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Credit Repair Services

If you have bad credit, you will find it difficult to get a home loan, car loan or personal loan. Often your application will be turned down, you may have to pay a higher interest rate and at times, your chances of getting a good job will be adversely affected. Most credit repair companies which claim to repair credit do so by either selling a do it yourself kit or by debt consolidation, both of which are not very effective for credit repair.

Unlike these companies, the credit repair services from Repair Your Bad Credit are both affordable and  effective. A nominal one setup fee of $19 is charged and the remaining amount has to be paid in three easy installments of $89 each. In case the customer is not satisfied with these credit repair services, they get their money back and an additional refund of $50 .

Bad credit repair services utilise the provisions in the Fair and Accurate Credit Transactions Act (FACT Act), and the FDCPA (Fair Debts Collections Practices Act) for protecting the rights of the consumer. They write to the credit institution through the credit reporting agency and ask them to provide proof to support a negative entry. If proof is not provided, the negative entry is deleted and the credit score improves.

Posted 16 August 2008 † nbcc § credit rating § credit score § improve ‡ Comments (0) °

Credit cards and credit score

Since most credit card issuers check the credit history before issuing a credit card, if you do not have a good credit score, it is difficult to get approved for a credit card with no annual fees. The individual will usually have to use a credit card designed for people with little or no credit. These cards usually report monthly to the credit bureaus and charge an annual fee.

After using these credit cards for some time and make payments on the amount due regularly, the credit card user may qualify for a credit card with zero annual fees and a lower interest rate. At this stage the credit card user has to decide whether to retain the older credit card and continue paying the annual fee , so that his/her credit history remains unaffected or cancel the old credit card and risk a change in the credit score.

The credit card user can contact the issuer of the original credit card , inform them that he/she have been approved for a new credit card and request a waiver of the annual fee. Some credit card companies may agree to this request, since they may not want to lose a customer and they still make money from every transaction.

If the credit card user is planning to take a big loan like a car loan or home loan soon, it may be better to retain the old credit card and continue paying the annual fee. The annual credit card fees will be insignificant compared to the savings due to lower interest rate.

Posted 01 August 2008 † nbcc § credit card § credit rating § credit score § improve ‡ Comments (0) °

How to Increase Your Credit Score

by: RobertMelk

Having a high credit score can help you in many ways, such as when looking to buy a car, buy a home, and even refinance a home. When looking to purchase or refinance a house, you will pay an interest rate based on market conditions and your ability to pay back lenders. The lender will take into consideration your income and debt ratios, and also look at your credit score before determining the interest rate.

Interest rates for various loan programs are broken down and categorized by credit scores. However, different lenders will break up the categories based on different credit scores, but overall, the higher the credit score, the lower the interest rates and vice versa. A borrower with a perfect credit score is going to be granted a lower interest rate, based on how that person has historically paid back debts. This person who had the perfect credit score would be called an A paper loan. On the other hand, borrowers with subprime credit scores can range from A- paper loan, B paper loan, C paper loan, to the lowest being D paper loan.

Do not go ahead and take out a long term loan agreement without actually knowing your credit score. You can easily save thousands of dollars by going from a D paper loan to a B paper loan. Even though you are still in the subprime category, you are still much higher than when you were in the D paper loan group.

If you have already taken out a mortgage loan even though you did not have the best credit, there is a solution. Working with a qualified mortgage consultant can help you improve your credit score, refinance and save you money. First off, he or she will review the original terms and agreements from the loan and determine whether or not you have a pre-payment penalty clause, which penalizes you for refinancing or paying off the loan early. If you sell or refinance before the pre-payment penalty clause expires and you have not paid of at least 20 percent of the original loan, then an additional percentage will be added to pay back to the lender. This fee is for the lender taking the high risk and high costs of financing.

After that, you should get a hold of free copies of your current credit score, assuming that it is better than what it was before. These copies can be attained from various online free credit centers. You should obtain these roughly six months before the pre-payment penalty clause expires.

There are five main factors that can hinder your credit score and your mortgage consultant can help you improve in these areas. Overall, conserve the use of credit cards, pay off debt as much as possible, do not apply for more credit cards, verify that negative items are paid off, and finally, that those items are removed from your credit report. This good credit history should be reported to all three bureaus. If needed, dispute any lingering errors that are still appearing or your credit report.

Once your credit score improves, it is time to refinance. The mortgage consultant should look for programs that do not have pre-payment penalty clauses longer than two years. This process can and should be repeated until your credit score is up to an A paper status.

About the Author

Refinance.com offers more information about the Home refinance procedure and also about increasing your credit score to get better terms, to learn more visit our site at http://www.refinance.com/

Posted 19 July 2008 † nbcc § credit score § improve ‡ Comments (0) °

FICO credit score

In USA,   Experian, Equifax, Transunion are the major credit reporting agencies for individuals, which maintain a record of  all credit related transaction. Fair Isaac Corporation has created the FICO score, which is the most widely used credit score model in the USA.

The FICO score for an individual is calculated statistically based on the records with the credit reporting agencies. The score is intended to indicate the probability that an individual will default on a particular type of  loan. Since default rates are different for mortgages, car loans and unsecured credit on credit cards, the FICO scores may also differ by as much as 50 points.

While an individual can get 3 copies of  the credit report for free in a year for checking accuracy,  he or she will have to be pay to find out the FICO score. The FICO score is used by banks in making credit related decisions. The credit rating agencies also have their different formulae for calculating the credit scores of  an individual.

A FICO score is between 300 and 850, and most of the population has a credit score between 650 and 799. The average credit score is 678 and the median score is 723.

Posted 10 May 2008 † nbcc § FICO § credit rating § credit score ‡ Comments (0) °

Credit rating / score

The credit rating or score of  an individual is an indication of the credit worthiness of  an individual.  The credit rating is used by the lender to assess the risk of  lending money to  the individual or the business, in case of  a small proprietorship firm. Though the credit score may be adversely affected by factors which are not in an individual’s control, they often provide an accurate indication of  the financial health of an individual.

A poor credit rating /score indicates that the borrower is more likely to default on loan payments, and interest rates are usually higher for individuals with a low credit score. Often, a person with a low credit score may find it difficult to get a credit card or a loan. In such cases, the person has to request a friend or relative with a better credit score to co-sign  for the loan.

Credit ratings/ scores are usually calculated considering the financial history, whether payments have been made on time and also current assets and liabilities. For different types of  credit like home loans, car loans,  personal loans, credit cards,  the credit scores calculated may be different.

Posted 08 May 2008 † nbcc § credit rating § credit score ‡ Comments (0) °

NBCCS

Credit scores, credit cards, and factors affecting your credit

Posted 07 May 2008 † nbcc § credit rating § credit score § improve ‡ Comments (0) °
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