Happy Thanksgiving from Creditrepairman21!!!!

I am taking a few days off to spend with my family. I hope all of you have a Happy Thanksgiving and may God bless you and keep you save. Remember pay cash on Black Friday. :)

Creditrepairman21

Credit Cards Not Always Good for Your Credit, Part 2

The way the way the credit scoring module is set credit cards are just a part of how your credit score is established. That being said don’t believe that just because you get a credit card or two you score will go up 100 points in 30 days (don’t laugh I have seen this advertised on the internet) you need history ie… time. You need a mix see my blog 5 Factors of Credit http://creditrepair21.blogspot.com/2008/11/5-factors-of-credit-scoring.html
for the FICO scoring break down on how to mix up the credit you have and may want to get for the best possible scores. One last thing to remember, be responsible and pay your bills on time if you don’t you will kill your scores and have to start all over and creditors look at your history bad payment history means higher rates.

Credit Cards Not Always Good for Your Credit. Part 1

I know, I know you hear it all the time get credit cards to build/rebuild your credit. Well it is true that you need them for balancing the mix of credit on your report. I will tell you the same thing, but be responsible and keep the balance BELOW 30% of your available credit limit. This will help your credit score increase and stay up. Whenever you go over 50% of your available credit limit your scores start dropping, because red flags go up. Stay tune for part 2.

Managing your Credit and Credit Scores this Christmas!

So you have your credit report and your scores are lower than you had expected. Where do you start and how do you get your scores back up? Well the first thing to look at is have you had any late payments if so, no more late payments this will help your score to go up. This will take a time so make all payments before the due date to avoid late fees. If you have revolving credit (ie.credit cards) make sure you get the balances below 50% of your limit for your best credit score below 30% of you credit limit would be even better. Let say you have $1000.00 credit limit for you BEST credit score get your balance below $300.00. Go to
http://www.questgroup-usa.com/EBMS/Images/Templates/MortgagePal/General/DebtCalc.asp for a great free debt consolidation calculator. Remember if you can pay cash or debit for ALL your Christmas shopping and avoid those credit cards. If you do use them make sure no matter what you can pay them off or at least below 30% of your available credit limit.

Today I am taking a break from credit repair. :)

I will be back on 11/21/08 with a couple of blogs. I took time out today to take my 5 year old son to the zoo. Yes, I have a life :)

Creditrepairman21

What is the Credit Scoring Process? (Part 2)

What the credit scoring model seeks to qualify is how likely the consumer is to pay off their debt without being more than 90 days late on a payment at any time in the future. Credit scores can range between a low 300 to a high 900. The most common scores 400 low to 850 high. The higher the score the less likely the borrower will default on their loan. Approximately 1 out of 1300 people in the US has a credit score over 800. These borrowers get the best interest rate available in the market. On the other side of the spectrum 1 out of 8 borrowers are faced with the reality they may not qualify for a loan because their scores are between 500 low to 600 high. Which category do you fall in? Don’t go in blindly when looking for new credit get your FREE credit report at https://www.annualcreditreport.com/ for GREAT FREE finance calculators go to http://www.questgroup-usa.com/EBMS/Images/Templates/MortgagePal/General/Calculators.asp

What is the Credit Scoring Process? (Part 1)

Credit Scoring has an enormous impact on a borrower’s ability to purchase a home, a car, get personal loans, credit cards, and even a job. For this reason it is important to understand the credit scoring process, and know what your credit score is before you look to obtain new credit.

Christmas, Black Friday, and the Credit Crisis!

Here we are a week a way from “Black Friday” and retailers are desperate to get your money into their hands. JC Penny’s has announced they are dropping prices below last year’s prices in an effort to get customers in the door. While other retailers are doing the same thing, the question would be - is it too little too late? Only time will tell. There is one thing we can do – SHOP - there I said it. Stop listening to all the negative media and do some Shopping. This will help the economy which needs OUR help, not the Government’s. So, we, the people, need to shop and shop responsibly. Shopping responsibly means not going into debt. When shopping for Christmas use a form of “cash”, that means to literally pay with cash or use a credit card which will be paid in full when the bill is received. Remember, not shopping or going out to eat will hurt all of us because, more jobs will be lost, which mean more foreclosures, and more credit problems for all. Restaurants also want you to dine with them, so a lot, are offering “kids eat free” deals to get you in the door. I think this is a GREAT opportunity for all of us to save money and still enjoy all of December, Christmas and the New Year. Here are some websites that have kids eat free info www.mykidseatfree.com
and www.kidsmealdeals.com. If you are looking for more information on your credit and do it yourself “DIY” credit repair visit http://creditrepair21.blogspot.com lets have a Great end to a year that has seen its share of issues.

