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Credit score
All posts tagged Credit score
Your credit rating impacts many aspects of your everyday life. Here’s how
Sure, you know that having bad credit can mean paying more for a car loan or a mortgage. You know that it means you can pay more to use your credit cards. But did you know that people with bad credit also pay more for their car insurance and sometimes even for rent? There are more costs of having bad credit than you might know.
Jobs
Increasingly, employers are using credit reports to help make decisions of hiring and firing. Mike Watson, regional sales director with FES states that more than half of all major companies are using background checks as part of a pre-employment screening. “I think it’s unfair,” he says, but quickly adds “it’s something that consumers must be aware of when they’re doing something as simple as paying a credit card bill.”
Gail Cunningham, vice president of membership and public relations for the National Foundation for Credit Counseling points out the reason why credit reports are increasingly used in hiring decisions. “Potential employers might view your credit report as an overall reflection of your responsibility.”
What’s the cost? Tim Lucas, vice president of mortgage at MyMortgageInsider.com, breaks it down. “Say that you have to take a job that pays $10,000 a year less because you have bad credit,” he says. “That’s $100,000 over ten years.” While the math is obvious, what might not be is that, in the case of employment, you might be losing more than you would because of high interest rates on a mortgage.
Insurance
“Car insurance is a big one,” says Lucas, adding that drivers sometimes pay double what they would pay if they had better credit scores. Why are car insurance companies pulling your credit report to see what you should pay? “Car insurance companies assume that if you’re not responsible with your finances that you might not be a responsible driver,” Lucas says.
It’s not just car insurance, either. “All kinds of insurance companies are pulling credit reports,” explains Padawer, adding that “There’s a correlation between the number of claims filed and the total cost of these claims and a person’s credit report.”
Apartments
Perhaps the worst hidden cost of bad credit is your apartment. Padawer points out that “rentals are just about the only thing that isn’t on your credit report.” This means that you might be the most responsible person in the world when it comes to paying your rent on time, but your landlord will never know it: your rental history appears nowhere on your credit report.
On the other hand, Padawer is quick to point out that “there are almost no landlords who won’t want to look at your credit report.” To feel comfortable with renting to you, a landlord might charge you a double deposit — no small fee, especially in a larger, more expensive city like Los Angeles or New York.
Lucas is somewhat less sympathetic. “If someone doesn’t pay their credit card bills and is always late with their car payment, there’s a good chance that they’re going to be late with their rent,” Lucas said.
If you decide that you want to own a home, you can almost always expect to pay a higher mortgage bill every month; your interest rates are going to be higher.
Thanks for Reading
Mike Watson
United Credit Education Services
619 743 8884
United Credit Education Services by Credit Repair Mike San Diego CA.
Enroll Today
Nearly 80% of credit reports contain inaccuracies or erroneous accounts. Your credit score is a major factor in any of your large financial investments: credit and loan approval, interest rates, the amount of down payment or mortgage type on your home, your premium on you auto and homeowners insurances, your ability to lease or purchase a vehicle and now it has even become a deciding factor in job qualification! There is no room for error, yet 8 out of 10 people are losing out on their hard earned money because of these mistakes!
Getting Started and Enroll Today for only $499:
- Once enrolled, you will receive a Welcome Email with your Username and Password, directing you to your online portal.
- To receive your first set of dispute letters, you must provide us with your Social Security & Address verification documents.
- You will receive your first set of dispute letters within 3-5 business days after those documents have been submitted.
Stay Involved:
- Review your dispute letters upon arrival. Any changes? Call our customer service department to speak with a live representative. They can answer any questions you may have and update your disputes to your request. Once changes are made, new disputes will be sent to you.
- If no changes are necessary or you’ve received your updated disputes, sign your letters and forward them to the addresses provided.
Receiving Results:
- Within 30 days you’ll receive a response from all three credit bureaus. If they do not respond, call our customer service department. Otherwise, forward that response back to us and we will update your file.
- Once your file as been updated, we will prepare and send you new dispute letters. Repeat the process above for five full dispute cycles.
We’re Here to Help:
- View your results online- 24/7
- Our live Customer Service Team is available to help with any questions you may have throughout the Credit Restoration process. Please do not hesitate to contact us.
Thanks For Reading
Mike Watson
619 743 8884
http://www.CreditRepairMike.com
740 Credit Score Needed by Credit Repair Mike in San Diego
A recent study conducted by the real estate information service Zillow revealed some useful insight into consumer credit scores. It seems that borrowers need a credit score of 740 or higher to qualify for the lowest mortgage rates.
This is based on an extensive review of 13 million loan quotes and more than 225,000 purchase loan requests generated through the company’s online “Mortgage Marketplace.”
These findings reflect the anecdotal reports we have received from lenders, which also point to the 740 credit score as a key cutoff point for mortgage rates. The message is clear. Borrowers who want to qualify for the lowest rates in 2014 should pay close attention to their credit scores. The best deals are currently going to those in the 740-and-up range.
Borrowers with scores of 620 or below found it difficult to qualify for a mortgage loan at all, according to the study.
Thanks For Reading
Mike Watson
619 743 8884
http://www.CreditRepairMike.com
Can You Remove A Bankruptcy Or Foreclosure? by Credit Repair Mike in San Diego…
Yes. If the listing is inaccurate, incomplete, misleading or unverifiable, it can be removed. The severity of bankruptcies, foreclosure, liens, etc. does not factor into their removal as much as you would believe. There are a number of elements, unrelated to severity, upon which such items can be successfully removed
What Do I Have To Do?
After you have completed the online enrollment, fax or email or mail your identification documents to our processing department. A list of required documents has been provided below:
Social Security Verification (as required by the credit reporting agencies)
- Photocopy of your Social Security card
- Photocopy of your pay stub displaying your full Social Security number
- Photocopy of your W-2
- Photocopy of your health insurance card that contains your full Social Security number
Address Verification (as required by the credit reporting agencies)
- Clear copy of a current bill (utility, telephone, credit card, etc.) with your name and address clearly
- Clear copy of your driver’s license with current mailing address
Your dispute documents will be prepared and mailed to you upon receipt of your identification.
How Can I Check My Progress?
Every 60 days, your file will be reviewed. Based on the documentation received from you, (credit report updates and letters from creditors) a new dispute will be generated and forwarded to you to review and sign. Along with the new dispute document, you will receive a status update report showing the progress and deletion of accounts to date. You can also access our Web site at http://www.united-credit.org for an up-to-date account status.
Thanks For Reading
Mike Watson
619 743 8884
http://www.creditrepairmike.com
An accurate credit report is empowering … by Credit Repair Mike.
Will you be ready to buy a home, refinance a current one, or purchase a car when the time is right?
Understand what lenders want
Lenders know that a perfect credit score is rare, but they do like to see that you are stable and reliable. They want to know that you will make repayments on time and in full, that you aren’t already over-stretched, and that you can comfortably afford to honor your agreement with them. A spotty credit history that shows missed repayments or bad debts is a warning signal – it means that you could let them down too.
That’s why credit scores affect most of today’s lending decisions. Apartment rentals, insurance rates and even employment can hinge on your credit rating. Good credit determines whether you’ll qualify for competitive interest rates, get stuck with high rates, or qualify for a loan at all.
Rely on Financial Education Services
FES has helped several thousand people just like you restore, improve and maintain their credit. We have set the industry standard as a reputable credit restoration and education organization built on a foundation of integrity, character and an exceptional commitment to obtaining the best results possible for each client. Don’t trust something as important as your credit and personal information to anyone but the professionals.
