Credit

5 Reasons Credit Cards Make Financial Sense

It’s easy to vilify credit cards as a means of racking up huge amounts of debt. Whilst it’s definitely true that UK consumers are often heavily indebted to their cards, they can still be useful tools to protect your finances and manage cash flow:

They Protect Your Cash

Fraudulent transactions and identity theft are rampant in this electronic age. Using a credit card to make online transactions makes a lot of financial sense: If the website is fraudulent, or your details are stolen and used to make a transaction, you’ll almost certainly be covered for anything coming out of your account. The same thing isn’t true with a bank debit card, and certainly not any kind of money order or cash payment.

Likewise, if a company goes bankrupt before you’ve received your goods, you should be covered. As long as you quickly pay off the purchase, it makes sense to use a credit card for most online and distance purchases.

iStock_000004652423Small-280x0They’re Convenient

So long as your credit card is part of a sound financial plan, and you’ve budgeted properly, it makes sense to use it instead of carrying vast amounts of cash. If you’re faced with an ATM outage, a credit card might well be the only way of paying for goods and services. It makes sense to have one for backup if nothing else.

They’re Great For The Traveller

These days, credit cards are the number one way of carrying money to overseas destinations. The same reasons that make credit cards a safe way to pay for goods and services at home make even more sense on holiday where you can’t always be sure about the security of an ATM or the honesty of a shop owner. Credit cards also mean that you don’t have to worry about carrying vast sums of foreign currency with you either. The exchange rate is often more favourable than an exchange service at home.

They’re Good For Your Credit Rating

If you have a credit card, or even several, and always pay them back on time, it can be a good way of demonstrating your financial stability. Often, a lending company is more willing to give a loan or mortgage to an individual that has a credit history but makes timely repayments, than one with no credit history at all. Lenders keep detailed records about your credit limit as well as what you’ve repaid and when, so a clean credit card history is a great way of improving your score. Remember though: despite what you might have read in a credit cleaner review, it’s very difficult, if not impossible to remove a bad credit record, so make sure you make prompt repayments

They Come With Some Useful Extras

Credit cards often come with a useful interest free period on both balance transfers and purchases, so they can be used as an effective way of managing debt, as long as that’s part of a properly planned budget. In addition, many cards often come with some enticing bonus offers that give you things like air miles, money off vouchers and even entrance into the business class lounges of airports. Shop around, and you could save a substantial amount of money just by using your card.

Proceed With Caution

Credit cards can be a great way to not only manage your finances, but also to protect them. Just make sure your credit card use is part of a sound financial budget.

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By Harry Price

Harry Price returned to his love for writing after leaving his job as an interior designer. He is enjoying his new entrepreneur life and the freedom it gives for him to travel and move around the world.


Priority Boarding Promises: They’re not what you think

Priority boarding on planes is becoming the new normal. Sometimes it seems as if you’re the only person who doesn’t have some sort of priority when you fly, and you’re stuck with no room for your bag when it’s your turn to get on. Many airlines don’t allow families with small children to board first anymore, so this becomes an even bigger problem.

Want to know why?

It’s not because everyone else is flying a lot more than you, or paying a lot more than you.

It’s because of the credit cards in their wallet.

Over the last three years most of the major airlines have added priority boarding as a benefit for their travel credit cards. But what they mean when they say ‘priority’ rarely means you’re the first to get on the plane.

It can just mean you’re not the very last to board.

How-Travel-Agencies-Can-Manage-Credit-Card-RiskTake Delta for example. It started the priority boarding charge by offering ‘Zone 1’ boarding for all Delta SkyMiles credit card holders. Sounds cool right? Just for holding a credit card that already earns you miles and gives you a free checked bag, you get to board first.

Not quite. ‘Zone 1’ is actually the THIRD zone to board Delta flights. You board after First Class, then after its most frequent flyers. So basically if you don’t have ‘Zone 1’ priority you’re almost last to board. Shouldn’t ‘Zone 1’ be FIRST?

