Find Out Your FICO Scores
Your mortgage lender will underwrite your loan application using the middle of your three FICO scores. If you expect to purchase a home or refinance your current mortgage you should know your FICO scores in advance. If there is a problem it is best that you discover it, rather than your mortgage lender. Plan your credit repair strategy today.
Get the Right Scores
The credit scores sold by Experian and TransUnion are their own proprietary scores and can differ from your FICO scores by a significant amount. Equifax sells a true FICO score, but will apply the FICO model only to its own data, and it is not enough to have one FICO score. Your credit repair effort requires reliable information. The only site consumers can purchase their three FICO scores is myfico.com.
Check Your Revolving Balances
Your revolving balances have a dramatic impact on your credit scores. Many people in credit repair programs assume incorrectly that if they make their payments on time their scores will be fine. Later they wonder why their scores are languishing. A high balance on a credit card may cause a drop of over one hundred points your scores. You cannot afford for this to happen. When it comes to your mortgage, every point counts.
Bring Your Balances Down
Plan in advance and bring your balances down as much as possible before your make your mortgage application. The FICO scoring model recognizes five levels of credit card usage: 20, 40, 60, 80, and 100 percent; the lower the balance the higher the score. Here is some great credit repair advice, if you have the ability you should reduce your balance below 20 percent of your credit limit.
Proofread Your Reports
Once you have all three of your credit reports you should take the time to proofread every bit of information. Remember that you may be living with your new mortgage payment for many years to come. Don’t make the mistake of believing that if the information on your report looks familiar it is accurate. Credit repair requires a bit of healthy skepticism. There are many types of errors possible; not all errors are obvious. I suggest that you spend a couple of hours examining your reports. It may be the best investment of time you ever made.
Fix the Derogatory Information
Look carefully at the derogatory information on your reports. Common errors include duplicate accounts and accounts that are reporting beyond the seven year reporting period limit. Keep in mind that the reporting period for a collection starts with the first missed payment in the sequence that led to the collection status. Collectors often reset the clock accidentally, or otherwise, and report well beyond the expiration of the legal limit. You should also know that when a collector sells a debt, or returns it to the original creditor, they are supposed to cease reporting, but rarely do. This is a great credit repair opportunity.
Fix the Positive Information
Many of the errors that can hurt your credit scores are not derogatory and are harder to spot than a thirty day late payment or a collection. A patient credit repair effort will pay off. Some of the errors that commonly go unnoticed include under-reported credit limits and misreported account opening dates. Under-reported credit limits can make it look like your credit card is maxed-out and your score will reflect this. Misreported account opening dates can make it look like your account is newer than it really is and you will lose points.
The Power of a Rapid Rescore
If you find yourself needing to improve your credit score quickly, try a Rapid Rescore. A Rapid Rescore is a tool offered only by mortgage brokers. It allows you to furnish documentation that balances have been paid down, or that derogatory information has been resolved or is reported in error. The mortgage broker provides the documentation to the credit bureaus. They in turn recalculate your score within three days. Instant credit repair. There is a small cost involved, but it can be well worth it.
Hold off on New Purchases
Too many people make the mistake of making large purchases before they apply for a mortgage. The effect is to inflate revolving balances and deflate saving accounts, thereby lowering credit scores and weakening the mortgage application. Wait until you close on your new mortgage before purchasing your new furniture. Hold off on all significant transactions. Save your money and preserve your credit scores.
New Credit and Your Credit Repair Effort
Your credit score is determined by both the negative and positive information on your credit report. If you do not have any open credit your credit score will suffer. Many people in credit repair programs open secured credit cards to start the rebuilding process. That’s a good idea, and very effective. But be careful of the timing. The first month a new account appears on your credit report your score will fall. If you need to build new credit don’t wait until the last minute.
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Can you fix your credit on your own without the help of a professional? You most certainly can. While the FICO credit score is complicated, there are some simple things you can take to improve your credit score. Here’s how to do it in 5 simple steps.
