Posts Tagged ‘Credit score’

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Fast Ways You Can Restore Credit

July 3rd, 2010

The typical person who is trying to restore credit is someone who has either built up a history of bad financial habits, or has fallen into circumstances beyond their control, such as losing a job or suffering a medical problem.  Unfortunately, lenders for car loans, mortgages or credit cards will not likely take into account the reasons you have fallen behind.  They look at credit reports simply as numbers, regardless of the people behind the story.

While this makes it harder to repair your credit history, when you as a person are ignored in favor of the hard, cold numbers, it’s important to remember that you are dealing with businesses, who have profit margins they need to meet, and have also suffered major losses in the economic downturn of the past few years.  As a result, their standards have only tightened, to avoid lending to anyone who might be a risk  in any way.  If you need to a fast way to restore your credit, then you will need patience, and knowledge. The first item we can’t give you but we can give you the knowledge of the types of effort that can help you get credit despite bad credit history.

Sometimes it can help to present the lender with information about your individual situation.  If you bank with a local bank, as opposed to a big national corporate bank, you may be able to actually talk to the loan officer to discuss your situation.  for example, wit ha job loss, your credit may reflect late payments, but if you have no been working an are paying down debt, you still  may be able to get a credit consolidation loan. Don’t hesitate to try to talk to the  highest up official you can, and describe your situation an dhow you are fixing it.

Or, if you are in the situation of trying to find housing but your credit report is causing landlords to refuse to rent to you, be completely open about your situation, about how you are taking steps to clean up your credit, about how you now have work where before you did not.  This can help, as they landlord will understand they can trust you to be open with them and that you will make paying rent a priority.

Make sure that as fast as you can, you pay off any past due balances, no matter how large.  Having large delinquent amounts is the biggest red flag to lenders.  Sell things on eBay or Craigslist, pick up a part time job, find a way to make some extra money and get that debt paid down.  It will show immediate results in your credit history, within a month or two as the credit reports update.

Make all of your monthly payments on time as well.  If you can’t afford to do that, ou ened to have some long, frank discussions with your lenders, and work out a plan. If the lender refuses to work with you, let them know that you have no alternative but to let their bill fall to the bottom of the repayment pile.  Pay what you can, and when times get better or income increases, take care of the rest.

Finally, you can restore credit by closing some accounts. Having too many accounts open can cause lenders to be concerned that you could overextend yourself at any time wiht debt on existing cards.  If ou have some that have been dormant for a while, carrying no or small balances, then pay them up and close them.  This can help your credit as well.


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Tips For How to Improve Your Credit Score

July 2nd, 2010

With changes to bank policies and fees, many Americans have seen changes in their credit scores.  If you’re asking “how to improve my credit score?”  you are not alone.  Many people saw a downturn in their score.  Here is a really basic tip on how to improve your credit score.

When you’re applying for credit today, getting a store credit card is the kind of card that’s easy to get, but that  you  may not use all the time.  Once you apply, you may forget about even having that card, if you don’t shop at that store frequently.  Yet that open store card account appears on your credit report while it’s still an open account.  When you have lots of these types of unused accounts at various stores, you may damage your credit since it looks like you have too  much available, and could get overextended.  Lenders don’t like to see a lot of available credit you never use. 

It’s also true that having many credit card accounts you don’t use can lead to a risk of forgetting bills, and forgetting to make payments on those accounts.  Having these kinds of lingering debts can also hurt your credit score. You never want to have a bill go unpaid or be late in any way, if you’re trying to raise your credit score to a higher level.  It’s a good policy to only keep open those accounts which you know you will use, and make sure you pay those on time.  Close other accounts that you do not use, or do not intend to use.  When you have a manageable number of accounts, that means you can more easily keep track of what you need to pay each month, not to mention keeping your payments affordable.  You can improve your credit score by closing some of these accounts, and paying the remaining accounts on time.

If you do have one of these accounts that has become delinquent, even if you close the account the history will still appear on your credit report.  That’s why it’s so important to make every payment on time.  You may also see a slight drop in your credit score when you close an account, because your existing balances are a bigger percentage of the remaining accounts you have open.  Don’t worry about this too much, but just keep paying down balances and your score will come into line too.

