creditguide's Blog

Author: Cornie Herring

Credit score is not just a number. It is a measure of your financial capability and healthiness. It can affect you everything from whether you qualify for a loan to the approval for an insurance application, up to whether an employer will hire you. If you do not have a good credit score, you must make a plan to improve it, else it can be costing your dearly.

When you apply for a mortgage, you definite want a package with the lowest interest rate possible. A mortgage term may get up 30 years, for any extra percent in interest rate can cost you pay more in the total interest of the loan. According the MyFICO, a division of Fair Isaac, a person with credit score between 720 and 850 might get a 5.922% rate on $200,000 mortgage with a 30-year fixed interest rate term. As compare to a person with credit score between 675 and 699 who only can get the best rate at 6.584% on the same loan. The monthly payment for the person who gets 5.922% is $1,189 whereas the 2nd person who gets 6.584% of interest rate needs to pay $1,275 a month; If you calculate the total interest pay over the life of the loan, the first one is $228,072 and the second one is $259,074. It is a $31,002 different. Do you see how much it will cost you if you have low credit core?

Do you know that an insurance company may reject your application just because you do not have good credit score? Some insurance companies use your credit report information to predict your likelihood of filing an insurance claim and the amount of the claim. Based on the risk factor analysis, the insurance company will determine the amount of premium they will charge on your insurance protection plan. You will get a good premium rate if you have good credit score. Bad credit score will cost you more in paying your insurance premium. That's why you need to improve it if you do not have good credit score.

Although credit scores are usually associated with getting loans and credit cards, they also can be used by employers to evaluate you capability for a job, especially if it is a finance related job. Your credit score will serves as a general measure of responsibility and organization. Many employers believe person will higher credit score is able to mange their financial better than the person who has lower credit score; hence the person with higher credit score will also able to manage their job and be more responsible at their job position. This means that you can potential fail to get a job just because you have low credit score.

The summary is a high credit score always enjoy more benefit in term of lower interest, more choices of attractive loan packages, lower premium on insurance coverage, higher odds of getting hire for a job application. Nowadays, credit score is becoming more important as many private and public organizations are using the credit score stated in credit report to evaluate a person before they approve for any application, offer a job, approve a credit card application & etc. It is important to ensure you have a good credit score, and if not you must put in place a plan to improve.

Article Source: http://www.articlesbase.com/credit-articles/
credit-repair-tip-why-you-need-to-improve-your-credit-score-375627.html

About the Author:

Cornie Herring is an author who writes on various finance related topics. To find Credit Repair Information, Credit Counseling Services and other debt solutions visit http://www.debt-consolidation-1stop.info.

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
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I'm interest to publish any useful articles.
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Author: Jim Kemish

The Invisible Threat

Are you aware of the errors on your credit report? Do you know what to look for? Most people are under the impression that the information on their reports is correct if it looks familiar. Unfortunately, a cursory glance through your reports in search of unfamiliar information is virtually guaranteed to miss a significant number of errors. Effective credit repair requires a thoughtful and informed effort and should not be taken lightly. Over 100 million Americans have errors on their credit reports serious enough to cause them to pay premium interest rates on every dollar they borrow. The cost of credit reporting errors can be significant. Can you afford to throw money away unnecessarily?

Looking Under the Hood

Have you ever had car trouble and lifted the hood to locate the problem? Unless you are a mechanic you probably didn't achieve much. The first step in the credit repair process is the search for credit reporting errors, and it's a lot like lifting the hood of your car. You might spot something, but your chances are better if you know what to look for.

Two Types of Errors

Credit reporting errors may be grouped into two general categories; obvious errors, and compliance errors. Obvious errors, such as accounts that don't belong to you are easy to find. Compliance errors generally relate to a real event, but should not report as a matter of law. These may not look like errors at all, but anyone familiar with the nuts and bolts of credit repair knows they make up the vast majority of erroneous reporting.

Collection Issues

Because compliance errors relate to a recognizable event usually means that they go unchallenged, and needlessly damage your credit scores for years. Collection accounts often fall into this category. Collections are often sold and re-sold. Collectors who no longer own a debt may not report the collection on your report. A shocking number of reported collections have no legal right to show on your report. And yet, the system provides no mechanism or incentive for collectors to cease reporting when they should. Here's a handy credit repair fact: collections change hands regularly and should be challenged even when they look current.

Reporting Period Violations

Reporting period violations are also in the category of compliance errors and often go unchallenged. Most derogatory information should stop showing on your report after seven years. People starting a credit repair effort are usually aware of this fact, but an impressive number of these errors escape notice. Creditors are responsible for furnishing the credit bureaus with accurate start dates for these reporting periods. Unfortunately, creditors do not always provide the proper dates, and may even inadvertently reset the start dates under certain circumstances. Did you know that the reporting period starts with the original default and cannot be reset by subsequent debt holders? If an account is charged off and sold to a collector, and eventually a sequence of collectors, the likelihood of a reporting period error increases exponentially and the damaging information may report for years past the proper expiration date.

