Archive for November, 2008
Monday, November 10th, 2008
How To Maintain an Excellent Credit Score?
If you wish to maintain an excellent credit score, you have to be consistent with your payments. You also have to keep an eye on your accounts to make sure nothing fraudulent happens. A good credit score acts as an assurance that the individual is reliable to deal with and that he/she would make payments on time without delay.
Lenders like banks, credit card companies and mortgage companies depend a lot on credit scores to determine the financial stability of a person. Lenders prefer good credit scores for lending money or deal in finance. A good credit score gives the lender confidence that the individual is reliable and that he/she would make payments on time. Your credit score is based on different factors of your credit history. The credit bureaus calculate your score according to FICO standards. If the score is high enough, the lenders will process the application, otherwise it will be rejected.
If you wish to maintain your excellent credit score, you have to be consistent with your payments. You also have to keep an eye on your accounts to ensure on one is performing fraudulent activities on your accounts to damage your credit record. Below are a few simple tips on how you can maintain a good credit score:
*Always make your payments on time. If you do so, such a record will make up 35% of your total credit score. If you make late payments repeatedly, your credit score will definitely go down. This will hurt your credit status in the long run.
*Always try to stay below your credit limits. As you get close to your maximum credit limit, make your payments to avoid cut downs in your credit score. If you keep your debt to credit ratio low, your score will stay high.
*Don’t apply for loans or credits too frequently. Having too many credit lines will make things hard to manage, and can jeopardize your credit and even financial stability. Having less loans, especially when you don’t absolutely need the extra ones, leads to a higher score. If you follow these simple tips, your fico credit score will quickly raise to higher levels.
Though credit bureaus such as Equifax use the standard FICO method to calculate your score, lenders may use different scoring methods to calculate your credit score, but generally they use the fico standards.
The standard scale of points of FICO credit scores ranges from 300-850. Of these, those having a score higher than 700 points are considered to have excellent credit scores. Those having 600-699 are thought to have good credit scores. Therefore, on average, creditors consider scores above 600 as good candidates to provide loans or credits to. They also consider people who have 500 or above points, but may charge them a little extra interest. People having a score of 499 or less have bad credit and cannot get loans from lenders as easily.
Though FICO is still regarded as one of the main parameters of calculating a credit user’s credit score, a new model is quickly emerging to the top. This new model, called Vantage Score, is slowly catching up the masses as another unique scoring model. The three major credit bureaus Equifax, Experian and TransUnion have made large contributions to the development of this model. Its scoring ranges from 501 to 990 and the scoring will have letter grades from ‘A to F’. Those having the grade C are considered as having good credit scores. Thus we can expect that pretty soon new standards will come into account to calculate your credit score.
For more information please visit us at http://www.howtoestablishgoodcredit.com/free_credit_score.htm
Monday, November 10th, 2008
How to Get a Free Instant Credit Report?
Getting a free instant credit report is very easy now. After the FTC’s final ruling under the Fair and Accurate Credit Transactions Act (FACTA) it is now required that all three credit bureaus -Equifax, Experian and TransUnion provide a free copy of the requestor’s credit report upon his/her request. With online access, toll free numbers and postal addresses individuals can apply for instant credit report quite effortlessly.
Credit report which is actually your credit history has never been so easy to get. With online access, toll free numbers and postal addresses individuals can apply for instant credit report in a quite straightforward manner. If you are really in hurry, you can get it in minutes from the website of the authorized bureaus. Free instant credit report is provided by any of the three major credit bureaus. The credit report which is basically annual report of your credit history gives you the detailed information about your financial position in your credit dealings. A good credit report is important if you are looking to purchase or take a loan which is quite big and expensive. A healthy credit score report is important to impress the bank or the lender who you applied for money.
It is not necessary that you request your annual credit report only when you apply for a loan or when you have been rejected by a lender based on bad credit. The increasing fraudulent activities and violations of privacy have made people more conscious about their credit accounts. You can request for a copy of your free credit report from any of the credit bureaus to check your credit report and access it for your desired purpose. You will have three free credit reports in a year; one copy from each of the credit bureaus.
