What will my monthly payment be? Can the amount change? What would cause the payment to change? How much and how often could the payment go up? When will the loan be paid off? Just because a lender says you qualify for a certain loan amount doesn’t mean you are getting a loan that is affordable for you. Make sure you can meet the loan payments now and in the future.

Is there a “balloon” payment? If so, when is it due, and how much will I owe? A balloon payment is a large, lump-sum payment due at the end of the loan term. A balloon loan may keep monthly payments low in the early years, but be a debt refinance or the loan paid off in full at the end of the loan term, and the low payments mean that relatively little of the loan balance has been reduced. For some borrowers, a balloon loan can be very appropriate. For others, the consequences can be costly, perhaps even resulting in the loss of their home if they can’t repay or refinance the amount due.

What is the APR—the annual percentage rate—for this loan? Is this the lowest rate you can offer? The APR is the total cost of the home refinance including interest charges and other fees, expressed as a yearly interest rate. Comparison shop among several mortgage lenders so you have a good sense of the costs you should be incurring, then negotiate the best possible refinance rate. Don’t be afraid to make lenders compete for your business by letting them know that you are shopping for the best refinance rate.

What “points” and fees would I be charged? Are any of these charges being added to the loan balance and increasing my payments? If so, how much extra would I pay each month and over the life of the loan? Each point equals one percent of the loan amount. Make sure you have a good understanding of all costs, terms and conditions of the loan. Compare verbal answers with what is written in your loan documents.

Does the loan amount include fees for credit protection, such as credit insurance or debt suspension/cancellation coverage, that would cover the loan payment if I die, become ill or unemployed? If so, why, and how much will it cost me in up-front, monthly and total fees? You may not need the extra coverage, or you may get a better deal from your insurance agent or other sources, so shop around. Also, the lender is prohibited from conditioning approval of a loan on whether you buy insurance through the same company. Be very suspicious if the lender pushes single-premium insurance. The one-time payment usually is so big that consumers add the fee to their loan amount and pay interest each month, adding significantly to the monthly payments and to the total cost.

Is there a prepayment penalty if I pay off the loan early by refinancing or selling my house? What is the penalty? On some loans, a prepayment penalty will be charged if you pay more than is required on your monthly payment or pay off the loan before its term ends. Many lenders offer loans with prepayment penalties at lower interest rates than the same loans without prepayment penalties. Depending on your circumstances, a loan with a prepayment penalty can be a good alternative. However, prepayment penalties also can trap a borrower into a loan. For example, if market interest rates drop, you may miss out on a chance to refinance if the prepayment penalty on your loan is too high. Under the Truth in Lending Act, lenders must disclose any prepayment penalty and how it is determined. If the lender says there is no prepayment penalty, there should be a statement to that effect in the documents. You should ask the lender to show you where that is stated in the documents.

Do any of the loan terms differ from what was previously discussed or provided? If yes, which terms and why? Review documents prior to signing them and make sure you understand why any changes in terms and conditions have been made.

Get started on home refinance today.  

The concept of an advance cash loan online payday is fairly new. Heck, so many things are when it comes to cyberspace. It seems like a number of nuances are popping up all the time. We’re certainly fortunate in this respect. We can always use more and more conveniences in our lives. Most of us already work 9-5 on a daily basis. Therefore we yearn for simplicity on our off time. With concepts such as advance cash loan online payday have it made.

My mother took advantage of an online loan not long ago. She was sort of in a bind with her car payment and credit card debt. It was high time to do something about it. She went online searching for an advance cash loan online payday. However, she ended up spotting something better. She was able to acquire a large loan and consolidate all her debt in one whack. No more credit card companies hassling her, and no more car payment. Now she just deals with one low monthly payment. This is so much easier to grapple with than four separate hefty bills.

Maybe you’re in search of a decent advance cash loan online payday. This is not a problem. All you need handy is your trusty PC. So pop open that laptop and get started making your future better. The right advance cash loan online payday can really help get you started. Don’t lose that home due to one late payment! Get on top of things today with an advance cash loan online payday. So many others are way ahead of you.

