For anyone who goes through a foreclosure process, it can be a very difficult situation for them, as well as their family and friends. It is sad to say but foreclosure is becoming very common thanks to the poor economy and sub-prime mortgage crisis. You may be worried about yourself and your family with your home. There is nothing wrong with that, but with an understanding of how it works, you will find that you may be able to manage foreclosure and the effect that it can have on a person’s life.
Foreclosure occurs when the owner of a property can no longer make their payments on the loan. At this point, the property can be both seized and sold because of the non-payment. The owner of the property does not get any money from this, and the sale of the property is used to pay off what is owed on the mortgage, with the bank taking the rest.To get to this point, you will have had to go through three to six months of missed payments on your property owner to get a Notice of Default. This notice states you are facing a foreclosure process, and that you are entering the reinstatement period that goes until five days until the home is auctioned off.If the default is not paid up within three months of the notice, the sale date of the foreclosure house begins. A Notice of Sale will be placed on the house and in the newspaper for three weeks to alert others who may wish to either collect on a debt or buy the foreclosure property (which is becoming very common). At this point, the homeowners would have left the house, and if they have not then the sheriff’s office will show up and evict them. This is not a good situation to be in, and far too many people these days are going through it.
However, now that you know what happens in a foreclosure, what is there to know about how it can personally affect you? Well, the truth of the matter is that a foreclosure is going to leave repercussions on your identity for many years to come. A foreclosure is very similar to claiming bankruptcy, except the foreclosure will only stay on the credit report for seven years, rather than the 10 of bankruptcy. As well, your FICO score will most likely plummet many points, possibly as much as 100 to 200 points. Essentially, having a foreclosure on your property will destroy your credit and literally prevent you from getting another house again for seven years.
Getting foreclosure is not something you want yourself, or anyone you know, to go through. It can severely alter the life of an individual and has spelled the end of many relationships because of the stress. Sometimes it is through no fault of the individual that they cannot pay their mortgage. Perhaps it was layoffs or costs to take care of a family member, but the result is always the same.If you can, try and work something out with your bank to prevent foreclosure from happening to you. If you cannot, then you can always repair your credit after you have gotten back on your feet.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Friday, February 27, 2009
Wednesday, February 25, 2009
How do you avoid identity theft?
The fastest growing crime, and possibly the defining crime of the 21st century, is identity theft. Identity theft is a problem that is not going to go away, and it is important that you know how to protect yourself from becoming a victim of this terrible crime. By not being a victim, you can keep yourself from having your credit completely destroyed by greedy individuals who use our digital society to their full advantage.
First thing first, you should under no circumstances fall for phishing. Phishing is the process by which a con artist will send you an e-mail or call you, and state that there is a problem with your account and you need to enter in your password and username to fix it. Once you enter this information in on the website, which comes from a link in the e-mail, you will find that you have just given your information to a con artist. They can then use that information to log into your bank account, credit account and other accounts to steal your money and your identity.
When you are throwing your financial records away, do not just put them in the trash. Some identity thieves will actually dumpster dive and take your papers so that they can use them for their identity theft purposes. When you throw your items away, make sure you shred them by using a crisscrossing shredder. This type of shredder cuts both vertically and horizontally so that it is very hard to piece back together.
Identity thieves will also steal your mail out of your mailbox, and even call your billing companies and change the mailing address from your address to their address. That way, they can begin using your information to get credit cards, loans and to destroy your credit without you even realizing it.Therefore, instead of having your bills mailed to you, you should sign up for online billing so the mail comes to your e-mail address. That way, you will be able to see your bills, save paper, and keep yourself from becoming a victim of identity theft. Practicing online banking and having your bank statement sent to your e-mail address is a very good idea as well. Bank statements are one of the gold mines for identity thieves, so don’t just leave it sitting in your mail box.
Further to that, you should never carry your social security number with you when you go out. Unless you are going to use your social security number for something, you should have it at home in a safe, or in a safe deposit box at the bank. The same applies to your credit cards and other identification items. Unless you are going to need them, leave them in a safe at home so that if you are robbed, you will not lose your important items. In addition, have photocopies, front and back, of all your identification cards and everything in your wallet in case it is stolen.
