Terminology You Need to Know to Understand Your Credit Report

NEGATIVE CREDIT CAN COME WITH SERIOUS PROBLEMSYour credit report is a snapshot of your “consumer character” and as such, can have some pretty bad implications with the wrong information. Our lives for the most part revolve around the decisions we make and we are presented with those decisions daily, sometimes multiple times a day. Poor decisions, such as overspending or over extending yourself from a credit perspective can have a lasting effect on you and your ability to continue making similar decisions at a later date and time, sometimes, in the case of a bankruptcy, up to ten years. So to an extent, your credit report is direct reflection of the consumer freedom you will enjoy or with negative credit, it will be a direct reflection of your lack of freedom.Negative credit can affect you in many ways, from getting housing, a car loan, a job, and even security clearance. If you have been turned down for a mortgage, a car loan, an apartment, or a job because of your credit, you know from personal experience how a negative credit report can painfully impact your life. Unfortunately, there isn’t anything that can solve these problems quickly. However, there is a specific process and laws in effect that can help you to start fixing your credit. There are two ways to do this: 1) hire someone to do it for you, or 2) do it yourself and spend the time necessary figuring it out and preparing the necessary documents. When doing it yourself, you may want to seek the guidance of a professional to be sure you did it correctly.THE GOOD, THE BAD AND THE UGLYLet’s take a look at what’s good and what’s bad. First, let’s set the parameters to which we are evaluated. The FICO system, a system that summarizes your credit risk for lenders, produces a score between 300 and 850 and we all fall somewhere in that range. The interest rate you get when you apply for a loan will depend on this score and that can be worth thousands over the life of a loan.

Scenario #1, if you have not had any negative marks against your credit, and by negative we are referring to collections activity, late payments, tax liens, judgments, etc. in the last 24 months and no bankruptcy or foreclosure in the last five years with a credit score above 700, you have a good credit profile.

Scenario #2, if your credit score is below 630 and you have all or even some of the items mentioned above, you have a bad or less than favorable credit profile.

Scenario #3, if your score falls somewhere in the middle of the scores above and you have some of the items mentioned above, you have a mediocre credit profile.
In the credit scoring business, different scoring companies use different scoring models. They do this because credit isn’t just credit – there are mortgages, consumer credit, and revolving credit and installment loans. Scores will and should vary between the different scoring methods depending on the facts. On top of general negative items associated with your credit report, there are other variables to consider and they all have a different weight when calculating your score.

Payment History – 35%

Amounts Owed – 30%

Length of Credit History – 15%

Types of Credit in Use – 10%

New Credit – 10%
HOW TO READ YOUR CREDIT REPORTYour credit report contains a wealth of information about your financial activity. Although credit reports are not easiest reports to understand, the bureaus providing the reports have tried to make them as user-friendly as possible.Personal InformationThe first section of your report will cover basic information like your name, address, and place(s) of employment. This section is used to identify you as the reports owner. Most likely, previous addresses and places of employment will also be included.In this section, it’s not uncommon to have misspellings of your name or variations thereof. Because these misspellings and variations usually link you to a piece of credit, credit reporting agencies will usually leave these variations. It’s your job to ensure your personal information is identifying you and not someone else.Account HistoryThis section of your credit report contains the majority of the information about your credit. This section lists each of your accounts and details how you paid on each of them. Your account history will be extremely detailed and will most likely be the hardest section to read; however, it’s important you read through all of it to make sure the information is being reported accurately.As far as collection accounts, they may appear as part of the account history or in a separate section, usually labeled negative credit. Where it appears will depend on the company providing your credit report. Within the account history, there will be several pieces of sub-information.

Company name of the institution reporting the information.

Account number associated with the account. The account number may be scrambled or shortened for privacy purposes.

Type of account, i.e. revolving account, education loan, auto loan.

Terms of repayment. Installment loans include the number of payments. Revolving accounts may leave this section blank or as “revolving”.

