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Your Credit Score and Getting a Mortgage

Poster — Mon, 19 Apr 2010 14:49:26 +0000

Your credit score and your ability to get a mortgage are intertwined, though having a poor credit rating will not necessarily preclude the purchase of a home. However, it is more difficult at this time to get a mortgage if there are too many negatives concerning your credit.

Lenders use something called a FICO (Fair Isaac Corporation) score developed by the individuals the score is named after. The final decision on whether a mortgage is granted is the decision of the lender but they will look closely at the FICO score. A score of 500 out of a possible 850 is considered low, though a mortgage might be obtained. The borrower will have to provide additional financial information such as W-2 forms, bank documents and the interest rate charged will be higher than that of someone with exemplary credit. The borrower will be in a category called “sub-prime.” If you feel there is an error concerning the FICO score, consult the 3 rating agencies. It is not abnormal for the 3 credit agencies to have entirely different ratings for an individual.

Lenders tailor the FICO score to their specific standards. A score above 620 is considered good. Above 720 is considered excellent. If the FICO score is low and cash is available, it would help the case by putting down more than 20% of the price of the home. This signifies that you have “skin in the game,” meaning there is a vested interest in maintaining regular mortgage payments. If not, this money can be forfeited.

Before purchasing a home it is up to the buyer to have corrected any misinformation the credit rating agencies have and to have made efforts to improve the credit rating. This should have been done by paying bills promptly and early. Paying more than the minimum due on credit cards is a must.

Find out where you sit and get a mortgage quote from Providence Home Lending today.

Credit Repair Law Firms

Poster — Fri, 26 Mar 2010 21:10:22 +0000

Your credit score can dictate the way you are able to live your life. It can have a say on the kind of house you are eligible to buy, and the model and make of car you eventually drive. It can even make or break your potential for gainful employment. Maintaining an exemplary credit history is more important now than it ever was, as the information found on your credit reports can affect so many of the important events in your life.

If you find yourself with a less than stellar credit score, you can still remedy this problem by hiring the services of a credit repair law firm to help you fix your credit history. There are a good number of these kinds of law firms on the Internet that have been helping many people take away many of the negatives found on their credit report. This is particularly true for people who have become victims of erroneous credit annotations, and are looking to finding a solution to their surprisingly poor credit history.

In 2007 alone, as many as 600,000 negative entries were removed from poor credit reports, and these removals were achieved with the help of credit repair law firms. The removal of these negative annotations enabled many people to find good jobs, buy a car, purchase a home, or take out a mortgage.

If you are unfortunate enough to have a poor credit rating through no fault of your own, it may be advisable to hire a credit repair firm to review your credit history and help you track down any erroneous annotations on your credit report that have been dragging down your financial life thus far.

Shop around for a reliable credit repair law firm from among the many that advertise on the internet. You are sure to find one that will assist you in clearing your name and your credit history to your benefit.

How Do Banks Determine Your Credit Rating?

Poster — Fri, 12 Mar 2010 05:03:40 +0000

Your credit score is more important than you may realize. Until the time comes that the credit score determines whether they can buy a house or a car, most people never even think about their credit rating. Now that we realize that it is important, what exactly goes into deciding what it should be? Basically, your credit rating is your credit performance reduced to a single number that indicates how responsible a borrower you are.

Lenders use this number to calculate how much of a risk they are taking when they loan you money. There are several different things that are taken into account when your credit score is decided. Above everything else, your ability to pay your monthly statements on time is the most important factor of your credit rating. If you are habitually late, your credit rating will drop quite a bit, but your score can take a hit from as little as a single late payment. It does not matter if all that you can afford to pay each month is the absolute minimum. If you want to maintain or improve your credit rating, you absolutely cannot miss a payment.

The next aspect of your credit rating is just how much credit is currently available to you. They will take the credit limit from each line of credit that you have available and add it up to determine your maximum credit. They will then compare this number to how much credit you are actively using. When you are only using a portion of the credit that you have available to you, it is taken as a sign by the lenders that you are a responsible consumer and that you are unlikely to get in over your head. This makes them feel safer in lending you their money. Using less than 50% of your total available credit at any given time will help you keep your credit rating high, and reducing the amount of credit used to a level below 50% will help improve it.

The remainder is made up as a factor of not only how long your lines of credit have been open, but how wide the variety is. The best way to keep your credit rating as high as possible is to avail yourself to a number of different types of credit. Otherwise, if you need to find a loan that requires no credit check, unsecured loans for small amounts are available.

Visit http://www.cheapunsecuredloansguide.com/ to learn more about loans and credit.

Credit Report Repair

Poster — Wed, 17 Feb 2010 07:22:44 +0000

Do you have bad credit? Is there currently inaccurate information on your credit report that is hindering your ability to obtain credit? There are many ways to fix your credit and the best way is to do it yourself. The reason for this is because it’s easy and free, well except for some postage. If you’re reading this article it will be a good starting point on fixing your credit.

Do you already have a company in mind that you can trust to fix your credit at a reasonable price? Before you make any decisions continue to read this article and gain as much FREE information as possible. Also, try and educate yourself about your rights and the laws of legal credit repair. One thing you must always keep in mind is that credit reporting agencies are not government agencies or affiliated in anyway.

However, they do have a relationship when it comes to consumer protection laws. These companies are for profit multi billion dollar businesses that make their money by obtaining and selling your private information. In addition, they are selling your credit information to creditors, insurance companies, and anybody and everybody that could potentially solicit you for offers. They are also known for selling your credit information to telemarketers and marketing companies all without your permission or knowledge.

Furthermore, errors on consumer’s credit reports across the country are openly admitted but yet they have no interest in fixing them. Do you think they care what they have reported about you, or how it may affect you and your family? Absolutely not! They have no interest in your credit or good name because your not who pays them the big bucks. These credit agencies will go around reporting whatever they think is right until a consumer like you notices an error and demands that it be fixed.

Repairing your credit report is not fun but it is certainly doable. It is more time consuming than anything. Therefore, if you don’t have the time and have the extra money a credit repair company might be right up your alley. However, if it’s not then all you need to do is start writing letters to the credit bureau who is reporting inaccurate information and demand it be corrected. I know this article doesn’t have all of the answers but hopefully you have a good start to research a little more and get your credit fixed.