One thing I suggested to them was to check out an identity theft protection service like Life Lock. You might have seen their commercials which advertise their CEO’s social security number. They do this to show you how much they stand by their product. Life lock will take you off the pre-approved credit card list, which cuts down on unwanted mail and the likelihood of identity theft, free credit reports once a year, cover child’s identity theft too, offer a $1 million guarantee if your identity is ever stolen while you’re with Life Lock, and finally, they place monitors on your credit reports. These alerts ensure that if anyone tries to do anything with your credit report, get new credit, change your address, expand credit lines, open a checking account, get insurance or utilities, you will be called directly for approval before anything happens. You can really beat this offer, especially considering it is just $10/month. That is cheap for guaranteed peace of mind.

Any readers used this service? If so, what do you think?

It frustrates me sometimes how people market toward the low credit score/subprime market. People that usually fall into this category are easily deceived and often duped into buying services they do not need or want. I really wish companies/people did not market to this weakness, it only makes things worse.

Every one will sooner or later have need of emergency cash. It can often come at the most inconvenient times, too. This means that when you need the cash - you need it in a hurry. Here is how you can get that emergency cash you need from a payday loan - regardless of your credit score.

Payday loans, also called cash advances and other things, have not been around all that long - but many people have already had to use them at one time or another. The best part is that you can get one in most places you go. Some states may not allow them, or if they do, may limit the amount of cash you can get. For instance, some place the maximum amount of cash at $500, and will only permit an individual to have one loan at a time. Other states, however, permit up to about $1,500 loans and the possibility of having up to three payday loans out at one time.

Your credit score is not a problem to the payday loan lenders. It will not even be checked in most cases - simply look at their advertising to find out. While they do not care about your credit rating, they will want to know about your employment and income. You will need to have been employed at the same place in order to qualify, and you will need to be taking home more than $1,000 per month in income. Those on a fixed income may make less than this, but will also not be able to take out as much.

Besides your employment, you will need to have had a checking account open for at least two months. After any payday loans are approved, they will deposit your money directly into it, and will take the money out from it when it is due.

In order to get your loan in a hurry, you will need to be prepared to fax them a few documents. If required (many do not require it - but it means that it will usually take longer - called no fax), you will need to fax them copies of your recent pay stubs and possibly income tax reports or bank statements if you are self-employed. Faxing will enable you to get what you want - the cash - in about an hour.

Even though the payday loan lender will not check your credit score, they do have a system that they will check with, called Telecheck. This computerized system informs the payday loan industry about who currently has payday loans out - and how many. This serves as a protection for them.

The good thing, though, is that having no credit is not a problem with your getting a payday loan. You can still have your cash in about an hour. One restriction, though, is that the best time to apply for a loan is Monday through Thursday. Applying too late on Friday, however, may mean that you do not get your money until Tuesday. Be sure to shop around for your best results and lowest interest rates.

The first thing you should do is to increase your credit rating as much as possible. The things that will effect your credit the most will be determined by how low your credit rating is. You will get a better interest rate if you do a full-documentation mortgage, rather than a no doc mortgage. The lender will be more inclined to extend the loan if you have full-time employment, as opposed to being self-employed, and have a rather steady work record - you don’t change jobs often.

Another thing that a lender looks for in your credit score is to determine what is the amount of debt you have compared to your present income. For the best interest terms, this needs to be below 36% of your pretax income. This percentage does include your mortgage, taxes, and insurance costs. The closer you are to being near or below this percentage, the better deal you get.

If it means waiting a little bit before you apply for your bad credit remortgage - it would be worth it. You could save thousands of dollars simply by reducing some of your debt first. Another way to get an even greater level of savings would be to make a larger down payment. By putting something down, even if it is around 5% - that will give you a better interest rate – and more savings, as compared to someone who doesn’t.

You will want to go to a mortgage broker to save some time. Most banks will not give people with bad credit a mortgage. A broker, or a broker Web site can enable you to quickly receive a number of quotes from one simple application. Be careful about lenders, who want to give you too much loan, or who encourage you to buy a larger house than you can afford - they are not looking out for your best interest.

