Credit, Credit & My Credit http://1888mycredit.com CREDIT REPORT, CREDIT SCORE & CREDIT CARD Sat, 07 Aug 2010 06:05:21 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Get Your Free Fico Credit Score http://1888mycredit.com/fico-credit-score/ http://1888mycredit.com/fico-credit-score/#comments Sat, 07 Aug 2010 06:05:21 +0000 admin http://1888mycredit.com/?p=537 We all know about our free fico credit score, and yet many people around the world use it to take advantage of the credit they receive from banks and other financial institutions. We all like the fact that it is so easy to get free credit the first time around, grant you have been working permanently . . . → Read More: Get Your Free Fico Credit Score]]> We all know about our free fico credit score, and yet many people around the world use it to take advantage of the credit they receive from banks and other financial institutions. We all like the fact that it is so easy to get free credit the first time around, grant you have been working permanently at a company for more than three months.

But then we go off on our little shopping sprees and buying basically enough merchandise to open up a store of our own, thus putting us in debt. This said it will be safe to say they we do not think of the consequences of maxing out our credit cards.

Many financial advisors say that you should be really careful when it comes to credit and credit cards, because we do not take into account that one day we will want to buy a home or buy a car, and if you have bad credit rating you will be turned down flat out.

A bad credit rating makes life really hard and a bad credit rating makes it really impossible for anyone to get credit from any company, including the tiny little clothing store on the street corner.

]]> http://1888mycredit.com/fico-credit-score/feed/ 0 What are Beacon Credit Scores? What do they mean? How do you read them? http://1888mycredit.com/beacon-credit-scores/ http://1888mycredit.com/beacon-credit-scores/#comments Wed, 04 Aug 2010 08:56:18 +0000 admin http://1888mycredit.com/?p=512 Beacon scores are the first thing most mortgage lenders look at when sizing up a borrower. Beacon Credit Scores are a single number that summarizes your credit situation and shows lenders what kind of risk you’re likely to be as a borrower. The name Beacon is actually a brand of credit score issued by Equifax, the . . . → Read More: What are Beacon Credit Scores? What do they mean? How do you read them?]]> Beacon scores are the first thing most mortgage lenders look at when sizing up a borrower. Beacon Credit Scores are a single number that summarizes your credit situation and shows lenders what kind of risk you’re likely to be as a borrower. The name Beacon is actually a brand of credit score issued by Equifax, the largest credit-reporting agency in Canada. Trans Union, another widely used agency, also issues credit scores under a different name.

Beacon Credit scores are based on a complex formula. They range from 300 to 900, with 700 being near average. Individual scores can change every month. While no one knows the exact formula (except the inventor, Fair Isaac Corporation), Beacon scores are roughly based on:

  • -Previous payment history (About 35% of score)
  • -Current level of indebtedness (About 30% of score)
  • -Length of credit history (About 15% of score)
  • -Number/frequency of new credit enquiries (About 10% of score)
  • -Types of credit you have (About 10% of score)

A high credit score is about 750 or above. This typically qualifies borrowers for the best possible rates and terms. A low score is below 620. In this case, you might pay a premium interest rate and find it harder to qualify for a mortgage. As of October 15, 2008, 620 will be the absolute minimum credit score for insured mortgages. That means you’ll need at least a 620 score to qualify for good rates on mortgages with less than a 20% down payment.

Keep in mind, the exact score needed depends on the type of mortgage you require. For example, mortgages for the self-employed, or for rental properties, often require higher scores.

Last but not least, there are several “Beacon-killers” to be aware of. Two things that hurt your score the most are payments over 30-days late (even on tiny balances) and maxed-out credit cards. If your credit is weak, however, don’t despair. There are several ways to re-establish your credit and improve your score. Two good resources on this and other credit questions are www.equifax.ca and www.transunion.ca .

]]> http://1888mycredit.com/beacon-credit-scores/feed/ 0 How to Understand a Beacon Score http://1888mycredit.com/understand-a-beacon-score/ http://1888mycredit.com/understand-a-beacon-score/#comments Wed, 04 Aug 2010 08:48:40 +0000 admin http://1888mycredit.com/?p=507 The term Beacon score refers to your credit score. It is often referred to as your FICO, which is an acronym for the credit score model developed by the Fair Isaac Corporation. Your credit scores tells the lending institution the probability of your paying your debt by the due date each month. The Beacon score is . . . → Read More: How to Understand a Beacon Score]]> The term Beacon score refers to your credit score. It is often referred to as your FICO, which is an acronym for the credit score model developed by the Fair Isaac Corporation. Your credit scores tells the lending institution the probability of your paying your debt by the due date each month. The Beacon score is a factor in determining your ability to secure credit. It also determines the interest rate  you will be able to obtain on your credit.