Order Your Credit Report. By law you are entitled to one free copy of your credit report from each of the three credit reporting agencies; Experian, Equifax, and TransUnion. The items that appear on these credit reports will slightly vary, so you wan to get a copy of all three if you have not reviewed your credit report in over a year. Take a Close Look. You want to carefully review your credit report for errors. Chances are you will find something wrong on your credit reports, and there’s a 25% chance that there is something wrong that is affecting your credit score. Some things to look for are wrong information, lines of credit that should be closed that are open, inaccurate account history. Make Notations and Dispute. Highlight and note the areas that need fixed, and contact the credit agencies in writing to have the information reviewed. By law, they have 30 days to investigate and respond to your inquiry, and the laws are in your favor. If the creditor/lender cannot prove that you were in the wrong, the items must be removed from your credit report. As a result your credit score will increase. Keep Watching. Just because the items were removed from your credit report, that does not mean the creditor/lender cannot and will not put it back on your report. Keep a close eye on the items that were removed. You may have to do the process all over again.
By: Ryan J. Taylor
About the Author:
Take the first and easiest step in repairing your credit right now. Get your credit fix in less than 45 seconds and watch your future start to change today. Discover how to rebuild credit
Having a credit score that is less than perfect is quite common these days. A single late or missed payment can drop your credit score by up to 100 points! There are techniques to bad credit report repair that you can learn to fix your bad credit. While it’s easy to see it slip, it is just as simple to raise it up – if you follow the advice given here.
Tip 1: You need to pay down your credit card balances.
The algorithm that dictates your credit score weighs the difference between your available credit and your credit in use very heavily. If you have credit cards that are maxed or near maxed, then you need to do more than pay the interest on them each month. Make some sacrifices and start reducing the principal amount on them. The most that you should have on any one card at any time is bout 30% of the maximum limit allowed. When you have credit that is available to you that you are not using, it makes you look like you practice restraint and shows responsibility. Credit score algorithms like that.
Tip 2: Break out some of those older credit cards and use them.
The longer that a credit account is in good shape for, the better it weighs on your credit score. If you have older credit cards that are still valid, but you haven’t used them in a while, use them. Charge up to 30% of the maximum limit and then pay it off promptly and in full. This way, these actions get reported to your credit bureaus and make you look like a well-established credit champion!
Tip 3: Dispute negative items on your credit report.
You are entitled to a free copy of your credit report from each of the three major credit reporting agencies once every year. They are: Experian, TransUnion, and Equifax. So, once every four months, request a copy from one of them. This way, you are always in the know about your credit situation.
Go through them each time you get one and dispute every the negative items on them. It is your legal right to dispute any negative claim against you. By disputing an item, you are exercising your right to have the claim verified. This is the responsibility of the credit reporting agency since they are the organization selling your information for profit. It is their responsibility to verify the information that they are selling.
They must verify each claim disputed in a reasonable time frame of 30 to 45 days or they have to strike it from your report. Now, about 40% of these disputed claims do not get verified in time. This is the single most powerful method of bad credit report repair. Use it to your advantage and use it often. Make sure to submit your dispute forms via certified mail at the busiest business times of the year.
These are just a few of the ways that you can engage in bad credit report repair. All it takes is attention, diligence and then some patience. Bad credit report repair is your legal right and something that you should do regularly!
By: Chane Steiner
About the Author:
Learn how to repair your credit at AAACreditGuide.com Check out the best credit repair companies at Top-10-Credit-Repair.com
Does your bad credit cause you to miss out on sweetheart deals or keep you from getting the things you want now?…on terms you can live with? Let me share a short story with you…A few years ago… I had horribly bad credit. Though it was mostly might own fault for the mess I was in…It deprived me of getting my dream house and all the other things I wanted and deserved. Which lead me on a journey…looking for any and all advice on how to do bad credit repair yourself I could find.
There are lots of ways for you and I to repair bad credit. It’s really quite easy once you know how…and I’m going to share with you some advice to help you repair bad credit yourself.