As an example, if you start out with a total of $4000 in credit, with a balance owed of $1000, but you close two cards and reduce your available by half, owing $1000 on a card limit of $2000 looks worse than owing $1000 on a card limit of $4000.  Just  keep paying down your balances, make your payments on time, and soon your balances will get below $500 and your credit will improve.


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Posted in Bad Credit, Improve Credit Score

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What Does Your Credit Score Range Say About You?

February 22nd, 2010

The FICO credit score range is a summary of how you handled your credit over the last seven years. Over time companies have used statistics to estimate how people will handle their credit under different credit score ranges to determine what interest rates they would have to charge to make the loan worth the risk.

What is A Good Credit Score?

Well the perfect credit score range is 760 to 850. You won’t see many differences in offers anywhere in that range, but you’ll love every offer you see. To achieve this range you must never (in the last 7 years) ever miss a payment, use credit but pay it in full every month, and have been doing that consistently. Essentially you’re screaming to creditors “I love credit and will play your game exactly how you want me to.”

For the rest of us a good credit score range is anything north of 650. You see a significant drop in interest rates at this point.

Why the Huge Swings in Interest Rates?

The interest rates are the primary tool in battling delinquency rates. The more likely someone is to default on their loan the more you have to charge everyone similar to them to still earn your profit while writing off the bad debt. Here are the primary credit score ranges and their estimated current 30 year mortgage rates.  (If you have a low credit score, you might consider taking some credit restoration steps to clean things up before applying.)

  • Less than 500 (89% delinquent): Not Available
  • 500 to 549 (70% delinquent): Not Available
  • 550 to 599 (51% delinquent): Not Available
  • 600 to 649 (31% delinquent): 6.23% maybe
  • 650 to 699 (14% delinquent): 5.5%
  • 700 to 749 (5% delinquent): 4.9%
  • 750 to 799 (2% delinquent): 4.6%
  • 800+ (1% delinquent): 4.6%

The same credit score ranges on a car loan are even more frightening. The people who need the help getting a car loan the worse (because they really need to keep their job) are the same people getting gouged for the loan. Here are credit score ranges for a 48 month car loan and their corresponding interest rates.

  • Less than 500: Not Available
  • 500 to 549: 21%
  • 550 to 599: 20%
  • 600 to 649: 15%
  • 650 to 699: 10%
  • 700 to 749: 8%
  • 750 to 799: 6%
  • 800+ : 6%

Before getting a loan check out which credit score range you are in and see if there is anything you can do before getting the loan to push you into the next bracket.


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Are There Mortgage Bad Credit No Down Payment Products?

February 1st, 2010
This economy has changed a lot of things about the landscape of American lending and credit. One of the items that has been dropped like a hot potato are mortgage bad credit no down payment loans, where individuals with bad credit can get 100% financing.  The main reason for this is that these products are one of the causes of the economic meltdown – or rather, the writing of these products by banks, then the banks' sale of these product broken up into loan packages called CDOs.  As jobs were lost and home fprices fell, so did the likelihood that these loans would be repaid – so banks have run as fast as possible away from offering these types of loans.
 
But what is a person with bad credit supposed to do? Everyone needs shelter. If you ave bad credit, and it's seriously bad say under 600, and you have no down payment, then realistically, you should be looking at renting at an affordable rate, and trying to save money.  Banks will just not want to work with you, and the FHA, which guarnatees 95% of the loans in the United States, suggests a credit score of 640 as the bottom score for which you can qualify for a mortgage.
 
It's especially hard to find loans because no one is sure whether home prices will stabilize or go down. So, if you buy a home today with 100% financing, and the price of the home drops, you aren't the one losing equity – the lender and the government are.  So lenders do not want to take the risk of taking back a home that isn't worth what they lent.
 
Does that mean you can't buy a house with bad credit? No. If you can get your redit score up to the 640 range, which is still considered bad credit, you can qualify for a first-time loan (if you have never had a mortgage, or haven't had one in the past 3 years). As a "first time" homebuyer, you can buy a home with 3.5% down.  There will also be closing costs and fees, but if you can meet that bare minimum standard, which is still bad credit, you can get a home for almost no money down. 
 
Be sure that if and when you do buy, you can afford it though – today, you can probably rent more house that you can buy for the same monthly payment. Make sure you do what's right fo ryou financially, and avoid continued habits – like borrowing no money down – which keep you in financial difficulties into the future!

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Should You Use Online Credit Repair?

November 13th, 2009

Online credit repair is one of the latest services you can find on the internet. When so many people are in bad shape financially, finding the easiest and fastest way to repair your credit becomes important. Many people want to just log on, find an online service, and get everything squared away. But is it really possible to use online credit repair and get everything fix up on your credit report?

The answer is, unfortunately, it’s not too likely. Mostly, you can find information about how to repair credit on your own, and what steps to take, without having to contact a service or agency to help you. There are a certain basic set of fixed things you need to do to fix your credit, and going online you can certainly find this type of credit repair help.

So what can you do online versus what can be done offline? Well there isn’t much, except for things like checklists. You will really be spending more time calling your creditors than you will be online. The things you can do online are items such as gather your credit reports and also maybe get your credit scores, but credit scores are not needed to repair credit. When you’re trying to repair credit online, you will be checking for information regarding your credit status, and finding ways to get in touch with credit help services and build your repair plan.

Is there a best online credit repair plan? Not really – you can get started on your own right away. Here are some things you can do right away without necessarily needing online credit repair: Start by getting copies of your free credit report, at http://annualcreditreport.com. This is the FREE site from the government. You will not have to pay for your credit reports from each of the big credit reporting agencies. Next you can review those for errors. Get every mistake fixed – each time you fix credit errors, you can improve your score.

As a next step, start figuring out how to bring all of your payments current. If you are behind on any payments, you are killing your credit score. So bring things current, if you have to sell stuff on EBay, or get a second part time job, it’s important to get everything up to date.

Finally, start to pay more than the minimum payments for your credit bills. Getting those debts paid off is your goal, and saving as much interest as possible is important too. Paying early helps reduce the total interest you will pay. Again, sell things, start a side business, or get a part time job to get as much put toward your debt as possible. When you take these steps on your own, online credit repair is much less necessary for overall credit help.

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Getting A Loan With Bad Credit

October 28th, 2009

There are many people that are looking for bad credit loans these days. Many people are looking out of sheer desperation. The recession has severely damaged our economy and crippled the credit scores of many people throughout the world.

You may even be dealing with credit card debt in another country, but no matter where you are, it will be a major setback. Is there any way of guaranteeing yourself a loan? Well, there are many different factors that will influence whether you receive a loan. One lender may want to give you a loan, but another lender with lower interest rates may decide that you do not qualify because you have low credit.

Why is it harder to get a loan if you have bad credit? The reason that it is harder to get a loan with bad credit is because of the higher risk associated with having a low credit score. If you have a higher credit score, it generally shows that you have been responsible with your bills, credit cards, and loan payments.

Most people that have good credit are trusted by banks for loans because they have demonstrated trustworthiness in the past. Are you the type of person who pays your bills on time? Do you currently have a good credit score? These are questions that you should be asking before you take out bad credit loans.

What if you have been turned down by loan officers for poor credit loans? Is there any place that you can go to in order to get money? The short answer is “yes.” However, you should be careful with where you decide to take out your loan from.

There are many people that start working with payday lenders and forget to look at the final interest rates of the deal. You should always make sure that you are getting a fairly low rate of interest before you finalize a deal. It is never a good idea to assume that payday loan lenders are the only place that you can obtain loans for people with bad credit.

There are always going to be other places that you will be able to find lenders. Many times people can get online loans with bad credit for better deals than payday lenders. In fact, there are always lenders that provide “no credit check” options in order to cater to a bad credit population. You should always compare rates of online lenders to bank rates and credit unions.

It is apparent that a payday loan may be advantageous in a situation where you need money very quickly, but it is generally not regarded as the best choice. You should make sure that you have compared all loan options before deciding to finally get one. You may want to even consider working with specialized lending institutions geared specifically towards individuals with bad credit.

If you are experiencing a lot of trouble getting bad credit loans, you can always get a cosigner. Similarly, you can get a “secured loan” or even decide to pay higher interest. If you cannot think of what type of loan to get, make sure that you work with a professional to assess your options.

If you want to fully understand loans for bad credit, you should take the time to read about various lenders that offer loans with poor credit. This will help you learn about how the lending process works with poor credit.


