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Your credit maybe considered bad and causing a low score for a number of reasons. While the are numerous reasons for bad credit some of the more common ones are as follows. You have numerous credit cards that are maxed out or close to the credit limit, you have unpaid judgments or collection accounts, you have 30 day lates showing on your payment history. All of these examples can cause severe drops in your credit score.

One area people overlook that can negatively impact their credit report is failing to honor mobile phone contracts. Cell phone companies give away free phones to customers who sign on with their services for a specified period of time, usually one to two years. Terminating subscription to the phone service before the expiration and failing to reimburse the phone carrier for the cost of the free phone is considered breaking the contract. Cell phone companies would then report to the credit bureaus and cause a blemish on the credit history. Such blemishes are not serious, but they nonetheless lower credit scores.

Credit scores generally range from about 350 to 850.

• 800+ = great credit
• 700-799 = good credit
• 600-699 = average credit
• 500-599 = bad credit
• under 500 = hard to get a loan at all

Your credit can be bad for a variety of reasons: Late payments High Account Balances Bankruptcy Collections Charge offs To minimize negative on your factors you will need to pay down balances, make payments on time, dispute incorrect information, and let the passing of time lessen the impact of past bad credit.

To many inquires at one time can affect your credit score.

If you credit score is low because of a high balance on a credit card transfer some of the balance to another card. Try not to open a new card because to do this can also reduce your score.

One reason why your credit may be bad is because of erroneous information reported on your credit report. This can happen to anyone and is actually quite common. This is one reason why you need to check your credit report out at least once per every 12 months. By checking you credit report for free you can keep an eye on your credit and make sure that you take care of any erroneous information when it happens, not when you are trying to apply for a loan and it comes as a surprise to everyone. Utilize your one free annual credit report each year to take a look over your credit to make sure everything looks well. There are many reasons as to why credit report errors can happen so make sure that if errors do happen to you that you rectify the situation immediately.

Maintaining high balances on your credit cards and other revolving debt negatively impacts your credit score. Paying down credit cards balances below the 70%, 50%, and 30% thresholds is a quick way to boost your credit score.

Paying down your credit card balances to around 30% will help your score. If you can, try to keep the balance at that level at all times. If you need to raise your score quickly, and don’t have the money to pay down your balances, you may request that your creditors increase your credit limit. This will in turn lower your balance in comparison to the limit. Only use this technique if you are responsible with your credit. Once your limit is increased, it may be tempting to go on a shopping spree. Know that if you do this, you will be in a much worse situation than when you started. Not only will you have more debt, but you will increase your ratio of balance to limit.

There are several ways to increase your credit. However the fundamental principle is the bills must be paid on time. This doesn’t mean by the due date. For the sake of your credit a payment must NEVER be more then 30 days late. If you are acquiring 30 day lates on your credit then your credit standing will deteriorate quickly. Judgments also hurt your credit even if you pay them.

It is also important to note that a credit score is a snapshot. Although it shows your payment history, length of credit, etc. having inaccurate (negative) information removed from your credit bureau report will immediately reflect an increase in your score.

If you do decide to pay off some of your credit cards, be sure to leave the cards open. The credit bureaus look favorably upon accounts that have been open for a substantial period of time, especially if they are showing a zero balance.

Remember that a credit score amounts to a prediction of how likely it will be that you go 60 days late or more on your mortgage in the next two years. One thing that will really lower this score is if you carry high balances on revolving debt and then start making a few of the payments late. This is the pattern of a consumer who is close to getting in trouble with debt.

Things that may go into a collection or judgment that will hurt you credit are; unpaid medical payments, unpaid utility payments, and unpaid cell phones or cable payments.

While many borrowers are concerned with what they need to do in order to qualify for a mortgage, there are also a number of things that borrowers should not do once approved for a loan.

In addition it’s a good idea to give yourself a couple of extra days if possible to schedule movers, landscaping companies or and other repairs for the new house. This will give you extra time to get the closing completed and the transaction funded. If you schedule movers or other companies the same day as closing or even the day after you might be in for a stressful situation if for any reason the closing is delayed.

Always consult with your mortgage professional when there is a question regarding any of this because it can cost you your home loan.

After applying for a mortgage do not let anyone pull your credit or apply for any new credit at all. Try to keep everything the same as far as credit goes as when you where initially pre-approved unless told different by your loan officer.