With Financial Education Services Credit Restoration you’ll receive:
Highest Success Rate in the Industry
Fastest Results in the Industry
Money Back Guarantee
Fully Staffed Customer Support Team Dedicated To Your Success
Thanks for reading
Mike Watson
619 743 8884
http://www.CreditRepairMike.com
Credit Card and Spending Information For Students and others new to credit, by Credit Repair Mike
Despite all the recent hype regarding students and credit card offers, if you haven’t begun to use credit, it may actually be a good time to check out current credit cards available to you and begin establishing a credit history.
However, proceed with caution. It’s important to keep in mind that regardless of how important a credit score is in today’s financial world, having thousands of dollars of debt to repay after graduation is a bad idea, especially when you’re also paying off student loans and trying to make ends meet on an entry-level salary.
Choosing a credit card
Today’s students are presented with a wide array of credit card choices—cards with low annual percentage rates, cards with no annual fees, rebate cards, and so on. So how do you choose one? Before selecting a card, be sure you know which credit terms and conditions will apply to the account. The Truth in Lending Act is a federal law that promotes the informed use of consumer credit by requiring disclosures about its terms and cost, using specific terminology. In short, the Truth in Lending Act allows the student to “shop around.”
Qualifying for a credit card
If you are at least 18 years old, or 21 if a permanent resident of Puerto Rico, and have a regular source of income or savings, you’re on your way to qualifying for a credit card. But you’ll still have to demonstrate that you are a good credit risk. The proof is in your credit history, which lists the amount of credit you have received and if you’ve paid it back on time.
If you are a full-time student, make sure to include that information on your credit application. Creditors often assign full-time students lower initial credit lines to start their credit files. As you advance through college and graduate school, you can always request increases to your credit line.
Building your credit history
So how do you establish your credit history? Even if you’ve never applied for credit before, there are ways to start building a good credit history:
| 1) | Open a checking account or savings account, or acquire a debit card. These do not create your credit file, but responsibly managing these accounts will indicate that you have money and show something and demonstrate responsibility. | |
| 2) | Apply for a department store credit card, gasoline card or a major credit card, and use it responsibly. Pay each bill on time and in full if possible (see below). | |
| 3) | If you don’t qualify for credit on the basis of your own credit file, ask someone with an established credit history (like a parent or other family member) to co-sign your application. The co-signer promises to pay your debts if you don’t. | |
| 4) | Be responsible. Because credit cards make it easy to purchase things now and pay later, it’s easy to lose track of how much you’ve spent. Make sure you pay all your bills on time, and only get the credit cards you need—don’t get a card just because the issuer is offering a discount on purchases. | |
| 5) | To establish and maintain good credit, pay at least the minimum amount due on each account every month, and pay on time. Allow five to seven business days for payments made by mail. Better yet, take advantage of on line bill pay services if possible. | |
| 6) | Use your credit card wisely, and you’ll have a very beneficial financial tool. Use it carelessly, and you’ll run up credit card debt you can’t afford. Nothing is easier than charging small things here and there, only to find yourself with a large bill you can’t pay. | |
| 7) | Keep close track of your spending. Get in the habit of watching your banking activity daily through online banking-monitor your account activity on a regular basis and arrange to make electronic payments.
Thanks for Reading |
What Items Are In Your Credit Report? by Credit Repair Mike in San Diego
- Identifying information such as name, address, date of birth, and names of employers. Most of this data comes from information you fill out on credit applications.
- Trade lines – all of your credit cards and other accounts; the date that you opened the accounts, your credit limit, high balance, current balance, and payment history, etc.
- Credit Inquiries – voluntary and involuntary inquires including account review inquiries( from your current lenders), hard inquiries (for new loan or credit applications) and promotional inquiries (for credit card companies and other solicitation offers).
- Public Records (bankruptcies, foreclosures, wage garnishments, liens and judgments)
- Collection accounts.
Items That Are Not Included In Your Credit Score
Although this information may appear on your credit report, it is not taken into consideration for your credit score:
- Age
- Race, color, religion, nationality, sex or marital status
- Occupation, salary, employer, length of time employed
- Where you live
- Interest rates charged to you on credit cards or other account
- Any item reported as child support or rental history
- Certain types of inquiries (consumer initiated inquiries or promotional inquiries)
What Goes Into Calculating My Credit Score???
