Improve Credit Score

Top 7 Tips for Repairing Bad Credit to Purchase or Refinance A Home

2006-12-20T09:29:00.000-08:00

Author: Eric Bramlett

Your credit report and credit score makes huge differences in your life, and in your finances. If you have a great credit score, your home, car, insurance, and more will cost you thousands less because you are deemed "credit worthy." If you have poor credit, you can be denied a home loan, refinance, and even auto insurance. Yet, most people have absolutely no idea what is necessary to improve their own credit score to accomplish their goals. If you follow these tips, you are sure to see your score improve.

1) Avoid Fee Credit Repair Services Everyone has seen the credit repair signs on the side of the road and the advertisers online promising to fix your credit - for a fee. Although there may be reputable credit repair specialists somewhere, I have never met one, and I have dealt with many "credit repair specialists." If you choose to enter into a contract with a "credit repair specialist" you will likely hear from them only once per month - when their service fee is due.

However, there is quality help available. Find a Realtor or Mortgage Broker who specializes in credit repair. The beauty of this arrangement is that your Realtor or Mortgage Broker will not earn their commission until you obtain the credit score necessary to purchase a home or obtain the refinancing terms you want. You will pay for results, not promises.

2) There's No "Magic Bullet" These same "credit repair specialists" will try to sell you on their own "magic bullet."
They will claim to have found a loophole in credit law that
either: 1) Allows them to successfully dispute your collections and have them erased -or- 2) Dispute the manner in which the collections were filed in order to have them erased.

Creditors typically are in the position to loan money because they are very organized, have long memories, and are up to date on credit law. It is possible to dispute credit charges, and it is possible to have legitimate collections removed from your credit report. However, this has one BIG problem: The collections will reappear on your report within a few months.

Your "credit repair specialist" may dispute your charge, at which time the creditor has 30 days to respond. If the creditor does not respond within 30 days, the collection is removed.
However, as soon as the creditor's reporting cycle again lands on your file, it WILL be reported, and it WILL reappear on your report. This is why you may find someone who claims to have had a good experience with a "credit repair specialist." If you speak with the same customer 2-3 months later, they won't have the same praise.

3) Borrow Money This may seem counter-intuitive, but it's absolutely essential. If you have bad credit, you will have to re-establish good credit in order for your score to go up. The only way to establish good credit is to borrow money. Borrowing does not necessarily mean putting yourself into debt. Do you need to purchase something from Best Buy? Put it on your Best Buy card. Do you buy gas on a regular basis? Apply for a new gas card and use it. Groceries? Use a credit card. The key is to maintain the same level of spending but to increase your use of credit.

4) Pay It Back On Time Now that you're borrowing money on a consistent basis, you have to pay it back in a timely fashion.
If you don't pay your bills on time, your score will go down - and fast. Timely, in this case, means no more than 30 days late.
That's the good news - just because your credit card company charges you a late fee doesn't mean that they've reported you late to the bureaus. Make it a habit of paying ALL your bills on the same day of the month - that way you only have to go down the list once and you'll ensure that you avoid any late fees, and any 30 day lates.

5) Decrease Your Revolving Credit Balances If you already have credit card debt, you need to take a hard look at how it's distributed. Ideally, every card will be below 35% of its limit, but it will also help you quite a bit to keep them under 50%.
You can accomplish this a number of ways. If you have money in the bank, pay the cards down - there's not a savings account in the world that will pay out the interest your creditors charge you. If you don't have the money to pay the balances down, ask your creditors to increase your limit - oftentimes, they will.
Finally, if you have one card maxed out and another with a low balance, transfer some of the balance from the maxed out card onto the low balance card - or open a new account and transfer part of the balance there. Austin Texas Real Estate

6) Open a New Revolving Line of Credit - Or Two If you don't have any revolving credit (credit cards) then it's time to open two accounts. If you have credit cards in collection, then you will probably have to get secured cards. A secured credit card will require that you deposit money with them in order for you to receive a credit card. This will feel like a debit card, but it's not. If you deposit $300 with your bank to receive a $300 line of credit, you actually have two separate accounts.
When you charge a balance to your line of credit, you will have to pay it back - the funds will not be deducted from the initial $300 you deposited. After you've opened your two lines of credit, use one for groceries and another for gas. Gas and groceries are two expenses that almost everyone has, and that almost no one will increase their spending on just because they are able to. Austin
Condos

7) Buy a House If you don't already own a home, you are probably working on your credit in order to purchase your home.
However, be very aware that your credit should skyrocket after you've made 4-5 mortgage payments on your new home. This means that you shouldn't worry too much about your interest rate - you should worry more about getting the approval on your home. Avoid a pre-payment penalty on your loan, and plan on refinancing your higher interest loan for a much better monthly payment about 1 year after your purchase. Austin Texas Real Estate

Credit scoring can seem very confusing and very intimidating.
Unfortunately, there are a lot of uneducated professionals who claim to understand the scoring models but don't. Find someone who specializes in credit repair and who has a vested interest in the success of your repair program. Follow these tips, give it some time, and watch your scores increase!

