The Home Equity Killer

Get A Free Copy Of Your Credit Report

by Shirin Sharkawi, Founder Of Fair Community Lending Services Inc.

Credit is the key to building a solid financial future.  With strong credit you are able to buy property with 0 or little down and receive great interest rates.  Credit allows you to build your small business by opening up doors to millions in financing options available for small businesses.  Strong Credit allows you to save thousands a year in lost interest in area such as cars, credit cards and all you finance.

When you pay a higher interest rate you pay more money on a car, house or credit card purchase.  Interest is the cost of the money you finance.  The better your score the less the cost of the money you finance.

You can rebuild your credit if you have had issues.  You also have a right to ensure that any and all mistakes on your credit are fixed with the proper correspondence to credit agencies. Take control of your life and get on the path to a solid financial future.

Credit is the first step to attaining financial freedom.   Log on to  www.mycreditmywealth.com, to learn more about credit and get a FREE Copy Of Your Credit Report.  Put a 12 month plan together and take control.   Good Luck to you!

Things That Effect Your Credit

Payment History- 35%

It is recorded on your credit report each time you are 30/60/90 days on any of your credit obligations.

The more recent the late payment, the more of an impact it has on your credit score. Even if you are late on a $5 payment your score will be affected. If you do end up being late, catch up.

Amounts Owed- 30%

Consumers never want to appear as if they are overextended.
Aim to keep the balance on your revolving accounts  less than 50%.

Concentrate on paying down the balances each month.

If you only pay the minimum payment required each month, a $3,000 credit card debt can take up to 20 years to pay off.

Length of Credit History- 15%

The longer an account is opened and in good standing with a particular creditor, the better. Avoid transferring balances too often because this will eliminate these relationships. It is important to establish a good history with our creditors.  Closing accounts you have can hurt you. 

New Credit- 10%

When applying or refinancing, keep all applications within 30 days of each other.
When you request a credit report yourself it will not affect your credit score.
Credit can be reestablished by opening new accounts and paying them on time.

Types of Credit Used- 10%

Diversify by having revolving accounts, installment accounts, merchant accounts.
Limit applications for new accounts, having 3-5 credit cards is sufficient.

TIPS TO IMPROVE YOUR CREDIT SCORE

Pay down your debts to below 50% of the credit limit. – If you have a $ 1,000 dollar credit limit on a credit card try to keep the balance below $500.

Make Payments on Time even after late pays.- A $10 late payment reported to the credit agencies, can pull your credit score down as drastically as a $200 payment. If you have been late get caught up. The further away from the late payments you are, the higher your score will get. Your score can be 550 today, because of a recent car late and increase within months if you get caught up and pay on time.  If you have a good history with a creditor they will sometimes take off the late payment on your record and send a letter to the agencies.  Always try to work with them to remove if possible.  

Check credit reports periodically and correct all inaccurate information. -Mistakes happen from late pays to credit fraud. Keeping up with your credit report allows you to catch the mistakes early enough to correct them. Consumers are entitled to receive a free credit report once a year from all credit agencies log on to www.annualcreditreport.com.

Pay off all past due and collection accounts- These accounts can come back to haunt you and bring down your score. After 7 years, you can write to Experian, Equifax or Transunion to have the collections removed. However if the debt is sold to another company before the 7 years is up even if it is 6 years and 11 months later, the collection company can add it on to your credit and the 7 year clock will start over again. 

This means you could have a 700 credit score which is considered A credit and drop drastically depending on the debt that is added. Collections can also be placed as a lien on your property. This means if you decide to sell or refinance your home you will not be able to unless you pay off the collection and all accumulated interest.

Go back and negotiate your collections 25 cents on the dollar or 50 cents on the dollar with the debt collector. Also ask them for a letter of deletion before you make the payment. If you delete the collection it will be better than just showing it paid in full. Deleting collections or late pays will increase your score paying off collections will not but it will allow the clock to stop so your credit score can bounce back.

Open up a secured credits- When your credit score drops banks will not extend credit on credit cards without security deposits. Go to your local bank and apply for a secured card. The secured card allows the bank to extend a line of credit to you secured by a set amount you deposit in the bank. You can use the card and make payments as you would a regular card. You can only use up to the amount deposited. The card will start to raise your score as you use it and make monthly payments. If the card does not show up on your credit, simply write into the credit bureaus, Experian, Equifax, and Transunion and give them the card number, the name of the bank you have the card with, your address, your social security number, your name and they have 30 days to add the credit card onto your credit after they verify it with the creditor.

Piggy Back Off Of Established Credit –If you know someone who has an established credit card account they can add your name and social security number onto their card. The card will then begin to report on your credit. Pull your report 60 days after this happens and see if the card is reporting. If it is not you can write into the credit agencies and they will verify the account with the creditor and add the account on your credit. Someone with good credit cannot be affected in any way by adding someone onto their account that has a lower credit score.

Retain older accounts proving good history and avoid opening unnecessary accounts- Closing accounts can hurt you keep your accounts open.

Helpful Resources

Prevent unsolicited promotional inquiries- You can opt out at www.optoutprescreen.com

To Learn More About Fair Credit Act - www.mycreditmywealth.com

To Learn Where You Can Get A Copy Of Free Credit Report-

www.mycreditmywealth.com

To See Sample Dispute Letters - www.mycreditmywealth.com

For more information on credit and the home buying process log on to www.fcls123.com.

To ensure you are paying the best interest rate for your credit and no excess closing costs when you buy or refinance your home- www.feepolice.com

To book Shirin Sharkawi to discuss credit at your Church School or Place of Business- Seminars@mywealthmycredit.com

 

 

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