Since 2005, you have the right to view your credit report once a year from each of the three bureaus for free according to the Fair and Accurate Credit Transactions Act (FACTA) as FTC’s final ruling. Based on this new law it is required for all the three credit bureaus -Equifax, Experian and TransUnion to provide, upon request, a free copy of one’s credit report every 12 months. According to this act, there must be a centralized source to process the requests and the source must have a website, a toll free phone number and a postal address where consumers can apply for their credit history. Initially there was strict prohibitions on disclosure of credit reports, but now regulations have become lenient enough that you can have free instant credit reports online. You get it in minutes, download it and access your credit report.
The process is quite simple and designed for end users. You just need to know some credit account numbers to request your annual report. For verification you have to furnish some important personal information. You sign up online, furnish the necessary information, and in moments the report is available to you. But you need to be cautious while you browse the web to take advantage of free online credit reports.
The benefits of an online, instant credit report are numerous. It is extremely useful and you get your report in no time. If you are going for a home loan shopping, it might be best for you to quickly obtain your credit report so that you know your credit worthiness and talk to a lender about your plan for a credit. Since you would be dealing online, it is important that you deal with the companies which are authorized to give you free credit report instead of companies which make empty promises without ever fulfilling them. Some even try to steal personal information from the consumers to take advantage of. Be skeptical to mails which advertise free instant credit reports.
For more information please visit us at http://www.howtoestablishgoodcredit.com/free_credit_score.htm
Monday, November 10th, 2008
Free Annual Credit Report: Keep Your Credit Reports Free from Fraud
The free annual credit report provided by each of the three major credit bureaus enables a person to access her financial status once each year, and make improvements to keep her credit score high. The report helps consumers prevent unauthorized activities carried out by frauds in individual’s credit history.
According to Federal law, each of the three major credit bureaus is required to provide you with a copy of your free annual credit report upon your request. It has become incredibly important to obtain those three free credit reports every year and review the information not only to track your financial credit score and improve it to a healthy status, but also to ensure that you are safe from fraudulent activities and identity theft. Because of these risks associated with your credit score, it is advisable that you request your annual credit reports for free from each of the three bureaus throughout the year, like every four months rather than requesting for all of them at the same time. Since each bureau has the right to issue you one free credit report only once a year, you can have three reports overall from the three national bureaus.
Based on Federal law, you are entitled to have a free copy of your credit report if by any chance you have been denied a loan or credit by a company. The company or lender processing your credit application, must furnish you with the name and contact information of the credit bureau from where they obtained your credit information from. Once you have the contact information of this credit bureau, you can use the information of your rejection within 60 days to obtain a free credit report.
To obtain an annual credit report has been the advice of all financial advisors and managers because the credit reports enable the customers to have control over the accuracy of their credit histories. When you can have three free credit reports, you can keep your credit score high and free from fraud.
In the past it would cost a consumer to have an annual credit report for $9. Thanks to the new federal law, it is now obligatory to each of the three bureaus to provide a free credit report, upon request of the consumers. This step has been taken to control credit fraud and identity theft, to improve credit conditions and to enable the general public to keep an eye on their own reports and to provide better credit management opportunities to the consumers. Now you can track your credit and monitor your credit reports to see if any unauthorized activities occur on any of your charge cards, bank accounts or other financial resources. The free report helps the consumers protect their credit report from fraudulent activities which may threaten their financial stability.
The Internet has made things much easier for consumers now. You can request for your free annual credit report from any of the three credit bureaus and download it for free online. You just have to visit the site of the bureau you wish to use to obtain your credit report and follow the instructions to receive your free credit report.
