June 28, 2010
June 27, 2010
Credit Scores, Credit Reports, and Buying a Home – A Guide for Beginners
Joe A. Hayden asked:
Let’s take a brief look at credit scores, credit reports, and how these items affect your home buying power, plus your long-term financial strength. Three companies provide this information to potential lenders, and others who deem this information necessary; Experian, TransUnion, and Equifax. Also, it is a federal law that you be provided a copy of your credit report from these three companies once a year. Go to AnnualCreditReport.com to view your reports.
First, your credit report is a compilation of your credit history related to things like credit cards, revolving charge accounts (gas card or Sears card), previous mortgages, student loans, car payments, etc. It contains detailed information on your payment history, whether or not you have any negative items affecting your credit, plus details of your personal information known by the credit reporting company. It is very important you immediately dispute any negative reports in these credit reports if they are incorrect, or take whatever steps necessary to correct the negatives if they are correct.
Several items on your credit report will affect your credit score, the number that is supposed to represent to the lender the risk they will take on by loaning you money. The factors are, in no particular order, the length of your credit history (the longer they have data for you, the better), the length of time you have had your accounts open (again, the more time, the better), the type of accounts you have (variety is good), your payment history with your accounts (on time, never late is your goal), and the ratio of your debt to your credit limit (Even if you have a credit card with a $100 max limit, if you carry a $100 balance, you are considered 100% financed, and this is viewed as a negative.).
How can you improve your credit scores by viewing the information on your credit report? Most credit reports will have a summary page that tells if there any negative items on your credit report. It is very important you do whatever necessary to remove these items from your credit report. Let me give you an example…
Back in the days before free credit reports existed, I had an outstanding medical bill that went to an old address and was never forwarded that I did not know about until I made an attempt to make a purchase that required my credit to be pulled. This negative showed up because the bill had gone to collections. All I had to do was call the doctor’s office, explain what had happened, pay the bill plus a small penalty, and they immediately reported the matter resolved to the credit reporting companies. I also followed up with the credit reporting companies and it took a few weeks of time for everything to stabilize, but the action disappeared from my credit report and I was able to again get prime rates. It won’t always be this easy, but you have to do everything in your power to resolve all negatives if you want credit and the best rates.
Another way to improve your scores is to get your debt ratios below 50% on your credit cards and revolving charge accounts. As I stated before, just because your balance is low in terms of dollars it doesn’t mean that is a positive if your debt ratios are above 50%. Use your credit report to compare account balances and credit limits and devise a plan to get your balances under the 50% (25% is even better) debt-to-credit-limit ratio as soon as possible. This will definitely improve your credit score.
Two more ways to improve your scores are to pay all of your bills on time, and not to have too many people pull your credit at any one time. There is some debate as to how much your credit score is affected by numerous pulls, and it seems to be less of a problem if all of the pulls are for the same thing, but your score will go down with every credit pull no matter what it is for. Don’t go buy a car on credit, then the next week buy a TV on credit, then a house…Space your purchases out reasonably and monitor your credit scores to see when they recover from each purchase.
Speaking of monitoring your scores, for a small one-time or monthly fee any one of the credit reporting companies will give you your credit score. It can be worth it to monitor your score as you prepare to buy a home to see what changes are improving your score and to have an objective goal to work towards to get the best possible rates and terms.
I hope this post has provided you with some helpful guidance to first gather your credit report, correct any negatives, and then improve your score. If you think of the thousands upon thousands of dollars in interest this work could potentially save you, I think it is well worth the effort…
Jason
Let’s take a brief look at credit scores, credit reports, and how these items affect your home buying power, plus your long-term financial strength. Three companies provide this information to potential lenders, and others who deem this information necessary; Experian, TransUnion, and Equifax. Also, it is a federal law that you be provided a copy of your credit report from these three companies once a year. Go to AnnualCreditReport.com to view your reports.