United is a little better. With United credit cards like the MileagePlus Explorer Card you get ‘Group 2’ boarding, which is the second group to board, and puts you in company with some of its most frequent fliers – people who travel 50,000 or more miles a year.  That might be worth the $95 annual fee on the card.

American Airlines is just as confusing as Delta. With American Advantage credit cards you get to board with ‘Group 1’ but that’s really the third group, behind first class and very frequent fliers.

It’s merging with US Airways who is a little more honest. If you hold its US Airways MasterCard you get to board in ‘Group 2,’ which truly is the second group of passengers to board. But don’t expect that to last through the merger.

Of course there is always Southwest. But a Southwest Rapid Rewards credit card won’t do you any good with priority boarding because it doesn’t offer that feature. Though do you really need priority boarding on Southwest? Your bags fly free with them, so you don’t have as many people clamoring to carry bags on board. But if you really want to board early, just pay for ‘Early Bird Check-In’ when it matters to you. For a small fee you’re generally somewhere in the ‘A’ boarding group, putting you well ahead of most people on the plane. JetBlue also lets you buy early boarding, but only as part of buying an ‘Even More Space’ seat closer to the front that has extra legroom.

Which can be good peace of mind if you’re trying to get your family settled.


Raise Your Credit Score Fast -Add 100 Points By 18 Months!

Today let’s focus on the best ways to increase your credit score. Without wasting time lets jump right into it.

1. Improve the “Utilization Rate” on your Credit Cards and Unsecured Loans. Then continue to use your credit cards, pay them off in full each month and consistently increase your credit limits.

Your credit score will increase as you reduce the balances on your credit cards.  Your credit score is based on a number of different factors, but one of the most important aspects of your credit score is the utilization rate factor. In other words, how much of your credit limit are you using on each of your credit cards?

It is a best practice rule to use no more than 30% of your credit limit.  If you use more than 30% of your credit limit on any one of your cards, that could lower your credit score. An example would be if you had a $10,000 limit on one of your credit cards, you would want to always keep the balance on that card below $3,000.

After paying each of your credit cards off in full, now you must continue to use them, but only charge what you can afford to pay off when the bill arrives.

Don’t leave any balance on your credit cards. This will also save you money in interest!

After practicing this perfect payment pattern for 9 months straight, it is now time to ask that your creditors raise your credit limit by 20% of whatever it is now.

 

Example:

If you have a $10,000 credit limit today, after 9 months of using your cards and paying the bill off in full each month, ask that the bank increase your limit to $12,000. Your long-term goal should be to have high credit limits on all of your accounts.

2. Eliminate debt collection marks that are showing up on your credit report.

This next tip will clear 50% of your debt collection marks that are over 2 years old. So if you have more than 10 old collection marks on your credit report, this will get rid of at least 5 of them right away. A professional debt relief company can assist you with any remaining debts that you are unable to clear up on your own.

Here is how you eliminate debts or remove them from your credit report on your own.

Get your free credit report. For less than $10 you can get a membership at freecreditreport.com. Review your credit report and score there.

Anything negative on your credit report that is more than 2 years old, simply dispute. With freecreditreport.com they give you the ability to dispute marks on your own. Just go to the membership section and click on where it says “dispute center”. Select the reason that best fits your situation, in regards to why you are disputing the mark, and then click submit! Like magic, you will notice that most of the old marks that you have remaining on your credit report, disappear after disputing them.

After you dispute the mark, now the debt collection company has only 30 days to verify and validate that the debt is yours. Most of the time if you have a debt collection mark on your credit report that is more than 2 years old, the debt collection agency who owns that account, will no longer have all the documentation necessary to prove the debt is yours.

If they cannot prove that the debt is yours, then it cannot stay on your credit report, according to the Fair Credit Reporting Act.

3. Ask your mom, dad, husband, brother, friend or anyone that trusts you, to add you to their best credit card as a favor. What you will be doing is piggy backing on their perfect payment history, and this will raise your credit score fast!