Those Darn Credit Cards

The relationship between your credit card balance and the high credit limit can have an enormous impact on your score. Did you know that it is common for credit card issuers to misreport high credit limits? The affect on your credit scores can be dramatic. If you have a credit card with a $1,000 balance and a $10,000 limit, and the creditor were to erroneously report your card with a $1,000 limit - just equal to your current balance - your score could fall significantly. How much will it fall? Many consumers involved in a credit repair effort are confused about the effect of a derogatory item on their credit score. Did you know that the impact of an error on your score will vary depending on the overall content of your report? The more credit you have, and the older your accounts are, the less impact a single problem will have. On the other hand, if your credit is relatively lean, a single error can be devastating. In either case, it is worth examining your report carefully to insure your high credit limits are correct.

Dรฉjร Vu Credit

Have you ever examined your report and seen the same account more than once? You're not alone. Duplicate accounts occur all the time and impact your scores exactly the same as if they are real, additional debt on your report. Another common error of a similar nature involve closed accounts which continue to report as open with balances. Like too many other types of errors, these are often passed over with a shrug during a credit repair effort, but may be costing you money.

Copyright ยฉ 2007 James W. Kemish. All Content. All Rights Reserved.

Article Source: http://www.articlesbase.com/credit-articles/
credit-repair-and-the-art-of-finding-errors-375338.html

About the Author:

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading credit repair business since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
I'm interest to publish any useful articles.
For more articles visit my blog and web site below :

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Author: Aubrey Clark

Most would-be credit card owners these days have a bruise or two on their credit report and feel they may not qualify for low interest credit cards. Depending on the problem that appears on their bureau they very well may be right. However, a large section of the people with fair credit will qualify for credit cards with low interest rates regardless of their credit discrepancies if they can show certain attributes on the credit card application.

Believe it or not, some of the lowest rate credit cards on the market only require "average" credit to qualify for. Knowing which cards, where to apply and how to accent the "positives" on you application is the key to obtaining these cards. We have listed an explanation for these three tips below.

1) Which Credit Cards to Apply for - Credit card issuers offer credit cards these days that come with all types of bells and whistles on them. Leave these credit cards alone. What you are looking for is the plain old fashion credit cards. This means no cash back credit cards, no reward benefits, travel cards and so on. These cards rarely benefit the "average" user and carry a higher default rate than regular credit cards.

The plain or regular credit cards can usually be found at the end of each credit card sections on most credit card websites. This is because they carry a lower profit margin than the cards with bells and whistles attached to them.

2) Where to Get Credit cards for Average Credit - Low interest rate credit cards are rarely sent to your home in the mail. The credit card offers sent to your mail box are usually less attractive clones of the real cards that have lower rates. We suggest that you use these applications to start your fireplace or back yard grill.

The best place to go to get the low interest credit cards is directly into the bank that offers the card. The problem with this is some of the banks that offer the best rates and terms aren't national banks and may not have a branch where you are.

The next best place to look for low interest rate credit cards is well established online credit card websites. They usually carry a large selection of credit cards that are exactly like the cards you can get directly at the bank.

3) How to Apply for Credit Cards - The credit card issuers aren't necessarily looking for a high credit score. They are looking for people with a fairly good track record of making payments and the capacity to pay them back.

Let's assume that I applied for a card having a 720 credit score and a mountain of debt. Let's assume that and you applied for the same card with only a 620 credit score but with very little debt, you would be the more attractive applicant in many credit card issuers' eyes.

Details on the application are a key factor when you fill out a low interest rate credit card application. If you have been on your job 3 years and nine months don't just put 3 years. List your checking account and your savings account if it asks, most people only list their checking. Finally, look at your credit report before you apply with any credit issuers.

The U.S. Public Interest Research Group reports that as many as 25% of consumer credit bureaus are reporting inaccurate information that can cause you to be declined. If you see any errors dispute them immediately, it may take a month or more to get them corrected.

Have the credit bureau add a comment to your bureau that says "consumer disputes this information" immediately. This will not help your score but will tell prospective creditors why your score is low.

Aubrey Clark is an author and editor for DirectBanc.com. He has been writing on financial issues that range from credit cards for Fair credit to Where to Find Low Interest Rate Credit Cards.

Article Source: http://www.articlesbase.com/credit-articles/
low-interest-rate-credit-cards-how-to-qualify-with-fair-to-average-credit-374276.html

About the Author:

Aubrey Clark is an author and editor for DirectBanc.com. He has been writing on financial issues that range from credit cards for Fair credit to Where to Find Low Interest Rate Credit Cards.

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
I'm interest to publish any useful articles.
For more articles visit my blog and web site below :

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Author: Stuart Hunter

Fortunately for you, decades ago Congress recognized that the credit reporting system needed an overhaul. The practices of the credit bureaus and the creditors using the credit reports they provided were abhorrent. American consumers were being taken advantage of by a system they had no way of influencing and no way of keeping in check.

To counter this, Congress enacted the Fair Credit Reporting Act which with its subsequent revisions has become the keystone for constructing your credit rights. It is because of the Fair Credit Reporting Act that you have the right to see what is being reported on your credit reports and to dispute the negative items they contain.

