Credit Card Rules

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.

Credit Score Affecting Home Purchases

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.

What is credit ?

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 ?