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Home Mortgage-FICO-Top Ways to Improve Your Score
Author: Jack Krohn
Author's Website: http://www.m-o-r-t-g-a-g-e-r-a-t-e.com
There are very few things you can do before applying for a home mortgage loan that are more
important than knowing your FICO score. Fair Isaac & Company- the heart of FICO, the score that
greatly determines your interest rate on any loan-car, furniture, home equity, and of course on
credit cards. It can even determine IF you get the loan.
A FICO score is a composite of many historical factors (as many as 22) used by millions of
people to create a single score that is used by virtually all lenders to predict future behavior.
Of course FICO isn't everything. On the other hand as they say "it is way ahead of whatever is in
second place". Employers are using it to determine stability. Landlords are using it to determine
ability to pay timely and other factors associated with being a good tenant. Too, lenders use it to
determine if you get a loan and at what rate. Insurance companies use it to determine what kind
of risk you are
Improving your FICO score can help you:
· Get better offers for credit
· Lower your interest rates
· Speed up the approval process
· Save You Money
· Perhaps get a better job
There are several things you can do to improve your Credit Score: some are obvious, some not
so obvious. It takes a lot longer to repair your credit than it does to ruin it. So if you have
questionable credit NOW is the time to get going at fixing it. Lenders are looking for
trends-establish a new one NOW. They are looking for a long history managed well.
1. Get a Copy of Your Report and Review. Believe it or not mistakes are made. It is up to you to
get them corrected.
2. Pay Your Bills Timely. Maybe the biggest factor of all in determining your score.
3. Minimize Credit Card Applications. Don't open a lot of accounts at once-spread them out over
a year or more. I used to think the more the merrier-WRONG!
4. Don't Apply for Credit You Don't Need. Every time you apply it shows up on your report.
5. Keep Balances Low. The magic number seems to be in the 25-30% range of credit used to
amount available. So if you have an available limit of $10,000, keep your usage at
$2,500-$3,000.
6. Seriously Reconsider Closing an Account. It is better to use an account very occasionally than
close it.
7. Use Credit Responsibly. It will pay immeasurable dividends for you.
Check out www.myfico.com for a calculator using current rates. There is a wealth of information
at www.fico.org
For a single three digit number to have such an enormous impact on your life, it behooves you to
keep that score as high as you can get it. It will save you ton of money and maybe even help you
get a desirable job. Keep an eye on your score with regular monitoring and use your credit
wisely.
Author: Jack Krohn
Author's Website: http://www.m-o-r-t-g-a-g-e-r-a-t-e.com
There are very few things you can do before applying for a home mortgage loan that are more
important than knowing your FICO score. Fair Isaac & Company- the heart of FICO, the score that
greatly determines your interest rate on any loan-car, furniture, home equity, and of course on
credit cards. It can even determine IF you get the loan.
A FICO score is a composite of many historical factors (as many as 22) used by millions of
people to create a single score that is used by virtually all lenders to predict future behavior.
Of course FICO isn't everything. On the other hand as they say "it is way ahead of whatever is in
second place". Employers are using it to determine stability. Landlords are using it to determine
ability to pay timely and other factors associated with being a good tenant. Too, lenders use it to
determine if you get a loan and at what rate. Insurance companies use it to determine what kind
of risk you are
Improving your FICO score can help you:
· Get better offers for credit
· Lower your interest rates
· Speed up the approval process
· Save You Money
· Perhaps get a better job
There are several things you can do to improve your Credit Score: some are obvious, some not
so obvious. It takes a lot longer to repair your credit than it does to ruin it. So if you have
questionable credit NOW is the time to get going at fixing it. Lenders are looking for
trends-establish a new one NOW. They are looking for a long history managed well.
1. Get a Copy of Your Report and Review. Believe it or not mistakes are made. It is up to you to
get them corrected.
2. Pay Your Bills Timely. Maybe the biggest factor of all in determining your score.
3. Minimize Credit Card Applications. Don't open a lot of accounts at once-spread them out over
a year or more. I used to think the more the merrier-WRONG!
4. Don't Apply for Credit You Don't Need. Every time you apply it shows up on your report.
5. Keep Balances Low. The magic number seems to be in the 25-30% range of credit used to
amount available. So if you have an available limit of $10,000, keep your usage at
$2,500-$3,000.
6. Seriously Reconsider Closing an Account. It is better to use an account very occasionally than
close it.
