Get Free Credit Score – FICO Report

Carrie Reeder asked:




After a bankruptcy is discharged, many lenders will offer you a home loan. In most cases, these lenders do not require new lines of credit or a high credit rating. Buying a home with good or fair credit has its advantages. These individuals likely obtain better mortgage rates and qualify for a range of home loans. Here are a few tips on ways to raise your credit score before applying for a mortgage.

Pay Creditors on Time

The habit you adopt for paying creditors can have a negative or positive effect on your credit report. If bills are regularly paid on time, your score will soar. Yet, paying a bill one day late may decrease your credit score by as much as 10 points.

If possible, pay bills a couple of days before the due date. Waiting until the due date to pay credit card bills will not have a negative effect on your score; however, you may gain a few extra points with early payments.

Maintain Low Credit Card Balances

Following a bankruptcy, it is essential to open a new line of credit. This can be in the form of a credit card, gas card, retail store card, etc. If applying for a new credit card, avoid high balances. Ideally, consumers should keep credit cards at approximately 25% of the limit. Keeping a large balance will lower your credit score.

Stay Away from Credit Inquiries

Although credit inquiries are inevitable, especially when trying to re-establish credit, avoid applying for too many credit accounts. Many consumers are unaware of the damaging effects of inquiries. However, one inquiry can lower your credit score by 10 to 12 points. Because credit scores are already low following a bankruptcy, it is very important to keep inquiries to a minimum.

Carefully Monitor Credit Report

Try using one of ABC Loan Guide’s
Recommended Mortgage After Bankruptcy Lenders.

If attempting to boost your credit score, regular credit report monitoring is important. Homebuyers hoping to get approved for a prime rate mortgage will need a credit score of at least 680. After a bankruptcy, it will take time to achieve a high credit rating. However, if you take immediate steps to boost your score, it may be possible to get approved for a low rate mortgage within 24 months.

Laurie

David Kamau asked:




Your credit score is a three digit number that potentially has six digit impact in your financial life. Lenders often determine whether or not to give you a loan or credit card and at what interest rate based on this number alone. Most lenders use what is known as the FICO score.

Your FICO score is a number between 300 and 850. Needless to say, the higher the number the better and easier it is to obtain credit. Without going to deeply into FICO score ranges (which differ by lender anyway), a score of 700 is considered good. But to get thumbs up from even the most discerning lender, you need at least 720.

In order to improve FICO score, it is helpful to have a basic understanding of how this all-important number is reached. Here is the basic scoring model:

1. 35% of your score is determined by your payment history. This is the biggest chunk of the score for one obvious reason; they want you to pay your bills on time.

2. 30% of your score is determined by your balance to limit ratio, also called utilization ratio. This means the total balance of debts you owe in proportion to the total credit available to you. A utilization ratio of 30% or less is considered healthy.

3. The length of time you’ve had credit, or also known as credit history. Needless to say, the longer your history the better. This accounts for 10% of your FICO score.

4. Variety of accounts: A “healthy mix” is what to go for. Your score will be lower if you have only one type such as credit cards and higher if you have a credit card, a car payment, a student loan and/or mortgage. This accounts for 10% of your score.

5. Your new credit accounts for 10% of your score. Too many new accounts can represent greater risk.

Based on the above, there are only two ways with which you can improve your FICO score fast;

1. Negotiate with your creditors for removal of negative information from your credit report. Often original creditors will not do this, but collectors might in exchange for full or even partial payment. This is a subject for which books have been written.

2. Get a limit raise or pay down your debt to 30% of limit or less. This can cause jump in your score in a very short time. Of course, if you’re already having problems paying your bills or have a low credit score this might not be an easy option. So what can you do?

One solution for lowering your utilization ratio is to get a merchandize credit card. These are cards for which you can only use to purchase items from the issuing merchant. They often come with relatively high limits, which is exactly what you need. But beware; there are many scam “merchant cards” out there.

Allen

Alison Cole asked:




FICO score estimators are those who are responsible for calculating a person?s FICO score. In order to understand what FICO estimators are, it is important to get to know what FICO scores are. FICO scores are numeric representations of an individual?s credit profile developed by the Fair Isaac Company, a California-based credit scoring firm. FICO scores not only determine one?s creditworthiness but also aim to predict the credit risk of a particular borrower. Originally intended as a means to reduce the time and expense involved with examining credit reports while speeding mortgage approvals, FICO scores have proven their value in the credit and lending industry through the years.

FICO score estimators can accurately measure one?s FICO scores using the given weighted variants which are then calculated considering other factors. The standard weighted variants that FICO score estimators use as constants include 35% from payment history, 30% amounts owed; 15% length of credit history, 10% new credit and another 10% for other types of credit used. These are used and checked against other factors to come up with a precise FICO score. Based on the estimates of FICO score estimators, finance firms may determine the amount of credits one is capable of paying for.

