FICO Revealed Worthless

FICO is worthless. Truly wealthy people understand that credit scores and credit bureaus and credit repors really don\’t matter in the grand scheme of things.

I often wonder why the average American worries so much about their credit. Why do you even care? A high FICO score can only lead to the possibility of high debt.

Shopaholics have been schooled to buy first, and pay later. Or maybe even hide the credit card statements. Out of sight, free to shop.

A high FICO/credit score can only guide you down the path to crushing debt. Living beyond your means is the American Way. Here are 5 reasons to take a different approach and to tear up your credit report:

1. Your FICO Does Not Cover the Nut.

Credit is worthless if your bills are covered by your income each month. If your income falls short, you have bigger problems than a low FICO score.

2. No Control.

You can spend thousands of dollars trying to protect your credit score – often to no avail.

For example, your wife pays the landline phone, and you pay for the cell phones. Her score goes up, yours does not. You might write the checks for everything, but if the right bills (mortgage, electric, phone, gas) are in your wife\’s name, she gets the FICO boost.

3. Inaccurate.

Credit bureaus are not human, but boy can they make mistakes. And usually not in your favor.

What\’s missing? Your income. Someone who just landed a big paying job gets no higher FICO score. Someone who pays cash (credit ghost) who has no debt is treated like a leper. Mistakes also happen. Credit bureaus are notorious for confusing similar names and keeping bad information on file even after notification by effected consumers.

4. Excessive Debt.

Without a high credit score, it\’s almost impossible to take on too much debt. If you cover your bills each month and live within your means, you don\’t need credit anyway.

If you have a high credit scores, banks will flood your mailbox with offers to give you more credit.

Lose your job, suffer an illness, or don\’t pay on time, and you will wonder how the word easy was ever attached to credit.

5. No Legacy.

Death and taxes are inevitable. You can\’t successfully avoid either. On the other hand, your credit score is left at the graveside.

Wealth matters. Your credit score does not.

Eat, drink, and be merry, just not on someone else\’s dime.

Live happily within your means.

Don\’t lose sleep or thousands of dollars protecting your credit.

Discover more alternative financial strategies at Burn Down the Freaking Mission.

Adverse Credit Mortgages – Getting Approved With A Low Credit Score

Having good credit affords more home loan options. Luckily, many mortgage lenders understand that bad credit happens, thus many are willing to offer home loans to people with low credit scores. Of course, the best way to improve your odds of getting a low rate is to boost credit rating. Still, it is possible to get approved with poor credit. Here are a few tips to consider when applying for an adverse credit mortgage.

Expect a Higher Mortgage Rate

Although many lenders offer comparably low rates to homebuyers with low credit scores, these rates are slightly higher than current averages. Fortunately, because of low mortgage rates, individuals with poor credit can find affordable homes.

If you had a recently discharged bankruptcy or foreclosure, the rate you obtain on a home loan may be several percentage points above the average. Hence, it may be wise to delay buying a home until your credit improves. On the other hand, if you are hoping to quickly increase your credit, and you can afford a large mortgage payment, purchasing a home immediately following a bankruptcy or foreclosure may be an ideal choice.

Take Advantage of Sub Prime Mortgage Lenders

Traditional mortgage lenders typically offer loans to people with good credit. These persons are considered prime applicants. If you do not fit into this group, don’t worry. There are many lenders that focus on bad credit home loans.

Sub prime lenders offer loans to people with all credit types. In fact, it is possible to get approved for a home loan with very low credit. This is great because some mortgage lenders do not approved loans to people with a credit score below 600.

Improve Your Chances of Getting Approved

If you have a very low credit score, it may take some time before you notice a major credit score increase. Still, you should start improving credit early. Raising your credit score by a few points may qualify you for a better rate.

Maintaining good credit is easy. However, you must use credit responsibly. This involves paying your creditors on time and reducing total debts. If too much debt is the problem, consider working with a non-profit debt consolidation service. Furthermore, credit counseling can offer practical tips on how to better manage credit.

Wait A Minute. How Long Will This Stay On My Credit Report? Part 1

Your credit history. It could be your best friend, or your worst enemy. Most of the time it\’s like a nosy mother in law coming to visit. You know that she\’s coming, and that\’s always bad news, but you are too afraid to ask or even consider how long she will be staying. Even though that was the worst analogy ever, read on to see how long negative marks stay on your credit history!

