Items Needed:

Payment history 3.5 cups
Amounts Owed 3 cups
Length of credit history 1.5 cups
New Credit 1 cup
Types of credit used 1 cup continue reading “The Credit Repair Recipe” »

Credit scoring is confusing and broad: FICO, TransUnion, Experian, Equifax, etc. You’re probably thinking, which score counts? Avid readers of our blog have learned that the Fair Isaac Corporation actually uses the information found within your credit reports to calculate your FICO score. Known simply as a “credit score,” the FICO rating ranges between 300 to 850 points and measures your level of risk and ability to repay debt. FICO scores are widely used by creditors to approve or deny loan applications, lines of credit, mortgages, etc. While useful to lenders, many consumers criticize the scoring model, citing it as the only popular rating system, a monopoly with no competition. With the advent of the VantageScore, their criticisms have been heard.

continue reading “What is a VantageScore?” »

Relocating has its benefits—from finding a bigger home to moving across the country for a better job. On the other hand, the task of packing up your life is a big one. Inevitably, a few things are bound to slip through the cracks. Don’t count your credit score among these miscellaneous items. Protect your financial security by following the tips below. A fresh start requires strong credit.

• Cancel/Transfer Utility Services

Without proper attention, final bills can spell big trouble for your credit score. When cancelling utility services such as water, electric, cable, etc., be sure that your final charges are paid in full. An outstanding balance could lead to a late citation on your credit report, or worse, a collection account.

continue reading “Moving? Keep Your Credit Score in Tow” »

Obtaining a mortgage is no easy feat in today’s market. While sale prices are down, borrower qualifications have become more restrictive than ever thanks to the housing bubble and its effects on the economy. Banks have become weary of handing out home financing to any person with an open hand. While you may not fall into this category, a steady income and down payment are no longer the sole qualifiers that guarantee a mortgage. This discrepancy has left many would-be homebuyers in a frustrating limbo mode, asking, “Why can’t I buy a house?” –Fortunately, a few financial giants are working to fix the problem. In partnership with CoreLogic, the Fair Isaac Corporation (FICO) has created the FICO Mortgage Score, a new way to measure creditworthiness and mortgage qualifications.

continue reading “FICO Mortgage Score — What You Need to Know” »

If you follow our blog, you have undoubtedly learned that credit affects your ability to find reasonable car loans and insurance rates. Although this fact remains true, the advent of the Auto Insurance Score (AIS) has created a new level of creditworthiness for potential borrowers.

Like a traditional credit score, the AIS is graded on a scale to determine a borrower’s risk. While a traditional credit score ranges from 300-850, the AIS ranges from 150-950.

Why do we need another credit score?

continue reading “What is an Auto Credit Score?” »