7. Use Credit Responsibly. It will pay immeasurable dividends for you.
Check out www.myfico.com for a calculator using current rates. There is a wealth of information
at www.fico.org
For a single three digit number to have such an enormous impact on your life, it behooves you to
keep that score as high as you can get it. It will save you ton of money and maybe even help you
get a desirable job. Keep an eye on your score with regular monitoring and use your credit
wisely.
Recipe For A Credit Score
Author: Jacque
Author's Website: none
To calculate a score, Fair Isaac uses 22 pieces of data collected from the three major credit
bureaus, Equifax, Experian and TransUnion). The lowest possible score is 300, while the
highest is 850.
The final number is a composite of individual ratings in five categories:
Payment history (35% of the rating)
Length of credit history (15%)
New credit (10%)
Types of credit used (10%)
Debt (30%)
Income is not a factor. "A person can have a very high income and never pay their bills,"
explained Craig Watts, public affairs manager for Fair Isaac.
Fair Isaac calculates a FICO score based on the data provided by each credit bureau. It's not
uncommon to see up to a 50-point differential between ratings. The reason: Bureaus collect
data at different times of the month, and one bureau may have inaccurate information.
Most Credit Reports will give FACTORS used in determining the score; up to 5 factors may be
listed. The factors are in sequential order of the item reported most recently that negatively
impacted your FICO Score. Although you may have 10 years of making your payments on time
the first factor maybe length of time accounts have been established. This means the last factor
bearing an unfavorable impact on your credit was newly established credit, it does not mean
after 10 years they consider your credit newly established.
TIPS
By paying off accounts monthly, you may avoid interest but you may never build your payment
history. If 0 balance is always reported you never demonstrate the ability to payoff any significant
debt you may accumulate. An example is a mortgage is one of the biggest ways to increase you
fico, this is because it will demonstrate a large balance owed that every month shows a balance
and paid 12 times annually.
Keep your credit cards below 40% of your available balance, the closer to your card limit you are
the more negative impact it has on your fico.
Author: Jacque
Author's Website: none
To calculate a score, Fair Isaac uses 22 pieces of data collected from the three major credit
bureaus, Equifax, Experian and TransUnion). The lowest possible score is 300, while the
highest is 850.
The final number is a composite of individual ratings in five categories:
Payment history (35% of the rating)
Length of credit history (15%)
New credit (10%)
Types of credit used (10%)
Debt (30%)
Income is not a factor. "A person can have a very high income and never pay their bills,"
explained Craig Watts, public affairs manager for Fair Isaac.
Fair Isaac calculates a FICO score based on the data provided by each credit bureau. It's not
uncommon to see up to a 50-point differential between ratings. The reason: Bureaus collect
data at different times of the month, and one bureau may have inaccurate information.
Most Credit Reports will give FACTORS used in determining the score; up to 5 factors may be
listed. The factors are in sequential order of the item reported most recently that negatively
impacted your FICO Score. Although you may have 10 years of making your payments on time
the first factor maybe length of time accounts have been established. This means the last factor
bearing an unfavorable impact on your credit was newly established credit, it does not mean
after 10 years they consider your credit newly established.
TIPS
By paying off accounts monthly, you may avoid interest but you may never build your payment
history. If 0 balance is always reported you never demonstrate the ability to payoff any significant
debt you may accumulate. An example is a mortgage is one of the biggest ways to increase you
fico, this is because it will demonstrate a large balance owed that every month shows a balance
and paid 12 times annually.
Keep your credit cards below 40% of your available balance, the closer to your card limit you are
the more negative impact it has on your fico.
_________________________________________________________________________________
| Credit Repair Tips and Articles |
______________________________________________________
How To Improve Your Credit & Credit Scoring
Author: Wanda Ellis
Author's Website: http://www.AmeriMortgageFinancial.1st-website.net
If you are currently in excess debt, there are four ways to control it:
If your credit is not in terrible shape, you can reduce your other expenses, even if it means
making hard choices or changing your lifestyle to fit your income. Consider selling a second car,
taking equity out of your home, applying for a non-secured signature loan, obtaining a loan from
a relative, selling your home and paying off your debts with the proceeds and then renting,
cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.
If you're debts are under control now, but want to improve your credit history, the most important
factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with
your statements to mail your payments and call the company if you don't receive your usual
statement. Also send your payment as early as possible if you carry a balance. Most companies
calculate interest on a daily basis, so the sooner they receive your payment, the less interest
you'll pay.
Don't procrastinate. It's the day your payment is received that counts, not the postmark date. Give
the post office sufficient time (five business days is a good guideline) to deliver your mail. Late
payments may mean late fees, higher interest, and/or a negative mark on your credit report.