Increasing Your Credit Scores!

Do you have outstanding debt that you can afford to pay off right now? Try to get these accounts down to a zero balance, or at least a lower balance. If your cash on hand doesn’t allow you to do this, try to distribute the debt amongst other open credit cards. You can also consider opening a new line of credit and transferring part of the balance off a card that is close to being “maxed out”. If you can get the resulting balance below 50% but, preferably below 30% of the available credit, you’re on the road to improving your credit score considerably in most cases. You can also see will increase your available lines of credit. This can, in turn, reduce the overall debt ratio, but only do this if your credit card company can do that without a hard credit inquiry.

Do You Really Know Your Credit?

In a recent survey of over 1000 men and women between 18-70 about credit and personal finance over 65% consider themselves to be very knowledgeable. Well the results will probably shock you.

54% said that age was a factor in determining credit scores (incorrect) age is not use in determining your score.

52% do not check their credit reports annually we all should because you can get them free http://www.annualcreditreport.com/

23% have never seen their credit report or even know their score.

36% don’t use a budget to manage their family finances.

If you fall in to any of these categories take action today get your FREE credit report setup a budget and as always feel free to ask me any questions. If you are looking to Purchase or Refinance your home go to www.questgroup-usa.com they have a mortgage calculator and a glossary of terms that is very useful.


Creditrepairman21

Your Credit Report & Scores!

Did you know it’s a computer that calculates your credit scores and that it is NOT taking any personal factors into consideration? When a credit report is generated, it is simply a snapshot of the borrower’s credit history up till the date it’s pulled. Your credit report and scores can fluctuate almost daily depending on your financial activities. One of the main things to remember is when looking for a House, Car, Boat, or any other large purchase is NOT to go on a spending spree. This could drop your credit scores below the qualifying rate or your rate could be higher because your scores dropped. If you want to calculate mortgages rates go to www.questgroup-usa.com they have a FREE mortgage calculator you can use and it will help you know what you can afford or how much you can save if you are looking to refinance your home or investment property.

How Do I Read My Credit Report?

Navigating your credit report can be very confusing. You want to make sure you understand everything on your credit report. Below is a sample of some abbreviations used on credit reports, for more information contact www.questgroup-usa.com

I = Installment account

R = Revolving account

M = Mortgage or Real-estate

1 = always paid on time

3 = 60 days late

9 = charged off as bad debt, collection, un-collectable, or charged off

What exactly is a credit report?

A credit report is a snapshot of your financial and personal life at the time your credit is pulled; that is, if everything on your report is accurate and there are no mistakes. Your credit scores move on a daily, weekly, and monthly basis. How much they move is based on the balances and when your creditors report their data during the month.

You were turned downed for Credit!

You are turned down and you don’t know why. Well according to Equal Credit Opportunity Act or ECOA you have the right to obtain the reason within 30 days of the denial. You are also entitled to a FREE copy of your credit report within 60 days of the denial which you can get from the credit bureaus. If you get your FREE annual credit reports see how here http://creditrepair21.blogspot.com/2008/10/free-credit-report.html
and manage your credit every year you should know if you will qualify before seeking new credit. Remember credit management is for life. Know what’s on your credit report and know you Rights!

Credit Repair Facts Not Fiction!

There are so many out right lies when it comes to credit and credit reports, sometimes I wonder where these people get their information. You can’t fix, repair, change, or manipulate your credit scores or credit report over night. Life happens like medical expenses, loss of job, car accidents, busted pipes, broken ac, and the list goes on and on.
We live in a day when savings are lower than that of the 70’s. So we make tuff decisions what to pay and with no savings the credit cards and medical bills always seem to be the last thing we worry about. The next thing you know your 720 is a 550 and you don’t know what to do, so you do nothing. That is what most people do because they don’t understand how credit works. If you ever have a financial issue and you have to make tuff decisions here is a guideline to help, remember this is NOT a cure all. This is only to be followed if you had a financial crisis. Not paying bills on time always has an adverse effect on your credit and credit score.


1st thing always pay your mortgage/rent on time. They both will affect your credit adversely if you don’t.

2nd your car (can’t go to work with no car) and this means no income.

3rd household bills.

4th revolving credit like credit cards.