Payment History(35% of your score)
- Current payment record for car loans, mortgages, retail accounts, installment loans, credit cards, etc. on paid as agreed accounts
- Public records (bankruptcies, foreclosures, wage garnishments, liens and judgments)
- Severity of delinquency (length of time past due)
- Amount past due on accounts or collections
- Recency of delinquency or public record or collection
- Number of past due or derogatory accounts
Payment History Tips
- Pay your bills on time (new late payments and collections have the largest impact on the score.)
- If you are past due for any reason, Get Current! (The longer you remain current and pay your bill on time, the higher your credit score will be)
- Be careful about closing accounts (this may result in losing valuable credit score points associated with that account)
Amounts Owed(30% of your score)
- Amounts owed on revolving accounts
- Total amount owed on all accounts
- Number of accounts with balances
- Proportion of balance to credit limits on revolving accounts
- Proportion of balance still owing on installment accounts
Amounts Owed Tips
- Keep balances low on credit cards and other revolving accounts. A general rule of thumb is to keep your balances below 30% of the credit limit or high balance.
- Pay off debt instead of moving it around. (One of the most effective ways to improve your credit score is to pay down the balances on your credit cards or other revolving accounts. Owing the same amount but having fewer open accounts may result in a lower credit score. Keep as many of your revolving account below 30% of the credit limits of high balance. It may be beneficial to consolidate debt into one account, if you can get two or more account balances below 30% of the credit limit or high balance that were otherwise above that limit.
- Don’t open new accounts to increase your available credit. (This can backfire and actually lower your score)
Length Of History(15% of your score)
- Age of accounts
- Number of recently opened accounts
- Time since account activity
- Proportion of new credit vs established credit
- Re-establishment of new credit following adverse payment problems
Length Of Credit History Tips
- If you have a relatively new credit history, stay away from opening new accounts too rapidly. New accounts may bring the scores down temporarily, especially if you have a lack of credit or a lack of established credit history. Rapid account buildup can be seen as a risk factor.
- Re-establish yourself after prior payment history problems. Opening new accounts responsibly and paying them off on time will increase your credit score in the long term. This is not a suitable strategy for increasing the scores in the short term.
- Too many consumer finance companies can be seen as an adverse factor (creditors known to lend to consumers with less than perfect credit history).
Types Of Credit Used(10% of your score)
The number of various types of accounts (credit cards, retail accounts, installment loans, mortgages, consumer finance accounts, etc.)
Types Of Credit Tips
Apply for and open accounts only as needed. (Opening new accounts is not a short-term solution.) It is a good rule of thumb to have 3 open and active revolving accounts along with 1 to 2 installment accounts and one mortgage.
New Credit/Inquiries(10% of your score)
- Number of recently opened accounts
- Number of recent inquiries
- Time since inquiry
- Time since account opening
- Your credit score takes into consideration all of these factors. In some situations, one factor can have a larger influence on one person’s credit score. This depends on each individual credit situation and credit history.
Credit Inquiries
A credit inquiry will appear on your credit report when your credit report is pulled for purposes of extending credit or by your current lender for other purposes.
Hard Inquiries
These inquiries affect your credit score. When you apply for a mortgage, auto loan, credit card or other type of account, you authorize the lender to obtain a copy of your credit report. These types of credit inquiries, when prompted by your own actions, appear on your credit report and will impact your credit score. Avoid an excessive amount of inquiries. Excessive depends on the depth of the credit profile. More than 5 inquiries may be excessive for people with a lack of credit. If you are shopping for a mortgage or automobile and you know you will incur multiple inquiries, make sure you have your credit pulled within in a short, focused amount of time. Depending on which scoring system you are dealing with, you may have a 15 day, 30 day or 45 day window to shop for and apply for credit for the purpose of obtaining a mortgage of automobile financing, thus incurring inquiries without the inquiries counting against you separately. The scoring system recognizes that you are shopping and will count the multiple inquiries as a singular inquiry, if it falls within the allotted timeframe.
