Did you know…How a short sale affects your credit? Typically the short sale will show up on a credit report as “settled for less than the full balance”. This will have a negative impact on the borrower’s credit score, however it will be less hurtful than if it were to show as “foreclosure.” How much … Read more
Did you know…adding your child or spouse as an authorized user on a credit card can help them establish credit? It should only be used as a stepping stone to help them establish their own credit, and should not be a long term solution. Once the authorized accounts have helped them establish new credit and … Read more
Did you know…Paying off a collection account does not normally have a positive effect on a credit score? On the contrary, it can actually have a negative effect. The reason being is that the bureaus will not back date the payment date. So that means when a collection is shown as paid off, it will … Read more
Did you know…One of the biggest factors in determining a credit score is balances on revolving debt? Optimally the bureaus want to see no more than 3 revolving debts with balances and those balances being below 30% of the high credit. They also want to see several other open revolving accounts with no balances. Having … Read more
There are a lot of reasons to avoid credit repair companies. They usually don’t live up to your expectations, you end up with a lot of money out of pocket and typically, they end up doing more harm to your credit than good. A big downfall of these companies that most people don’t take into … Read more
We all know there are differences in credit scores because of different scoring models (i.e. FICO,Vantage or other proprietary credit scores). Credit scores will also vary depending on the permissiblepurpose behind your accessing a credit report. For example, when a consumer applies for a credit card,the credit score delivered is different than the credit score … Read more
What is it? The Financial Crimes Enforcement Network (FinCen), a Bureau of the Department of the Treasury, recently published final rules regarding the requirements for Residential Mortgage Lenders and Originators (RMLO) to establish a Customer Identification Program (CIP) anti money laundering program (AML) and file suspicious activity reports (SAR) under the Bank Secrecy Act (BSA). … Read more
You apply for a mortgage. The next day you receive a call from another mortgage lender and you wonder how they knew you were applying for a mortgage. When you apply for a loan, the mortgage lender will pull your credit report. This will trigger an inquiry on your personal credit file. One or more … Read more
Fannie Mae and Freddie Mac announced they are modifying their forbearance policy to include unemployed borrowers as of Feb. 1, 2012. Current statistics show that 10% of the current delinquencies on FNMA and FMAC loans are due to unemployment so this policy change could help thousands of borrowers who are currently unemployed and struggling to … Read more
Historically, adding a family member as an authorized user to an existing credit card with good credit history was a great way to help or improve the family member’s credit. This much utilized (sometimes over-utilized) practice can improve an authorized user’s credit, but it may not help the family member secure a mortgage loan. Some … Read more