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Your Credit Score Could Make or Break You

September 27th, 2009
by Tawana Rashing

For a three digit number, your credit score sure can say a lot about you to the world. Since banks and lenders look at your credit score when you request a loan, it can have a huge effect on your major buying decisions. Buying a home, getting a car, refinancing – if your credit score is too low, you can kiss those things goodbye.

Any time you request a loan or apply for a credit card, your credit score will be pulled. Lenders look at your credit score to determine whether you are a high or low risk lendee. If your score is high, you’ll be approved – if it’s low, then your loan will be rejected. The higher your credit score, the lower your interest rate should be as well.

So what is a credit score exactly and who or what determines what yours is? First off, credit scores are determined by the big three credit reporting bureaus, such as Equifax or TransUnion. That means you technically have three distinct credit scores, though all should be around the same number.

These agencies determine your credit score by examining a variety of factors about your credit history. Debt to income ratio and credit availability are the big factors. Late or missed payments, bankruptcy claims, disputed debt and more also factor into your credit score.

Taking all this information into account, the big bureaus then assign you a credit score – which is really like a grade. The highest you can hope for is 990, but consumers with perfect scores are hard to come by. In fact, not every agency’s credit score measurement is as high as 990. Some stop around 850.

Whatever the highest score is, you want to get as close to that as possible. A credit score of 725 or higher will get you approved for a loan. It should also earn you low interest rates. What is considered a good credit score can change with the economic climate as well – the tougher the economy is, the tougher lenders will probably be on approving loans.

Your credit score paints a picture of you as a consumer to any company pulling it. It gives them an idea of how responsible you are with your money and paying debts. It even gives them an idea of how early on you began building up your credit, or if you haven’t at all! You may even have to allow potential employers to pull your credit score and history nowadays.

Given how important a credit score can be, you should find ways to keep on top of your credit score and report. Many sites online offer free trials so that you can pull your score and report without paying. It’s important to do your research on these sites though, and not get sucked into paying for information you can get for free. Keeping on top of your credit score will allow you peace of mind the next time a big buying decision pops up.

About the Author:
The author, Tawana Rashing, is an expert credit repair counselor working with consumers to repair and increase their credit score. She is a part time writer for a variety of sites about credit tips, counseling and repair. Her hobbies include gardening, biking, scrapbooking and spending quality time with her family.

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It Is Pertinent That You Check Credit Score At Least Every Three Months

September 1st, 2009

People have come to the conclusion that when you check credit score you are actually doing your score more harm then you are good. However, this particular statement is not in any means true to any extent.

Performing checks on your score on a regular basis is actually a good thing to get involved in. There are a plethora of different programs that offer credit monitoring for an extremely small fee. You will be able to check your score whenever you feel the need to without any ailments.

Research has shown that people who continue to perform regular checks on their scores are actually ten times less likely to have their identity stolen by thieves who prey on peoples information. You should always be well aware of where your credit score stands at all times. It is considered a great idea if you perform a credit check on yourself at least once within a three months time frame.

What you may not believe, is there are a lot of things that can happen to your score over this period of time. When you have the opportunity to constantly monitor your score you can catch any suspicious behavior that you may note on your score in a quicker time frame then you may have expected.

A lot of people have gotten themselves on a credit craze. The craze has continued to get worse as our economic stature continues to deplete. People are noticing that the people that are not having any trouble being able to live comfortably are the ones that already have an exceptionally high credit score.

This intricate phase of three separate numbers actually says a lot about a person. A credit score is utilized whenever you make a purchase. In fact many people are even beginning to utilize these scores to be able to depict if you would be a good recipient for a job.

Credit scores work extremely simple, there is nothing complex that comes with understanding your score. Everyone gets their own credit score which is based off of things such as payment history and their overall worthiness to have credit.

The higher your score stands the more things that you will be able to purchase. It’s almost upsetting that our whole lives revolve around one score, but the inevitable can not be changed. The highest score that you can have is an 850. There are not a lot of people that obtain this score. However, something that is close to it is considered to be great as well. You should try to keep your score between 780 to 850 in order to obtain everything that your heart desires.

Ensuring that you perform regular checks on your underlying credit score will allow you to increase your score over time. You will know if anything that does not look right to you is listed on your report, and you will be able to catch identity theft before it takes over your score.