For more information please visit us at http://www.howtoestablishgoodcredit.com/free_credit_score.htm
Monday, November 10th, 2008
Fico Score: How To Raise Yours
Your fico score is actually the credit score that is derived from the free credit report that you can request from any of the credit bureaus. The score represents your credit history, your payment regularity and other aspects of your financial responsibility. Try to manage your fico score to avoid hassles in future credit dealings.
FICO score is used to determine the creditworthiness of a credit user. The lending industry relies a lot on the Fico score and hence it becomes essential for all credit users to maintain a good credit score and credit report. In simple words your FICO score lets a lender assess your ability to pay off your credit. This standard score is looked at by almost all lending companies, banks and other financial institutions. The FICO score is a credit score which has been developed by the Fair Isaac Corp. Fico score refers to the credit score derived from free credit reports which you can request from any of the three major credit bureaus once a year.
When one applies for credit, the lender will obtain the credit report of the applicant from a credit bureau. The bureau would prepare an annual credit report and calculate the fico score based on the standardized method developed by Fair Isaac Corp. Based on the fico score the lender would determine if you are worthy to get a loan. The fico score ranges from 300-850 and those who have a current score of 600 or higher are considered by the lenders as good credit users who are good at making payments on time. Those who score 499 or less are considered to have bad credit. But to have a low fico score doesn’t mean that you are not eligible for loans. There are lenders who would provide you low credit score loans based on the assets you have, your employment status considering that you might also have to pay higher rates of interest.
How to raise your fico score?
Raising your fico score requires time and planning on your part. You cannot think to increase it just days before you decide to apply for a loan or mortgage. To keep your fico score at good positions you have to be consistently on time with your payments. Pay your bills on time, always keep your credit card balance below 30% of your credit limit and pay off the old negatives which are on your credit report. If you stick to these basics, your fico score will always be impressive and you won’t have any problem with your lenders in the near future if you apply for a loan.
By federal law, you are entitled to have a free copy of your credit report if by any chance you have been wrongfully denied a loan or credit by a company. The company or the lender you applied for credit must furnish you the name and contact information of the credit bureau from where they obtained your credit information from. Once you have the contact of this credit bureau, you should contact them within 60 days using the information of your rejection, ask them to correct the wrong information on your report, and then obtain your credit report after the correction was made. This report is actually yours for free. The credit bureaus calculate your score and provide all information to the lenders who seek your credit report.
You can apply to obtain your fico score online. You can request a free annual credit report from any of the three credit bureaus and download it for free. You just have to visit the site of the bureau you wish to request your credit report from, and follow their instructions to receive free credit report.
For more information please visit us at http://www.howtoestablishgoodcredit.com/free_credit_score.htm
Monday, November 10th, 2008
Credit Report: Take Control of Your Credit Today
A credit report helps a person to understand, to some degree, the process of financial lending. Obtaining your free credit report is a very good way to manage your credit. Credit report is an important determinant of a credit user’s financial accountability. These reports are mostly used by lenders to judge an individual’s credit worthiness.
Lenders assess the amount of risk associated with you as their customer, using the information your credit report gives them, including personal information like name, date of birth, Social Security Number, etc.
The report would include your previous addresses, your employer’s details, public records like if you had bankruptcies, judgments or liens. But what matters most to lenders in your credit score is the record of your credit card payments, mortgage and loan history and their repayment details. They try to find out if you have a good credit score or a poor credit score before they lend you a loan.
In the past it was not so easy to have credit reports. People had to pay to get credit reports from credit bureaus. Thanks to the new federal law which makes it obligatory for the bureaus to provide an on demand free annual credit report to each consumer. This step has been taken to bring credit thefts under control, by allowing each person to check his credit report, free of charge, for unusual activities, to improve credit conditions and keep an eye on the reports and have a better credit management.
Now you can track your credit report and monitor credit reports for unauthorized activities that might be happening under your name, with your credit cards, bank accounts or other financial resources. The free report helps the consumers to protect their credit from activities which could ruin their financial future.