Account Review Inquiries & Consumer Based Inquiries
These types of inquiries do not affect your credit score. When you choose to pull your own credit report through an online resource, it is considered a consumer-based inquiry and will not affect your credit score. Also, many of your creditors or collection agencies have the ability to pull your credit report to review your account activity. Credit reports pulled by a prospective employer when applying for employment will not affect your score.
Promotional Inquiries
In many cases a company will pull your credit report in order to send you pre-approved credit offers or other promotional offerings. These inquiries do not affect your credit score. To prohibit the ability of creditors pulling your credit report for promotional purposes you must OPT Out by calling 888-867-8688.
Thanks For Reading
Mike Watson
619 743 8884
http://www.CreditRepairMike.com
Credit Card and Spending Information For Students and others new to credit by Credit Repair Mike in San Diego…
Despite all the recent hype regarding students and credit card offers, if you haven’t begun to use credit, it may actually be a good time to check out current credit cards available to you and begin establishing a credit history.
However, proceed with caution. It’s important to keep in mind that regardless of how important a credit score is in today’s financial world, having thousands of dollars of debt to repay after graduation is a bad idea, especially when you’re also paying off student loans and trying to make ends meet on an entry-level salary.
Choosing a credit card
Today’s students are presented with a wide array of credit card choices—cards with low annual percentage rates, cards with no annual fees, rebate cards, and so on. So how do you choose one? Before selecting a card, be sure you know which credit terms and conditions will apply to the account. The Truth in Lending Act is a federal law that promotes the informed use of consumer credit by requiring disclosures about its terms and cost, using specific terminology. In short, the Truth in Lending Act allows the student to “shop around.”
Qualifying for a credit card
If you are at least 18 years old, or 21 if a permanent resident of Puerto Rico, and have a regular source of income or savings, you’re on your way to qualifying for a credit card. But you’ll still have to demonstrate that you are a good credit risk. The proof is in your credit history, which lists the amount of credit you have received and if you’ve paid it back on time.
If you are a full-time student, make sure to include that information on your credit application. Creditors often assign full-time students lower initial credit lines to start their credit files. As you advance through college and graduate school, you can always request increases to your credit line.
Building your credit history
So how do you establish your credit history? Even if you’ve never applied for credit before, there are ways to start building a good credit history:
| 1) | Open a checking account or savings account, or acquire a debit card. These do not create your credit file, but responsibly managing these accounts will indicate that you have money and show something and demonstrate responsibility. | |
| 2) | Apply for a department store credit card, gasoline card or a major credit card, and use it responsibly. Pay each bill on time and in full if possible (see below). | |
| 3) | If you don’t qualify for credit on the basis of your own credit file, ask someone with an established credit history (like a parent or other family member) to co-sign your application. The co-signer promises to pay your debts if you don’t. | |
| 4) | Be responsible. Because credit cards make it easy to purchase things now and pay later, it’s easy to lose track of how much you’ve spent. Make sure you pay all your bills on time, and only get the credit cards you need—don’t get a card just because the issuer is offering a discount on purchases. | |
| 5) | To establish and maintain good credit, pay at least the minimum amount due on each account every month, and pay on time. Allow five to seven business days for payments made by mail. Better yet, take advantage of on line bill pay services if possible. | |
| 6) | Use your credit card wisely, and you’ll have a very beneficial financial tool. Use it carelessly, and you’ll run up credit card debt you can’t afford. Nothing is easier than charging small things here and there, only to find yourself with a large bill you can’t pay. | |
| 7) | Keep close track of your spending. Get in the habit of watching your banking activity daily through online banking-monitor your account activity on a regular basis and arrange to make electronic payments. |
Below you can get familiar with some common credit card terminology to help you navigate through the process :
Annual Fee
Some credit cards may have an “annual fee” they apply to your card. Please see the terms and services agreement on your card carrier for more information.
