Your ability (or lack of) to borrow money or have credit extended on your behalf is one of the most important assets you have. Your credit score can be considered to be a very important factor, not just by potential lenders, but by potential employers and even landlords. If your credit score is low, you will have trouble not only borrowing money, but will also find difficulty getting a job or renting a decent apartment or home. You can learn the steps to becoming a better borrower to improve your score and qualify yourself for better loans and credit cards.
Your FICO Score Determines Creditworthiness
The outlook for those of any credit type who are seeking loans is bleaker now than ever before due to the recent credit crunch and global financial crisis.
Tip! Make your focus. You need to insure that each purchase you make is a wise one.
Most people, when considering credit repair, start out with the same question. How long will it take?
Unfortunately, there is not a definite answer. In credit repair, every situation is unique. Even two identical credit files would take different amounts of time to repair.
When I started the process, I had four collection accounts and three regular accounts reporting negative. I also had six older and paid accounts that reported good.
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I was able to have all of the negative accounts removed, get several unsecured credit cards and obtain a mortgage in less than a year.
Credit crunch Q&A: “Does a short sale hurt your credit?”
Short sales, where properties are sold for less than the existing mortgage balance, have become increasingly popular in the past year.
While short sales are a foreclosure alternative, there’s a good chance they’ll still adversely affect your credit pretty substantially.
Straight from the horse’s mouth: Fair Isaac, creator of the Fico score, says there is no difference between foreclosures and short sales or deeds-in-lieu of foreclosure with regard to your credit score.
In other words, all of these events will show up on your credit report as “not paid as agreed” next to the associated account and have the same impact on your credit score.
Of course, that’s assuming banks and lenders report all of these events in a similar manner.
It also assumes that you are experiencing the same level of delinquency in each situation.
Imagine if you planned to carry out a short sale, but were not behind on monthly mortgage payments; you simply wanted to get out and were still meeting your obligations.
If you were facing foreclosure, you’d probably already have a number of mortgage lates on your credit report, so it’s not all necessarily equal.
Further, you may be able to negotiate with the lender to mark your mortgage account as “paid as agreed” if you choose to go with a short sale or another foreclosure alternative.
In the event of foreclosure, the lender isn’t going to give you any concessions, as it’s not in their best interest to foreclose.
This could explain why many homeowners and mortgage industry participants claim foreclosures and short sales impact credit scores differently.
Some say short sales lower credit scores 70-100 points, while foreclosure lowers your credit score 150-250 points or more.
Of course, the impact of a short sale or foreclosure on your credit score will always vary, based on the rest of the information on your credit report.
For example, if you’ve got light credit history, a short sale will have a greater impact, while those with years of positive credit history may see a smaller hit.
If you do decide to go with a short sale or another foreclosure alternative, try to work with the bank to minimize the credit impact, and make sure you get such promises in writing.
See also: bankruptcy vs foreclosure on credit.
Everyone knows it is important to put money aside for a rainy day, but actually finding that extra money can be quite a challenge. One of the most common reasons people give for failing to save is that there is no money left at the end of the month. When there is no money left over after paying bills and meeting routine household expenses it is nearly impossible to build up either a short term emergency fund or a long term nest egg.
Even so, it is important for every worker – no matter how much or how little they make – to pay attention to savings. Without an emergency fund the loss of a job or a sudden unexpected expense could be devastating. Living from paycheck to paycheck is always dangerous, but when job losses are rising it can be even more so. But Read full post…
30 Oct
Posted by admin as Credit Score
Whenever you apply for a loan on a car or house, or whether you apply for a credit or store card, your credit history will probably be looked at by the vendor. They do this to protect their investment; after all if you are doing business with someone then you would want to know about their financial history wouldnt you? So when you next apply for a financial product you should give a thought to any old debts (even if they are now cleared up), or even any missed payments that may show up on your credit history. But many people wonder how long negative information really stays on credit report and how much notice the lenders really take of it?
The question, how long negative information really stays on credit report, is not an easy one to answer.
We all know that higher education is one of the best investments we can make for the future. This is the reason why many students, though they cannot afford to go to college or university, would often times turn to student loans to be able to pay for costs. Getting a student loan is easy with the many lending options available to a student. The hard part starts after graduation, when the student is then expected to pay for the loan.
If you’re a fresh graduate who has managed to acquire a high paying job right after graduation, then repaying a student loan will not be a problem for you. But for most fresh graduates, it’s going to be a difficult road to final payment the first few years of their careers. Thi