It is not necessary that you request an annual report of your credit only when you apply for a loan or when you have been rejected by a lender based on a bad credit score. The increasing fraudulent activities and destructive invasions into private accounts have made people more conscious about their credit accounts. You can request a free credit score from any of the credit bureaus to check your credit report for absolutely any reason you might have in your mind. This free credit report enables you to take better charge of your credit. You can personally evaluate your own payment details, observe where you have made mistakes that lowered your credit score, and if any fraudulent activities are being carried out in any of your accounts without your knowledge by any person or company.
Using your free annual credit report, you now have one annual free access to a copy of your credit report from each of the three major credit bureaus- Experian, TansUnion and Equifax. You can check your account details quarterly in a year and thus keep a close eye on your accounts. An evaluation of your credit report also helps you maintain a good fico score. You can find out where you made late payments, and which of your accounts are in good standing and which are not. Such an evaluation will help you overcome your mistakes, improve your present credit accounts and have a good score in the future. Free credit report is a very good way to manage your credit and lead a stress-free and prosperous life.
For more information please visit us at http://www.howtoestablishgoodcredit.com/free_credit_score.htm
Saturday, November 8th, 2008
New interest-free loan for (some) first time buyers
People can have a financial crisis at anytime and to meet the crisis one might need to approach the financial institutions for taking a loan. Anyone who spends a little time for learning on the multiple types of loan can easily manage to get loans at a low interest rate. One who has adequate knowledge on this field can also manage to get interest free loans.
Sadly, on closer inspection, it appears that those suspicions were well-founded - there are indeed a few catches. Firstly, you have to be a key worker (a teacher or health worker for instance), live in London, the South East or East Anglia and your household income can’t exceed £60,000, or you might have been nominated by your local council as being someone in ‘housing need’.
So, if this still sounds like you how exactly do you get your hands on this fifty grand wedge? Well, I should point out that £50,000 is a hypothetical figure; the amount is actually equal to 17.5 per cent of whatever the house price is so on a £300,000 property (the average house price in London is currently £336,000) you’d qualify for £52,500. It should also be made clear that the 17.5 per cent will remain fixed so you’ll have to pay back the same percentage of whatever the sell-on price turns out to be, which will ultimately end up eating into any profit you make.
Before you start thinking about any of that though you’ll need to find out if you’re actually eligible which means applying with a local housing association. This is where things become slightly unclear; there is a feeling that, with a question mark over exactly how much money the government is making available for the scheme, the number of homebuyers who are eligible might necessarily end up being rather limited. It seems these new equity loans aren’t actually being allocated any extra funding beyond the existing, widely criticized HomeBuy scheme introduced to help key workers afford mortgages by contributing 12.5 per cent of the loan.
Apparently the criteria for eligibility will be the same as the original HomeBuy scheme but if the governments guarded approach to clarifying exact details is anything to go by it seems more than likely that funding won’t meet the potential demand, especially if no additional money is being made available.
If you’re a young professional considering a mortgage but aren’t eligible for government assistance there are mortgage deals out there that recognize future earning potential even if your income isn’t currently that high, like Alliance and Leicester, who allow you to take out loans between £5,000 and £100,000 over terms between 5 and 25 years and provide the helping hand of a mortgage calculator, to help keep your payments in check.
For more information please visit us at http://www.alliance-leicester.co.uk/mortgage-information/repayment-mortgage-calculator.aspx
Saturday, November 8th, 2008
New interest-free loan for (some) first time buyers
A person might need to take loans from the financial institutions in case of a financial emergency. One who has a proper knowledge of taking loans can get loans at the lowest rate of interest. If a person spends little time for searching about the loan plans then he can easily get an interest free loan.
Sadly, on closer inspection, it appears that those suspicions were well-founded - there are indeed a few catches. Firstly, you have to be a key worker (a teacher or health worker for instance), live in London, the South East or East Anglia and your household income can’t exceed £60,000, or you might have been nominated by your local council as being someone in ‘housing need’.