About the author:
Eric Bramlett is the Broker and co-owner of One Source Realty in Austin Texas. Visit Eric's Austin Texas Real Estate Guide, visit his Austin
Texas Real Estate company's website, & his Austin Condos & Lofts Guide. He has seen considerable success in real estate, and looks forward

Ways to improve your credit report

2006-12-16T22:39:00.000-08:00

Is it really essential to improve your credit report?

Even though credit score are three digit numbers but it has great importance in today's business world. To earn a good credit standing it is very much essential that one pays his/her dues on time. Regular and timely payment of dues ensures a healthy credit score history.

Many retailers and lenders entirely depend on credit report in order to run their business on credit. Any negative remark can directly affect your credit obtaining flexibility. So it is advisable that you must improve your credit report and score. If your credit report contains any negative remarks it becomes vital that you improve your credit score as quickly as possible.

Suppose you are thinking to purchase a car on credit. For this you will have to apply to different bank and money lenders. Bank lenders solely depend on your credit score to judge your financial position in the market. If you do not have a satisfactory credit score history, there is every chance that you will not be granted the necessary loan to buy the car. Similarly there can be different types of investment you would like to purchase. So for all this purpose it's very important that you maintain a healthy credit report.

Following are certain tips and guidelines that can help you improve your credit report.

� Make all your bills payment on time or before the due date. As any late payment can directly affect your credit report and simultaneously your credit score.
� Do not apply for credit every time as it may decrease your credit report rating.
� Maintain estimated balance on your credit. For instance your credit balance should not exceed 25%, as it is the usual credit limit.
� If you find any negative remark in your credit report, apply to know the true reason. Ascertain whether the information in your credit report is accurate or not.
� Maintain a free copy of your credit report.
� Do not open unnecessary accounts. Remember a zero balance account is also taken into consideration.
� As far as possible make sure that you avoid introductory offer on your credit card.
� Maintain good credit history.
� Check your credit report periodically at least twice a year.
� Repair your credit timely for any credit report service.

Isabella Rodrigues writes for free-instant-credit-report.info,
offering the latest information on credit cards, visit them today for more best
buy credit cards.

Visit today: http://www.free-instant-credit-report.info

This article is free for republishing
Source: http://www.articlealley.com

How To Improve Credit Score The Easy Way

2006-12-15T07:08:00.000-08:00

By Dean Iggo

With the plethora of consumers in debt these days, many are scrambling to find easy, quick ways how to improve credit score. Credit scores are very important in building a strong credit history that will vouch for you when you want to purchase a house, get a job, or rent a car just to name a few. If you want to clean up your credit score, it’s important to adhere to the following tips to get your credit score back on track. Remember, having credit is a responsibility that you will pay back the money you’ve charged, and if you don’t you can find yourself in serious debt.

First and foremost, it’s important to annually review your credit reports from each of the three major reporting agencies. This will allow you to catch and correct any mistakes you find regarding your credit score. It’s very important that you do this early, especially if you’re planning on applying for a loan because changes can take up to three months or more to finally be corrected. Secondly, you’ll want to ensure that you are consistently paying your bills on time, every time; in full if you can manage. These tips are essential to how to improve credit score.

You may wonder how to improve credit score if you have outstanding balances on your credit cards. Well, it’s always best to reduce your balances as quickly as possible in order to clean up your credit score and bring your balance to 25% or less of your total credit limit. These tips are absolutely imperative to follow if you want to improve your credit score. After following these tips for awhile, eventually you’ll be debt free and look more trustworthy when businesses or individuals view your credit score. Take the time to clean up your scores now for a debt free life later.

Dean Iggo is the webmaster of www.ezcreditscore.net - Learn how to repair your credit score quickly and easily with our hints, tips and resources.

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How To Use A Secured Credit Card To Repair Your Credit

2006-12-14T07:07:00.000-08:00

by Ryan Cote -

If you have ever had credit cards, paid a bill monthly, or obtained a loan, you have a credit rating. When you make payments to a creditor, they report these payments to credit reporting agencies that compile your credit report and track your credit history. If you miss a payment, or even worse, your debt gets sent to a collection agent, this affects your credit rating negatively, and may prevent you from obtaining more lines of credit when you need them in the future.

As soon as you realize you are in this situation, it is crucial that you immediately begin to make an effort to repair your credit rating. To most people, this seems like a difficult thing to do, but doing nothing to repair your credit will only prolong the damage for up to seven years. Until your credit is better, you will find that you are barred from any type of loans or even activities that require credit, such as renting a car.

One way to repair your credit is to obtain a secured credit card. You may wonder how this is possible with bad credit, when you will most likely be declined when filling out a credit card application. However, without a credit card, you will have a hard time proving to creditors your responsibility in making payments on time.

Try a secured credit card. Secure credit cards are marketed specially toward individuals with poor credit. These credit cards work when the customer applies a deposit equal to their credit limit. For example, if you make a deposit of $100, your credit limit will be $100. The credit card company then be use your deposit toward any balance on the credit card resulting from late payments.

