credit tips: How Do The Credit Bureaus Come Up With a Credit Score?
- 02/12/08 01:33 AM
Credit scores are calculated by all of the elements on your credit report. Some of the things that can effect your credit score in a negative way are: Late payments Delinquent payments Charge offs Collections Bankruptcy High balance to credit limits Multiple credit pulls Multiple names listed on your credit report Excessive amounts of credit Having loans with finance companies such as American General and Beneficial. Large number of open accounts.Most of these are common knowledge. So lets just hit on a few of the ones that are not so common knowledge. High Balance to Credit Limits: If you have a $1000 credit … (0 comments)
credit tips: How Credit Scoring Can Affect Your Interest Rate
- 02/10/08 04:37 AM
In the 1960s, Fair Isaac Corporation started working on a system lenders could use to evaluate the likelihood of receiving repayment on loans. Prior to that, it was really a matter of trusting an individual to be a "man of his word," so to speak. Fair Isaac sought to take human error out of the equation with a reliable system that could determine whether or not consumers were truly worthy of credit, and thus FICO was born. This evolved to become the standard for lenders by the 1980s. Credit scoring has an enormous impact on a borrower's ability to purchase a home. … (1 comments)
credit tips: The Five Factors of Credit Scoring
- 02/10/08 04:00 AM
There are five factors that comprise the credit score. These are listed below in order of importance. Consider these five factors when trying to improve your credit score. PAYMENT HISTORY - 35% IMPACT: Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments, collections and charge-offs all have a negative impact. missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items. OUTSTANDING CREDIT BALANCES - 30% IMPACT: This factor marks the ratio … (1 comments)
credit tips: 4 Credit Scoring Myths
- 02/10/08 03:43 AM
Looking to buy a house? Make sure you know what will truly hurt and help your case with lenders.There's a lot of misinformation being propagated about what does and doesn't hurt your credit score. Now, we've worked with several excellent lenders who really knew their stuff and kept up to date, not only on loan trends but on the information that's available about credit scoring. That's important, because the FICO credit score, in its various permutations, is used in three-quarters of all mortgage lending.But what we've heard from several lenders was the kind of bad advice that can cost you money and keep … (0 comments)
credit tips: The History of Credit Scoring
- 02/10/08 03:30 AM
The credit score system used today has evolved since the 1960's. It was originally designed to provide lenders with financial profiles on consumers who wished to borrow money. The biggest concern was whether or not an individual had the ability to repay a loan, and establish what percentage of risk might be involved. Congress passed the Fair Credit Reporting Act in 1971 to establish guidelines for fair practices in regard to the use of credit scoring. This law was designed to promote accuracy in reporting and protect the privacy of consumers. In light of the increased use of credit scoring and … (0 comments)
credit tips: Credit Tips to a Lower Interest Rate
- 02/10/08 03:12 AM
In a mortgage lender's eyes, a good credit score translates into lower interest rates for home-shopping borrowers. The higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rate loans. If this is you, don't panic. Here are a few guidelines on what you can do to adjust your score and receive a favorable review from the underwriter: Should I pay off all past due balances and charge-offs?This is usually a good idea, but you only need to worry … (0 comments)
credit tips: Good Credit = Lower Interest Rates for Borrowers
- 02/10/08 02:16 AM
Here are just a few quick tips that can help put you in a better position under the discerning eye of an underwriter! Do you have past due balances that have been neglected? If they are showing up on your credit report and you want to purchase a home, make sure you bring them up to current status whenever possible. Do you have outstanding debt that you can afford to pay off right now? Try to get these accounts down to a zero balance, or at least a lower balance. If your cash on hand doesn't allow you to do this, try to … (0 comments)
Current information on the Indiana Mortgage Market as well as our community - Lafayette, West Lafayette, Purdue University, Tippecanoe County and the surrounding Indiana communities.
Credit scores are calculated by all of the elements on your credit report. Some of the things that can effect your credit score in a negative way are:;)
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