First, your credit report is a compilation of your credit history related to things like credit cards, revolving charge accounts (gas card or Sears card), previous mortgages, student loans, car payments, etc. It contains detailed information on your payment history, whether or not you have any negative items affecting your credit, plus details of your personal information known by the credit reporting company. It is very important you immediately dispute any negative reports in these credit reports if they are incorrect, or take whatever steps necessary to correct the negatives if they are correct.
Several items on your credit report will affect your credit score, the number that is supposed to represent to the lender the risk they will take on by loaning you money. The factors are, in no particular order, the length of your credit history (the longer they have data for you, the better), the length of time you have had your accounts open (again, the more time, the better), the type of accounts you have (variety is good), your payment history with your accounts (on time, never late is your goal), and the ratio of your debt to your credit limit (Even if you have a credit card with a $100 max limit, if you carry a $100 balance, you are considered 100% financed, and this is viewed as a negative.).
How can you improve your credit scores by viewing the information on your credit report? Most credit reports will have a summary page that tells if there any negative items on your credit report. It is very important you do whatever necessary to remove these items from your credit report. Let me give you an example…
Back in the days before free credit reports existed, I had an outstanding medical bill that went to an old address and was never forwarded that I did not know about until I made an attempt to make a purchase that required my credit to be pulled. This negative showed up because the bill had gone to collections. All I had to do was call the doctor’s office, explain what had happened, pay the bill plus a small penalty, and they immediately reported the matter resolved to the credit reporting companies. I also followed up with the credit reporting companies and it took a few weeks of time for everything to stabilize, but the action disappeared from my credit report and I was able to again get prime rates. It won’t always be this easy, but you have to do everything in your power to resolve all negatives if you want credit and the best rates.
Another way to improve your scores is to get your debt ratios below 50% on your credit cards and revolving charge accounts. As I stated before, just because your balance is low in terms of dollars it doesn’t mean that is a positive if your debt ratios are above 50%. Use your credit report to compare account balances and credit limits and devise a plan to get your balances under the 50% (25% is even better) debt-to-credit-limit ratio as soon as possible. This will definitely improve your credit score.
Two more ways to improve your scores are to pay all of your bills on time, and not to have too many people pull your credit at any one time. There is some debate as to how much your credit score is affected by numerous pulls, and it seems to be less of a problem if all of the pulls are for the same thing, but your score will go down with every credit pull no matter what it is for. Don’t go buy a car on credit, then the next week buy a TV on credit, then a house…Space your purchases out reasonably and monitor your credit scores to see when they recover from each purchase.
Speaking of monitoring your scores, for a small one-time or monthly fee any one of the credit reporting companies will give you your credit score. It can be worth it to monitor your score as you prepare to buy a home to see what changes are improving your score and to have an objective goal to work towards to get the best possible rates and terms.
I hope this post has provided you with some helpful guidance to first gather your credit report, correct any negatives, and then improve your score. If you think of the thousands upon thousands of dollars in interest this work could potentially save you, I think it is well worth the effort…
Jason
June 26, 2010
How to Compare Secured Credit Cards
Eric Wasselman asked:
Secured credit cards are great for those without credit or those with bad credit because they help build back credit ratings. A secured credit card is a card where a deposited is made to secure the card. This deposit can be made to a bank account or certificate of deposit.
Since you will have money holding, some institutions apply interest to your deposit thereby allowing you to earn while you spend. This interest is normally small, but is a good tool to use when comparing secured credit cards.
Outstanding balances on secured credit cards are still subject to interest, so in comparing cards it is necessary to know what the APR is. If the APR is high, carrying a balance or making just minimum payment will cost more in the long run.
Like other credit cards, the fees charged to the secured credit cards play a role when deciding on the best card for you. Look out for cards with high charges as this will reduce the amount of your deposit significantly. Additionally there are some cards with hidden charges, so be sure to read agreements carefully and ask questions. Remember when looking around that not all secured credit cards charge an application fee; if re-establishing credit is your aim this should be important as it will leave you with more money to deposit.