This type of credit card is risk-free for the company that issues it, because they can always deduct the balance from your deposit, so it makes sense to issue these cards to people with poor credit. One drawback to secured credit cards, however, is the annual fee that most regular credit cards don’t charge.

After you have obtained one of these secured credit cards, use it sparingly but regularly, and make sure you mail all of your payments on time. This will enable you to slowly, but surely, repair your credit. You will demonstrate to your creditors that you are trustworthy, responsible, and pay your bills on time.

Taking steps towards repairing your credit will eliminate the risk of keeping your credit rating “poor” for up to seven years. However, after seven years the black marks on your credit will finally be taken off, so waiting is always an option. If waiting is not an option, take the necessary steps toward credit repair. Obtain your secured credit card, use it responsibly, and reduce the seven-year sentence of bad credit.

For more free credit repair information like this article, please visit: Free-Credit-Repair-Advice.com

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Easily Raise Your Credit Score

2006-12-13T10:19:00.000-08:00

by Martin Lukac

When it comes to your credit score, you can always work to increase it. Today's world seems to revolve around your credit score. It affects so many parts of your life -- your apartment, your employment, your insurance premiums and your ability to borrow money. A good credit score enables you to purchase a home, get a cellular phone, pay less on your interest rates and easily find credit.

Your credit score is also frequently called a FICO score. The score tells lenders what type of borrower you are. If you have a high score, it says that you pay your debts on-time and as promised. A low score says that you are at risk for not paying your debts. FICO scores range between 300 and 850.

Credit scores reportedly focus on the last two-years of your credit report. They will consider all of your information, but the main focus is on the most recent. This gives you the ability to increase your score fairly quickly. Yes, it still can take up to a year to see great results, but they are well worth it.

Your credit score is based upon:

Payment History -- 35%
Availability of credit and usage -- 30%
Duration of open accounts with creditors -- 15%
Credit inquiries -- 10%
Composition of your credit file (the type of debts you have) -- 10%
The good news is that while it takes some time, the steps to improve your credit score are quite simple.

Start will getting a copy of your credit score from each of the three main credit bureaus: Experian, Equifax and TransUnion. Review each report for inaccurate information. Most people will find a mistake on their report at least once in their lifetimes. These mistakes can lower your score and cost you a lot of money in interest, so it is important to make sure your report is accurate.

Once your report is accurate, start paying your bills on time each month. This is the main thing that will raise your score. Late payments will lower your score faster than anything else. You have to pay on time, every time.

Take steps to lower your debt as much as possible. You want to have at least 50% of your credit unused. That means if your have a limit of $20,000 on your credit cards, you don't want any more than $10,000 charged on them. In fact, lower that as much as you can. The less you owe, the higher your score.

Pay on time and pay off as much as possible. These two methods will help you raise your score easily. Not only will it increase your score, but it will save you lots of money. You won't have late fees to pay, you will have fewer bills to pay towards debt and you will get better interest rates from lenders. There are many advantages to having good credit, and anyone can have good credit. It just takes a little work and a little time.

Martin Lukac http://www.MartinLukac.com, represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com

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5 Ways To Raise Credit Score

2006-12-12T07:33:00.000-08:00

By Gary Gresham

It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.

There are more than 30 million people in the United States that have credit scores under 620 and if you’re probably wondering what you can do to raise credit score for you.

Here are five simple tips that you can use to raise credit score.

1. Get a copy of your credit report

Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information.

Your credit report should come from the three major bureaus: Experian, Trans Union and Equifax. It's important to know that each service will give you a different credit score.

2. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.

Missing just one months payment on anything can knock 50 to 100 points off of your credit score.

Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.

3. Pay Down Your Debt

Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn't matter whether you pay off that balance a few days later or whether you carry it from month to month.

Most people don’t realize that credit bureaus don’t distinguish between those who carry a balance on their cards and those who don’t. So by charging less you can raise credit score even if you pay off your credit cards every month.

Lenders also like to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score.

4. Don’t Close Old Accounts

In the past people were told to close old accounts they weren’t using. But with today's current scoring methods that could actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy.

If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.

5. Stay Out Of Bankruptcy

Bankruptcy is the single worst thing that will destroy your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.

Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.

The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.

It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.

Gary Gresham is a mortgage loan officer and the webmaster for http://www.credit-repair-facts.com He offers you credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles go to: http://www.credit-repair-facts.com/articles_1.html

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3 Ways to Improve Your Credit Report and Credit Score

2006-08-21T11:16:00.000-07:00

By L. Sampson

If your credit score isn't very high--and your credit report has a few black marks--making some improvements can mean a big difference in loan approvals and credit card interest rates. Fortunately, it's easier than you think to improve your credit history. Just follow these three simple steps:

1. Get a copy of your report

It's hard to improve your credit report and credit score unless you actually know all the information that's being reported about you! So obtain a free copy of your report by either contacting the three major credit reporting bureaus or searching for an instant copy online. The online version is the easiest and fastest because you simply fill out the form with your name, address and similar information, then click the "submit" button to get your results immediately. Just remember to print them so you have a hard copy of your report.