In my opinion, there are two records that really count. Your criminal record and your financial record. Unlike your criminal record which will loom over your head for a very long time, your credit report and scores are not permanent. But how long can these negative records exist on file?

First off, mistakes in your credit report will be removed immediately. It you find a error, or a negative account that doesn\’t belong to you, contact the credit reporting agency and the creditor. You should be able to have the negative account removed within 180 days.

Anytime your credit report is pulled at your request, an inquiry is put on your report. An occasional inquiry once in a while couldn\’t hurt, but if you have placed a large number of inquiries within a short time period, this generally lets prospective creditors know that you need the dough and you need it fast. The bottom line is that the more inquiries that show up on your report, the lower your score will drop. These will usually last only up to two years.

But here\’s the scoop about inquiries. Not all inquires will negatively affect your credit score. Soft inquiries, like when you get your credit score, or when companies check your credit for purposes of making unsolicited credit offers do do any harm. When you apply for a credit card, the creditor pulls your credit report that will result in what is a hard inquiry. This may potentially lower your score.

Mallory McGuinness-Hickey is employed bya debt collection agency. She also does pieceson the credit industry, business, finance, and debt collection. This and other unique content \’debt recovery letter\’ articles are available with free reprint rights.

Debt Loan Consolidation Get A Plan To Get Out Of Debt Loan

Debt loan consolidation will merge all of the debits that you have been bothered about all the time that you could not repay. What happens next is that it will be put into a single loan that you don\’t have to worry about. Then the bank will processes this request and you can pay off all these debts with that.

In return, you\’ll just need to pay a single loan for everything. As of today companies and banks are generous enough to offer debit consolidation loan. The best bet are the banks that offer the quickest relief. Debit consolidation offers some really fantastic programs that consolidate debt and pay off your debt and also lower your monthly payments which are now possible with reduced interest rates.

Most important reward that you would get from a debit consolidation loans is your self-respect. Don\’t get trapped into a bank that has an offer to transfer a whole unpaid amount as this is a trap that won\’t work out correctly. This is a misconception that will never work out right. With regards to your monthly payment it will not reduce at all with such a transfer. Another fall out can be with such an offer that would drop a credit rating very low and can disqualify you from receiving any loan due to the black mark against your name. The best debit consolidation loan company is the one that provides you a somewhat priced formula for reducing your debit burden. After this you can expect to see a great positive psychological effect from solving your debt problems. Surely, your morale will booster and you can expect to see yourself in a new light. Remember do not opt-in to companies that give out superficial solutions about lowering your monthly payment but raising your overall debt. This will overtime increase your payments and can become difficult. Also, it\’s very important to remember that the overall purpose of getting help from the bank is to stop debt within a short time and lower the overall interest rate. It\’s very important to remember that when going in for a debt consolidation loan, the company that\’s offering should be able to provide a quote for fee. Most importantly, it should show a pleasing outcome within a short time period which is the basic purpose of debit consolidation.

It\’s important not to go to a bank that\’s going to charge for calculation the loan up and this scheme and there\’s no real value in this. Ideally, what you\’d like to see is calculations done by taking your account options and what terms can be set for the total duration of the actual debt consolidation loan.

It will come as a great surprise for your efforts to have absorbed yourself with researching the best company that can solve your debt problem. The monthly outcome of your payments to a company that has provided debt integration will be much less and better if you selected a consolidation loan that works toward your advantage.

Next, if you want more information check out Good Debt Consolidation Loans For Bad Credit or the best refinance for bad credit

categories: credit,loans,bad loans,consoldiation loans

Quick Student Loans

Student are people who are assumed not to have an income. They may also be studying a long way from their parents\’ home and maybe even in a different state. If they suffer a sudden loss of income from their parents, students could be stuck in the middle of a semester or an exam, not being able to pay their college fees. This is where a quick student loan could come in very useful.

In the case of ordinary student loans, there are various benefits given by the student loan provider. For instance, students are not expected to repay their student loan until after they have finished their college education and have found a way of earning for themselves and also students do not have to go to collect the student loan because the loan money is credited to them by electronic deposit.

These longer-term student loans are sought after by students, as they can then invest in their courses. However, the more money a student borrows, the more they will have to repay in interest on the maturity of the loan. This is sometimes hard on students especially when the maturity date of the loan falls not long after the end their college courses.