Make sure that they add you as a “joint user”. This way you will be credited for their perfect payment history. Sometimes if you get added as only an authorized user, they will not report the payment history. Obviously make sure that you trust this person, and make sure that whatever card they add you to, has less than 30% of the credit limit used. This means that if they have a $10,000 credit limit, and a $5,000 balance, don’t get added to that card.

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Paul Paquin is the CEO at Golden Financial Services, a credit card debt relief company.


Secrets Behind the Best Student Credit Cards

It’s really overwhelming task to find the best student credit cards – particularly if you are a student with no credit card encounter at all. There are a few factors the finest generally have in common, when searching for the best student credit cards. Below are the top ten key factors to look for:

Reasonable Interest Rates

The businesses that offer the most effective student credit cards strongly comprehend that a student is not planning to have a long-established history of credit, & they aren’t going to punish you due to it. An excellent student credit card will offer an acceptable interest rate (15% or less), no matter of this fact.

Rational Grace Periods

It is the period of time from when your bank cards billing report closes to while the transaction is due. However, during recent times, some creditors have applied the less-than-moral practice of all but removing the grace interval. Some customers have even claimed receiving their bank cards statement days after the transaction was due! The ideal student credit cards will provide a grace period of minimum 20 days.

Forego the Temptation

Prolonged-time credit card consumers know all properly that their monthly bank card statements also get there with offers for exclusive deals & purchases (including exciting collectibles or magazine subscriptions). The ideal student credit cards won’t saturate you with frivolous impulsive buy offers.

Pay for What?

Several student credit cards need a processing and/or application fee. Nevertheless, the credit cards which need these are never the ideal student bank credit cards accessible. The credit cards keep charges to a minimum & generally only charge fees for delayed payments and/or over transaction limit are the best student credit cards.

Online Account Management

Another factor is an online account management in common for the best credit cards. With internet account control, you can check your borrowing limit, make transactions & keep track on your paying right from your room.

Smart Credit Limits

Whether you understand it or not, you don’t require a $5,000 limit of credit while you are in higher education. Keep in mind, student credit cards ought not to be utilized to finance your university education — that is what student loans are for. Some region, credit for purchases that are considering investment isn’t grouped as customer credit, & thus loans for financial commitment aren’t types of consumer credit. Student credit cards should actually be kept for urgent purposes. The ideal student credit cards provide smart credit boundaries (less than $1,000) & will have a limit of 1 card for one student.

The rewards aren’t only for Adults

Rewards bank credit cards are not only for dad & mom. Students are also qualified. A few of the student credit cards provide rewards, including points which can be used for reward certificates or even money back. Just keep in mind, student credit cards which do offer gifts generally also have a greater interest level.

Don’t Ignore the Credit Union

A few of the student credit cards can be discovered on college credit unions. Several college credit unions provide credit cards with quite competitive interest levels & other student advantages. If you’ve not executed so yet, look at your collage credit union to find out what they’ve to offer.

Nurturing Credit History

The finest student credit cards will review all installments made on the card to the 3 credit agencies. Pre-paid student cards don’t do this, that is why they are not truly good for developing your credit score, nor are they effective for educating you about how rotating credit works.

They Really Are Student Credit rating Cards

The ideal student credit cards actually are just what they claim they’re -student credit cards. A few cards to promote themselves as being student bank credit cards when, actually, they concern students the identical credit cards they concern everyone else. Due to the fact students have distinctive financial circumstances & demands; you require applying for a student card which is what it states it is.

Keep in mind, even though the earth of student credit cards can be complicated & finding the ideal student credit cards can appear like a overwhelming task, these 10 precious tips help you to get a sound & stable credit card. If you want to more about credit, credit cards and want to take guidance contact Your Personal Financial Mentor. This will obviously help you and provide an effective solution.