Do not ignore to tell your mortgage broker about any material changes in the purchase agreement you and the seller come to agree upon after the mortgage process has begun. A slightly lower sale price can alter the loan-to-value ratio and requires re-submission of loan documents. Your mortgage broker and lender have to be made aware if any addendum is later attached to the purchase contract.

After applying for a mortgage be sure to advise your loan officer to any changes in your marital status or name changes. This will help you avoid problems with the final closing documents and/or title problems.

Be certain not to lease a car or allow a car dealer to “pre-qualify” you for a car lease or loan. It doesn’t matter whether or not the car is new or used, because either way this would fall under the category of taking on new debt, and is a very common reason for individuals, particularly those making purchases for the first time, run into complications with their mortgage application process after the fact. If you have any need to make any further applications for substantial credit, please give us a call.

Do not take on new debt. The temptation is strong. There are so many big purchases that people want to make in connection with a move: appliances, window treatments, furniture, etc. When you add to this the fact that, today, everyone offers easy terms and no money down—well, why not just do it? Answer: because you will change what the mortgage industry calls your “debt-to-income ratios” (the relationship of your income to your debt).

Do not change jobs. If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. But, you ask, “What if it’s a BETTER job, for MORE money, in a DIFFERENT field?” Still, try and wait until AFTER closing. One of the factors mortgage companies consider is length of present employment; they are partial to stability. At the very least, changing jobs initiates the need for more paperwork, and may delay your closing.

Do not pack too soon. Well, go ahead and pack your clothes and dishes. But do not pack your bank statements, tax returns, or other important paperwork. Most especially, do not pack your checkbook! More than one buyer has had closing delayed while a friend or relative hurried over with additional funds because the checkbook was in the moving van.

Do not lease a new car. This should go under the general heading of “no new debt.” It is highlighted here because, for some strange reason, many buyers do run right out and lease a new car during the time between mortgage application and closing! As with any debt, this will change your “debt-to-income ratios” and may cause you not to qualify for your mortgage.

Do not stop making your regular monthly payments after applying for a mortgage. Borrowers refinancing their home to payoff other debts sometimes stop making their regular monthly payments because they are going to payoff the debt. This can cause problems during the loan process because not making payments on time may hurt your credit rating. Lower credit scores may cause your interest rate to go up or result in you being denied credit.

Once you apply for a mortgage to refinance or for a home purchase your job is not done. Be involved, don’t just wait for the call to schedule the closing. Check with your mortgage broker, find out what is going on with your loan, talk to your realtor make sure everything you want done is getting done. Be proactive not reactive, don’t wait for a problem then rush to solve it, work to prevent any issues form happening in the first place.

Do not pay off any old collection accounts on your credit report unless you were specifically told to do so by your mortgage professional. Paying off old collection debt will often signal to the credit reporting agencies that there is new activity on an negative entry and actually lower your credit score.

Credit scores have become very important to consumers for a variety of different things. Your credit score determines whether you will be, approved, declined, required to place a large down payment, or have to obtain good or very unfavorable terms for not only mortgages, home loans and cars, but for a variety of other things as well. Your credit and credit scores can now play a major role in determining what premiums you pay for homeowners and auto insurance, whether or not a utility company (phone service, gas service, electric, etc…) will require you to place a deposit down to get service turned on (and how much of a deposit), your rate and determine whether you will be approved or declined on personal loans and credit cards, whether or not you are able to rent an apartment or home, amongst many other things. Many employers now look at a potential employee’s credit report before hiring them. Therefore, you can see how credit and credit scores can play an important role in your life and with bad credit it can force you to pay higher interest rates, higher payments and higher premiums on numerous different items. There are many factors that help contribute to determine a persons credit score that you will learn about here.

The number of open accounts you have influences your credit score. Less than 3 or more than 5 can decrease your score.

The companies that determine your score do not fully disclose all the inner workings of what goes into your score. Granted they tell you what percentage of types accredit help or hurt you but they don’t get into the nuts and bolts of it all. There are however some basic rules of thumb. One rule of thumb is to have your balance be lower then half the highest available balance. So if your highest available balance on a visa card is say 10k. Make sure your actual balance is below 5k. There is also a seasoning factor. Someone who has maintained good credit standings for a long period of time will generally have a higher score then someone who just established their credit.