Step 1

Acquire your free credit report. You can obtain your credit report for free by visiting the Annual Credit Report website (see Resources). You are allowed one free credit report annually from each of the three largest credit report agencies. The three major credit reporting agencies are Experian, Equifax, and TransUnion.

Step 2

Understand the components of your Beacon score. Your credit score is based on a calculation as disclosed by the Fair Isaac Corporation. It is based on a number of factors with approximate weights given to each as disclosed by the FICO. Late payments, bankruptcies and collections, current debt, length of account existence, type of credit such as installment, revolving or finance company, and applications for new credit and inquiries all play a role in the calculation. As expected, late payments and current debt are heavily weighted in the calculation.

Step 3

Know a good credit score. From a minimum of 300 to a maximum of 850, there is a wide range in credit scores. In general, a credit score of 650 is considered to be the lowest credit score required to obtain a fairly good credit rate.

Step 4

Compare your credit score to that of the range. There is an inverse relationship between the credit score and cost of borrowing. That is, a higher credit score results in a lower interest rate or cost of borrowing. See the Resources section for the link to the Fair Isaac Corporation interest rates and credit scores.

Step 5

Obtain your credit report every 12 months to review for errors.

]]> http://1888mycredit.com/understand-a-beacon-score/feed/ 0 The new math of FICO credit scores http://1888mycredit.com/fico-credit-scores/ http://1888mycredit.com/fico-credit-scores/#comments Wed, 04 Aug 2010 07:34:56 +0000 admin http://1888mycredit.com/?p=504 Those with small blemishes on their record should benefit from the FICO 08 scoring change, while high-risk borrowers and those who “piggyback” are the likely losers.Even the most responsible borrowers slip up sometimes.

Maybe a utility bill went unpaid after you moved and the missed payment went into collections. Or perhaps there are unpaid library fines or . . . → Read More: The new math of FICO credit scores]]> Those with small blemishes on their record should benefit from the FICO 08 scoring change, while high-risk borrowers and those who “piggyback” are the likely losers.Even the most responsible borrowers slip up sometimes.

Maybe a utility bill went unpaid after you moved and the missed payment went into collections. Or perhaps there are unpaid library fines or parking tickets in collections that are hanging onto your credit history and affecting your FICO credit scores, which is widely used.

With the newest version of the FICO credit-scoring system, however, minor delinquencies are now overlooked in calculating creditworthiness.

Under the updated scoring model, called FICO 08, small missed payments lingering in collections with original amounts of $100 or less will no longer do damage to your credit score.

Consumers also are less likely to be penalized for any single delinquency if it occurred two or more years ago — and if their credit history is otherwise unblemished, says FICO (formerly Fair Isaac), which developed the FICO scoring system.

“There’s more flexibility with missing a payment,” said Careen Foster, the director of global scoring product management for FICO. “If you have a more habitual pattern of paying accounts late . . . you’re more likely to get penalized for that.”

If a consumer’s credit usage is high, that will be more likely to hurt his or her score with FICO 08. But getting close to your credit-card limits — even if you always pay on time — is penalized in some way in every FICO score, not only the recent edition, Foster said.

The new system has been available at all three credit bureaus — Experian, TransUnion and Equifax — since last month.

The changes were made to provide lenders with a better risk assessment of borrowers, said John Ulzheimer, the president of consumer education for Credit.com, a consumer education and advocacy site. FICO decided that one small library fine didn’t really predict whether a consumer was likely to default, for example.

With the changes, individuals who pose a low credit risk will probably see their scores rise a bit, and those who are high risk could see their scores drop, he adds.

FICO 08 also addresses “piggybacking,” a practice used by credit-repair companies to help people improve their scores, Ulzheimer said. In piggybacking, an individual pays to become an authorized user on a stranger’s account. The account holder gets paid for allowing the person to be associated with the account, and the new authorized user is able to improve his or her credit score.

“It was a practice to . . . misrepresent what your credit looks like to your bank,” Foster said.

FICO 08 aims to single out individuals who are named as authorized sources through deceptive means, Ulzheimer said. Those people won’t see their credit scores rise as a result. But the scores of legitimate authorized users will be treated as they always have been.

