Repair Credit Score

Archive for July, 2006

Question: How is interest calculated on a home equity loan vs. a credit card loan?

I have an offer from a credit card company for 3.99% FIXED APR until the balance is paid off. I want to borrow $10,000 to build a deck and put a new roof on my home. I know that home equity loans have variable rates and I am in the top tier as for my Credit Score, so I would qualify for a low rate between 5%-7% I guess. What is the smartest way to borrow that money and why? CREDIT CARD vs. HOME EQUITY or even a HOME EQUITY LINE OF CREDIT...(I'm not exactly sure how that works though?) Thanks.

Answer: If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

Credit Score and Loan Modification?

Question: Can someone tell me exactly how my Credit Score is calculated?

I'm thinking of getting another credit card. I have three already, but they have either have 0 balances or low balances. Would another credit card overextend myself in the eyes of the credit bureaus?

Answer: 35% - Your Payment History
30% - Amounts You Owe
15% - Length of Your Credit History
10% - Types of Credit Used
10% - New Credit

First of all, 4 cards is not a lot. I have like 14. Its not hurting me, but it really isnt neccesary either 4 is reasonable.
I know from personal experience that what does hurt your score is carrying high balances. I watch my reports and 3 scores very carefully and know exactly what changes my score. Credit card usage has a big effect on your score. Carrying high balances is bad. Having many cards WITH BALANCES is bad.
Debt to income ratio has nothing to do with your score. How much money you make isnt even on your report. Its a seperate issue.
Just keep your balances below 35% (preferably 15% or less). I pay off most of my cards every month. Pull your own scores from myfico.com (doesnt count as an inquiry when you pull your own).
coupon code cppsavings gives you each score for 11.96 instead of 14.95.
BTW, what will drop your score is the inquiry from applying for the new card and opening a new account. Not a huge drop usually but it will be a temporary drop. Ive seen it everytime I open a card. But its not a big deal and recovers quickly.
Good luck!!

Read this page:

http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm

What is a Credit Score and how is a Credit Score calculated?

Question: Auto loan with no credit?

So I am 18 years old with i believe a 0 Credit Score but experian tells me im a 693 on there Plus score chart. But anyway looking to buy a car preferably a Ford F150 Lightning, it is a 1999 and it goest 11k, I have 3k to put down and make 600-750 a week at my job of over 2 years, do you guys think i would be approved? If that down payment is not enough what would be? I have 2 credit accounts BOTH in GOOD standing!
the car has 75k miles. If not this one there is a 2000 with 65k miles for 12k!
The thing is they weren't produced after 2004 and usually those are close to 16 thousand and I would prefer to stay away from that high of a price. And I will NOT get a Co-Signer I want this for me and if I cant right now I'll wait untill i can
Ok so should I go through a bank, I am currently with BOA but I have a feeling I will get denied cant say why but I need a damn car!
Capital one just denied me

Answer: Many Online Lenders doesn't require co-signer for the auto loan and even if you got a bad credit or no credit you can still get the loan for it. All you need is just to browse the internet and fill free online auto loan qualifier. Best advantage of applying with them is they gotta a vast network of lenders, third party, private seller so you can get a good option to select and choice. There are many online lenders like quick-auto-loans.com and autoloanfinance.net that give auto loan with any credit situation. You can apply for multiple quote through different sites.

Good Luck !

Credit Score Chart