Whether you pay all your bills on time is probably one of the more important aspects that determines your credit scores. Most companies that extend credits to you report to the major credit repositories on a regular basis. Any late payments history will have a negative effect on the credit scores. The more recent the reported “lates”, the higher the impact on scores. Lender banks consider mortgage payment “lates” much more severe than credit card late payments, and punish homeowners with mortgage “lates” accordingly with higher interest rates and/or lower loan amounts.

Your credit report will list any collection or charged-off accounts that you may have. Having these kind of accounts reporting will definitely have an adverse affect on your credit score. A word of caution though. Paying off collection accounts, especially older ones may cause your credit score to go down, at least in the very short term. If you are applying for a mortgage please consult with a mortgage professional such as myself before paying old collection accounts.

The number of recent inquires has an affect on your score as well. Although it does not carry as much leverage as many other factors in determining your credit score you should still avoid having your credit checked unless necessary.

If you have had a bankruptcy, you can expect it to stay on your credit report for up to 7 full years. Although it will still show, there are ways to still increase your credit score after a bankruptcy.

Completing a loan application is the first thing you’ll do when refinancing your mortgage. You may also need to provide a variety of documentation to help your mortgage lender approve you for a home loan. The documentation will vary depending on the lender you choose, your loan program, and your personal financial situation.

It’s also handy to have available your latest mortgage payment coupon, your mortgage note, and any payment coupons for credit cards you are paying off.

The extent of the documentation you will need to provide to your mortgage broker to get approved for a loan will depend on the type of loan you and your mortgage broker decide to use. Your mortgage broker will help you decide what amount of documentation will best fit your financial situation. Common types of documentation are Full Doc, Alt or Light Doc, Stated Doc, and No Doc. Full Doc is exactly what it sounds like you will need to provide full documentation of your income assets, etc. Alt Doc or light doc is an alternative to Full doc where rather than providing pay stubs and/or W-2s bank statements can be used to show income. Stated Doc is when as the borrower you tell the broker what your income is and do not provide additional documentation. The income must be with in reason for your type of employment and job title. For example you can not be a part time dish washer making 100K per year. No Doc is when no documentation is provided for your employment assets, etc. As the amount of documentation decreases the Lenders take on additional risk. With the additional risk the lenders become more stringent on other qualifying factors such as credit. Rates also increase with the increased risk to the Lender.

The following is a list of documents generally required when applying to refinance. You may or may not need them all, but for a fast and easy loan process, have these items available when you’re ready to complete your mortgage application. * Proof of income Typically, you’ll need to show original pay stubs for the last 30 days. * Copy of homeowners insurance Verifies that you have current and sufficient coverage on your home. * Copies of your W2 forms Required for each loan applicant and helps your lender verify past employment and income history. * Copies of asset information Including accounts holding money for closing costs, statements for savings, checking and 401K accounts and investment records for mutual funds or stocks. * Copy of title insurance Helps your mortgage lender verify the taxes, names on the title and legal description of the property.

When it comes to re-finance, it is often a good idea to consult a mortgage professional to identify a loan program that would achieve what is intended to accomplish. In addition, whether a refinance makes good economic sense also depends on the anticipated costs of the refinance transaction, which only a mortgage loan officer can provide.

Contact a mortgage professional for a complete listing of documents which you may be required to produce specifically for your state, county and loan program.

Documentation that may be needed for a refinance may include: Last 2 Years W-2’sLast 2 pay stubs Last 3 months statements for all asset accounts to include but not limited to: checking, savings, money market, 401K, stocks, etc. (must provide all pages for each account)Bankruptcy paperwork (all pages of filing and discharge)Divorce Decree (all pages of the Decree/Judgment and any attachments.)Social Security/Pension award letters Proof of 3 months receipt of child support/alimony Satisfaction of any liens, judgments and/or collections that have been paid Property tax bill Warranty Deed Mortgage Note Owner’s Title Insurance Policy Prior survey Clear copy of your Driver’s License or State issued ID and Resident Alien/Green Card

Cash-out refinancing is often used for home improvements or to consolidate high interest debt.

In addition you may need your HUD (closing statement) from the closing when you last purchased or refinanced the house. This depends on what type of loan program you are choosing, usually in cash out refinance situations.