Do you need to buy insurance to use the card? If yes, look around for a secured card that does not have this option if increasing your spending limit is your aim.
Generally the credit limit of secured credit cards is dictated by the amount of your deposit, however, some banks only give a percentage of the deposit as the available credit. Therefore the way in which your credit limit is arrived will factor significantly in any decision on the best card for you.
If using a secure card to re-establish credit or to build credit, ensure that the issuing company report to the credit agencies.
Jack
Secured credit cards are great for those without credit or those with bad credit because they help build back credit ratings. A secured credit card is a card where a deposited is made to secure the card. This deposit can be made to a bank account or certificate of deposit.
Since you will have money holding, some institutions apply interest to your deposit thereby allowing you to earn while you spend. This interest is normally small, but is a good tool to use when comparing secured credit cards.
Outstanding balances on secured credit cards are still subject to interest, so in comparing cards it is necessary to know what the APR is. If the APR is high, carrying a balance or making just minimum payment will cost more in the long run.
Like other credit cards, the fees charged to the secured credit cards play a role when deciding on the best card for you. Look out for cards with high charges as this will reduce the amount of your deposit significantly. Additionally there are some cards with hidden charges, so be sure to read agreements carefully and ask questions. Remember when looking around that not all secured credit cards charge an application fee; if re-establishing credit is your aim this should be important as it will leave you with more money to deposit.
Do you need to buy insurance to use the card? If yes, look around for a secured card that does not have this option if increasing your spending limit is your aim.
Generally the credit limit of secured credit cards is dictated by the amount of your deposit, however, some banks only give a percentage of the deposit as the available credit. Therefore the way in which your credit limit is arrived will factor significantly in any decision on the best card for you.
If using a secure card to re-establish credit or to build credit, ensure that the issuing company report to the credit agencies.
Jack
June 24, 2010
Instant Approval Credit Cards Online
Ed Vegliante asked:
Do you want more credit at your fingertips? Applying for a credit card is now faster and easier than ever. With instant approval credit cards, you can find out whether you have been approved online in less than a minute. Here’s what you need to know about instant approval credit cards.
The Instant Approval Process
The process to get an instant approval credit card begins with an online application. You’ll need to fill in basic financial information. For instant approval cards, when you submit the application, your credit report is quickly reviewed. Usually, the approval is based on your FICO score. FICO, which stands for Fair Isaac & Company, gives you a credit score between 300 and 850. If you have good or excellent credit, it is very likely that you will be approved.
You will receive a confirmation notice of your approval. The actual credit card will then be sent to you in the mail. You can plan on its arrival one to two weeks after the card has been approved. Once you have followed the steps to activate the card, you are free to begin using it.
Compare the Benefits
While the resounding feature of instant approval credit cards is their quick online response, many include other benefits. Some offer a 0% introductory rate on purchases and balance transfers. Others come with a plan to receive cash back or rewards. If you frequently travel, look for a card that will award you with free air miles. If you have a long daily commute, check into a card with gas rebates. By evaluating your lifestyle, you can find an instant approval credit card that will have lasting benefits.
Understand the Fine Print
In addition to the card’s features, it is important to understand the details of your credit card. If the card comes with a low introductory interest rate, find out what the regular APR is. This will tell you what you can expect to pay on interest after the introductory period is over. Also look to see if the card has an annual fee or additional finance charges. Sometimes there are fees involved with balance transfers, late payments, or reward programs. Be sure to read through the fine print. This way, you will know what to expect after the credit card has been instantly approved online.
Check for Security
In many ways, applying online can be more secure than sending in a credit card application through the mail. Your information is sent directly to the needed source, and you do not have other people’s hands handling your mail. Most credit card companies use the latest, most secure data encryption available. To be safe, check the website before you apply online. Look for indications of security, such as a small lock on the page. If you have any questions, check further into the site before applying.