 


How Your Credit Score Is Determined

credit scoreLike income taxes and 401Ks, credit scores can be mysteriously difficult to understand. With the overwhelming majority of the population being affected by them, one would hope there would be a simple method for individuals and families to calculate their own scores. Of course, the same could be said for taxes and retirement plans, but we know how that story goes…

Although the specific calculations are convoluted, and typically hidden from the public, the commonly accepted and standardized scores used by lenders are made up of five primary factors listed below, in order of highest percentage of impact to lowest:

35%:  History of Payment

If there is one question lenders want answered, that question is: Will payments be made on time, and in full? Above all else, this single fact determines worthiness and reliability in lending. More than how much money is in an account, more than how much income a household makes in a year, this is the key: if a history of paying the proper amounts on time can be shown, the most important base has been covered.

Although an occasional late payment is a rather common accident amongst American families, credit scores don’t react nearly as badly to one late payment as it does consecutive or patterned late or non-payments. Do not panic if a single payment was accidentally missed; the scores looks for repetition.

30%:  Amounts Owed

This factor can be initially misleading, in that people tend to assume that the higher amount one owes, the lower their score must automatically drop. However, there is a critical difference to be made: the significant amount is the ratio of available credit that is being used. Simply put, the lower the percentage of available credit, the lower the score.

The reason creditors care more about percentages and ratios than raw amounts is that when an individual is using a large percentage of their available credit, they are considered financially over-extended, and carry a higher risk of not paying on time. Again, paying on time and in full is so important, that not only is payment history the strongest credit score factor, but the next strongest is simply trying to show lenders if people will pay on time in the future.

15%:  Length of Credit History

Another factor that is commonly misinterpreted, having a longer credit history does not necessarily translate to a higher score. If poor credit is shown over a long period of time, that will have a proportionately negative effect on a score as having good credit for the same length of time would yield a positive effect.

Yes, lenders are certainly more leery of rookie or inexperienced credit users, but a score is not automatically low just because an individual or family is new to credit. In fact, only a few months of reliable credit payments actually yield quite a high score, but to get a score to prime levels, it does require good behavior shown over a longer duration.

10%:  Types of Credit

With the wide variety of credit cards, loans, installments (monthly payments), mortgages, and other types of credit available, more is not always better. Results seem to show that the two most noteworthy conclusions to draw from this section are 1) lenders prefer users who have managed credit cards properly, to those who have not managed them at all (meaning using a card is probably worth your while), but 2) do not open a credit card or other form of credit unless you intend to use it.

Paying monthly installments, a mortgage if one is in use, and a responsible credit card is more than enough to boost this portion of the credit score.

10%:  New Credit

The myth that simply opening a line of credit will drop your credit has been exposed; this is simply not the case. However, a dangerous red flag to lenders is when a household opens up multiple forms of credit in a very short amount of time, particularly if that household is not already an established, trusted credit user. When getting started, avoid rapidly opening multiple accounts.

Written by Clif, a freelance writer for SereniCare Corporate Marketing, a Phoenix-area franchise opportunist. For further questions about credit scores, you can find more in-depth explanations at myfico.com. I hope this post was an enjoyable and worthwhile read for you.


Eliminating Credit Card Debt: How to Do It Smartly?

 

While a good credit score and a strong financial history is what everybody, under the sun, loves to have, it is all the more important to put yourself in a solid financial position in a scenario of economic uncertainty. And one of the most effective ways to do that is to reduce your credit card debt as soon as possible. While some of the people still don’t have credit cards, those who have typically carry a balance. And an organized, disciplined approach can definitely help you out in getting rid of the credit card debt no matter if your balance is $3,000 or $30,000. Here are some of the most effective tips that will help you reduce your credit card debts easily