There are two types of refinances:- Rate/Term, where you reduce your rate, payment or term (ex: 30 year fixed to a 15 year fixed)- Cash-Out, take out more equity on your property

If your mortgage has been denied, there are many reasons why. Here are some of the most common reasons.

You could be denied because of residency status. While some lenders will not lend to you if you are not a US citizen, there are other lenders who will. Also if you are unable to produce sufficient documentation for your income and have lower credit scores you might be denied without the possibility of a stated income program.

Your loan could be denied if you did not provide accurate information during the initial loan application. Underwriters verify nearly all information so you may as well provide accurate info up front!

Sometimes applications have been denied because the loan officer did not ask for the proper information or submitted too much information (ex Submitting a W-2 on a stated income deal). If your mortgage application has been denied please call and we may have a program for you.

A mortgage application can be denied if the property being bought is not acceptable on the secondary market. For instance, a condominium or cooperative project that is not Fannie Mae eligible, or a house that, based on the survey, has a part of a structure built on a neighbor’s land. While no banks would lend on a property with title or survey issues, some lenders thrive on making mortgage financing available to condos and coops that are non-conforming.

Your loan could be denied if you have not been in the same line of work over the past two years. Your loan could also be denied if you have huge gaps when switching jobs.

Your mortgage can be denied for many credit reasons. Your credit score may not fit the guidelines of the program that you are trying to qualify for. You may have too much derogatory credit listed on your credit report or you may have open collection accounts that you are unable to pay and the lender requires them to be paid to obtain the loan you are looking for. Lack of credit tradelines or lack of a credit history are other big credit reasons as to why people are denied a loan. Credit tradelines are open credit accounts reporting on your credit report. If you do not have enough open active tradelines a underwriter may not have enough information to make a decision on whether you are credit worthy of obtaining a loan from them.

Your loan can be denied because income is not sufficient to support the monthly payments according to the lender guidelines.

Loans are sometimes denied because of things that happen after the application is taken. Some of the more common are:

• termination of employment, such as quitting a job to find one closer to the new home, or getting fired for missing too much work while planning the big move to the new home
• increased debt, such as buying things on credit to go in or with the new home, like furniture or a new car, or spending that anticipated refinance money a little early
• late payments, because the borrowers assumes they can make the payment after their refinance closes or the refinance will pay it off.

Lenders are required to send you a form stating the reason for your loan denial.

Other sites: Mortgage Broker | VA | Stated Income Loan | Closing Costs | Fixed-rate mortgage | Why should I refinance | MIP | Protect Yourself from the Real Estate Bubble | Selling your home with a real estate agent | FSBO| Pay Option Arm Calculator

There are some basic financial things you can do to get prepared for buying your first home. This will make it easier for you and your mortgage broker. Start to collect and organize documentation:

• You should start to save and organize your pay stubs. You will often need the past 30 days worth of stubs.
• Go through your old tax returns and sort out your W-2s or 1099 forms. You will need the past two years W-2s/1099 and may need the past years complete returns
• Organize and gather your old bank statements. You may need these to show money to cover down payment and closing costs (last 2 months). These may also be used in lieu of other income documentation (12 months)
• If you have other assets, 401(k), Mutual Funds, Stocks, Life Insurance, etc. you may also need the past 2 months statements from those accounts.
• Check your credit. If you haven’t checked it yet, now is a good time. You can get one for free once a year. If you are working with a mortgage broker they may be able to sit down with you and go over your credit report. Start to clean it up if you can. If you have charge offs, or collections that you can pay off, or have already paid off, make sure they are accurately reporting.
• Save or get copies of your canceled rent checks. Most banks have an online check viewer. Print out or get copies from your bank of your rent checks for the past 12 months.
• If you have any student loans that are still in deferment, contact them and get a letter of deferment.

If you have experienced a major legal event that affects your finances such as a divorce or bankruptcy - keep all documents in a orderly and safe manner. There is a very good chance that some or all of the documentation from these proceedings will be needed in order to get you approved for the best possible mortgage loan. Borrowers with incomplete or missing documentation often get less favorable terms on their mortgage than ones who have such documents.

Congratulations! We would be happy to assist you on your pursuit of the American Dream.