Life often feels like driving in the fast lane – we need things done quickly. Instant approval credit cards offer you the convenience you need through a process that is easy to follow. And with the Internet, you have plenty of options right before you. You can look at a variety of cards as you search for the one that best fits your needs. Apply today and enjoy the excitement of being instantly approved.
Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com.
Terry
Do you want more credit at your fingertips? Applying for a credit card is now faster and easier than ever. With instant approval credit cards, you can find out whether you have been approved online in less than a minute. Here’s what you need to know about instant approval credit cards.
The Instant Approval Process
The process to get an instant approval credit card begins with an online application. You’ll need to fill in basic financial information. For instant approval cards, when you submit the application, your credit report is quickly reviewed. Usually, the approval is based on your FICO score. FICO, which stands for Fair Isaac & Company, gives you a credit score between 300 and 850. If you have good or excellent credit, it is very likely that you will be approved.
You will receive a confirmation notice of your approval. The actual credit card will then be sent to you in the mail. You can plan on its arrival one to two weeks after the card has been approved. Once you have followed the steps to activate the card, you are free to begin using it.
Compare the Benefits
While the resounding feature of instant approval credit cards is their quick online response, many include other benefits. Some offer a 0% introductory rate on purchases and balance transfers. Others come with a plan to receive cash back or rewards. If you frequently travel, look for a card that will award you with free air miles. If you have a long daily commute, check into a card with gas rebates. By evaluating your lifestyle, you can find an instant approval credit card that will have lasting benefits.
Understand the Fine Print
In addition to the card’s features, it is important to understand the details of your credit card. If the card comes with a low introductory interest rate, find out what the regular APR is. This will tell you what you can expect to pay on interest after the introductory period is over. Also look to see if the card has an annual fee or additional finance charges. Sometimes there are fees involved with balance transfers, late payments, or reward programs. Be sure to read through the fine print. This way, you will know what to expect after the credit card has been instantly approved online.
Check for Security
In many ways, applying online can be more secure than sending in a credit card application through the mail. Your information is sent directly to the needed source, and you do not have other people’s hands handling your mail. Most credit card companies use the latest, most secure data encryption available. To be safe, check the website before you apply online. Look for indications of security, such as a small lock on the page. If you have any questions, check further into the site before applying.
Life often feels like driving in the fast lane – we need things done quickly. Instant approval credit cards offer you the convenience you need through a process that is easy to follow. And with the Internet, you have plenty of options right before you. You can look at a variety of cards as you search for the one that best fits your needs. Apply today and enjoy the excitement of being instantly approved.
Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com.
Terry
Credit Card Comparison Guide
Joseph Kenny asked:
Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs. This information can help you
Understand the features of credit cards
Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs. This information can help you
Understand the features of credit cards
Compare credit card features and costs
Know your rights when using your credit card
File a complaint if you have a problem with your credit card
How will you use your card?
The first step in choosing a credit card is thinking about how you will use it.
If you expect to always pay your monthly bill in full–and other features such as frequent flyer miles don’t interest you–your best choice may be a card that has no annual fee and offers a longer grace period.
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What’s the APR?
The annual percentage rate–APR–is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
How long is the Grace Period?
The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill.
The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.
If you carried over any part of your balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase (in addition to being charged interest on the earlier balance you have not paid off). Look on the credit card application for information about the “method of computing the balance for purchases” to see if new purchases are included or excluded. Information on methods of computing the balance is in the section “How is the finance charge calculated?”
These are just some of the considerations you will have to be aware of when choosing a credit card. The bottom line is that you should always read the small print and think about what it is you are agreeing to and whether or not this is what you need.
Terry
June 22, 2010
Understanding Credit Score Rating Scale
Jack Harmon asked:
Everybody around the world need to find out how credit score rating scales works and how they are being rated by the credit bureaus. Basically it can be an overwhelming task of understanding how credit score rating scales work and what a good credit score should look like.
However, it is very important for everybody, if you rent a home, buy clothes on credit or dream of owning your own home or car one day, to understand the inner workings of a credit score, the credit score system and the credit score rating scale.