2. Look for red flags

Phrases such as "non-paying," "charged off," or "default" are red flag signs that could be bringing down your credit score. Other negative notations include "past due," "unpaid," "delinquency," and "collections." All of these items indicate that you either haven’t been making payments on time, or you haven't been making payments at all. Words like "repossession," "bankruptcy," or "foreclosure" are even worse, because they tell the creditor that you've allowed your delinquency to go for so long that someone had to take action.

3. Take action

If the black marks on your credit report are erroneous, contact both the creditor and the credit reporting agency to have the mistake fixed. If you actually have an account that's past due or delinquent, your best bet is to start making payments immediately--and keep making them every month. If you have a bankruptcy filing or foreclosure on your report, now's the time to start rebuilding your credit history by obtaining some secured credit and making regular, on time payments.

You can improve your credit report and credit score if you're willing to take the time to make changes. Errors and mistakes are typically relatively fast fixes--expect to have them removed from your report in 60 days or so. Legitimate negative items, however, will take a little longer to repair.

Visit Credit Report Sense to view our Recommended Credit Repair Services online. Also, visit Credit Report Sense for more Credit Repair Advice.

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Bad Credit 2nd Mortgage - Understanding Second Mortgages

2006-07-21T09:36:00.000-07:00

By Carrie Reeder

Prior to applying for a second mortgage with bad credit, homeowners should weigh the advantages and disadvantages. Although 2nd mortgages serve a useful purpose, this option is not always the best. By acquiring a 2nd mortgage loan, homeowners will create an additional financial burden, which may serve to their benefit or detriment.

What are Second Mortgages?

When a homeowner applies for a second mortgage, they acquire a loan which uses their equity as the collateral. Second mortgages can be obtained through the original mortgage lender, or owners may select a new lender. Regardless, the property acquires a second lien. When this occurs, two monthly payments are submitted each month. One payment is applied toward the first lien, whereas the second payment is paid to the second lien holder.

Reasons to Apply for a 2nd Mortgage

Several reasons justify a 2nd mortgage. In fact, homeowners with a low credit rating may contemplate a 2nd mortgage as a means of improving credit. When homeowners borrow money against their equity, the lump sum can be used to repay debts. Thus, within a short period, homeowners can achieve their dream of living debt free.

Credit cards have unreasonably high rates, which makes repayment challenging. On the other hand, second mortgages have low fixed rates. Even though debts are not immediately wiped out, homeowners are given the opportunity to repay debts within a reasonable timeframe. On average, 2nd mortgages can be repaid within three to seven years.

How Second Mortgages Can Improve Credit Score?

Although a 2nd mortgage will not result in an immediate credit score boost, the long term effects are worthwhile. Once credit accounts are paid in full, and homeowners begin making regular payments toward reducing the balance on the 2nd mortgage, a noticeable credit score increase will begin to occur. The key to boosting credit rating is keeping low balances, paying bills on time, and avoiding late payments. Here is a list of recommended Bad Credit Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

After using the funds from a 2nd mortgage to repay credit cards, many make the mistake of closing the credit accounts. However, if hoping to boost credit rating, closing older accounts will have a counter-effect. For this matter, never close accounts. If unable to use restraint with credit, cut or destroy the credit cards.

ABC Loan Guide wants to help you find the best lender for a Second Mortgage Online, or obtain more information about a 2nd Mortgage with Poor Credit

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Debt Consolidation Home Equity Loans – Lower Bills and Improve Credit Score

2006-07-18T12:34:00.000-07:00

By Carrie Reeder

Many lenders offer debt consolidation personal loans. Yet, getting approved for these types of loans is not an easy task. For starters, banks and credit unions require applicants to have a high credit rating and collateral. Because of strict lending requirements, few people are able to qualify. Fortunately, owning a home increases your options for eliminating debts.

Benefits of a Home Equity Loan

For most people, the only alternative for eliminating debts is acquiring a large sum of money. This could be an inheritance, settlement, etc. Some homeowners opt to refinance an existing mortgage and use the cash obtained at closing to reduce debts. Fortunately, there is an easier way to tap into your home's equity that does not involve paying closing fees.

Home equity loans are a popular choice among homeowners hoping to reduce or eliminate unnecessary consumer debts. These loans are easy to qualify for, and funds can be received within a few days. Furthermore, home equity loans do not entail fees, which make these a better option when compared to refinancing.

There are many home equity loan uses. Common uses include home repairs,
vacations, and debt consolidation. Yet, some homeowners use these loans
to pursue long-term financial goals such as investing in real estate,
starting a business, or planning their retirement.

How to Eliminate Debts with a Home Equity Loan

Using a home equity loans to reduce debts is easy. Once the funds are received, homeowners simply use the money to payoff credit cards, personal loan, auto loans, etc. Paying off credit balances is a great way to quickly improve credit score.

If using a home equity loan options to eliminate debts, you will not become debt free immediately. However, home equity loans have low, fixed rates. This feature makes it easier to repay the loan.

