Better Credit...Better Interest Rates

I was thinking about a past post I did and wanted to repost it. It was about how better credit translates into better interest rates. Check out the details below…


If a person with a 620 score gets a mortgage the interest rate will be around 4.6% with a payment of $765 and pay $126,000 worth of interest over the life of the loan versus a person who has a 720 with an interest rate of around 3.1% which calculates to a monthly payment of $647 and total interest paid over the life of the loan of about $83,000. This calculates to about $43,000 saved during that time. Now imagine if you took that extra savings and placed it in a Money Market account or a high-yielding savings account.

NUMBERS NEVER LIE

What do numbers really mean? There are all kinds of numbers. License plate numbers, numbers when we visit our favorite fast food restaurants, #5 or # 1 please. Gas stations have numbers can I get $20 on pump 7 and of course we all know about social security numbers. I have been thinking about our numbers a lot lately and here is what I came up with. I thought I would share them with you. Perhaps they mean something, perhaps they don't. Nevertheless numbers are all around us, from our shoes to our scales, they are there to give us a measure of where we are, where we are going and where we want to be. Below we've compiled some numbers of our results over the last four months.

68 new clients since June 1, 2013

90% completed (we expect to have these 10% completed within next 30 days) these were very large scale clean up's all with more than 40 items per bureau to dispute!

43 clients with a 780 FICO score on at least 1 credit bureau.

62 clients with a 750 FICO score on at least 2 credit bureaus.

68 clients with a 700 FICO score on all 3 credit bureaus.

We work directly on your behalf to update your credit profile to read accurately. 

We provide FULL services on a FULL 1 YEAR TERM assisting YOU AS A CLIENT in removing negative and inaccurate items from your credit report. 

Once you enter our program you will start seeing exciting results in the first 30 days. 

Most of our clients will be completed within the first 30 days! 

The faster we can get you completed the better for us!!

We will continue to work with you for 12 months if necessary; for NO ADDITIONAL FEE until we have your file complete. 

In MOST cases we can remove all disputed items within 30 days.

Contact us TODAY!

Blessings to you all today...

Tradelines

Tradelines are the accounts that are on your file. Tradelines help aid the 70% of your credit report that lenders and under writers review which is credit history and utilization. Our tradelines have great credit/payment history and low utilization ( which means very low balances). 

However if you do not have many tradelines on your file regardless to whether you have any or no derogatory information you may still be declined because credit is based off of your current consumer traits, even though you may have alot of paid off accounts with no lates or just a few lates if you do not have any open and active accounts seeking approval will be difficult and will bring about high interest. 

Below are several guidelines you should go by when you are in the

market for auto loan, funding or mortgage :

MORTGAGE : 4-5 accounts & at least 1 account open at least 12months

*Self Help Tip - get a secure card and 2 seasoned authorized user

AUTO : Need a minimum of 2 accounts with a minimum of one account at least 12 months with at least 5K for auto

in the 10-17K range, 

- 17K - 26K you will need at least one 10K plus with one being open for 12 months 

-26K - 45K you will need at least two 10K plus lines with one open for 12 months 

*Self Help Tip - get a secure card and 2 seasoned authorized users

FUNDING : Need at least 3-5 accounts with two account both opened for over 12 months

*Self Help Tip - get a secure card and 2 seasoned authorized user

FYI DIY Day 5

This is our last installment on Do It Yourself Credit Repair. Finally you need to build some muscle. In other words its good to see if you can enhance your remaining credit profile. After you have removed all the negative items that you can off your report. Also this is a reminder that you need to start repairing your credit as soon as possible because you can not predict the time-frame involved in getting yourself to the point that you want to be. As you increase your score you decrease your interest rate, which in turn reduces your monthly payment. 

Check with your family members first to see if anyone has a credit card that they are willing to add you on as an authorized user. This gives you the benefit of all their payment and credit history on the particular card. Consequently this means that they should not have ANY late payments, if they do then you are just working against yourself. The higher their limit and the lower the balance the better it is for you. Next check with your bank to see if they offer secured credit cards. If they do then this is a great tool to help your overall credit profile. 

Also you can document your history of paying your rent, health insurance, or even child care bills on time, every time, for at least 12 months, talk to your mortgage professional about whether you can use any of these accounts to prove yourself creditworthy to mortgage lenders.

Remember start early, stay patient and you'll be able to see great results. 

Day 4 "FYI DIY"

Perhaps up until this point you've been working alone. You've been tackling the task of getting your credit cleaned up. I suggest if you haven't by now, to enlist the help of your mortgage broker. 

Allow the mortgage broker to go ahead & pull your a trimerger or a full credit report from each of the three major credit bureau. The report may or may not be identical to the one you have access to. However the one thing you don't want to do is to wait until the last minute to allow your lender to pull your credit. You and your lender will have an opportunity to catch any item that may keep you from getting the house (or car) you desire.

Finally break down the results in to long-term & short term. The lender also may have access to Rapid Rescore or similar programs that will have your report and credit score updated within a day or two after you complete all credit boosting techniques. 

Do It Yourself Day 1

1. The 1st step is to go to AnnualCreditReport.com and order your credit reports from all three reporting bureaus: Experian, Equifax and TransUnion. Also you can go to Equifax.com/freetrial and sign up for their credit monitoring service. Once you receive your reports, identify accounts that are not your accounts. Next look for accounts that are reporting erroneous information such as late payments listed as late that were actually on-time, modification listed as a foreclosure, etc. Each report will come with a detailed set of instructions on how to dispute the errors immediately. They will give you the option to dispute the items both online, over the phone and in writing. I suggest using the writing method, due to certain FCRA laws which are advantageous. 

Don't hold your breath or lose patience it might even take several rounds of disputes and submissions of documents to finally clear everything up. If you are planning on getting a home or car loan talk to the loan officer to see if the remaining items on your report even have a significant bearing on your interest rate or terms. Many consumers become overally concerned with collection items when they usually are the most insignificant items on your report.