Feb
25
inzaratha asked:
I bought a house a year ago with my fiance.
I have been paying off my car monthly, all bills and mortgage are paid on time each month.
I use only a debit card. I tore up all old credit cards as I don’t want to get involved in that scam again. I only buy what I can afford to.
I bought a house a year ago with my fiance.
I have been paying off my car monthly, all bills and mortgage are paid on time each month.
I use only a debit card. I tore up all old credit cards as I don’t want to get involved in that scam again. I only buy what I can afford to.
We wish to either sell or refiance our home in a year. Our rate is not bad and we don’t have one of those ones that is going to jump a huge amount but it is adjustable. We would like to sell and move out to the countryside in a year.
What are best steps I can do now to assure getting the best rate in a year?
I got rid of credits cards over 3 years ago.
Jo
Feb
22
The Truth About Credit Rating Approvals
Filed Under Credit | Leave a Comment
Matthew Lloyd asked:
Universal credit ratings and credit blacklists are nonexistent. Yes, that’s right. Each company will assess you in their own way, although logically, a bad risk for one company is an equally bad risk for another.
Your credit activity is stored by 3 agencies – Equifax, Experian and CallCredit – and you must ensure that you check your files at all 3 agencies every 18 months or so as there is scope for errors and mistakes. You can get information about your credit history and credit scores either by post or on the Web; this usually costs around £2 per search.
Even if you are careful and regularly review your credit history, it is possible that you could be refused credit. Credit card applications are sometimes legitimately rejected simply because the credit score of the applicant does not meet the standards or criteria set by the lender. This raises the question – what can you do to improve your chances of getting a credit card application approved?
How to Get your Credit Card Applications Approved
Check if you are mentioned on the electoral roll. If not, write to your local council and make sure you are included as this may be the reason you are being found ineligible for credit.
Avoid applying for lots of credit cards in a very short period of time as your score may be impaired; this also covers credit you request for your mobile phone or your car insurance.
Make an application before moving home or changing jobs or taking extended leave for maternity. If you are earning or you show signs of stability then you may have a better chance of getting credit.
Sometimes it helps asking your lender to a run a ‘quotation search’ instead of a ‘credit search’. Such an enquiry won’t impact on your credit score negatively.
Your chances might improve further if you own a home or are employed by someone, instead of living in a rented house or owning your own business. It also helps if you have been using the same bank for a long period of time. Try mentioning your fixed land line phone number instead of your mobile number as that shows you have stayed at your home long enough and won’t suddenly disappear without a trace after taking credit.
At all costs, avoid getting into a rejection trap. Assume that you apply for a credit card, and due to some factual errors or a mistake in your application, you are rejected. If you then apply for another credit card straight away, they see you have been rejected once, and that’s reason enough for them to reject you once more. This snowballs into a rejection trap until you rectify the error that caused this problem in the first place or you simply continue to get refused credit.
Herman
Universal credit ratings and credit blacklists are nonexistent. Yes, that’s right. Each company will assess you in their own way, although logically, a bad risk for one company is an equally bad risk for another.
Your credit activity is stored by 3 agencies – Equifax, Experian and CallCredit – and you must ensure that you check your files at all 3 agencies every 18 months or so as there is scope for errors and mistakes. You can get information about your credit history and credit scores either by post or on the Web; this usually costs around £2 per search.
Even if you are careful and regularly review your credit history, it is possible that you could be refused credit. Credit card applications are sometimes legitimately rejected simply because the credit score of the applicant does not meet the standards or criteria set by the lender. This raises the question – what can you do to improve your chances of getting a credit card application approved?
How to Get your Credit Card Applications Approved
Check if you are mentioned on the electoral roll. If not, write to your local council and make sure you are included as this may be the reason you are being found ineligible for credit.
Avoid applying for lots of credit cards in a very short period of time as your score may be impaired; this also covers credit you request for your mobile phone or your car insurance.
Make an application before moving home or changing jobs or taking extended leave for maternity. If you are earning or you show signs of stability then you may have a better chance of getting credit.
Sometimes it helps asking your lender to a run a ‘quotation search’ instead of a ‘credit search’. Such an enquiry won’t impact on your credit score negatively.
Your chances might improve further if you own a home or are employed by someone, instead of living in a rented house or owning your own business. It also helps if you have been using the same bank for a long period of time. Try mentioning your fixed land line phone number instead of your mobile number as that shows you have stayed at your home long enough and won’t suddenly disappear without a trace after taking credit.
At all costs, avoid getting into a rejection trap. Assume that you apply for a credit card, and due to some factual errors or a mistake in your application, you are rejected. If you then apply for another credit card straight away, they see you have been rejected once, and that’s reason enough for them to reject you once more. This snowballs into a rejection trap until you rectify the error that caused this problem in the first place or you simply continue to get refused credit.
