Credit Repair Strategies

Credit Card Rules

2009-05-03T19:59:00.000-07:00

Paying on time and staying within your credit limit may not be enough to maintain your interest rate and staying in the good graces of you credit card companies.

At this point in time the aggrement you had can change at anytime for any reason. The economy,marketing conditions and business strategies as reasons a consumers rate might change.

Some lenders can reduce a credit card limits just because there is late payments,decline in credit score,and balances that are to close to the credit limit.

Your borrowing power is restricted by your credit card being lowered. For example if your have $1,000 credit line and you charge $ 400.00 if you creditors decide to lower your credit limits to 500.00 suddenly without spending another dime you have used 80% percent of your available credit.

FICO score what is it ?

2009-04-24T16:40:00.000-07:00

FICO stands for Fair Isaac Credit Operations. Now what does this mean to you ? It determines you credit score which in turns allows you to get credit at the interest rate set by the creditor.

A score can range from 0-900.Some places even say 0-850 . The most acceptable score is above 700.If it falls below 700 you may still get the credit but you will pay a higher interest rate.

How are your scores determined ? They are grouped into 5 categories. Each category make up a percentage of your score.

35 % Payment History
30% Amounts Owed
15% Length of Credit History
10 % Types of Credit Used
10 % New Credit

100 = Your Credit Score

Credit Score Affecting Home Purchases

2009-04-24T09:56:00.000-07:00

Credit Scores in today's home buying market is so important. Basically anything you buy relies heavy on your credit score.

Credit Scoring is done by three agencies called Transunion, Experian and Equifax. The creditor assess you ability to pay by your credit report. There could even be a difference of 100 points between each agency. Many lenders use the middle score to decide if you will get the loan.

In the past you could obtain a loan with a 620 which was acceptable for a Fannie Mae and Fannie Mac investors. However thinfgs have changed .Youneed a 720 or better to get the best possible interest rate on you loan. Lower scores can definitely affect your interest rates, loan to ratio or loan fees. Sometimes even a larger down payment is required. In these times that maybe almost impossible.

There still are loans from FHA investors accepting as low as 600. Don't forget VA loans.

To tell you the truth if you are thinking of investing in a house obtain you credit report with scores from each of the agencies and see where you stand.Planning a budget now will definitely help.

DO you know your debt to ratio ?

2009-04-23T16:41:00.000-07:00

Many people do not know what debt to ratio means. Debt to ratio means the total monthly payments divided by the total monthly gross income.If the ratio is over 50 % the banks may not approve your loan.

Remember in you calculations you must include the following:

Gross Monthly Income

Salary
Child support
Bonuses
Alimony
Commissions
Spouse Salary
Other
Child Support
Total Income

Monthly Fixed Income

Rent or Mortgage
Automobile
Automobile
Alimony
Child Support
Bank Installments
Other

Before taxes Proposed Loan Payment
Total Payments

Evaluate your situation abnd see what ways you can decrease the amounts.You may even have to have a home based business to help with the income.

So what do you do ? Contact the lending institution before apply for any credit to determine what their debt to ratio polices are.

What is credit ?

2009-04-06T16:39:00.000-07:00

Credit is defined as trust-worthiness and credibility.Getting credit is an art. It is a privilege . It can easily be gotten and easily taken away. I know from first hand experience both views.Credit repair can be a nightmare.

Credit must be handle from the minute you make your first purchase. When you use your credit card you should start thinking on ways to be debt-free. Yes debt-free. Credit can help you when you need it but it can destroy things if taken for granted.

It is never too late to start planning for being debt free. Yes it can be done but you need to want to be debt free. You need to want to have financial freedom. Yes there wil be people around you saying impossible ..but is it ?

No it is possible but you need to start with a call and say "I need helpwith my credit score.". "I need guidance" . What do I need to do to set me free ?

How much is too many credit cards ?

2009-04-03T16:43:00.001-07:00

You know you have too many credit cards when you have a credit card for each department store.It definitely can cause you to have a low credit score.People don't realize that by having too many credit cards can definitely affect your credit score.I know it is easy to get them once you have a high credit score but it becomes lowere credit score easily.

You can not have your credit limits to the max or even half way. For example if you have a credit limit of $1,000 and you are at 50% or $500.00 of credit usage or more then you are harming your credit score. That will increase your debt to ratio amount. If you have it on one or all your credit cards you are on the wrong path to financial freedom.

You need to start looking at you credit limits, interest rates and policies of each credit card to see what you can do . It will take time and require persistance .I personally have those matters taken care of for me. I am a Certified Credit Counselor who knows what it takes to get that straightened out.

Do you know what your credit score is ?

2009-04-03T16:24:00.000-07:00

Many people do not know what their credit score is until they get turned down for credit. What a devistating feeling when your heart is set to buy your dream house,a car or even start a business just to be told you don't qualify.A feeling of hopelessness or helplessnes starts creeping in.You don't know where to go for help.

I know first hand how that feels. I lost my house,my car and my job. No place to go..I did not know where to turn.I thought I could just make a few calls and repair my credit myself..boy was I wrong.It wasn't until I became a Certified Credit Counselor did I really understand what I had to do. I had to spends hours and sending letters. It was nervewracking.

I came across a wonderful company that does credit repair and gives you a personal assistant and financial assistant and so much more.I vowed to myself that if I could help people not go through what I did I would help them .

I am working with a team of dedicated,goal driven individuals who are on a crusade to make a difference in people's lives.Each has their own story to tell.I truly enjoy working from the comfort of my home and having the satisfaction of knowing I am helping others reach their financial destination of financial freedom.

My advice is to obtain your free credit report and see where you stand. Believe you me you do not want to be surprized.