Get Your Credit Report & Know Your Credit Options - Go to top

by: Brad Stroh. About The Author: Brad Stroh is currently co-CEO of Freedom Financial Network and www.Bills.com.

Get Your Credit Report & Analysis

It is very important to get your credit report and analysis. Why is this important? For one thing, if you're thinking about buying a house or applying for credit for any other big purchase, you'll need a clean credit report, and it's always best to get your credit report and analysis before your lender does. This will give you an opportunity to clean up any discrepancies or errors, which are fairly common, and which can throw a monkey wrench in the works if not resolved.

Ideally, you should get your credit report and analysis once a year with each of the three credit bureaus:

• Bills can get them all – http://www.bills.com/creditreport

• Equifax – (800) 685-1111, http://www.equifax.com

• Trans Union – (800) 888-4213, http://www.transunion.com

• Experian (888) 397-3742, http://www.experian.com

You're entitled by law to get your credit report and analysis for free from each of these three credit bureaus once a year. You can get all three at once or spread them out over the year. If you get your credit report and analysis more frequently than that, each report will cost no more than around $10 and in some states considerably less.

If you've been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get your credit report and analysis free of charge. Lenders are required by law to notify you of this right if they deny you credit.

When you get your credit report and analysis, review them carefully to make sure all the loans and credit accounts listed really belong to you, and that all the accounts listed as open are actually current loans or balances. If a loan you've paid off or a credit card that was cancelled is still listed as open, contact the credit bureau and ask for your credit report to be corrected.

What Is the Range of Possible FICO Credit Scores and What Do They Mean?

FICO credit scores range between 300 and 850. Ratings are as follows:

~ Excellent: Over 750
~ Very Good: 720 or more
~ Acceptable: 660 to 720
~ Uncertain: 620 to 660
~ Risky: less than 620

How Is My FICO Credit Score Calculated?

The formula used to calculate your FICO credit score includes information based on several factors:

~ 35% on your payment history
~ 30% on the amount you currently owe lenders
~ 15% on the length of your credit history
~ 10% on the number of new credit accounts you've opened or applied for (fewer is better)
~ 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

In general, when people talk about “your credit score,” they’re talking about your current FICO score. But in fact there are three different FICO scores developed by Fair Isaac—one at each of the three main US credit reporting agencies. And these scores have different names.

Will your scores be different?

FICO credit scores range from about 300 to 850. It’s important to get your credit report and analysis so you can understand what your FICO score is. Fair Isaac makes the scores as consistent as possible between the three credit reporting agencies. If your information were exactly identical at all three credit reporting agencies, your scores from all three would be within a few points of each other. But here’s why your FICO scores may in fact be different at the three credit reporting agencies. The way lenders and other businesses report information to the credit reporting agencies sometimes results in different information being in your credit report at the three agencies. The agencies may also report the same information in different ways. Even small differences in the information at the three credit reporting agencies can affect your scores. Since lenders may review your score and credit report from any of the three credit reporting agencies, it’s a good idea to check your!
credit report from all three and make sure they’re all right.

Usually when you get your credit report and analysis from the credit bureau it will include a form for reporting any inaccuracies. Give as much detail as possible, and if you have documents that back up your claim, provide copies. By law, the credit bureau must investigate your credit report claim, but even if they decide your credit report is accurate as it stands, you should continue to try to correct the report by writing a letter explaining your side of the story (not to exceed 100 words), which the bureau is required to provide to anyone requesting your credit report.

When deciding whether to approve credit, lenders take the following into consideration:

• Your payment history--do you pay bills on time?

• Have you had a bill referred to a collection agency?

• Have you ever declared bankruptcy?

• How much debt do you have outstanding compared to your credit limits? The closer your debt is to your credit limit, the less favorable.

• How long is your credit history? If you haven't had much of a credit history yet, prompt payments are even more important.

• Have you applied for more credit lately? Too many applications for credit has a negative impact on your chances for approval.

• How many credit accounts do you have? Too many is considered a negative.