Looking at a credit score rating scale could be confusing, so it will be a wise idea if you sat with an accountant, so he or she could explain exactly what you need to know and how everything works.
How To Understand Your Credit Score Rating Scale
Basically the first thing your accountant, will explain about a credit score rating scale is that there are different things companies look at to determine your credit score.
First and foremost, many credit reporting companies will look at your past paying manner, that is to say your past payments. You should look at whether you missed out payment, and if your name is on anyone’s grey list. A bit of information about grey listing is that if you miss out payment continuously for 3 times in a row, your name will go onto the credit bureaus grey list.
Now in some countries it is against the law for companies to blacklist consumers on account of them not knowing what the problem is regarding the late payments. With that said, it is safe to say that in those countries nobody can get black listed, and with grey listing it is easier to get your name cleared.
Typically a grey list is for about 6 months, and you can go on with your life, after paying back the debt of course. Also, your accountant should be able to help you improve your credit score with getting removed from a grey list.
Secondly, the companies will look at how many times other companies made queries into your credit score rating. So if you went to 100 companies asking for credit without any satisfaction, you will be declined any new credit, which makes that another way your credit score is determined.
There are many other ways your credit score rating scale can be determined and even more ways to keep your credit score high on the credit score rating scale.
Rosa
Everybody around the world need to find out how credit score rating scales works and how they are being rated by the credit bureaus. Basically it can be an overwhelming task of understanding how credit score rating scales work and what a good credit score should look like.
However, it is very important for everybody, if you rent a home, buy clothes on credit or dream of owning your own home or car one day, to understand the inner workings of a credit score, the credit score system and the credit score rating scale.
Looking at a credit score rating scale could be confusing, so it will be a wise idea if you sat with an accountant, so he or she could explain exactly what you need to know and how everything works.
How To Understand Your Credit Score Rating Scale
Basically the first thing your accountant, will explain about a credit score rating scale is that there are different things companies look at to determine your credit score.
First and foremost, many credit reporting companies will look at your past paying manner, that is to say your past payments. You should look at whether you missed out payment, and if your name is on anyone’s grey list. A bit of information about grey listing is that if you miss out payment continuously for 3 times in a row, your name will go onto the credit bureaus grey list.
Now in some countries it is against the law for companies to blacklist consumers on account of them not knowing what the problem is regarding the late payments. With that said, it is safe to say that in those countries nobody can get black listed, and with grey listing it is easier to get your name cleared.
Typically a grey list is for about 6 months, and you can go on with your life, after paying back the debt of course. Also, your accountant should be able to help you improve your credit score with getting removed from a grey list.
Secondly, the companies will look at how many times other companies made queries into your credit score rating. So if you went to 100 companies asking for credit without any satisfaction, you will be declined any new credit, which makes that another way your credit score is determined.
There are many other ways your credit score rating scale can be determined and even more ways to keep your credit score high on the credit score rating scale.
Rosa
June 14, 2010
Compare Credit Repair Companies
Chad R Fisher asked:
When preparing to select a credit repair company, make sure you do your homework. Each company offers different services and you need to read the fine print so you don’t overpay for unnecessary services. When you select a credit repair company the process should be easy, effective and most important the services rendered should be extremely transparent. There are a number of things that you can do for free to improve your credit score. If you are ready to hire a professional make sure you have done what you can to fix your own credit first – i.e. close unnecessary credit lines, make timely monthly payments, etc. If you’d like some free tips on how to improve your score visit the Federal Trade Commission’s site for more detail.
We have reviewed 5 credit repair companies and evaluated them on a number of categories important for prospective customers. The goal of this review is to rate each site so we can come up with an overall ranking and find out what separates different credit repair companies online. We are starting with only 5 companies, but we will continue to add companies to this list – if you have any suggestions for companies that should be reviewed drop by our site or send us an email.
