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My Credit Score Goes Lower…when My Credit is Pulled! By:author Michael Malloy

November 11, 2011 | Author admin

My credit score goes lower..when my credit is pulled By Michael Malloy Does my credit score drop when my credit report is requested?

There are a number of misconceptions about how a credit score is determined and affected, including the idea that a person’s score automatically drops when a credit report is requested. The truth is that a credit score is determined by individual credit bureaus only after considering a laundry list of factors, such as payment history and the number of open accounts that a person has. The number of requests for a credit report, also known as inquiries, makes up only ten percent of the criteria for a credit score adjustment. Some credit experts say that credit scores can drop as much as five points when a credit report is requested, but others say this is more of a myth than reality.

“The credit report reads like a map, but the question is where is it leading you? Is it taking you down a path of rejections and denials, or is it leading you to a better quality of life – a new home, car, or college for your kids? Is it presenting the opportunity for a vacation or forming the foundation for a brand new business? Let’s get you on a GPS system for credit improvement and get you out of this mess once and for all!”

The Credit Physcian

There are two different types of credit report inquiries in the credit world: “soft” and “hard” inquiries. A soft credit inquiry occurs whenever a consumer requests his or her own credit card report from a bureau, or when a credit report is requested by a current creditor investigating a dispute. This type of credit inquiry is not supposed to have any effect on a consumer’s credit score since it was made at the request of the consumer himself or an established creditor. A hard inquiry, however, can lower a consumer’s credit score under certain conditions. A hard inquiry occurs when a credit report is requested by a lender considering a new loan or other parties who may have judgments or liens against the consumer. For example, when a credit report is requested by a court or the IRS, a potential lender may be more reluctant to offer the best interest rate or the maximum loan amount. Credit bureaus do understand that a number of hard inquiries connected with housing or car loan applications are not unusual, so when a credit report is requested by more than one lending company for the same purpose within days of each other, it is often counted as only one hard inquiry on the credit report.

Whenever an invitation for an unsolicited credit card arrives in the mail, there is always the possibility that the sender did make an inquiry into the consumer’s credit status. Fortunately, when a credit report is requested by an outside interest without the consent of the consumer, the inquiry is not usually counted against the consumer’s credit score. Inquiries are supposed to remain on a consumer’s credit report for up to two years, although many lenders are primarily interested in the number of inquiries made in the last six months. Applying for too many credit cards or store accounts in a short period of time can make a consumer look desperate in the eyes of lenders, especially if many of those requests have been turned down.

In short, when a credit report is requested by the consumer himself or in response to an existing situation with a creditor, there should be little to no effect on credit scores. If there are too many inquiries in a short amount of time, the credit bureau may see that as a negative and lower the consumer’s credit score several points. This adjustment may have little effect on a consumer’s ability to secure a loan or open a new account, but if the adjusted score falls below 600, the result could be higher interest rates or a lower line of available credit.

Posted in Credit | Tags: Author Michael, Byauthor, Credit, Credit Bureaus, Credit Experts, Credit Improvement, Credit Inquiry, Credit Report Inquiries, Credit Score, Credit Scores, Creditor, Denials, Five Points, Goes, Gps System, Home Car, Laundry List, Lower...when, Malloy, Michael, Misconceptions, New Business, Open Accounts, Payment History, Pulled, Quality Of Life, Rejections, Score | No Comments »

Money Saving Home Insurance Tips – Part Two

October 29, 2011 | Author admin

There are many ways to save money with your home insurance and it is worth exploring every option out there. Home insurance is a good place to look for savings because you’re most likely required by your mortgage lender to carry homeowners insurance on your house and home insurance costs can vary widely.

The single best way to save money with home insurance is to shop around. Take the time to compare home insurance quotes because rates between each company offering home insurance can differ by hundreds of dollars. Take the time to get at least three quotes, and because home insurance comes in many flavors make certain you comparing apples-to-apples with the different policies.

Here are five additional tips for saving money with your home insurance.

1. Did you know most insurance providers offer home insurance discounts for policy holders who are 55 or older and retired? This discount can save you significant money on your home insurance, possibly up to 25 percent. If you fit the bill be sure to get in contact with your home insurance provider to see if you qualify. Senior home insurance discounts differ depending on your state, your home insurance provider, your age and the type of the insured home.

2. Did you know your credit rating can affect your home insurance rate? It can be depending on the rules in your state, so work toward maintaining a clean credit rating. Also check with your home insurance provider to find out just how much your credit score factors into your home insurance rate.

3. Bundling your home insurance with your auto insurance or other types of insurance will almost always provide a discount on your entire insurance package. Even if you find home insurance from a different provider than your auto insurance that is less expensive than a bundled package, make sure you look into the extra benefits you may be offered when buying home insurance and auto insurance from the same insurance provider. Very often you will be offered more than a simple discount when buying all your insurance from one provider.