Finding a Home Equity Lender Online

Many people obtain a home equity loan using their existing mortgage lender. However, if you are hoping to obtain the best rate, shop around and compare various home equity loans.

Visit www.abcloanguide.com to find a list of reputable online lenders for a home equity loan after bankruptcy or to find a list of reputable online lenders for debt consolidation home loans. If you have internet access, complete an online home equity loan quote request. These no-obligation quotes allow you to compare many offers and terms before settling on a particular lender.

View our recommended debt consolidation home equity loan lenders online.

Carrie Reeder owns ABC Loan Guide, an on online resource with information about bad credit home mortgage companies online.

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You Can Repair Credit Score Issues

2006-07-13T09:25:00.000-07:00

By Patsy Rose

The desire to repair credit score issues is a common one. Most banks, mortgage companies, auto finance and credit card companies use something called the FICO score or another “credit number” to evaluate an individual’s creditworthiness. So, if you are looking to buy a new home, car or just want a credit card with a low interest rate, you will definitely benefit if you can repair credit score issues. The desire to repair bad credit is also common. The importance of credit for most people cannot be overstated. Ideally, one would hope to repair credit score issues and repair bad credit at the same time. Credit report items that lead to bad credit lead to lower credit scores.

If your credit score is below 560, then you will benefit from any efforts to repair credit score issues. Those people with a credit score lower than 560 are charged higher interest rates by lenders. They are more likely to have to pay security deposits and their insurance premiums are generally higher. It may even prevent them from getting a better job. It is important to note that you cannot repair bad credit or repair credit score issues if you are currently behind on your payments. You must resolve these issues first, by seeking credit counseling or budgeting advice.

There are several things which can affect your credit score. These are items that show up on your credit reports and must be removed to repair bad credit. One item is payment history. Late payments will lower your credit score and efforts to repair credit score issues will attempt to remove these items from your credit report. There is much inaccurate information on the average person’s credit report and it is often difficult to get the credit bureaus to correct this information. Even if a consumer has been the victim of identity theft, there are certain procedures that must be followed or the credit bureaus may be uncooperative. All inaccurate information must be removed from an individuals credit reports in order to repair credit score ratings or repair bad credit scores.

The amount that you owe is also a factor used to determine your credit score, but not always the most important factor. Sometimes lenders will look at the amount you owe and compare it to your income to determine if you will be able to make monthly payments. But, sometimes if your credit score is high enough, lenders do not even look at this issue which is how some people get in credit trouble in the first place. It is important to remember, even after you repair credit score issues, not to borrow more than you can afford to repay; not to take on a monthly payment that you cannot afford.

Efforts to repair bad credit score ratings also include having outdated information removed from your credit reports. Companies are quick to report late or delinquent accounts, but it is up to you to have these issues removed from your credit report when they have been resolved. If you have not been vigilant over the years in viewing your credit report and most people are not, then you may have many old resolved items on your reports. Removal of these items will help repair credit score ratings.

There are many companies which offer to repair bad credit. Some companies cannot handle every legal issue that they may encounter. A law firm that specializes in credit repair can. They can help you repair credit score issues and turn what was once bad credit into good credit, making your life just that much easier.

The writers and editors of the Credit Repair Blog are committed to providing accurate information that can help you repair credit score issues. Visit us at http://creditfixnow.blogspot.com

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Improve Financial Health Through Bad Credit Debt Consolidation

2006-07-11T12:44:00.000-07:00

Improve Financial Health Through Bad Credit Debt Consolidation
By Alex Jonnes

People tend to fall in debts in these days of easy availability of finance and liberal use of credit cards and as a consequence are labeled as having bad credit. Primary concern of these people is to eliminate debts as early as possible. An effective and popular way of eliminating previous debts, bad credit debt consolidation makes available required finance at easy terms and conditions to pay off debts. Lenders provide loan for bad credit debt consolidation taking into account different financial backgrounds of borrowers.

Borrowers are called having bad credit for various reasons. Such borrowers may have filed for bankruptcy; they may have faced payment default cases and county court judgments. This adverse credibility is reflected in borrowers’ credit score. FICO credit score ranges from 300 to 850. A bad credit is when credit score falls to 580 and below while a score of 720 and above is considered as secure for a loan offer. Though it is obvious that you have bad credit and your credit score is in negative territory, still before going for bad credit debt consolidation, it would be better if efforts are made in improving credit score. Lenders may relax terms and conditions if seriousness towards clearing debts is evident. Pay those easy debts for credit score improvements.

Bad credit debt consolidation is opted for clearing all debts in one time payment. The borrower takes loan that is at least equal to the amount of debts and pays off them either himself or through the new lender. There are many advantages of bad credit debt consolidation besides being debt free. Normally debts are of higher interest rate and therefore it results in higher monthly outgo towards installments. Since bad credit debt consolidation is done by taking a fresh lower interest rate loan, lots of money may be saved. As an alternate to monthly installments, borrowers can take a lump sum amount and clear debts in short period to save money on interest. Another method to lessen monthly installments is to pay interest only during debt consolidation loan period and pay balance at the end.