FICO score estimators also consider that individuals vary which is why scores are segmented to have differing scoring models applicable to different individuals based on a variety of factors. These segmentations are carefully studied by FICO score estimators from which individuals will be assigned different scores. FICO score estimators also consider other elements that can affect FICO scores.

Proper training, educational requirements and direct experience in estimating FICO scores are what set certified FICO score estimators from free credit score estimators who only offer a rough credit score estimate. They also establish useful contacts with various financial institutions and lenders from which they can get relevant credit information about their clients that they use when estimating FICO scores.

Jessie

Paul Sarwana asked:




Your FICO score is a vital component of managing your finances. This is the number used by the credit bureaus to determine how good your credit is. The FICO scoring system can appear to be pretty complicated if you do not know how it works. On the other hand, if you know how your FICO score is calculated, you can easily find ways to keep a good score or repair a bad one. Understanding your FICO credit score is key to maintaining good credit and keeping yourself afloat.

The first part of knowing how the FICO scoring system works is to know what qualifies as a good credit score. The highest score you can receive is 850. The best range is between 720 and 850, with scores from 675 up to 719 still representing good credit. Scores below 675 may have trouble getting good terms on money borrowed, and below 620, it may be hard to get credit at all. A score of 300 is the bottom of the FICO score ladder.

Your FICO credit score is made up of a number of factors. Thirty-five percent of your credit score is based on how punctual you are with payments. Any payment over thirty days late can be reported to the credit bureaus and lower your score. Thirty percent of your score is also based on your total debt — the ratio of revolving debt, like credit card balances, to available revolving credit, such as your credit limit.

Another fifteen percent of your credit score is based on the length of your credit history from the time you first borrowed money to the present. Ten percent is based on the kinds of credit you use. Some kinds are weighted more heavily. The final ten percent of your FICO score is determined by how much credit you have used recently.

Some special factors that can influence your FICO credit score include money you owe due to a court judgment or tax lien. These can carry a very large credit score penalty. If you have more than a particular number of consumer finance credit accounts, you will also find that your score is impacted negatively. The number of credit checks made recently can also lower your score, although the credit bureaus do allow for a certain number of checks in a particular window of time, such as might occur when you are shopping for the best rate on a loan.

There are three major credit reporting agencies in the United States: Equifax, Experian, and TransUnion. They all record credit a little differently, meaning that it’s important to get a report from each to get an accurate picture of your credit. Any US resident has the right to request a copy of his or her report from each agency once a year. You can do this through through the Internet, via a toll free call, or by mailing an Annual Credit Report Request Form. This report does not contain your FICO score. However, you can choose to purchase that credit score for a small fee at the time you access your report.

Lewis

Karma Amarande asked:




If you are someone who has bad credit, it wont’ inevitably stop you from obtaining approval, but it can cause it and other, large purchases to become much more difficult than it would be if you had good credit. Here are some ways to get approved despite your bad financial history.

Apply for credit cards at retail and discount chain stores. Many times, stores like these are more willing to give you a chance. If the store approves your application, make small purchases that you can pay off and make at least the minimum payment each month and make the payments on time or early if you can. (If you are able to pay more than the minimum payment or even the entire balance at once, you won’t have as much in interest charges and it will improve your credit score.)

Apply for a line at your bank, savings institution or credit union. If they already know you as a reliable customer, they may be more willing to give credit.

You can try for a secured card if nothing else works. You will have to open and keep a savings account as security for the line of credit they give you. Part of the line they give you will be a percentage of the deposit you make to the card.

If you are responsible and are certain you can afford to pay a credit card balance at this time, you can ask a friend or family member to co-sign with you. Remember that the other person’s financial history is considered in the application as well, so choose someone who has good credit. Having a co-signer with bad financial history will do you no good. If you can’t pay back the balance you charge on the card, this co-signer will legally have to, and it will show up as a mark against their credit rating and it could also damage your relationship with them. Consider that before choosing this option.

Gloria

ToddPicconi asked:

After Fourth of July Weekend, Todd reminisces over the time he had and what he did…Also, more importantly, he goes over a VERY IMPORTANT FHA CHANGE.

Kelly

FICOTechTalk asked:

FICO™ cares about the planet, people and profits. Laurent Pacalin, FICO™ chief marketing officer and co-founder of the clean tech open, is interviewed by Darcy Sullivan. FICO™ is the owner of the FICO score that has enabled equal opportunity lending. The Clean Tech Open is the most successful clean tech business plan competition in the nation supporting entrepreneurs push toward the development of a lower carbon economy.

Shawn