Free Annual Credit Reports - Credit Tips

Helpful credit tools and information:

• Last year, 11.1 million people in the United States became a victim of identity fraud at a total cost of $54 billion - up 37% since 2007.
• Lenders may use one or a combination of all three bureaus to issue a decision on a loan. A decision may also be based on your employment record, your debt-to-income ratio and how much cash you have in the bank.
• A FICO (Fair Isaac Company) score is the first decisive factor in how a lender will review your application for a loan. Every lender varies on the minimum FICO score to extend a loan.  The minimum good credit rating scale fluctuates generally between a 650 to 720.
• Your credit rating has a variety of factors it  includes your past credit history, current debt-to-income ratio, as well as unsecured debt, like a credit card, versus other good debt like a mortgage.
• “I FOUND OUT I HAVE BAD CREDIT.” Contact all creditors that reported negatively on your credit report to see if there is a way to work with them to arrange payments or even get the bad mark eliminated from your credit report.
• You can save yourself a lot of money by taking the do it yourself approach and  repairing your credit. A little bit of time, patience and knowledge is all it takes to get it done right.
• The first step is to request a free credit report and examine it for negative items and potential errors.
• Traditionally, bankruptcies have a damaging impact on your credit. There are different types of bankruptcy filings. They all affect your credit the same. People usually file either a Chapter 7 or Chapter 13.
• A Chapter 13 bankruptcy is reorganization and does not discharge you of your debts. It is designed to give you time to negotiate with your creditors. A Chapter 13 bankruptcy will initially drop your credit score 100 to 250 points. With this reorganization your credit score bill bounce back more quickly than in the case of a Chapter 7 bankruptcy.
• A Chapter 7 bankruptcy filing releases all your debts (exceptions are income taxes, back child support and alimony). The downside to this is your credit score can go down as much as 300 points and it could take seven to 10 years for a Chapter 7 bankruptcy to be removed from your credit report.