  • Consider your financial condition – Before you plan anything for reducing the debts, it is important to know where you stand and what exactly is your financial condition. It is simply impossible to hit your target unless you know exactly where it is. For instance, you might think that you have got a debt of $9,000, while in reality you may have a debt of $11,000 or $14,000. Hence, it is advisable to check out your standings thoroughly and be perfectly honest to yourself. Take out all the cards you have, note down the debt and the interest rate and then, make a plan about paying them off gradually.Credit_Card
  • Track your costs – Check out how much you spend on all your regular and committed expenses like utilities, mortgage, car payments, insurance, phone bills, minimum credit card payments, cable connection, gym memberships etc. Next, track what are the variable expenses like entertainment, restaurant meals, travel etc. This will act as a foundation to the budget that you have to create. Take the credit card bills and the bank statements of the last year to get an accurate view of your monthly spending and make it a point to keep track of each and every expense that you will make, using a notebook or financial software.
  • Improve the interest rates – One of the quickest ways to save large amounts for your credit card bills is to negotiate and manage a lower interest rates. If it is possible to shave off even one or two percent on the rate, it will help you save hundreds and thousands while paying off the debt. You never know, may be a simple phone call and some polite requests will do your job absolutely. Even though your credit score plays a significant role in determining if you get a rate cut or not, it is not the only factor, because every lender treats this issue personally and therefore, you should definitely give it a try.
  • Create a budget – Now this is what you need to do most carefully. The central key to do this job successfully is to be absolutely realistic and check out what are the sacrifices that you can make. Consider the services that you can cut back immediately and plan the expenses accordingly.

Follow These Tips To Avoid Credit Card Scams

It is a well known fact that the credit cards that we use every now and then for paying off the bills or purchasing something, is always at a risk for theft. But stopping using your cards is not a practical solution, right? So what you can do is to become more cautious and protective while using your credit cards. In this post, I will share some effective tips to help you with in protecting your credit cards.Credit Card Trap, Predatory Lending

  • Keep your credit cards safe – Make sure that your cards are kept in a purse or wallet and closely attached with your body so that it can’t be snatched away easily. If you are shopping in a crowded area use a small purse and keep only those one or two cards that you’ll be using on that day. Avoid taking all the cards whenever you go out of the house. Make sure that you are taking back your credit card before leaving the store.
  • Avoid signing blank credit card receipts – This is important to avoid credit card frauds. Verify the amount on the card before signing the receipt. If you get a receipt that have blank spaces on it put $0 or draw a line through it before signing the receipt. Or else, the cashier gets a chance to put any amount in that blank space and send that purchase to your credit card company.
  • Shred any spare documents that have your credit card number on it – Most often we tend to toss away the billing statements directly into the trash. This is very risky as the scammers can easily get your credit card number. Make sure that you tear it up, and also consider putting the shredded pieces in different trash cans to ensure added security.
  • Be safe while using your credit card online – Don’t give away your credit card information to any sites without checking their safety and reliability issues. Avoid clicking on email links pretending to be your credit card company, bank or any other business that uses your personal information. Most often these links turn out to be phishing scams and the scammers want you to log in into their fake website to get all your personal information. Make sure that you are providing the credit card information only on those sites that you consider to be legitimate and reliable enough. To check if a website is secured or not look for the ‘lock’ sign in the lower right corner of your internet browser.
  • Change your passwords frequently – One of the popular tricks to hack your account is a brute force attack which usually exploits weak passwords. Hence, it is important to choose a password consisting of letters as well as numerical. Also make sure that you change the password at a regular interval.
  • Report stolen credit cards immediately – In case you lose your credit card, or it is stolen, inform the authority as soon as possible. Always keep the number of your credit card company’s customer service with you.

Well, these are some of the handy tips that may save you from a credit card scam. Keep them in mind while using your credit cards.

 


Shopping for a Credit Card? Shred Those Mail-In Offers and Compare Online

online credit cardImage License : Flickr

Few things bum me out more than opening a mailbox full of junk mail. It’s wasteful, it clogs my mailbox and makes it difficult to decipher what’s important and what isn’t, and 99 times out of 100 it’s essentially worthless to me.

When it comes to the worst forms of junk mail, nothing beats mail-in credit credit card offers.

Why? Well for starters they heighten your risk of identity fraud. Don’t just recycle these mail-in offers – throw them in the shredder and make sure that none of your personal information is visible for strangers to access.