Equifax – www.equifax.com – Equifax offers services and products to protect against identity theft, to manage and check credit, and to prepare for a major purchase. Equifax also provides tools for checking the value of a property, credit ranking, and the latest in business solutions (for B2B, B2C, and direct marketing, for example) and news …featuring such valuable articles as “Small Businesses Beware: ‘Rip Me Off’ is Written all over You;” “Yo Say You Can Smell Phish in Your In-box?” “Credit Union Thwarts Phishers and Reveals How;” and “Websites Let Users Send Email to Future.”

TO CALL
For general concerns, call 1-800-685-1111
To report or investigate fraud, call 1-800-525-6285

TO WRITE
To send snail mail correspondence, write to
PO Box 740241, Atlanta, GA 30374

Experian – www.experian.com – Experian also offers products and services to protect against fraud, to check 3-credit bureau reports, to check vehicle history (with a report), and to get further educated—understanding your credit and heeding customer alerts (such as those on Experian’s Katrina victims help pages and how to beware of phishing).

TO CALL
For general concerns, or to report or investigate fraud, call
1-888-397-3742

TO WRITE
To send snail mail correspondence, write to
PO Box 2002, Allen, TX 75013

TransUnion – www.transunion.com – Like the latter two, TransUnion offers products and support services for credit monitoring, provides fraud-prevention education and help, and free credit card report disclosures. As well, you can subscribe to the newsletter, to stay updated and get helpful credit tips; can find much information on preventing fraud or resuscitating your credit if you have been a victim of fraud; and can dispute credit card items you suspect or know to be false.

TO CALL
For general concerns, call 1-800-888-4213
To report or investigate fraud, call 1-800-680-7289

TO WRITE
To send snail mail correspondence, write to
PO Box 2000, Chester, PA 19022

If you need to, use all three major credit bureaus, then, for help or support…or use one, as each of these three offers a combined, 3-in-1 report.

The credit bureau must tell you the nature and substance of all information contained in your report. It must also tell you the sources of the information and who has received your report for the previous six months (two years for reports furnished for employment purposes).

To process your request, you will need to provide specific information, such as your name, current and previous addresses, telephone number, social security number, and date of birth. Also, to verify your identity, other information such as a copy of your driver’s license, utility bill, or bank statement may be required. Keep in mind that the three large bureaus do not necessarily share information with each other. The content of your credit report can be different at each bureau, so it’s a good idea to request copies from each one.

To contact the three major credit bureaus:

Late and missed payments will show up on your credit report and hurt your chances of being approved for credit, life insurance, or employment. To find out about organizations in your area that help consumers solve credit problems and create a budget, contact the National Foundation for Consumer Credit at (800) 388-2227. Spanish speakers can call (800) 682-9832.

Additional information on improving a credit rating can be found in “How to Establish, Use, and Protect Your Credit,” a brochure by the Federal Reserve Bank of San Francisco.

Your FICO score is so important you should also consider professional credit counseling.

Supposed Factors in FICO Credit Score

FICO scores and its variants are designed to estimate the risk of loan default. Although the exact formula for determining credit score is a closely guarded secret, Fair Isaac has disclosed the following components and the supposed approximate weighted contribution of each:

• 35% punctuality of payment in the past
• 30% capacity used: balances owed to total available credit
• 15% length of credit history
• 10% types of credit used (installment, revolving, consumer finance)
• 10% recent search for credit and/or amount of credit obtained recently

Your Credit Score Is A Statistical Formula

The official percentages provide very little value in understanding a FICO credit score. For example, the 10% of the score allocated to “types of credit used” is undefined, leaving consumers unaware what type of credit mix to pursue. “Length of credit history” is also a murky concept; it consists of multiple factors, two being the oldest account open, the average length of time an account has been open. Although only 35% is attributed to punctuality, if a consumer is substantially late on numerous accounts, his score will fall far more than 35%. Bankruptcies, foreclosures, and judgments have a big affect on credit scores but are not even included in the simplistic explanation from Fair Isaac.

There are several generally accepted algorithms for extracting the primary contributing factors to a low credit score. One or more of these algorithms is typically used to supply a list of reasons when a loan applicant has been denied credit so that the lender can satisfy Regulation B. These adverse action reasons are disingenuous, as the only determining factor for credit denials is a numeric score — the “reasons” are provided only to satisfy Federal regulations and the consumer.