If you or anyone that you know would care for more information please do not hesitate to contact http://www.creditrepairbydrjen.com
First thing first, you should under no circumstances fall for phishing. Phishing is the process by which a con artist will send you an e-mail or call you, and state that there is a problem with your account and you need to enter in your password and username to fix it. Once you enter this information in on the website, which comes from a link in the e-mail, you will find that you have just given your information to a con artist. They can then use that information to log into your bank account, credit account and other accounts to steal your money and your identity.
When you are throwing your financial records away, do not just put them in the trash. Some identity thieves will actually dumpster dive and take your papers so that they can use them for their identity theft purposes. When you throw your items away, make sure you shred them by using a crisscrossing shredder. This type of shredder cuts both vertically and horizontally so that it is very hard to piece back together.
Identity thieves will also steal your mail out of your mailbox, and even call your billing companies and change the mailing address from your address to their address. That way, they can begin using your information to get credit cards, loans and to destroy your credit without you even realizing it.Therefore, instead of having your bills mailed to you, you should sign up for online billing so the mail comes to your e-mail address. That way, you will be able to see your bills, save paper, and keep yourself from becoming a victim of identity theft. Practicing online banking and having your bank statement sent to your e-mail address is a very good idea as well. Bank statements are one of the gold mines for identity thieves, so don’t just leave it sitting in your mail box.
Further to that, you should never carry your social security number with you when you go out. Unless you are going to use your social security number for something, you should have it at home in a safe, or in a safe deposit box at the bank. The same applies to your credit cards and other identification items. Unless you are going to need them, leave them in a safe at home so that if you are robbed, you will not lose your important items. In addition, have photocopies, front and back, of all your identification cards and everything in your wallet in case it is stolen.
If you or anyone that you know would care for more information please do not hesitate to contact http://www.creditrepairbydrjen.com
Monday, February 23, 2009
Do inquiries hurt your credit?
This is a very common question with credit, and many people do not realize that inquiries can hurt your credit. It is a sad irony that the more you inquire about getting the credit, the worse your credit gets. Simply put, if you go to a variety of lenders to get credit, that shows up on your credit report. Since inquiries make up 10 percent of your credit report, that lowers your credit score and hurts your chances of getting credit in the future.Those that do not know inquiries hurt your credit will continue to try and get credit, without realizing that their credit is slowly getting worse with each inquiry. Eventually, they will have seriously damaged their credit because they did not research their credit score first.Here is an example of how inquiries can damage your credit. If someone goes to get a credit card, they need to apply for that credit.
However, since the person did not order their credit report, they do not know that they have poor credit. Therefore, when they apply for the credit, they are refused. With that refusal, their credit goes down as a result. Thinking that it was the lender that refused them and not the credit reporting agency, they go and try to get a credit card elsewhere. Only to have the same result. They repeat this process before finally realizing that they may not be able to get a credit card. Sadly, the damage is already done. If the inquiry drops their credit score by 15 points each time, then by the time they have applied for credit five times, they have lost 75 points on their credit score. That is enough to send someone from excellent credit of 700, to fair credit at 625.
How could all this be avoided? Simply put, it could be avoided by not applying for credit without first checking one’s credit report. The credit report is very important in the fight to maintain your credit. The credit report you see is the same credit report that your lender will see. Therefore, if you see your credit report and see a low score, then don’t try and get credit. Concentrate on fixing your credit, rather than hurting it by inquiring too much. It is important to remember as well, that you do not hurt your credit when you look at your credit report, only when you apply for credit. The reason is that you look like a compulsive borrower, which is what many credit card companies do not want to lend money to.
If you have a credit score of 650 and over, then you will have no problem getting credit and should not be refused under any circumstances. If you have a credit score of 600 to 650, you should be fine for getting credit still and won’t have to be worried. However, with a credit score of 599 and lower, you may have difficulties, so it might be better to just try and repair your credit, rather than try and get more credit.
If you or anyone that you know would need more information on this post, feel free to visit http://www.creditrepairbydrjen.com
However, since the person did not order their credit report, they do not know that they have poor credit. Therefore, when they apply for the credit, they are refused. With that refusal, their credit goes down as a result. Thinking that it was the lender that refused them and not the credit reporting agency, they go and try to get a credit card elsewhere. Only to have the same result. They repeat this process before finally realizing that they may not be able to get a credit card. Sadly, the damage is already done. If the inquiry drops their credit score by 15 points each time, then by the time they have applied for credit five times, they have lost 75 points on their credit score. That is enough to send someone from excellent credit of 700, to fair credit at 625.
How could all this be avoided? Simply put, it could be avoided by not applying for credit without first checking one’s credit report. The credit report is very important in the fight to maintain your credit. The credit report you see is the same credit report that your lender will see. Therefore, if you see your credit report and see a low score, then don’t try and get credit. Concentrate on fixing your credit, rather than hurting it by inquiring too much. It is important to remember as well, that you do not hurt your credit when you look at your credit report, only when you apply for credit. The reason is that you look like a compulsive borrower, which is what many credit card companies do not want to lend money to.
If you have a credit score of 650 and over, then you will have no problem getting credit and should not be refused under any circumstances. If you have a credit score of 600 to 650, you should be fine for getting credit still and won’t have to be worried. However, with a credit score of 599 and lower, you may have difficulties, so it might be better to just try and repair your credit, rather than try and get more credit.
If you or anyone that you know would need more information on this post, feel free to visit http://www.creditrepairbydrjen.com
Wednesday, February 18, 2009
Five easy tips to fix your credit
Repairing your credit is something we all have to do from time to time. It may seem like a difficult task to do, but the truth is that it can be quite easy when you follow these five easy tips to repairing your credit and getting back on track for a future with easy credit options.
1.
Pay all your bills on time. A full 35 percent of your credit score is made up of your payment history, meaning it matters more than anything else. Hence, it is incredibly important that you pay back your bills on time and do not let them get late, or go to collections. One late bill can send your credit score spiraling down. This is why it is so important that if you are repairing your credit, to pay your bills. Even if it means minimum payments, you should pay your bills as soon as you can without letting them be late.
2.
Pay off your high interest credit cards and transfer balances to your low interest credit cards. Interest can sink you when you are trying to pay your credit cards, so transfer your high interest balances to low interest cards to save money. As well, if you have more than three credit cards, close out the high interest cards to get yourself down to two or three credit cards, no more.
3.
Get a copy of your credit report. Understanding your credit report is key to fixing your credit. It will show you what to fix and what to not worry about. On top of that, it will help you see if you have any problems with errors on your credit report, something that affects 75 percent of all credit reports. Repairing a credit report error can drastically fix your credit, so make sure you get your credit report.
4.
Don’t spend. The less you spend on credit, the less you have to pay back and the easier it will be to start cutting down on your debt. You should try and limit all your expenses and do up a budget so you can monitor yourself and see exactly how much you need to allocate each month to pay off your debts in a year or so.
5.
Talk to someone about your debt. A debt consolidation company will take all your debts and put them into one loan that is easier for you to pay back. A debt counseling company will help you learn more about your credit and how to fix it. You won’t be so stressed because you will have these companies on your side, helping you fix your credit. Just beware of debt consolidation and debt counseling companies that are not legit and only want your money. Do your homework.
These five tips can help you repair your credit and get yourself out of a debt spiral. Use these tips and before you know it, your credit will be back up above 650, and you will be living a much easier life again.
If you or someone that you know would like more information on this post, feel free to visit http://www.creditrepairbydrjen.com
1.
Pay all your bills on time. A full 35 percent of your credit score is made up of your payment history, meaning it matters more than anything else. Hence, it is incredibly important that you pay back your bills on time and do not let them get late, or go to collections. One late bill can send your credit score spiraling down. This is why it is so important that if you are repairing your credit, to pay your bills. Even if it means minimum payments, you should pay your bills as soon as you can without letting them be late.
2.
Pay off your high interest credit cards and transfer balances to your low interest credit cards. Interest can sink you when you are trying to pay your credit cards, so transfer your high interest balances to low interest cards to save money. As well, if you have more than three credit cards, close out the high interest cards to get yourself down to two or three credit cards, no more.
3.
Get a copy of your credit report. Understanding your credit report is key to fixing your credit. It will show you what to fix and what to not worry about. On top of that, it will help you see if you have any problems with errors on your credit report, something that affects 75 percent of all credit reports. Repairing a credit report error can drastically fix your credit, so make sure you get your credit report.
4.
Don’t spend. The less you spend on credit, the less you have to pay back and the easier it will be to start cutting down on your debt. You should try and limit all your expenses and do up a budget so you can monitor yourself and see exactly how much you need to allocate each month to pay off your debts in a year or so.
5.
Talk to someone about your debt. A debt consolidation company will take all your debts and put them into one loan that is easier for you to pay back. A debt counseling company will help you learn more about your credit and how to fix it. You won’t be so stressed because you will have these companies on your side, helping you fix your credit. Just beware of debt consolidation and debt counseling companies that are not legit and only want your money. Do your homework.