Along with the Fair Credit Reporting Act, there are a few other consumer protection laws that give consumers certain rights when it comes to working with the creditors and collections agencies who report to the credit bureaus. By taking advantage of their rights under each of these statutes, consumers have been able to successfully repair their credit.

Fair Credit Reporting Act
The Fair Credit Reporting Act is what got credit repair started. Because of this act, you have the right to see your credit reports and to dispute bad credit directly with the credit bureaus.

Fair Debt Collection Practices Act
Along with protecting your against abusive behavior from collectors such as contacting you at unusual hours, screaming at you, using profanity, misrepresenting their identity, or using violence in an effort to collect a debt, the Fair Debt Collections Practices Act gives you powerful debt validation tools that give you the right to challenge any debt.

Fair Credit Billing Act
Similar to how the Fair Debt Collection Practices Act governs collections agencies, the Fair Credit Billing Act give you the right to dispute negative credit directly with your original creditors in order to change the way they are reporting your account to the credit bureaus.

Credit Repair Organizations Act
With all the laws surrounding credit repair, it can be overwhelming for a newcomer to try repairing their credit. Fortunately, there are legal credit repair companies who help consumers work towards a fair and accurate credit score. These credit repair companies are regulated by the Credit Repair Organizations Act which helps prevent consumers from becoming a victim of a credit repair scam.

Article Source: http://www.articlesbase.com/credit-articles/
the-laws-that-make-credit-repair-possible-374250.html

About the Author:

You have certain rights regarding your credit reports including the right to legally repair your credit by disputing the negative items in your credit reports. You can work to repair your credit on your own or with the help of a reputable credit repair company.

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
I'm interest to publish any useful articles.
For more articles visit my blog and web site below :

Professional Articles Directory
Computer Tips Articles Blog
Automotive Articles Blog
Information Technology and Mobile Phone
Credit Care Articles Blog
Chiang Mai Information Site
Chiang Mai information hotels reservation service.
Thailand Hotels Booking and Reservation online Service.

Author: Helen Hecker

Today having good credit reflected in your credit report is important in every financial situation you find yourself in as you probably know and knowing a few tips about credit repair can solve a lot of your credit problems. In our world credit determines just how much interest you'll end up paying on your house, car, truck, etc.

Your credit scores, called FICO, are used by your landlords, your employers and the insurance companies to determine whether you can get an apartment and/or job and even what your insurance rates will be. Yes your insurance agent will make use of your credit information. Your credit report and score will indicate whether you have good credit or bad credit and whether you have to pay a deposit for a cell phone.

Assuming you already have a copy of your credit report, here are a few of the best credit repair tips if you're having credit problems. If you don't have a copy you can easily get a free credit report online. You won't be able to get the score along with the free report though. There are other ways to get your FICO score that you would have to pay for but there are ways to get your score for free.

1. Get a copy of the 'Fair Credit Reporting Act' from the federal government. It may sound boring but you don't have to read the entire legal portion, just understand the basics of the Act. You'll be well-armed if you plan to fix your credit report. But it's very important that you get it and read it. It won't take long.

2. Did you know that any information on your credit report can be disputed? That includes any personal information - public records, any accounts you have of course, even any inquiries. You can dispute anything.

3. Consider credit repair to be a gradual process. Look over the information, your credit card accounts and other accounts. Let's say you have 15 accounts that you'd like to dispute. Pick just 3 or 4 or so to dispute. Otherwise if you dispute them all at one time the credit bureau or credit reporting agency will not consider your requests seriously.

4. You want to keep your letters of dispute on the simple side. You don't need to go into the laws, procedures any court rulings or even threaten them with lawsuits if they don't fix your credit report. Just make it simple.

Just dispute the accounts you have decided to start with - those that need to be removed, updated or changed. Now if your letter is too confusing, there is a good chance it will get tossed. You don't need to go into any personal tales. Just keep it simple and short.

5. Lastly the 'procedural request' - asking for the method of verification. If you get some accounts deleted that's good. But for those that came back "verified" you can ask for a 'procedural request.' The credit reporting agencies and credit bureaus are obligated by law to provide you with the exact method your creditors used to verify the information that they are reporting to the agency on your credit report. Requesting this information, forces the credit bureau to provide you with the information they received from your creditor as valid proof.

The creditor needs to have proof of why if they replied to your dispute stating that your account should remain on your credit report. The creditor rarely ever provides the credit reporting agency or credit bureau with this information. So, by doing this you're putting pressure on them to prove it. Otherwise they will have to remove it.

Make sure to keep records of everything the bureaus and your creditors send to you in case you find some day that you have to sue them for violating your federal rights. If you follow these credit repair tips you should be well on your way to fixing your credit for good!

Article Source: http://www.articlesbase.com/credit-articles/
5-best-credit-repair-tips-will-fix-your-credit-report-and-score-now-372063.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

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
I'm interest to publish any useful articles.
For more articles visit my blog and web site below :

Professional Articles Directory
Computer Tips Articles Blog
Automotive Articles Blog
Information Technology and Mobile Phone
Credit Care Articles Blog
Chiang Mai Information Site
Chiang Mai information hotels reservation service.
Thailand Hotels Booking and Reservation online Service.