How To Manage Your Fico Score

There are two things you can do to improve your FICO score: (1) delete negative items from your credit reports, and (2) manage your existing accounts in a way that will improve your FICO credit score.
Even with this briefest of summaries you get a sense that not being late on any current obligations will improve your credit score. Since you know that 30% of your credit score is determined by the amount of available credit on your existing accounts, you get a sense that manipulating these balances will affect your credit score.

Is there any software that uses the actual information on your credit report to do “what ifs” so that you can see exactly what affect paying down an outstanding balance, or adding another credit card or revolving account will have on your FICO credit score?

Yes, there is. Suze Orman’s FICO Kit Platinum does that, and more. You can read a review of the Suze Orman FICO kit here.

Other Credit Score Variables

There are other special factors which can weigh on the FICO score although the credit bureaus do not disclose precisely how these variables are calculated.

• Any money owed because of a court judgment, tax lien, or similar carry an extra negative penalty, especially when recent.
• Having above a certain number of consumer finance company credit accounts, or store credit cards, also carries a negative weight.
• The number of recent credit checks also can weigh down your credit score, some say as much as 5 points per “hard” inquiry.

What Damages Credit Score The Most

You can tell that credit scoring is a black art but it’s generally accepted that culpability on this short list will do the most damage to your credit score:

• Past Due on your mortgage loan.
• Payments that are over 30 days late on other loans.
• Judgments for debt.
• You’re not on the Voters Roll at the address you claim to live at.
• Multiple applications for credit in a short time.
• Recent Bankruptcy (undischarged bankrupts will always be refused credit).
• Auto repossession.

Weston has updated this national bestseller with extensive new information, including an inside look at the new VantageScore credit scoring system, “Fast Fixes” that actually work, and powerful tips for first-time borrowers. You’ll discover how your scores are affected by everything from applying for loans to closing accounts…how to cope with a credit crisis, and bounce back from bad credit or bankruptcy…how credit counseling really affects your score…why paying old debts can actually damage your score…how to reduce your exposure to identity theft, and much more.

“Your credit score can save you money or cost you money–sometimes a lot of money. Yet, most people don’t even know their scores, much less know how to make them better. Liz Pulliam Weston can help you fix that. In this easy-to-understand guide you’ll learn how to make sure your score helps you get the best deal on loans and insurance. You can’t afford not to read it.” –Ilyce R. Glink, financial reporter, talk show host.

Liz Pullman Weston has written a wonderfully concise and easy to understand book on “Your Credit Score”, a poorly understood system used to calculate our financial GPA. She uses her expert paragraph and writing skills to give us an easy to comprehend, information filled book with good examples and follow-up reference material where needed.

She has taken a topic and material that has been kept in the dark for years and made it understandable and manageable for the average individual. She not only defines and explains the “Credit Score”, but also illustrates what can be done to improve it, no matter what your present score is. This is an easy to read, concise book that will benefit anybody at all interested in their financial health. Five Stars all the way! -Amazon reviewer

There are usually four types of information in your FICO credit report:

1. Identifying Information: Your full name, any known aliases, current and previous addresses, social security number, year of birth, current and past employers, and, if applicable, similar information about your spouse.

2. Credit Information: The accounts you have with banks, retailers, credit-card issuers, utility companies, and other lenders (accounts are listed by type of loan, such as mortgage, student loan, revolving credit, or installment loan; the date you opened the account; your credit limit or the loan amount; any co-signers of the loan; and your payment pattern over the past two years).

3. Public Record Information: State and county court records on bankruptcy, tax liens, or monetary judgments (some consumer reporting agencies list non-monetary judgments as well).

4. Recent Inquiries: The names of those who have obtained copies of your credit report within the past year (two years for employment purposes).

Think about how often your mail has a misspelling of your name or a mistake in your street address. Then, imagine the possibility for error in a report that contains much more information about you. Cases of mistaken identity, out-of-date information, and outright errors can easily occur.

You are entitled to receive one free FICO credit report every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion. This free credit file can be requested through www. annualcreditreport.com or by contacting the companies directly by phone or by mail as listed below. You can also get a your FICO credit report if you are denied credit or at any time you want if you pay a small fee.

