credit report - Home Mortgage Loans After Bankruptcy - Can You Get Approved for a Home Loan?

After a bankruptcy, you can get approved for a home loan. Just be prepared to pay several points above conventional rates. However, if you have a large down payment or wait two years, your mortgage rates will improve to near conventional rates. Dealing With A Past Bankruptcy On Your Credit Report A bankruptcy will stay on your credit report for seven to ten years. However, it stops affecting your credit significantly after two years. So if you have established other good credit habits, you can qualify for market rates in no time. But before you shrug off your bankruptcy, check your credit report to be sure that all accounts that were part of your bankruptcy are discharged. It's not uncommon for paperwork to not get processed, leaving a negative mark on your report. Other Helpful Factors A down payment of 20% is expected for conventional rates with a traditional loan. Anything less and you will have to either pay a point or more at closing or additional loan interest. The same is true with sub prime loans. However, larger down payments decrease your rates. Significant cash reserves and a large income can also offset your credit risk. The amount you want to borrow is also a factor. The lower your debt to income ratio, the better score you will get. It's also important to remember that not all lenders will treat your application the same. So it's important to shop around for the right mortgage with the right terms. Shopping Mortgage Lenders If it has been less than two years after your bankruptcy or you know you have poor credit, start shopping with a sub prime lender. They deal primarily with people who have adverse credit. They can also offer you a lot more options than a traditional lender. For instance, sub prime lenders have easier terms to qualify for a zero down mortgage. You can also opt for a future refinance with your mortgage when your credit score improves. Remember that you have many financing options for a mortgage, even with a bankruptcy in your past. View our recommended Mortgage After Bankruptcy Lenders. Article Source:http://EzineArticles.com/?expert=Carrie_Reeder credit report - Credit Repair - The Cost Of Errors Credit Report Errors Mean Consumers Lose In 1998 the Federation of State Public Interest Research Groups (PIRGs) published a now famous report called, Mistakes Do Happen: Credit Report Errors Mean Consumers Lose. This report detailed the results of the PIRGs sixth study on the accuracy of credit reports. The results, in their words, were troubling, and revealed that an alarming number of credit reports contain serious errors. Here are some of the highpoints (or low points) of their study findings. Serious Errors can Have High Costs Seventy percent of all of the credit reports investigated contained errors. The errors uncovered by the study were broken down into categories based on the severity of the errors. The worst of the errors occurred in twenty nine percent of the credit reports and were likely to result in the outright denial of credit. This type of error included accounts that are incorrectly marked as delinquent, accounts that do not belong to the consumer, and derogatory public records such as judgments that belong to someone else. Not a Small Issue The types of errors noted above are obviously very serious. It should be emphasized that twenty nine percent is a horrendously large number. This number alone indicates that you have more than a one in four chance of having errors on your report that will cause you to be denied credit. An additional result of this misreporting may include your placement into a sub-prime credit category and result in you receiving a higher cost loan than you would otherwise have received. Translated into dollars there is the potential for a life changing impact on your financial wellbeing. Little Things Count Forty one percent of the credit reports reviewed contained personal identifying information that was out of date or belonged to someone else. These erroneous items included incorrect Social Security numbers - often belonging to total strangers, wrong birthdates, addresses that had never been lived at, and employers that the consumers had never worked for. Here again it is essential to consider, not only the massive numbers of errors that are indicated by the study results, but the implications of these results. These statistics show a massive potential for every credit report to contain potentially costly errors. Missing Accounts Can Hurt Twenty percent of the credit reports reviewed were missing major account information such as auto loans, mortgages, and other consumer accounts that could have demonstrated the credit worthiness of the consumer. Credit repair programs like ours discover these omissions on a daily basis. In many cases a credit report is as damaged by the absence of these major accounts as it would be by the presence of erroneous derogatory accounts. Closed Versus Open Accounts Twenty six percent of the credit reports contained accounts that had been closed by the consumer but remained listed as open accounts. Keeping in mind the significance that the FICO scoring method places on the number and status of current accounts it is clear that even this seemingly harmless omission by the credit bureaus can potentially cause expensive and intolerable damage to ones credit. In the majority of these cases it was concluded that this error could make it appear that the consumer is currently over extended and cause the denial of a credit application. Credit Bureaus Are Not Government Agencies The information noted above is an indication of the severity of the reporting problems that occur. We have been helping our clients with credit repair since 1989. I often find myself correcting customers' impression that the credit bureaus are in some way connected to the government. This belief is understandable. The credit bureaus have a major impact on your financial life. But although the bureaus seem like an omniscient Big Brother, they actually have no connection to the government at all. In fact, they are under constant scrutiny and have been fined many millions of dollars for their failure to cooperate with consumers' efforts to fix reporting errors. Your Rights Significant legislation has been enacted to protect you from the impact of the credit bureaus inaccuracies. The right that you have to receive copies of your three credit reports for free on an annual basis is not a friendly public service by the credit bureaus. The bureaus have been required to provide this service as one of the protective measures included on the Fair and Accurate Credit Transactions Act of 2003. Your credit report can have a major impact on your financial life. Give your credit the attention that it deserves and review your reports regularly. Copyright ? 2007 James W. Kemish. All Content. All Rights Reserved.

