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Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best or try to deal with the issue when buying a big ticket item.

Your Monthly Credit Card Statement And your responsibilities

Credit Score, General Credit Related Consumer Information, Money and Credit No Responses »

Jul 102013

A potential lender would primarily assess a borrower’s creditworthiness by their credit reports and in turn their credit scores. Your bill payment history is one of the main criteria for creditworthiness; the strength of your credit history is what determines if you qualify for a credit card, a home mortgage or a car loan and at what interest rate!

Have you always paid your credit card payment on time? This is one of the most crucial pieces of information reported on your credit bureaus.

Not receiving a monthly statement does not exonerate you from paying on time or the correct minimum payment.

Pay consistently and on time.

Credit Card Companies mail out statements as a courtesy – it is your responsibility to follow-up on the missing statement, but more importantly to contact them and make sure payments are on time.

To earn a good to excellent credit score you have to pay all of your bills, loan installments and credit card payments on time, religiously. Late Payments are reported on your credit reports for years to come and decrease your credit score. You have to abide to your contractual agreement, you promised to pay on-time. You can make extra payments anytime, but the minimum payment has to be done by a certain date – there is absolutely no flexibility!

Avoid the small and large mistakes that can decrease your credit score for years!

Schedule some quite time on a weekly basis and get into the habit of reviewing your credit card statements and paying them as soon as they show up in the mail or on your e-mail in-box.

Consider setting up online accounts to pay all of your bills electronically; you can schedule post dated your payments.

Mail your payments in the return self-address envelope enclosed with your monthly credit card statement to make sure your payments are being delivered to the correct address and department. Mail the envelope 5-7 business days before the payment due date, this information is clearly marked on you statement. Be mindful of holidays, particularly Christmas and New Year the mail services tends to be a little slower during this season.

You can make payments at any of your bank’s banking centers and make your payments at the counter with the help of a live teller.

Pay by Phone

Also see:

Can’t find a Credit Article about a subject you are interested in? Need Help with your Credit Problems?

Call: 303-997-3375

Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best or try to deal with the issue when making a big ticket item.

Automobile Financing and Your Credit Report Score

Credit Score, Money and Credit No Responses »

May 202013

Your credit score is a simply 3 digit number that represents the sum of the information contained on your credit report. It helps lenders to decide your credit worthiness. Your credit score will be used to determine your approval for a loan and how much it will cost you, in other words the Interest Rate you will be approved at.

High-Risk = High Interest Rate

Here a couple of things that also affects the interest rate on your car loan:

Term

In most cases shorter term car loans tend to have a lower interest rate. The risk factor is lessened by term of the loan; less time for things to change in your life that make an impact on your ability to pay. You should note that the shorter the term the higher the monthly payments.

New Car vs. Old Car

It is a common practice in the automobile financing industry to offer lower interest rates for new cars and higher interest rates for used cars. Credit Unions might be an exception to this rule. Credit Unions tend to offer the same rates to both new and used car financing, but their lending criteria tends to be more astringent. A Good Credit Score representing low-risk it far more important to a credit union.

Geographical/Region of the country

Automobile financing through banks and other financial institutions offer different interest rates in different parts of the country. Borrowers with similar credit profiles and income etc… might qualify at the different interest rate in the different parts of the country.

Please note, these are the usual things that affect the interest rates when borrowing through a bank or other financial institution, automobile financing through the dealership may work differently.

Also see:

Can’t find a Credit Article about a subject you are interested in? Need Help with your Credit Problems?

Call: 303-997-3375

TransUnion
1-800-680-7289

Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.

Overwhelmed by your Debt situation and don’t know where to start?

Credit Repair, Credit Score, General Credit Related Consumer Information No Responses »

May 202013

Overwhelmed by your Debt situation and don’t know where to start?

This is your opportunity to Learn the Secrets of the Credit Industry and Get Debt Free Years Sooner.

The Journey to Credit Debt Freedom Can Begin with One Step.

Imagine how it would feel never to worry about debt again.

But it is easier said that than done, right?

Taking a cold, hard look at how much you really owe can be sobering – yet empowering. You’re taking your first step from being in the red to getting back in the black.

Here are a few simple steps you can take to start taking charge of your credit debt:

Get a copy of all 3 of your credit reports – annualcreditreport.com

The Fair Credit Reporting Act permits consumers to request a free copy of their credit report once every 12 months.