Date opened. The month and year the account was established.

High credit is the highest amount ever charged on the credit card. For installment loans, high credit is the original loan amount.

Credit limit or loan amount.

Balance. The amount owed on the account at the time data was reported.

Past Due. Amount past due at the time the data was reported.

Account status. Indicates the status of the account, i.e. current, past due, charge-off. Even if your account is current, it might contain information about previous delinquencies.

Payment history. Indicates your monthly payment status since the time your account was established.

Date reported. The last time the data was updated by the creditor.
Public RecordsThis section will include information like bankruptcies, judgments, tax liens, state and country court records, and, in some states, overdue child support. Depending on the type of account, a public record may remain on your credit report between seven and ten years, ten years being reserved for bankruptcies. This section is a collection of the bigger mistakes, not criminal arrests or convictions but enough to severely damage your credit.Credit InquiriesThis section provides a detailed list all parties who have accessed your credit report within the past two years. While your version of the credit report lists several credit inquiries, not all of these appear on the lenders’ and creditors’ versions. Only “hard” inquiries are shown to lenders. These are inquiries made when a lender checks your credit report to approve your credit application. Your version will also include “soft” inquiries consisting of inquiries made by lenders for promotional purposes.Initially, if you need help, try your loan officer if you are applying for credit and see if they will take some time to explain it to you. Most of them will try to help as best they can, especially if you are trying to repair your credit because the loan officer would eventually benefit when he originates a loan for you. If you were not working with a loan officer and you are trying the DIY credit repair method, you might consider a free consultation with a credit repair company to learn the basics. They will assist you in understanding your credit report and should tell you some of the advantages and disadvantages of doing credit repair on your own or through a credit repair company.

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Tips, Tricks, And Advice On Auto Insurance

Don’t put yourself at risk of the financial burden by not having auto insurance for yourself or your teen drivers! Having auto insurance protects you and helps offset costs, should you be in a car accident. Use the following tips to pick the right auto insurance company to fit you or your teen driver’s needs.As you choose car insurance, be sure to properly protect yourself when it comes to liability for property damage and bodily injury. The right amount of coverage in this area can make a big difference in the event of an accident. Not having enough coverage can leave you with a lawsuit that can be hard to recover from.When insuring a teenage driver, lower your car insurance costs by asking about all the eligible discounts. Insurance companies generally have a discount for good students, teenage drivers with good driving records, and teenage drivers who have taken a defensive driving course. Discounts are also available if your teenager is only an occasional driver.When considering insurance for a young driver, it is wise to not purchase an expensive car. Rates are high enough for teenagers, they will skyrocket depending on the type and worth of a car. In this situation, safety is one of the highest factors affecting insurance costs.One of the best ways to drop your auto insurance rates is to show the insurance company that you are a safe, reliable driver. To do this, you should think about attending a safe-driving course. These courses are affordable, quick, and you could end up saving thousands of dollars over the life of your insurance policy.When shopping for an auto insurance policy, most companies are going to offer extras like towing, road-side assistance, GPS services, and other add-ons. These may come in handy if you’re ever in a pinch, but they can be really expensive. Say no to these extras in order to save money on your insurance.There are a lot of factors that determine the cost of your automobile insurance. Your age, sex, marital status and location all play a factor. While you can’t change most of those, and few people would move or get married to save money on car insurance, you can control the type of car you drive, which also plays a role. Choose cars with lots of safety options and anti-theft systems in place.Check into how much you would save by using the same insurer for both your home and your car. Some companies offer a discount if you have multiple policies with them. The majority of companies today do insure a variety of items, so it is a good idea to look into the possibility.To make sure you’re getting fair pricing in your premiums, verify that your reported information is accurate in your policy. For example, ensure that the make/model of your vehicle is correct, the number of miles on the vehicle when you took out the policy, etc. Even your reported commuting distance is important as shorter commuting distances can have a positive effect on your premium savings.You will want to make sure to contact your insurance company if you get a divorce and no longer want your ex to be on your policy. If they get into an accident while they are on your insurance policy, it could cause your rates to go up, and you will have to pay for their mistake for the rest of the time you have a policy with that company.When you purchase a new car, you should keep your insurance rates in mind and look for the best safety features you can get. Safer cars are cheaper to insure. Because insurance companies are responsible for medical liability, they will charge a lower premium for safe cars that minimize injuries in an accident.Know the laws in your state concerning auto insurance. In almost every state, car insurance is compulsory. You can face stiff fines and penalties for not carrying adequate car insurance. Some states are even known to jail repeat no-insurance violators. Educating yourself is important so that you can comply with the laws.When trying to decide on an insurance company for your auto insurance, you should check into the department of insurance from your state. You will find some valuable information there which will include closed insurance cases, important financial data as well as licensing information. This research will help you decide if you feel comfortable trusting this insurance company.Pay for your auto insurance coverage in one payment up front. When you pay in full you will not be charged interest charges as you would if you were paying monthly. This means some companies also offer you a discount if your coverage is paid for ahead of time. Monthly payments can be convenient, but they may not be as affordable as you would like.If you live in an urban area or an area where there are many wild animals, you may want to consider animal collision on your insurance. Repairing a car after you have hit an animal, especially a large one, can cost you thousands of dollars. Animal collision covers all of these costs.A big part of setting the cost for your auto insurance premiums has to do with the type of car that you drive. Remember that when you are in the market for a new car – cars that are more expensive to repair, for example, will often result in higher insurance rates.Ensure that your car insurance plan pays up front for car rentals. Drivers whose policies do not include rental coverage may wish to secure additional insurance for this purpose. The extra policy can be as much as $20 per day. If your car requires major repairs, you could be paying for quite a while.Don’t allow your teen or yourself to drive without auto insurance. Car accidents and car repairs can be incredibly expensive. Having auto insurance before something happens is important so you can protect you and your family from a financial struggle! Use the tips above to get auto insurance today!

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Current Health Articles: Health News Today You Should Know

Looking for the current health articles to read, but don’t have the time to read all the articles written in your health magazine? Then you might find the following health articles overview interesting;Current Health Articles:H1N1 Flue Deemed Non-Sensational!The seriousness of H1N1 Swine Flue wrapped the world in great terror during its debut outbreak. Today, health officials say that the outbreak of Swine Flu is not really considered as that devastating. The pandemic H1N1, personified by the media, was nothing more serious than previous seasonal flu viruses; this is also according to one research group who made an independent census on flu.Men More Likely to Suffer Memory LossAccording to a recent research, men are found to be much more susceptible to memory loss and mental impairments than women. The new research points out how gender greatly affects the mind and why it is less likely to be experience by women. This is because the male group have higher tendency to develop Mild Cognitive Impairment which can sometimes trigger Alzheimer’s disease. People who suffer from MCI also notice problems related to analytical ability and memory.Cheaper Treatment for HIV-infected KidsBecause of the pronounced costliness of HIV treatment, the options for HIV-infected children have become limited for the past decade. But thanks to the establishment of a new U.S National Institutes. Their funded study revealed a possible and cheaper means in treating children infected with HIV. Their discovery also includes the practical use of Nevirapine as an HIV drug in the treatment. Nevirapine is the most frequently turned to HIV drug that helps reduce the risk of HIV transmission to newborn babies.Hair Hormone Reveal Causing Heart RiskBecause there was no direct evidence that would link a chronic stress to heart attack, many researchers viewed it that way. Today, a recent study had revealed that an increased level of stress hormone called cortisol in the shaft of the hair can stimulate and improve the risk of heart attack. In this study, it was also discovered that cortisol level is a more important heart attack predictor than high blood, high cholesterol and smoking combined.For more current health articles, you can check the web for more info.

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