As you look over the various quotes for mortgages that you received, be very careful about hastily taking one - just because it will do, rather than because it is the best. When you have bad credit, you especially want the best deal, because it will enable you to strengthen your credit rating even more.

If necessary, you may need to take a loan at the higher interest rate now, and then see about refinancing it a few years down the road – giving you much better terms. The one drawback here, though, is to make sure you can handle the payments adequately until you can refinance. Never take a loan if you can’t afford the highest possible rate, especially with an ARM that can reset.

It is also important that you read up on the different types of mortgages and become familiar with the terms before you apply. This will enable you to compare mortgages and make the right choice.

Back in May I presented 4 credit score myths and answers to common credit questions. I also broke down what many people feel is very complicated, and showed how credit scores are calculated. Then, in basically a compilation of the information, I showed how all this can be combined to get lower mortgage rates. I also posted about several easy ways to check your credit score for free, and honestly, I think this is the most valuable post on here.

Remember, increasing your credit score is an ongoing process, don’t get discouraged. To break it down to the simplest form, develop long credit history, control your spending, and pay your bills on time. If you’re still having trouble doing it yourself, even after reading everything on this blog, using a debt negotiation company might be a viable alternative. I would suggest doing research on credit card reduction and bill consolidation to see if it is right for you, or even check on installment loans.

Also on a side note, in the UK, landlords have access to services where they can buy a tenant credit report on line, often within a few hours of placing an order. Such reports provide a detailed tenant credit history helping landlords to make the optimum decision when letting a property.

In a recent conversation with my parents, who are in their 50’s and very financially sound, my mother told me how they recently had their credit card number stolen. To make a long story short, someone stole their number and ran up several charges on their credit card for Adult website memberships. It was because of this that my mom started asking me what I knew about Identity theft. I asked her if they had ever checked their credit report to see what accounts were open in their name. I was shocked to hear her say “I don’t even know what our credit score is, I don’t think we’ve ever run our own credit report”. I told her she should do it ASAP and that one of the best ways to check for identity theft is to see if there are any open lines of credit they did not authorize. Actively checking credit history can greatly reduce the impact of identity theft and also catch it at the same time. Not to mention, that it is incredibly easy to get a free credit report these days, so there are no excuses.

It just goes to show you that even financial sound or wealthier individuals should be concerned with their credit score/credit report, it isn’t just about getting a lower interest rate.

And remember, keep reading to increase your credit score. I received a report from one subscriber (aka a friend) who has increased his score by 40+ points in just a few months from tips that have appeared on this blog.

When it comes to mortgages, people should aim to have their credit score be over 700. Individuals with scores over 700 will get very good rates. A person with a 700 score is considered not very risky to the lender. Individuals with scores over 760 will most likely get the best rates offered by that particular lender. Keep in mind that the median credit score is going to fluctuate around 725.

Not to mention that all of this applies to credit card interest rates as well. Considering most American’s are in heavy debt, an incredible amount of money can be saved by increasing your credit score 25 or more points.

Closing point, people save a lot of money if they can increase their credit score over 700.

Kind of scary how companies can purchase personal information. And how do the credit agencies get this information? Your mortgage application.

Ways to Prevent It

There are some simple precautions people can take to help prevent identity theft. Often times, banking institutions use social security numbers as the default login. Change this immediately. Never use your social security as a login when you have the option to change it. Your social security number has the potential to be lifted from the cookie when you use it to login. Also, do NOT log into financial, or sensitive accounts from open WiFi spots (coffee shops, sandwich shops, etc…). It is possible for someone on the same open/unencrypted WiFi connection, to use specific software to see what you are typing/viewing on the internet. Only log into sensitive accounts (bank, email, work, etc…) from trusted and encrypted locations.