4. Getting a home security system can provide home insurance savings. The amount of savings will differ among different home insurance providers, but often you can save up to 15 percent on your home insurance by installing a home security system. Other safety devices that can offer home insurance savings include smoke detectors, fire alarms, dead bolts and fire extinguishers.

5. Does your roof need replacing? Even if doesn’t it might be worth it to replace your roof for home insurance savings. Depending on your state and your insurance provider, installing a higher-quality roof can reduce your home insurance.

Posted in Insurance | Tags: Apples To Apples, Auto Insurance, Best Way To Save Money, Credit Rating, Credit Score, Flavors, Home, Home Insurance Rate, Home Insurance Tips, Homeowners Insurance, Insurance, Insurance Costs, Insurance Discounts, Insurance Package, Insurance Provider, Insurance Providers, Insurance Quotes, Money, Mortgage Lender, Part, Saving, Score Factors, Tips, Tips For Saving Money, Types Of Insurance, Ways To Save Money | No Comments »

Things You do to Drop Your Credit Score !

October 14, 2011 | Author admin

Credit Score Mistakes ” common things to watch for

Follow these tips to avoid the common traps that can sink your credit risk rating:

Debts and credit you don’t use.

It is easy today to apply for a store credit card that you forget all about in three years – but that account will remain on your credit report and affect your credit score as long as it is open. Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit.

Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it – resulting in a lowered credit score. Keep only your used accounts and make sure that all other accounts are closed. Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.

However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while. In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.

For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000). This will actually cause your credit risk rating to drop. In the long term, though, not having extra temptation to charge and not having credit you don’t need can work for you.

” The credit physician says to look at your credit report every month,the most common error people make is not checking there report for mistakes and new items,like collections and charge offs,this will effect your score in a very negative way,and can drop that score very fast and can set you back months even years,if your not keeping your eyes on your credit report.”

Inquiries on your credit report.

Every time that someone looks at your credit report, the inquiry is noted. If you have a lot of inquiries on your report, it may appear that you are shopping for several loans at once – or that you have been rejected by lenders. Both make you appear a poor credit risk and may affect your credit score. This means that you should be careful about who looks at your credit report. If you are shopping for a loan, shop around within a short period of time, since inquiries made within a few days of each other will generally be lumped together and counted as one inquiry.

You can also cut down on the number of inquiries on your account by approaching lenders you have already researched and may be interested in doing business with – by researching first and approaching second you will likely have only a few lenders accessing your credit report at the same time, which can help save your credit score.

Online loan rate comparisons.

Online loan rate quotes are easy to get – type in some personal information and you can get a quote on your car loan, personal loan, student loan, or mortgage in seconds. This is free and convenient, leading many people to compare several companies at once in order to make sure that they get the best deal possible.

The problem is that since online quotes are a fairly recent phenomenon, credit bureaus count each such quote estimate as an “inquiry.” This means that if you compare too many companies online by asking for quotes, your credit score will fall due to too many “inquiries.”

This does not mean that you shouldn’t seek online quotes for loans – not at all. In fact, online loan quotes are a great resource that can help you get the very best rates on your next loan. What this information does mean, however, is that you should research companies and narrow down possible lenders to just a few before making inquiries. This will help ensure that the number of inquires on your credit report is small – and your credit rating will remain in good shape.

Thinking that you only have one credit report.

Most people speak of having a “credit score” when in fact most people have at least three or more scores – and these scores can vary widely. There are three major credit bureaus in the country that develop credit reports and calculate credit scores. There are also a number of smaller credit bureau companies.

Plus, some larger lenders calculate their own credit risk scores based on information in your credit report. When repairing your credit score, then, you should not focus on one number – at the very least, you need to contact the three major credit bureaus and work on repairing the three credit scores separately.

Written by: Michael Malloy The Credit Physician
” empowering you to take control of your credit”

Posted in Credit | Tags: Account Base, Charge Offs, Close Account, Collections, Credit, Credit Accounts, Credit Cards, Credit Rating, Credit Report, Credit Risk, Credit Score, Debts, Drop, Extra, Odds, Risk Rating, Score, Store Credit Card, Temptation, Things, Traps, Unused Accounts, Unused Credit | No Comments »

Benefits Of Checking Credit Report For Free

September 16, 2011 | Author admin

The importance of securing a copy of your credit report since it will enable you to check your credit history and correct any false information that might be contained in it, thus helping to improve your credit status. However, there is a way for you to check credit reports free to obtain a complete record of your financial history. The ability to maintain good credit standing for free is indeed a great advantage that every consumer need to maximize use of.