Information is retained in your credit report for up to seven to ten years. When you get your credit report and analysis, if you have negative items in your history, you can gradually repair your credit by consistently paying your bills on time from now on, paying down your balances, and not taking on any new debt. Lenders will take your improved record into consideration when deciding whether to approve credit, especially if you've been paying on time for at least a year.

Funding A Business With A Bad Credit History - Go to top

by: Joe Kenny. About The Author: Joe Kenny writes for the Personal Loans Store, offering UK loans and also information on business loans in the UK. Visit Today: www.ukpersonalloanstore.co.uk.

Most businesses have a time in their life when they need funds in order to grow. What do you do, however, when you need the money to grow, but you also have bad credit? Many banks will not give a loan under such circumstances. It is considered a potentially bad risk. Today, there are actually a number of places where you can still get that loan you need. Here are a few things you can do to fund your business venture.

Starting A Business

If you are just starting a new business, as an entrepreneur, then getting that new loan is tied to your own credit ratings. If you have bad credit, the easiest way to get the loan you need is to get a secured loan. This means that you put up something as collateral for the financing. The only thing is, you want to be quite sure that you can pay off the loan, since your house (or car) is probably tied to it.

Higher Interest

An unsecured loan is also a possibility, but you probably will not be able to get as much (probably about half as much, or less) as with a secured loan. Loan agencies look at a credit rating as a reference of your likelihood to pay. If you show them some collateral, this will make them pretty happy. If you do not, you will not come away with as much money. But in either case, a bad credit rating will get you a much higher interest rate.

Loans Available

Although your bank probably will not give you the loan, there are many other agencies available that will. It will be easiest to find them through the Internet, and where you also have the convenience of applying online.

Do Some Comparison Shopping

You should apply for your business loan at a Website where you can get several offers from the same application. This will definitely simplify things. Otherwise, you will need to be filling out many forms - many times. It would be a real good idea to apply at more than one Website, too. Then, after you get the various offers, you need to sit down and take some time to determine which one you really want, and which one is most suitable to your financial situation and goals. By looking around, and not being in such a hurry, you probably can find a good loan with some rather decent interest rates and lower payments, too.

Check The Institutions Credibility

Before you sign the dotted line though, because you are so happy that they will fund your new business, you need to check out the agency to make sure it is a legitimate business. There is a whole lot of fraud going on these days and you don't want it to further effect your credit rating.

Build Your Credit Rating

The best loans, of course, come when you have a good credit rating. You may want to consider the possibility of taking out a small loan first, and pay it off quickly in order to start repairing that bad rating. Keep this loan small because it will have high interest, start to repair your rating, and then go for the bigger loan that has a lower level of interest. There are also other things you can do, too, to get your rating in a good condition.

Buying A Home With Bad Credit - Go to top

by: Steve Gillman

The worst thing about buying a home with bad credit isn't that it is that difficult. It is the fees and interest rates you'll have to pay for your home mortgage loan. Use the following techniques to repair that credit and so lower the rates you'll pay. If you can't take the time to do that, see part two for some other options.

Buying A Home With Bad Credit - Part One

If you have the time to do it, you can fix that bad credit, at least a little. This will not only make it easier to find a lender, but also get you a lower rate. Pay 2% less on that mortgage loan interest rate and you'll save more than $70,000 in interest over the years (based on a 30-year $140,000 loan). Here are some ways to fix that bad credit report.

First, see what's on it. To get access for free online, try a search for "free credit report." If you are denied credit based on a report from a local credit reporting agency, you can request a free credit report from that agency within 30 days. How do you fix what you see on the report?

If there is anything to dispute in the report, write a letter to the agency. Explain exactly what is incorrect, and they must investigate. Send copies of canceled checks or any other documentation by certified mail.

The agency has to (by law) contact the source of the disputed information. If they don't receive confirmation of the debt within 14 days, they have to delete the item, and send you an updated report. You can also demand that they send a corrected report to all creditors who received your credit report in the previous six months. This won't be done automatically, so be sure to demand it.

If the item is under $500, or over a year old, creditors often won't bother to respond. Thus, "fixing" a credit report is possible even if it is correct to begin with. You also have the right to dispute the item again after 30 days.

