What Does Your Credit Say About You?

A credit report is more than just a snapshot of your financial picture; it can assist credit grantors in determining your overall risk factor. Additionally, lenders, credit grantors, and even human resource departments often use it as a tool to determine a person's character.

When applying for a mortgage, your lender will request a credit report from one or all three consumer credit agencies. While credit repositories do not divulge exactly how the scoring model calculates the numerical score, the score determines your credit standing and worthiness. This score is based on several factors including types of credit, amount of credit and your payment history. For instance, if a score is 679 with a 12-month mortgage reporting 30 days late; or a 620 score with no mortgage lates and a credit card under half the credit limit ? who would you lend to? When refinancing or purchasing a home, the accuracy of this information could literally mean thousands of dollars either saved or lost.

Vital information is constantly streaming into your credit report, both accurate and erroneous. Due to the level of erroneous reporting, there has been pressure on Congress to make the credit repositories more accountable for the accuracy of the information AND to divulge what goes into the scoring models. However, do not leave it to Congress to straighten out the pitfalls of errors on your personal credit report. You should check your report annually to insure that all the data is accurate.

Why is this important? The lending industry is moving toward "risk-based" pricing. In other words, the higher one's credit scores, the less paper they will have to provide to prove that they are creditworthy AND the interest rate and/or fees a borrower pays will be based on the level of their scores. The higher the score, the lower the rate, payment and many times the down payment. Does this mean that people with challenged credit should not apply? Not at all. No different than one of us lending a co-worker or family member a couple hundred bucks until payday, the lender simply wants to make sure they are protected. A loan may still be granted in this scenario by perhaps requiring more money towards the down payment or a slightly higher interest rate.

The truth is, it's a great reward for those who maintain impeccable credit and a goal for others. With this in mind everyone can take advantage of low interest rates.

Le'Andra Martin, Branch Manager with American Mortgage Specialists can be reached at 866-824-9549. She is dedicated to helping homeowners and investors maximize the investment in their homes.

---

How Your Credit History Can Affect Your Life

Your credit history is an important aspect of your life. Maintaining your credit rating is very important to your future and to your lifestyle. A poor credit... Read More

5 Surefire Ways To Eliminate Credit Card Debt

Do you have enormous credit card debt? You are certainly not alone. According to research, the average family in the United States has $7000 in credit card... Read More

Credit Cards - Why Prepay?

With prepaid credit cards, you get the practicality of plastic while choosing exactly how much debt to charge. By taking charge of your personal financing, you determine... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO score. FICO stands for Fair Isaacs Corporation. It's a company that developed the credit scoring software used... Read More

Credit Counseling Basics

Credit counseling is an option you might want to consider if you are having financial problems. The stress can be overwhelming when you have creditors calling you... Read More

New Credit Scoring Model Could Help Millions

Mark and Beth, a young married couple in their twenties, established a goal to buy a home within the first three years of their marriage before starting... Read More

SuperCharged Secret 4, Credit Card Utopia

YOU SCRATCH MY BACK, AND I'LL BUY SOME MORE BEER!Let's just take a brief moment to recap:If you've been following along on this journey with me, learning... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time but do you know what they are really all about? Well, if you have ever been turned... Read More

Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how do you know which one to choose? Here is a brief guide for choosing your low interest... Read More

How To Choose A Credit Card

Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest interest rate. Next... Read More

Important Things to Know About Divorce and Credit

Joint debts remain joint debts.Both spouses signed a legally binding contract with the creditor, and a divorce decree neither amends this contract nor relieves the creditor's investment... Read More

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let's face it, if you are facing the possibilities of losing your home due to a foreclosure and you think that you may never be able to... Read More

Tips for Choosing a Credit Card Company

Credit Cards are essential for any consumer today. However, when choosing a new credit card company, many people do not know what to look for. It is... Read More

Using Credit Cards Wisely

"I think money was stolen from my card" or "I might have blocked my card in the ATM" - these are frequent problems that bank customer-support officers... Read More

Watch Out For Credit Repairs

It is very easy to find a site that is neat, professional-looking, and one that offers a free three-agency credit report and free credit report without a... Read More

Tips For Getting Your First Credit Card

Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an individual's credit payment history. It is provided for a purpose permitted by law: to help a credit... Read More

How To Choose Your Credit Card Application

The articles and tips provided on this site are intended to help you access credit card offers that suit your lifestyle. By providing you with some basic... Read More

Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your... Read More

Finding the Right Credit Card

There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than... Read More

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access... Read More

Credit Cards and How To Choose Them:

It may seem like a simple question but its important to take into account a few factors when choosing your credit card. If you are in the... Read More

Ways to Look Good without Selling Your Soul to the Credit Card Sharks

1. Buy clothes at thrift stores. BEFORE you buy them, however, hold the clothing to the light to make sure there are no tears, check the seams... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment to the Fair Credit Reporting Act (FCRA) that Congress passed last year. This amendment allows U.S. citizens... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to your statement you find a "convenience check" included. It may already be filled out with a dollar... Read More