Credit agencies are now offering monitoring services that can help reduce or even prevent identity theft. These monitoring services will notify you anytime a credit line or account has been opened in your name. This way, if it is not an authorized account by you, you can deny it. This can greatly help cut down on identity theft. Also, view your credit report regularly. By doing so, you can see what accounts have been opened and if there is any suspicious activity in your name.

If you believe you have been a victim of identity theft, be sure to contact your bank, credit card company, and the credit reporting agencies to have any information removed from your report that is a result of identity theft. This will allow your credit score to remain intact and unpenalized.

1) Accounts that have been open less than three years. Having long term credit accounts that you consistently pay on time is an important indicator of stability. As your credit history ages, your score should increase.

2) Anytime your credit report is pulled. This is if you apply for a loan and the lender requests a copy of your report, or you order a copy of your credit report yourself directly from the credit bureau. This is when an inquiry is added to your report. Hard inquires are bad, soft inquiries are ok. Hard inquired are from creditors and lenders with whom you have applied for credit or a loan. A Soft Inquiry is when you request your own copy of your report or when an employer checks your credit history. Lenders and creditors do not see these inquiries. Inquiries remain on your report for up to 2 years.

3) An account that goes unpaid or becomes delinquent.

4) Bankruptcy.

5) Closing old accounts. Having old accounts open, even if they are not used regularly, is good for your credit score.

6) Constantly using too high of a percentage of your credit line. For example, it is good to stay under the 30% mark for the amount of credit your have used in your credit line.

The Fair Credit and Reporting Act (FCRA) requires each of the 3 credit reporting agencies to provide everyone ONE free credit report every 12 months. As stated by the Federal Trade Commission, the only website you can go to access this free credit report is at annualcreditreport.com. This is absolutely the only site that is part of this program. But there is one drawback, this site only provides you a credit report/history, and not your credit score. You have to pay extra for the score.

Don’t fret, there are some other ways to get to get a free credit report and score. Many of the websites that offer credit reports have 30 day free trials. For instance, about a year ago I used freecreditreport.com, part of Experian. I ordered my credit report and score, checked it online, took notes, then called in a canceled within 4 hours of ordering the service. I was never charged a thing. Also, at one point, and I believe they still are now, American Express was offering a 30 day free trial to its card holders to receive credit reports and scores. Just login into your americanexpress.com account, and under other services sign up for the credit report/score program. Assuming you cancel the program within 30 days you will not have to pay a dime, and you will get your credit report and score from all 3 bureaus.

Another way you can sometimes get a free credit score is from your bank. Many banks use their own version of your credit score, some call it a soft score, meaning it is their own proprietary formula/score. I do know Bank of America uses this and it is factored into credit card application and mortgages with them. If you are nice to one of the branch employees, they will often share with you your soft score. While this is not your actual credit score, it will give you a very good idea of what your score is.

Also, if you meet one of these requirements you are eligable for a free credit report.

1) Denied credit, insurance, or a job due to information on your credit report. A notice stating which credit bureau supplied the report should be included in your letter of denial. You then have 60 days to request a free copy of your report from them.
2) Unemployed. You are entitled to one free report a year if you are unemployed and anticipate looking for a job within 60 days.
3) On welfare
4) Believe you are a victim of identity theft. Maybe you recently found a suspicious transaction, or lost your wallet. Place a fraud alert on your file and then ask for a free copy of your credit report.

What this all means is that an individual’s credit report is completely separate and different from their spouse’s. A spouse’s credit score or history will not positively or negatively affect an individual’s credit score/history. But, a spouse will have an affect on their significant other’s credit score/history in regards to accounts they are listed as an authorized individual. This means that it is wise to monitor and regularly check the history, balance, and details of joint accounts. The last thing anyone wants is for their credit score to be lowered by their spouse, intentionally or unintentionally, through their joint accounts.

1) Pay down credit cards at least 60 days prior to mortgage application process
2) Stop using your credit cards 45-60 days prior to mortgage application process

And remember, when applying for any loan, it is fine to shop around, but keep it within a 30 day window so your credit score doesn’t getting “dinged” multiple times.