credit report - Credit Repair - The Cost Of Errors

Credit Report Errors Mean Consumers Lose In 1998 the Federation of State Public Interest Research Groups (PIRGs) published a now famous report called, Mistakes Do Happen: Credit Report Errors Mean Consumers Lose. This report detailed the results of the PIRGs sixth study on the accuracy of credit reports. The results, in their words, were troubling, and revealed that an alarming number of credit reports contain serious errors. Here are some of the highpoints (or low points) of their study findings. Serious Errors can Have High Costs Seventy percent of all of the credit reports investigated contained errors. The errors uncovered by the study were broken down into categories based on the severity of the errors. The worst of the errors occurred in twenty nine percent of the credit reports and were likely to result in the outright denial of credit. This type of error included accounts that are incorrectly marked as delinquent, accounts that do not belong to the consumer, and derogatory public records such as judgments that belong to someone else. Not a Small Issue The types of errors noted above are obviously very serious. It should be emphasized that twenty nine percent is a horrendously large number. This number alone indicates that you have more than a one in four chance of having errors on your report that will cause you to be denied credit. An additional result of this misreporting may include your placement into a sub-prime credit category and result in you receiving a higher cost loan than you would otherwise have received. Translated into dollars there is the potential for a life changing impact on your financial wellbeing. Little Things Count Forty one percent of the credit reports reviewed contained personal identifying information that was out of date or belonged to someone else. These erroneous items included incorrect Social Security numbers - often belonging to total strangers, wrong birthdates, addresses that had never been lived at, and employers that the consumers had never worked for. Here again it is essential to consider, not only the massive numbers of errors that are indicated by the study results, but the implications of these results. These statistics show a massive potential for every credit report to contain potentially costly errors. Missing Accounts Can Hurt Twenty percent of the credit reports reviewed were missing major account information such as auto loans, mortgages, and other consumer accounts that could have demonstrated the credit worthiness of the consumer. Credit repair programs like ours discover these omissions on a daily basis. In many cases a credit report is as damaged by the absence of these major accounts as it would be by the presence of erroneous derogatory accounts. Closed Versus Open Accounts Twenty six percent of the credit reports contained accounts that had been closed by the consumer but remained listed as open accounts. Keeping in mind the significance that the FICO scoring method places on the number and status of current accounts it is clear that even this seemingly harmless omission by the credit bureaus can potentially cause expensive and intolerable damage to ones credit. In the majority of these cases it was concluded that this error could make it appear that the consumer is currently over extended and cause the denial of a credit application. Credit Bureaus Are Not Government Agencies The information noted above is an indication of the severity of the reporting problems that occur. We have been helping our clients with credit repair since 1989. I often find myself correcting customers' impression that the credit bureaus are in some way connected to the government. This belief is understandable. The credit bureaus have a major impact on your financial life. But although the bureaus seem like an omniscient Big Brother, they actually have no connection to the government at all. In fact, they are under constant scrutiny and have been fined many millions of dollars for their failure to cooperate with consumers' efforts to fix reporting errors. Your Rights Significant legislation has been enacted to protect you from the impact of the credit bureaus inaccuracies. The right that you have to receive copies of your three credit reports for free on an annual basis is not a friendly public service by the credit bureaus. The bureaus have been required to provide this service as one of the protective measures included on the Fair and Accurate Credit Transactions Act of 2003. Your credit report can have a major impact on your financial life. Give your credit the attention that it deserves and review your reports regularly. Copyright ? 2007 James W. Kemish. All Content. All Rights Reserved. Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage broker based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great mortgage and credit tips visit the Florida Mortgage Blog Article Source:http://EzineArticles.com/?expert=Jim_Kemish credit report - Credit Report Scoring Errors - How to Write a Dispute Letter Discovering an error on your credit report can be disheartening, especially if you are applying for credit. However, you can write a dispute letter and get the issue resolved. The credit reporting agency is legally responsible for investigating errors, but you can also involve the informing party. Be Specific With Your Problem When you write your dispute letter, be as specific as you can about your problem. List the creditor's name and contact information. Also include a copy of the erroneous report. Highlighting or circling the incorrect information will draw attention to it. The more information you provide the credit reporting agency, the more legitimate your claim looks. Reporting agencies don't have to look into frivolous claims. So be as clear and concise as you can. Don't forget to also check the other credit reporting agencies' credit reports. You may find the same error and will have to write separate letters to each agency. Site Sources And Dates When Possible To help get your issue resolved faster, provide additional information that could be helpful. Send copies of old bills or statements that are relevant. You can also include copies of correspondences you had with the company or legal documents, such as a bankruptcy discharge. By providing additional information, you make it easier for the agency to investigate the dispute. With detailed information, they can get to the root of the problem faster. Keep Copies Of Paperwork For your own records, keep copies of all your paperwork. Note dates that you sent out the letter, along with included information. This will help you keep the parties honest. And when you do send copies, don't send the originals. You may need those later on, especially if there is a mix-up of some kind. If you have any phone conversations with the agency or creditor, also make a note of the person's name, date and time called. While you are sending a dispute letter to the credit reporting agency, also send the letter to the informing source. Many times these parties can act quicker than the agencies. Make sure to follow up your letter with a phone call after a few weeks. The sooner those errors get fixed, the better loan rates you will qualify for.