Longer-term, there are other things you can do to fix your bad credit. Stop charging things on credit cards. Don't have more than five credit cards. Keep balances to less than half the limits on the cards, even if this means transferring debt from one card to another. Stop making your credit score worse, and time alone will help (many items will be removed after seven years).

Buying A Home With Bad Credit - Part Two

Buying a home with bad credit doesn't mean you have to accept the high interest rates and fees of sub-prime lenders. You can buy a house in other ways. Here are some of them.

- Seller financing. Some sellers are willing to provide the financing for you to buy their home. Whether in the form of a "contract for sale" or an owner-carried mortgage, you may be able to make payments to the seller instead of the bank - and with no lending fees and lower interest.

- Lease option. If down payment is an issue, look for sellers willing to lease their house to you with an option to buy. Be sure that a portion of the lease payment applies towards the down payment for the home, and that you have enough time to prepare for the purchase. If, for example, only $200 of the rent applies towards the down payment, after two years you'll have just a $4,800 credit. Will that be enough? Will two years be enough time to correct your credit and save any additional money you'll need?

- Get creative. There are many creative ways to buy a home. In one case I know of, the landlord was anxious to move, so the buyer offered him full price and a decent interest rate for him to carry the financing, but with very little down. They closed in the first days of the month, so the small down payment came from the rents that were credited to the buyer. He moved into one of the units the following month.

- Reconsider your "bad credit." Limited income or a new job isn't the same as a bad credit score. Most banks won't even look at the income from your new business, for example, making it seem impossible for new business owners to get a loan. However, these days, banks really look at your credit score. If it is decent, you can get "no doc loans," which require no documentation of income.

You don't even need a job for these loans. A decent credit score - and nothing else - can get you up to 95% financing at many places now. Of course, depending on the credit score, the interest rate can be anywhere from 1/2% to 4% higher than conventional loans. Consider paying even higher interest to get a loan without fees if you will be able to refinance at a lower rate in the next year (perhaps once your new business hits that 2-year mark that bankers like to see).

Fortunately, buying a home with bad credit or even with no provable income, has become easier than ever.

Cash is More Powerful than Credit - Go to top

by: Tom Beeson. About The Author: Tom Beeson is a Consumer Financial Coach, writer, public speaker, and founder of Bright Pathways Coaching Center for Abundant Living helping families to achieve financial stability and wealth. He is well known for free weekly tips on abundant living. Readers are invited to signup at www.brightpathways.com.

Have you seen it? There is a new Visa commercial on TV. The setting is a busy deli where dozens of fast moving busy people are buying lunch. The sandwiches, sodas, lunch meat, veggies and condiments are flying through the air with the precision of a river dance. Everyone is happy as they approach the register to pay using a credit card. The pace is fast and well choreographed. Everything is going with incredible precision when suddenly a man approaches the register and pulls cash out of his wallet. Suddenly everything screams to an abrupt stop, people spill their food, several loud audible gasps can be heard and everyone begins to stare at this man in profound horror. The message: cash disrupts the fast pace flow of society.

Imagine for a moment that you and I are standing on a busy street having a conversation. I am holding a $20 bill in my hand. Come with me to that vendor over there and I will treat you to a latte or a coffee. Here is what will happen:

First, the vendor will smile. He will *-not-* have to pay a 1.5% + $.30 transaction credit card processing fee on the purchase we just made. If our coffee costs $8.97 and we pay with cash then the vendor will get to keep $0.43 that he did not have to pay to Visa, MasterCard or Discover. If everyone paid with cash, and 100 people purchased coffee a day, he would have an additional profit of $57.00 per day ($399 per week). But, don’t worry because the vendor already figured the cost of credit into your cup of coffee. He has no choice as long as Visa brainwashes you and me into thinking that cash is a punishment and credit is king.

Second, I would not have to pay 24% interest for a cup of coffee. Visa takes money out of the vendor’s pocket and then takes money out of my pocket. And because I like to entertain and let my coffee habit get away from me, I could be forced to carry the balance over until next month. Wow! I have never had a cup of coffee stay with me for that long. Combined with all the other purchases of yesterday, I have nothing left for tomorrow.

Third, I will enjoy my coffee the most because I don’t have to hassle with reconciling my credit card or bank statement at the end of the month. Cash is final. Cash is immediate. Cash is complete and the sale will not haunt me for ages to come.

And finally, I get my approval elsewhere. Not from a machine that blurts out the word “approved” as if my low self esteem needed a credit card machine to give me an ego boost. I have never been “declined” when paying with cash. Never embarrassed and never intimidated. I am thinking that Cash is far more powerful than credit.

So why would Visa pay such a premium to convince you that cash is a punishment for our society? Because, debt is a product. And a very profitable product at that. Think about the numbers I mentioned above. Ask your favorite vendor what they pay a month in credit card transaction processing fees. The amounts you hear will be very eye opening. Then ask your vendor for a discount when you pay with cash. I’ll bet he will gladly give you one! I gladly give cash discounts for all my customers.

Wow! Imagine if I bought my next car with cash? What would that feel like? I would be a king! And then imagine if I bought all my future cars with cash. Sound impossible? It is most certainly not! We only make it impossible because we have adopted a “gotta get a loan” mindset that sabotages our future wealth.

The New Debt-Free Mindset is sweeping the world. Will you embrace it? Or will you pay $469,520* in Interest over the next 37 years struggling to make ends meet and saving nothing for your future? This is the prevailing question of many financial planners today. Debt is the nemesis of retirement for the average American and as debt grows, retirement funds shrink to dangerously low levels.

Sobering Statistics

The average family pays $4,680 in credit card interest per year. The typical credit card will be paid off in 37 years if you only make minimum payments. Over 70% of American families today live paycheck to paycheck and never touch the principle on their overwhelming debt load. After 37 years these families will have paid $182,520 in credit card, car loan and student loan interest alone. Add another $287,000 of mortgage interest and these families will have handed $469,520 to the bank over their lifetime. Was it worth it? We now understand why debt is the most heavily marketed product in the world today!

So many people are sick and tired of the negative impact debt has on their lives that they are declaring war. Myths about debt are being dispelled everyday and people are adopting this new debt free mind set as their primary defense against poverty, bankruptcy, and personal disaster. Hope has been stolen from us and we want it back! King Solomon wrote the following words nearly 3000 years ago. Take a moment to think about them.

So next time will you pay with cash or with credit? Remember that rich people pay with cash, poor people use credit. Will you be poor or be rich?

Bad Credit Auto Financing - Go to top

by: Garry Chaples

Are you one of the many people who have credit problems? Bad credit is more common than you think! The good news is, more and more lenders are now targeting consumers with bad credit!

Even if you have bad credit, you can still qualify for an auto loan...and it's become easier and less humiliating now due to the wonders of the internet! You can apply online, and not have to put up with the unneeded stress of trying to get financed through the dealership!

Here's how to buy a vehicle if you have bad credit...

Set up financing before even stepping onto the car lot! You can get "pre-approvals" from many online lenders. This way you know when you walk onto the first car lot exactly how much you can spend, and how much your monthly payments will be! The lenders will approve you for the loan, and mail you a voucher that you give to the dealership once you work the deal on the car you want. You simply fill in the amount borrowed (up to your pre-approved limit,) sign, send your signed contract into the lender, and you're done!

In order to qualify for a bad credit car loan, lenders look at some specific things. They will want to see if you have sufficient income to cover your current bills, the loan payment you are about to commit to, as well as the costs of maintaining and insuring your new vehicle. Most lenders also prefer that you've held your current job for about a year, and that you've had a consistent home address.

It sounds a bit simplistic, but don't take on any more of a car payment than you can afford! Use this opportunity to rebuild your credit...make your payments on time, and when your credit situation improves, you can get your loan refinanced at a lower interest rate.

Like with any other buying situation, it is best to compare rates among different lenders. Be careful not to apply at too many places though, as too many credit inquiries will have a negative effect on your credit score. Should you need any recommendations, please go to http://bad-credit-lenders.net

Good Luck to you in that new car!

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