Don't Give Up on Your Credit Score

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Imagine that you’ve gotten far behind on your credit card payments.
The accounts have been closed, but you manage to pay off your balances before they get charged off as bad debt.
Since you’ve made good with your creditors, you’re shocked when your credit score doesn't rise as a result. What’s going on here? Is it really worth it to pay off your debts rather than waiting for them to fall off of your credit report in seven years?

It’s true that credit scores require patience.
It takes a while to move them in either direction, but they tend to sink faster than they rise.
That’s one unfortunate truth. Another is that, even though it might take months or years to get your credit score where you want it, it’s not a good idea to play the waiting game with delinquent accounts.
Pay them off as quick as you can.

Why shouldn’t you save your money and just wait things out?
There are several reasons.
First, if you intend to buy a house someday, you’ll want your credit report to reflect that you paid your debts in full. Unresolved debts will disqualify you from most mortgages.
Even if you paid the balances late, and even if the accounts were sent to a collection agency, it’s still better to pay up. Lenders will look at you more favorably if you do.

Also, consider the nuisance you might have to deal with if you decide to permanently default on your debts. You could be targeted by bill collectors, property liens, and even lawsuits.
Depending on the size of your debt, you could have your paychecks garnished. It’s much less stressful to just pay the money you owe and not have to deal with harassment and litigation.

Finally, if any of your accounts are still open while you’re paying them off, this repayment will be noted on your credit report.
Timely repayment history makes up slightly more than a third of your FICO score – the credit model used by most lenders. Start making monthly payments in full, as soon as possible.
Your credit score will reap the benefits.

It’s sad but true that some people let their debts go indefinitely.
They watch the negative items come off of their credit reports in seven years’ time.
Others who pay their debts in full have to wait the same amount of time for negative marks to come off.

When you get behind in your payments, you’re not adhering to the agreed-upon repayment schedule, and the creditor has the right to report this to the credit bureaus. If you can’t avoid delinquency, at least pay off your accounts when you’re able to rather than letting them sit. By showing that you’re interested in making good on your debts, you’ll qualify for more loans than people who never pay up.

This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.

Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )

Disputing Your Credit Score

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If you get your free annual credit report and discover there are some inaccuracies, you will want to dispute the information and work to get it corrected on your credit report.
When you dispute the information, you are protected by the Fair Credit Reporting Act which requires that all credit reporting agencies (like Experian, TransUnion, etc) respond with an investigation of your creditors.

If the information disputed is found to be inaccurate- it will either be removed from your credit report or corrected within thirty days.
Also, if the creditor is unable to proof their information is correct, it will be considered inaccurate and will have to be changed.

What Might Need to be Disputed?
When you get your credit report, you will want to look out for the following common areas that mistakes are found:

Inaccurate details- you may find that creditors have reported late payments to your file that you don’t agree with. If you have back up information, like cancelled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.

Old, outdated information- on your credit report, negative account information can only be reported for seven years after the first delinquency; except Chapter 7 bankruptcy.

Fraudulent Accounts–definitely look out for accounts appearing on your credit report that you didn’t open. This could signify that you have been the victim of identity theft, or that account information from someone with a name similar to yours has been mixed up with your information.

How to File a Credit Dispute
You should file your dispute in writing. T
his includes mailing a letter to the credit reporting agency or using their online form for filing disputes.
The Fair Credit Report Act gives 30 days for the credit reporting agency to investigate the dispute claim and come to a conclusion on the situation.
You will then receive the written results and a free copy of your credit report if any changes have been made.

The best way to file a dispute is to make a photo copy of your credit report and enclose it with your letter. Circle the dispute on the credit report and number it.
In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.

For fast processing, be sure to include:

• Your full name and mailing address
• Your date of birth
• Social security number
• Name of creditor and the account number of the item you are disputing
• And of course, don’t forget to sign it!

Alternative Dispute Options
The other method of disputing information found on your credit report is to contact the creditor directly.
If you contact a creditor and indicate that they have reported information incorrectly to your credit report, the FCRA states that they cannot then report that item at all to the credit report without including a note that you are disputing the information.
Of course, if the information is found to be inaccurate or an error, it must be corrected on your report or removed.