Start saving. Having savings can help with approval in many ways. Additional funds strengthen your ability to be approved. It helps to show that you have reserves. The savings can also be used for a down payment and closing costs. There are also several out of pocket expenses you should expect to have such as the Earnest Money and Appraisal and/or Inspections. Ways to start saving:

• Pay your self first: This is a common savings technique. Pay your self first means the first thing you do on payday is put some money aside for your savings. This is a fine line you need to walk, don’t jeopardize your credit by missing payments.
• Direct Deposit: if your employer allows you to have multiple direct deposit accounts set one up for your savings account. You will miss the money less if you never see it to begin with in your checking account.
• Clip Coupons: If you don’t now, start. Every little bit of savings can help.
• Cut back on non-essential activities: Home cooking is always cheaper than going out, rent a movie rather than go to the theater, the rental is cheaper and so it the popcorn if you microwave it your self.
• Bring a bag lunch to work. If you go out to lunch or to a cafeteria every day that money can add up quickly.
• Quit or cut back on your vices. Quit smoking, besides being a healthy decision it is a smart financial decision. Do you like playing the power ball or those little scratch off tickets, put that little enjoyment aside until after you have the home.
• Cut back on your current bills. Can you do with out the full cable package for a couple months until you are in the new home? Can you do something to lower your other utility bills, lower the heat or air conditioning, or cut back on electricity and water use?

Pack a first night survival kit. Use one of your moving boxes and pack if full of things you may need your first night. Set this box aside or better yet put it in your car before you even go to closing. Your Survival Kit:

• Tools: Phillips and flat head screw driver, flashlight, pliers or wrench, utility scissors, straight edge razors (simple small tool kits can be bought for cheap at dollar stores, Ikea, and other general home stores)
• Home Essentials: Paper Towels, paper plates, plastic cups, plastic utensils, napkins, toilet paper, light bulb(s)
• Linens: towel(s), sheets, pillows, washcloths.
• Toiletries: soap, shampoo, toothbrush, hairbrush, toothpaste
• Misc: favorite board game, inflatable bed (or pool raft), reading material, deck or cards, not pad, pen, pencil, all purpose cleaner and sponge.
• Complete change of clothes or at least a change of underwear (remember what your mother always told you)

When buying your first home, or any home, please keep in mind that you will not always get the keys to your new house until the mortgage has been recorded with the county and the funding of all money has taken place. Read your purchase agreements carefully because sometimes there may be a specific date or time given that you will receive the keys after the closing (example: the buyer will receive the keys to the property 3 days after closing).

It’s possible you might not need all of the information above because some programs call for different documentation. Your Mortgage Broker’s task of find a mortgage for you will be much easier with this documentation close at hand and could mean the difference of closing on time or not closing on time. The more efficient you are the faster your loan process will be.

Determine how much mortgage you can afford. Start by analyzing you monthly spending. You should collect your current monthly spending data to see what portion of your income goes to necessary living expenses and what you can cut down on. Stop taking on new debt and trim your non-essential spending. Buying a big-ticket item or a new car can only hamper your dream of homeownership. Determine how much of your income can be allocated towards housing expenses, then consult a mortgage professional or use the mortgage calculators on this or other websites to determine how much mortgage can you afford. Be realistic, when estimating housing expenses, in addition to monthly mortgage payments, do not neglect other inevitable expenses such as property tax, homeowner insurance, maintenance and the occasional home improvement costs.

Other sites: Loan Officer | Delinquency | What not to do after you apply for a Mortgage | Why is my credit bad | MIP | VA | Fixed-rate mortgage| Pay Option Arm Calculator

After your bankruptcy is discharged your credit score will fall dramatically. There are however ways to rebuild credit and increase your score quite easily. One of the best methods is a secured credit card. These cards are fairly easy to obtain and are available through most major banks. Rent to own centers often report to the credit companies and are another great way to rebuild your credit. Just be sure to keep the payments manageable to avoid repeating the financial problems you are trying to recover from!

When rebuilding your credit after a bankruptcy it is extremely important to make all of your payments on time. Any adverse payments on a bankruptcy will limit your options on obtaining a mortgage.

If you are in a bankruptcy or have been recently discharged, you may still be eligible to refinance your home. Your mortgage broker will have programs that can fit your needs. Whether its taking a little cash-out, or simply paying off some items not covered in the bankruptcy, it is a good idea to refinance to get you back on your feet.