Step One– Getting your credit reports
Order your credit reports. Do you know whats on your credit reports? If you don’t you really should. Notice…I said “reports”. Why? because there are 3 major credit reporting agencies (Experian, TransUnion and Equifax) and each has it’s own data base. You can get 1 free credit report per year from each agency. Review your reports and make note of any errors, incomplete or false entries that aren’t yours.
Step Two– Know you rights…The Fair Credit Reporting Act
Before you contact the credit reporting agencies to dispute them…visit the federal trade commission website ([http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm]) and learn what your consumer rights are. Would you believe me?…if I told you that you can demand removal of any false or incomplete entries on your credit reports and the credit agencies MUST comply under penalty of federal law.
Step Three– Time to take action…Dispute the Credit Reporting Agencies
Now that you have an idea of whats on your reports…it’s time to challenge any discrepancies. Sit down and write a letter to each credit reporting agency about any erroneous entries…Now, don’t be afraid of the “credit police.” You see…these agencies are nothing more than a clearing houses who’s only purpose is to collect and store credit information on you and I… to sell that information to merchants that we apply to for credit.
They have no special power over us…they’re just in business to make a buck.
Step Four– Monitor your progress…Keep fighting for your good name
Okay, so you’ve fired off letters disputing any discrepancies…Now what? It’s time to play the waiting game. It takes up to 30 days for your disputes to be verified by the creditors in question and if you’re successful…the errors will be removed.
If the credit agency sends back a reply saying you own a disputed account …relax. Why? Here’s how they verify your accounts with creditors. The credit bureaus send out a simple little one page form to creditors/debt collectors already filled in with your name, ssn and no detailed info. The creditor checks their files and either confirms–yes, it’s yours or says no… and removes the item from your credit report. That’s It!
I once had a bankruptcy being reported as mine that belonged to some lady in Ohio. Our social security numbers did’nt even match and I’ve never lived in Ohio a day im my life. In fact– the only thing we had in common was our initials! Moral to this story…keep disputing…ask the creditor in question for contracts or agreements that you’ve signed (they have to produce at your request or delete it from your credit report.)
So, as you’ve learned… to repair bad credit yourself isn’t hard at all. Armed with some solid advice…It takes just a little time and patience to order your reports, learn what your rights are… and most importantly….Take action!
By: John Briggs
About the Author:
Did You know with a 720+ Credit Score …you can be approved for the Car, Home, Business Loan and Credit Cards you deserve in minutes? Want to learn how to get approved for the credit you deserve? Log on here to find out more and get “8 Credit Secrets”–FREE! [http://www.over40.review-mart.com/repair_bad_credit]
Bankruptcy credit
Information regarding bankruptcy credit is necessary prior to having filed for the Chapter 13 that must be last resort of yours. The imperative action taken by you prior to having filed for bankruptcy would that be of acquiring credit report with regards to financial situation of yours. From here onwards, there’re several strategies regarding debt reduction which can be enacted by you well before the hitting the fatal button of Chapter 13. If you, however, wish of filing for bankruptcy, be sure about knowing the finest way of going about it.
Bankruptcy credit report
The 3 major sources relating to obtaining the credit report are Trans Union, Equifax, and Experian, i.e. TRW. They would be providing information regarding the credit inclusive of all the loans, like car and house loans. They would also be having information regarding credit card debts of yours, along with the other small loans. If you do not ask for the credit score, these reports can be obtained for free.
Debt Reduction bankruptcy Credit Report
There’s lots of avenues which you could pressure or finding out ways regarding filing for the bankruptcy. Do not forget that if filing for the bankruptcy comes in to picture, record of yours would be staying on the public records, that too, for around 10 years. 7 years would be contained with credit reports. A good point for noting is that credit can be still accessed from monetary institutions during such time period. As past debts of yours have already been paid by now, and no money is owned by you on them, till you prove of yourself to be making good income, along with having built up some sort of savings history, particularly in last 6 months, you are likely of finding yourself somewhat lucky.
There are a number of ways of reducing debts of yours. They are inclusive of lots of things. For instance- you can try to call your creditors, thereby asking them for an offer to settle today. Such a method is reported to have worked out and can also help in reduction of amount of loan repayment to around 85% of total. You are also likely of going lower, just like any process of negation. All you need to do is try to go for lesser amount, that too, without being offensive-anywhere from fifty percent and upwards. Capacity of repayment and repayment history way in the form of factors. If you’re to go in to bankruptcy, and the same is thought from the opposite party, getting something, i.e. some amount in comparison with nothing. You can then go up on offer.
Facts pertaining to bankruptcy credit reports
The most astonishing fact about bankruptcy credit reports is that every thirty seconds, someone goes on to file for bankruptcy in the US.
Kinds of bankruptcy
Bankruptcy consists of two kinds. Chapter 7 bankruptcy can be referred to as the bankruptcy declared upon appointment of a trustee by the court. Chapter 13 bankruptcy can be referred to as the one occurring upon consolidation of debt in to single payment on the month-to-month basis.
By: Charles Bretz
About the Author:
Charles Bretz is a researcher,writer and advisor on financial and debt consolidation matters. You can read more about these topics at http://www.themoneypage.org/bankruptcy.html
A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Promises to “fix” your credit are always made by credit consolidation companies, but they are seldom true. Here are some of the important tips to avoid scams:
First things first. Negative information cannot be erased if the information is correct. Only inaccurate information can be corrected in your credit file. Credit file information remains on your record for seven good years from the time it is reported to the bureau. For bankruptcy, the information remains on your record for ten years. All the consolidated information about your credit bills you fell behind on, but are now paid, will remain on your report for the time period mentioned above.
Do not pay the credit repair company unless their promises are kept. Remember, the law is on your side. Federal law requires credit repair companies to give you a complete detailed explanation of your legal rights, a completely documented written contract, and above all, 3 days to cancel. This applies to all credit repair services including for-profit services, non-profit services, creditors and credit unions.
Be wary about emails you receive. When you hover your mouse over the link in the email, you will know for sure if it is a trusted website or a fraudelent one. If fraudelent, report it to your bank promptly.
You don’t need a counselor to correct your mistakes in the credit report. Take charge of it yourself. If you were recently denied credit, you can request a free credit report. Otherwise there is a small charge for it. Some states will allow you a free copy of your credit report once a year. It doesn’t cost you anything to dispute or question items in your credit report. Get online or follow instructions from your credit bureau. The three major credit bureaus are Equifax (800- 685-1111), Experian (800-682-7654) and Transunion (800-916-8800). In most cases you will need to contact all the three credit bureaus as the information they have about you may vary.
Remember that you can’t create a second credit file. Some of the fraudelent companies will offer to provide the consumers with a different social security number (tax identification number if ssn does not exist) in order to create a new credit file for the consumer. Such a practice is called as file segregation. File segregation is illegal and does not work.
Whereever possible, add explanation to your credit report to prove your point. If you have legitimate reasons for not paying certain bills on time (switching jobs, illness), or if you refused to pay because of a dispute, send the bureau a statement to be tagged with your credit report. Each lender who pulls your report will be aware why you fell behind on those bills.
Counseling might be a good option. Find a good non profit consumer credit counseling service in your neighbourhood. Get online or open your yellow pages to find one. Seek the guidance of friends and family members. Select a counselor, meet them in person to make sure they are right for you. Ask them on tips and advice on how to build a good credit history. If you are still lagging behind on your payments, credit consolidation firms will be able to set up a payment plan with your creditors. If money is an issue, select a non profit credit counseling service. They will offer their service for free or for a very low cost.
By: Bill Smiths
About the Author:
Ameri credit services provides credit counseling and credit consolidation [http://www.americreditservices.com] to customers. Visit us at [http://www.americreditservices.com] for free credit consolidation articles, free credit counseling tips and non profit credit management services.