Although there are credit bureaus that charge their customers for being able to access their credit records and full report, you can also avail of these services for free. One way for you to do so is avail of a free trial version that enable you to go through free credit report check during a given period of time. If you are worried whether you can get only a limited amount of information from free credit report services, it is not true at all. In fact, you can obtain the same amount of information as any methods of acquiring your credit report.

Given that you are obtaining a copy of your credit report in an effort to improve your credit status and correcting financial information, there is no point in spending additional money in order to gain such record of information. After all, it will provide you with the credit score and learn about how you can improve your financial standing.

The free credit report check will enable you to understand any pattern in your credit history, spending habits, and overall financial behavior . But you need not focus solely on the credit information, but you must also correct identity information since it will be just as important in your credit report as well.

Now question arises how to check credit report free or how to obtain free credit report check facility. Nothing is impossible in the era of Internet. First of all, you need to open search engine like google or yahoo or any other search engine. Then place search phrase like check credit report free, free credit check report and free credit report check.You can search for free trial versions that enable you to obtain your credit report for free such that you can save money. But you need to choose carefully such services to ensure the credibility of the information that they offer. In addition to the validity of information, you must be extra careful since you will be required to provide detailed personal information when accessing your credit report and you would not want to give away such vital information to unreliable individuals or agencies.

The real benefit of free credit report check is to accessing your credit report for without spending dime and you can utilize the information it contains to the fullest. Take time to study the information and evaluate your spending habits. Then, commit into correcting any unpleasant habits you might have that is detrimental to your credit status. Some of the basic steps you can take to improve your financial status is to pay your bills on time, maintain your credit card balance as low as possible, avoid using your credit card or filing for loans unless absolutely necessary, and regularly check your credit report to correct any inaccuracies in your report.

Many people check credit report free one doesn’t need to hesitate.The ability to obtain a copy of your credit report for free gives you strategic advantage in ensuring all information in your credit history are correct. That way, you can improve your financial standing without causing you more debt.

Posted in Credit | Tags: Benefits, Checking, Cr, Credit, Credit Bureaus, Credit History, Credit Information, Credit Report Check, Credit Report Services, Credit Reports, Credit Score, False Information, Financial Behavior, Financial History, Financial Information, Free, Free Credit Report, Free Trial Version, Google, How To Obtain Free Credit Report, Other Search Engine, Period Of Time, Report, Search Phrase, Spending Habits | No Comments »

How Can Credit Cards Hurt Me?

August 19, 2011 | Author admin

I’ll start off by explaining just how credit cards work. Whenever you make a purchase with a credit card you are borrowing and spending the credit card company’s money. For your credit card you are allotted a total amount to spend. Depending on your credit history, income and ability to pay it can range from $100 and over $100,000. The credit card company will tally up your spending’s and add that to your total balance. Each 20-30 days you will be required to pay back a certain amount of that total along with interest. If you are able to pay the amount in full you may do so but they will set a minimum amount for you to pay. When the balance isn’t fully paid, the interest rate set for the card will be then applied to that amount and added to the total balance. The interest rate set for each credit card will vary for each person. Before credit card companies approve the card they will look at one’s credit score, employment, income, ability to make payments, etc. There are times when credit card companies are releasing a new credit card along with a very good interest rate as a promotion.

People can’t go shopping without their cards. One of the more handy ways to shop is with your credit card. Whenever people dine or shop credit cards are becoming the payment method of choice. Credit cards are easy, common and convenient to use, they fit inside of your wallet and can go anywhere you can go. With today’s fast paced world of spending no one should leave home without their credit card. Today I am going to tell you some of the many pros and cons of credit card use and how to go about getting a great credit card with a low interest rate.

Check Credit Card APR (look for 0 Credit Card APR)

Now that you know what a credit card is and how they work you should know some of the benefits of having a credit card. Credit cards can come in handy in a bind. There are times when you have run out of money. Carrying credit cards takes the worry off of not having cash at that minute. You can withdraw cash from an ATM and most stores anywhere accept all kinds of credit cards.

Having a credit card really frees up a lot of hassle and makes life so convenient but make sure to only use your credit card when necessary and not swipe on impulse. Credit cards can be very dangerous to those who do not have much experience or are not so creditworthy. Take the advice to heart and apply it towards the attainment of your next or 1st credit card. Be responsible and spend wisely.

Do not fall trap to racking up payments from having high credit card debt. First, look for 0 credit card interest rates and keep track of how much you spend daily, weekly and monthly. As I said before, different credit card companies offer different interest rates based on certain factors. The key factor in helping credit card companies determine your annual percentage rate for your card is the history of your credit. If your credit record has several late payments they will not even issue you a credit card or set the highest interest rate if you were to receive one. On the other hand if you have always paid on time and never missed a payment your credit history is blemish free and you will be rewarded with not only an approval for a credit card but the lowest annual percentage rate that they allow. Also take the time to compare credit cards because some issuers may be more lenient than other issuers when looking at your credit history. Low APR credit card rates are presented to you on these sites for you to go over in detail. Before choosing a credit card to apply for you also can check your credit report and score at the credit card comparison sites as well.