Equifax
1-800-525-6285

Experian
1-888-397-3742

Lay it all out

By using your credit reports as a guide make a list of all the debt reported on your separated credit reports; not all creditors report to all 3 credit reporting agencies. Make sure to check for Unpaid Collections and Unsettled Judgments section of your credit report.

Prioritize your debts

Pay off the highest-interest debts first; usually those tend to be credit cards even if they have low balances, before tackling the five-figure line-of-credit balances. Your highest interest rate debt is your most expensive debt.

Car loans are particularly important to scrutinize, remember you are paying interest on a product that depreciates as time goes by. (watch out for my article on automobile financing sources – the pros and cons)

Recording your balances in a meaningful and organized way will help you to track where you have come from and where you are going.

Assess where you spend – and where you can save

By using your credit reports as a guide find out how much you spend each month and think about where you can save. Write down what you spend on, starting with your Mortgage, Credit Cards, Personal Loans, ALL your Debt Payments.

Make a household budget

Sit down with your family and prepare a household budget. But first, do not forget to study your credit report, work your way down list of creditors and outstanding balances. Prepare a detailed budget that allows you the opportunity for savings on the interest rates. Try to start making extra payments through the month on the higher interest rate debts. This would also help you see your spending pattern and identify where to can start making small changes in your spending habits.

Don’t forget to include the following when creating your budget:

Cable TV

Car fueL

Car insurance and license

Car repairs and service

Charitable donations

Child care

Child support/Alimony

Clothes

Dental expenses

Entertainment, recreation, movies

Furnishings

Groceries

Internet

Life insurance

Medical expenses, prescriptions, eyewear

Mortgage/Rent

Newspapers, magazines, books

Parking Fees

Personal items

Property and contents insurance

Property taxes

Public transportation

Savings (bank account, 401K)

Telephone/Cell Phone

Utilities, such as water and electricity etc…

Also see:

REPAIRING YOUR CREDIT REPORT WITH EASY STEPS

Can’t find a Credit Article about a subject you are interested in? Need Help with your Credit Problems?

Call: 303-997-3375

E-mail me: cristina@cristinascreditsense.com

Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.

Your Credit Score and Missed Minimum Payments

Credit Repair, Credit Score, General Credit Related Consumer Information No Responses »

Apr 292013

Never miss making the minimum payments on time on your credit cards, car loans, personal loans, etc…No matter what the circumstances!

Anytime you miss paying the minimum payment on the due date or pay less than the minimum, you are considered late. This information is reported to the credit reporting agencies.

Missing monthly payments might not seem like a big deal, but it is one of the worst things YOU can do for YOUR credit report. Your Credit Grantors and Lenders take a deem view to late payments behind the scene. They may not contact you and actively demand payment, particularly for the first 30 to 60 days, but this information will be listed on your credit reports for 7 years.

You might be assessed late fees, compounded interest, your interest rate might be raised making it more expensive to carry a balance or just be charged a higher interest rate next time you try to borrow.

A single late payment might not do too much damage, but creditors will determine your risk as a borrower for months if not years in the future based on this information. The higher number of late payments aka delinquencies, the worse for your credit score. Your payment history makes up 35% of your credit score. Credit Scores range from 300-850, these numbers a derived by assessing your credit history.

I cannot stress enough the importance in using credit the right way to build and maintain a STRONG credit score; late payments are exactly the kind of data that affects your credit score.

Also see:

Can’t find a Credit Article about a subject you are interested in? Need Help with your Credit Problems?

Call: 303-997-3375

Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.

Your Credit Report and Your Mortgage Lender

Credit Repair, Credit Score, Money and Credit No Responses »

Apr 232013

Is Your Credit in Order?

Creditors use your credit report and credit score to determine to grant you a mortgage and what interest rate to charge you. It is critical that you get a copy of your credit reports and credit scores a few months before making such a major purchase.

Your credit rating may be the single most important piece of financial information you have to obtain a mortgage at the best interest rate. Credit Scores have names, such as: FICO and BEACON, depending on the credit reporting agency.

Order your Free Credit Reports from: annualcreditreport.com , you have to pay to obtain your credit scores. Arm yourself with the same information that lenders, bank managers, mortgage specialties and mortgage brokers will use to determine if you qualify to be approved and at what interest rate.

Check your report thoroughly to make sure there is no negative or incorrect information that could hurt your chances of getting a favorable mortgage.