Never send cash. Open a checking account if you don't have one, or spring for a money order
and keep your receipt. Finally don't forget to tell your creditors your new address when you move.
If you are worried about making payments, make a list of your debts and when the payments are
due. Contact your lenders immediately if you think you will have trouble meeting the monthly
payments to arrange a payment schedule.
Taking money from your retirement account or tapping the cash value of your life insurance
policy to pay bills or living expenses may have serious implications you haven't considered, so
try to get advice from an expert before you take any major financial actions.
Credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off
over time. But they can also be dangerous if you aren't careful and charge more than you can
afford. If you do use credit cards, choose those with the lowest interest rates and pay them back
as soon as you can to cut your costs.
Credit Scoring - How it Works
Credit scores only consider the information contained in your credit profile. They do not consider
your income, savings, down payment amount, or demographic factors like gender, race,
nationality or marital status. Past delinquencies, derogatory payment behavior, current debt
level, length of credit history, types of credit and number of inquiries are all considered in credit
scores. Your score considers both positive and negative information in your credit report. Late
payments will lower your score, but establishing or re-establishing a good track record of
making payments on time will raise your score.
Different portions of your credit file are given different weights. They are:
35% - Previous credit performance (specific to your payment history)
30% - Current level of indebtedness (current balance compared to high credit)
15% - Time credit has been in use (opening date)
15% - Types of credit available (installment loans, revolving and debit accounts)
5% - Pursuit of new credit (number of inquiries)
The most important factor for a good credit score is paying your bills on time. Even if the debt
you owe is a small amount, it is crucial that you make payments on time. In addition, you may
want to: keep balances low on credit cards and other "revolving credit;" apply for and open new
credit accounts only as needed; and pay off debt rather than moving it around. Also don't close
unused cards as a short-term strategy to raise your score. Owing the same amount but having
fewer open accounts may lower your score.
Recent changes minimize the negative effects that rate shopping can have on a mortgage
applicant. If there is a consumer originated inquiry within the past 365 days from mortgage or
auto related industries, these inquiries are ignored for scoring purposes for the first 30 calendar
days; then, multiple inquiries within the next 14 days are counted as one. Each inquiry will still
appear on the credit report.
Every score is accompanied by a maximum of four reason codes. Reason codes identify the
most significant reason that you did not score higher. The reason codes can help a lender
describe the reasons for higher than expected rates or loan denial. Scores are not part of the
credit profile and are not covered by the Fair Credit Reporting Act.
Your credit report must contain at least one account which has been open for six months or
greater, and at least one account that has been updated in the past six months for you to get a
credit score. This ensures that there is enough information in your report to generate an
accurate score. If you do not meet the minimum criteria for getting a score, you may need to
establish a credit history prior to applying for a mortgage.
Credit scoring is a statistical method that lenders use to quickly and objectively assess the credit
risk of a loan applicant. The score is a number that rates the likelihood you will pay back a loan.
Scores range from 350 (high risk) to 950 (low risk). There are a few types of credit scores; the
most widely used are FICO Scores, which were developed by Fair Isaac & Company, Inc. for
each of the credit reporting agencies.
If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7
bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are
typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is
that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors
are starting to tighten their credit requirements, and you may have a tough time getting future
financing.
If CCCS won't take you, you may want to consider bankruptcy. Claiming Chapter 13 bankruptcy
takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13
bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in
bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after
you have finished paying off your debts.
If your credit is already damaged or one of the above isn't an option, go through Consumer
Credit Counseling Services (CCCS). Check your yellow pages for the local number. CCCS may
be able to help you pay off your debts as if you were in a Chapter 13 bankruptcy, but you don't
actually file for bankruptcy. BUT MORTGAGE LENDERS LOOK AT A CCC AS A BANKRUPTCY.
If you have had credit problems, be prepared to discuss them honestly with a mortgage
professional. Responsible mortgage professionals know there can be legitimate reasons for
credit problems, such as unemployment, illness or other financial difficulties. If you had a
problem that's been corrected, and your payments have been on time for a year or more, your
credit may be considered satisfactory.
Author: Wanda Ellis
Author's Website: http://www.AmeriMortgageFinancial.1st-website.net
If you are currently in excess debt, there are four ways to control it:
If your credit is not in terrible shape, you can reduce your other expenses, even if it means
making hard choices or changing your lifestyle to fit your income. Consider selling a second car,
taking equity out of your home, applying for a non-secured signature loan, obtaining a loan from
a relative, selling your home and paying off your debts with the proceeds and then renting,
cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.