Next, they can be harmful to your credit score, too. That’s because snail mail credit card offers aren’t just for you – they’re for the masses. For example, millions of us have flown on Southwest Airlines. But that doesn’t mean we’re all qualified to carry a Southwest Airlines credit card since it’s reserved for good-to-excellent credit consumers. And yet, a good many of us will receive a Southwest Airlines credit card offer in the mail at one time or another if we’ve ever flown through them – even those consumers violently under-qualified for such an offer.

Odds are a fair number of consumers have been disheartened to receive a rejection letter from the Southwest Airlines card, and even more bummed to realize that the hard pull that was taken of their credit profile hurt their score that much more without anything to show for it. (More on this below.)

I don’t mean to pick on Southwest Airlines; this is common practice for the mail-in credit card offers industry. The audience is technically correct, but there’s a lot more taken into account by credit card issuers when determining whether or not to approve you for a card other than the airline you fly with most.

The Pros of Comparing Credit Cards Online

Imagine a credit card offer tailored specifically for your wants and needs: your credit score, your desire for cash back or miles, and your wish to limit fees, be it annual or otherwise. Then imagine waiting minutes – not days, or even weeks – for an approval  decision. Sounds a lot better, right?

Well, credit card comparison sites like www.creditnet.com and Credit Karma, among others, have developed online tools that make the credit card shopping experience as custom and personal as ever before. These sites allow you to narrow your search down beginning with your credit score (from none established to excellent), how you plan on using the card (maybe a zero-interest balance transfer?) and even how much you spend each month on select purchases, be it gas, groceries or otherwise.

These sites then take the information you’ve input into their website and whittle your available offers to just a small handful of cards for you to select from. No more guessing or compromising – online credit card search tools improve your chances for approval while making sure you’re applying for the card that’s perfect for your intended use.

Online credit card comparison tools keep the number of hard pulls on your credit report to a minimum. This is important since every hard pull has a small but negative effect on your score. These inquires stay on your report for two full years, and while they can easily be made up for over time with responsible use of a new credit card account, a hard pull without a new card to build credit with is ultimately a waste of a hard pull. (Note that “soft pulls” occur when a user pulls their own credit score and has no effect – positive or negative – on their score.)

With online credit card search tools, not only are you matching your spending habits and desire to earn miles, points or transfer a balance with the right card for you, you’re also ensuring that you’re applying for a card that’s more likely to approve you on the first shot.

So the next time you’re ready to apply for a credit card, throw any snail mail offers you have left over into the shredder and jump online for a truly personal credit card comparison experience.

This post was written by Jason Bushey. Jason is a personal finance expert and you can find his work daily on Creditnet.com.

Unlocking the Mystery of Your Credit Report

A recent FreeCreditScore.com survey discovered that 28% of respondents have never checked their credit scores, so it’s not surprising that so many consumers have no idea what to expect to see on their credit reports.

Credit ReportingHowever, there’s no excuse for not understanding your credit report because you can request a free copy of your report from the credit bureaus once every 12 months. It’s a good idea to check out your report to see what factors are showing up, but also to search for any reported mistakes.

But if you’re too impatient to wait for your credit report to arrive, here are just a few things that may appear on your credit report.

Identification Information

Your credit report will include your personal information such as your name, birth date, home address, social security number, and employment information. If you’re married and share finances with your spouse, your spouse’s information may appear as well. As for your other personal information, like your criminal background, medical history, ethnicity, or race, these specifics will not show up on your report.

The credit reporting agencies include this information on your credit, but none of it goes into the calculation of your credit score.

Credit Information

Obviously your credit report will reveal information about your credit history. It will include any accounts you have open with credit card companies, banks, and lenders. The report will also uncover any late payments, current balances, outstanding debt, as well as the amount of credit you have available.

These are all important factors that determine your credit score, so it’s important that you look closely for any mistakes.