At what interest rate loan for bad credit debt consolidation can be availed will depend on repaying capacity of the borrower. Though loan for debt consolidation is generally offered at lower interest rate, still if he produces proof of sound financial standing or any source of steady income, lender may considerably reduce interest rate.

The biggest advantage of bad credit debt consolidation is that it enables borrowers in improving their credit score. Every monthly installment towards clearing off debts is recorded in credit report of the borrower.

Prefer applying online as this way you get numerous loan offers from as many lenders. You can easily pick up suitable loan package that has lower interest rate.

Bad credit debt consolidation enables you in eliminating all debts at low cost and in turn it improves credit score and credibility in the eyes of lenders. Make sure to pay monthly installments in time to avoid falling in yet another debt trap.

Alex Jonnes is associated with Easy Debt Consolidations. He is Masters in Business Administration and writes on various finance related topics. To find Debt consolidation loan bad credit, bad credit debt consolidation, low interest debt consolidation loan visit http://www.easy-debt-consolidations.co.uk

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Increase Your Credit Score

2006-07-09T18:37:00.000-07:00

Increase Your Credit Score by Martin Lukac

Over 30 million Americans have less-than-perfect credit, but it is realy quite simple to increase your credit score.

But there is no quick fix. Repairing a damaged credit score takes time. There are plenty of easy ways to raise that score, but they all take time.

You need to know what your credit rating is. This will be a number between 300 and 850 that reflects your creditworthiness. There are many factors that go into this score, including your payment history and debt to available credit ratios.

Start with your current credit reports. If everything is positive on them, you will most likely have a fairly decent credit score. You can receive a free credit score from each of the three credit reporting agencies every year. Go to www.annualcreditreport.com for more information on how you can get your credit report for free.

Your credit report will not come with a credit score, you must purchase this separately. It will usually cost you around $5 or $6 for each report. Each agency can have different information on their report. And each uses a different scoring method for your credit score. Don't be alarmed if you see as much as a 50 to 100 point difference between scores. This is normal.

Know that you know your score, you can work on improving it. The most important thing you can do to increase your credit score is paying your bills on time. By paying your bils on time, you can raise your credit score significantly over the next several years. You must make these payment on time to raise your score. It is the easiest and simplest way.

Missing even two bill payments can have a terrible effect on your credit score. Your recent history is far more important to lenders than your history five years ago. Even if you have pristine credit, missing a few payments can drive your score drastically down. Some credit card companies are using missed payments on your credit report as a reason to immediately raise your credit card interest rate. You have to pay your bills on time.

You can also improve you score, and your money situation, by paying off some of your debt. The less debt you have, the higher your credit score will be. You need to let the zero balance on a card sit for over a month. The fact that you might pay off the entire balance each month is usually not reflected in the balance reported to the credit bureau. The amount you charge each month will be seen as a balance on your report, therefore, raising your credit score.

There is a lot of debate about closing old credit card accounts. Many financial experts will tell you to do so. Some say that open accounts are an invitation for identity theft. Other advisers say that closing old accounts lowers the amount of credit you have available. This makes the outstanding balances you have with other accounts much closer to the maximum credit amount you have. This can lower your credit score. Plus, if you close really old accounts, you are shortening your credit history, which negatively affects your score.

While often credit counseling is reported to the credit bureaus, it does not factor into your credit score. Plus, once you complete the program, most agencies will remove any references to credit counseling from your report. But be aware that any credit counseling firms that work in debt settlement will negatively impact your credit score.

Anytime you pay less than what you owe, you will see this impact on your score. You should also try to avoid bankruptcy. This will move your credit score into the very bad level, meaning that future reasonable interest rates will almost be impossible. You will still be able to get credit, but you will pay dearly for it. The interest rates will be absolutely outrageous.

There are no quick fixes, but the fixes aren't difficult. Pay on time and reduce your debt. You can increase your credit score in two simple steps. Good luck.

About the Author

Martin Lukac (http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Mortgage Loan - Get a Better Interest Rate by Improving Your Credit Score

2006-07-07T21:08:00.000-07:00

By Louie Latour

Everyone wants a better interest rate for their mortgage loan. Wanting and getting are two different things; here are the steps to take before applying to ensure you get a better interest rate for your mortgage. A good credit score can improve your financial outlook. Improving your credit score requires patience and a dose of financial responsibility. Here is what you need to improve your credit score and qualify for a better mortgage.

Get in the habit of checking your credit reports at least once per year. Recent legislation in the United States requires the credit reporting agencies to provide you with a free copy of your reports once per year. You need to carefully review these reports for errors. If you find errors dispute them with the individual credit agency and the creditor as soon as possible. Having errors on your credit damages your credit score and the interest rate you qualify for.

Make Payments on Time<

Late payments damage your credit score. Mortgage lenders like to see that you have a history of on time repayments. Before you start shopping for a mortgage loan make sure you have a minimum of six months with zero late payments on your credit history.