For more tips on credit score , 3 in 1 credit report and absolutely free credit report visit Online Credit Report


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How To Get the Best Credit Cards

August 4th, 2009
by Chuck Smithers

At hand are thousands of credit card deals to be had in our marketplace and without the correct approach it is very simple to become lost and baffled. Indeed, with each package offering altered incentives, rates of interest and fees, it will be difficult to know which one will offer you the finest solution for your monetary needs.

But, with a little bit of patience and a dose of common sense, it doesnt have to be rocket science. The solution, say the financial experts, is to identify your needs and at that time do your research. Therefore, before you even start looking for a actual credit card, it is essential that you think about what you aspire to use it for and how you propose to pay any money spent, back.

In doing this early on, you will help to pave the way for finding what advantages you must be looking for in your credit card. For instance, if you think you will use it often, and propose to reimburse off the outstanding balance at the ending of every month, then it is wise to look for for a package that offers some form of reward scheme, such as air miles, money back, or zero percent interest on purchases.

However, if you are not certain that you will be able to compensate off the balance each month, then the interest rate is more vital than any incentives obtainable. Generally speaking, the lower the rate of interest charged, the better. It is significant to beware of low introductory rates, though, since they often raise drastically after the introductory period is over. Consequently, before applying, make sure you find out what the rate is expected to rise to.

Your credit history is an extra important issue to consider when applying for a credit card. It is frequently the case that the worse your credit rating is, the harder it is to receive a satisfactory deal in terms of interest rates.

You should also be aware that every time you apply for a credit card, it shows up on your credit history and will impact on a lenders choice to understand your application. Thats why it pays to do your research, shop around and simply apply for a card that is tailored to your current financial circumstances.

The net is a great place to seek for deals, not simply because it is probable to unearth a wealth of information linking to credit cards, but also because there are far more deals accessible in contrast to the high street. Additionally, it is far easier to compare the details of different packages quickly and efficiently online, rather than with struggling with a few leaflets and paperwork!

So, if youre seeking for a credit card bargain, but are bewildered by the subject matter, dont worry! With a bit of time and persistance, you are guaranteed to find a package that is just right for your financial needs.

About the Author:
Chuck Smithers is a financial guru that gives the internet marketplace informative, Free Bad Credit Card Tips You should also read Chuck’s Free Report on How To Raise Your Credit Score

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Credit Score Overview: What You Need To Know

July 7th, 2009
by Tawana Rashing

Your credit score can have a big impact on your life. That score determines whether or not you can buy that new car, be approved for that loan or hired by that new company. Anytime you’re speaking to a bank or lender about a loan, they will be pulling your credit history and score.

That means whenever you’re involved with a purchase that requires a loan, someone is pulling your credit score and report. The higher your score, the more likely you are to be approved. You will also probably be granted a lower interest rate than consumers with scores lower than yours.

So what is a credit score exactly and who or what determines what yours is? First off, credit scores are determined by the big three credit reporting bureaus, such as Equifax or TransUnion. That means you technically have three distinct credit scores, though all should be around the same number.

These companies determine your credit score through a variety of factors. Your debt to income ratio plays a roll, as does the amount of credit you have open to you. Your payment history is also a factor, and late or missed payments can have a big affect on your credit score.

From this information, the bureaus are able to assign each consumer a numerical credit score based on their results. Credit scores can range from 0 to as high as 990 depending on the credit reporting agency. Each agency has its own method of assigning credit scores.

Whatever the highest score is, you want to get as close to that as possible. A credit score of 725 or higher will get you approved for a loan. It should also earn you low interest rates. What is considered a good credit score can change with the economic climate as well – the tougher the economy is, the tougher lenders will probably be on approving loans.

Your credit score is like a report card for lenders to look at. It helps them determine your responsibility levels, such as whether you can be counted on to make payments on time. In this day and age, even a job interview is cause to pull your credit history.

Since your credit score can have such a huge impact on your decision making, it’s important to stay on top of it. You should pull your credit report at least once a year, and utilize a free online service to get your credit score. This will help you take care of issues if and when they crop up, ensuring that the next time you’re ready to make a big purchase, you don’t have to sweat about your credit score.

About the Author:
The author, Tawana Rashing, is a debt counselor and credit repair specialist working with consumers to improve their credit score. She is a part time writer for several websites revolving around the topic of credit and credit repair. In her spare time she enjoys cooking, exercising and volunteering at her childrens’ school.

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