Public Record Information

Unfortunately credit reporting agencies will file any money related public record information on your credit report. This includes, but is not limited to bankruptcies, liens, lawsuits, wage garnishments, and foreclosures.

Some of these actions, such as a bankruptcy, could significantly lower your score and remain on your credit report for up to ten years.

Credit Inquiry Information

Any time that you request a loan or apply for a credit card, the lender will take a peek at your credit report before approving you. Each time that a lender does so, it’s called a hard inquiry, and the inquiry will appear on your credit report. A hard inquiry could temporarily lower your credit score, so it’s a good idea not to request multiple credit cards and loans throughout the year.

With that being said, there are such things as soft inquiries, which pop up when you request a copy of your credit report for yourself. In this case, these inquiries won’t harm your score, but they will appear on your credit report.

The information on your credit report shouldn’t be a secret. Take the time to request a free copy for yourself so you can get a better understanding of your financial standing.

Chloe Mulliner writes and edits for CreditSources.org, which is a personal finance website that focuses on credit card options and loans for people with bad credit.


How Can I Improve My Mortgage Credit Report?

There’s a new buzzword around town. And that buzzword is “mortgage credit report.” And it’s definitely in your best interest to pay attention to this new buzzword. Because if you ever hope to buy a home it is vital to know how important these mortgage credit reports truly are.

Mortgage credit reports explained

mortgage_card_explainedSo let’s start off with the basics, shall we? In order to recognize how important mortgage credit reports are, you first have to understand what they are. They really are a basic concept. When mortgage companies are considering you for a mortgage loan (and deciding what interest rate they will charge you), they want copies of all three of your credit reports. If your husband/wife will also be on the loan, they want copies of all three of their credit reports also. That equates to pages and pages to analyze in their loan acceptance process. That takes too much time.

So, in come Mortgage Reporting Companies. Instead of your mortgage lender having to pour over these endless pages of credit reports, they hire these mortgage reporting companies to do that for them. Mortgage reporting companies order copies of your credit reports and consolidate them into one report. This consolidated report created by the mortgage reporting company is called, you guessed it, your mortgage credit report. It is the information found in this report that is used by mortgage lenders to decide your acceptance or denial for your loan, and of course your interest rate. Everything to do with your mortgage loan rests on the information found in your mortgage credit report.

Ways to improve your mortgage credit report

Now that we’re all on the same page of understanding the importance of mortgage credit reports we can get down to the reason why we’re here: discussing how we can improve these reports. First things first, you are probably wondering how to access your mortgage credit report. As of right now, the only way for you to access your mortgage credit report is if you’ve already been issued a mortgage loan. If that is the case, then your mortgage credit report should be included with your closing paperwork.

If you don’t already have a copy of your mortgage credit report, don’t fret. You can start by accessing copies of your normal credit reports from the three major credit bureaus (Equifax, Experian, and Transunion). If you are wanting to improve your mortgage credit report this is probably your best bet anyway, because the information found on your mortgage credit report is pulled from your major credit reports anyway.

Now on to improving these reports. There is no way to go about particularly improving your mortgage credit report on its own. That is because, as explained above, the information found on it is pulled directly from your other credit reports. So if you want to improve your mortgage credit report, then you would go about the same processes and steps that you would use to improve your normal credit reports and scores. As your normal credit reports improve, then so will your mortgage credit report. So, the typical steps that you would use to improve your credit, including paying your bills on time, paying down balances, working with a credit repair company if needed, etc, will all also help to directly improve your mortgage credit report.

That is the good news! You don’t have to take any extra separate steps to improve your mortgage credit report. It really is that basic: if you want to improve your mortgage credit report, then start by focusing on improving your basic credit reports. As you see improvements in your normal credit reports, your mortgage credit report will simultaneously improve. This new and improved mortgage credit report will help you to find easier acceptance on a mortgage loan, as well as lower interest rates for your new home.

This article was contributed by Chase Sagum. Chase writes about credit repair and personal finance issues/opportunities.

Image credit: http://www.flickr.com/photos/68751915@N05/6808984167/


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