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Category Credit Score

May 20, 2008

The Need Of Credit Score Repair

It is a reality that many people are faced with the difficult task of credit repair. They may have found themselves overextended on their credit cards and have to make an effort to repair some late payments and some bad decisions when it comes to credit history and a bad credit score. Credit repair isn't as difficult as many people might think. It takes time, but it can be done.

You need to obtain a copy of your credit report from either one or all three of the major credit reporting agencies. The big three are Experian, Equifax, and TransUnion. They can be found quite easily on the Internet and will provide you with a copy of your credit report.

The FACT Act that was passed by Congress back in 2001 allows all consumers one free copy of their credit report per year dealing with credit score. For this, you will need to go to certain websites for more information. Sometimes one of the agencies will provide you with the one report for free, but you are best off to go to one of these websites.

However, if you are serious about credit repair, you will really need to obtain copies of all three credit reports. Creditors are not required to report to any of the agencies, and often they will just report to one. Having all three credit reports on hand will help you make repair to your credit more effectively and more thoroughly.

Here are another tips to improve your credit score:
If you make all or most of your liabilities in a timely manner, your credit score will elevate. Lenders look at your credit score as a way to weigh your credit worthiness. If your score is low, you will likely have trouble in acquiring new credit.

Lenders also look at your income, your debt status, the amount of credit you have available to you, and the manner in which you do your monthly payments. By paying in a timely manner, you will keep you credit score at an average or above average level- a stable rating. If you have had credit problems, you may want to make an extra effort to repair your credit and elevate your credit score.

Your future and your financial stability and capacity greatly depend to a large extent on your credit report and your credit rating. Get a copy of your credit report each year to make it sure that the information is exact and that your accounts are listed appropriately. Your credit score is a substantial component of your life and you should make an effort to maintain it good.

Article Source: http://www.articlesbase.com/credit-articles/
the-need-of-credit-score-repair-371795.html

About the Author:

To read more,visit http://www.creditdebtrepair101.info/

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Credit Repair - 5 Reasons Why You Should NOT Use A

May 19, 2008

Credit Repair - 5 Reasons Why You Should NOT Use A Credit-Repair Service!

Author: Helen Hecker

Every day, consumers pay huge sums of money to credit-repair service companies that promise a quick credit fix in an effort to handle disputes, improve their ratings and get a good FICO score. And almost all of the time, they find that their money is completely wasted.

Having good credit can help you get much better interest rates for a car or home loan as you may know. A bad credit history can leave you stuck with loans that carry sky-high interest rates and bad terms that are tough to get out of. At times some of your bad credit can cost you a needed job.

The offers you find may seem attractive but 'let the buyer beware'! Some legitimate credit-repair companies exist but many of the claims that you hear advertised are usually false and just a way to part you with your hard-earned money.

If you're thinking about signing a contract with any credit-repair service you should at least know your rights. Please be aware of the following five reasons why you should not commit:

1. If the credit-repair company charges an upfront fee - do not commit. Under the federal Credit Repair Organizations Act - which was enacted to take care of deceptive and abusive credit repair business practices - it makes it illegal for companies to charge consumers BEFORE they perform any credit-repair services. So it's against the law for credit-repair companies to seek payment from you until they have fully completed the repair services they have promised.

2. If the credit-repair company says it will, on your behalf, dispute information in your file, including items you know are correct, then beware. If the service's plan is to lie, or dispute what you know to be accurate information then it's not a reputable company. While YOU can dispute any information in your credit files that you think is incorrect, no credit-repair company has the right to remove any accurate, current information from anyone's credit report.

And if the information in your file is totally correct good or bad, only the passage of time can reduce the impact of any negative information. Negative information such as late payments can stay in your credit file for as long as seven years. And a personal bankruptcy filing can take as ten years. Any negative information on your credit scores lessens as the years pass by.

3. Before you sign any contract, the company has to provide you with a free copy of the FTC's "Consumer Credit File Rights Under State And Federal Law." These guidelines clearly outline what the service can and cannot do.

4. The company may tell you they can get you a new credit identity by applying for an employer identification number, or EIN, from the IRS (Internal Revenue Service.) They may tell you that you can use this number instead of your Social Security number. But if you don't own a business, then this isn't a legitimate way to repair your personal credit history. And it's a federal crime to get an EIN under false pretenses.

5. If the credit-repair service tells you not to directly contact any of the credit-reporting agencies or credit bureaus, you don't want to hire them.

Simply put, you can easily clean up your credit report and repair your credit report history yourself. Everything a credit-repair company promises they can do that is legitimate, you can do yourself. You do not need a credit repair service. Many are unethical and will just take your money and run. Some will even charge you a monthly fee for ongoing credit repair.

With these tips you should be well-informed before making a decision about hiring any credit-repair service. You can easily get your business or personal annual credit report online free. Why not order and get your newest free credit report from Equifax, Experian or Trans Union, the 3 credit bureaus or reporting agencies, do a little research and fix your credit history yourself? It's really not hard at all.

Article Source: http://www.articlesbase.com/credit-articles/
credit-repair-5-reasons-why-you-should-not-use-a-creditrepair-service-369882.html

About the Author:

Quickly find out how to get a free credit report online instantly, fix your own credit and get help with credit disputes. Lots of tips, advice and help from a caring credit expert. Get free credit repair info - go to http://www.FreeCreditReportInstantOnline.com

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What Your Credit Score Says About Your Credit Hist

May 08, 2008

What Your Credit Score Says About Your Credit History

Author: Jude Wright

You hear a lot on the news and in advertisements about your credit score and how to get credit reports for free. Of course, nobody gives something away for free. There is always some way that they are looking to make money off of you.

