Credit to Obtain a Home Loan
March 11, 2009
Your credit rating is one of four factors that is used to determine if you will be approved to receive a home loan. It is the single most important factor that determines the interest rate you will pay which would ultimately determine your monthly payment on your home loan.
Your credit rating and score in particular are more important than ever before with the state of the credit markets. Lenders are raising their standards to make sure they are not left with too many bad mortgages and loans.
In particular, they pay close attention to your credit scores which gives them an overall picture of the information contained in your credit report. Once you begin fixing your credit report, Read more
How Cleaning Up Bad Credit
February 6, 2009
Cleaning up your bad credit can take some time, depending on the amount of work that needs to be done. It is important that you stay on top of your bad credit as it holds the key to your financial future. You may not be able to obtain lines of credit in the future if you have poor credit. Here are some tips on how you can clean up your bad credit.
The first thing that you will want to do is to obtain a free copy of you credit report. You can get this online, and it only takes a few moments. You are eligible to receive one free copy of your credit report annually. Pulling your credit multiple times in a year can actually hurt your score, but once a year will not hurt it. Read more
Tips to Increase Your Credit Score
January 13, 2009
For people who are planning to get their very first loan, the biggest stumbling block may be a low credit score, which is a grade or rating based on past credit, loans and bills and how well he has paid them. Most banks and financial institutions termed it as the FICO score.
This is a problem for new borrowers because they have no loan history and therefore, will have nothing to base a credit score on. It becomes a larger problem if you have a poor credit rating due to unpaid utility bills or you constantly delay your credit card payment. Read more
Checking Your Credit Score, Why?
November 28, 2008
Most Americans have errors and other unverifiable notices on their credit reports that can be bringing down their over-all credit score. There’s a very good chance that even YOUR credit score is lower than it SHOULD be! Sadly though, there is a good chance that you will be like most of the millions of Americans who will continue to suffer with an unfair credit score because you haven’t done anything to fix your credit.
Most Americans want to believe that the current credit reporting system that we use works; that people “earn” their bad credit scores and that there is nothing that can be done to fix it other than wait out the seven (7) years. This is simply not the case. Studies have proven that the current credit scoring system is flawed. This is why the Fair Credit Reporting Act and other consumer protection legislation give you the ability to do something about it. They give you the legal right to know and challenge items on your credit score. Read more
The Credit Crisis of 2008
November 22, 2008
Many factors have contributed to the 2008 financial meltdown. The details behind the credit crisis can be summarized as follows:
The major impetus behind the entire crisis can be attributed to the low cost of borrowing. Since the United States’ economy was lagging severely back in 2001, its central bank initiated a policy of lowering interest rates, with the intention of reviving a stalled economy. The FED reduced the federal funds rate, which is rate of interest that banks charge one another, to its lowest point in 2003. With low rates abound, this helped fuel the real estate market, and speculation in the real estate market. The end result was that home values saw a dramatic increase.
Banks and mortgage companies saw this as a time to make money. They jumped into a frenzied real estate market with both feet, and began lending to unqualified borrowers. This was the beginning of what we call the subprime mortgage market. To hide these subprime mortgages as much as possible, these subprime mortgages were bundled with more credit-worthy loans, and as a package, were sold to the investment community. Read more
Free Triple Credit Reports
November 22, 2008
Freecreditreport offers online credit reporting resources to consumers worldwide and belongs to the ConsumerInfo family. The company is a leading provider of online consumer credit reports, credit information and monitoring services as well as credit scores.
The company has served 3.1 members thus far and delivered more than 20 million credit reports. The indispensable services and befits offered by Freecreditreport has taken the company to newer heights as the membership count continues to rise.
Consumers can now wield control over their credit by taking advantages of the services offered by this company. The first step involves getting access to their free credit report and credit score. Customers can try these services completely free of cost with the 7 day free trial offer. Read more
Worldwide Credit Crisis
November 20, 2008
Recently in the UK Lloyds TSB has merged with the HBOS group which includes the old Halifax building society, BM solutions, IF, TMB (Though recently withdrawn) and the Bank of Scotland. This merger would mean the new bank will have 28% of UK mortgage share more than the competitions board allows and 38 million UK customers.
This could mean thousands of job losses as high street branches close to allow for just the one branch. What is also a major concern is because the banking competition has been watered down by having a large player in the financial market good deals on mortgages and lower rate loans could be impeded. Read more
Internet For a Credit Repair Letter Form
August 21, 2008
Debt collectors are calling your house nonstop demanding payment and you can’t handle it anymore so you want to write a cease and desist letter to make the calls stop. Or maybe you’ve received a copy of your credit report and realize that an error has been made and you want to write a letter to have the error corrected as soon as possible.
These are important letters that have to be written. If the situation can not be resolved quickly and further action is needed these letters are what you will use as a basis for your case. So how do you go about writing these letters? The internet can be a big help. Read more