Use Debt Responsibly

Keep the balances on your credit cards low. Don’t keep open credit accounts just for the sake of having them. Department store credit accounts are an example of accounts you should pay down and close.

Protect Your Credit

Do not make major purchases before applying for your mortgage and restrict access to your credit records. This means not allowing lenders to run your credit until you have selected the winning mortgage loan. Too many credit inquires on your record in a short period of time can damage your credit score.

Be Patient

Rome was not built in a day; you are not going to fix your credit problems overnight. With a little persistence you can see positive gains in your credit score in as little as six months. Every little bit will help you qualify for a better mortgage loan. To learn more about improving the mortgage you qualify for, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: "Mortgage Refinancing - What You Need to Know." This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.

Claim your free guidebook today at: http://www.refiadvisor.com

Minneapolis Mortgage Refinance

Article Source: http://EzineArticles.com/?expert=Louie_Latour

10 Ways To Boost Your Credit Score

2006-07-06T11:59:00.000-07:00

10 Ways To Boost Your Credit Score
By Dave Czach

1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage company or a bank. If you apply for a home
loan and find errors on your credit report, request the loan
officer to conduct a Rapid Rescore. But don't mistake it for the
credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the account is not your
account, a letter stating the account was paid satisfactorily,
a release of lien, a satisfaction of judgment, a bankruptcy
discharge, a letter for deletion of collection account or any
relevant evidence.

This is the same documentation a bank or mortgage company would
require for the credit accounts anyways. The difference is, now
you can improve your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about $50
per account.

2. Deleting Negative Credit

This is the infamous area where you've heard of all the scams.
Credit repair clinics charge "an arm and a leg" and promise a
clean credit report. Sometimes even a new credit profile! People
spending hundreds, or even thousands, of dollars for something
they can do themselves.

Removing errors is simple. Deleting negative credit that is
accurate requires advanced methods. But that is not the scope
of this report. So I'll focus on the deleting the negative
errors.

Credit report errors easily disappear by using a simple dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau's job easier and
you will get faster results.

If you don't have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau's have a "reasonable time" to validate your claim. They
will contact the creditor for verification of your dispute. Then
the account will be reported accurately - or deleted. It has been
generally accepted the "reasonable time" to complete this task is
30 days.

If you're not the do-it-yourself kind of person. Or don't have
the time. You could hire someone who is very economical.

3. PiggyBack Someone's Credit

This is a fast and great little credit score booster. But it
requires a very trusting relationship. Simply put, someone else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their payment history is now
reported on your credit report too. If they have perfect credit,
now you have a perfect account.

To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card account with a
perfect payment history and a balance of only 50% of the credit
limit. Wouldn't you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire account history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts - especially installment accounts. Your credit
score could sky-rocket!

The challenging part? Finding the trusted person. Since you already
have a low credit score and bad credit, how eager will someone be
to make you a cardholder? Even your parents don't want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or PIN or any information. Since the
bills and all account information is still mailed to the trusted
person's address, you won't know anything about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques
around. It used to be accomplished with secured savings accounts.
But now, it's much easier with secured credit cards. In fact,
I've used this method myself.

Here's how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash advance of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash advance of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash advance of
70% of your credit limit.

Open a new checking account with the final cash advance. Use this
account only for making payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new perfect payment
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be patient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don't, your credit score decreases. EVEN IF ONLY 30 DAYS
LATE!

That's right folks. For some reason people think, "I'm only a
few weeks late. What's the big deal?" Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a simple interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I'm certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn't it? But it is not as
transparent as you might think. Remember, we're playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here's what you do...

Never pay off your revolving debt in it's entirety! Isn't that a
surprise? Think about it. Your credit score is a reflection of
your ability to manage your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you manage
it? You don't. It no longer exists. And you cannot manage what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your ability to swiftly pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you're over extended to begin
with. Pay off what's necessary to make your credit profile look
great. Then manage the remaining credit.

7. Don't Close Accounts

Even if you pay off revolving debts, do not close the account.
The longer an account is open with no negative reports, the
better it reflects in your overall credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts suggest a balance of 30% of your credit limit. That's
ideal. But you can go as high as 70% and still maintain a
healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This usually drops your credit score
slightly. When you have fresh credit, there is no track record
how you will manage (or pay) this account. Therefore, it's a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.

Here's what you do: obtain credit for your housing, transportation,
college or continued education and 3-5 credit cards. That's really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a "variable" monthly
payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid
on time and you will witness your credit score climb to great
heights.

10. Don't File Bankruptcy or Foreclosure

Here's the most obvious advice: Don't file for bankruptcy or
foreclosure. These stay on your credit report for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure account becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It's not easy. But it's possible. See the
advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.

© 2004 David Czach.

-------- Editor's Note ----------

Dave Czach has 12 years experience in the mortgage business and
a Bachelor's Degree in Real Estate. He can be reached at
http://myLoanHero.com/go.cgi/daveczach.