Our FICO score has deep repercussions for our financial lives, and consequently, for our daily lives as well. Much as we would want to contest the belief that money makes the world go round, there is more truth to such a statement that we can ever deny. Hence, our FICO score plays a crucial part in our dealings in society.

What Is A FICO Score?

The acronym FICO stands for Fair Isaacs Company, the very first establishment to use a credit scoring system for the purpose of determining the risks involved whenever they extend credit to their applicants. Throughout the years, this credit scoring system became an industry standard that serves a lot of purposes in the modern day world.

Today, whenever people refer to a FICO score, they mean your credit score which is based on the aforementioned Fair Isaacs Company scoring system. Why is this important? It’s because your FICO score is a more or less accurate gauge that is used by lending institutions to determine your ability of paying off a debt.

The higher your FICO score is, the more capable you are of satisfying the loan in full, the less of risk you can be as an investment for the lending companies. A high FICO score therefore would allow you to secure a loan much easier than a person whose financial capabilities are placed in doubt because of their lower FICO score.

Your FICO score would also be used as a measure to determine how big or how small the applicable interest rates can be. Low FICO scores, being higher risk investments for the lending companies, would merit higher interest rates. High FICO scores, being safer investments, would need only low interest rates.

What Comprises Your FICO Score?

Your FICO score would be the net result of several factors. Let’s take a look at how they comprise your financial identity.

Outstanding debt, which comprises 30% of your FICO score. This would tell the lending company how much of your existing credit is being eaten up by existing loans.

Length of credit history, which comprises 15% of your FICO score. If you have been paying a loan of significant amount over a long period of time, then this would fare well with the lending companies as it establishes a level of commitment they would want to see.

Recent inquiries, which comprise 10% of your FICO score. An inquiry is equivalent to a loan application. The more inquiries you have, the lower your FICO score would be.

Credit balance, which comprise 10% of your FICO score. Credit balance is the difference between the current amount of your existing loans and the original amount of the same. The bigger the balance, the lower your FICO score.

Payment history, which comprise a whopping 35% of your FICO score. This includes everything, from the timeliness of your payments, to the number of bills you have failed to pay, to the bills that have been forwarded to collection companies. Maintaining A Good FICO Score Is Essential For Your Financial Health.

There will always be those times when we would find ourselves in a financial rut. These are the times when bills become due almost simultaneously, when satisfying them is rendered impossible by the other financial demands of our life.

Acquiring loans would help bail us out of these difficulties. In certain cases, loans are quite necessary for our survival. It would be to our best interests that securing a loan be easy and almost guaranteed. A good FICO score would help achieve this, and give us a better position to resort to loans whenever the needs arises.

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Your credit report will also show inquiries from prospective lenders, landlords, insurers and others. Inquiries remain on your credit report for up to two years.

Information about you from public records, including liens, judgments, bankruptcies, and overdue child support can remain on your credit report for up to seven years.

If you file for personal bankruptcy, that fact remains on your credit report for 10 years.

Your Fico Credit Rating

Your FICO credit rating is drawn from your credit report, which outlines your borrowing, charging, and repayment activities. A poor credit score limits your financial opportunities. Since your credit report influences whether you are able to buy a home or qualify for certain jobs. it is extremely important to protect your credit rating by making loan and bill payments on time and by not taking on more debt than you can handle.

That’s all true so far as it goes but a credit rating is really only a statistical compilation of the data currently available to the credit bureau. The mathematical formulae are secret but weigh factors like payment history, amount owed, number of accounts, and number of inquiries to calculate a credit score.

Your credit score isn’t about “you.” It’s the statistical bin the credit bureau puts “you” in. It’s the same as saying that Credit Score “xxx” has “yy” probability of making a timely payment over the next two or three years.

Credit bureaus can provide information only to the following requestors: (1) creditors who are considering granting or have granted you credit; (2) employers considering you for employment, promotion, reassignment, or retention; (3) insurers considering you for an insurance policy or reviewing an existing policy; (4) government agencies reviewing your financial status or government benefits; and (5) anyone else with a legitimate business need for the information, such as a potential landlord.