Many of our customers rebuild their credit by using their home equity to refinance and take cash out to consolidate debts and pay off all of their old bills, giving them a lower total monthly obligation which they can pay consistently every month. It is a fresh start for customers who are coming out of a bankruptcy, and paying a mortgage on time month after month is a great way to improve their credit score.

Make sure that all of your paid off credit cards are closed out. You should give your credit card companies written request to close your accounts. Open credit lines with a zero balance (especially if you have many) can potentially hurt your credit rating. Only keep the cards you use regularly and the ones you have had the longest.

You should check your credit report three to six months after the bankruptcy discharge and make sure the discharged accounts are being reported as “discharged in bankruptcy”. Oftentimes, creditors report the discharged accounts as charge off, collections, open unpaid or other such ways which will have a more detrimental effect on your credit score. It is very important that you keep all bankruptcy papers, especially the list of discharged creditors.

If you have not filed your bankruptcy yet, be sure to consider carrying some liabilities through the BK (i.e. do not include them in the bankruptcy). This can dramatically influence your ability to re-establish credit following the filing, but is not always available.

There are five major types of information used to calculate a FICO score and they are listed below. Each type of information counts as a percentage of a total FICO score and the calculations may vary a bit from each credit agency. This is a good rule of thumb to follow: - 35% Payment History - 30% Amounts Owed - 15% Length of Credit History - 10% New Credit - 10% Types of credit

Using credit is a proven way to re-build credit after bankruptcy. If you cannot get a credit card, apply for credit from department/drug stores and gasoline companies for expenses that you normally pay cash for. Also apply for a debit card, which you need to first deposit funds. You may also want to have a relative co-sign your credit application to ensure approval. Most important of all, once you are extended credit, be certain to make payments on time.

Once your bankruptcy has been discharged your credit will need to be cleaned up. Keep copies of all bankruptcy documents and attain documents from each creditor (credit cards and collection agencies) that indicate that the debt was removed via bankruptcy.

You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file. When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a “reasonable period of time,” unless it believes the dispute is “frivolous or irrelevant.” If the credit reporting agency cannot verify a disputed item, it must delete it. If your report contains erroneous information, the credit reporting agency must correct it. If an item is incomplete, the credit reporting agency must complete it.

Don’t Ignore the Problem. If you just hope the problem of errors on your credit history will disappear, then be prepared to wait a long time. Credit information can remain on your report for as long as seven years and up to ten years in cases of bankruptcy.

The credit agencies update every 30 days. If you Dispute an account on your credit report, the agency is obligated to respond to your request with in 30 days. With accurate proof of a faulty account, you will be able to remove that from your credit report

You are allowed a copy of your credit once a year from each credit bureau. Along with your credit report will be a dispute form.

If there is incorrect information on your credit report such as a payment that was reported late that should not have we will be able to correct the information within 3-5 days by going directly through the 3 major credit bureaus and get a rescore to reflect what your credit score should be.

If you are unable to spend the time to write the letters yourself then you might want to hire a credit repair company to do this for you. They will act on your behalf to write the necessary letters to the 3 credit bureaus. There are many companies to choose from these days and it might be in your best interest to consult with your Mortgage Broker as to which company will give you the best service.

The best thing to do to keep an eye on your credit report is to join a Credit Monitoring service such as PrivacyGuard.com they even provide a $1 trial for 2 months. You get all three credit reports with the scores included.

Improving your credit score can be as simple as spreading a large amount of debt on one credit card, over three or four different credit cards.

Prior to applying for a mortgage fixing all credit report errors will optimize your chances of obtain the best financing terms available.

If you find an error, the Fair Credit Reporting Act requires credit bureaus and organizations that provide information to them to correct the mistake. But you have to get the ball rolling by requesting an investigation.

Under The Fair Credit Reporting Act effective October 1, 1997, a credit reporting agency has 5 days from the date of receipt of a written investigation request to contact the appropriate credit grantor about investigation the complaint(s) and receive a reply back within 30 days of the original notification date. Within 5 business days after the completion of the investigation, the credit bureau (i.e.: Equifax, Trans Union, Experian) must send a written report to the consumer with its findings with a copy of the revised report if there were nay changes made.

