identity theft, or could just be errors. But the last thing you want on your credit report is someone else’s debt, just because their Social Security number is one digit different from your own (and incorrectly entered as yours) or because they share your name.
Correcting errors and removing outdated information can have an immediate and positive impact on your credit score. And since that can have a huge impact on the interest rates you pay, it’s well worth your time to get it corrected.
You simply fill out a request for reinvestigation, or write a letter to the credit reporting agency that listed the incorrect information. As carefully and accurately as possible, list every inaccurate piece of data and describe why it is incorrect. Do the same with each outdated item.
Don’t be rude or blame the credit reporting agency – they only report on information given to them by your creditors. So even while a data entry error may be theirs, you’ll gain faster, more cheerful cooperation when you’re simply factual. Once they receive your request, they’ll investigate the items you listed and contact you within 30 days to notify you of changes. If you’re in a hurry to qualify for a loan, the process can be expedited through a “Rapid Rescore.”
Credit scores are re-figured every 30 days, so be sure to check your reports each time they come in. Catching an error immediately could save you weeks of hassle and untold dollars if that error signals a case of identity theft!
CreditScoreQuick.com
Posted in free credit reports, free credit score reports | Comments Off
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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As new graduates embark into the world of independent living, most are ill prepared to deal with their own finances. It’s a shame that “Money Handling” isn’t a required course in all High Schools and Colleges, because starting off on the right foot can lead to a much more pleasant life than starting off wrong.