Quick student loans are used for a very much shorter period of time, typically for about a month or two. After this period expires the student is suppose to repay the loan and the interest in one go – there arent any installments in this repayment method.

All of the student loan and the interest is expected to be repaid on the due day. This could be difficult for college students who do not have a real income. However, these quick student loans do not carry much interest since the period of the student loan is so short.

In spite of all the benefits of a quick student loan, it can still go badly wrong for the student. For example, if the student wastes the money in an improper way. Instead of using the money for the purpose it was lent, which is typically education, students could be tempted to spend the loan on unnecessary activities, like a holiday. This could spell the end for the student\’s academic life, because they will have to find a way of earning money to repay the loan.

Many quick student loan providers display their information on the Internet, so that you can compare their student loan (consolidation) rates. Your education doesnt come cheap, so rather than lose the chance to finish your education, let a quick student loan provider give you a quote on a quick student loan, which may just be the helping hand you need to start you off on a successful career.

If you are need a quick student loan, please come to our website, which has special offers on Student Loans Get a totally unique version of this article from our article submission service

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Negative Entries and Your Credit Report

Any missed monthly payments or defaults on loans will appear on a consumer’s credit report as a negative entry which details this information. When the consumer attempts to remove these negative entries, is is called “credit repair.”

There are many significant ways in which these negative entries can affect you. These negative entries will make it harder to be approved for any credit products, such as home loans and credit cards. You can be assured that the financial products for which you are approved will include a high annual percentage rate (APR) and associated monthly and annual fees and charges.

Don’t throw your arms up in despair! There is good news! There are many online companies which, for a fee, offer credit repair services. Alternately, you can attempt to repair your credit yourself if you would prefer not to pay for credit repair.

Obtaining a copy of your credit report is the first step toward credit repair. This is easily accomplished by contacting the three major credit reporting agencies – Equifax, Experian, and TransUnion – and requesting a copy. Each of these credit reporting bureaus is required by law to provide you with a free copy of your credit report every twelve months. If you would prefer, you can call (877) 322-8228 and request a copy of your credit history. As a final alternative, you can contact one of the many online companies which provide this service.

Review your credit history for any false or inaccurate information when you finally receive it. Be sure to review your credit report in its totality. This means that you should be sure that all information is accurate, such as prior addresses and current and past employment, in addition to the financial information. Your full legal name should be shown as well as your date of birth.

A dispute letter should be written to the credit reporting agency if you find any false or inaccurate information. Your dispute letter should explain the reason you are writing and you should include any supporting documentation you may have. Retain copies of all correspondence and documentation to and from the credit reporting agency.

The credit reporting agency is required to verify your claim and has 30 days to do so. The negative entry must be removed from your credit report if it cannot be verified within the 30 day timeframe. The credit reporting bureau should send a letter to you which outlines what actions it has or has not taken with regard to your credit report. If an item is not revised or removed which you feel is false or inaccurate, you should write again to the credit bureau asking that it explain its decision. Doing this is called requesting a “method of verification.”

Though this process can be time-consuming, it is beneficial in order to remove all negative entries from your credit report. This will help to increase your credit score which will help to increase your chances of qualifying for better financial products.

Learn How to Stop NCO in its Tracks. Free Tips to Escape Debt in Less than Seven Days.

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3 Easy Steps To A Better FICO Score

It used to be that “people” made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number – your FICO score – determines your credit worthiness.

Several credit models can be used for this article, however we are going to focus on the Fair, Isaac Company model. Better known as FICO.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Preserving your FICO score, and improving it, is not difficult, but it may take time. Here are some tips to maintain and improve your score, based on three credit situations.

FIRST: Obtain a Credit History

You may not have a history for several reasons. Maybe you pay all your bills with cash, maybe you?re a student, maybe you have never needed a loan for anything. All this will have an effect on your history. Don?t be upset…if you?re like most people you will get a credit history far sooner than later.

An easy way to improve your credit history is to get a loan and pay it off onetime. A loan such as a car loan (also known as an installment loan) is generally looked at as more important, and given more value, then a credit card loan.

Another way to acquire a better credit history is to take $1000 and open a 6 month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here’s the trick. Take the $1000 loan, and open another 6 month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.

Let the CD’s mature, paying only the minimum for the 6 months. Once they mature you cash them out and pay off all three loans. Congratulations…you now have a credit history.

SECOND: Keep your credit history clean.

So we now have a good history. How do we get the score higher?

