Helpful Tips to increase your Credit Score!?!

Pay off debt rather than moving it around. Since the ratio of your credit card balance to your credit limit is key, closing out an account and transferring the balance simply means you increase that ratio, which is likely to lower your score. In other words, say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50 percent of that limit.

Don't close unused credit card accounts near loan time. If you have several credit card accounts but are only using a few of them, you'll only raise your balance-to-limit ratio if you close the unused ones. You also shouldn't open new accounts when applying for a loan if possible. If you have a short credit history or very few accounts, opening a new credit line may lower your score since you don't have a proven track record, said Jan Davis, an executive vice president at TransUnion. What's more, a new account will lower the average age of your accounts, another factor in your FICO score.

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What elements are the most important factors of a credit history?

The list below details the approximate value of each aspect of your credit report that is used to generate a credit score. These percentages should only be used as a guide:

• 35% - your payment history
• 30% - total amount owed
• 15% - length of credit history
• 10% - types of credit used
• 10% - new credit

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DON’T BE TRICKED BY SCAMS THAT USE YOUR FINANCIAL INFORMATION TO COMMIT FRAUD, URGES IDENTITY THEFT ASSISTANCE CENTER

Tens of thousands of consumers fall victim each month to schemes like phishing

WASHINGTON, DC, October 16, 2007— The Identity Theft Assistance Center (ITAC) urges consumers to be careful when sharing personal information, and access to your financial accounts, that can be used to commit fraud and identity theft. “Fraudsters have plenty of tactics in their bag of tricks to make you believe they are acting in your best interests,” said ITAC Executive Director Anne Wallace. “Everyone should have a healthy dose of skepticism when it comes to responding to urgent requests for personal information or access to your financial accounts.”

Wallace urges consumers to be aware of several of the most common scams:

Phishing. Phishing attacks use 'spoofed' e-mails to lead consumers to counterfeit websites designed to trick them into divulging financial data—such as credit card numbers, account usernames, passwords and social security numbers. Criminals use the names and logos of financial services companies to create authentic looking emails. “If you have any doubt about an email’s authenticity, contact your financial services company,” says Wallace.

Pretexting. Pretexting is the practice of getting your personal information under false pretenses. Pretexters sell your information to people who may use it to get credit in your name, steal your assets, or to investigate or sue you. A pretexter may call you posing as a representative of a survey firm, bank, Internet service provider, and even government agency, to get you to reveal your SSN, mother’s maiden name, drivers license number, financial account numbers and other identifying information. “The companies you do business with already have this information,” says Wallace.

Fake Checks. These schemes often involve the promise of great riches—such as foreign business offers and lotteries and sweepstakes. But it also includes work-at-home offers, where they ask you to help process payments by depositing checks or money orders intended for their company into your bank account. You send them the money and you keep the extra as your "pay.” “There’s absolutely no reason someone would give you a check or money order and ask you to wire money in return,” says Wallace. For more information, see www.fakechecks.org.

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Did You Know?

Credit scores are based solely on credit history and don't include in the calculation factos like race, religion, national origin, gender, age, education level or marital status.

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The Key Factors that Determine Your Credit Score

1. Paying your Bills
   The most important factor is how you’ve paid your bills in the past, placing the most emphasis on recent activity. Paying all your bills on time is good, paying them late on a steady basis is bad. Having accounts that were sent to collections is worse. Declaring bankruptcy is worst.

2. Amount of money you owe and the amount of available credit
   The second most important area is your outstanding debt which means how much money you owe on credit cards, car loans, mortgages, home equity lines, etc. Also considered is the amount of credit you have available. If you hold possession of 15 credit cards that have a $10,000 credit limit, that’s $150,000 of available credit. People who have a lot of credit available tend to use it, which makes them a less attractive credit risk.

3. Length of credit risk
   The third of factor is the length of your credit history. The longer you’ve had credit, the more points you get.

4. Mix of credit
   The best scores will have a mix of both revolving credit, such as credit cards, and installment credits such as mortgages and car loans.

5. New credit applications
   The final category is your interest in new credit, how many credit applications you’re filling out. The model compensates for people who are rate shopping for the best mortgage or car loan rates. The only time shopping hurts your score, is when you have previous recent credit stumbles, such as late payments or bills sent to collections

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Credit Related Facts and Figures

• 79% of all credit reports contain mistakes
• 54% of all credit reports contain personal information that is long outdated, belongs to a stranger, or is otherwise incorrect
• 30% of all credit reports contain accounts that are closed by the consumer but continue to be reported as open
• 25% of all credit reports contain errors serious enough to result in the outright denial of credit

Source: Crednology, Inc - The necessity for fair and accurate credit reporting from the three major credit reporting agencies: Equifax, Transunion, and Experian.- 24/7 Online Access http://www.crednology.com

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Three Easy Steps To A Happy Credit Report

Maintaining a Healthy Status

During the moving process it’s very convenient to use credit for everything from your home loan to your furniture financing to those fluffy new towels. While you’re busy filling out application after application, inquiries are being added to your credit history! Too many inquiries can lower your credit score and prevent you from obtaining future credit at the best rates possible. By following these three simple steps, both you and your credit report can emerge from the moving process in a healthy state: Watch out for department store credit card offers Department stores love to promote their store cards. Oftentimes, a discount is offered if you apply for a card at the time of purchase. Don’t forget--when you apply for their card an inquiry will be placed on your credit report. And, if you qualify for the card you will have another revolving account on your credit report. For some, another revolving account won’t hurt their credit, and might even help it. But if you have too many revolving accounts another card could negatively impact your credit standing. Beware of "piggy-back" offers Retail stores have been known to place “piggy-back” offers on their credit applications. These are typically an offer for another credit card, in addition to the regular store card. To tempt you to apply for the additional card the store will usually have a special promotion, such as a store gift certificate. A Lesson from Robert Robert, a 25-year old software engineer, applied for an electronics department store card while he was purchasing a stereo for his new apartment. There was an offer on the application to receive a $25 store gift certificate if he also applied for a bank credit card. “All I had to do was sign another line on the form and I applied for the card and got the gift certificate,” said Robert, “but I didn’t think about what another credit card would do to my credit.” Remember that if you’re approved for both cards, two new accounts will be added to your credit report. Take care when shopping around for mortgage rates While it’s a good idea to shop around for the best mortgage rate you can find, keep in mind that lenders will check your credit before they can decide on your loan terms. This credit check will place an inquiry on your credit report. Many scoring models combine all mortgage lender inquiries within a 30-day period into one inquiry. So, try to limit your shopping time to 30 days. Moving to a new home is an exciting event, and your credit plays a major role in the moving process. With a little care and preparation you can ensure that your move is a credit-healthy experience.

Article source - http://byownermls.moving.com/Mortgage_and_Finance/MAI_Article/Happy_Credit/

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