What to Do if The Dispute Doesn’t Result in a Settlement
It's not always simple to get a settlement on your dispute. If following the dispute process leaves you with an unsatisfactory result, you can then file a dispute with the National Consumer Assistance Center.
Having the case re-investigated may or may not result in the deletion of an item off your credit report; but you can bet that you will need to have documentary evidence to get the credit bureaus to remove any information. Unfortunately, if you are successful in having items removed from your credit report, you may find them to reappear due to the instance of the creditor!

Another option is to contact your Attorney General's Office if you believe the credit bureau has violated the FCRA. You have the option to sue the credit bureau and/or creditor in either state or federal court if you feel they are in violation.
If you win, all of your attorney fees and damages would be reimbursed to you.

This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.

Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )

Understanding Your Credit Score

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When you apply for credit one of the first things almost all credit officers do is check your credit score. Although not all of those officers explained to us what a credit score is, we are all rated according to it and the offers we receive were all dependent on that score. This is why understanding your credit score is of utmost importance, and for future reference at least basic knowledge should be acquired. In the following paragraphs we will tackle understanding your credit score, realizing what your credit score means and analyzing what you can do to improve it.

Credit score is actually computed as an average of several elements from your credit report. This report is typically broken into five different sections and each of these sheets will represent a piece of the final score. Each category of credit report information occupies a certain percentage in the final score. To begin with, it is essential to say that the highest percentage is taken by the category made up of credit and payment history. An issuer will look at all types of payments: credit card payments, retail accounts, installment loans and so on. He or she will particularly look at the number of delayed or not paid payments, time passed since the last skipped payment, number of problematic accounts as compared to accounts in good standing.

The next thing taken into account when computing the score is the total amount owed. These amounts are looked at in their absolute value and also in proportion to the credit limit. The number of accounts with balances is also relevant. The third thing issuers analyze is credit history, or how much credit you’ve had and for how long. Understanding your credit score is essential to you and you need to know that the length of all credit lines and their activity will be monitored and will matter significantly in the final credit score. Also, remember that all scores take into consideration recent credit activity. This category includes number of credit inquiries, new opened accounts, their amount, the time since they were opened and of course reestablishment of credit history if there were any issues in the past. Last, even if many people do not regard it as important the type-element is also significant - that means that the type of credit line you have (credit card, installment, mortgage) also plays a role (about 10% of the final score) in computing your credit score. You also need to understand that your credit financial report is the basis of computing your score. Each of the above mentioned elements is specific to every one of us, and as such if for some people amount owed is the major factor for others credit history is essential, therefore it is impossible to give exact percentages as to how much an element weighs in the final credit score.

Understanding your credit score, none the less, is not the only important aspect, managing it is also important. You will be able to improve your credit score if you follow a few simple tips. First of all, try to pay all the bills in time. This is more important than any of the other factors. If it’s not possible to pay on time you can usually get away with paying the bill within a 30 day window of the due date. If you miss this date it is almost certain to end up on your credit report. Keep balances low on your credit cards and other revolving credit and try to pay off debt. Also avoid moving credit from one credit card to another. The low intro rates many companies offer for balance transfers can be very helpful, but it takes a toll on your credit score. It is also recommended that if you plan for applying for important credit soon, avoid opening too many other new accounts. When in doubt, hire a financial consultant. Most people may see this as an expensive luxury that they can’t afford, but in reality financial consultant prices are fairly reasonable. Even a single visit can help you drastically improve your credit score, and if that results in a lower interest rate on a large loan it will more than pay for itself. A consultant will also be able to explain the credit score better.

All in all, what you need to know is that credit score influences depends on your credit report and it directly influences your credit payments and amounts. The higher the score the lower the interest rate and the payment will be. Taking into account the importance of this indicator, understanding your credit score will automatically mean you have more chances to improve and make it higher and therefore benefit from better loans.

This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for credit cards online.

Click ref : Credit Score ( CreditReport .com & ScoreDirct ) --- Credit Repair --- Payday Loan/Mortgage/Grants ( 100 day loan & Cash in 24 hours )

Your Credit Score Explained

By Brian G Chadra

The credit score was once confined to the mortgage industry but has made its way into the general financial community. It is a three digit number that ranges from 300 to 850 and demonstrates your ability to repay an amount of money that was borrowed. This snapshot of your financial well being is examined by any creditor that your are attempting to borrow money from. It can cause denial or approval of a loan on its own merit or will cause you considerable consternation as the lending institution seeks further answers to the fitness of your request.