Website Graphical Layout (Scale of 1-10)
Lexington Law – 7
Credit Bureau Experts – 7
Ovation Law – 8
Trinity Credit Services – 6
DSI Credit Repair Company – 6
Website Ease of Use (Scale of 1-10)
Lexington Law – 8
Credit Bureau Experts – 6
Ovation Law – 8
Trinity Credit Services – 6
DSI Credit Repair Company – 7
Testimonials (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – Yes
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – Yes
Sitemap (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law -Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
Refund Policy Online (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – Yes
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
FAQ Section (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law – Yes
Trinity Credit Services – Yes
DSI Credit Repair Company – Yes
Privacy Policy (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts- No
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – Yes
BBB Online Reliability Program (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
Overall Score
Ovation Law 46/50
Lexington Law 45/50
DSI Credit Repair Company 28/50
Credit Bureau Experts 23/50
Trinity Credit Services 17/50
Ovation Law and Lexington Law clearly separated themselves from the pack in this review. Both companies are a part of the BBBOnline Reliability program. This is important because to be a member you must be: a BBB member, have a satisfactory complaint handling record, respond promptly to customer complaints and agree to dispute resolutions as necessary. In addition to BBB membership Ovation and Lexington have a privacy policy, sitemap and a clearly stated refund policy. If you are serious about repairing your bad credit, we recommend starting with a company that is reputable and meets certain industry standards. Check out similar articles at our site: Free Yearly Credit Report.
Cecil
When preparing to select a credit repair company, make sure you do your homework. Each company offers different services and you need to read the fine print so you don’t overpay for unnecessary services. When you select a credit repair company the process should be easy, effective and most important the services rendered should be extremely transparent. There are a number of things that you can do for free to improve your credit score. If you are ready to hire a professional make sure you have done what you can to fix your own credit first – i.e. close unnecessary credit lines, make timely monthly payments, etc. If you’d like some free tips on how to improve your score visit the Federal Trade Commission’s site for more detail.
We have reviewed 5 credit repair companies and evaluated them on a number of categories important for prospective customers. The goal of this review is to rate each site so we can come up with an overall ranking and find out what separates different credit repair companies online. We are starting with only 5 companies, but we will continue to add companies to this list – if you have any suggestions for companies that should be reviewed drop by our site or send us an email.
Website Graphical Layout (Scale of 1-10)
Lexington Law – 7
Credit Bureau Experts – 7
Ovation Law – 8
Trinity Credit Services – 6
DSI Credit Repair Company – 6
Website Ease of Use (Scale of 1-10)
Lexington Law – 8
Credit Bureau Experts – 6
Ovation Law – 8
Trinity Credit Services – 6
DSI Credit Repair Company – 7
Testimonials (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – Yes
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – Yes
Sitemap (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law -Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
Refund Policy Online (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – Yes
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
FAQ Section (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law – Yes
Trinity Credit Services – Yes
DSI Credit Repair Company – Yes
Privacy Policy (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts- No
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – Yes
BBB Online Reliability Program (+5 points for Yes, 0 for No)
Lexington Law – Yes
Credit Bureau Experts – No
Ovation Law – Yes
Trinity Credit Services – No
DSI Credit Repair Company – No
Overall Score
Ovation Law 46/50
Lexington Law 45/50
DSI Credit Repair Company 28/50
Credit Bureau Experts 23/50
Trinity Credit Services 17/50
Ovation Law and Lexington Law clearly separated themselves from the pack in this review. Both companies are a part of the BBBOnline Reliability program. This is important because to be a member you must be: a BBB member, have a satisfactory complaint handling record, respond promptly to customer complaints and agree to dispute resolutions as necessary. In addition to BBB membership Ovation and Lexington have a privacy policy, sitemap and a clearly stated refund policy. If you are serious about repairing your bad credit, we recommend starting with a company that is reputable and meets certain industry standards. Check out similar articles at our site: Free Yearly Credit Report.
