Tactics To Read and Raise Your Fico Score

Current credit score standards are not objective and unsuspecting consumers are paying through the nose as a result.

Part three of the Covert Credit Repair Series uncovers the truth about credit scores and exposes a few loop holes to help you make the most of this unfair financial scale.

The amount of money you earn the price you pay for insurance, weather or not you qualify for housing programs, and the interest rate you are stuck paying for the next 30 years is all directly related to your credit score. If your credit score is up in the ‘right’ percentage, you just may be able to enjoy that new job promotion or a nice low interest rate on your new car, but what is a person supposed to do if their credit score is not high enough?

The easy answer is; take steps to raise your credit score, do a little damage control until your credit score is up to par with the trustworthy in crowd that is approved for the best housing, best interest rates and lowest insurance premiums right?

It sounds easy enough, but outrageously, consumers are provided precious few details about how credit scores are calculated and even fewer details about how to fix credit problems in order to raise their score.

Yes, there are plenty of websites and books outlining fico credit score basics, such as 35% of your total credit score is based on how timely you’ve paid your debts in the past, and 30% reflects how much of your current credit is being used, but these facts are so overly generalized that it is ridiculous. There is virtually no usable information which might help a person take steps to realistically raise their bad credit score.

No one in their right mind could possibly know if they should pay an old charge off or pay down a couple of lines of open revolving credit to help them increase their credit score and qualify for that dream home with sketchy information like this.

What the heck is going on here? We are hopelessly tied to these credit scores, yet are given virtually no facts at all about how to improve them. Having a low credit score means more money is taken from our children’s mouths each month to pay higher interest rates, yet we are given nothing but hints and suggestions to go on to improve our credit score and qualify for the best money saving rates.

Luckily, the ‘big wig’ credit bureaus did give us a set of numbers to shoot for and a few scant credit score ‘rules of engagement’ to go by.

Stop by our Credit Repair website and pick up your free copy of our Covert Credit Score Squeezing Report that will save you from the grips of high interest rates. While you’re there, you can instantly download your Free Credit Report Online and see how your credit score measures up.

This entry was posted on Tuesday, January 30th, 2007 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.