You see, the credit score is a summary of approximately five different factors that together total up the point values. They are listed below:

1). Payment history - approximately 35%
2). Amounts owed - approximately 30%
3). Length of credit history - approximately 15%
4). New credit - approximately 10%
5). Types of credit used - approximately 10%

Each of the items has a role in determining your number. The higher the number, the better risk you are as a loan candidate. The cut off point between a good and bad risk is generally set at 620 with persons below that number labeled as a bad risk. Surprisingly, a number between 730 and 850 constitutes an excellent risk and usually qualifies for the best interest rate. So you don't have to have a perfect score to quality (since very few people actually do), but a very good one.

There are three different national bureaus that monitor your credit rating: Experian, TransUnion, and Equifax. Although they use slightly different methods, the final three digit total are approximately the same. Consider ordering your FREE credit report to check for any errors that may be listed.

Raising your number by even a few points can save you considerable money in the long term. Good Luck.

Articles Source: Your Credit Scores Explained

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Credit Repair/Debt Management Visit CreditDotcom  OR Call Lexington Call Toll Free Now: 877-387-4381 for an Free informal chat.

For Home Buyers: 5 Best Websites for Credit Score Information

by Brandon Cornett

If you’re planning to buy a home in the near future, you should know your FICO credit score. In fact, your credit score is one of the three most important factors considered by mortgage lenders (along with your debt and income levels). If your score is high, you’ll have a much better chance of getting approved for a loan. You’ll also qualify for a better interest rate, which could save you thousands of dollars over the life of the loan.

It’s important to check your FICO score early on in the home-buying process, because it takes time to improve a low score. While you’re entitled to a free credit report per year, you’ll have to pay a small fee for the credit score. They are two different things. You can purchase your score from MyFICO.com — this is the company that actually designed the FICO scoring model.

But what if you check your score and find out that it’s low? You could qualify for certain types of loans with a score in 600 range, but you’ll be much better off in the mid- to upper-700 range. The question now becomes: How do I Improve my score? And that brings us to the purpose of this article.

5 Good Sources of Credit Information

Here are five websites worth visiting, if you want to learn more about your credit reports and scores:

1. www.myfico.com — We touched on this website earlier. This site is owned by the Fair Isaac Corporation, the company that created the credit-scoring model used by most lenders. They have plenty of educational articles, as well as a forum where you can post questions. It’s well worth a visit.
2. www.homebuyinginstitute.com/credit.php — On this page, you’ll find a collection of more than 100 articles relating to consumer credit. This collection was compiled over a two-year period, as readers sent in their questions. If you have a question about credit reports and scores, you’ll find the answer on this site.
3. www.annualcreditreport.com — This website is jointly owned by the three credit-reporting companies (TransUnion, Equifax and Experian). This is where you should go to request your free reports. This is the only site that is regulated by the Federal Trade Commission.
4. www.ftc.gov/freereports — Why do so many people offer “free” credit reports, and then try to charge you for stuff? It’s a marketing strategy referred to as bundling, and you can learn the truth about it on this website.
5. www.bankrate.com — This site is a treasure trove of helpful advice. In addition to credit tips, it explains the mortgage process in great detail. Start with a keyword search, or click on the “news and advice” link.

Research is the first step to home-buying success. The five resources listed above will help you get started on the right foot.

Citation Note: The original version of this article was written by Brandon Cornett. Brandon is the publisher of the Home Buying Institute, which includes one of the largest libraries of mortgage advice for home buyers.

Ref : Credit Score/Monitoring Visit  National Credit Report , Credit Reports and Scores or CreditDotCom
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Basic Overview Of Credit Score Ranges

The individual’s financial data is submitted to a credit reporting agency by creditors, debt collection agencies, the courts and other public or federal agencies.
Once a note or comment has been made or added to the person’s credit report, it stays there for sometime.
If the note is a positive one, it ensures that you’ll have an easy time availing of different forms of financing.
A negative comment made by your creditor on the other hand, will have a detrimental effect on your purchasing power.