]]> http://1888mycredit.com/fico-credit-scores/feed/ 0 Raise your credit score to 740 http://1888mycredit.com/raise-your-credit-score/ http://1888mycredit.com/raise-your-credit-score/#comments Wed, 04 Aug 2010 07:30:56 +0000 admin http://1888mycredit.com/?p=502 As lenders continue to tighten credit requirements, getting a good interest rate — or a loan at all — requires that you understand how the scoring system works.

In our post-crisis economy, good credit isn’t just nice to have — it’s essential if you want to level the playing field with lenders.

Credit scores are three-digit numbers lenders . . . → Read More: Raise your credit score to 740]]> As lenders continue to tighten credit requirements, getting a good interest rate — or a loan at all — requires that you understand how the scoring system works.

In our post-crisis economy, good credit isn’t just nice to have — it’s essential if you want to level the playing field with lenders.

Credit scores are three-digit numbers lenders use to gauge your creditworthiness, and until the financial crisis hit, a 720 FICO credit score was enough to get the best loan terms. Even people with lower scores could get decent deals, and at the peak of the lending boom it seemed that no score was so low that it merited a rejection.
How to fix credit report errors

How to fix credit report errors
These days, lenders typically demand 740 scores for the best mortgage rates. Lower scores mean higher rates or perhaps no loans at all. Fannie Mae, the giant mortgage-buying agency, recently lifted its minimum score requirement from 580 to 620.

People with top scores are still getting credit card and balance transfer offers. If their issuers raise their rates or lower their limits, they can move their business elsewhere. People with weaker scores, by contrast, are finding their access to credit slowly strangled. Issuers can push them around, and credit seekers have little recourse.

* Check mortgage rates near record lows

Less-than-stellar credit can hurt in other ways. After all, credit information is used by:

* Insurance companies to evaluate applicants and set premiums.
* Landlords to decide who gets apartments.
* Employers concerned about higher risk of theft from those with troubled finances.

Clearly, cultivating good credit scores is an essential 21st-century skill.

]]> http://1888mycredit.com/raise-your-credit-score/feed/ 0 The truth about free credit scores http://1888mycredit.com/free-credit-scores/ http://1888mycredit.com/free-credit-scores/#comments Wed, 04 Aug 2010 07:27:37 +0000 admin http://1888mycredit.com/?p=499 Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now 3 sites offer free peeks at those scores, but how helpful are they?

Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now 3 sites offer free peeks at those scores, but how . . . → Read More: The truth about free credit scores]]> Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now 3 sites offer free peeks at those scores, but how helpful are they?

Though the credit bureaus must give you free annual reports, their important numbers will cost you. Now 3 sites offer free peeks at those scores, but how helpful are they?

Consumers are entitled by law to free credit reports– which are simply records of your borrowing and repayment history — but the numerical scores derived from those reports will cost you, in part because credit-reporting agencies aren’t required by law to provide them for free to consumers along with the reports.

Now a handful of company Web sites give consumers at least free glimpses at their credit scores. The sites — Credit.com, Credit Karma and Quizzle — offer a window into the key factors that go into calculating your scores, what you can do to improve them and how your credit stacks up against other people’s. Last week, for example, Credit.com launched free credit report cards that show consumers how they’re likely to rate across five credit-scoring models.

All three sites, which have ties to the credit industry, aim to make money through advertising or through fees if users sign up for products offered on the site, such as credit-monitoring services, credit cards or mortgages.

As banks clamp down on lending, it’s become more critical than ever to know your credit scores. Financial institutions use them to determine the granting and pricing of everything from credit and insurance to cell phone use and, in some cases, employment.

]]> http://1888mycredit.com/free-credit-scores/feed/ 0 Unused credit cards can hurt you http://1888mycredit.com/unused-credit-cards-can-hurt-you/ http://1888mycredit.com/unused-credit-cards-can-hurt-you/#comments Wed, 04 Aug 2010 07:19:36 +0000 admin http://1888mycredit.com/?p=496 Question: I have four credit cards. One for work expenses, one for personal expenses, a specific store card and then one other. This other card does not get used and has a zero balance. Does this hurt my credit scores to have this credit card with zero activity? Would it hurt my . . . → Read More: Unused credit cards can hurt you]]> Question: I have four credit cards. One for work expenses, one for personal expenses, a specific store card and then one other. This other card does not get used and has a zero balance. Does this hurt my credit scores to have this credit card with zero activity? Would it hurt my credit scores more if I closed this account?

Answer: If your primary goal is maintaining your credit scores, you should leave that extra card open — but not unused.

Based on the list of cards in your wallet, I’d guess the card with zero activity is one you keep in case of emergencies. Having an emergency card is a smart move, since that plastic could come in handy when an unexpected event catches you without enough cash.

Therefore, unless that extra card is causing legitimate problems — such as charging you an annual or inactivity fee, causing excessive temptation to spend or posing identity theft concerns — there probably isn’t a good reason to close that account. After all, “a zero balance on a credit card account won’t hurt your FICO score,” but closing an account could, says Craig Watts, a spokesman for Fair Isaac, the company that created the most commonly used credit score.


]]> http://1888mycredit.com/unused-credit-cards-can-hurt-you/feed/ 0 Information About Credit Report Disputes http://1888mycredit.com/information-about-credit-report-disputes/ http://1888mycredit.com/information-about-credit-report-disputes/#comments Tue, 03 Aug 2010 08:44:57 +0000 admin http://1888mycredit.com/?p=492 The Federal Trade Commission had formulated and enforced Fair Credit Reporting Act (FCRA), a US federal law in 1970. This act along with Fair Debt Collection Practices Act (FDCPA) forms the foundation of consumer credit rights in the US.

FCRA regulates the compilation, distribution and use of consumer information, including consumer credit . . . → Read More: Information About Credit Report Disputes]]>

The Federal Trade Commission had formulated and enforced Fair Credit Reporting Act (FCRA), a US federal law in 1970. This act along with Fair Debt Collection Practices Act (FDCPA) forms the foundation of consumer credit rights in the US.

FCRA regulates the compilation, distribution and use of consumer information, including consumer credit information. These credit reports are compiled by three credit bureaus. They contain information about you and how you paid your bills. You can submit a Report to FCRA should you find any discrepancies in the report.

You are legally entitled to one free copy of the credit report from each of the credit bureaus annually. You can acquire a copy of the report from them and evaluate it thoroughly for any mistakes. FCRA gives you the right to dispute any information that you find wrong in the report.

How to file a Credit Report Dispute

First and foremost you must alert the bureau and the information provider of any incorrect information in writing.

All such documents that support your report should be included with your dispute. You may include photocopies of the supporting documents and keep the originals for further reference. These documents can consist of bank statements or cancelled checks and/or any such financial documents.

In your report, include your name, complete address, the information you are disputing, and the reasons why you are disputing. Sending your dispute via certified mail with return receipt request will ensure a proper proof of your sending the statement as well as it reaching the bureau.

What will the bureau do?

It is mandatory for the bureau to investigate your complaint and reply in 30 days with the results of the investigation. The bureau sends whatever report you sent them to the information provider to scrutinize. If there is any change in your credit report after this, the bureau will send you a free copy of your report. You may request them to send a copy of the corrected report to the companies that accessed your credit report during the last six months.

It is pertinent to mention here that if your credit report is inaccurate in one bureau’s report it will have inaccurate information in the other two bureaus also. Hence, you must contact the other two bureaus to get corrected reports from them as well.

Want your bad credit to be repaired or have a dispute with your credit report? Get free help by our Credit Report Dispute Attorney

]]> http://1888mycredit.com/information-about-credit-report-disputes/feed/ 0 Bankruptcy Credit Report – Overcoming a Negative Credit Score http://1888mycredit.com/bankruptcy-credit-report-overcoming-a-negative-credit-score/ http://1888mycredit.com/bankruptcy-credit-report-overcoming-a-negative-credit-score/#comments Tue, 03 Aug 2010 08:42:39 +0000 admin http://1888mycredit.com/?p=489 The process of filing for bankruptcy protection should not be taken lightly if you are considering this as an alternative for dealing with your current debt situation. While filing for bankruptcy provides a legal option for many to avoid collection agency harassment, it is also a solution that has negative repercussions for . . . → Read More: Bankruptcy Credit Report – Overcoming a Negative Credit Score]]>

The process of filing for bankruptcy protection should not be taken lightly if you are considering this as an alternative for dealing with your current debt situation. While filing for bankruptcy provides a legal option for many to avoid collection agency harassment, it is also a solution that has negative repercussions for many years to come. A bankruptcy credit report is not appealing to creditors and employers who may use your credit report to determine your personal character. Therefore, bankruptcy must be considered a last resort solution after other options are carefully weighed.