If a credit bureau can not verify that a disputed item is correct as reported, it must modify or remove it from the consumers’ file. If the tradeline confirms a later date that the information was indeed correct, the credit bureau will add the information back into the consumers’ file. It will notify the consumer in writing as to the changes, within 5 days of the change.

DO NOT expect information to be deleted just because a collection account or debt has been paid. Derogatory items will remain on your report for 7 years. The 7 year clock on a derogatory item falling off your report does not start until the item has been satisfied.

The consumer must write a letter of dispute regarding the erroneous information reported by a specific credit reporting agency. The letter must reference; Your full name, Address, Social Security number, the tradeline Account numbers, Brief statement of what is incorrect. Copies of supporting documents (if any) The letter MUST be sent by overnight mail, with return receipt requested. This verifies when the 30 day clock starts ticking.

When disputing questionable items in a credit report, always remember to dispute with all three major credit bureau agencies. When applying for a mortgage, all lenders look at items reported by all three credit bureaus.

Make sure to keep the “acknowledgment” letters that the bureaus send to you at about 2 weeks. There is a date they have officially acknowledged they received your letters in which the 30 days in the FCRA should start.

Rapid rescoring services are an effective, legitimate ampersand growing sector of the consumer credit industry. The good news is that they work. But you can’t use these services directly. Companies that offer rapid rescoring work directly with mortgage lenders and brokers, not with consumers. If you are serious about fixing errors on your credit report, contact your mortgage broker or lender and talk to them about credit repair today.

The credit bureaus are not government run agencies, but are for profit, multi billion dollar industries that make money off of selling your personal information. It is proven that they make more money off of you with bad credit, rather than good credit, so don’t believe everything that they tell you in results you receive back. Make sure to spend time, in detail, looking at your results and ensuring things like the date of verification have the current date. 50% of Trans Union’s verified accounts have old verification dates, which means they never investigated that account, yet put verified as a result anyway.

It is up to the consumer to keep a close watch on their credit. You are allotted one free report a year. But checking your credit once a year is not enough. Experts recommend that you check your credit report before you go out looking for a loan. That means before buying that car or refinancing your home. Also, just as a rule of thumb, you should check your credit at least twice a year in addition to the times listed above. If you are not shopping for any loans, it would still be wise to check your credit every four months. Be sure to utilize the one free report from each of the credit scoring bureaus.

If a creditor verifies a previously deleted item after the 30 day window, they can add it back on. A notice of this Reinsertion must be sent the consumer within 5 days.

The “30 day rule” is a credit repair myth and is not used by knowledgeable credit repair companies or consumers. This 30 day rule only causes reinsertions if not used properly. If the bureau is forced to delete an item at day 31, then most likely most of those accounts will reappear later, with proper reinsertion notification. The very next line in the FCRA states that if the creditor or credit bureau verifies an account late, or after the 30 day timeline, they can simply add it back on.

Your credit picture is very important and should be kept up the entire time. Do not wait until the last minute (I.E. you want to apply for a mortgage next month). Credit repair is a process and you should allow appropriate time to remove items from the bureaus

Credit reporting is an imperfect system and there are times when you’re credit is tainted and it’s not your fault. Equifax, Experian, and Trans Union don’t always report the same information.

With a debt consolidation loan, all your debts will be consolidated into one simple monthly payment. Debt consolidation works to eliminate your late fees and reduce your interest rates to make that one monthly payment lower than ever. Avoid taking drastic steps such as bankruptcy Debt consolidation programs are viewed as positive by banks and creditors. By engaging in a debt consolidation loan, your creditors realize you are making a good faith effort to repay your debt. Creditors are willing to work with debt consolidators to reduce your payments and in turn, your debt. Pay off your debt quicker and easier than you ever thought possible with a debt consolidation loan.

The ability to convert short term debts into small long term financing is one of the most powerful arguments for refinancing, and can help reduce your total monthly expense by up to 50% or more.

When should you consider a refinance for debt consolidation?1. If you are only able to pay the min balance on credit card debt each month. 2. If you have credit cards with high interest rates.3. If your credit cards are maxed out.4. High interest auto or recreational vehicle loans5. High interest personal loans or college loans

Not only can a refinance save you money each month, but for many people debt consolidation refinance: Is a second chance to get their finances under control. Provide an opportunity to learn how to better manage their credit in the future. Very often can improve your credit score, which in turn could save you more money by giving you access to better insurance rates.

