Here’s a valuble TIP on your Credit Score…..

What Happens When You Close Credit Card Accounts?

Don’t Do It !! A quick way to guarantee that your credit score plummets faster than a sinking rock is to slice away your “available credit” by closing accounts.

If you’ve had a credit card for 6 years and you get a new credit card in the mail with a new credit limit and a lower interest rate…what do you do ? Whatever you do, if you do transfer a balance to the new lower interest card, DON’T Close the card you’ve had for 6 years….if you do you just lost 6 years worth of credit reporting and payment history. Leave it open with a small balance on it, or pay if off but for goodness sakes, don’t close it ..ok !

Only recently opened accounts should be considered for closing. Length of credit history is an important component of your credit score.

Ask me your questions and i’ll do my best to answer them for you..
www.myloanapproved.com

Negative Items on your Credit Report – Over 80% of Americans have at least one or two negative items on their credit report, and unfortunately, just a fraction of those people are even aware that credit repair is a legal option. By utilizing the rights provided by state and federal law, thousands of negative items have been from consumer’s credit reports..

FACT: Under the Fair Credit Reporting Act (FCRA), it is your legal right as a consumer to have your credit report improved.

FACT: Under the Fair Debt Collections Practices Act (FDCPA), it is your legal right to put an end to all of the harassing phone calls from creditors and collection agencies.

Creditors and credit reporting agencies have spent millions convincing Americans that credit repair is not possible. Don’t be a victim any longer.

Millions of Americans are under the impression that the credit reporting agencies are part of the government, when in fact the credit reporting agencies are not government related. Credit reporting agencies are privately owned companies that make their money by collecting information about you and selling it to others.

Fortunately, Congress has passed a collection of laws called the Fair Credit Reporting Act (FCRA), and the Fair and Accurate Credit Transactions Act (FACT Act) which regulates the actions of the credit reporting agencies. Before anything may be added onto your credit report, the credit reporting agencies must ensure that:

1) The information meets all legal reporting requirements,

2) The information was properly verified as accurate and complete, and

3) The information does not violate any FCRA or FACT Act laws,

www.myloanapproved.com
Let me know If I can HELP You in any way….

Let Us Help You With Your Credit Scores

We’ve all seen more than enough of those strange commercials on TV that tell you about getting your “FREE” CREDIT SCORES ..It gives this promise of a pitch about how your credit scores will improve if you get your “FREE” (key word) credit report from them.

The latest one shows this weird looking dog with a very poor credit score. Then he signs up …and Wow, all of a sudden the weird looking dog has a great credit score.

It’s says FREE,  but it really “ain’t” FREE. You have to sign up for a credit monitoring service to get your report.  OK, so how does that improve your credit score ? It doesn’t, and it doesn’t give you a clue about how to improve your credit score either. I think they’re a scam as well as a pain in the butt !

And woe be it to those who ask for loans with glaring blemishes on their credit reports!! Forget about it in today’s world.  An unpaid collection is apt to be regarded like a cockroach in your kitchen sink…yuk !!

These days, it’s much tougher to get a loan and wrecking your ability to get credit is about as easy as blowing over a house of credit cards. Learn how to manage your credit from the tips i give you in my posts….

Robbie at

www.myloanapproved.com

Follow these Five Important  Do’s and Don’ts of credit if you are planning to enter into a loan transaction in the next 6 months:

 DON’T APPLY FOR NEW CREDIT OF ANY KIND. This includes those “You have been pre-approved” credit card invitations that you receive in the mail. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.       

 DON’T PAY OFF COLLECTIONS OR CHARGE OFFS DURING THE LOAN PROCESS. Paying collections will decrease your credit score immediately due to the “date of last activity” becoming recent. If you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is yours, and 2) the creditor agrees to give you a letter of deletion.

 DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, it will appear to FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure that it is a more recent account.

DON’T MAX OUT OR OVER-CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is he fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.

DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on credit card interest rates, wait until after closing.

My website is:

 www.myloanapproved.com   

I’ll be glad to try and answer any question you may have  

Robbie