The Impact of a Bankruptcy Credit Report

When your bankruptcy is filed and approved by the courts, this action is reported to all credit bureaus and can remain on your report for up to 10 years. You cannot request that a bureau remove the bankruptcy from your report. Bankruptcies are viewed even more negatively than charge offs, delinquencies or collection accounts. Additionally, your score could drop more than 100 points. Many people are not aware that not all debt qualifies to be discharged during a bankruptcy. These include taxes, student loans and child support. Continued late payments on any of these items will have further negative impact.

Life after a Negative Report

A Chapter 7 or Chapter 13 can make it more difficult for you to buy a home, obtain credit or insurance. Any credit extended to you will come with high interest rates. It is also an embarrassment to admit ones inability to pay debts. However, it is more important to learn from past mistakes and gain financial knowledge to make better choices in the future.

A low credit score after a bankruptcy is not the end of the world. It is possible to maintain a positive report and strengthen your position to deal with future financial matters. For many, bankruptcy can be a path to a fresh start by not having the burden and stress of a lot of debt. Repeat bankruptcy offenders who try to abuse a system designed to help may never learn from their mistakes.

Rebuilding a Negative Bankruptcy Credit Report

It will take time to rebuild a positive credit history and clear your report of any negative items. Many are able to do this by getting small amounts of credit and responsibly repaying the bills on time. Secured credit cards with low limits are another way to try and rebuild good credit. Monitor your progress periodically to help you stay on track.

Read more information about How To File Bankruptcy and bankruptcy credit scoring at => http://www.howtofileyourownbankruptcy.com

]]> http://1888mycredit.com/bankruptcy-credit-report-overcoming-a-negative-credit-score/feed/ 0 Disputing Credit Report – A Guide to Improving Your Score http://1888mycredit.com/disputing-credit-report-a-guide-to-improving-your-score/ http://1888mycredit.com/disputing-credit-report-a-guide-to-improving-your-score/#comments Tue, 03 Aug 2010 08:36:31 +0000 admin http://1888mycredit.com/?p=487 The concept of credit reports in many cases can become complicated to some people. Despite the fact that several individuals have an understanding of the process, it is still very confusing to millions, especially when they are faced with a lot of financial debts. The biggest reason for this is the fact . . . → Read More: Disputing Credit Report – A Guide to Improving Your Score]]>

The concept of credit reports in many cases can become complicated to some people. Despite the fact that several individuals have an understanding of the process, it is still very confusing to millions, especially when they are faced with a lot of financial debts. The biggest reason for this is the fact that most times the credit reporting agencies tend to be silent about the methods associated with their operations. But, for those you need help, this guide to disputing credit report is specially designed for you.

More often than not, there are times when individuals end up being lost with the handling of the entire process. But, although this procedure might be challenging, it is very important for you to dispute credit errors whenever they are discovered in the report. You would be surprised to the many different reasons why this report need to be correct at all times, it might mean nothing to you at the moment but can become vital in the future. We all know that the disputing of any claim on a report is not the simplest procedure in the world, yet it is something that has to be carried out. Besides, it is necessary to do as early as possible and ensure that all the details in the report are precise.

However, before you make an attempt to dispute anything in the credit report you first have to obtain a duplicate to review the document carefully. This can easily be retrieved from any of the credit bureau agencies and after reviewing the information and facts, you should make a note of all the errors that you might find. In the event that you discover an item that you think is incorrect, then follow the guide to disputing credit report and know how to take any action if necessary. If not, you will be taking a risk and the wrong information in the report could impact negatively in the future if you happen to make applications for any type of loan.

This is not a process that you can simply take up the phone or log on to the internet to solve; there is a process that has to be followed. The procedure entails the writing of a letter which states the error that was found in this credit report. Besides writing this letter, you will need supporting records to submit alongside which would include evidence of the claims. After that, the credit bureau may request the credit card provider or anyone who provided the details to perform in the investigation.

Additionally, you must make contact with the individual that provided the information toward your credit report initially and inform them you had written a letter and send to the credit agency. After that an investigation is going to take place that will ascertain if the details need to stay or be eliminated from your report. Even though it might be painful to do this, it is an important procedure that has to be done if you really want to preserve a good credit score.

Presently there are a number of resources available on the internet for people who need guide to disputing the credit report. Doing any form of research is good these days, especially when you are protecting your rights and money.

Colin Scott is credit repair expert. For more great tips on disputing credit and finding legal help and assistance when disputing credit report visit any of the links in the authors bio.

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