You don?t need to close old accounts. (Unless you?re being charged a fee to keep the account open.) Part of the FICO formula is based on the amount of credit available vs. how much you have used.

Another thing to be aware of is how you manage your money. Here?s the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here’s what happens – your credit card company reports your credit information monthly to FICO. However if they report it on the day before you pay it off…the credit agency sees you carry a balance every month. If you can try changing the days you pay off your credit card.

THIRD: Fix your bad credit

For whatever reason, if you have a poor credit history, there are things you can do to improve your score. Some of them take time, and you will probably be best served by talking to a credit counselor to be sure that you not only repair your credit history, but also eliminate what caused that poor credit history in the first place.

The FICO score is most affected by your credit history. To repair a low credit score start paying your bills onetime. In order of value you need to pay your Mortgage, Installment loans, and last your credit cards.

The next largest factor on your credit is how you have used it. You can improve it by paying off your credit cards.

At the end of all this, make sure you review your credit report. Get one report from all three credit agencies. Read every page. (I know it reads like stereo instructions in Greek) Look at the entries and call and contact the creditors to have them remove any errors.

Your FICO score is an important part of your financial life, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial advisor.

Doc Schmyz has done real estate deals all over the US. His free website shares Real estate investing information for all over the US. Findreal estate information by state

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Online Bankruptcy Filing Databases Plus HowTo Use Their Interface

When do you think about a bankruptcy database? The one that is used by the federal courts is known as PACER which can be accessed through the Internet only after paying a fee for such access. This database is especially important to attorneys since they need it to file their client’s bankruptcy cases online.

Attorneys are very often allowed to file their client’s bankruptcy directly online during times when a lot of cases are being filed and processing times are way up.

It is important to realize however that the Pacer bankruptcy database is not accessible to any debtor and anyone seeking access must go through an attorney.

Another option available is to use one of the many independent bankruptcy databases that have been built up by many companies, these databases can be very useful when wanting information regarding a company you’re thinking of dealing with or when you have two file for bankruptcy.

Using different search queries with bankruptcy databases

If you are looking to use these kinds of bankruptcy databases, you can enter certain parameters for your search which can include according to region which will throw up information according to county, state, city and even three first digits of zip codes.

In addition, you may want to locate information according to date such as filing dates, discharge date, dismissal date and even date of first meeting of which a 341 meeting is a good example.

Then of course you may want to try a search by the type of bankruptcy filed. So you can easily search for bankruptcies that were filed under chapter-, 11 and or 7. In addition you may want to even try a combination.

Remember here that chapter eleven deals only with businesses while chapter thirteen is meant for individuals only, and even the majority of chapter seven’s are for individuals as well.

Some of the more complete bankruptcy databases will also include details such as the amount relating to assets and liabilities for each case.

You can also expect to find house addresses, apartment numbers, PO boxes etc. You should also be able to filter through this information.

This has been a quick overview of what you can expect from some of the major bankruptcy databases. As I’m sure is clear by now these databases hold a lot of information that can be very useful to the right people.

This facts on Bankruptcy Databases came from the article linked to here.

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6 Ways To Become Credit Debt Free!!!

In order to get out of credit card debt takes perseverance and willingness to succeed. So whether or not you are being swallowed by the sink hole of credit card debt or you are just starting out to dig yourself into credit card debt – you have to take action before it’s too late in order to be come debt free.

The six tips listed below can help you get out of credit card debt…if you use them.

1. Stop using your cards – By using your credit cards you are paying additional interest on the credit card balance you owe on which you’ve already been charged interest. Unless you pay the new charges when you are billed you are accumulating additional interest on both present and past charges. (Don’t you love credit companies…and yes this is legal for them to do.)

2. Figure out how much credit card debt is costing you. How you may ask! You can determine how much credit card debt is costing you by seeing how much interest rate you have to pay. This is done by reading the fine print on your latest credit card statement. If you do not understand then you call your credit card company and have them explain it to you. By law they have to explain it to you.

3. Lower your interest rate you are currently paying on your credit cards. Lowering your interest rate is the most effective and easiest way to get your credit card debt problem under control. You can lower the interest rate you are paying by transferring high interest rate amount balances to lower or no interest credit cards. Once you’ve stopped using your credit card you’ve stopped your situation from getting worst, it’s now time for you to improve it.