Remember you’re late with the creditor after the due date; however they don’t report you late with the credit bureaus till your 30 days past the due date. Now they always will charge you there late fees for going past the due date, so make sure if you’re late call and keep within the 30 day period. If your mortgage/rent is due on the 1st it is 30 days late on the 30th even if you have a grace period till the 5th the due date is the 1st and that is when the clock starts ticking. For more information on credit, credit scores, and credit guidelines go to
http://creditrepair21.blogspot.com/2008/11/5-factors-of-credit-scoring.html

My Credit Scores and Rate Shopping!

When looking for a mortgage or auto loan, you may want to check around to see who has the best rates. Each lender you check with will want to check your credit report. Not only for credit scores, but also for your credit history which means multiple pulls or looks at you credit report. This is already apart of the credit scoring system to know the difference between looking for one loan as opposed to many new lines of credit. This is done in part by the length of time in which inquiries occur. The rule set in place is 14 days from the first inquiry, so make sure when you start looking that you have all your ducks in a row (so to speak) and get your credit pulls done in the 14 day window. For auto loans one dealership usually has several lenders who they work with so you may get several offers and credit pulls at one dealership there again just keep it in the 14 day window. My suggestion is to find the car you want or narrow it down to 2 then have them see what your financing options look like. This way you keep better control and management of your credit and who is pulling or viewing your credit report. If you are looking to Purchase or Refinance a home rates are still at a 30 year low. Go to www.questgroup-usa.com they have over 150 lenders they do business with and are FHA and VA certified. This means they pull or view your credit once then get the best possible loan options for your mortgage needs. You can also contact them toll free or email them for more information through there website.

Will Closing Old Account Raise My Credit Score?

NO. The Fact is it will probably lower your credit scores. Also, if there were late payments on the account they don't disappear. If you have an old account with good established pay history and credit management you don't want to close it. You want to use it at least every 4-6 months for small purchases. Do NOT wait a year to use it, that will also make your credit scores go down. More tips to come on Managing your Credit Report.

What exactly is a credit report?

A credit report is a snapshot of your financial and personal life at the time your credit is pulled; that is, if everything on your report is accurate and there are no mistakes. Your credit scores move on a daily, weekly, and monthly basis. How much they move is based on the balances and when your creditors report their data during the month.

NO BOUNCED CHECKS!

In the aftermath of the housing meltdown, there's been a lot of fingers pointing at Fair Isaac. Lenders have been griping that the supposedly all-important FICO credit score has failed to accurately predict the possibility of default on loans of various types. So there are new initiatives in the works to come up with better ways to figure out who's going to pay and who's going to skip out. Dow Jones News wires reported that the new models involve looking at bounced checks, utility bill history and the ability to pay your rent in a timely manner. It turns out there's a very real correlation between bouncing checks and default on loans. But this latest wrinkle is where even if you have traditional credit, other things are still being brought into the mix to give a better overall picture of your financial health. So NO and I mean NO bouncing checks, floating checks your credit doesn't need the negative hit. Beside the fact of "NFS" fees, bouncing checks is illegal and you can be prosecuted and even be put in jail. I think we are all on the same page.
Bounced checks = "NFS" fees, Bad Credit, and possibly JAIL!

LAWS TO PROTECT YOU FROM BAD DEBT COLLECTORS!!

THE FAIR DEBT COLLECTION PRACTICES ACT or (FDCPA)

§ 806. Harassment or abuse

A debt collector may not engage in any conduct the natural
consequence of which is to harass, oppress, or abuse any
person in connection with the collection of a debt. Without
limiting the general application of the foregoing, the following
conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal
means to harm the physical person, reputation, or property
of any person.
(2) The use of obscene or profane language or language
the natural consequence of which is to abuse the hearer
or reader.

Go to ftc.gov for the rest of this section and all your rights.

What about garnishments, judgments, and tax liens?

Garnishments, judgments, and tax liens can stay on the credit report for twelve years from the date of entry or seven years from the date they were satisfied.

The Day After Election and Still a Credit Crisis?

Just kidding the Credit Crisis will be here for a while. What does all this mean for you and me and the Credit Crisis? The million dollar answer is? It’s too soon to know, we have issues and we are going to continue to have them, it really didn’t matter who was elected there is NO quick fix! The credit crisis is not much different from your credit report good or bad. Credit takes time to go up or down, what you do today will affect you down the road. The same is true with the credit crisis it didn’t happen over night the warning signs were on the walk, but so were the $$$$ signs. That is why I always tell you to steer clear of quick fix credit repair schemes, there is NO QUICK FIX! You have to follow the proper guidelines the bureaus have put in place to correct, update, and manage your credit reports. Don’t believe the “we can fix you credit fast” slogans’ it’s just not true. I give you the resources and accurate information showing you where to go to get your FREE credit report, dispute letters and the proper information to manage your credit for life.

Credit Repair Companies Charge WHAT???

Have you looked to see what credit repair company's charge? Well I have and here is the average cost I have found both online and in local areas. A whopping $99.00 one time setup fee then $39.95 a month. (GOOGLE IT YOURSELF) I don't know about you, but why pay when I show you here free and you can do it in the same time if not faster. Faster?? Yes, faster how because you are the client and you always have your best interest at hand. I am here to point you in the right direction. Remeber you do your repair or adjustments I just give you the tools and information.

5 Factors of Credit Scoring

We want to start off with the factors of credit scoring according to Fair Isaac Corporation. You may not recognize the name but, you probably have heard of your FICO score. They are number one when it comes to the credit scoring model. Consider these 5 factors.



Payment History: has a 35% impact. Paying debt on time and in full has a positive impact, late payments, judgments and charge-offs have a negative impact.



Outstanding Credit Balances: have a 30% impact. Debt ratio of outstanding balance to available credit is important. Keeping that below 50% is wise and below 30% even wiser. It is NEVER a good idea to close an account; the debit ratio will go up and the number of seasoned lines will decrease. Pay outstanding debt down as close to zero as possible and evenly redistribute the remaining balance among the open lines. The increased interest incurred by moving a balance from a 0% card to a 23% card will be minimal to what the increased mortgage debt might with a lower credit score. Hitting the maximums of available credit can be very negative. It may be worth calling an asking the credit company to increase your available credit to lower your debt ratio, provided they do so without a hard credit inquiry.



Length of Credit History: has a 15% impact. The length of time a particular credit line has been opened is important. A seasoned borrower is stronger. Opening new credit cards will decrease the average length, and therefore hurt this portion of the score.



Type of Credit: has a 10% impact. A mix of auto loans, credit cards, and mortgages is positive, rather than a concentration in credit cards only. Careful, too, when getting credit at a store that is not a department store: the credit agencies frown on cards for more specialized stores where you’re likely to only make one purchase, as they seem to show desperation.



Inquiries: have a 10% impact. Hard inquires for credit will negatively impact the score. Auto and mortgage inquiries receive special treatment and 20 inquiries can be made in a 14-day period for auto or mortgage and will be treated as only one inquiry. The maximum number of inquiries that will reduce the score is 10. Any inquiries beyond that in a six-month period will have no further impact on the borrower. Each hard inquiry can cost 2-50 points on a credit score.

What are the biggest challenges with legal credit repair?

Getting the credit bureaus and creditors to comply with the legal requests they are required to comply with by law is the biggest challenge. It is estimated that up to 50% of consumers could have a cause for legal action for noncompliance with Fair Credit Reporting Act against either the credit bureaus or their creditors when dealing with a dispute. Because litigation is extremely expensive, pursuing these violations for money judgments does not make sense and cost more than the awards can bring at the end of the day.

Obama’s Tax Plan LIE!

OK I know, I know, this is a credit repair do it yourself page but, enough is enough. Here are the facts from the horse’s mouth so to speak. I had to post this!



Obama’s Tax Plan LIE!

http://www.foxnews.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=3174534&referralPlaylistId=playlist

CREDIT CRUNCH!!!

Wow November 1, 2008 already!!! What a year it has been too, the house market taking a dive, stock market taking a dive, there was something else ummm oh yeah the CREDIT CRISIS! We have all heard these sayings I am sure Credit Crunch, Credit Freeze, Credit Meltdown, Bad Credit Scores, Good Credit Scores, Free Credit Reports, Credit this and Credit that, but what does it all really mean? Well that is the million dollar question and has one answer, the answer is IT DEPENDS I know, I know you think I am crazy. The truth is that regardless of what you have heard everyone’s credit is different and I mean everyone! For example lets say person #1 has a 720 credit score and person #2 has a 720 credit score they should both be able to get the same things right? WRONG just because they have the same credit scores does not mean they are equal. There are a lot of other factors that go into consideration. The first thing is payment history, then Debt Ratio which is the amount of credit available verses the amount of credit used. For example let’s say they both have a credit card with $5,000.00 credit limit. #1 has $4000.00 charged on his/hers, and #2 has $1250.00 on his/hers. #1 Debt Ratio is 80% on there credit card and is well over the suggested 30%. On the other hand #2 Debt Ratio 25% which is a littler below the suggested 30%. That means if #1 would get there credit card below 30% there credit scores would actually go up more than the 720 credit score they currently have which would give them better buying power. One last thing look for the facts on Did you know outstanding credit balances below.