If you're debts are under control now, but want to improve your credit history, the most important
factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with
your statements to mail your payments and call the company if you don't receive your usual
statement. Also send your payment as early as possible if you carry a balance. Most companies
calculate interest on a daily basis, so the sooner they receive your payment, the less interest
you'll pay.
Don't procrastinate. It's the day your payment is received that counts, not the postmark date. Give
the post office sufficient time (five business days is a good guideline) to deliver your mail. Late
payments may mean late fees, higher interest, and/or a negative mark on your credit report.
Never send cash. Open a checking account if you don't have one, or spring for a money order
and keep your receipt. Finally don't forget to tell your creditors your new address when you move.
If you are worried about making payments, make a list of your debts and when the payments are
due. Contact your lenders immediately if you think you will have trouble meeting the monthly
payments to arrange a payment schedule.
Taking money from your retirement account or tapping the cash value of your life insurance
policy to pay bills or living expenses may have serious implications you haven't considered, so
try to get advice from an expert before you take any major financial actions.
Credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off
over time. But they can also be dangerous if you aren't careful and charge more than you can
afford. If you do use credit cards, choose those with the lowest interest rates and pay them back
as soon as you can to cut your costs.
Credit Scoring - How it Works
Credit scores only consider the information contained in your credit profile. They do not consider
your income, savings, down payment amount, or demographic factors like gender, race,
nationality or marital status. Past delinquencies, derogatory payment behavior, current debt
level, length of credit history, types of credit and number of inquiries are all considered in credit
scores. Your score considers both positive and negative information in your credit report. Late
payments will lower your score, but establishing or re-establishing a good track record of
making payments on time will raise your score.
Different portions of your credit file are given different weights. They are:
35% - Previous credit performance (specific to your payment history)
30% - Current level of indebtedness (current balance compared to high credit)
15% - Time credit has been in use (opening date)
15% - Types of credit available (installment loans, revolving and debit accounts)
5% - Pursuit of new credit (number of inquiries)
The most important factor for a good credit score is paying your bills on time. Even if the debt
you owe is a small amount, it is crucial that you make payments on time. In addition, you may
want to: keep balances low on credit cards and other "revolving credit;" apply for and open new
credit accounts only as needed; and pay off debt rather than moving it around. Also don't close
unused cards as a short-term strategy to raise your score. Owing the same amount but having
fewer open accounts may lower your score.
Recent changes minimize the negative effects that rate shopping can have on a mortgage
applicant. If there is a consumer originated inquiry within the past 365 days from mortgage or
auto related industries, these inquiries are ignored for scoring purposes for the first 30 calendar
days; then, multiple inquiries within the next 14 days are counted as one. Each inquiry will still
appear on the credit report.
Every score is accompanied by a maximum of four reason codes. Reason codes identify the
most significant reason that you did not score higher. The reason codes can help a lender
describe the reasons for higher than expected rates or loan denial. Scores are not part of the
credit profile and are not covered by the Fair Credit Reporting Act.
Your credit report must contain at least one account which has been open for six months or
greater, and at least one account that has been updated in the past six months for you to get a
credit score. This ensures that there is enough information in your report to generate an
accurate score. If you do not meet the minimum criteria for getting a score, you may need to
establish a credit history prior to applying for a mortgage.
Credit scoring is a statistical method that lenders use to quickly and objectively assess the credit
risk of a loan applicant. The score is a number that rates the likelihood you will pay back a loan.
Scores range from 350 (high risk) to 950 (low risk). There are a few types of credit scores; the
most widely used are FICO Scores, which were developed by Fair Isaac & Company, Inc. for
each of the credit reporting agencies.
If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7
bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are
typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is
that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors
are starting to tighten their credit requirements, and you may have a tough time getting future
financing.
If CCCS won't take you, you may want to consider bankruptcy. Claiming Chapter 13 bankruptcy
takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13
bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in
bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after
you have finished paying off your debts.
If your credit is already damaged or one of the above isn't an option, go through Consumer
Credit Counseling Services (CCCS). Check your yellow pages for the local number. CCCS may
be able to help you pay off your debts as if you were in a Chapter 13 bankruptcy, but you don't
actually file for bankruptcy. BUT MORTGAGE LENDERS LOOK AT A CCC AS A BANKRUPTCY.