Herman
Feb
20
Cash Out Mortgage Refinance: I Need the Money But I’ve Got Bad Credit Ratings!
Filed Under Mortgage | Leave a Comment
Joel Cohen asked:
Sometimes liquidating your home equity can be found useful when it is needed for consolidating debt, home improvement or for other expenses. When you contact a bank or financial institution you find that the rates you are quoted are very high due to your bad credit score. Cash out refinance doesn’t have to be expensive. In fact, it can be very profitable and reduce your monthly mortgage payments if done correctly.
Improving Credit Ratings for the Lowest Rate
If you can afford to wait a few months, consider repairing your credit. You can improve your credit ratings by paying your monthly bills on time. If you have trouble managing your payments you may want to consider contacting a credit counseling organization. They will help you manage your payments and maybe even negotiate more flexible payments with your creditors. Once you’ve improved your credit score, proceed with refinancing your mortgage and you will find the rates to be substantially more attractive.
The Need of Cash-out Refinance to Consolidate Debt
If you cannot afford to wait several months due to your credit card debt piling up, you may want to consider applying for a mortgage refinance loan. There is a risk involved here and therefore, you must make sure that once you have refinanced you will not build up your debt again. If you succeed you can find credit card debt relief in a relatively short period of time. If not, you may find yourself jeopardizing your home. To do this correctly, pay the highest down payment you can afford and then negotiate closing costs in addition to lower rates.
Negotiating with Online Lenders
Before you actually begin negotiating rates, payments and other important issues, compare as many online lenders possible. Doing so you will get a clearer picture of the rates and conditions offered. You can then negotiate the terms and conditions by offering a higher down payment than required. Comparing mortgage lenders will also help prevent fraud, since you know the average interest rates. If you are offered a very low or high quote you might want to do a background check on that specific lender or find out why the rates offered are so.
When looking into bad credit mortgage refinance online be sure to pay attention to the fine print. Compare mortgage lenders to get the best quote possible.
Sandra
Sometimes liquidating your home equity can be found useful when it is needed for consolidating debt, home improvement or for other expenses. When you contact a bank or financial institution you find that the rates you are quoted are very high due to your bad credit score. Cash out refinance doesn’t have to be expensive. In fact, it can be very profitable and reduce your monthly mortgage payments if done correctly.
Improving Credit Ratings for the Lowest Rate
If you can afford to wait a few months, consider repairing your credit. You can improve your credit ratings by paying your monthly bills on time. If you have trouble managing your payments you may want to consider contacting a credit counseling organization. They will help you manage your payments and maybe even negotiate more flexible payments with your creditors. Once you’ve improved your credit score, proceed with refinancing your mortgage and you will find the rates to be substantially more attractive.
The Need of Cash-out Refinance to Consolidate Debt
If you cannot afford to wait several months due to your credit card debt piling up, you may want to consider applying for a mortgage refinance loan. There is a risk involved here and therefore, you must make sure that once you have refinanced you will not build up your debt again. If you succeed you can find credit card debt relief in a relatively short period of time. If not, you may find yourself jeopardizing your home. To do this correctly, pay the highest down payment you can afford and then negotiate closing costs in addition to lower rates.
Negotiating with Online Lenders
Before you actually begin negotiating rates, payments and other important issues, compare as many online lenders possible. Doing so you will get a clearer picture of the rates and conditions offered. You can then negotiate the terms and conditions by offering a higher down payment than required. Comparing mortgage lenders will also help prevent fraud, since you know the average interest rates. If you are offered a very low or high quote you might want to do a background check on that specific lender or find out why the rates offered are so.
When looking into bad credit mortgage refinance online be sure to pay attention to the fine print. Compare mortgage lenders to get the best quote possible.
Sandra
Feb
9
Why doesn’t my credit score improve or change no matter what I do to improve it?
Filed Under Credit | 5 Comments
Julia R asked:
I have a 9 year old bankruptcy but since then I’ve been perfect about paying everything on time. I have paid off my mortgage very early and have also paid off the loan on my husband’s car (I cosigned for it). I have Zero debt. Why won’t my credit scrore go up from 703? I know that’s a good rating but I’m working to make it even better.
Andrew
I have a 9 year old bankruptcy but since then I’ve been perfect about paying everything on time. I have paid off my mortgage very early and have also paid off the loan on my husband’s car (I cosigned for it). I have Zero debt. Why won’t my credit scrore go up from 703? I know that’s a good rating but I’m working to make it even better.
Andrew
Feb
9
MIKE SELVON asked:
Did you know that 60% of your credit rating is based on the activity within the last 24 months? You may be lamenting over those old collection accounts or an old bankruptcy filing, but if you have since gotten back on track, or plan to get back on track, then there is a silver lining for you. Borrowers can eradicate bad credit scores by establishing a short and long term financial plan aimed at mitigating bad debt and maximizing good debt.