No matter how convenient swiping credit cards are there are drawbacks to having them. Using credit cards can be good and bad. They may buy you some time with large rush purchases, but let’s say that after you bought a new computer you never got around to paying the credit company back. Interest amounts on top of the required payment can really add up over a short amount of time. By making the minimum required payment every time it could take years to pay off the entire amount if you don’t spend any more.

Posted in Credit | Tags: Bind, Cards, Check Credit Card, Credit, Credit Card Companies, Credit Card Company, Credit Card Credit, Credit Cards, Credit History, Credit Score, Employment Income, Handy, Hurt, Interest Rate, Method Of Choice, Money Card, New Credit, People, Pros And Cons, Rate Check, Shopping Cards, Wallet, Worry | No Comments »

What Are The Pros And Cons of a Mortgage Refinance Loan

August 8, 2011 | Author admin

When you refinance your mortgage you are replacing it with a new mortgage loan. As with most things, a refinance mortgage loan offers pros and cons, benefits and drawbacks.While there are many pros to refinancing your loan, you will probably be considering refinancing because you will save money by refinancing into a lower rate mortgage loan.

Since there is a lengthy application for a mortgage refinance (just like the one you went through for your original mortgage) you need to balance the pros and cons to make an informed decision if mortgage refinancing is right for you.

Because of this application and the fees involved, you have to carefully decide if you really want to go through everything associated with a mortgage refinance.

There are many possible pros and reasons why you may want to refinance your existing home loan into a new loan.

What are the Pros of Mortgage Refinancing?

Refinance into a low rate mortgage loan. Interest rates for mortgage loans are always changing and so interest rates may one day be much lower than the rates you are locked into with your mortgage you already possess. The interest rate is a major factor in the dollar amount of your loan and the length of the life of the loan.
If you are locked into an ARM (Adjustable Rate Mortgage) loan and you know that the interest rates are going to rise you can refinance your loan to a low rate, non-adjustable interest rate.
Avoid paying a higher rate if you have an Adjustable Rate Mortgage and you know that interest rates are going to rise
If you want to build equity as fast as possible you can refinance your loan into a mortgage loan with higher monthly payments and a shorter loan life.
Raise money for your own use. You can make home improvements (which will increase the value of your home), you can buy a needed car, you can start a business or raise funds for your business, or take a trip with your family.

If you previously had a bad credit score and you couldn’t qualify for a mortgage home loan with a decent interest rate and you have now worked to improve your credit it is possible for you to get a better interest rate on a loan.

As with everything, there are also drawbacks to refinancing your mortgage so you need to take them into consideration and balance the pros and cons of everything involved when it comes to mortgage refinance.

What are the cons of a Refinancing Mortgage Loan?

You will lose the seniority of your mortgage. As your mortgage ages, more and more of your monthly payment is applied to building equity; at the beginning of your mortgage, your mortgage payments are paying off interest and not building you as much equity. If you refinance your mortgage you will lose any seniority years you gained towards your mortgage payment going to building equity and not paying off interest, and you will have to start all over again, with more of your payment going towards interest and not equity.
If you’ve had a mortgage for a long time, you should probably not refinance your home’s mortgage loan. As your mortgage ages more and more of your payment goes towards building equity in your property. If you refinance you will start all over again with your mortgage loan and more of your payment will go towards paying interest again.
The costs and headaches of refinancing a mortgage may not outweigh the savings you will achieve if you know or think you may be moving in the next few years.
You may have to pay fees and penalties to cancel your existing mortgage loan. However, if you are refinancing with the same lender you may be able to get these fees waived or heavily reduced.

If after weighing all the benefits and drawbacks to a mortgage loan refinancing option you decide a mortgage refinance is for you then please visit us (links below) for more information.

Posted in Mortgage | Tags: Adjustable Interest Rate, Adjustable Rate Mortgage, Adjustable Rate Mortgage Loan, Arm Adjustable Rate Mortgage, Cons, Credit Score, Existing Home, Home Improvements, Lengthy Application, Loan, Loan Interest Rates, Low Rate Mortgage, Mortgage, Mortgage Loan Interest Rates, Mortgage Loans, Mortgage Rates, Mortgage Refinance, Mortgage Refinancing, New Mortgage, Original Mortgage, Pros, Pros And Cons, Refinance, Refinance Mortgage, Refinancing Mortgage | No Comments »