These five tips can help you repair your credit and get yourself out of a debt spiral. Use these tips and before you know it, your credit will be back up above 650, and you will be living a much easier life again.
If you or someone that you know would like more information on this post, feel free to visit http://www.creditrepairbydrjen.com
Tuesday, February 3, 2009
What should you know about the three credit reporting bureaus?
Your credit report is the most important tool you have in fixing your credit, fighting identity theft and staying one step ahead of serious debt problems. However, did you know that you can get your credit report from three different credit reporting bureaus? It is important to know this because your credit can vary at each bureau by as much as 50 points. That is a big difference because 50 points on your credit report can mean the difference between a low interest rate and a high interest rate.
The first credit reporting agency is TransUnion. Founded in 1968, it began reporting on credit for consumers in 1969, building itself up by acquiring city credit bureaus. Today, it operates with 250 offices in the United States and 24 offices in other countries, while having its headquarters based in Chicago.
The second credit reporting agency is the oldest and largest of the three. It is Equifax and it was founded in 1899. Growing quickly, the company had offices throughout North America by 1920, and was the holder of millions of credit reports on American citizens by the 1960s. The company offers several services including CreditLock, which prevents and limits inquiries into your credit report. You can set the preferences for access to your report, making it much easier to protect your credit with this credit reporting agency.
The third credit reporting agency is the youngest and the smallest. It is Experian and it was founded in Nottingham in 1980. Over the years, it acquired credit reporting businesses until the 2000s, when it became one of the big three credit reporting agencies in the world with TransUnion and Equifax.
So, why do you need to know about these three companies? Well, when you get your one free credit report that is provided to you each year thanks to the Fair Credit Reporting Act, you should make sure that you are getting a report that will show you what your credit score is with all three companies. That way, you can make sure that when you go to get credit, you are having them check the credit report of the agency that gives you the highest credit rating. It is also important to check your credit report with all three agencies because one agency may have an error while the others do not. If you have a credit error for an unpaid bill on your TransUnion credit report, but you only check your Experian credit report, you may never realize there is a problem. Then when you attempt to get credit and are refused because they looked at your TransUnion report, you will have no idea why. Hence the reason why you should look at all three credit reports from all three credit reporting agencies so that you can compare them and make sure they match completely.
Staying on top of your credit is very important, and looking at your credit score from all credit bureaus is just as important. Mistakes happen and not everything is the same with credit, so get all the information you can from TransUnion, Experian and Equifax.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com/
The first credit reporting agency is TransUnion. Founded in 1968, it began reporting on credit for consumers in 1969, building itself up by acquiring city credit bureaus. Today, it operates with 250 offices in the United States and 24 offices in other countries, while having its headquarters based in Chicago.
The second credit reporting agency is the oldest and largest of the three. It is Equifax and it was founded in 1899. Growing quickly, the company had offices throughout North America by 1920, and was the holder of millions of credit reports on American citizens by the 1960s. The company offers several services including CreditLock, which prevents and limits inquiries into your credit report. You can set the preferences for access to your report, making it much easier to protect your credit with this credit reporting agency.
The third credit reporting agency is the youngest and the smallest. It is Experian and it was founded in Nottingham in 1980. Over the years, it acquired credit reporting businesses until the 2000s, when it became one of the big three credit reporting agencies in the world with TransUnion and Equifax.
So, why do you need to know about these three companies? Well, when you get your one free credit report that is provided to you each year thanks to the Fair Credit Reporting Act, you should make sure that you are getting a report that will show you what your credit score is with all three companies. That way, you can make sure that when you go to get credit, you are having them check the credit report of the agency that gives you the highest credit rating. It is also important to check your credit report with all three agencies because one agency may have an error while the others do not. If you have a credit error for an unpaid bill on your TransUnion credit report, but you only check your Experian credit report, you may never realize there is a problem. Then when you attempt to get credit and are refused because they looked at your TransUnion report, you will have no idea why. Hence the reason why you should look at all three credit reports from all three credit reporting agencies so that you can compare them and make sure they match completely.
Staying on top of your credit is very important, and looking at your credit score from all credit bureaus is just as important. Mistakes happen and not everything is the same with credit, so get all the information you can from TransUnion, Experian and Equifax.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com/
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