1. Standard Credit Score Ranges
To develop the credit scoring system, a creditor generally weighs each of the major factors, based on how each of the factors predicts whether a person is deemed a good credit risk.
300 – 499 – Bad Credit
500 – 580 – Poor Credit
580 – 619 – Low Credit
620 – 679 – Average Credit
680 – 699 – Good Credit
700 – 850 – Excellent Credit
2. Regularly Monitor Your Credit Score
According to credit experts, a good to excellent credit score is often weighed as a future sign of your credit value, and if your credit score is Good, then your future loan’s interest rates will certainly be lower than usual.
A bad to poor credit score on the other hand, will usually allow you to get higher-interest loans, which are costly to pay in the long term. Always ensure that you regularly monitor your credit score, since if you allow your credit score to drop too low, then it may take a number of years for you to get it back to its desirable range.
3. Who Are The Major Credit Reporting Agencies In The US?
In the United States, there are three major credit reporting agencies, where most creditors submit their client’s payment history and personal information.
The information submitted include date of account opening, type of accounts, payment history for each account, late payments, unpaid child support, overdrawn checks, or any foreclosures, suits, wage attachments, liens and bankruptcies that are derived from federal and state agencies.
The major US credit reporting agencies include Equifax, Experian and TransUnion, independently operating from each other. So their records differ from each other. If you’re disputing any inconsistencies in your credit report, you need to send updates and corrections to each agency, because these agencies don’t generally share information among each other.

5 Ways You Can HURT Your Credit Score

Below may seem like small bumps on the credit highway, these actually help to slowly mangle your credit rating, and may significantly alter your plans of buying a new home, getting a new car, or paying for your child's college tuition.

Late Credit Card Payments and Large Balances
Late credit card payments not only burden you with additional surcharges and fees, but it can also put a black eye on your credit history. According to credit report experts, poor payment history accounts for 35% of your total credit score, and even a single late payment can quikcly chop-off 100 points from your score.

Unpaid Medical Bills Can Affect Your Credit Rating
Once these are turned over to a collection agency, the bad news will certainly be circulated aorund the lending community.

Non-Payment Of Apartment Rentals
Your landlord can actually report that he or she has evicted you for defaulting on your apartment rent, and this would surely send shivers down most property management companies and mortgage lenders.

Mounting Utility Bills Paint a Bad Credit History
While late payments on utility, cable TV and telephone bills are not often reported to credit agencies, a number of US states actually report these types of delinquencies to collections agencies.

Unpaid Library Fines And Parking Tickets
Today, most municipal and city governments are turning to collection agencies to salvage hese unpaid bills, especially if your dilly-dally on repaying them. For example, if a collection agency reports that you weren't able to pay overdue parking tickets or library fines, this could make your credit score drop by as much as 100 points.

5 Ways To Build Your Credit Score

Whenever you wish to get a loan, you need to know something about your credit score,which is a number that creditors look at to determine your viability to get credit.
Here are five innovative ways for building-up your good credit score history.

Get a Credit Card, And Pay Your Balance On Time
To get started in building up a nice credit score, get only one credit card for the moment.
Remember that the more credit cards you have, the more debt you'll end up with.
You need to be responsible with one credit first, before you insist on applying for a second or third credit card.
In addition, remember to pay your card's balance on time.
By paying your credit card's balance every month, this would indicate that you're capable of paying your bills, and will send a positive signal to most creditors and lenders.

Don't Ask For A Higher Limit From Your Credit Card Company
If you have a credit card, don't be tempted to call your credit card company and ask for a higher limit, because this can help ruin your credit score.
Next, don't open any extra credit card accounts, because by having an extra credit card, or by canceling the other one, you can do major damage to your credit history.
Also ensure that you don't transfer your balance from a card that offers high interest, to a card that offers a lower interest rate.

Pay-Off A Sizable Amount of Your Current Debts
Pay-off a sizable portion of your current debt load, since the more available credit you have, the more will your credit rating improve. Also have a considerable savings and checking account, as well as learn to regulate it too. Your creditors will view a well-managed bank account as a sign of stability.

Add Other Small Forms Of Credit
Once you've paid-off a large portion of your current debts, add other forms of credit, like get a small mobile phone contract, and pay it off every month. This may help to enhance your credit rating, and will also indicate that you're well-rounded when it comes to handling different forms of credit.

Dispute Any Errors In Your Credit Report
If you still haven't seen an exact copy of your actual credit history, get a copy now from the credit bureaus and analyze it properly as well as dispute any errors or numerical flaws. An incorrect report can actually deduct as much as 100 points from your credit score.

Individuals with good credit scores are often called “prime borrowers”, and these people are more likely to get special interest rates and other rewards from creditors.