Cecil
June 13, 2010
Credit Report Score: Work The Right Way
Daniel Wesley asked:
Your credit report score is an important determinant of your credibility, particularly when you intend to borrow to fund your housing finance needs or a car purchase. Depending on this three-digit figure the lenders will determine your credit limit and compute interest on your borrowing. Best rates are offered to borrowers with good credit report scores, since they belong to the low risk category, whereas those with bad credit report scores do not have an alternative but to resort to expensive borrowing. Generally, the lenders offer best to those scoring 700 or higher, which means that even if you are marginally below say at about 698, it could cost you many thousands dollars more than what you would have shelled out if you managed to score just those two points.
Let’s demonstrate the above point with an example – the differential between 700 and 698 scores comes to around one-half percentage point. So if you obtained a $165,000 fixed rate mortgage for a tenor of 30 years, that differential half point is most likely to cost you above $19,000 by way of interest, considering that 6% is the lowest interest rate available. Further, if your credit report score fall below 675, the interest rate that you would end up paying will rise by another 1.2%. These are just averages.
Most lenders are nowadays practicing tiered pricing, wherein interest rates rise with the credit report scores going down. Each lender chooses its ‘break-points’ between the tiers. On one hand, there are some lenders who may increase their interest rates if your credit report score is below 300. On the other hand, there are others who will not charge higher interest rates until your credit report score is below 690 or so. This means that if you intend to stick to the same lender, and if the lender considers credit report score of 700 as his break point, then your credit report score improvement to 701 could be vital.
This example underscores the significance of not just doing what you can to better you credit report score, but also shopping thoughtfully, if you are looking at getting a mortgage loan. When it comes to choosing the lender, compare the options and finalize the one who offers you the best rate for a particular credit report score. The simplest way of improving your credit report score is paying all the bills on time. If implemented thoroughly and consistently this method can improve your credit report score dramatically over a period of time. You must also inculcate a habit of checking your credit report score annually, to see where you stand in credit estimation. This will enable better planning of your finances that is bound to strengthen your credibility.
Bessie
Your credit report score is an important determinant of your credibility, particularly when you intend to borrow to fund your housing finance needs or a car purchase. Depending on this three-digit figure the lenders will determine your credit limit and compute interest on your borrowing. Best rates are offered to borrowers with good credit report scores, since they belong to the low risk category, whereas those with bad credit report scores do not have an alternative but to resort to expensive borrowing. Generally, the lenders offer best to those scoring 700 or higher, which means that even if you are marginally below say at about 698, it could cost you many thousands dollars more than what you would have shelled out if you managed to score just those two points.
Let’s demonstrate the above point with an example – the differential between 700 and 698 scores comes to around one-half percentage point. So if you obtained a $165,000 fixed rate mortgage for a tenor of 30 years, that differential half point is most likely to cost you above $19,000 by way of interest, considering that 6% is the lowest interest rate available. Further, if your credit report score fall below 675, the interest rate that you would end up paying will rise by another 1.2%. These are just averages.
Most lenders are nowadays practicing tiered pricing, wherein interest rates rise with the credit report scores going down. Each lender chooses its ‘break-points’ between the tiers. On one hand, there are some lenders who may increase their interest rates if your credit report score is below 300. On the other hand, there are others who will not charge higher interest rates until your credit report score is below 690 or so. This means that if you intend to stick to the same lender, and if the lender considers credit report score of 700 as his break point, then your credit report score improvement to 701 could be vital.
This example underscores the significance of not just doing what you can to better you credit report score, but also shopping thoughtfully, if you are looking at getting a mortgage loan. When it comes to choosing the lender, compare the options and finalize the one who offers you the best rate for a particular credit report score. The simplest way of improving your credit report score is paying all the bills on time. If implemented thoroughly and consistently this method can improve your credit report score dramatically over a period of time. You must also inculcate a habit of checking your credit report score annually, to see where you stand in credit estimation. This will enable better planning of your finances that is bound to strengthen your credibility.
Bessie