About Your Credit Rating/Score
Issues in your past credit history can put you in a weakened financial position.
People who have credit flaws historically pay more gross profit to the lenders than those
with good credit.
Credit scores (or FICO Scores) are calculated for all indiviuals by an independent
firm called Fair Issaac and the scores are based on a number of criteria including past
credit history, number of times you've applied for credit, delinquent credit history,
charge-offs, bankruptcies, etc. To illustrate, when an auto dealership promotes a 0%
financing special you have to have a high FICO Score to qualify for such offer. By knowing
your FICO score before visiting the auto dealership when buying a car, you will know
immediately whether you qualify for that special financing.
Check your credit. You can get a free credit check once a year or you can get your
report for a small fee. To obtain a copy of your credit report send a letter requesting
this information to any of the three major credit reporting services, TransUnion, Equifax
or Experion. You can also obtain this credit report information online by visiting a
related website (i.e. http://www.myFICO.com or http://www.mycreditscore.com ).
Why are Credit Scores so important?
Credit Scores directly effect many financial transactions you do, including:
buying a home with a mortgage, borrowing money to purchase a car, applying for
credit cards, and even applying for a job. Making sure your Credit Score is as high
as possible is one of the easiest ways of saving money every month.
Your Credit Score tells a lender very quickly and efficiently how likely you are to
default on a loan. The lower the Credit Score, the higher the interest you will
have to pay - because the lender has to take on more risk to lend you money based on your
past credit history.
Make sure you take steps to increase your Credit Score today so the next time you
apply for loans, insurance, credit cards, or even a new job you will be confident about
your high Credit Scores.
Steps to increase your Credit Score:
1. Get your Credit Reports and Scores - If you don't have this yet, this is
crucial because you need to know exactly what is on your current Credit Reports and what
your current Credit Scores are. By understanding this information, it will tell what
actions you need to take to make sure your Credit Score is as high as possible.
Consider using Equifax Gold Credit
Monitoring because you can run your Credit Reports Monthly and you will see your
actual FICO Credit Score. It also monitors how your actions are affecting your Credit
Scores.
2. Using information from your Credit Reports and using the Equifax Gold Credit
Monitoring, (gives you insights into your credit report) and explains why your Credit
Score is low. Is it because of high debt levels, derogatory (negative items, late
pays, charge offs, etc.) items, or a mixture of both?
3. Using the information provided on this site, learn how to fix issues related to
high debt levels and removing derogatory (negative) items on your Credit Report.
4. You might also need to use other resources to increase your Credit Score.
While we don't endorse any of the organizations listed below, you may want to
consider these or simlar services:
· Are you busy and want somebody else to
legally dispute items on your Credit Report for you? - One of the best ways of increasing
your Credit Score is by deleting negative information from your Credit Report.
Consider using The
Lexington Law Firm because of their excellent track record in the credit repair
industry. Remember, Credit Repair is perfectly legal if done correctly. The
Lexington Law Firm legally disputes items on your Credit Report for you, saving you the
time and hassle of doing it yourself.
· Do you want to dispute items
on your own? Do you have high debt levels and need to negotiate with your creditors? -
Consider using the Credit
Secrets Bible for Advanced Credit Report disputing techniques, tips on negotiating
with creditors, and sample Credit Report dispute letters. Many of the techniques
from this book are the same techniques lawyers use, however there is nothing stopping you
from using them yourself - and not paying them their fees. The Credit Secrets Bible
also contains insider advice on how to negotiate your way out of debt, including
collection agencies.
· Do you have at least three open credit
lines? Did you know that not having any credit history also means having a low
Credit Score? You should have at least 3 open credit lines according the industry
information. If you do not, I recommend applying for a credit card or a line of
credit at Your Credit Union.
· Do you have high debt levels (over 5K
in debt) and don't own a home? If you would like help in negotiating your debt with
your creditors, I recommend CareOne
Credit because with one short form they will contact you to see if they can get you
out of debt faster. CareOne Credit can negotiate for you and help you lower your
debt payments.
· Do you have high debt levels (over 5K
in debt) and own a home? If you own your home, you may want to consolidate your debt
because it will lower you interest rates and maybe tax deductible. Again, I
recommend contacting Your Credit Union to determine if they can't save you money and get
you of debt faster. The less debt you have the higher your Credit Score will be.
Remember, any money invested will pay for itself many times over because you will
qualify for much lower payments with higher Credit Scores.
5. Monitor how your Credit Scores are changing monthly with your credit
actions, again I recommend using Equifax
Gold Credit Monitoring.
6. Make sure you fully understand your past credit mistakes, and do the right things
to keep your Credit Score as high as possible for the future.