credit report - Credit Report Scoring Errors - How to Write a Dispute Letter

Discovering an error on your credit report can be disheartening, especially if you are applying for credit. However, you can write a dispute letter and get the issue resolved. The credit reporting agency is legally responsible for investigating errors, but you can also involve the informing party. Be Specific With Your Problem When you write your dispute letter, be as specific as you can about your problem. List the creditor's name and contact information. Also include a copy of the erroneous report. Highlighting or circling the incorrect information will draw attention to it. The more information you provide the credit reporting agency, the more legitimate your claim looks. Reporting agencies don't have to look into frivolous claims. So be as clear and concise as you can. Don't forget to also check the other credit reporting agencies' credit reports. You may find the same error and will have to write separate letters to each agency. Site Sources And Dates When Possible To help get your issue resolved faster, provide additional information that could be helpful. Send copies of old bills or statements that are relevant. You can also include copies of correspondences you had with the company or legal documents, such as a bankruptcy discharge. By providing additional information, you make it easier for the agency to investigate the dispute. With detailed information, they can get to the root of the problem faster. Keep Copies Of Paperwork For your own records, keep copies of all your paperwork. Note dates that you sent out the letter, along with included information. This will help you keep the parties honest. And when you do send copies, don't send the originals. You may need those later on, especially if there is a mix-up of some kind. If you have any phone conversations with the agency or creditor, also make a note of the person's name, date and time called. While you are sending a dispute letter to the credit reporting agency, also send the letter to the informing source. Many times these parties can act quicker than the agencies. Make sure to follow up your letter with a phone call after a few weeks. The sooner those errors get fixed, the better loan rates you will qualify for. Here are our recommended companies for a free copy of your credit report and other credit rating resources. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. Article Source:http://EzineArticles.com/?expert=Carrie_Reeder credit report - Your Access To Free Credit Reports That's right; you are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies. In addition to consumers who are eligible for a free credit report through the Annual Credit Report Request Service; consumers in some states are eligible for a free credit report under state law. The following states have laws that make free credit reports available to consumers: Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. Commonly called a credit report, what a credit report is really is a credit file disclosure. A credit file disclosure includes a record of anyone who has received a consumer report about you within a certain period of time. These are often referred to as "Inquiries". The credit file disclosure includes certain information that is not included in a consumer report about you to a third party, such as the inquiries of companies for pre-approved offers of credit card companies, or medical account information. A credit report includes information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. You are also entitled to a free report if a company takes adverse action against you, like denying your application for credit, employment or Insurance. You have up to 60 days to request your report after a decline. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of identity theft.