APR
APR stands for Annual Percentage Rate. APR is the amount of interest you are going to pay on your card annually. Your first credit card will always tend to be a high APR rate. The same goes with bad credit as well. The better the credit score, the lower your APR typically is.
Balance Transfer
A balance transfer is when you take funds from one credit card and transfer it to another. Sometimes banks will offer promotional rates to get you to switch.
Credit Limit
This is the limit that you are allowed to charge. If you charge more than this amount, penalty fees usually are applied or your purchase may be declined.
Grace Period
A Grace Period is the time the customer has to pay off their balance. Grace period can range anywhere from 20 to 30 days. If a payment isn’t made after your grace period is up, late fees and a higher interest rate can be applied.
Interest Rate
An Interest Rate is the rate the borrower must pay to borrow the credit. This is paid on the ongoing balance.
Minimum Payment
The minimum payment is the amount you must pay each month to avoid late fees or hurting your credit score. This number is a percentage of your outstanding balance and is relatively low to your overall balance most of the time. Once again, this depends on the card issuer.
Penalty Fees
These are the fees a credit company usually charges you. These can vary from going over your credit limit to paying your bill past its due date. Penalty Fees will vary from card to card. Secured Credit Cards
A secured credit card is a card that usually requires a deposit to be kept as collateral. Typically the deposit is the credit limit. Secured Credit Cards are ideal for people with bad or no credit.
Unsecured Credit Cards
An unsecured credit card does not require collateral for approval and applications are approved based on your credit history, and earnings.
Some credit cards may have an “annual fee” they apply to your card. Please see the terms and services agreement on your card carrier for more information.
APR
APR stands for Annual Percentage Rate. APR is the amount of interest you are going to pay on your card annually. Your first credit card will always tend to be a high APR rate. The same goes with bad credit as well. The better the credit score, the lower your APR typically is.
Balance Transfer
A balance transfer is when you take funds from one credit card and transfer it to another. Sometimes banks will offer promotional rates to get you to switch.
Credit Limit
This is the limit that you are allowed to charge. If you charge more than this amount, penalty fees usually are applied or your purchase may be declined.
Grace Period
A Grace Period is the time the customer has to pay off their balance. Grace period can range anywhere from 20 to 30 days. If a payment isn’t made after your grace period is up, late fees and a higher interest rate can be applied.
Interest Rate
An Interest Rate is the rate the borrower must pay to borrow the credit. This is paid on the ongoing balance.
Minimum Payment
The minimum payment is the amount you must pay each month to avoid late fees or hurting your credit score. This number is a percentage of your outstanding balance and is relatively low to your overall balance most of the time. Once again, this depends on the card issuer.
Penalty Fees
These are the fees a credit company usually charges you. These can vary from going over your credit limit to paying your bill past its due date. Penalty Fees will vary from card to card. Secured Credit Cards
A secured credit card is a card that usually requires a deposit to be kept as collateral. Typically the deposit is the credit limit. Secured Credit Cards are ideal for people with bad or no credit.
Unsecured Credit Cards
An unsecured credit card does not require collateral for approval and applications are approved based on your credit history, and earnings.
Why Choose Us? by Credit Repair Mike in San Diego… |
 Financial Education Services It’s simple really. We have the knowledge, experience and most effective approach to credit restoration in the industry. FES Protection Plan is proud to offer our time proven strategies, including the industry’s first proactive and interactive customer service. In short, clients receive regular progress reports detailing the status of their credit file, including the number of dispute cycles completed and the number of deleted items. Our customer support team is on hand to personally answer any questions by phone or email, or clients may choose to access their account details online any time of day or night. Let our professionals work for you. Enroll today and join the thousands of other clients who are enjoying the benefits of improved credit.
Thanks for Reading |
CreditRepairMike.com 