If you have had credit problems, be prepared to discuss them honestly with a mortgage
professional. Responsible mortgage professionals know there can be legitimate reasons for
credit problems, such as unemployment, illness or other financial difficulties. If you had a
problem that's been corrected, and your payments have been on time for a year or more, your
credit may be considered satisfactory.
Credit Card After Bankruptcy
Author: anonymous
Author's Website: N/A
Consumers who have declared bankruptcy may still need a credit card. And, although a
bankruptcy filing will appear on your credit report for up to 10 years, this does not mean you
necessarily will have to spend a decade plastic-less.
Following a bankruptcy, the length of time until you get approved for a credit card is up to each
individual issuer. Whether you get approved or denied for a credit card (along with issues of
credit quality and your credit limit) are entirely up to the banks that issue credit cards. As a
result, it is possible that you could be approved for a credit card soon after declaring bankruptcy,
but it depends on the issuer.
Still, it is likely that any credit card you are approved for will carry a high interest rate and a very
low credit limit, based on the credit risk you appear to present to lenders. Various credit cards
for people with bad credit may charge an annual fee, as well. But if you want to begin repairing
a damaged credit history, responsible use of a credit card could go a long way toward
accomplishing that goal.
Get your spending under control. Once you are approved for a credit card, be sure that you use
it carefully, perhaps only charging for things like gas and groceries rather than making
unnecessary purchases with plastic. As someone who has declared bankruptcy, you should
make every effort to pay monthly credit card statements in full so that you don't end up back in
debt.
Another payment card option for people who may have had suffered from bankruptcy woes
comes in the form of prepaid debit cards. These cards allow the user to only spend up to the
total they have deposited in advance onto the card, making prepaid cards an excellent choice
for consumers that are looking to control their spending.
Regardless of which type of card you choose, avoid applying for too many cards at the same
time. Multiple credit card applications make you appear desperate for credit and can hurt your
credit score.
Author: anonymous
Author's Website: N/A
Consumers who have declared bankruptcy may still need a credit card. And, although a
bankruptcy filing will appear on your credit report for up to 10 years, this does not mean you
necessarily will have to spend a decade plastic-less.
Following a bankruptcy, the length of time until you get approved for a credit card is up to each
individual issuer. Whether you get approved or denied for a credit card (along with issues of
credit quality and your credit limit) are entirely up to the banks that issue credit cards. As a
result, it is possible that you could be approved for a credit card soon after declaring bankruptcy,
but it depends on the issuer.
Still, it is likely that any credit card you are approved for will carry a high interest rate and a very
low credit limit, based on the credit risk you appear to present to lenders. Various credit cards
for people with bad credit may charge an annual fee, as well. But if you want to begin repairing
a damaged credit history, responsible use of a credit card could go a long way toward
accomplishing that goal.
Get your spending under control. Once you are approved for a credit card, be sure that you use
it carefully, perhaps only charging for things like gas and groceries rather than making
unnecessary purchases with plastic. As someone who has declared bankruptcy, you should
make every effort to pay monthly credit card statements in full so that you don't end up back in
debt.
Another payment card option for people who may have had suffered from bankruptcy woes
comes in the form of prepaid debit cards. These cards allow the user to only spend up to the
total they have deposited in advance onto the card, making prepaid cards an excellent choice
for consumers that are looking to control their spending.
Regardless of which type of card you choose, avoid applying for too many cards at the same
time. Multiple credit card applications make you appear desperate for credit and can hurt your
credit score.
______________________________________________________
______________________________________________________
______________________________________________________
Need help fixing your credit, but have a limited budget? No Problem Order Our Credit Repair E-Book & Kit... You will receive all of the guidance and insider tips it takes to navigate the specific challenges one faces when tackling consumer credit repair. Also: Bad Credit Buying Power Learn how to buy items with no/bad credit & with little or no money down . Only $9.95 Order Now Downloads Instantly Online After Placing Your Order |
Need help fixing your credit, but have a limited budget? NO Problem Order Our Credit Repair E-Book & Kit... You will receive all of the guidance and insider tips it takes to navigate the specific challenges one faces when tackling consumer credit repair. Also, learn how to boost your credit score simply by making one phone call. Only $9.95 Order Now Downloads Instantly Online After Placing Your Order. |
_________________________________________________________________________________
Need help fixing your credit, but have a limited budget? NO Problem Order Our Credit Repair E-Book & Kit... You will receive all of the guidance and insider tips it takes to navigate the specific challenges one faces when tackling consumer credit repair. Also, learn how to boost your credit score simply by making one phone call. Only $9.95 Order Now Downloads Instantly Online After Placing Your Order. |
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