In most cases you can deduct the interest paid on your mortgage on your federal taxes. You cannot deduct interest paid on credit card, vehicle or personal loans on your federal taxes.

Why would you want to pay 18-24% interest on credit cards when rates are 1/3 to 1/4 of that for your home. It just doesn’t add up and make sense to continue to pay those high rates when you have the option of lowering those rates. This can save you thousands of dollars not to mention you will only have to write one check instead of multiple checks every month.

You will not always be able to consolidate all of your debt. If you simply have too much debt to consolidate, you should focus on paying off the accounts with the highest interest rates first.

It is important to understand that although a consolidation loan may help you get your finances under control, it doesn’t “eliminates debt”, as some unscrupulous companies claim. Rather, it rolls all of your debt into one loan, with one payment and one interest rate. Debt consolidation should not be seen as an open door to apply for more credit. It should be seen as a tool that will help you get your finances under control, once and for all.

Homeowners who are heavily in debt and have difficulty managing their finances should always consult with a financial advisor before using debt-consolidation loans to get temporary relief. By taking out a debt-consolidation loan, which uses the home as collateral, to pay off credit card debt and other obligations, which are unsecured debts, essentially transfers all unsecured debt into one that is secured by the home. While defaulting on credit card debts usually leads to nothing more than a bad credit profile and some collection calls, defaulting on a mortgage can result in foreclosure of the home.

Credit reports are your lifeline in the financial word in regards to obtaining financing. You want to be sure that your history is reflected accurately. Many times people find out too late that their credit report is not correct. It is a good idea to review your credit report once every 3 months to insure all your account history is accurate. Common problems on credit reports:- Not your account- Loans reporting a balance which have been paid off- Collection accounts that are incorrect- credit accounts discharged in bankruptcy- Judgments that have been satisfied not reporting as satisfied- Credit cards which you were only an authorized user on showing lates- Many more These problems can lead to lower scores and less than ideal rates. Correcting your credit report is not an overnight task, so plan ahead and make sure you have the most accurate credit profile as possible. You can dispute your accounts individually, or you can hire a company to work with you on fixing the incorrect information.

Reviewing your complete credit report with one of our mortgage professionals is the best way to fully analyze your personal credit situation and determine which accounts it would be most beneficial to consolidate in a cash out debt consolidation scenario.

The first thing you need to do is gain access to your credit report. You can buy reports from Equifax, Trans Union and Experian, the largest credit reporting agencies. Buy a report from each, because one may contain errors that affect your credit score.

When applying for a mortgage, your credit rating is one of the first things a lender will look at. They’ll be loaning you a large amount of money, and if it seems that you are likely to default on the loan, lenders will hesitate to loan you the money. Usually, lenders compensate for this higher risk with higher interest rates, so it is in your best interest to have a high credit score.

Credit reports that contain information from the three major credit repositories are called Tri-merge Reports. Base on each individual’s credit history, the three repositories each assigns a numeric value, called Credit Score. In addition to a credit profile free of negative entries such as late payments and collection accounts, an acceptable credit score is also important to mortgage lenders.

If you are looking to get a mortgage for a home then it might make sense for you to contact your mortgage broker and have them pull credit. Your broker or loan officer will go over the report with you and let you know what needs to be addressed if anything. The most important things is to pull you credit now. Don’t wait until you have a contract on the house because you may find that you need time to work on some issues that show up on the report.

Your credit score is calculated as a statistical summary of all the different information in your credit report, including - History of Paying Bills- How much debt you have outstanding- length of time you’ve had credit- number of cards and loans- your credit limits- the types of credit you have

You are entitled to one free credit report, from each of the three reporting agencies, once a year. When obtaining a mortgage line it is good to review your own credit history first. Banks and lenders will rely on these reports to represent your willingness and your ability to repay the monthly payments in a timely fashion. If you find a account reporting in error, it is quite simple to dispute an error online, directly with the agency reporting the error. The websites for the three agencies, offer this service when you order a report and the process of disputing an error is handled directly online.

There are five major types of information used to calculate a FICO score at any given point in time are listed below. Each type of information counts as a percentage of a total FICO score: - 35% Payment History

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