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Credit Reports
Types of Credit Reports:
-Single
-3-in-1
-Credit Monitoring System
-Free Credit Report
Credit
Report Basics:
-Ordering
a Report Yearly
-Common
Questions
-Determining
Scores
-Interpreting Reports
-Disputing
Errors
--more
basics
Credit Achieving Tips:
-Improving
Credit Scores
-Building Credit
-Re-building
Credit
Credit Scoring Blunders:
-Late
Payments
-Account
in Collections
-Court
Judgments
-Foreclosure
-Bankruptcy
-Too
Much Debt
--more
mistakes
Identity Theft:
-Identity Theft Basics
-Resolving
-Preventing
-Kids
& Identity Theft
-Seniors & Identity Theft
-Internet Phishing
Mortgages
Auto Loans
Personal Loans
Debt Consolidation
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
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YOUR CREDIT AND MORTGAGES
No matter if you are
buying a home for the first time, looking to
move into a new house,
refinance your mortgage or
take out an equity loan, your
credit rating is going to
impact the rate and terms of your mortgage, as well as
the amount you are approved.
If you are someone that pays your bills on time, and does
not have a lot of debt, you have a good credit rating and
will have no problem getting a low rate mortgage loan
that satisfies your financial needs. But, what if you
don't have good credit?
Believe it or not, getting approved for a mortgage with
bad credit is not difficult at all. In fact, Star Loans
Services has many
bad credit home loan products that will make your
dreams of home ownership a reality.
Your Credit Does Not Have to Be 'Perfect' to Be
Considered Good
If you have only a 1-3 blemishes on your credit report,
Star Loan Services will simply request a written
explanation as to why these negative marks have occurred.
If your explanation is logical, we will likely excuse
these isolated issues - particularly if these marks are
old and your credit has been strong since.
Star Loan Services is most interested in what kind of
credit practices have been exhibited over the last 1-2
years. Signs of good credit offer some flexibility for a
rare late payment. When judging an applicants credit
worth, we look at the following:
-- Revolving credit - This means
credit cards. You should
have no more than two late payments for at least 60 days
and no more than three payments 30 days late.
-- Installment credit - This means
car loans. You should have no more than one late
payments for at least 60 days and no more than two
payments 30 days late.
-- Rent or mortgage payments - No more than one late
payment.
Credit Scores Are Not the Only Thing Looked at
When Determining Your Credit Value
Determining your credit has become very sophisticated.
Other factors are being used other than your score. For
example, when determining what kind of risk applicants
are, some lenders will look at how many credit cards are
'maxed out' (indications of the inability to manage and
pay debt).
In addition,
having many inquiries on your credit report
is considered negative by some lenders. Too many
inquiries is an indication that you have applied for, and
been denied credit more than one time or that you have
too much credit.
Star Loan Services has a lending network that gives us
the flexibility to be more lenient in our credit
ratings. Therefore, having maxed out credit cards and
multiple credit inquiries is most likely not a major
issue when applying for any type of mortgage or loan
with us.
'Compensating Factors' Can Improve Your
Credit Rating
Below is a list of some compensating factors:
-- A hefty down payment.
-- An existing loan or mortgage requiring large payments will exhibit
your ability to cover larger than normal expenditures.
-- A positive credit history will outweigh a current low net worth.
-- A high net worth will outweigh a current low income.
-- The probability of a career improvement and/or salary increase as a
result of the furthering of your education and/or job
training. This scenario is good for young adults with a
high amount of
student loan debt.
Maximizing Your Borrowing Power
In order to optimize your borrowing power, you must not
only understand the 'compensating factors', you must know
what your current report will reflect. For example, you
may have a credit card account that you have not used in
several years. This account needs to be closed
immediately. Why? All open accounts on your credit report
will be interpreted as available credit. Having too much
available credit may label you as high risk.
Also, you want to make sure that your credit report is
reflecting accurate, current information. Misinformation
on your credit report-or, worse, the damage incurred as a
result of
identity theft can not only hurt the interest rate
you receive, your chances for approval become
jeopardized. If there is misinformation listed on your
report, you must
learn how to dispute and remove inaccuracies.
Getting a Copy of Your Credit Report Regularly Puts
You In Power
Any financially smart consumer will check their
credit report regularly.
Regularly means getting a copy of your credit report at
least once a year. You want to know what your
mortgage lender or any creditor is going to see when you
apply for your loan. You want to be able to
spot and
remove inaccuracies quickly. You also want to make sure
all of your accounts are listed and reporting up-to-date.
Star Loan Services offers several different options for
checking your credit. We suggest purchasing the
Credit Monitoring System. The Credit Monitoring
System makes it simple for you to keeps close tabs of the
information listed on your credit file. Not only will you
get one free month membership when you enroll, you will
get a free copy of your credit report. Learn more about
credit reports.
Additional articles related to credit reports:
Credit Score Basics
Understanding How Your Credit Score is Calculated
How to Improve Your Credit Score
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