So, if this still sounds like you how exactly do you get your hands on this fifty grand wedge? Well, I should point out that £50,000 is a hypothetical figure; the amount is actually equal to 17.5 per cent of whatever the house price is so on a £300,000 property (the average house price in London is currently £336,000) you’d qualify for £52,500. It should also be made clear that the 17.5 per cent will remain fixed so you’ll have to pay back the same percentage of whatever the sell-on price turns out to be, which will ultimately end up eating into any profit you make.
Before you start thinking about any of that though you’ll need to find out if you’re actually eligible which means applying with a local housing association. This is where things become slightly unclear; there is a feeling that, with a question mark over exactly how much money the government is making available for the scheme, the number of homebuyers who are eligible might necessarily end up being rather limited. It seems these new equity loans aren’t actually being allocated any extra funding beyond the existing, widely criticized HomeBuy scheme introduced to help key workers afford mortgages by contributing 12.5 per cent of the loan.
Apparently the criteria for eligibility will be the same as the original HomeBuy scheme but if the governments guarded approach to clarifying exact details is anything to go by it seems more than likely that funding won’t meet the potential demand, especially if no additional money is being made available.
If you’re a young professional considering a mortgage but aren’t eligible for government assistance there are mortgage deals out there that recognize future earning potential even if your income isn’t currently that high, like Alliance and Leicester, who allow you to take out loans between £5,000 and £100,000 over terms between 5 and 25 years and provide the helping hand of a mortgage calculator, to help keep your payments in check.
For more information please visit us at http://www.alliance-leicester.co.uk/mortgage-information/repayment-mortgage-calculator.aspx
Saturday, November 8th, 2008
New interest-free loan for (some) first time buyers
How does a £50,000 interest-free loan to help you onto that increasingly awkward first rung of the property ladder sound? Perhaps I should elaborate - it will be courtesy of the government to help put towards your deposit, there’ll be no fees to pay and you can take out mortgages with any lender you fancy. Surely there must be a catch - after all if this is as generous as it sounds wouldn’t the government be making a bigger deal of it, it certainly sounds like a surefire vote winner.
Sadly, on closer inspection, it appears that those suspicions were well-founded - there are indeed a few catches. Firstly, you have to be a key worker (a teacher or health worker for instance), live in London, the South East or East Anglia and your household income can’t exceed £60,000, or you might have been nominated by your local council as being someone in ‘housing need’.
So, if this still sounds like you how exactly do you get your hands on this fifty grand wedge? Well, I should point out that £50,000 is a hypothetical figure; the amount is actually equal to 17.5 per cent of whatever the house price is so on a £300,000 property (the average house price in London is currently £336,000) you’d qualify for £52,500. It should also be made clear that the 17.5 per cent will remain fixed so you’ll have to pay back the same percentage of whatever the sell-on price turns out to be, which will ultimately end up eating into any profit you make.
Before you start thinking about any of that though you’ll need to find out if you’re actually eligible which means applying with a local housing association. This is where things become slightly unclear; there is a feeling that, with a question mark over exactly how much money the government is making available for the scheme, the number of homebuyers who are eligible might necessarily end up being rather limited. It seems these new equity loans aren’t actually being allocated any extra funding beyond the existing, widely criticized HomeBuy scheme introduced to help key workers afford mortgages by contributing 12.5 per cent of the loan.
Apparently the criteria for eligibility will be the same as the original HomeBuy scheme but if the governments guarded approach to clarifying exact details is anything to go by it seems more than likely that funding won’t meet the potential demand, especially if no additional money is being made available.
If you’re a young professional considering a mortgage but aren’t eligible for government assistance there are mortgage deals out there that recognize future earning potential even if your income isn’t currently that high, like Alliance and Leicester, who allow you to take out loans between £5,000 and £100,000 over terms between 5 and 25 years and provide the helping hand of a mortgage calculator, to help keep your payments in check.
For more information please visit us at http://www.alliance-leicester.co.uk/mortgage-information/repayment-mortgage-calculator.aspx