If you have had a troubled credit history, then there is the chance that you will be denied the usual credit cards when you apply for them. Typically, if you have a credit score of 600 and above, you can get a credit card without a problem. If you have a credit score of 500 to 599, then you may be able to get a credit card, but you are going to pay a high interest rate. If you have a credit score of 499 and under, then you are typically going to be refused for a credit card, and this may present a problem. First of all, if you are trying to rebuild your credit, then you need a credit card because a diversified amount of credit helps your credit score. If you can’t get the credit card, then your credit score suffers. As well, we live in a credit age, where many things are available through the use of a credit card, particularly online. To order anything online, nine times out of ten you need a credit card. If you don’t have a credit card, you can find yourself severely limited.
So, what options are there for you if you have bad credit but need a credit card? There are not many, but the best option you have at your disposal is a secured credit card.
A secured credit card is a credit card that you have secured with a deposit amount that you place on the credit card. If you want a certain credit limit, then you need to deposit between 50 and 200 percent of that money onto the credit card. For example, if you want $1,000 on your credit card, then you need to deposit between $500 and $1,000. However, there are some companies that will allow you to deposit $100 onto a secured credit card to have a $1,000 credit limit.
Even though you made a deposit, you are still expected to pay monthly payments. The money does not come off the deposit, but off the credit card. However, if you find that you are about to default on what you have spent on the credit card, you can use the deposit to pay it off, but you will most likely lose the credit card at that point.
The main advantage of having a secured credit card is that if you have bad or no credit history, your history on the secured credit card is reported to the credit bureau. Therefore, if you make regular payments and show yourself to have good payment habits on the secured credit card, you will improve your credit score as a result.
Once you close out the credit card after you are done using it, as much as years down the road, you will get the deposit back on it.If you have a poor credit history and want to improve on it, then your best option is a secured credit card. It costs you money at first, but it can greatly improve your credit history and score.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, March 30, 2009
Wednesday, March 25, 2009
How do you keep your credit score up if you fall behind on your mortgage?
Thousands of people across the United States are suffering through one of the worst housing markets in history. Those thousands of people are trying to pay back their mortgages but are falling behind because of rising interest rates, credit problems and a failing job market. If you are going through this, then you are not alone. You are one of thousands who are seeing the home of their dreams slipping away, but don’t worry, there may still be time for you to save your home and get back on your feet and keep your credit from being destroyed by a neutron bomb called foreclosure.
Foreclosure stays on your credit report for as much as a decade and it can lower your credit report by as much as 200 points in one fell swoop. So, how do you save yourself if you fall behind on your mortgage?
If you are only behind by one payment, then you should be okay as long as you have a good payment history with the bank. However, if you fall behind by three mortgage payments, then foreclosure becomes a reality for you. If this happens to you, the first thing you should do is call the bank or the lender that you have your mortgage through. You want to talk to your lender or bank immediately because it shows good communication. If you explain that you will be paid up by a certain date, most banks will be fine with it and choose to skip the foreclosure process. The reason is that for a bank, if you have a $400,000 house, then that is $400,000 that they paid out for you. If you foreclose on the property, they will probably get $100,000 to $250,000 on the sale of the home and that means a $150,000 to $300,000 loss. It is much easier to help you get through your payments, then go through the hassle of foreclosure. Plus, for many banks, too many foreclosures can cause them to go under, as we have seen in 2008-2009.
Next, you should begin budgeting yourself so that you do not fall behind any further on your mortgage. You should talk to friends or your family about getting a loan to help you pay back your mortgage. Owing friends or family is better than owing the bank.Lastly, and especially if you lost your job, you can talk to the bank about refinancing your mortgage on a better interest rate and mortgage payment amount. This is a drastic solution that you should only use if you are three months or more behind on your mortgage. This does not always work though, and you could end up paying more on your mortgage depending on how much the house is worth at the time.
Being behind on your mortgage is not the end of the world, but going through foreclosure is the end of your credit world for the next ten years. So use these tips to keep it from happening.
If you or anyone that you know would care for information on this post, feel free to visit http://www.creditrepairbydrjen.com
Foreclosure stays on your credit report for as much as a decade and it can lower your credit report by as much as 200 points in one fell swoop. So, how do you save yourself if you fall behind on your mortgage?
If you are only behind by one payment, then you should be okay as long as you have a good payment history with the bank. However, if you fall behind by three mortgage payments, then foreclosure becomes a reality for you. If this happens to you, the first thing you should do is call the bank or the lender that you have your mortgage through. You want to talk to your lender or bank immediately because it shows good communication. If you explain that you will be paid up by a certain date, most banks will be fine with it and choose to skip the foreclosure process. The reason is that for a bank, if you have a $400,000 house, then that is $400,000 that they paid out for you. If you foreclose on the property, they will probably get $100,000 to $250,000 on the sale of the home and that means a $150,000 to $300,000 loss. It is much easier to help you get through your payments, then go through the hassle of foreclosure. Plus, for many banks, too many foreclosures can cause them to go under, as we have seen in 2008-2009.
Next, you should begin budgeting yourself so that you do not fall behind any further on your mortgage. You should talk to friends or your family about getting a loan to help you pay back your mortgage. Owing friends or family is better than owing the bank.Lastly, and especially if you lost your job, you can talk to the bank about refinancing your mortgage on a better interest rate and mortgage payment amount. This is a drastic solution that you should only use if you are three months or more behind on your mortgage. This does not always work though, and you could end up paying more on your mortgage depending on how much the house is worth at the time.
Being behind on your mortgage is not the end of the world, but going through foreclosure is the end of your credit world for the next ten years. So use these tips to keep it from happening.
If you or anyone that you know would care for information on this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, March 16, 2009
What is the average FICO score?
Credit scores are a big part of our lives. Credit scores are what dictate what we can buy, what kind of homes we can get and what kind of cars we can buy. If we have good credit, it is easy to get these things, but if we have bad credit, we may find that it is harder than we imagined to get a home, car or credit card. With a poor credit score, interest rates can be very high. A high interest rate can lead to a difficulty making payments.
The sub-prime mortgage crisis was essentially created by lenders giving mortgages to people who did not have the credit for it. Their poor credit score meant the interest rates were very high, although the interest rates were low to begin with. Then the people could not afford both the mortgage payment and the interest payment that could reach 20 percent. They fell farther and farther behind, and that led them to be foreclosed on. The people that this happened to had poor credit generally, usually below 600.
However, if you have an average credit score, where do you sit between 300 and 850?For FICO, it sits at around 650. If your score is in that range, you will be able to get a loan or credit card without much trouble. You will deal with higher than normal interest rates though when compared with someone who has a credit score of 780. If your score is above 650, you will have little trouble with getting a loan, and the interest rates will be much lower than those who are below you credit-wise.
If you have a lower-than-average credit score, you will need to work to improve your FICO credit score through various means, including paying your bills, lowering your debt-to-income ratio, paying off your debt and more.If you think your credit score is decent, you will probably go to see if you can get a loan. However, if you do this on a regular basis, creditors will see that you have asked for credit from a variety of sources and they label you as a compulsive borrower, which could hurt you in terms of getting a loan.It is important to remember that just because you have average credit, it does not mean you should be happy with it. You should try and do everything you can to improve your credit by paying your bills on time and ensuring you do not owe too much on debts. Average may be good for everyone else, but is it good enough for you?
Your credit is decent, but it could be better.This is why it is important that you know your credit score. By knowing your credit score, you can find out how much you will be paying for an interest rate, and what your ability to pay back a loan will be like. Thankfully, you get one free credit report each year, so be sure to use that credit report so you can find out your credit score and see if you are average.
If you or anyone that you know would care to learn more about this post, feel free to visit http://www.creditrepairbydrjen.com
The sub-prime mortgage crisis was essentially created by lenders giving mortgages to people who did not have the credit for it. Their poor credit score meant the interest rates were very high, although the interest rates were low to begin with. Then the people could not afford both the mortgage payment and the interest payment that could reach 20 percent. They fell farther and farther behind, and that led them to be foreclosed on. The people that this happened to had poor credit generally, usually below 600.
However, if you have an average credit score, where do you sit between 300 and 850?For FICO, it sits at around 650. If your score is in that range, you will be able to get a loan or credit card without much trouble. You will deal with higher than normal interest rates though when compared with someone who has a credit score of 780. If your score is above 650, you will have little trouble with getting a loan, and the interest rates will be much lower than those who are below you credit-wise.
If you have a lower-than-average credit score, you will need to work to improve your FICO credit score through various means, including paying your bills, lowering your debt-to-income ratio, paying off your debt and more.If you think your credit score is decent, you will probably go to see if you can get a loan. However, if you do this on a regular basis, creditors will see that you have asked for credit from a variety of sources and they label you as a compulsive borrower, which could hurt you in terms of getting a loan.It is important to remember that just because you have average credit, it does not mean you should be happy with it. You should try and do everything you can to improve your credit by paying your bills on time and ensuring you do not owe too much on debts. Average may be good for everyone else, but is it good enough for you?
Your credit is decent, but it could be better.This is why it is important that you know your credit score. By knowing your credit score, you can find out how much you will be paying for an interest rate, and what your ability to pay back a loan will be like. Thankfully, you get one free credit report each year, so be sure to use that credit report so you can find out your credit score and see if you are average.
If you or anyone that you know would care to learn more about this post, feel free to visit http://www.creditrepairbydrjen.com
Wednesday, March 11, 2009
What should you do if your identity is stolen?
When identity theft strikes you, even if you have tried to be safe, then you need to start thinking about how you are going to fix the problems created by identity theft.
The most important thing you can do is to act quickly. Identity theft damage moves quickly, so you need to stop the damage as quickly as you can to keep it from becoming even worse.
First, you should put a fraud alert on your credit report and get a copy of your credit report sent to you. A fraud alert will let creditors and others know that you have been the victim of identity theft. It will keep anyone from opening accounts in your name. To put the fraud alert on your credit report, you need to contact either TransUnion, Experian, or Equifax. The good news is that you only have to contact one of these companies because that company is required by law to contact the other two credit reporting agencies.
There are two types of fraud alerts that you can put on your credit report. They are an initial alert and an extended alert. An initial alert stays on your credit report for at least 90 days. This is what you should put on your account if you are worried you have been a victim of identity theft.
An extended alert is on your credit report for at least seven years. In case you have been the victim of an identity thief, then you will put this on your credit report. The reason is that it will show companies and creditors why your credit may be damaged. You are also entitled to two free credit reports within a year of putting an extended credit report on your account. In addition to that, credit reporting companies will take your name off of pre-approved credit offers for five years.
When you want to remove the alerts, you will need to contact the credit reporting agency that put the alert on for you. You will need to provide them with proof of your identity, your social security number, your address and further information that verifies your identity.
After this, you need to call and speak with the fraud department for the company that has been affected by the identity theft. Send them documents that support the claim that you have been affected by identity theft. You should also keep records of every communication you have with the company.
Also, make sure you put a PIN on all your accounts to prevent them from being used or accessed by an identity thief.
Once you have done this, file a complaint with the Federal Trade Commission. If you are sharing your complaint with the FTC, you will be helping law enforcement departments across the country track down identity thieves, thereby helping others who may have fallen in your position.
You can file a complaint online at www.ftc.gov/idtheft
By phone at 1-877-IDTHEFT (438-4338); TTY: 1-866-653- 4261
By mail:
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
The most important thing you can do is to act quickly. Identity theft damage moves quickly, so you need to stop the damage as quickly as you can to keep it from becoming even worse.
First, you should put a fraud alert on your credit report and get a copy of your credit report sent to you. A fraud alert will let creditors and others know that you have been the victim of identity theft. It will keep anyone from opening accounts in your name. To put the fraud alert on your credit report, you need to contact either TransUnion, Experian, or Equifax. The good news is that you only have to contact one of these companies because that company is required by law to contact the other two credit reporting agencies.
There are two types of fraud alerts that you can put on your credit report. They are an initial alert and an extended alert. An initial alert stays on your credit report for at least 90 days. This is what you should put on your account if you are worried you have been a victim of identity theft.
An extended alert is on your credit report for at least seven years. In case you have been the victim of an identity thief, then you will put this on your credit report. The reason is that it will show companies and creditors why your credit may be damaged. You are also entitled to two free credit reports within a year of putting an extended credit report on your account. In addition to that, credit reporting companies will take your name off of pre-approved credit offers for five years.
When you want to remove the alerts, you will need to contact the credit reporting agency that put the alert on for you. You will need to provide them with proof of your identity, your social security number, your address and further information that verifies your identity.
After this, you need to call and speak with the fraud department for the company that has been affected by the identity theft. Send them documents that support the claim that you have been affected by identity theft. You should also keep records of every communication you have with the company.
Also, make sure you put a PIN on all your accounts to prevent them from being used or accessed by an identity thief.
Once you have done this, file a complaint with the Federal Trade Commission. If you are sharing your complaint with the FTC, you will be helping law enforcement departments across the country track down identity thieves, thereby helping others who may have fallen in your position.
You can file a complaint online at www.ftc.gov/idtheft
By phone at 1-877-IDTHEFT (438-4338); TTY: 1-866-653- 4261
By mail:
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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