4. Call your credit card companies and tell them to lower your interest rates. Since you already know the interest rates it is time for you to ask your banks and credit card companies to lower the interest rates. When you call them, ask to speak with a supervisor. The supervisor has the authority to give you a lower interest rate. (Don’t take no for an answer)

This is what you tell them: The rates are too high and you want it lowered. And also let them know that if they are not willing to lower your interest rate you are considering to close your account and transfer all your credit card balances to the company that is willing to give you the lowest interest rate. (since they don’t want to loose the future profits from you they may lower your rate in order to keep your business.)

5. Consolidate your credit card debts – transferring all credit card balances to one credit card – is an effective way of getting out of credit card debts. So when negotiating to get a lower interest rate you should let it be known that your ultimate goal is to get out of credit card debt at the lowest possible cost and not credit card shuffling.

6. Cut your savings in half. It would be foolish to be paying high interest rates while continuing to save the usual amount, if you are indeed saving. Once you have removed the credit debt you can actually increase your savings by adding the former “credit payment” to your savings account.

It works like this. Get all your credit card balances. Divide each balance by the minimum amount you are required to pay each month. This tells you how long it would take to pay off each balance. Start by paying off the one that takes the least amount of time (half your savings + minimum payment). Continue making minimum payments on the rest. When that least payment is finished you would pay the next least payment and so on. You would continue using this tactics until you are no longer in debt.

If you follow the above tips and tactics you should be on your way to getting out credit card debts in very short order.

Doc Schmyz has worked with investors all over the US. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state

categories: credit,cards,debt,management,wealth,credit score,wealth building,retirement,finance,money,funds

How To Save Money During Bad Economic Times

Our nation, over the last three decades, has been on a consumer credit binge. The thought of saving, of investing for the future, has more or less become pass. How many items have you purchased, knowing that you’d be disposing of it in a year or two? Cell phones, laptop computers, cars – the consumer driven economy is built to consume things, and it’s not built to save or invest in things.

That has to change, on both a nationwide and a personal level. The virtues of frugality and thrift, while old fashioned, are never truly out of style. Here are some things you can do to help cut your bills – either to handle a reduction in work hours or to stretch unemployment benefits:

You can’t learn to save until you know what you’re spending. Do a realistic look at your monthly expenses. Keep receipts for everything you spent in a month or six weeks and tally up how much you spend on things like eating out, having a coffee at Starbucks and other non-essentials. If you smoke, look at how much you spend on cigarettes for a month. Then look at how much those items cost you in a year. For example, if eating lunch at a fast food place costs $7 per meal, and you do it every working day, that’s an average of 22 meals a month, times 12 months, or over 250 per year. Is spending $2,000 a year to eat at McDonalds worth the money to you?

In addition, eating at home can save you lots of money. You can cook a meal for less than $20 that will feed a family of 4, two or three times. Eating at home is also much healthier because: you can control what goes into the food yourself. In fact, that is one of the key elements to frugality: doing things yourself instead paying others to do them for you.

Similarly, when you’re dealing with the aftermath of credit binging, it’s worth your time to do things for yourself. Get copies of your credit reports and go over them at least once a year. Look for items that are incorrect; your credit rating influences how much you have to pay in interest rates and monthly payments. When you’re stretching paychecks to cover bills, having your minimum payment double on credit cards is a disaster.

If you’ve got items that are wearing out, learn to fix them. It’s surprising how easy it is, for example, to repair shoes with a bottle of rubber cement and a can of shoe polish. Or to mend jeans that have ripped, or to turn them into shorts. Rather than buy paper towels, turn old tee shirts into kitchen rags. If you’re driving an older car, rather than trading it in (and getting a new, larger car payment), pay it off and drive it until it’s not worth it to fix it any more. If your old computer will access the internet, there’s no real need to buy the latest and greatest. If you have kids, don’t forget hand-me-downs. Likewise, take the time to know your neighbors, and run swap meets for old items that you aren’t using – it’s amazing what sorts of things can turn up at them.

Learning how to cook is an amazing way to save money, and there are plenty of public domain cookbooks from the 1920s and 1930s that were written when being frugal and thrifty was a matter of survival, when butter was a luxury, and being able to afford meat for the cookpot was a once a week thing.

Dorthy Weatherbush takes her personal finances very seriously. That’s why she uses Legal Zoom to make sure that her financial house is in order. She used Legal Zoom to make sure that her will was filed so that her kids would get all of her savings.

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