You don't have to answer one of these ads to get your credit report. You can write directly to one (or all) of the credit reporting agencies. These agencies are Equifax, Experian and Transunion. You can check with them at any time. It may cost you a few dollars but at least you won't have some third party company giving your credit information to others that are also trying to get you to purchase something...or worse.

You can get your report for free if you have been turned down for a loan or any kind of credit.

The companies that are advertising their services don't give you your credit score...just the credit report. No, they aren't lying to you...just not telling you the whole truth. If you want to get your credit score too, you will have to pay them for it. They are banking on the fact that you won't know how to get this information for yourself.

The credit report that you receive from the official agencies do give you your credit score with them. It also gives you a lot of other very important information about your credit. It shows which accounts you currently have open, a detailed history of all credit accounts you have opened and tells you who has checked on your credit within the past year.

Having people check your credit score too often will often flag it and lower your score. When you see this happening, contact the credit reporting agency (or agencies) and ask them to block that company.

Your credit score is represented by a score between 300 and 850. Naturally, the higher your credit score is the better you will look when you are trying to get a loan or other credit.

Review your credit report thoroughly when you get it. There are a lot of things that you might not be aware of. One is that you may find some credit accounts that are open that you do not use. It is recommended that you close them.

If your credit history is poor, you will need to take steps to improve it. Here are some things that you can do:

1. Never, ever be late paying a bill. Late payments are reported to the credit bureaus almost immediately and gives you a poor payment history.

2. Don't check on your credit score too often. This could indicate to the bureaus that you are looking for a loan and causes your score to go down.

3. Don't just make minimum payments on your credit accounts. This, also, lowers your credit score.

4. Do close all of the credit card accounts that you don't need.

5. Don't open any new accounts. If you do open a new account, be sure that you close the account that you are replacing with it.

You will hear, mostly by those companies that are advertising their services, that you need to check your credit reports often. But, don't let them scare you into checking them so often that it downgrades your credit score. A couple times a year or maybe once a quarter is all that is necessary. By keeping on top of your credit, you will be able to get that loan when you really need it.

Article Source: http://www.articlesbase.com/credit-articles/
what-your-credit-score-says-about-your-credit-history-368027.html

About the Author:

Go to http://FixingPoorCredit.com for more information on getting your credit under control.

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Improving Your Fico Score

April 29, 2008

Sorry, but the blog post could not be located.

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How To Raise Credit Scores Using Rapid Rescore

April 28, 2008

How To Raise Credit Scores Using Rapid Rescore

Author: Kate Rieger

Raise credit scores 50 points in 5 days! Sounds great right? Maybe...

A mortgage company or bank can offer a service called 'rapid rescore' to get something corrected off your credit report. Here is a brief walk through of this method to raise credit scores. The rapid rescore strategy requires proper paperwork. The proof must come from the creditor directly.

Some examples of corrections are:

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
a letter correcting (and raising) available credit balance
a letter changing the status of an account from 'delinquent' to 'current'
a letter to update high credit limit

Checklist

1. The creditor's letter must be signed and on their stationary.
2. It must include the creditor's contact name, phone number, your name and address, and a full or partial account number that matches the credit bureau entry number.
3. The letter must state what action the lender is doing to correct in the credit file -- like change the status of an account from 'delinquent' to 'current.'
4. Next the lender forwards the letter to the credit bureau, does a telephone verification and a new credit report is issued with an updated credit score.

The rapid rescore system works best if you are trying to raise credit scores fast to move up from one credit rating to another. Some mortgage companies offer a 'what if' scenario for rapid rescoring. Simply put, the account that is to be updated is entered into the 'what if' scenario and the program calculates a new credit score.

For example, your mortgage lender runs your credit report and your scores are 660, 680, and 710. Using a rapid rescore program, the results tell you what you can you do to increase your score 10 to 50 points. The system may recommend that you pay off some credit cards, pay off a collection, or other options. The main idea is to get you to the next level so the bank can offer better rates and options for your loan. This tool provides an educated guess on how to raise credit scores so it is not a guarantee of how the rescore will ultimately impact the credit score.

Your lender may simply evaluate how the proposed correction would impact the major score factors that are listed on your credit report. If that correction affects a major score factor, then its likely it would increase your credit score and worth pursuing.

Rapid rescore is not cheap. Typically it costs a lender $30 to $50 to run it against each credit bureau. The lender may choose to eat the cost or they may charge it back to the borrower. It is expensive but in most cases it works well for people looking to raise credit scores fast so they can pay 5% down payment instead of 10%, or avoid a high interest rate, or eliminate PMI or other costs related to mortgages.

Article Source: http://www.articlesbase.com/credit-articles/
how-to-raise-credit-scores-using-rapid-rescore-361238.html

About the Author:

Kathleen Rieger is a Certified Identity Theft Risk Management Specialist. Drop by http://www.extreme-debt-makeover.com/kentucky-credit-repair.html for a Free copy of her online Credit Rejuvenation course and to book yourself a consultation where she helps you to get to the closing table -- fast.