3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

2006-07-05T12:38:00.000-07:00

In Less Than 30 Days.

"What can you do to increase that set of three numbers on your
credit report that can be so important with your financing?"

I came across this question as I was surfing discussion groups
the other day. Check out my answer:

Dear Friend,

Here are 3 steps I used to take my credit score from 592
(horrible credit) to 762 (perfect credit) almost overnight.
If you’re interested in improving your credit rating quickly,
you’ll find this story helpful:

In 1995 I made a decision that would ruin my perfect credit
history. I quit my salary job to become an insurance salesman.
The job paid commission only. Within a few months I lost
everything - house, car, credit rating and my self respect.

By the end of 1996 I was living with my mom, all my credit
accounts were severely past due, and I was paying 22%
interest on a broke-down green Geo Storm...I was a real loser.

Then, in 1997, I became a banker. I didn’t know it at the time,
but this would turn out to be the break I needed to eliminate my
credit problems forever.

During my seven years as a banker, I came across several
legal and highly effective ways to improve my credit rating.
As a result, I was able to increase my credit scores by an
average of 170 points.

Here’s what I did:

Step #1:
After spending hundreds of dollars on credit repair services that
didn’t work, I found out how to get negative accounts removed
on my own.

Basically, I wrote letters to the collection agencies requesting
proof that the accounts were mine. 89% of the time they had
no proof that the bad accounts belonged to me. So I was able
to get them deleted from my credit file.

Step #2:
I opened new accounts with high credit limits and kept the
balances low.

I discovered that if you keep your available credit limits high and
only use 10% to 30% of the credit you have available, your
credit score will improve dramatically.

Step #3:
Next, I added accounts with years of perfect payment history to
my credit file. This step took my credit score from 647 to 762.

While you can certainly add seasoned accounts to your credit
file for free, there are companies that claim they can do it for
a fee.

The problem is, they charge between $2,000 and $2,500 per
account. If you want a 700+ credit score you’ll need 3 to 4 of
these accounts. That equates to a cost of $6,000 to $10,000.

(You can conduct a search on your favorite search engine for
companies that offer this service.)

While there are several highly effective steps you can take to
increase your credit scores by as much as 200 points, these
are the main ones...And here’s the good news: Each step can
be completed in less than 30 days.

By Hartley W. Pinn, Jr, CEO, http://www.AtBalanceCreditRepair.com
Revealing the insider credit secrets you can use to increase
your credit scores by up to 200 Points.

For more information please visit:
http://www.AtBalanceCreditRepair.com/credit/8

Article Source: http://EzineArticles.com/?expert=Hartley_Pinn

Improve Credit Score

2006-06-09T07:45:00.000-07:00

Improve Credit Score

If your credit score has taken a downward spiral then Credit Secrets may be just what you need to improve your credit score. If you are trapped in a never ending battle with bad credit, to much debt and money management mistakes and need help breaking free from these financial headaches then Credit Secrets can set you free.

Did you know that you can improve your credit score for free? Credit Secrets will show you how. Follow Credit Secrets proven formula and improve your credit score quickly and easily. With an outstanding credit report you will easily qualify for any loan or credit application you wish.

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Improve Credit Score

2006-06-07T21:04:00.000-07:00

Improve Credit Score

If you are thinking about getting a loan of some sort, such as a mortgage or car loan, then it is important that you check your credit score. If your score is on the low side then there are ways to improve your credit score. The reason you will want to improve your credit score is to try and get the best possible deal on your loan you can. A good credit score will allow you more felxibility when choosing a loan and will always result in a lower interest rate. If you can improve your credit score it will save you money in the long term. There are ways to improve your credit score but it's important that you understand how the credit reporting agencies work.

The three big credit agencies normally score credit between 340-850 with anything over 700 considered very good credit. If you credit score is in the 600-700 range it is still in good shape but once it starts falling below 600 you need to seriously think about working on improving it.

There are five categories that credit agencies look at when they calculate your credit report score.

1. Your payment history: This includes such things as collections, ontime payments and past due accounts.
2. How much you owe: Here they look at all your accounts, whether they be mortgages, car loans or credit cards.
3. How long your credit history is: This is the culmination of all your past credit
history including how long you've had accounts and the activity within your credit accounts.
4. What kind of credit you have: Mortgage, credit cards (revolving), car loans, etc. You want a mixture of these for a better score.
5. Any new credit: How much credit have you recently applied for and been granted. They will also look at how many enquiries have been made concerning your credit score.

These are all issues you will need to deal with if you want to improve your credit score. There are many resources out there to do this, such as lawyers and credit repair specialists, but most of the time you can improve your credit score on your own without spending any money.

Which ever route you decide on using to improve your credit scoret, with professional help or on your own, it is important that you do everything you can to improve it and keep it at a high level because it will save you money in the long run.

Improve Credit Score

Improve Credit Score

2006-06-07T09:40:00.000-07:00

Improve Credit Score

Improve your credit score without paying for expensive lawyers or credit repair specialists. With the right system and information you can improve your credit score starting today.

Improve Credit Score

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