Improving credit scores involves avoiding many things. In the order of importance, they are late payments, high credit card balances, closing credit card accounts and having too many in-store charge cards. Late payments carry 35% of the weight in terms of your credit score, so do not take them lightly, even if it’s just a store charge card, a cell phone bill or a rent payment.
Your credit score can drop by as little as 20 points or more than 100 points, depending on how often you are late and how many accounts you’re late on, as well as whether you are 30, 60, 90, or more than 120 days late. Secondly, your credit usage should be no more than 40% of what is offered to you.
If your credit line is $1,000, then you should owe no more than $400, and that goes for all lines of credit you have open. If you have any maxed out cards, then pay them down until you hit the 40% mark! Some people think they should close out their accounts to “do the right thing” or “prevent overspending,” although this will decrease your overall credit offering and will reflect negatively on you.
Instead, work on paying those balances down and once you’re finished, aim to purchase one thing a year on those cards to keep them active, and pay them off right away. Lastly, opening and closing store charge cards just to get that 10-15% initial discount is a signal of irresponsible credit behavior and will not result in high scores for your credit.
There are also many things you can do to fix a poor credit rating. To get back on track, the first real step is, of course, paying down your debts. You’ll need money to get there, though, so you might have to pick up a second job, find a new job, work more hours or borrow a safety cushion from friends or family. You can’t dig out unless you have the funds to do so.
Secondly, look at your monthly budget and figure out how much you’re willing to spend on all of your debts each month, allowing yourself an emergency fund cushion if you can. Then list your debts from lowest balance to highest balance, or lowest interest to highest interest, and begin by paying all minimum payments, with every extra penny going toward the highest rate balance. Once that one’s paid off, go to the next balance. The sooner your debts are paid off, the sooner you can begin thinking about how to improve credit scores.
To get a better credit rating, you may want to call in and ask that new, updated information be added. Lenders like to see that you have steady employment, so including your current employer could be an asset. You can also include your date of birth, checking account and current residence.
If your credit report is missing accounts you regularly pay on time, then you can send the credit bureaus recent statements and payment history records to prove you’re re-establishing your credit score. You can also use a Chevron credit card to buy gas each month and pay it off in full right away.
Brad
Did you know that 60% of your credit rating is based on the activity within the last 24 months? You may be lamenting over those old collection accounts or an old bankruptcy filing, but if you have since gotten back on track, or plan to get back on track, then there is a silver lining for you. Borrowers can eradicate bad credit scores by establishing a short and long term financial plan aimed at mitigating bad debt and maximizing good debt.
Improving credit scores involves avoiding many things. In the order of importance, they are late payments, high credit card balances, closing credit card accounts and having too many in-store charge cards. Late payments carry 35% of the weight in terms of your credit score, so do not take them lightly, even if it’s just a store charge card, a cell phone bill or a rent payment.
Your credit score can drop by as little as 20 points or more than 100 points, depending on how often you are late and how many accounts you’re late on, as well as whether you are 30, 60, 90, or more than 120 days late. Secondly, your credit usage should be no more than 40% of what is offered to you.
If your credit line is $1,000, then you should owe no more than $400, and that goes for all lines of credit you have open. If you have any maxed out cards, then pay them down until you hit the 40% mark! Some people think they should close out their accounts to “do the right thing” or “prevent overspending,” although this will decrease your overall credit offering and will reflect negatively on you.
Instead, work on paying those balances down and once you’re finished, aim to purchase one thing a year on those cards to keep them active, and pay them off right away. Lastly, opening and closing store charge cards just to get that 10-15% initial discount is a signal of irresponsible credit behavior and will not result in high scores for your credit.
There are also many things you can do to fix a poor credit rating. To get back on track, the first real step is, of course, paying down your debts. You’ll need money to get there, though, so you might have to pick up a second job, find a new job, work more hours or borrow a safety cushion from friends or family. You can’t dig out unless you have the funds to do so.
Secondly, look at your monthly budget and figure out how much you’re willing to spend on all of your debts each month, allowing yourself an emergency fund cushion if you can. Then list your debts from lowest balance to highest balance, or lowest interest to highest interest, and begin by paying all minimum payments, with every extra penny going toward the highest rate balance. Once that one’s paid off, go to the next balance. The sooner your debts are paid off, the sooner you can begin thinking about how to improve credit scores.
To get a better credit rating, you may want to call in and ask that new, updated information be added. Lenders like to see that you have steady employment, so including your current employer could be an asset. You can also include your date of birth, checking account and current residence.
If your credit report is missing accounts you regularly pay on time, then you can send the credit bureaus recent statements and payment history records to prove you’re re-establishing your credit score. You can also use a Chevron credit card to buy gas each month and pay it off in full right away.
Brad