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How To Understand Credit Reports

margnorton — Wed, 16 Apr 2008 12:54:13 -0500

Financial uncertainty, foreclosures, and tightened lending requirements define the life of many Americans today. Credit reports and credit scores have always been important but it's more crucial than ever for you to understand how credit works. Your credit history can be your friend, opening many doors for you. But if misused, it can make your life difficult, causing doors to slam in your face, as you helplessly watch. Having credit is a privilege. You should protect it just as you protect your good name. When talking to a creditor, you are at a disadvantage if you do not know how credit works. Read this and you are off to a good start.

There are three major credit bureaus in the U.S. Basically, they are all the same, but there are some differences and the reports are a different format. The bureaus are: Experian, Equifax (formerly TRW) and Trans Union.

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How To Benefit from The Fair Credit Report Act (FCRA)

margnorton — Mon, 14 Apr 2008 15:43:06 -0500

Credit mistakes happen. Even with today's technology (and good intentions), sometimes information is recorded incorrectly. Individuals with junior or senior as part of their name, victims of fraud, people in divorce situations, etc. sometimes find the information on their credit report is incorrect. When this occurs, you usually have to contact all three major credit bureaus - Experian, Equifax and Trans Union - and work with them individually to correct your report. Thanks to the Fair Credit Reporting Act (FCRA), you have certain rights if you dispute the information on your credit report. The FCRA gives you the following rights:

How To Ruin Your Credit Rating

bronwyn — Wed, 02 Jan 2008 15:38:43 -0600

Read at your own risk - these steps are guaranteed to ruin your credit rating and destroy your financial future faster than setting your wallet on fire!

How To Eliminate Personal Debt Faster

omehaney — Fri, 30 Nov 2007 17:41:40 -0600

Do you remember when it was difficult to get a credit card? Well, these days it's not too hard at all. All the major retail stores have them and with on-the-spot financing, making it easier than ever to load up your wallet with plastic. And if that's not enough, you needn't look further than your mailbox to find credit applications or even pre-approved credit cards and loans. All this readily available credit makes spending more money than you have all that much easier.

Here are a few useful steps to follow to get out of the black hole of credit card debt a little bit faster:

How To Use Credit Cards Responsibly

bronwyn — Wed, 17 Oct 2007 19:59:38 -0500

Credit cards can either be thought of as the best thing to ever happen to shopping or the reason for your debt, headaches, and sleepless nights. Credit cards are actually a wonderful tool -- when they are used responsibly. These tips will help you to stay on top of your debt and make sure that you are using your credit cards in the best way possible.

How To Use an FHA Loan

Brad276 — Tue, 20 Feb 2007 10:27:00 -0600

A Federal Housing Administration (FHA) loan is a federally-backed loan designed to allow homebuyers to get into a new home with a low down payment. While not limited to first-time homebuyers, the loan is ideal for your first home. The FHA loan will allow you to get into a home with minimal money down, even with no down payment in some circumstances. In return, you will see a slightly higher interest rate and will be responsible for paying mortgage insurance until you are able to build the equity in your home to 20% of the home's value. Here are the recommended steps to obtain and use a FHA loan.

How To Take Out a New Construction Loan

Brad276 — Fri, 16 Feb 2007 13:08:00 -0600

When looking for a new home, you have a number of options, including purchasing existing construction or building a new home to your specifications. If you choose to build, you will likely need a loan in order to finance the building. A traditional mortgage will not apply as the home is not completed and available for occupation. This is where new construction loans come into play.

A new construction loan is a short-term loan that will allow you to build the home of your dreams. New construction loans differ from traditional mortgages in a number of areas, including the terms - they are shorter term and usually carry a higher interest rate and are often variable rate as opposed to fixed. Many new construction loans also will require that you make interest-only payments during the construction, with the principle balance due at completion.

How To Take Out a Jumbo Loan

Brad276 — Fri, 16 Feb 2007 10:29:00 -0600

A jumbo loan is a home loan that is greater than the loan limit set by the Federal National Mortgage Association (also known as Fannie Mae) and the Federal Home Loan Mortgage Company (also known as Freddie Mac). Currently, the maximum value of a standard loan is $417,000 for a single home property; $533,850 for a two dwelling property; $645,300 for a three dwelling property; and $801,950 for a four unit property. Any single loan amount that exceeds those values will bump your loan into jumbo loan territory. Loans within the limits are referred to as conforming loans.

Because jumbo loans are not supported by the two listed Federal Mortgage agencies, they usually carry a higher interest rate. Other than the higher interest rate, jumbo loans are identical to a traditional, conforming loan. You can usually obtain a jumbo loan through the same channels as a conforming loan as well.

How To Use a Payoff Calculator For Debt Reduction

Beth141 — Tue, 06 Feb 2007 13:25:00 -0600

A debt calculator is a device you can find online which will help you figure out how long it will take you to pay off certain debts. Using a debt calculator is fairly easy and can be a helpful tool in creating your budget. Here are some steps to take when using a debt calculator.

How To Repair Your Credit Report

Mary311 — Fri, 02 Feb 2007 18:44:00 -0600

A poor credit score can be very damaging to an individual in a number of different situations. Poor credit can result in an individual being denied a loan for a car, a home or any other purpose. Even when low credit scores do not result in the individual being denied these loans, they may result in the individual receiving unfavorable loan terms such as high interest rates. Additionally, poor credit scores can also result in an individual having an application for a rental agreement denied. This is because both financial institutions granting loans and leasing agents renting out apartments and homes want to be reasonably sure the individual will be able to repay the loan or pay the rent in a timely fashion and may not be willing to take a risk on individuals with poor credit. Fortunately, there are steps you can take to repair your credit: