Insider Credit Scoring Secrets

Insider Credit Scoring Secrets

You should realize by now that you have been assigned a “credit score” based on your credit history, but how do they come up with your score?

Every time you apply for a loan or credit card from a lender your credit report’s history and score will be scrutinized. Your credit score will most likely dictate whether or not you will be approved for credit.

Credit scores can range between somewhere around 300 and 850. The lower your credit score is, the higher the risk you are to the creditor. Statically, a lower credit score borrower is much more likely to default on a loan than a borrower with a higher credit score.

You should be aware of what your credit score is before applying for a loan. I recommend that you check your credit and your credit score at least once a year make sure it is accurate. Statistics show that 79% of all credit reports contain at least one error, with 25% containing at least one serious error!

To get your true “Fico” credit score the information from your credit reports are run through a mathematical equation that outputs your credit score. The three credit bureaus — Equifax, Experian and TransUnion also have a similar calculation that they use, but it does not give you the same accurate score that a lender would look at to issue your approval. The following information from your credit report is used to compute your score:
35% Payment History — Do you pay your payments on time?
30% Amount Owed – the amount owed compared to acquirable equilibrise on revolving               account.
15% Length of Credit History — How long have you established credit?
10% Types of Credit – variety is the key here.
10% New Credit Obtained — Have you applied for a lot of credit lately?

This information should give you an accurate intent of which factors on your credit report are impacting your scores the most. Remember as well that the more current an item is the more affect it will have on your credit score A late automobile payment from last month will injured your credit score more than a 3 year old collection will. To see my individualized review on lexington law please visit: credit-repair-story.com

Q&A: How does a credit card judgement affect a person?

Question by landon770: How does a credit card judgement affect a person?
How does a credit card judgement affect a background check?

Best answer:

Answer by youngfellow
If you credit application for loans, credit cards etc are rejected, It might lowers you chances of getting one the next time.
Other than that, I don’t think they are any thing else

Know better? Leave your own answer in the comments!

Will my bankruptcy chapter 7 unsecured debt discharge of 09 affect my tax return?

Question by Angelwing: Will my bankruptcy chapter 7 unsecured debt discharge of 09 affect my tax return?

Best answer:

Answer by efflandt
What do you mean “affect”. I don’t think they can suck it up directly, but you might be required to turn over some or all of it to your trustee (depending upon when bk was discharged), since it could have been used to pay your creditors sooner if you had proper tax withholding.

What do you think? Answer below!

How does student loan consolidation affect your credit rating?

I’m nearly positive I am going to consolidate my student loans from college because the repayment starts soon, and it seems like my ideal option. I’ve heard that it’s also supposed to raise your credit score immediately. Is this true? How much of an impact does it really make?

Thanks!

New Program Roles Out for Seniors Over the Age of 62 That Can Have an Affect on New Home Sales

The FHA is rolling out a program under the Reverse Mortgage program for Seniors exclusively that will grant them to buy Homes. The program as most people know it is a Home Equity Conversion Mortgage, but now it is also a home buy program. Builders, Real Estate people and Sellers alike need to comprehend the program and the impact that this program can have on the inventory that they have just sitting around.

This is for an exclusive market; just like many in the past went after the first time homebuyer. The difference with this program is that the senior stipulations are much different then any other mortgage program ever created. The Fact about the program ” The Reverse Mortgage buy Mortgage is for seniors who are over 62 and plan on living in the home as their primary residence. ” They must move into the home within 60 days of contract and application. ” They will be required to have quality that can be verified for the down payment and closing cost. ” The amount acquirable is based on age of the youngest mortal and the appraised value of the home.

” There is not Credit or Income to remember ” The amount of money required is based solely on age of the youngest person. ” Never make another mortgage payment for remainder of their lives. If a senior is going to look to buy a home they will need to have the funds available, they can come from many sources. ” Proceeds from the understanding of an existing home ” Savings and Investments ” Inheritance, insurance How ever they might not come from the seller of the home or and type of inducement to buy at this time.

However the mortgage is based on appraised value and not the buy price. In addition; the mortgage can't be used by investors who are looking to sell homes by using seniors and the basis to sell homes. The buyer of the home MUST be the senior themselves and they must live in the home as their primary residence. In many cases where kids of the senior who are considering moving in with the parent for care purposes the senior will be the only on the mortgage and the deed. If and when the senior ceases to occupy the home or passes on the note and the mortgage become due and payable.

Special Note: For many seniors who are considering or who have sold the home that they live in and have realized a acquire of equity on their homes up to $500,000 for a married couple this is a massive blessing. All of the acquire up the maximum of $500,000 is considered tax free. So being healthy to buy a replacement home without having to use a massive portion of the proceeds to buy will leave them with a very comfortable amount of assets for living until the end.

They will also not have any mortgage payments for the remainder of their lives, the senior will only have to make property tax payments and insurance cost along with maintaining the home If builders, Realtors and sellers don’t think this is not a massive opportunity then they should look at the size of this market! There are currently over 40 Million people over the age of 62 and the Reverse Mortgage industry as a hole has only penetrated the market at around 1% of the total market to date.

It is also a fact that 10,000 people each day are turning 62 years of age and that over the next 30 years the senior population in this country will reach over 86 million people or in percentages 25% of the entire population of this country will be over the age of 62. For the senior who has realized a acquire on the selling of the existing home and has a substantial amount of tax free monies using the Reverse Mortgage buy program will be the ideal financial plan they could ever have acquirable to them.

They will have a larger sum of money that is tax free and never have to make payments for the rest of their lives so living will be a superior way of life even if they did a Reverse Mortgage on the huge unused or inefficient home that they live in now. If the senior who had received a Reverse Mortgage in the past or someone had looked at the program in the last year and thought it was not a viable solution to income and security they need to take another look. It is not the same old program.

The changes that have taken place in just the last two months have been connector moving for many seniors. Here are the most current changes! ” The elimination of the county limits on the amount acquirable to borrow up to $417,000 ” The addition of a fixed rate Reverse Mortgage in addition to many adjustable programs ” The reduction of the calculation of the origination fees charged on the loan. This one change is worth thousands of additional monies in the seniors pocket alone. ” The prohibited use of tactics of utilizing annuities, insurance or investments within the Reverse Mortgage program.

There has never been a program outside of the creation of the Social Security Retirement program that can and will have a major and life altering effect on the senior population in this country and this one is a ONE HUNDRED PERCENT INSURED program and promoted by the US Government. So all Seniors, Builders, Developers, Realtors and Home Sellers alike you need to take a look at this program and think. This program can really make a difference.