credit report - Your Access To Free Credit Reports

That's right; you are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies. In addition to consumers who are eligible for a free credit report through the Annual Credit Report Request Service; consumers in some states are eligible for a free credit report under state law. The following states have laws that make free credit reports available to consumers: Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. Commonly called a credit report, what a credit report is really is a credit file disclosure. A credit file disclosure includes a record of anyone who has received a consumer report about you within a certain period of time. These are often referred to as "Inquiries". The credit file disclosure includes certain information that is not included in a consumer report about you to a third party, such as the inquiries of companies for pre-approved offers of credit card companies, or medical account information. A credit report includes information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. You are also entitled to a free report if a company takes adverse action against you, like denying your application for credit, employment or Insurance. You have up to 60 days to request your report after a decline. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of identity theft. Ben Cortese is a developer and business analyst for the financial industry and enjoys developing websites through MerchantWeb Marketing. And apply for credit wisely at http://www.Best-Rate-Cards.com. Copyright 2007. Article can be reprinted as long as author credits are given and content remains unchanged and intact. Article Source:http://EzineArticles.com/?expert=Benjamin_Cortese credit report - 10 Tips To Improve Your Credit Score These days most of us avail loans to buy a house, set up a business, or buy a car. Many students take loans to further their education. How soon the loan is sanctioned, the rate of interest, and the amount sanctioned will all depend on your credit score which is based on your credit report. People with scores of 700 and more are the beneficiaries of lower interest rates and quick sanctions. Imagine if your score is greater than 700 and another person has a score of 698 then the person with score 698 will have to pay interest that is higher by one-half percentage point. And, this means over a year a person with a lower score will pay USD 19,000 and more as interest on a loan of say USD 165,000. A credit score takes into consideration: payment history, current earnings, current debt, length of credit history, types of credit utilized, and your new credit. If two or more members of your family are earning then apply for a loan jointly. You can take a few simple steps and ensure that your credit score is higher than 700. ? Maintain a long healthy credit history. Keep alive your oldest credit card and be sure to pay all bills in time. Never keep bills pending over a 30 day period. If in a crunch at least pay the minimum charges due. ? Do not have too many credit cards. Learn to say "NO," to offers of free credit cards. And, maintain a good credit limit. Avoid using all the available credit on the cards. ? Ensure that the credit report you have is accurate and that there are no errors clerical or otherwise. ? Plan your finance such that it is healthy. Consider debt consolidation. ? Never suddenly close or open accounts. This leads to suspicion that you are trying to manipulate your credit report. ? If you are having problems speak to your creditors well in advance and work out a stage wise repayment. Request the creditor to refrain from reporting the late payment. ? Late or delayed payments drive your score down so always pay bills dead on time. Keep a tab on due dates and ensure that all bills are paid. Learn all you can about credit reports and scores and keep the criteria in mind while managing your finances. Maintain the debt-to-credit limit ratio and, if need be take the help of a finance planner. A useful source to learn about managing credit is: http://www.balancepro.net/services/index.html they provide in depth coverage on money management, debt management, and credit report review. Even if advised refrain from filing for bankruptcy. All you need to do is to sit down and curtail expenses, plan you income-expenditure , and avoid spending what you have not earned.