Repair Credit Score

Archive for May, 2007

Question: is there a free site to check my Credit Score?

i found this zendough site which is 7 day free trial after that is 14.95. what should i do?

Answer: You can get your free annual credit reports online from each of the three credit bureaus thru AnnualCreditReport.com. This is the site mandated by the FTC and is the only site that won't require you to sign up for montioring services. Reports are free, scores are not.

You can purchase your FICO Score with your Equifax Credit Report for about $8. You can also buy FICO scores for TransUnion and Equifax at MyFico.com. The TransUnion and Experian sites use Vantage scores (different scale/formula). Creditors use FICO. Don't waste money on any other score. Third party monitoring services use Fakko scores (their own forumula).

CreditKarma.com offers a free score estimator based on your TransUnion Credit Report. It's not FICO. But it's kinda, sorta like FICO, give or take 50 points or so. Good enough if you are just curious about your score.

Bascially, if you check your credit reports annually for accuracy and pay all your bills on time, your score will take care of itself. You really don't need to spend any money to find out what your score it.

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Question: How Long To Raise a Bad Credit Score?

Well I just recently learned that my Credit Score is really low and it is below 520. I don't know the exact score but I just know it is lower then that. I currently have a credit card bill I am working on paying off on time(after I was late for a little while) but my question is what do I need to do to make my credit better and more importantly HOW LONG WILL IT TAKE to make it better? I am looking to get into the 600 range....THANK YOU FOR YOUR HELP!!

Answer: All of the previous answers are correct in their own right. However, unsecured debt, such as a credit card payed off timely does very little to raise your Credit Score. What really boosts credit scores is repetetive on time payments on secured debts.....mortgages, car notes, student loans, etc. To have a score that low you must have had some charge/write offs. I would work at making those accounts right before incurring any more debt in the form of credit cards. And then see about getting a car note in your own name and staying good on that for about 2 years time and you should be in much better shape.

More People Than Ever Now Have Credit Score Below 600

Question: I want to be approved for a FHA mortgage loan, but my Credit Score is 509. My debt to credit ratio is 96%.?

I will be a first time homebuyer. Most of my debt is student loans and my income is 29,000 per year.

Answer: Wow - that is a HIGH debt to credit ratio and your Credit Score..is well....icky. Do you know your debt to income ratio? Based on the info. given, you will have a VERY difficult time getting a home loan.

The debt-to-credit ratio is a proportion of your credit line and your credit limit. As a general rule, your debt-to-credit ratio is in great shape if you use less than 30% of your available credit. With a debt-to-credit ratio of 30-50%, you will generally see a 10-20 point reduction on your Credit Score, with 50-70%, an approximate 30 to 50 point reduction, and with higher than 70%, your Credit Score will significantly reduce by about 70 to 100 points. Thus, if you have high debt balances, in order to improve your credit, you should pay off your debts or lower your balances. To calculate your debt to credit ratio, divide your debt balance by your credit limit. As an example, if you have a $5,000 credit limit and your balance is $3,000, you have a 90% debt-to-credit ratio.

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