Spend the time to get things in order:

Catch up on any overdue payments
Unpaid collections reporting on the credit report
Outstanding balances still showing on the credit report, although you have paid in full
Total debt showing o on the credit report, such as: credit cards, car loans, personal loans
Unsettled judgements

Your Credit Report and Unpaid Collections

Credit Repair, Credit Score, General Credit Related Consumer Information No Responses »

Apr 232013

One of the most negative items listed on your credit report is a collection paid or unpaid.

This negative information will show on your credit report for seven years or until the statute of limitations runs out, whichever is longer.

Some credit specialists may suggest you are better off waiting until the statute of limitations is up on the account and having it fall off your report in seven years. Beware that seven years is a very long time and this negative information will be viewed by all.

Your credit history has a direct impact on your ability to get:

Utility Services
Cell phones
Jobs
Rent an Apartment

Credit reporting companies must investigate the items you question. If this investigation does not resolve the dispute to your satisfaction, you can post a “statement of the dispute” in your file.

But, you are better off taking charge and negotiating a settlement directly with collection agency.

Obtain your credit reports. The Fair Credit Reporting Act permits consumers to request a free copy of their credit report once every 12 months. Visit annualcreditreport.com to get your free credit report.
Target the unpaid collections listed on your credit reports.
Contact the reporting collection agencies. Negotiate a settlement in writing, before, you pay them.
Fax the “Settled or Paid” letter to all 3 credit reporting agencies.

A paid collection does not raise your credit score, but is goes a long way in showing your good faith and character.

Credit scores work on the basic concept, that past habits and attitudes of the individual in this case the “Credit Consumer” will reflect their future behavior. This is called Risk Management.

Loan Managers and Personal Bankers do not work with just your credit score. If you are going to apply for a Personal Loan or Mortgage, these attempts to take care of past debt can be seen as favorable.

Also see:

MARRIAGE, DIVORCE OR DEATH – YOUR CREDIT LIVES ON

Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.

Joint Credit

Credit Repair, Credit Score, Money and Credit No Responses »

Apr 232013

Take into account all the pros, cons and responsibilities involved in getting joint credit as a couple. Societies approach to Marriage or Long Term Relationships have changed a lot in the last few years – Credit Rules have not! Improve your credit literacy.

A joint credit loan includes you and your spouse’s income, financial assets, and most important your combined credit history.

The benefit is that the credit grantor assesses your collectively credit reports and financial profiles; your financial picture may prove much stronger in helping to get approved for better credit terms. You pay less to borrower!

This can be a good thing or not, when it comes to your respective credit reports! If, both partners have R1 credit reports it is a good thing. Banks and finance institutions usually welcome a joint application; it strengthens the deal by adding the paying power of two incomes; limiting the risk factor. However, if one of the partners is less than R1 in their credit report, this could affect either the approval or the interest rate of the approval.

Understand your obligations – Joint Credit means both of you are responsible for ensuring that debts are paid, no matter where the marriage or long term relationship ends.

You are both responsible for the debt; even if you separate and/or divorce the debt obligations are assigned to each spouse.

The danger here is that a bitter ex-spouse can seriously jeopardize your credit history through these jointly-held accounts.

Joint accounts will appear on both of your credit reports, so if one of the ex-spouses does not pay per contractual agreement, this information will reflect on both credit reports.

Get Credit Wise, also see:

Get Credit Smart

Credit Repair, Credit Score, Money and Credit No Responses »

Apr 232013

The purchase you transact today on credit will grow in debt tomorrow and the next day! Credit is Debt; however, R1 credit will also empower you to access the better things in life.

Learn to use credit wisely! Interest is relentless, it will change and grow. Credit also gives access to many things that add fun and enjoyment to our lives. The trick is learning how credit works, the rules credit grantors operate by.

Credit comes in many forms –credit cards and personal loans, overdraft protection, installment plans and many more!

How do you position yourself to get approved for the best terms of service and interest rates?

When you are ready to go for credit, be a smart shopper. Lenders or Creditors are here to lend or extend credit, as long as YOU are a Safe Risk. Are YOU a good bet? Are YOU going to pay them with Interest and on Time?

Your Credit Report is the most important document in the overall process of getting approved for credit at the best interest rates. Your Credit Rating which is reported on your Credit Report is usually the first document the credit granter will check. Once, you have R1 Credit Rating, banks, loan outlets and credit card companies will welcome you with open arms. Now, you can be a smart shopper, because, you have the credit report they want to see!

You have mastered the ability to qualify for credit at the terms YOU Want. WIN AT THE CREDIT GAME.

Learn the secrets to help lenders grant you all the credit you ever ask for on your terms!

See the following articles: