Credit Scores

Do you know your Credit Score?  This three-digit number determines whether you'll get the best interest rates on loans, or if you'll get the money at all.  It's not difficult to find out your personal Credit Score, if you know where to look.  If your score could use some improvement, there are steps that you can take.  We'll help you learn how to Improve Your Credit Score. This web page is a starting place to get information about Credit Scores.  You will learn what a Credit Score is, how it can affect you, and how to get yours to be as high as possible.  Further down on this page, we present an article called, "Clean Up Your Credit Score".   The article is written by a woman who has firsthand experience with the quest to improve her Credit Score.  Discover which techniques worked for her.  They can work for you too. After you have read our article, follow the Related Links we provide to other informative and interesting web sites about Credit Scoring.  Also, be sure to buy a few of the Books we recommend below, to learn even more about Credit Scores and Credit Repair.  Before you apply for a loan or mortgage, do your research on Credit Scores and find out what your score is.  You might want to improve or repair your credit.  Before you sign up with any credit repair companies, learn about what you can do for yourself.  This web page will get you started on any credit improvement or repair project!  Related Links: AnnualCreditReport This is the place to start!  Go here and get the free annual credit report from each of the three credit agencies.  This is really FREE, you don't have to sign up for any plans or services like you do with other web sites. myFICO  A site created by Fair Isaac, the company who invented the FICO credit scoring method.  They sell credit score monitoring products but they also have good free information on what affects your credit score. BankRate.com, Credit Cards   This is the site to visit for everything you want to know about Credit Cards. What's Your Credit Score Another good article about Credit Scores and how to improve them.  Read These Books:

Clean Up Your Credit Score by Shaunna Privratsky   4/5/06 If you are planning a big purchase like a new home or vehicle, get your credit score in order first. Even waiting six months to boost your credit score can mean big savings in lower interest rates and better payment options. Your credit score is a three-digit number between 300 and 850. It is known as a FICO score after the Fair Isaac Corporation. A high score can get you great interest rates on mortgages, car loans and even credit cards. A low score, on the other hand, may cost you that loan or allow lenders to really sock it to you with higher interest rates. Maybe you don't think your score matters. Think again. Every time you fill out a job application, apply for a driver's license or even request a quote from an insurance agent, your credit score is scrutinized. A low score translates into a credit risk or even a riskier driver. The first step is to find out your current score and view your current credit reports. I got three free copies of our current credit report by calling 1-800-685-1111. It is fully automated and takes about fifteen minutes. You can also get free credit reports, once a year, online at www.annualcreditreport.com. To check or correct your credit report, you can also directly contact the three major credit bureaus: Equifax, 800-685-1111, www.equifax.com Experian, 888-397-3742, www.experian.com TransUnion, 800-888-4213, www.transunion.com Note: Don't be tricked by similar websites or phone numbers where you must pay to get this information. You are entitled to at least one free credit report a year, or if you have been denied a loan or credit application. If you notice any inconsistencies or errors, write or call the lender to get it corrected. If you close any credit card accounts, make sure the balance is paid in full and note that it was closed "by customer request." Figure out your ratio of credit used to available credit. For example, if you have five cards with $5,000 limits each, your available credit is $25,000. If your total debt is $7,500 or less, you will still have a good score. However, if your available credit is only $10,000 with debt of $7,500, your score will be much lower. Try to keep your ratio under 30% for the optimum rating. Paying off your credit cards is a major step to raise your score sky high. The best way is to stop using credit. Cut up or cancel all but one or two cards. Only buy with cash. Move your debt to to 0% interest credit cards with balance transfers. These usually only last six months, so transfer again to avoid paying interest. Pay double or triple the minimum payment to gradually reduce the debt. When you are debt-free, you can boost your credit score by using your credit card wisely. Follow a smart policy of paying your bill in full every month to avoid interest payments. Be aware that many credit card companies have shortened the pay period to 21 days, so you should pay the bill right away to avoid late fees. The easiest way to increase your credit score is to pay all of your bills on time. Even one late payment of thirty days or more will show up on your credit report. If an emergency arises and you know you will be late, call the company before the due date. Most lenders allow at least one "grace" period a year, without extra interest or penalties. Recent natural disasters like hurricanes Katrina and Rita are good examples of when a credit card company may offer a grace period like this. Another way to boost your score is to clear up old debts like student loans, personal loans and signature loans. Even if interest rates are very low, lingering loans can leave a bad impression. What if you made some credit mistakes in the past? Time heals all wounds, or in this case, bankruptcies. It generally takes seven to ten years to erase a bankruptcy from your credit score. Yet that doesn't mean all your debts are erased. Some credit card and other companies can still come after you if the debt is not discharged. Seek legal counseling before you take this step. We had a lingering mistake on our report. In 2002, we were late on our mortgage payment two months in a row, after my husband's company declared bankruptcy. We even had a representative show up on our doorstep to make sure we weren't skipping town! We paid hefty fines and late fees and got back on track, yet the negative information stayed on our report. I finally wrote to the company and asked if they would remove it. They declined. Six months later, a new company bought out our mortgage company, and I again wrote and asked if they would remove the stain on our report. They did, and our credit score jumped 30 points! I was polite, non-threatening and explained that we had paid all the penalties and late fees. It was worth the effort and postage to improve our score. Your credit score is the key to your financial future. Know your score, take these steps to improve it and you will enjoy the financial freedom you deserve.

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